2. Introduction
Town Halls and Special General Meeting (SGM)
Town Hall #1: Information Session
Town Hall #2: Questions & Discussion
SGM: Approval from Membership
Presentation of Harbour Proposal
• Straw Poll
Questions & Clarifications
How to provide feedback
Agenda
3. Goal: to maintain the longer term sustainability
of the Kingston Yacht Club at its current site.
Key elements to achieving the goal include:
Membership
Facilities
Harbour
Finance
Strategic Plan
4. The Phased Plan
A phased plan was developed with a view to
implementation over a period of about 10 years:
1. Dock at Jemmett’s Landing (2012)
2. Fuel Dock (2012)
3. Expand and enhance our Harbour (Spring 2014)
4. Saint’s Rest Renovation (future)
5. Clubhouse Renovation (future)
5. Strategic Plan Activities
1. Development of a vision and a phased plan to achieve it
2. Development of conceptual drawings for renovation/enhancement
of club house
3. Determination of club capacity to finance the vision based on:
• Formal appraisal of the property
• Discussions with banks and negotiation of financing
4. Determination of feasibility to expand harbour based on:
• Ability to lease then purchase adjacent water lot
• Engineering/wave climate study
• Preliminary proposals with cost estimates from various firms for design
and installation of wave attenuators and docks
6. Questions
1. Do you support the idea of moving to an All finger
dock harbour?
2. How many members hold moorings ?
3. How many members have boats moored elsewhere?
4. How many of those would move their boat to the
Club if finger docks were available?
Straw Poll
7. Research and Engineering
Wave study (complete)
Water lot appraisal (due next week)
Identification of suppliers (complete)
Analysis of competition (complete)
Where are we now?
8. Water lot
Proposal to lease adjacent water lot has
been submitted to Transport Canada
• Three year lease initially, purchase at end of lease
• Expecting a response in April or May
Where are we now?
9. Budget & Financing
Working Budget
Funding Model includes:
• Fee Structure
• Harbour Fees
Where are we now?
10. Details to be Finalized
Finalized harbour plans and engineering
• Attachment point to breakwall
• JS Launch
• Centre dock adjustment
Updated Costing/Quotes
• Electrical supply to club and docks
• Centre dock
• Gabion repair
12. April-
May 2013
• Town Hall meetings
• Lease from Transport Canada
May 2013 • Special General Meeting
June-July
2013
• Harbour Marketing
begins
• Engineering study
• Electrical
• Centre dock &
harbour soundings
• Design and layout
13. July 2013
• Finalize Design and
Specifications
• Send out RFP
Aug-Sept
2013
•Select Preferred
Contractor
•Negotiate Contract
Oct 2013
Mar 2014
•Manufacture of
attenuators and
docks
April
2014
• On Site
Installation
14. ~30 new slips
Finger dock moorings
Accommodation of boat lengths of 40’+
Proper electrical & water hookups
Pedestal/slip ratio needs to be established with input from members
Access to convenient & safe swimming
JS launch facilities, Able Sail & RC access
Guest moorings
Potential for mast crane
Protection from south and east winds.
Harbour Features
15. Questions
1. How many people would pay market rates (~$350+)
for a dedicated 30amp electrical service?
2. How many members would pay market rates
(~$200) for a dedicated 15amp electrical service?
3. How many would only occasionally use a 15amp
service?
Straw Poll
16. Sample harbour layouts
Harbour Design has not been finalized
• Design & Engineering phase begins after approval
• Request member input of design options via
display board in Clubhouse and online.
