Board Meeting Minutes – August 14, 2013
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
August 14, 2013
Board present:
Brad Baune
Morgan Fudge
Val Fuller
Michelle Lemanski
Jim Mondry
Steve Paquette
Eric Pederson
Amy Tolbert
Absent:
Sandor Csallany
Motion by Steve to call meeting to order. Meeting called to order at 6:30 pm by Commodore Morgan Fudge.
Board Meeting Minutes
Morgan inquired if Amy had connected with Mike Ryan regarding the original By Laws documents. Amy stated she had and Mike referred her to another member who has boxes of original documents. She will connect with that member and report back at the next meeting. Motion by Amy to approve the Minutes, seconded by Val. Unanimous approval of Minutes.
Financials – Steve presented an overview of YTD financials – refer to handout. Steve stated although the month ended in a $39k loss, the YTD is right on target with the Budget. Steve inquired about the negative Gas inventory account. Kathy explained there is a coding issue from BiT to Quickbooks. The actual gas inventory is zero and the $34k is Accrued Expense i.e. fuel sold but not yet paid for.
General Manager’s Report
Cliff informed the focus of the office the last two weeks was in preparation for the Antique Boat Show and thus, time did not allow for other projects.
Floats
All the floats received have been installed and 90% of B Dock has been completed. Michelle informed while they were on the transient dock last weekend, she noted the dock was sagging considerably. Cliff informed there are also issues on C Dock – outward end is getting really low. Morgan recommended given the cost of new floats is relatively minimal, additional floats be ordered. Cliff responded if ordered now, they would not be received until haul-out season and the crew would not have time to install. Board consensus was to finish replacing the floats on B Dock, then work on D Dock followed by C Dock.
Storm Damage
Cliff reported our insurance coverage has a $25k deductible for storm damage. The total of damages from the June 27 storm was $13k. Cliff asked if this should be the slip owners’ responsibility or if the Marina should pay. Morgan felt it was not fair for the entire membership to pay for the 3 covers. He further stated what was decided would set a precedent for future damages. It was the consensus of the Board to go ahead and pay. Morgan advised Cliff to re-evaluate when covers go on next spring due to the potential damage that could have occurred with the late snowfall this year after the covers had been rolled down.
Michelle inquired what the premium would be if the deductible was lowered. Brad advised Cliff to check with agent to see what a $10k deductible would be and report back at the next Board Meeting.
Operations Update
Mike reported the service department was doing well. The late launch season allowed for more service work to be done. July was busy but August has been better with more profitable work i.e. engines, transmissions, and props. Mike stated he is gathering as much work as he can now before boaters go into the “end-of-season” mode. He stated once this happens, boaters do not request work done and work orders dwindle. Morgan inquired what the current service backlog was and Mike informed it was between $25k-$30k. Refinishing jobs are out 3 weeks and mechanical jobs at 2 weeks. Val inquired what type of work he was seeking i.e. small jobs. Mike informed he does not look for the small fishing boat work as they are not profitable. He stated there is too much competition for those jobs who can do the work for a lot less than BMA. He further stated the mid-size and trailerable jobs are desirable and is working with Cliff on doing more local advertising for these jobs. Morgan stated last year at haul-out the service backlog was at $80k and inquired if the strategy this year would be to audit boats as they came out of the water. Mike stated last year Jason audited every boat as it was pulled and wrote up many estimates including a lot of bottom work. Discussion centered around Jason’s ability to produce more revenue. Brad inquired if more work could be completed if Jason had an apprentice. Mike stated it would help tremendously if Jason had someone who could do the masking, bottom paint jobs, and cleanup as well as train with Jason. Mike praised the quality of work Jason was doing but that he was only one person. He stated 30% of Jason’s time is spent in prep/cleanup. Mike informed he and Jason work on estimating together. It has been his experience large paint jobs are not as profitable as the smaller jobs.
Mike reported shop space is another obstacle for completing more jobs. There is not enough space to generate additional revenue because of the capacity of the current building. When Jason is using epoxy, the rest of the crew must leave the building due to the fumes. Brad inquired if there was facility space in or near Bayport for mechanical work when painting is being done. No alterative spaces were mentioned. The question was asked if there were any discounts offered to acquire more work. Mike informed discounts for winterization and winter jobs have already been offered. Amy offered to setup a brainstorming session in mid-September with other marina members who have experience in marketing to tap into other areas.
