HARBOUR TOWN YACHT CLUB, INC.
BOARD OF GOVERNORS
November 2, 2014
The Board of Governors meeting was held on Sunday November 2, 2014. The Board
met in Executive Session at 1:00 P.M. The Club Group, Ltd. Management Team joined
the Board at 3:30 P.M. November 2, 2014. The meeting was called to order by Beverly
McKinney, Commodore.
ROLL CALL
PRESENT:
Beverly McKinney, Commodore
Tim Ballinger, Vice-Commodore
Tom Bosley, Secretary
Scott Reed, Treasurer
Dudley Parker, Board Member
Larry Wilson, Board Member
Kerry Myrick, Board Member
STAFF PRESENT: Mark King, President, CGL
Victor Davidson, GM, CGL
Andy Sutton, Controller, CGL
The Board reviewed the September 29, 2014 meeting minutes that had previously been
confirmed via email. A motion was made and seconded to approve the meeting minutes.
The motion was passed unanimously.
FINANCIAL: ANDY SUTTON/VICTOR DAVIDSON
Andy reviewed the Balance sheet for September 30, 2014. Andy discussed the “Due to Reserve”
account. Andy made mention of the $147,000 shortfall in the reserve account as of September
31, 2014. Due to the amount of funding needed and the amount of funding available to be
transferred, the board made a motion to suspend accruing for the reserve account through
December 31, 2014. The motion was seconded. The Motion passed unanimously.
Andy and Victor reviewed the income statement for September 30, 2014.The Club is within $500
dollars of budgeted net income for the year as of September 30, 2014.
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2015 DRAFT OPERATING BUDGET: VICTOR DAVIDSON/ANDY SUTTON
The proposed operating budget for 2015 was in line with the expenses and revenues from
past years. The Equity dues are increasing $250 per equity member which was an
increase that was approved at the September 23, 2013 Board meeting and discussed at the
annual meeting. Victor Davidson reviewed the budget stating that the projected net
income would be $103,048 which included $53,000 in depreciation booked throughout
the year to avoid a large audit adjustment.
2015 DRAFT RESERVE BUDGET: VICTOR DAVIDSON/ANDY SUTTON
Included in the reserve budget is:
1. New premium Mattresses for all of the units
2. New upgraded larger Televisions for all of the bedrooms
3. Exterior Painting on the building
4. Refinishing the doors for the front office and lobby area
5. New carpet in the front office area
6. Upgraded art work for the Hallways
7. New Air conditioners (If Needed)
8. Refinish the bathrooms on the fourth floor
9. Replacing the awning on the deck
10. Repairing the deck surface
11. Redoing the covers and cushions on the Mystique
12. Cosmetic paint and finishing on the Mystique
DOCUMENT REVISION: TERRY FINGER
Terry Finger reviewed the changes to the governing documents and reviewed an
executive summary for the board. The board looked through the changes and requested
additional work be done. Terry responded that he would create a new document and
submit it to the board for review by November 19, 2014. The board discussed the
procedure for setting up the special meeting that would be necessary to ratify the new
governing documents further discussion was tabled until the completed documents were
in hand.
ANNUAL MEETING AGENDA REVIEW
Mark King reviewed the agenda for the annual meeting and reported that the front desk
was still working to get a quorum for the annual meeting. The board discussed the need
to schedule a new date for the annual meeting if a quorum could not be reached.
November 21, 2014 was chosen for a rescheduled meeting if necessary.
SEPTEMBER 29, 2014 ACTION LIST
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Victor reviewed the action list from September 29, 2014.
SALES AND MARKETING REPORT: MARK KING
Mark King reviewed the sales and marketing making mention that 7 equity memberships
have sold this year for an average price of $14,357. There arecurrently 37 equity
memberships for sale. Mark also reported that we have sold 5 Social memberships this
year, and that there are currently 14 Social memberships available.
RECOVERY REPORT: MARK KING
Mark King reported that recovery payments were being made in accordance with the
repayment schedule. Mark updated the Board on an amended Recovery Plan which
could expedite the repayment of Recovery Losses.
OTHER BUSINESS:
Mystique Rate Plan: Victor Davidson
Victor Davidson presented a new rate plan for the Mystique. Victor stated that the
guiding ideas behind the new structure were:
1) Offer members a preferred rate.
2) Increase availability to the members
3) Maintain or reduce the annual operating loss of $46,000
To address these guidelines and respond to the member feedback he proposed this pricing
structure.
1) Each member would receive two free passes aboard the Mystique dolphin cruise
per week.
2) The rate for non free pass users is $15 per passenger
3) The per membership per room cap remains $50
4) Increase the minimum passengers required to take the Mystique out from 6 to 10
people.
5) 6 person reservation maximum per membership per room in house.
A motion was made and seconded to adopt the proposed rate structure. The motion
passed unanimously.
There being no further business the meeting was adjourned.
FUTURE MEETING:
November 3, 2014 with an organizational meeting to follow the annual meeting.
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