CBYC Cathedral Bluffs Yacht Club
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1 CBYC Cathedral Bluffs Yacht Club Report: THE IMPLICATIONS OF ACCEPTING LARGER BOATS AT CBYC Prepared for: CATHEDRAL BLUFFS YACHT CLUB 2009 / 2010 BOARD OF DIRECTORS Submitted by: THE STRATEGIC PLANNING COMMITTEE Committee Chair: John Agnew Committee Members: Pamela Dixon Brian Knoll Dave Marchant Steve Pilling Meg West Board Liaison: Wally Shaw January
2 I. INTRODUCTION AND HIGHLIGHTS At the request of the Board, the Strategic Planning Committee has reviewed our physical capacity for accepting larger boats The Board s direction to the committee was: Priority is to be given to considering larger boats with a variable fee structure, navigation room, land storage and the phasing out of grandfathering. Reducing the number of boats to accommodate more larger boats can be considered, fee structures need to be adjusted to properly fund the Club s activities. The planning committee should review other club and marina fees, to keep our fees in line. Smaller boats do not need to get lower fees. The A dock washroom is not a priority for this year, but should be considered if time permits. To make recommendations on how to present recommendations to the membership. An earlier (December 2005) planning committee report also looked at both winter storage and summer dockage. A copy of that report is included as Appendix A should be read in conjunction with this report. Early in our review the Treasurer and Membership Director met with the committee to provide their input on accommodating larger boats. Highlights The committee s main findings and recommendations are given below. Navigation room is available A number of new large boat slips can be created by using: The end of B-Dock slips facing open water The end of C-Dock slips facing open water The C-Dock slips facing D-Dock The E-Dock slips facing D-Dock The ends of E-Dock and F-Dock 2
3 The H-Dock slips facing open water The I-Dock slips facing the Clubhouse There would need to be major cultural changes within the Club, including bylaw and rule changes To use these slips, Members would need to be displaced. The current grandfathering provisions would not apply any more Construction would be required Driving piles and extending or rebuilding dock fingers be required and would incur construction costs A two-tier (or more) fee structure would be required To be fair to the majority of our existing members, those who benefit should pay the costs and make up revenue shortfalls from reducing the number of standard boats to accommodate large boats. Again, to be fair, this would have to also apply to current members with large boats Members would not be treated identically any more Our current fees would still apply to members who do not have large boats. But, new or current members with large boats would need to be charged more, enough to make up for construction costs and / or smaller boat displacement. Creates a shortage of intermediate docks Converting Intermediate docks to the maximum number of large docks would leave no inventory for current or new members to move up to intermediate boats. Higher Large Boat fees would make CBYC less competitive than we are now Especially on our island in relation to BPYC and HYC 3
4 II WATER AND LAND BASED INVENTORY ISSUES A GOOGLE MAP of CBYC was used to show our docks and winter storage layout The next page shows a chart of the Club s docks and winter storage layout, taken from Google Earth. Depth measurements were done with a lead line from the end of each finger. Channel depths are the readings from Dave Marchant s boat s depth sounder and are subject to weed and bottom conditions. The measurements were taken on June 14, At that time the water level was 3.5 feet above chart datum of feet above sea level and.7 feet above the long-term average for that day. By October, levels had dropped 2 feet to the long-term average for that time of year. So, in terms of useable depth at Haulout, all depth readings on the chart should be reduced by two feet. Boat and Dock Inventory Review A boat and dock inventory review was conducted and in conjunction with the above depth and navigation review it was determined that we have space within our water lot to add more large boats. The inventories were tabulated using the Haulout Database and the Dock Master s Dock Database as at November 1, Dimensions for each type of boat used were as defined in the Club Rules based on TLOA. For turning circle calculations the Club Policy was used - main dock to main dock distance in feet divided by 3.5 equals maximum allowable boat length in feet. This was approached on the basis that members would be moved as required, (i.e. no Grandfathering). The Club currently has 33 Large boats and 33 Large boat docks. There is one additional large boat dock available on the shorewall at C dock if the standard boat on the first outboard finger is moved. 4