• Subsequent Town Hall information meetings
Examples required for water lot lease application
All options so far include a floating wave attenuator
extending from the existing breakwall
22. Effects on Club Operations
Haulout plans
Breakwall access for construction
Potential relocation of masts
Restricted Access
Electrical installation
Additional Parking Demands
Need for optimizing existing club parking
Exploration of parking options
24. How much it will cost?
Project Budget
Item Cost
Dock & Breakwall (based on supplied quotes) $1,100,000.00
• Electrical to base of Maitland
• Water lot
• Centre dock work
• Electrical on Docks
• Attachment to existing breakwall
• Gabion repairs
$400,000.00
Sub-total: $1,500,000.00
Contingency @ ~7% $100,000.00
Total: $1,600,000.00
25. How will it be Funded?
Harbour will be Self Sustaining
Only new revenues will service debt
Sources of Funding for Project ($1.6M)
Capital Reserves ($100K)
Refundable Dock deposit (~$127K)
Loan at 5% over 30 years (~$1.37M)
Sources of Debt Servicing ($88K/year)
Fees from ~30 new moorings (~$64K/year)
Incremental fees for those converted to fingers (~$15K/year)
Incremental fees from other sources (~$15K)
26. Refundable Dock Deposit
Proposed Deposit Amounts
<= 25’ $1,000
26’ to 30’ $1,500
31’ to 35’ $1,750
35’+ $2,000
How does it work?
Deposit paid when you are assigned a mooring
Refunded when you give up your mooring
27. Simplified Mooring Fee Structure
Change to per-foot charge based on boat length
Easier to calculate and compare with competition
Fair representation of the costs to the Club
Slips 1-34
• Remain med style moorings
• Fee calculated per foot
(about a 35% discount of finger dock per-foot fee)
Slips 35 – ~110
• Finger docks
• Fee calculated per foot
28. Mooring Fees - 2014
Example
KYC’s average boat is
• 29.3 feet LOA and
• 9.6 Beam
2014 current
• using current formula
+ finger-dock premium
• Finger Mooring Fee of $ 1721
(equivalent to $59/foot)
2014 proposed
• Finger Mooring Fee of $1,785
• Dock Deposit of $1,500
Proposed Finger Dock fee
• $61/foot
• + Refundable Dock Deposit
• 27 boats experience increase
• 22 boats experience a decrease
• Average increase is $32 (3%)
Competition (2014 estimate)
• Confederation Basin - $69.24
• POH - $64.40
• Collins Bay - $57.10
• Kingston Marina – $56.10
29. Proposed Entrance Fees
How would they help?
Improve membership retention
Provide a strong marketing incentive to help fill harbour
New member entrance fee would be contributing to the Club’s
infrastructure and value
How would they work?
Does not apply to existing members
Family Member: $1000
Single Member: $600
Waived for applicants 65 and older
30. Mitigating Financial Risks
What if interest rates rise?
Conservative at 5%: expect first 5 years to be 4.5%
Plan to aggressively pre-pay principal with surplus
What if there is slow up-take on new slips?
Can manage potential shortfall years with funding from ‘full
harbour’ years in order to be self sustaining.
Introduction of entrance fees effective March 1, 2014
Incentive for boaters to join before 2014 season
Will help with member retention
31. Summary
Simplified mooring fee structure
• Finger docks rates competitive
• Remaining med mooring average fee unchanged
Introduction of Refundable Dock Deposit
Introduction of Membership Entrance fees
Result:
Self Sustaining Harbour
Increased the value for existing members
Increased Membership Base
32. Tonight
Requests for clarification of what we have presented
Between tonight and next Town Hall meeting
Feedback options
• E-mail: harbourquestions@kingstonyachtclub.ca
• Web: www.kingstonyachtclub.ca/newharbour
• Paper Questionnaire and input form at the bar
• Considering publishing an electronic questionnaire
• Questions & comments and new information from the Strategic
Planning Committee will be addressed at Town Hall #2
Getting your input
Editor's Notes
Town Hall #2 May 2ndSGM scheduled for May 15thSTART ----------------------------------------I’d like to Welcome everyone to the first of 2 planned town hall meetings to present and discuss the Boards harbour redevelopment proposalThis meetings are an opportunity for the board to inform the membership of what we propose to do, how much it will cost, and how we plan to finance itBetween this meeting and the next (2 weeks), we will be providing opportunitiesTo provide feedbackAsk questionsI tell you more about that at the end of the presentationThe Next town hall meeting will be an opportunity to for the boardTo address the concerns and questions from the proposal presented this eveningIncorporate feedbackWhat we are proposing is a large project, maybe the largest single project the Club