1. Long Term Financial Planning
Status Update & Long Term Planning
March 26th , 2014
1896-1996: a vision towards 2046

2.  Strategic plan review
 Harbour project
 Remediation review
 Harbour status
 Fee proposal review
 Survey results
 Moving forward
 Questions & Feedback
Agenda

3. Quick review
 Why did we start looking at expanding the
harbour as our first big project?
 Why are harbour/infrastructure remediation's
NOW being talked about?
 March 2011, Town Hall Meeting ….
Strategic Plan Review

4. Protect our investment
Give the Board Direction
 We need to plan over a longer time cycle than
typical board cycles
Repair our aging infrastructure
Leave the club better they we found it
 Ensure the legacy of KYC
Why do we need a plan?
March 2011

5.  Membership size
 Harbour
 Club House
 Facilities and Services
Main areas of concern
March 2011

6. A phased approach:
1. Ongoing Membership Growth and Retention
2. Dock at Jemmett’s Landing (2012)
3. Fuel Dock (2012)
4. Expand and enhance our Harbour (Spring 201?)
5. Harbour Remediation (future)
6. Saint’s Rest Renovation (future)
7. Clubhouse Renovation (future)
Phased Approach
March 2011

7.  Will provide an immediate growth in high value members
 Make the club more competitive and a viable alternative to
new members
 Provide significantly improved facilities for existing
members
 Based on a self-sustaining financial model
 Resulting membership growth facilitates subsequent
phases in plan
Harbour Project

8. Existing Conditions Report
 Professional evaluation of conditions
Allow for properly engineered solution options
Determine costs for necessary alteration
Required for loan application
 Board requested it be done for the complete harbour, not
just for areas affected by harbour project.
Harbour Project

9. Remediation
 Which aspects relate to Harbour Redevelopment?
 Center Pier (Reach D)
 East End of Breakwater
(portions of Reach A & B)

10. yyy
Condition: East Breakwall

11. yyy
East Breakwall

12. yyy
Sheet Pile (South Club Foundation

13. Centre Pier

14. From the engineer:
“Overall, the centre pier is in very poor condition. Sections
of the crib have collapsed and a loss of stone fill was
observed. Portions of the concrete cap along the lakeside
edges are no longer supported on the stone fill or timber
crib”
“Overall, the steel sheet pile wall is in poor condition”
“The timber crib that extends along the north sides of the
clubhouse is in very poor condition. Portions of the crib
have collapsed resulting in loss of stone fill”
“Overall the north wall is in very poor condition”
Remediation Summary

15. Remaining (as of January)
 Loan application (submitted February)
 Geotechnical analysis
 Completed works appraisal
 Finalize remediation design & engineering
 Finalize electrical design
 Prepare & issue RFP (harbour & remediation)
 Work with membership to establish sustainable fee structure
Harbour Redevelopment Status

16. Loan application prepared for harbour & initial
remediation
 Budgets
 Financial Information
 Business Model
Lender Response
 Club needs to contribute significantly more capital than available
 Club ability to service debt not sufficient under their terms
 Completed works assessment possibly not sufficient
Harbour Redevelopment Status

17. Current Status
 Loan application (rejected)
 Geotechnical analysis (on hold)
 Completed works appraisal (in progress)
 Finalize remediation design & engineering (on hold)
 Finalize electrical design (on hold)
 Prepare & issue RFP (harbour & remediation) (on hold)
 Work with membership to establish sustainable fee structure
(tonight!)
Harbour Redevelopment Status

18. Current Activities
 Evaluation of financial models with respect to fee changes,
membership growth that would enable harbour project,
remediation and remaining capital projects in the future
 Using borrowing parameters from our preferred lender
 Initial Result
 Remediation & harbour could begin in 2 years based on the
proposed fee changes taking effect asap.
Harbour Redevelopment Status

19. Fee Proposal
 Increase membership fees
 25% for 2015
 cost of living after that (~2.5%)
 Capital assessment
 of 16% of membership fees per year
 Grow membership
 Next 5 years:
 Associates by 10% per year
 Other categories by 2% per year

20. Proposed Fees
Type
Fees 2015
(2014 + 2.5%)
Fees 2015
(Required)
Capital
Assessment
(2015)
Family 831 1,000 160
Single 613 738 118
Corporate 1701 2,047 328
Associate 335 404 65
Assoc Nominee 125 151 24
Non Resident 202 243 0
Junior 85 102 0
What should fees look like in 2015?