5 Chart of the Club s docks and winter storage 5
6 The Club also has 49 useable Intermediate docks and 34 Intermediate boats. Of the 49 Intermediate docks, 22 of those could be made Large boat docks by sterilizing the adjacent infill slip. Seven of those slips however are required for current intermediate boats leaving 15 slips that could be converted to Large boat docks plus the additional shorewall dock. Eighteen members boats would need to be moved to first put the appropriate sized boats in the appropriate sized docks. Approximately 40 additional members boats would need to be moved to implement the 16 new Large boat docks for a total of approximately 58 dock re-assignments. To convert these slips to large boat docks, piles would need to be driven and the finger docks extended. Given the loss of space due to the sterilization of adjacent slips, it may be more effective to select an entire side of a dock and remove the current fingers completely. We would then rebuild the fingers at wider spacing thereby accommodating more Large boat docks on the same main dock. This would be considerably more expensive as more than double the construction would be required. Implementing all 16 new Large Boat docks would leave no inventory for current or new members with intermediate sized boats. Our Winter Storage Issues The Google Earth chart clearly shows the Club s winter storage layout. Winter storage capacity was an important part of the December 2005 report to the Board attached as Appendix A. To summarize the report, we defined our useable land storage area based on measurements of the property. The Club must also keep certain driveways and other areas open as fire breaks based on discussions with and inspections by the city and fire department in the early 1990 s. For example, the driveway between boats from A dock to D dock could be backfilled with some boats however other boats would need to be moved to recreate the fire breaks this driveway provides. There would only be a small net gain in number of boats accommodated and it would severely compromise parking in the spring and fall when members need to work on their boats. Areas near the Clubhouse have also been kept open to provide parking when the Clubhouse is in use. We currently use approximately 93 percent of our useable land storage area every year. We believe that we cannot expect 100 percent usage due to cradle layout problems, members not informing the committee they are not hauling out etc. We also have, on average, 12 members who store their vessels offsite and 4 members who store in the water. These 16 members are entitled to winter storage under the bylaws and if all of them requested storage we would not have 6
7 enough land space to accommodate them, even using the above noted driveways and parking areas. Given the shortage of land storage space, similar to the sterilization of docks, we would need to decline at least 2 potential new members with standard sized boats for every new large boat accommodated. That could mean reducing the number of standard boats by 32 to accommodate 16 new large boats. Expanding our winter storage area into the Scarborough Bluffs Sailing Club is not possible The committee, via our board liaison (who is also one of the CBYC representatives of the Bluffers Park Boating Federation), made a request of the commodore of the Scarborough Bluffs Sailing Club as to the possibility of winter storage of our boats on their parking lot. They responded that their membership is at capacity and that they would not have any room for us. Therefore, winter storage is limited to what we can provide using our available space. Accepting boats longer than 50 Feet The Board also asked us to consider if the Club should accept boats longer than 50 feet. The committee reviewed boat for sale advertisements in boating publications and discussed the issue with a prominent GTA sailboat broker. The prime large sailboat market is in the 44 to 46 foot range that we can currently accommodate. These findings suggest that there is very little market in the GTA for boats over 50 feet. There are very few areas in the winter storage layout that could accommodate boats over 50 feet, especially large power boats that require special crane rigging. Accommodating boats of this size could mean displacing 3 standard sized vessels per large boat. 7
