Board Meeting Minutes – October 13, 2010
Bayport Marina Association
Board of Directors Meeting Minutes
Marina Clubhouse
October 13, 2010
Board present:
Michelle Lemanski
Rachael Harvey
Marcus Gernes
Chris Ridgway
Matthew Kasinkas
Morgan Fudge
Ron Hopfensperger
Kirby Newton
Absent:
Russell Sheaffer
Steve Paquette
1. Motion by Rachael to Call to Order, seconded by Marcus. Unanimous. Meeting called to order by Commodore Michelle Lemanski at 6:32 p.m.
2. Motion by Rachael to approve the September Meeting Minutes as written, seconded by Chris. Unanimous approval of all members.
Recommendation by Gregg to have Kathy send draft of Minutes to Marcus for approval. Upon Marcus’s approval, the full version of Minutes will be sent to all Board Members. Financials will also be posted for viewing. Kathy is working with Shelly of Frontporch to create login and password for Members.
3. Gregg reported he found the original application for federal tax ID and paperwork verifying the filing as a non-profit. He has faxed the documents to Mike and Susan at Mullen – no update as of meeting. Gregg will follow-up on Thursday and email Board Members their response.
4. Michelle announced accounting will be brought in-house as of October 15. Payroll will be moving to Heartland as soon as all the forms have been completed by employees. Gregg explained he went with Heartland because they already do our credit card processing and their payroll processing fees were considerably less than Paychex. ADP never returned his call for a quote.
A review of the current chart of accounts will be done. Additional accounts will be added and accounts not used will be archived.
5. Gregg introduced Magd El-Fatairy from M&I Bank. Magd presented an offer to the Board for a $300k Line of Credit.
History of M&I Bank – started in Milwaukee and is a state-chartered bank. M&I operates in six states and operates like a small community bank. M&I currently holds $60 billion in assets making them the 11th or 12th largest bank in the nation. M&I is publicly held.
Morgan asked Magd how the $300k was derived. Magd stated the rule for establishing a LOC is 10-20% of annual income. For BMA, 20% of annual revenue equals $300k.
Magd explained the 30 day “Quiet Period” requirement associated with the LOC. Quiet period has become common because it gives the bank an indication if the borrowing entity is capable of paying off the LOC and lets them know how the LOC is being used by the business.
Question was asked why the LOC required a mortgage against the marina real estate. Magd responded that tying to real estate makes a LOC easier to acquire. However, the bank also looks at another source for repayment i.e. annual dues. Because of the value of the marina real estate, an appraisal is not necessary.
Magd explained why LIBOR is used for determining rates rather than the Wall Street prime. He further stated the 5% rate is the lowest rate M&I offers for a $300k LOC. The next break would be 4.75% for a $500k LOC.
Timeline to activate a LOC would be approximately two weeks.
After Magd’s presentation and exit, Gregg explained he had contacted US Bank for a LOC and they turned the Marina down.
Rachael questioned why the Marina needs a LOC if we don’t need one or don’t have a plan to use it. She would not support putting a mortgage on the property. Morgan explained that having a LOC in place is best before there is a need for money. He stated if you wait until there is a need, it is difficult to obtain credit. Morgan also did not support putting a mortgage on the property and did not agree with M&I’s $2,200 closing costs for the LOC.
Marcus recommended to continue shopping for a LOC that doesn’t put a mortgage on the property. Consensus of Members present was that a $100k LOC would be sufficient and pledging funds from the $245k in money market would be acceptable. Rachael, Morgan and Gregg will meet to shop other banks for the LOC as well as checking options.
Gregg will contact Magd on Thursday to inform the Board was not in agreement to the terms of his offer and investigate what else is available through M&I.
6. Website – if members have ideas they should give to Gregg.
7. Marianne is officially retired. Marianne agreed to come in as needed. Marcus suggested she be invited to future functions of the Marina. Michelle stated she will be having lunch with Marianne to follow-up with her regarding any concerns of early retirement.
8. Review of Financials – Michelle instructed Members to look over financials. These will be the last reports Jon will be generating. Michelle recommended a backup of financials be put on a CD each month and keep two months of backup in the safe.
Gregg informed $262 in interest was earned in September on the $245k account with M&I. Morgan stated he would research for another high-yielding savings account.
Rachael questioned the negative interest income on the P&Ls. Gregg will contact Jon for clarification of these figures.
9. Internet Survey
Matthew finalized survey. Since the cost of WIFI cannot be determined at this point, it was the consensus of Members to remove the two paragraphs in Part 3 of the survey that address direct costs of WIFI. Matthew estimated it will cost $25k to install equipment plus additional costs for pipe and for maintenance services. Gregg is meeting with Aircorp on Friday to survey the property i.e. trees and buildings, etc.
Motion by Matthew to accept the survey as modified and to have Gregg and Kathy send out to boaters. Seconded by Marcus. Unanimous approval.
10. Capital Improvements
Refer to the list prepared and distributed by Ron at the last meeting. Michelle addressed the concern over which area to start first without having members upset i.e. if start improvements on B Dock, A Dock will be upset. Chris made the recommendation that it be left up to the contractor to determine the most logical way to start replacement/repair.
Gregg stated that any talk about the grounds/driveways must include Group 41 at the table or they will not pay.
Chris mentioned an inventory of Ash trees should be done to determine how many may be lost and consider planting some new trees now.
Rachael made motion to change the next meeting from Wednesday, November 10, to Saturday, November 13 at 9:30 a.m. At this time the members will walk the property and assess what and where the greatest needs for improvement are. Marcus seconded. Unanimous approval. Kirby noted he will be out-of-town on November 13. A short meeting will follow the walk-around.
11. Other
Steve sent Michelle a new depreciation schedule as he believes we have not been depreciating correctly in the past. Michelle will email a copy to all the Board Members for review.
No report on the lawsuit with Group 41 – no trial date set.
The lawsuit with Scanlon has been set for June 2011.
Matthew made the motion to adjourn the meeting, Marcus seconded. Unanimous. Meeting adjourned at 8:30 p.m.
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