Board Meeting Minutes – January 12, 2011
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
January 12, 2011
Board present:
Michelle Lemanski
Russell Sheaffer
Marcus Gernes
Rachael Harvey
Chris Ridgway
Steve Paquette
Morgan Fudge
Ron Hopfensperger
Absent:
Matthew Kasinkas
1. Meeting called to order by Commodore Michelle Lemanski at 6:40 p.m.
2. Bill Kranz attended meeting and gave an update on the Group 41 and Mike Scanlon lawsuits.
Group 41
Bill gave background information on the legal issues presented since Group 41 purchased the restaurant next to BMA. Group 41 has requested an amendment to the Conditional Use Permit issued for the property. Copy of proposal was distributed to board members. The public hearing with the City of Bayport is scheduled for January 18. Bill has a call into the city attorney to make sure everything is on track. Michelle, Joel and Bill will attend the Public Hearing held on Tuesday.
The question was asked what are the specific issues Group 41 has with BMA. Bill stated he felt the main issues were 1) the dock slips that were moved from A dock (A1 & A2) and from B dock (B1, B2, B3, B4) to D dock, 2) the utilities that run across their property, 3) the sign, and 4) the cross easement. He further stated the biggest sticking point is with regards to catering/serving food and alcohol on the Marina premise. Group 41 wants to be the “exclusive caterer” to the Marina.
Bill stated he is proceeding with the case as “all or none” negotiations rather than one issue at a time. He has not heard back from Group 41’s attorney regarding finalizing the case. He will petition the court to get on the court’s calendar. Group 41 has indicated they will subpoena three people in their case – Gregg, Kirby and Marsh. Bill has been in communication with Marsh and Marsh has indicated he would agree to testify on behalf of the Marina. The question was asked if it is possible to get resolution by the June Annual Meeting and Bill stated it will depend on the court schedule.
Scanlon
Bill is filing a Summary Judgment to the court. The original agreement made between BMA and the restaurant regarding easements, etc, pertains to “owners”. Since Mr. Scanlon is not an owner, he is not a party to the cross easement agreement, and therefore he has no basis for his claim.
3. December 2010 Meeting Minutes – motion by Russell, seconded by Morgan to accept the Minutes as written. Unanimous approval.
4. Michelle spoke with Mike Mullen regarding the filing of 2009 taxes. Mike stated it is favorable the IRS has not responded and feels everything will be fine for future tax filings. He is sending a Letter of Engagement to BMA for the filing of quarterlies, 2010 tax return, and the annual audit.
5. Michelle is still working on having BMA be a part of the Antique Boat Show.
6. Michelle will talk to Sherm regarding the work that needs to be done on the pool to make it compliant as well as the necessary repairs.
7. Michelle informed the Board that Kathy had negotiated a new Workers Compensation policy at a $10,000 savings. The new policy also allows payment over 9 installments.
8. Concerns were addressed regarding Gregg’s extended absence. Gregg had his last chemo treatment on Monday, Jan 10. Michelle informed there has been little communication from Gregg to know how he’s doing and when he will return. Russell recommended a plan needs to be in place to start the recruitment process. He further stated this is not because of Gregg’s health, but rather it is due to Gregg’s commitment to stay on until March 2012 at which time he would retire. Because the recruitment process and transition to a new General Manager will take several months, it is crucial to put things in motion. Rachael recommended to: 1) begin recruitment and 2) address immediate tasks and determine how to handle. For the short-term, it was suggested Michelle contact Marianne to see if she would be willing to help and be “on-call” in Gregg’s absence. Michelle will meet with Mike and Kathy to discuss a short-term plan. For the long-term, consensus was to initiate the search.
Rachael requested Kathy email the General Manager Job Description that was drafted February 2010 to all Board members for review and editing. Board Members are to forward their revised copy to Michelle by Jan 21. Recommendation by Morgan to seek local talent by putting the job posting on Career Builder and Monster rather than exclusively going through a headhunter.
9. Budget 2011
Draft #4 of the 2011 budget was distributed to board members. Morgan advised to remove depreciation from the Budget to balance. Board members were instructed to review the budget and forward other changes to Kathy by the end of the month. Recommendation to increase legal fees for 2011. The Board was also directed to review the capital improvements list compiled by Kathy and Mike.
10. Rachael discussed her conversation with First Bank of Bayport regarding a Line of Credit. She will request the bank rep attend the next board meeting with their proposal for a $100k LOC that has been approved “with no strings attached”. The purpose of the LOC is to make it an “insurance policy” so if we overspend for an unexpected expense, we don’t have to tap into investments i.e. short-term cash flow.
11. Financials – Board to review November financials and contact Michelle or the finance committee with any questions. Kathy will complete the December financials as soon as the statements are received from U.S. Bank.
12. Capital Improvements – Michelle stated that nothing can be done until lawsuits are settled.
13. Kathy to call We Dig regarding any plans Gregg may have made for 2011 i.e. landscaping, replacing bushes and plants, etc. She will inform Rachael and Morgan of any proposals.
14. Minneapolis Boat Show – Kathy discussed her plan for the booth at the show. She created a drawing for free apparel and stay at the transient slip. The drawing information will be used to create a customer database that will be used for future marketing of BMA. She also created a “coupon” card that allows a boater to receive one night free at the transient slip with the purchase of one night. These cards will be distributed at the boat show. Chris also recommended getting the mailing list from Dominic (Boat Doctor) for mailing cards. Marty Wirz, who was attendance at the Board Meeting, recommended sending the info for the transient slips as well as some coupon cards to the Power Squadron. Kathy will also put together a list of the slips that are available for rent with the specifics on size, costs, amp, etc.
Morgan recommended we change our ad in the Scuttlebutt magazine to promote the transient slips. It was also noted we need to remove “restaurant/lounge” from the ad.
15. Bonus/Pay Structure – Russell proposed a variable compensation program for all employees. He presented a structured plan to base bonus compensation for the service department on: 70% service revenue and 30% customer satisfaction (results of Survey Monkey). The purpose of the plan is to generate more internal revenue (service to members) to maintain exempt status. Also, it encourages the service department to initiate routine boat repair. Russell will email the plan to Board Members for review. Before the boating season starts, he will discuss the plan with the service department and how they will be measured for future bonuses.
16. Morgan and the Finance Committee to evaluate: 2010 Revenues, Cost of Goods Sold, Salaries, Building Expenses, etc. and will report back to the Board.
17. By-Laws – Russell and Michelle are still working on the updates. They will report more information at the next meeting.
18. Motion by Rachael, seconded by Steve to adjourn. Motion carried. Adjournment 9:06 p.m.
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