8 III. FINANCIAL ISSUES AND FEES In this Chapter, we discuss the competitive situation with regard to CBYC fees. Comparison to other clubs A comparison with other similar clubs in the GTA was undertaken in 2001, updated in 2005 and updated again by this committee in Please refer to Appendix B for the detailed information. As shown in the table for 2009, CBYC is the third least expensive club in the comparison for Regular, Intermediate and Large boats. It is 5 th for small boats. Comparing the 2009 rates for clubs to previous years shows that many (including CBYC) have raised their fees significantly. All except HYC, BPYC and CBYC have increasing fees for increasing boat sizes, based on various formulae. Our closest competition HYC and BPYC, remain considerably less expensive than CBYC and, like us, have one fee for all sizes of boat. There are costs for accommodating larger boats In most cases, we can only accommodate more large boats by reducing the number of smaller boats with the sterilization of slips and land spaces. This leads to reduced revenues (one member not two for the same dock/land space), and additional expenses for construction costs. If our current fee structure were retained, there would be a net loss in our financial position. There would also be an impact on: Crane time, potential for extended crane time to accommodate larger boats Work hours / O. D, reduction of work hours with fewer members Use of power / water, would increase for larger boats. There would be a substantial cost to increase the amount of power to the docks Grandfathering, needing to be phased out Seniority, impacted because members need to be moved to accommodate larger boats, and The sterilization of more docks The above costs can only be recovered if CBYC: Raises the fees for all members, or Charges increased fees for those with Large boats. 8
9 Raising the fees for all members Although our fees are a good value, compared to other clubs, we are still more expensive than our neighbours on our Island. Keeping a common fee, regardless of boat size, would likely result in a major fee increase to cover the costs of having more large boats. The Board should ask why smaller boat owning members would stay when they see little or no personal benefit from this fee increase. More members leaving would only accelerate the Club s financial difficulties. Charging increased fees for those having Large boats This means that the Club would have (at least) two classes of members. Some would be paying the current fees. Large boat owners would be paying more This in itself raises a number of issues: How much more would need to be paid for fees, initiation and restaurant tickets? How much would work hours and O.D.duty need to be increased? Would current large boat owners be subject to the same rules as new large boat owners? Large boat fees need to increase at least 2.5 times We have not done an in-depth analysis of these potential increases. Based on allowing one large boat into the Club by displacing two smaller boats, we would need double the fees and other commitments to break even. Allowing for at least some needed construction; a multiple of at least two and one-half times would likely be required to break even. Our current annual fee is $1, Assuming large boats are charged 2.5 times more, the large boat fee would be $4, This is less than NYC and PCYC, but more than WYC, EYC, MCC and QCYC. It is well above our island competition. To be fair to the new members, we should pass on these same increases to all current large boat owners. Large boat initiation would also need to double If we need to decline 2 new standard boats for each new large boat, we would also have to double the initiation to maintain the same revenue. 9
10 IV. CHANGES WOULD BE REQUIRED TO CURRENT BYLAWS Bylaw 17.2 ACTIVE SENIOR MEMBERSHIP Unless occupying a dock with specific conditions agreed to in writing by the member, no member who has been assigned a dock shall be moved from that dock without his consent. This Bylaw would need to be revoked and replaced as a Bylaw or a Rule similar to the following old Rule ( version ); A membership shall only be reassigned to another docks space by the Harbour Master for valid reasons. If the membership objects, they may appeal to the Board of Directors, whose decision shall be final. Bylaw 19.1 Determination of Fees and charges All charges and fees shall be related to the Club s cost of providing the facilities