Board Meeting Minutes – March 20, 2013
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
March 20, 2013
Board present:
Brad Baune
Morgan Fudge
Val Fuller
Sandor Csallany
Marcus Gernes
Michelle Lemanski
Jim Mondry
Chris Ridgway
Absent:
Steve Paquette
Meeting called to order at 6:30 pm by Commodore Marcus Gernes.
Presentation made by Terry of Freeway Electric. Terry has been working for the past 3 months with Cliff and Marcus identifying our issues with the dock revitalization project and coming up with solutions to resolve. Freeway Electric has been the electrician for the Marina for the past 15 years. He was also the electrician for the upgrades at Afton Marina and Treasure Island.
Marcus asked Terry why there was such a disparity in the electrical bids received from Collins ($1.2mil) and his bid of $624k. Terry stated the reason for the difference is because Xcel is providing the transformer enabling single phase 240. He does not see a need for 480 or 3 phase at docks. Marcus expressed concern regarding plans for grounding the electrical lines. Terry explained the new cable offers flexibility and several grounds, basically, doubling the grounding of what we have now. There will be earth ground and equipment ground i.e. ground equipment and ground receptacles.
Terry explained everything stems on Xcel’s willingness to run line and install a transformer to the dock from pole. Zach of Xcel has been unresponsive in providing the decision on what Xcel will do. Terry will try contacting him again on Thursday. The goal is to have all ground work for electrical completed before November.
1. Meeting Minutes –February 26, 2013
Motion made by Marcus to approve the February Minutes as written. Seconded by Morgan. Unanimous approval.
2. Financials
In Steve’s absence, Kathy presented an overview. The Balance Sheet for 2013 vs. 2012 shows a substantial decrease in the Checking/Savings total. This is due to cash being used to purchase two slips as investments – refer to Other Assets on the Balance Sheet. Overall, total assets are up $30k from previous year. On the P&L, income and expenses are on track with the Budget and previous year. Service Parts was over Budget due to the purchase of a $16k generator. Other income i.e. commission from Marine Max remains down. Cliff explained there have been boat sales recently and we should see income from those sales on next month’s financials.
3. General Manager’s Report
Cliff reported there are 3 BMA slips for lease and 9 owner slips. He stated he is good with these vacancies as Marine Max is still selling boats and he wants to have a place to put them after the sale.
The Service Department has been busy and they have a lot more jobs to do before launch. Most of the jobs were generated as a result of the assessments made by technicians during the winterization process. Cliff also stated he feels people are more confident about the economy and are spending money.
Spring launch scheduling is not looking good. Ice still building on the river and is at 27 inches.
4. Committee Update
Val presented her estimates for the Commodore Ball. Concerns over having enough space on the Point for the tent were discussed. Cliff will measure the area and determine how the tent should be positioned in the space. Marcus expressed concern over the cost of the party which Val estimated to be $50k. Val stated she needs to make a commitment to the various suppliers no later than April 1. Marcus requested Val provide “best, better, premier” options. Marcus solicited the input of other Board Members for a number they were comfortable spending on the party. Consensus was since it is the Marina’s 25th Anniversary, to keep the cost to $25k. In keeping with the theme, it was also suggested to keep the price of the tickets to $25/person. Val will contact other caterers and party supply vendors for better pricing. Marcus instructed Val to contact him if costs exceed the $25k by more than 10%.
5. Old Business
Marcus informed the date for the Marina Revitalization Project presentation to Past Commodores was rescheduled to April 17. The program will take the place of the regular April Board Meeting. Brad suggested having a short meeting prior to the presentation to go through the nuts and bolts of what will be presented. Marcus stated the presentation will be an informal meeting. Heavy appetizers, wine and beer will be available at 6:30pm prior to the meeting.
Marcus reported the decision to purchase new pool furniture with cushions had been made. Based on Cliff’s research and recommendation, 33 lounge and 20 chairs with blue cushions will be purchased through Commercial Resort Furniture. Cliff stated staff will take out cushions in the morning and put away in the dock boxes at night thus, extending the life of the cushions.
