Board Meeting Minutes – March 9, 2011
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
March 9, 2011
Board present:
Michelle Lemanski
Morgan Fudge
Rachael Harvey
Chris Ridgway
Steve Paquette
Ron Hopfensperger
Matthew Kasinkas
Absent:
Marcus Gernes
Russell Sheaffer
1. Meeting called to order by Commodore Michelle Lemanski at 6:30 p.m.
2. Andy Rollwagen of First State Bank and Trust, Bayport, presented information on First State and their proposal of a $100k Line of Credit to Bayport Marina. Andy explained First State has experience working with marinas. He further stated a relationship with BMA would provide exposure for financing boats and slips to boaters. First State has been in business since 1914 and is locally owned and operated. There are 96 shareholders. The company moved from a C Corp to an S Corp four years ago. First State is well capitalized. The LOC offered would not require real estate collateral but would be a standard UCC Filing with a portion of personal property and accounts receivable as collateral. It would be a one year term, interest payments on a monthly basis. The interest rate offered would be 5% (currently the floor) but is a variable rate based on prime plus one. Andy stated rates are predicted to rise within the next year. There would not be any fees incurred with the LOC i.e. no annual fee. There is a one-time administrative fee of $75. The only requirement on renewal would be the review of BMA financials to confirm the LOC is being used in accordance with banking guidelines. To access LOC a call to the bank is required – cannot access via internet. Andy stated the LOC is priced based on BMA also opening a depository account with First State.
After Andy had exited meeting, discussion regarding the LOC was conducted. The consensus of the members present was that even though the Marina did not need the funds currently, it was best to have a LOC in place for if and when it is needed. Rachael made the motion to open the $100k LOC with First State Bank and move the petty cash checking account to First State as well. The signors authorized to be on the account would include the General Manager, Commodore, and Treasurer. The accounts will require 2 signatures. Matthew seconded the motion. Unanimous approval. Kathy will contact Andy to initiate the paperwork for opening the accounts.
3. Meeting Minutes
Rachael made a motion to approve the February Meeting Minutes as written. Ron seconded. Unanimous approval.
4. Group 41
Michelle informed Group 41 has advertised an open lease for the restaurant to obtain a leasee. She spoke with Bill Kranz who is hopeful Group 41 will come to the table to settle the sign and cross easement disputes once a leasee is found.
Scanlon – Michelle met with Bill Kranz last Friday at the hearing at Washington County Courthouse. Previous to the hearing, Bill had a conversation with Scanlon who informed he would be willing to settle with the Marina for a settlement and detailed his demands of: $75k for restaurant startup costs, $120k for the operational costs while he was open, and $65k year for 15 years for loss of revenue. Bill explained to Scanlon that the Summary Judgment was filed to settle the case. Judge Hannon granted the Summary Judgment and ordered Scanlon to pay BMA’s legal costs.
5. 2011 Budget was approved. A list of questions from members was distributed. Michelle will address each member directly to answer their questions. She will also compose a memo for website addressing the oversight of the double BMA Social Events.
6. 2010 Taxes/Audit
Extension has been filed by Michael Mullen CPA. Because BMA is a non-profit and is expected not to owe tax, the audit and filing of taxes will take place after April 15.
7. Capital Improvements
Mike talked with Jim Long about a new truck. Copy of the proposal was distributed. Gregg would like to hold off with the purchase until after the flood.
There was also a discussion about the replacement/rebuild of the forklift. Gregg will check with Russell about contacts for rebuilding the engine.
8. Bonus/Pay Structure
Michelle recommended tabling discussion until next meeting when Russell is in attendance.
9. By-Laws
The verbiage “member in good standing” to refer to financially current was discussed. Matthew recommended Russell to define. Michelle also recommended removing “Commander” language from By-Laws (Article VI, Section 2). The consensus was to continue working on By-Laws and submit the final draft to the BMA members at the annual meeting for approval.
10. Launch/Flood
Gregg reported approximately 140 launch forms had been received. He stated the decision was made to let the water go into the building and not sandbag. Current predictions vary from 690, 692, and 694. It is anticipated the flood will begin March 21. Gregg stated the platform of the well is 686. The service building is 689. If the water level is at 692, it would mean 6 ft of water on the blacktop and 3 ft into the service building. The 2001 flood was at a level of 692.
There will be a semi-trailer here next Monday to load and store the contents of the service building. Bubblers have been set out to open up C & D docks. The west side of D Dock is the lowest spot. Service crew will move some boats from this area and put in the water. Additional cables are being installed to hold the docks in place and keep them from shifting and going out into the harbor. Because of the cross-easement with the condos, they will be able to use the parking lot to store personal property. Fuel tanks are full and won’t pop out of the ground. Energy Solutions will be here to inspect the flow pipes. The pollution control agencies have already been out to inspect for containment of hazardous materials during flooding. The City of Bayport is having an informational meeting on March 14 Gregg will attend. The question was asked how much of a delay the flood will have on launching. Gregg stated in 2001 even with 2 crests, launching stayed pretty much on schedule and all boats were in by Memorial weekend. During the flood downtime, service staff will work on the landscaping around the pool and clubhouse. Gas dock and Service Master will be hired to help with the service building cleanup.
11. Elections
Rachael, Ron and Michelle’s terms will be completed in June. Michelle stated she will run for another term to continue her work on the Board. She will draft the Letter of Intent to serve on the BMA Board that will be sent to all members within 45 days of the Annual Meeting and find potential candidates. The Annual Meeting will include election of new board members and approval of By-Laws and Budget.
12. Other
Staffing for the gas dock is near completion. All the female staff are returning. Jake will also return and Gregg is hiring another male worker.
WiFi Proposal
Matthew has had discussions with other area marinas to see what they are doing for internet. All marinas are currently using St. Croix Net. St. Croix Marina is looking at WiFi but has not decided what to go with. Matthew’s recommendation is to find a service provider that can be called when a boater has problems connecting. Some of the companies he found were: Miracle Computers in Rochester, and MinnTek and Air Corp who are companies that do large jobs in the metro i.e. City of Minneapolis. Rachael gave Matthew info for a company in the valley called RiverCom. Matthew will contact RiverCom. Kathy will forward our Comcast rep info to Matthew for discussion of internet speed options.
General Manager
Michelle has conducted five interviews for the GM position. Russell has also interviewed two individuals and has one more to interview. One of the candidates qualified for the position backed out because he did not want to move to Minnesota. Michelle will bring more info to the next Board Meeting. It is the goal to have someone in place by May 1 to train with Gregg.
Rachael made motion to adjourn the meeting, seconded by Matthew. Meeting adjourned at 8:15 p.m.
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