and services used by the Memberships. This bylaw clearly sets out that fees are to be based on what it costs the Club to provide Members with the facilities and services they share. Our fees are currently established by determining the expenses for the year and dividing by the number of Senior Members. Fees cannot be set arbitrarily Many costs cannot be attributed to a vessel and are divided equally among members. This includes, for example, Clubhouse expenses under the Vice- Commodore as well as expenses under the Treasurer, Secretary, Fleet Captain, Communications, Social and Safety Directors. This is most clearly displayed in the fee for second boats. A member who has a second boat in a vacant slip pays less than a second full Senior Member fee as they are not benefiting from using twice the clubhouse, social functions or other services. If a new large boat dock user is displacing two standard boat members, and is therefore required to pay more than double to offset the revenue loss from those two members, then this bylaw would need to be revoked. 10
11 V. RECOMMENDATIONS We reviewed the implications of changing our physical plant to accommodate more large boats. We also reviewed our revenue models to reflect the associated costs. Our findings indicate that focusing on accepting more large boats would not be a successful approach to increase the Club s net revenues. It would also be a difficult cultural change for the Club s membership. We believe other approaches should be reviewed that may increase net revenues without major changes at the Club. These include: Use slips suitable for big boats as they become available (at no cost). Concentrate on filling currently available space by: Actively pursuing small boat owners Modifying initiation to charge by boat size Deferring some initiation until winter storage confirmed 11
12 APPENDIX A - PRIOR REPORT (DECEMBER 2005) CBYC Cathedral Bluffs Yacht Club Report: CBYC CLUB CAPACITY ANALYSIS WINTER LAND STORAGE AND SUMMER DOCK STORAGE Prepared for: CATHEDRAL BLUFFS YACHT CLUB 2005 / 2006 BOARD OF DIRECTORS Submitted by: THE STRATEGIC PLANNING COMMITTEE Committee Chair: John Agnew Committee Members: Pamela Dixon Tim Janssen Brian Knoll Dave Marchant Steve Pilling Meg West Board Liaison: Geoff Milburn December
13 Introduction At the request of the Board, the Strategic Planning Committee, with the assistance of the Rear Commodore, reviewed our physical capacity. One of the objectives was to provide information to assist in determining the maximum number of members we can accommodate and assist the Marketing Committee going forward. Winter Storage Background Over the last fifteen years the Club has made many changes by the Board, (Rules), and the Membership, (Bylaws), in an effort to meet the needs of the members. Most of these had, have or will have down the road consequences, which may or may not have been worked through at the time. In the fall of 1990, faced with a membership count of 260, a wait list, members buying bigger boats, and site storage issues such as fire department concerns, a bylaw amendment was proposed that members may not be entitled to onproperty winter storage. This amendment was soundly defeated as unfair to the members with lower seniority who may incur charges of between $ 1,000 and $ 2,000 to store at the marina or elsewhere. Also that fall the Board implemented rules capping boat sizes at 35 TLOA by 11 6 beam unless they qualified for a large boat dock. This prohibited new CS 36 s, Nonsuch 30 s, and many 30ish foot powerboats with wide beams from the Club. In subsequent years when the Club was no longer full these rules (and/or related bylaws) were rescinded. Since that time, 44 members have joined or moved up to boats over that size range and 16 have joined or moved up to large boats. If we had not made changes to meet member s needs we could have 44 fewer members today. In addition, the Haulout & Launch Committee site layout people have attempted to improve our winter storage. We have added fire breaks to appease the fire department and in about 50 % of the winter storage areas, we have tried to increase the distance between boats from a 2 foot average to between 2 6 and 3 foot average to give members more room to work on their boats. (This distance is sometimes not the net result due to errors or improper cradle placement.) This means that in some areas, for every 14 boats we have lost a winter storage space for a 40 X 12-foot boat. We have also tried to keep a reasonable area in front of the Clubhouse for parking. Page 13
