[Board-2017] Fee increases?

[Justin Gray]

I did find out what the Wentworth charges for a dinghy.  Don’t fall out of your chair:  $3500/season

Justin Gray
President
PromoCentric, LLC
5 Forbes Road, Newmarket, NH 03857
Direct: (603) 758-7202
jgray at promocentric.com<mailto:jgray at promocentric.com>
promocentric.com<http://www.promocentric.com/>
http://promocentric.brandedpromotions.com/
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From: Justin Gray
Sent: Thursday, November 10, 2016 9:34 AM
To: Board of Directors <board at portsmouthyc.org>
Subject: RE: Fee increases?

Hi Roy - I do not know what KPYC charges but we should find out.

My reasoning is not based on percentages, but what’s current and reasonable.  As the clubhouse and facilities get older and needs more work, we will need to raise more capital.  I may have been reading between the lines a bit much, but it sounded to me like Doyle may have been suggesting we review and increase these rates.

Lockers - Whether it is $30 or $50 for a locker it’s a no-brainer for those that wish to store their liquor.  I look at it as a convenience fee.

Dinghy – I have no point of reference for this and have no idea what other marinas charge.  Either way I figured that $200 to store a boat for the summer is cheap money.  With that said perhaps laddering in the increases makes more sense – perhaps we go to $100.

Launch – I suggested an increase to $150 or $200.  I also suggested that we determine what is a reasonable charge for as round-trip fee and then try to determine the average (or even high average) number of launch round trips per year per user and then do the match to figure what the fees should be.  Either way, $100 seems way too low, $150 or $200 seems reasonable given the cost of maintenance, labor and new launches should we ever need one.  I think that we must assume that the average launch user uses it at least 15 times/year, and $10 per round trip seems reasonable.

Slips – $60 is too low, and I say this as a slip tenant.  The Wentworth charges $190 and I believe BG’s and Witch Cove are both in the $140-150 range.  If someone has a 25’ slip the rate goes from $1500 to $1875.  Compare that to $140/$3500 or $190/$4750.  Again, a reasonable increase and still lower-than-market rate.

Moorings – again for me, I have no point of reference and I am guessing my suggested increase is far too high.  Maybe we increase more moderately to $1500-1600

Sorry I can’t be there this evening.  You only turn 7 once!



Justin Gray

From: Board [mailto:board-bounces at portsmouthyc.org] On Behalf Of Roy Briscoe
Sent: Thursday, November 10, 2016 8:26 AM
To: Board of Directors <board at portsmouthyc.org<mailto:board at portsmouthyc.org>>
Subject: [Board-2017] Fee increases?


Justin,



Can you give us your reasons for such a large increase in the fees?

We are a non-profit and we currently take in a lot more money than we spend and have a large amount of money in the bank. I agree some of the fees should increase, but I think moderate increases in fees will be more acceptable to the members and it keeps the club affordable.  Does anyone know what KPYC charges for their dinghy dock and moorings?



Locker $30 to $50  66% increase

Dinghy $70 to $200  185% increase

Launch 100 to $200 100% increase

Slips $60 to $75 25% increase

Moorings $1400 to $2000 42% increase



Currently a person with their own mooring, launch, dinghy dock and a locker is spending $850, that fee would now go up to $1,100 or a 29% increase.



Roy



Sent from Outlook<http://aka.ms/weboutlook>

________________________________
From: Board <board-bounces at portsmouthyc.org<mailto:board-bounces at portsmouthyc.org>> on behalf of Justin Gray <jgray at promocentric.com<mailto:jgray at promocentric.com>>
Sent: Thursday, November 10, 2016 3:07 AM
To: Board of Directors
Subject: Re: [Board-2017] Agreements for review


Hi Doyle – would you mind sending out a copy of the P&L via email please?



Since I cannot make the meeting I will give my 2 cents via email:



In general I feel that the agreements appear to be fine, with the exception of the launch agreement.  If they all have not been reviewed by an attorney in over 5 years, perhaps we should have them reviewed by one.



As far as the launch agreement is concerned, I believe item 5 (due date) should be similar in language to the other agreements.



It currently reads:



5. The Launch User must pay the fee and provide PYC with a signed copy of this Launch Agreement on or before the first date on which the Launch User wants to use the launch, but no later than June 1, 2017.



Maybe edit it to:



5. The Launch User must pay the fee and provide PYC with a signed copy of this Launch Agreement before docks in.  Launch fees must be paid prior to utilizing the launch services.



I also feel that item 6 (usage) requires judgement that could lead to issues and should be removed:



6. The fee covers a reasonable amount of use of the launch. The PYC Board of Directors may revoke a member’s right to use the launch if the Board deems a member’s use excessive.



In general, I think we should figure out what is reasonable or average and charge all accordingly.



Example – if a ride should be $10 per round trip and the average person uses the launch 15 times/year, the fee should be increased to $150 for all.  Either way, $100 bucks seems cheap.



My thought on fees:



Locker $30, last raised in 2004 – Raise to $50

Dinghy $70, unchanged since at least 2002 – Raise to $200

Launch $100, also unchanged since at least 2002 – Raise to $150-200

Slip $60 per foot since 2006 – Raise to $75 (seems cheap compared to the Wentworth at $178 and BG’s and Witch Cove at $150-ish

Mooring $1400 since 2006 – I have no reference points,  but $2000 seems reasonable





Justin Gray

President

PromoCentric, LLC

5 Forbes Road, Newmarket, NH 03857

Direct: (603) 758-7202

jgray at promocentric.com<mailto:jgray at promocentric.com>

promocentric.com<http://www.promocentric.com/>

http://promocentric.brandedpromotions.com/

Twitter<https://twitter.com/PromoCentric> | Facebook<http://www.facebook.com/PromoCentric> | LinkedIn<https://www.linkedin.com/company/promocentric-inc.> | Google+<https://plus.google.com/u/0/b/108439655135730772094/108439655135730772094/posts> | YouTube<https://www.youtube.com/channel/UCTqGyoPUBzvMqKtZ7-CqqTA>



From: Board [mailto:board-bounces at portsmouthyc.org] On Behalf Of stardot at comcast.net<mailto:stardot at comcast.net>
Sent: Wednesday, November 9, 2016 2:25 PM
To: Directors, Board <board at portsmouthyc.org<mailto:board at portsmouthyc.org>>
Subject: [Board-2017] Agreements for review



All -

I want to give you a little time in advance to think about a couple of important topics. In my Treasurer's Report at tomorrow's Board Meeting, I am going to ask for input on any changes to the existing Agreements we send to members who have dinghies, slips, moorings or who use the launch for the season. If you can, please look over these agreements and let me know if you think any of them need to be modified.



Also, I am going to ask if the Board would like to approve an increase in any of the fees we charge annually. The membership fee and membership application fees are set by the constitution, but fees for lockers, dinghy dock space, slips, moorings and seasonal launch use are set by the Board. The fees currently are:

Locker $30, last raised in 2004

Dinghy $70, unchanged since at least 2002

Launch $100, also unchanged since at least 2002

Slip $60 per foot since 2006

Mooring $1400 since 2006



All of these, especially the launch, are serious bargains. After 10 or 15 years with no fee increases, it might be time to think about bringing some of them up closer to market value. I know fee increases are contentious and generally unpopular, but please think about it and plan to discuss them tomorrow.



Thank you,

Doyle





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