has undertaken, and as such we will be seeking member approval through motion at an SGM (scheduled for May 15) before proceeding.The core of what I will be talking about is the proposed plans for expansion and enhancement of the harbour, but I will also be talking about membership growth First, I’d like to review how we’ve arrived at this point in timeSome of you may have been following the Strategic Plan process, but for others it I think it important to reviewAs some of you weren’t here when it beganThe work that has lead up to this meeting is a result of an enormous amount of effort from current and past Boards and the strategic planning committee.I would like to introduce the Flags officers and the SP committee are seated to your right (Rosemary, Ross, Bob – Paul, Alison, Rob, MervSuzzane).They are here to help answer question and provide details
The expansion of the harbour is part of a much larger strategic plan that was undertaken to Ensure that the Club’s programs, services and facilities are not only well looked after but continue to meet the evolving needs of the membership over the long term. The Goal is to ensure the long term sustainability of the Club on this site. How did establish this goal?brain storming session with the board and members, member survey and a town hall meeting. All were aimed at getting detailed input from the membership.We are moving forward on what we heard from you.You told us that we need to achieve our vision of a vibrant and sustainable club by focussing on:Membership retention and recruitmentEnhancements and upgrades to the facilities including the club house and Saint’s RestImprovements to the harbourSound financial planningBased on this input a plan was developed and we’ve made steady progress on it.NEXT Slip
Here is the planWe’ve done some much needed maintenance and upgrades to the gas dock and Jemmett’s Landing.Our focus now is the Harbour.Expand harbourUpgrade facilitiesWe will address Saint’s Rest and the Club House as future projects.I’d like to give you some information on what has been done to assure ourselves of the feasibility and viability of harbour expansion and enhancement.This next slide also shows some of the other activities that were undertaken in the development of the phased plan but this evening the harbour will be the topic of the presentation----------------------------Membership focusedIncreasing BasesImproving Services· Membership survey and input from Town Hall (spring 2011)· Appraisal of club property to facilitate financing (Fall 2010)· Concepts for upgrade/expansion of clubhouse and Saints Rest developed with Shoalts & Zaback Architects (Fall 2011)· Initiated negotiations (July 2012) with Transport Canada for lease (& subsequent purchase) of adjacent water lot· Engineering/wave climate study with Shoreplan Engineering (Fall 2012)· Identification of attenuator & dock suppliers (Fall 2012)· Issued Request for Proposals to identified suppliers (Feb 2013)
- [to Review] Development of a vision and a phased plan to achieve itBrainstorming session led by Queen's Business School and including Board and a cross section of membersDetailed survey of membersTown Hall session with membersFeedback to members through written reports and presentations including at AGMDevelopment of conceptual drawings for renovation/enhancement of club house based on:engineering assessment of club house status (tendered)assessment of alternative optionspresentation to members for feedbackFirst stepDetermine our ability to finance a new harbour.Property appraisal of the property and this allowed us to approach banks and negotiate a financing agreement at a very reasonable rateWe have also done some research into practices at other clubs, detailed cost/benefit analyses and strategic planning to identify approaches to funding the harbour. Again, I’ll come back to that in more detail for discussion later.What else do we need to know and understand before moving forward?technical information such as a wave attenuation study, preliminary costing of wave attenuators and docks and preliminary harbour designs.The next slides provide an update to where we are right now in the process.---------------------------------------------------------------So that’s a quick overview of what’s been done so far. We think we’re in a very good position to go forward and we need your input and, ultimately, membership approval. The next slides provide you with detail on what a new harbour could look like and how it could be financed.- But first, I’d like to take a short straw poll.
I’d like to take another short moment to ask a few more questionThank you for you feedback.