14 Analysis Due to the ability to have boats overhang our berms, and the nesting of vessel bows when placed on their cradles, the length of boats is not the main capacity issue with winter storage. The available Beam Width is the limiting factor. Using a number of measuring techniques we have determined that the Maximum Beam Storage Space to be 2,900 linear beam feet. (This matches our current layout design by not allowing boats to be stored in the parking area directly in front of the Clubhouse, the fire route down past the hydrant and around the front of the Clubhouse, and the current firebreak layout.) It would not be prudent to assume we can use this space at 100 % efficiency due to errors, improper cradle placement etc. Assigning a 95% efficiency reduces this number to 2,755 linear beam feet. From the attached table, APPENDIX A1, using an average boat spacing of 2.5 feet you will note; We have 226 boats at the Club of which 8 are second boats which represents 218 Senior Members (as at October 20, 2005) We hauled 195 primary vessels totalling 2,568 beam feet We hauled 6 second boats totalling 57 beam feet We accommodated 7 vessels on trailers totalling 68 beam feet This subtotals to an accommodated 2,692 beam feet We know with our current layout we can accommodate a few more boats, which brings us into the range of our maximum useable space at 95 % efficiency of 2,755. Also from the table; We did not store 12 members primary vessels totalling 160 beam feet who stored their boats offsite We did not store 4 members primary vessels totalling 52 beam feet who stored their boats in the water We did not store 2 members second vessels totalling 29 beam feet who stored their boats offsite The total number of vessels currently at CBYC with an average spacing of 2.5 feet require 2,933 beam feet of space This exceeds even our total available area at 100 % efficiency Reducing the average spacing between vessels to only 2 feet and eliminating second boat winter storage would still require 2,738 linear beam feet of space, very close to our 95 % efficiency if all members hauled out (the bylaws specify we must provide winter storage for senior members) Page 14
15 There is space for additional small boats on trailers as the trailer gives us the flexibility to place these boats after haulout in any available spaces or errors in layout. As noted above we could eliminate second boats and place the boats closer together but we would not pick up that much additional capacity. We could place some boats in front of the Clubhouse and further in fill driveways but would not meet the Fire Department s requirements. At our Strategic Planning Workshop held in November 2004, the general consensus was that intermediate and large docks should primarily be used for members wanting to move up as opposed to attracting new members. As boat sizes do trend upward, any additional capacity would be used in the future. Summer Dockage Background Since 1992 we have created seven new large boat docks bringing the total in the Club to 31 from the original 16. (The ends of E and F had also been designated large when they become vacant for a total of 33.) In the same time frame we also created the intermediate dock concept to allow for example CS 36 s or 12 foot plus beam powerboats in the Club without taking up a large boat dock. Small beam in fill boats have been put in the adjacent water area where possible. Over time, due to the difference in the distance between fingers, some boats have been placed where the available adjacent beam is less than 8 feet, effectively sterilizing the slip. Analysis We have approximately 30 standard boat docks available but not all of them are useable due to shallow draft etc. There are currently 4 intermediate docks available that can accommodate boats up to 11 feet 6 inch beam. There are no large boat docks available and one member owns a large boat and is waiting for a permanent slip, (their large boat is currently listed as their second boat and was not winter stored at the Club). From a dockage point of view we are currently at 87 % capacity. A 2001 survey by the Council of Commodores indicated that across Toronto clubs and marinas were at an average of 86 % capacity. There are currently only 4 sterilized slips, (out of a total of 261). This has led to a few complaints that these boats occupy 2 slips and should pay more. Moving Page 15