Marcus addressed Sandor’s suggestion of changing the Bayport Marina name to Bayport Marina and Yacht Club. Marcus informed he had contacted Bill Kranz regarding the change and discussed what would be involved from a legal standpoint. Marcus expressed he felt a name change would be controversial and felt it was not a good time to present to the Members given the revitalization project is underway. Chris recommended having discussions with Members on the docks this summer and get a feel for the name change. Brad made a motion to have Bill Kranz secure the Bayport Marina and Yacht Club name with the Secretary of State for potential future use. Seconded by Jim. Unanimous approval, motion carried. Marcus suggested the subject be tabled until fall and put on the agenda at that time.
6. Memorial Update for Roger
Marcus contacted Cheryl regarding the Board’s desire to recognize Roger. He stated he was not able to get a commitment from her. If he does not hear from Cheryl by May 1, he will call again and try to set up a lunch to discuss the presentation to family in honor of Roger.
7. Group 41 Settlement Update
Attorneys are working on the language of the Settlement Agreement and specifics regarding the maintenance and usage of the sign. The process is taking longer due to details such as who is responsible for replacing light bulbs when burnt out, etc. Although our attorneys have responded to Group 41’s attorney within 48 hours, Group 41 is claiming we are not responding in a timely manner. Bottom line, the $50k settlement payment will not be made for a while.
8. Gas Dock Update
All decking is on and crew are putting in the rest of the screws. Next Thursday the pumps will be put back. Marcus expressed he didn’t think the deck boards were gray as ordered. Val and Jim felt the color did look gray. Cliff explained once the snow and ice are gone, the color will look different against the open water. New reels and new hoses are also being installed. Because this was a cost not in the original budget figures, Cliff made the decision not to install LED lights to stay within budget.
9. Cost Review of DRP-Part II
The Executive Committee met last week to discuss options. It was decided to rename “Member assessments” currently billed spring and fall to “Member dues”. The term “assessment” should be used when referring to fees charged for capital improvements only.
Steve created a spreadsheet that was the model used for devising various scenarios for raising the capital funds needed for the Marina Revitalization Project. Based on the new figures given from Cliff, the total capital needed was revised from $2.2mil to $2.4mil. Along with the dues and assessment, $427k of Marina cash would be used to subsidize the project. After discussion of different amounts, the consensus was to draw $25k on an annual basis from the Marina net income. The model maintains ample cash reserves of $200k and a $200k Line of Credit.
Additionally the sale of the two investment slips in 2016 and 2017 with a conservative $10k profit.
One scenario was to keep dues as they currently are to pay real estate taxes and minor repairs. After 2019, when the project was completed Member dues would increase and average of $400 per member for the capital improvements fund. This increase would continue until the proper capital was captured. Question was asked how the assessment would work if someone purchased a slip during the 5 year project. Morgan stated the assessment obligation would travel with the slip. Marcus predicts the capital improvement assessment will result in a 5% turnover of ownership. Michelle and Brad recommended the communication to the Members should reiterate they are not only owners of a slip but also the owner of the docks, clubhouse, service building, pool, etc. Marcus stated he will be providing communication to the Members in two parts. The first memo will be a “soft” communication informing of the analysis done by the Board – where we’re at and what we are working on. He will give Members the big number. The next communication will outline the proposed method of financing (Steve’s model). Marcus will emphasize 20% of the Membership will pay under $10k/year.
The Executive Committee praised Steve for all his work on the spreadsheet he developed. Marcus informed Steve has agreed to re-up another three years on the Board. Steve’s commitment came with the stipulation he would not have to serve as Commodore any time during his second term.
10. New Business
Cliff reported he was contacted by a land owner of a 1-1/2 acre lot adjacent to the Marina property if the membership would be interested in purchasing. The lot is wetlands and is unbuildable. Consensus of the Board was there was not an interest to purchase.
Jim informed of a problem with the geese traveling up on the property and making a mess of the grounds. He stated the “string method” has worked in the past but also suggested coyote decoys. Marcus instructed Jim research the decoys and report back at the next meeting. Kathy will make note to add to the Agenda.
Motion by Chris to adjourn the meeting. Seconded by Michelle. Meeting adjourned at 9:20 pm.
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