To be able to develop a proposal, we needed to gather some preliminary informationWave Study: provides guidance for harbour design and planningWater Lot Appraisal: require for lease negotiationIdentification of Potential Suppliers: the committee identified top suppliers and put forward a RFP Received proposals, and initial costing
Obviously key to our ability to expand the harbour, is being able to secure the adjacent waterlotWe are engaged in detailed discussion with Transport Canada toward securing a leasepreliminary discussions with the city and we have a letter of support from a key neighbour.While the process is not complete, we do not expect significant problemsThis the lease/ purchase process requires the submission of appraisals, harbour proposals, anchoring plan
RFPs sent out to potential suppliers on Feb 4From the RFP process, we received proposals that provided enough information to establishRange of costs, Potential harbour size, From this information, we have been able to developWorking BudgetFee structuresThat we are now confident that our model realistic attainableThere is much left to be finalized,
Here are some of the issues that will don’t have the answer for.Shortly, I will be showing you possibly plans for the harbour design, but these are only preliminary, soThe Feedback from the Straw Poll will help guide us on issue such as the degree of electrical service to the docks- Some of these issue will need to be resolved quickly, so next I will talk about the expected timeline for the entire process.[permitting’ which will be expected when we get the RFQ]
There are many steps between this proposal and having docks in the water, The next few slide provide an approximate timeline for the activities starting from this presentation all the way to execution.
Schedule of meetingsTH #2 May 2rdSGM on May 15thExpect to have lease finalized by end of MayWith feedback and input from TH meetings, we would bring a final proposal to the member through a SGMIf approved by the membership and number of activities would begin immediately:Active marketing of the new harbour to fill new slipsDesign and Engineering phase to finalize harbour design and detailsMembership engagement during this processPlans available at the Club, information sessions
By the end of July, we would expect to have finalized the design and specificationSufficient to send out a RFP that would present the harbour we want deliveredFrom RFP responses, we would evaluate and select our preferred contractorImmediately followed by contract negotiationSome components of the harbour have a significant lead time for manufacturer, in particular the attenuators (which you will see shortly),The end goal is to have the harbour in place for the 2014 season.
I have been alluding to a number of aspect of the new harbour such as expansion and electrical, sort of getting ahead of myselfBut here is the list of what are key features of a new harbour30 new slips: more than %35 expansion in capacityFinger docks starting at Slip 35 ElectricalAs you will see shortly, an expanded harbour will impact current:Swimming locationsJunior Sailing Launch and accessAnd may impact Able SailRC Sailing as wellWe will ensure that a new design would account for these important featuresWe want to maintain guest dockingConsider how we might incorporate a mast crane in the designThe harbour must be a safe place for your boats, so protection from waves is critical as wellEtc.
I’d like to take short moment out of my presentation to conduct an informal poll of those presentThe questions about electrical service do impact our project plan, so allowing the board to get a ballpark feel for the interest level will aid in budgeting and modeling.I will read out the questions, and please hold up your voting card until all votes are counted.Thank you for you feedback. As we progress through the harbour development process, we will likely be soliciting more concrete commitments
The next few slide are intended to provide a few “samples” of general harbour layoutBut please note that none of these are final, and each have issues that would need to be addressedAs noted earlier when I was talking about timelines, the Design and Engineering phase would finalize the designs.During this process, we plan to keep the membership informed,Provide updates and design optionsSolicit feedback and inputThe examples that I will show you next were required for planning purposesBudgetingPlanningAnd Lease approvalA common feature you will see in the layout are the use of wave attenuators to protect the expanded portion of the new harbour.I’ll provide an example of these after I show you some of the harbour layout.
This is the initial layout that we provided suppliers in the initial RFP.Key features:Outer harbour is all finger docks or side on mooringsSlip orientation is primarily East-West.Facilitates access given our prevailing windsHarbour is protected by a floating wave attenuatorBuilding are in redWaterlot is outlined in red
This layout was received from one of the suppliers as a result of the RFPNote the 4 sections of wave attenuators on the south side.Note the approximate extent of the water lot
This layout includes a “hockey stick” styled wave attenuators for more east wind protectionThe length of the ‘hockey blade’ varies from zero to completeEast facing attenuator may be of lesser proportion that the south facing attenuator- Engineering and design phase would finalize these details.
Here is a sample wave attenuator from a potential supplier.Anchored in place, Hollow concreteKeel extension below the waterlineNote the calming effect on the water in the top picture.
The following are sample finger docks from some of our potential suppliersThe details of these will be finalized once the second RFP is issued based on the final design plan.
