Board Meeting Minutes – January 16, 2013
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
January 16, 2013
Board present:
Morgan Fudge
Val Fuller
Marcus Gernes
Michelle Lemanski
Jim Mondry
Chris Ridgway
Absent:
Brad Baune
Sandor Csallany
Steve Paquette
Meeting called to order at 6:30 pm by Commodore Marcus Gernes.
1. Meeting Minutes –December 19, 2012
Michelle presented a question regarding the Board vote on By-Law changes. It was in her opinion, a BMA member should have one vote no matter the number of slips he/she owned. After further discussion, the consensus was to keep the amended By-Law limiting one entity from owning no more than 7 slips and he/she would retain one vote per slip. Motion by Morgan to approve the Minutes, seconded by Chris. Unanimous approval.
2. Financials
Kathy presented the financial summaries compiled by Treasurer Steve Paquette in his absence. Comparing yearend 2012 with 2011, the net worth of BMA is $21k higher than in 2011. Bottom line – Income $117k over budget, expenses $83k over budget. However, if depreciation was factored into the calculation, we would be $12k under budget. Net Income at December 31, 2012 ended with a positive $38k (excluding depreciation – $133k net profit). Marcus commended Steve on his financial analysis and summary. He recommended this type of summation be presented to the Board at each meeting into the future by all future treasurers.
3. General Manager’s Report
· Cliff stated the phones are starting to ring again with inquiries on slip rentals for the coming season. Kathy has sent all contracts for the new year. She has also updated the Employee Handbook.
· Plan is to promote the Marina’s 25th Anniversary at the Boat Show. Kathy has created flyers to handout that featuring the 2013 Calendar of Events and includes an ad for special pricing on transients slips – $25/night (limited to 5 nights/mo). Suggestion was made to acquire advertising from local vendors i.e. Boat Doctor, MariCanvas and local restaurants for the back of the flyer. These fees would help offset the cost of printing the flyers.
· Cliff stated there are speculations and concerns by the area marinas of what the next year will bring as Molly Shodeen, DNR Warden retires.
· The Service Dept continues to be busy with winter work. Its estimated there is still $69k of work left to do i.e. props, drives, etc. Recommendation by Marcus to offer winter work financing as an incentive to generate more work next year. Consensus was to have Mike offer to individual boaters rather than to advertise the financing option. Cliff informed Steve and Sherm have been working full-time outside this winter.
4. Committee Update
Social Committee – Val is meeting with Lorrie to go over the plans for the Commodore Ice Breaker. Ideas she presented were: swing band, casino night and limo rides to the “Red Carpet” entrance. Morgan suggested she contact Brad Smith of Woody’s for the limo service. Michelle suggested contracting with a company that provides casino entertainment as a fundraiser for a local non-profit. Val has been in touch with Mendakota and Festivities to bid the catering. After discussion of the logistics of the event being held at Berenberg Point, the decision was made to move the venue to A Dock Point. To avoid curfew conflicts with the local residents, they will be sent invitations to attend the party.
5. Mediation Settlement
Marcus reiterated the lawsuit with Group 41 had been settled. He informed the Board he had a request from member Jim Stein who wanted to know what the total legal expenses were for the lawsuit. Legal fees were tallied from the onset of the lawsuit in 2007 through the mediation settlement and the total was $150k. This does not include the $50k settlement to Group 41. Both Marcus and Morgan concurred it was better the case was settled and the Marina is able to move forward. Marcus further stated at the end of the day, BMA won because the slip occupancy went in favor of BMA. Per Bill Kranz, there hasn’t been any communication on when the settlement payment needs to be paid. Marcus thanked all the Board Members who attended the mediation as it was a testimony to the Judge their commitment to the organization.
6. PTO Update
As a follow-up to the discussion from the previous Board Meeting, the Executive Committee reviewed the employees benefit policy. Marcus stated he also reviewed the usage of sick leave and was pleased employees were not misusing the benefit. To develop a policy comparable to what other companies offer, Marcus consulted with other business owners. The decision was made to combine 3 sick days (old benefit was 5 days) and 2 personal holidays with vacation time and classify all as Paid Time Off (PTO). The Employee Handbook was revised to reflect this change and distributed to employees. Marcus asked Cliff if there was any pushback from employees regarding change and he replied there was none.
