Board of Trustees Meeting of February 13, 2006

A regular meeting of the Board of Trustees was held in the Clubhouse on February 13, 2006.  All Board Members and Flag Officers were present with the excused exception of Captains David Richdale and Mike Shannon, plus V/C Bob Yates.  Others present included Captains Ed Hedges, Ed Jennerich, Bob Gunderson, and John Rogers.

CALL TO ORDER:  A quorum being present, Chairman Stone called the meeting to order at 1900 hours.
   
MINUTES OF THE PREVIOUS MEETING:  The minutes of the previous meeting of January 9, 2006, were approved as distributed by email.

MEMBERSHIP REPORT:    Captain Ed Jennerich reported that there are currently 372 members in the club.  Applications from Kevin Pantzar, Donald Johnson, John Blystone, Lawrence Dubia, and Chris Benson were presented.  The Board approved all five applications.

A recommendation has been forwarded to the Planning and Finance Committee to hold a Special Retreat of the club membership at which time ideas will be solicited regarding the club’s strategic planning for the future.  Questions to be addressed include, what kind of new members do we want, what kind of club should we be (eg social, cruising, etc), and should we have a junior membership program?  The retreat is scheduled for March 26.

TREASURER’S REPORT: 

Captain Steve Farber reviewed the budget (ATTACHMENT #1).  Overall, the budget is favorable.  Rental income is up but this is misleading because it includes deposits for events yet to be held.  There are 16 members and 5 advertisers who are delinquent in payment of fees.  These people will be contacted by members of the Board and told that a late fee will be charged if >45 days has elapsed, and that expulsion from the club is possible if the member is in arrears for >90 days.  There are currently $280,000 in T-Bills which mature on a rotating basis at monthly intervals.  The intention is to continue to purchase more T-Bills in the future and to decrease the Contingency Reserve Fund Money Market Account because of a higher interest return and greater safety.

PLANNING AND FINANCE COMMITTEE REPORT:  No report

BOARD CHAIRMAN’S REPORT:  Two major issues were addressed.

Audit Committee:  About 95% of club financial transactions have a good paper audit trail.  However, there are several activities which involve cash transactions and which are not easily amenable to an audit.  These include the bar, ship’s stores, and special events.  A proposal was submitted to the Board for formation of an Audit Committee (ATTACHMENT #2).  Captain Bob Gundersen reviewed the proposal.  Formation of this committee would (a) elevate the importance of the Board in oversight of club finances, and (b) would ensure adherence to Policies and Procedures as leadership of the club changes.  The Board strongly favored the proposal and further recommended that the Rear Commodore be a member of the Audit Committee.  This would allow for liaison with The Bridge and would offer a good opportunity for a new member of The Bridge to become familiar with the club’s financial operations.  It was M/S/C that the submitted proposal be adopted with the amendment that it be clear that the Audit Committee report to the Board and that the R/C be a member of the committee.  Members of the Audit Committee were then appointed and included R/C Bill McGillin, P/C Jeff Ewell, and Captains Bob Gunderson and Dennis Okamoto.

Cash Management:  Captain Bob Gundersen is drafting Policies and Procedures for activities that involve cash transactions.  Last year the bar had $24,000 in cash revenues, and the Ship’s Store had sales of $8,800 (although some were with credit cards).  R/C McGillin noted that QCYC has a financial operation that is different from most similar clubs.  He recommended that QCYC move toward a “cashless” system.  The Board agreed and favors moving ahead with consideration of this proposal.

COMMODORE’S REPORT:  Commodore Grimm reported on the following issues:

Regarding the budget, it was noted that advertising revenue for the Bilge Pump is down, expenses for purchase of monogrammed QCYC glasses are expected to be recouped when they are sold, trophies have been purchased, and revenue from the bar is down.  It is unclear why bar revenue is down since event attendance is up.

The Capital budget is on target.  The new crane has been installed.  The security system has been more costly than anticipated and expenditures in other areas will be reduced to cover this.  The new TV was more costly than expected – the difference will be made up by donations from members.  Although $11,000 additional funds have been approved for dock renovation, this is still approximately $4,000 short of actual costs.  Commodore Grimm would prefer to wait on resolution of this issue until later.

Installation of fire vents for the docks will begin in March.  There is concern that the existing roofing materials may not be salvageable.  Options to deal with this potential problem are being explored.

Good news has been received regarding milfoil.  It is anticipated that QCYC will receive a permit good for 5 years to utilize chemical treatments.

Two temporary employees are being hired for the office.  One person to handle the telephone and routine office tasks, the other person to assist the treasurer.

VICE COMMODORE’S REPORT:   No report.

REAR COMMODORE’S REPORT:   R/C McGillin reported that the post and chain project is nearly completed.

OLD BUSINESS:  Formation of a Rental Committee is moving forward.  Captain Peter Anderson has submitted a draft of Bylaws changes that will included policies and procedures for use of club facilities by non-members.  The draft is being reviewed by The Bridge.

Chairman Gary Stone reports he is still working on insurance issues relevant to trophies stored in club facilities.

NEW BUSINESS:   None

MEMBERS COMMENTS:   None.

ADJOURNMENT:  The meeting was adjourned at 21:05 hours.

Respectfully submitted,


Bruce F. Cullen, M.D.
Secretary