The question was asked if there were any issues with communication between Mike, his service crew, and customers. Mike stated communication is good. He admitted he does not have the time to monitor or assist the crew when they ask him for help to look at a job. He stated he spends at least 40% of his time on the phone with parts. Michelle stated BMA is losing valuable talent with Mike spending his time on parts instead of working with Marine Max for jobs or other revenue-generating areas. Amy suggested getting together with Mike to ask the questions and to find where there are redundancies and inefficiencies and how to balance all his job tasks. From this meeting, a job description and requirements of a parts person will be created. Mike stated he wants a person with technology skills.
E Commerce
Tim from Webaloo came and met with Cliff, Tavia and Kathy. They had a conference call with Red of Land N Sea regarding establishing a store. Red is sending a module of 3200 parts to test while creating a store. Amy advised before setting up it needs to be clear what the vision is. Cliff stated a new profit center for BMA as well as a convenience for its members was the driving force for creating an on-line store. Morgan stated he viewed it as something that would grow nationally not just locally. Amy stated it would be advisable to look closer at “niche items” when establishing.
Committee Updates
Morgan commended Val, Michelle and Lorrie on the super job they did on the Antique Boat Show and Party. Eric also praised their work stating the crowd flow was controlled and the vendors kept the people at the venue. Val reported the Silent Auction raised $1545 for Dane’s Place. The evening party attendance was 175 but could have easily been 200 i.e. had to turn people away. She received positive feedback on Mallards. Michelle informed the Sea Scouts made over $700. Val questioned Michelle if she felt the Boat Show should be an annual event or an every other year. Michelle stated she felt it should be an every year event. She recommended building on the land antique boats. Consensus of the Board was to host the Boat Show annually and to hold the same weekend next year. Michelle and Val will begin the planning process for next year’s Show.
Past Commodore Reception
Morgan reported there are 14 past commodores attending the meeting. He stated the informal event will be a good opportunity to present all the work the Board has done since the April 17 presentation and how they have used the input given at the meeting for developing the current plan. Morgan will work on the Power Point Presentation and will have the slides ready by Friday for the rest of the Board to review. There are 4-5 components of the project:
1) Decking
2) Electrical
3) Water
4) Asphalt
5) Covers
Eric recommended providing only the highlights and having backup data should questions be asked. Jim stated there should be an emphasis on the product quality and warranty. The plan to be presented includes the following financial pieces:
· Two years of Special Assessment at an average of $1000/slip
· Marina operating profit contribution of $25k/yr
· $1.4mil financing at 4.5% interest for 15 years
· Selling of 6 slips to increase the number of shareholders to 125. Slips will be sold in increments of 2 per year (or as designated by the Board) to avoid flooding the market.
· Increase dues over 8 years to a maximum of $70/slip ft
Morgan stated it will be made clear to the meeting attendees the plan is not rigid and will allow flexibility to make adjustments and to pay down more if marina profits allow. Steve stated it also needs to be stated to Members this plan will generate a “pot” for future capital improvements. Brad mentioned multi-slip owners need to realize their ROI will go down with the sale of the slips. Morgan reiterated the current plan is the best plan and numbers for the project may decrease with more tweaking i.e. BMA labor, salvage of copper, etc.
Brad and Morgan will get together on Tuesday to go through a dry run of the presentation.
Electrical Bids
Morgan informed the Board about concerns Amy had with not getting additional electrical bids from other contractors. Because she was new to the Board, she did not know that other bids were obtained from Collins, Medina and Weber. She is now comfortable the Board has done its due diligence in obtaining other bids. Morgan stated since the electrical is the largest component of the project, it has to be right. Eric expressed his concerns of why G cable and the absence of conduit. He inquired if this was the best product or if it was simply what Terry from Freeway Electric wanted to use. Val recommended contacting JJRSmith Group for their input and guidance if G cable is the best product. Eric mentioned contacting the state electrical inspector for what he/she thinks. Cliff will contact the company in Milwaukee JJRSmith Group uses and report back. Val stated she will be in Chicago the first week in September and can view the 31st Street Marina. She stated if the Board compiled questions she will solicit answers from the 31st Street Marina staff. Morgan has conviction Terry is the right person for the project. Brad concurred Terry “oozes with integrity”. Amy is also comfortable with Terry.
New Business
No new business presented.
Closed Session
Due to Board Members’ time constraints, the Closed Session was postponed until next meeting.
Motion by Steve to adjourn, seconded by Jim. Meeting adjourned at 8:45pm.
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