7. Marina Slip Purchase
Marcus provided an overview of the slip purchase discussion at the last Board Meeting. During the meeting, Brad reviewed the current investment accounts of the Marina vs. the return of an investment on a sublet slip. The consensus of the Board was to pursue the purchase of 2 or 3 slips and use cash flow from the rentals for the dock revitalization project. The Board set a purchase price of $2200 to $2400/ft for covered slips. Cliff stated he contacted all the owners who have slips listed for sale and did not find anyone willing to sell at this rate. He further stated the owner of Slip B13 would sell for $140k and C21 would sell for $90,200. Motion made by Morgan as part of BMA’s investment strategy, give the General Manager the authority to purchase up to three slips in 2013 provided there is Executive Committee approval. Seconded by Val. Unanimous approval. Cliff will contact the owners of B13 and C21 to finalize the purchases. Recommendation made by Morgan to consult with Mullen CPA for the appropriate method of recording and tracking the rent i.e. investment return.
8. Gas Dock Update
Cliff stated when Sherm started to remove decking and lines at the Gas Dock, it was discovered the water lines were not in good condition. Thus, the decision was made to replace all the water lines. There have also been some other unforeseen problems i.e. steel was bent due to the boats running into the docks. Sherm and Steve are in the process of welding new angle iron where needed.
Freeway Electric presented a bid of $3480 to bring the electrical up to code. Cliff estimates the total for the Gas Dock project will run $70k-$80k excluding miscellaneous items needed i.e. reels, hoses, etc. JJRSmith’s estimate for the Gas Dock was $249k. Morgan inquired if the update included a 50 amp service or two 30 amp services. Cliff stated there isn’t enough power there currently to accommodate. Morgan recommended fitting for the service even if a pedestal is not installed now. Morgan asked what was being used for lighting. Cliff explained they are taking down box lights, sandblasting, painting, and converting to LED lights.
9. Short-Term/Long-Term Financing Update
Executive Committee met with First State Bank of Bayport. They welcome Bayport Marina’s business and offered to do a construction loan for the dock project which could later be converted into a long-term note. Morgan added an additional $250k should be built into the financing plan to resurface all the marina pavement when the dock project is completed. Preliminary figures estimate the entire dock revitalization project to be at $2 million. First State currently offers a 15 year note at 4%. Marcus stated he is very comfortable with forming a relationship with First State. He further stated it will be easy to structure financing because of the Bank’s flexibility. Andy of First State inquired as to the status of the restaurant. He touched on if the possibility to purchase the restaurant came to be, the Bank would be receptive to financing with very favorable terms with 20% down.
10. DRP Update
Currently Cliff is waiting on all bids to come back. Once received, the Executive Committee will have discussions on the best way to pay for the project. The process will be to do one dock per year unless there is good value in doing in a shorter period of time i.e. if subs bids come back with a cost savings to do more than one dock/year. Weber estimate came back and Collins is fine-tuning their bid.
11. Other
Marcus addressed the Board with a request made by a new business wanting to operate within the Marina. The business, Set Sail Services, would provide provisions to boats i.e. ice, beer, snacks as well as services of canvas rolldowns, water top-off, pumpout, etc. Marcus expressed concern this business may be in competition with the Marina’s Gas Dock services. Cliff informed the policy regarding sub-contractors and the liability insurance necessary to work on BMA boats including Worker’s Compensation Insurance. Chris stated he felt this was a valuable service and did not conflict with what the Gas Dock provides. He further stated he supports entrepreneurship. Morgan also agreed the service would be appreciated by BMA boaters and should be allowed if the business follows the same rules as the rest of the contractors. Marcus instructed Cliff to respond to the parties and give them the insurance requirements. The consensus of the Board was BMA would not support advertising for Set Sail Services or any other subcontractor.
Cliff informed the Board of an idea Kathy and he had about having a snack/Tiki Hut over by the pool providing hot dogs, soda, ice cream, etc. Kathy contacted the City of Bayport to inquire about any necessary permits. Sara from the City informed the DNR will not allow a permanent structure there. Because of this information, Cliff was researching for a mobile cart. Chris informed his brother was converting his old RV into a food truck and was interested in providing the mobile food service to the Marina. Cliff will follow-up.
Val inquired if the Marina had a defibrillator onsite. Both Cliff and Kathy stated they did not think there was one. Val stated she received a request from a boater who recently had heart surgery that the Marina have one on the premise. Cliff will research and bring findings to next meeting.
Motion to adjourn meeting by Chris, seconded by Val. Unanimous approval. Meeting adjourned at 8:45pm.
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