[ Parking doesn’t really fit here ]As we progress through the timeline, we get a better idea on what construction will be required at the clubWe will have to alter haulout details to account for potential construction on the breakwallElectrical system may disrupt area around the club, and possibly leading to the finger docksIn addition to the impact of construction, an ongoing issue will be parking availabilityWe are actively exploring solutions from:Optimization of KYC parking facilitiesEnsuring adequate carts to load/unload boats andExploring nearby offsite parking options
- So the big question is how much will this cost.I’ve noted here that that financial plan we have in place is a “Self Sustaining model”This is a key point to that term is that “we do not want to impact existing Club operations”
This is a high level project budgetBuilt from estimates based on initial RFP responses.We did see a significant price range from suppliers, but our evaluation of the proposals leaves us confident that we can deliver at or less than this budget.Our expectation is that the complete project to come in between 1.3M and 1.5M1.6M has been used to allow for a $100K contingencyThe Financing is based on this maximum but we would work to keep this project under budgetHow will we fund this amount?
Ok, that seems like large amount of money, how do we fund this.Once again, our budgeting and model are based on being able to fund this through new revenuesDownpaymentWould use $100K of the Clubs capital reserves ($250K)The remainder of the downpayment come from a RDDI’ll talk about this in more details laterRemainder of would be a loan of $1.37MAs alluded to earlier, we have gone through the appraisal process andnegotiated with the banks and have effectively been “pre-approved” for more than this amount ($2.2M from property appraisal 2012?)We believe 5% is conservative, and expect less, but we are using this for budgeting purposes.That leaves us with the question of servicing this debt going forward.?Debt ServicingNew moorings Lesser contributions from:50% of incremental membership revenuesSome accounting for increased winter storageModest up-take on electrical serviceNotes:Debt Servicing is ~$88K= 64+15+15 = $94K (surplus of $6K)The next few slide will cover other details of our proposal that related to membership and fees.
We need to provide sufficient funds for our down payment as well as reduce our debt servicing costsWhat we’re proposing is as follows:Deposit is paid the first time you are assigned a mooring (or when you boat changes)This maintains our original loan down payment.The following table is an example of how we might structure this feeNext I would like to talk about our mooring fee structure---------------------------------------------Exact mechanism to be finalized. Per foot might be ok.Notes:Common funding mechanism by other clubs to support harbour redevelopmentNational,Minico, Etobicoke, PCYC, Whitby, FBYC, Brockville
As part of moving to a primarily finger dock harbour we feel we need to simplify our fee structure to beCompetitiveFair representation of costsMed mooring would remain approximately on par with the current formula at least the average wouldboats that are 10% over and above the 3% average we will split their increase over 2 years. That would only be 5 boats: Lou Franchi, Jennifer Ruddy, Mary Wilson, Ralph Shaw plus Tim Garrett.Projected POH $64Kingston Marina $56Collins Bay $57
Here we talk about the proposed fee and provide an exampleEstimated for 2014Example uses current formula including multiplier for total then divided by the LOA to give a comparable price by foot – also includes Bob’s figures with a 2% increase Think we should also state that there are 4 boats that go up more than 10% above the average and we will be spreading their increases over 2 years.boats that are 10% over and above the 3% average we will split their increase over 2 years. That would only be 5 boats: Lou Franchi, Jennifer Ruddy, Mary Wilson, Ralph Shaw plus Tim Garrett.
This presentation is not purely about the harbour expansion and upgrades, it is also about membershipRetentiongrowthWith that in mind, we are proposing the introduction of Entrance fees.There are a few motivation factors behind this decisionMembership turnover averages to 60+ people each yearEvidence from other clubs indicates that entrance fees do help with member retentionSignificant majority of Club on the Lake include entrance fees.KYC is more of an exception.The introduction of entrance fees would provide a powerful incentive for our marketing campaign to fill the harbourMarch 2014 would be the introduction time, and new boat owners would sign up before thenBook value of the club is about $3300 per voting member, this is then a wayto new members to catch up to the investment current members already have in the club.How would entrance fees work?Would not apply to existing members
That concludes our presentationPlease remember that this is our proposal and a proposal that we think is viable, butWe want your feedbackNext we will take questions, but first let me tell you how to provide feedback, and keep up to date on materialWe want as much feedback as is possible – please help us to see all the angles of this project from a membership perspective