Board Meeting Minutes – January 18, 2012
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
January 18, 2012
Board present:
Morgan Fudge
Val Fuller
Marcus Gernes
Matthew Kasinkas
Michelle Lemanski
Jim Mondry
Steve Paquette
Chris Ridgway
Russell Sheaffer
Meeting called to order at 6:35 pm by Commodore Russell Sheaffer.
1. Meeting Minutes – November 16, 2011 and December 7, 2011
Russell requested the December Meeting Minutes include the decision made by the Grounds and Building Committee to limit the clubhouse rental to Members only. Exceptions will be made on a case-by-case basis for weekday meetings of local businesses (Andersen Windows) and non-profit organizations (Stillwater Chamber and Power Squadron). Motion by Russell to approve the November Minutes and the December Minutes with the above addition. Seconded by Steve. Unanimous approval.
2. Summary Judgment
Russell stated the Summary Judgment Hearing held on December 23 was a bit of a disappointment. Expectation was that the case would be decided at the time of the hearing. Russell informed the Judge listened to both Group 41’s attorney and BMA’s attorney, John Eckman for 30-45 minutes each. After which the Judge explained he would issue his decision within the 90 days allowed by the judicial process. It was the opinion of Eckman – based on the body language and questions asked by the Judge – BMA will prevail. Eckman stated he felt the Judge would give Group 41 the signage rights. Russell stated he spoke with Bill Kranz prior to the Board Meeting and was informed there has been no word since the December 23 hearing. It is the hope to have the lawsuit behind us by launch.
3. Software Update
Russell thanked all Board Members for their response to the email vote on approving the purchase of BiT Software. There was unanimous approval and Cliff has signed a contract with BiT for installation.
4. General Manager Report
Boat Show – Everything is setup for the Minneapolis Boat Show. Brochures and a handout showing the Calendar of Events along with a coupon will be distributed at the Show. The coupon is for a Free Night at the transient dock with the purchase of one night at regular price. The goal is to promote an interest in slip rental at Bayport Marina.
BiT Software – preparations are being made for the installation. Mike is compiling lists on Excel to import into the new software. Tom (our IT consultant) came and inspected our server and computers. It was determined more memory would have to be added to all PCs and a switch added to the server.
Slips for Lease – In March of last year, 17 slips were open. At this time (January), there are 21 BMA slips for lease. The question was asked of Cliff what his Strategic Plan was to get slips rented. He said his plan was to meet and greet at the Boat Show and ask if sail boater or power boater. Cliff further stated to comply with our site plan agreement with the DNR, we need to get more sail boaters in the Marina. Marcus questioned Cliff if he was open to discount slips in order to rent. Cliff replied he would.
Pumpout Station – Permit to install new pumpout station was sent to the State along with all the other required documents and information. Currently waiting to hear back. Lead time for a pump is 2-1/2 months. Downtime for installation is approximately 2 days.
Credit Card Info – recommendation by Board to have Kathy inform Members NOT to respond via email or fax with their credit card information. Members should call or come in person with credit card info to be kept on file.
Long Range Planning – Russell requested Kathy resend the Long Range Planning spreadsheet to the Board. He further requested Board Members review and make additions and recommendations and forward to Kathy.
Winter Staffing/Winter Work – Cliff stated the Service Dept has kept busy with projects – several paint jobs and bottom work.
Grounds – Sherm is busy repairing docks and installing hang-me-outs. He is also repairing the tiles and sealer in the bathroom showers that have been leaking.
New Business – BiT Software is scheduled to be installed February 28. When Tom (IT Consultant) assessed our hardware needs, he recommended a new server be purchased next year as our current one is 5+ years old. Cliff stated he would include the server in the 2013 budget. He estimates it will be $3,000-$5,000 to replace. There will be a laptop with a scanner at the Gas Dock which will be a big help for inventory management.
Mike did a physical inventory to put an accurate list into the new system. A write-off of obsolete parts in the amount of $5,000 was taken. The parts were donated to Courage Center who will put for sale on CrankyApe.
5. Annual Meeting
As a result of Member feedback, the Board made the decision to hold the Annual Meeting on a Saturday. After reviewing the calendar of events, the Board set Saturday, June 2, 10:00 am for the 2012 Annual Meeting.
6. Year-End Financials
Michelle summarized the financials by stating we broke even if depreciation, the double GM salary, attorney fees, $16k contribution into 401k that was for 2010, the $41k spent on WiFi, and donation of slips were taken off. The negative year-end also reflects the discrepancy of the Service Dept software not working properly which has resulted in an inaccurate total for the Service Parts expense.
7. Budget
Notations to the Budget:
– Real Estate Taxes increasing by 10% in 2012
– Lower, more conservative revenue total for slip rentals – economy-driven
– Decrease in Security expense. Cliff has negotiated a better deal – more security coverage for less expense
– Increase in Other Revenue. Other Revenue includes the rent from MarineMax, MariCanvas, and rental of office space in crow’s nest. It also includes Marine Max commissions and a surcharge to The Boat Doctor and River Valley Services. Cliff has negotiated receiving $1.25/ft from The Boat Doctor for all shrink-wrapping and 10% from all dock sales from River Valley.
– Service Revenue to increase 6.3% over 2011 actual
– Salary for a Parts Manager is in the Budget but not sure there will be action taken on this. Cliff and Russell are reviewing job description and responsibilities.
Based on the shortfall in revenue vs. expenses, Cliff recommended increasing revenue by either:
i) Increase in assessments
ii) Across the board increase i.e. cost of living increase
iii) Eliminate or reduce discounts given to members
Cliff estimates between the Gas Dock discounts (fuel discounts) and the Service discounts, revenue could be increased by $40k/year. Cliff’s recommendation is to eliminate discount to start and then reevaluate next year.
Michelle stated the purpose of increasing revenue is not for operating expenses but to build a reserve for future capital improvements.
Jim made a recommendation to build awareness in the membership to understand how utilities have soared and encourage changes in usage i.e. turning off air and hot water heaters before leaving the Marina. Russell stated language should be included with the Spring Launch letter.
Motion by Matthew to remove Boat U.S. discount as well as BMA Member discounts going forward. Seconded by Morgan. Unanimous approval. Cliff noted the removal of discounts was not reflected in the 2012 Service Revenue.
Truck was included in 2012 Service Expenses but may not purchase. No major expenses with service equipment in 2012.
Motion by Matthew to accept the 2012 Budget as proposed. Seconded by Chris. Unanimous approval. Kathy was instructed to send Proxy votes to all members and have returned before the February meeting.
8. 2012 Variable Compensation
Russell presented spreadsheet for determining staff bonuses in 2012. Recommendation to shift bonus grid upward and thus allow staff to receive their usual bonus if goal is met.
Russell stated Members will need to be informed the completion of the Service Surveys is factored in the employee matrix of performance. Russell will send out grid to Board Members for review. The Board will vote at the February meeting to approve the VC.
Russell requested Board Members review the current Survey questions and report back to him with any recommendations.
9. Closed Session
Meeting adjourned at 9:18 pm.
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