Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
April 17, 2019
Board Present: Absent:
Tore Detlie Matthew Kasinkas
Rachael Harvey
Dave Peterka
Ed Manor
Eric Pederson
Russell Sheaffer
Amy Tolbert
Bob Reilly
Meeting called to order at 6:31 PM by Commodore Amy Tolbert. Confirmed a quorum was in attendance for approval of business items.
- Business Meeting
- Approval of Meeting Minutes
A motion was made by Rachael Harvey to approve the March 20, 2019 Meeting Minutes; it was seconded by Tore Detlie. There was unanimous approval.
- Financials
Dave Peterka stated the first quarter of the year has been favorable in terms of budget versus actual. This is largely due to the quantity of service/canvas work being completed and billed, which in turn constitutes almost half of the overage in the overall budget. The Marina continues to be under on slip rental, but that remains a function of timing more than anything. As of March 31, the Marina is roughly $79,000.00 over on revenue income streams.
On the expense side, Payroll and Payroll Taxes continue to be under budget by more than $40,000.00. Kori further explained she straight-lined everyone’s payroll equally across the entire year and both she and Dave foresee this to improve as we move into the busy season. Service Parts and Accessories and Sublet Repairs being over on expense are consistent with the income streams seen in Service and Sublet Labor being over on income. There was a suggestion made by the Board to determine a steady mark-up percentage to better track the Marina’s sublet labor and repairs; Kori will provide a recommendation during the May meeting. Capital Improvements and Repairs and Maintenance are under budget due to experiencing similar expenses in the months of January – March as we typically do in June – August.
The Marina’s Net Ordinary Income is over budget by almost $88,000.00.
There are three customer accounts over 90 days past-due on the Accounts Receivable list resulting in the delay of launching these individuals’ boats until balances are paid in full.
- Marina Operations
Flood preparation took priority in the month of March and beginning of April. Our main concerns included building a barricade in front of the well to prevent water from entering the shop along with preventing drainage grates from overflowing. We utilized a sump-pump to redirect water that made its way through the seams where the concrete and asphalt meet. We have since relocated sandbags and jersey barriers to allow room for launching boats but are keeping everything onsite if additional flooding occurs in the near future.
Fortunately, the Marina only incurred one true damage to a ramp on A-Dock due to flooding – this has been fixed. However, an unfortunate incident post-flooding affected a large dock we store over the winter. Winds from the April snow storm flipped the 75’ walkway while still in our harbor. The contract with the owner of the dock states BMA is not liable for any damages that occur on our premises, yet the insurance company would like to hire BMA to flip the dock upright with manpower before moving forward with alternatives. Prior to the meeting, Kori had accepted the insurance company’s proposition due to the time sensitivity of removing the dock to begin launching boats, but upon introducing the plan to the Board, all Directors were in favor of declining the insurance company’s proposal due to the risk involved. Kori will be speaking with the insurance company to arrange a crane.
Additional accomplishments include completing Fuel Dock training with new and returning staff, entering the near-completion stages of the interior Fuel Dock modifications, the Mobile Pump-out unit will be arriving by April 19, and the remaining sailboat slips have been rented and three slip sales have taken place since the last meeting.
Service and Canvas work from November 1 to present has increased since the last meeting from $279,025.52 to $377,408.37. Kori reintroduce the idea of the Marina’s fiscal year running from November 1 to October 31, due to the nature of the Association’s billing timeframes. The Board had a positive reaction to this proposal so Kori will be reaching out to Mullen’s CPA to discuss actions needed to move forward.
Work-in-progress items include finalizing winter work before launch begins, Kori will be discussing pricing for new uniforms with Cintas this week and the conversations continue with MN DOT on the Highway 95 Project along with completing the asphalt project with Bituminous Roadways by finishing the area near the railroad tracks.
The Marina is due to have the pool resurfaced this summer. Since we are experiencing another late spring, the contractor has proposed a start date of the middle of June. Due to the risk of the pool being closed through the Fourth of July, it was suggested we aim for the Fall or sometime in August if possible. Kori will speak with the pool company to determine the possibility of this timeframe instead.
- Old Business
- Outside Contractors
The purpose of discussing potential changes to the regulations of outside contractors performing work on Marina grounds is to ensure the highest level of safety at BMA, guaranteeing enjoyment for Members, protecting revenue sources of BMA and creating a more reasonable and easily manageable tracking system for office staff.
The previous recommendation to improve the process was to require all outside vendors generating more than $5,000.00 in revenue to pay a $500.00 annual vendor fee, subcontract through the Marina or pay a commission. Although the Board did not come to a decision during the meeting, it was agreed by all that this dollar amount does not coincide with the intentions behind changing the regulations. Instead, there were suggestions to implement a Code of Conduct outlining what is expected of outside contractors along with collecting a $50.00 processing fee to compensate the time office staff puts into communicating the requirements of outside vendors, requesting and collecting insurances and managing all other necessary functions.
Motion made by Racheal Harvey to adjourn the meeting, seconded by Russell Sheaffer; meeting adjourned at 8:51 PM.