16 these vessels to other available intermediate slips would create more small boat slips, which we have an excess of, at the expense of other intermediate slips which are in short supply. New Members An analysis was also done of the sizes of new members boats that have joined over the last ten years and summary data is provided in Appendix A2. 44 percent of new members had boats less than 30 feet 35 percent of new members had boats 30 feet or longer but less than 35 feet 21 percent of new members had intermediate or large boats (35 feet and longer) Summary While there are intermediate and small boat docks available we are basically at capacity for winter storage. Any member movement upwards in boat size from small vessels to larger standard boats or intermediates by the current membership in the future would use up any additional capacity for winter storage. Marketing Comments The Marketing Committee s goal would have to change from simply attracting any new member to attracting members to replace resigning members with boats that fit. For example, a member with a CS36 resigns in Sept 06, we then look for a new member with a similar or smaller sized boat for the coming year. Small boats on trailers can be accommodated now and could be a marketing focus. Our annual fees do not appear to be an issue based on the relatively high percentage of small boats that have and continue to join the Club. Perhaps an initiation fee reduction (boat show special) may be warranted to encourage this size of boat, i.e. under 25 foot and on a trailer. We may need to create a waiting list for new members with boats over 30 feet. This could encourage demand people want what they can t have. A higher initiation fee may be warranted for these larger boats e.g. $ 2, This could tie in with previous discussions about altering the equity/initiation relationship. We need to communicate to the membership and to prospective members that we are full and a membership cap may be implemented. Page 16
17 APPENDIX A1 APPENDIX A Haulout Vessel Beam Width Required Total Vessels 226 Number Total Total Total Beam Feet Beam Feet Beam Feet w/2' space w/2.5' space Hauled Boats 195 2,080 2,470 2,568 2nd Boat Trailered Stored Sub Totals Offsite In Water nd Boat Club Totals Notes: 1. Maximum Measured Storage Space 2,900 linear beam feet 2. At 95 % efficiency this would drop to 2,755 linear beam feet Page 17
18 APPENDIX A2 APPENDIX A2 CBYC New Members Boat Sizes 1995 to Total New Members Boat Show Special No Yes Yes Yes Yes Boat Size Under 30 feet Boat Size 30 but < feet Boat Size over 35 feet unknown Total New Members Boat Show Special No No No No Yes Boat Size Under 30 feet Boat Size 30 but < feet Boat Size over 35 feet Note: While not indicated on this chart, 50 boats or 31 %, were 27 feet or less. Page 18
19 APPENDIX B - Comparison of Similar Club Fees, 2001, 2005 and 2009 Small 25 X Rank Club Total Fee Rank Total Fee Rank Total Fee HYC $1, $ $ BPYC $1, $1, $1, WYC $1, $1, $ LSYC $1, $1, $1, Add winter FBYC $1, $1, $1, CBYC $1, $1, $1, EYC $1, $1, $1, MCC $1, $1, $1, ABYC $2, $1, $1, QCYC $2, $2, $2, NYC $2, $2, $2, PCYC $4, $3, $3, Regular 32 X % Change Page 19 % Change Rank Club Total Fee Rank Total Fee 05 to 09 Rank Total Fee 01 to 05 1 HYC $1, $ % 1 $ % 2 BPYC $1, $1, % 3 $1, % 3 CBYC $1, $1, % 4 $1, % 4 FBYC $1, $2, % 2 $ % 5 WYC $1, $1, % 5 $1, % 6 EYC $2, $1, % 6 $1, % 7 LSYC $2, $2, % 7 $1, % 8 MCC $2, $2, % 8 $1, % 9 ABYC $2, $2, % 9 $2, % 10 QCYC $2, $2, % 10 $2, % 11 NYC $3, $2, % 11 $2, % 12 PCYC $5, $4, % 12 $3, % 10.50% 14.23%
20 Intermediate 37 X Rank Club Total Fee Rank Club Total Fee Rank Total Fee 1 HYC $1, HYC $ $ BPYC $1, BPYC $1, $1, CBYC $1, CBYC $1, $1, FBYC $1, FBYC $2, $ WYC $2, WYC $1, $1, EYC $2, EYC $1, $2, MCC $2, MCC $2, $2, LSYC $2, LSYC $2, $2, QCYC $2, QCYC $2, $2, ABYC $3, ABYC $2, $2, NYC $3, NYC $3, $2, PCYC $5, Large 45 X Rank Club Total Fee Rank Club Total Fee Rank Total Fee 1 HYC $1, HYC $ $ BPYC $1, BPYC $1, $1, CBYC $1, CBYC $1, $1, WYC $2, WYC $2, $1, EYC $2, EYC $2, $2, MCC $3, QCYC $3, NYC $5, PCYC $6, FBYC Page 20
21 Equity/Initiation Initiation Equity ABYC $4,000 $3,000 $3,000 $0 $0 $0 BPYC $0 $0? $3,500 CBYC $3,800 $0 $1,000 $0 $2,800 $2,800 EYC $2,000? $1,017 $4,800? $2,461 FBYC $1,000 $1,000 $1,000 $1,000 $1,200 $350 HYC $830 $0 $0 $3,170 $4,000 $3,500 LSYC $1,000 $1,000 $1,000 $2,000 $2,000 $2,000 MCC $3,287 $2,920 $2,835 $3,000 $3,000 $2,500 NYC $2,000 $2,000 $1,000 $7,000 $6,000 $6,000 PCYC* $4,000 $3,500 $3,500 $0 $0 QCYC* $2,100 $3,000 $2,000 $0 $0 $0 WYC * $3,500 $0 $0 $1,500 $3,500 $3,500 * QCYC Initiation for boat less than 28 feet long is $ 1200 * WYC now has a $ 1,500 refundable debenture and a Non refundable "Equity" of $ 3500 *PCYC no equity payment Page 21
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