21. Gauge membership response to Fee proposal
Try to engage as many members as possible
Calling campaign to target Associate members
to respond and participate
Help board develop proposals and make
informed decisions
Survey

22. 155 Responses (42% response rate)
Continuing to collect data
Survey Results
0
20
40
60
80
100
120
140
160
180
Junior Non-Resident Associate Single Family Life
Total
Answered

23. Survey Results (cont.)

24. Survey Results (cont.)

25. Survey Results (cont.)

26. Survey Results (cont.)

27. Survey Results (cont.)

28. Survey Results (cont.)

29. Survey Results (cont.)

30. Survey Results (cont.)

31. Initiation Fees
Club
Membership Fees
(Family & Nominee)
Initiation Fees Percentage
PEYC $463.00 $1,200.00 259.18%
NSC $466.00 $200.00 42.92%
Cobourg YC $533.00
Brockville YC** $567.00 $500.00 88.18%
BQYC $585.00 $100.00 17.09%
EYC $605.00 $2,200.00 363.64%
BHYC $695.00 $750.00 107.91%
Clayton YC $700.00
OYS $710.00 $500.00 70.42%
KYC $810.00
Beaconsfield YC $820.00 $1,140.00 139.02%
Trident YC $944.00 $2,000.00 211.86%
Britannia YC $974.00
RHYC $1,120.00 $500.00 44.64%
MCC $1,256.00 $4,000.00 318.47%
ABYC $1,260.00 $1,500.00 119.05%
BCC $1,325.00 $3,000.00 226.42%
National YC $1,725.00 $2,500.00 144.93%
QCYC $1,855.00 $3,600.00 194.07%
PCYC $2,014.16 $2,500.00 124.12%
RCYC $3,986.94 $11,000.00 275.90%
IYC $4,553.00
80% of Lake Ontario
Club have Initiation
Fees.
Average:
157% of fees

32. Survey Results (cont.)

33. Survey Results (cont.)
0
5
10
15
20
25
30
35
Strongly
disagree
Disagree Neither
agree nor
disagree
Agree Strongly
agree
18-30
31-50
51-70
71+
Q16 The proposed fee increases will significantly deter
members from joining
(by Age)

34. Survey Results (cont.)

35. Survey Results (cont.)

36. 0
5
10
15
20
25
30
35
No Unsure Yes
Associate
Family
Single
Survey Results (cont.)
Q18 If fees are raised as suggested, would you resign
your membership at KYC
(by Membership category)
Associates equally divided

37.  Associates are under-represented at meetings and in
survey
 Support for being proactive in capital planning
 Support for distributing cost across all members
 Proposed Fee?
 Evenly split on whether good value for money
 Price point may be too high or too risky
 Possible loss of members
 Associates more affected than Family or Single members
 No clear mandate from survey results
Conclusion?

38. We are already behind on past due capital investment
(~$4 Million, $8 Million if you include harbour and
clubhouse)
Current finances will not allow us to address harbour
project, current and future maintenance requirements
We will hit a crisis point in the near future where the
club viability will be on the line
What is the choice?

39. Membership Growth
Membership growth is crucial
 Distribute the costs over larger membership base
 Increased activity drives other revenue
Retention
 Ensure we are offering good value
Recruiting

40. What Happens Next?
Problem: Without an plan to increase our revenue, we will be unable to
tackle current and future infrastructure and capital requirements, and
we will not be able to move ahead with the Harbour project.
We need feedback from the membership.
 Survey to solicit feedback.
 2nd Town Hall Meeting: Present feedback and gather more input
 Survey Results Report & Financial Report for members
 3rd Town Hall Meeting: Round table format?
Goal: Membership approval for financial solution to maintain the long
term viability of the club and to be able to move forward with the
harbour project

41. Ongoing Feedback Options
• Survey to be made available shortly.
• E-mail: harbourquestions@kingstonyachtclub.ca
• Web: www.kingstonyachtclub.ca/newharbour
Getting your input