2012Extra Ordinary General Meeting: Briefing Note
1. Aims and Objectives
1.1 The principle aim of the EGM is to propose a simplified fee structure combining membership and use of club assets.
1.2 In reviewing this, there are a number of recommendations for amendments to the clubs constitution.
2. Financial assumptions
2.1 Estimated annual expenditure;
2.1.1. Fixed costs:
a. Insurance: £1500
b. Electricity £350
c. Admin £200
d. Membership £85
e. Moorings £280
f. Water Rates 0
g. Total £2515
2.1.2. Variable costs
a. Clubhouse £300
b. Club Grounds £300
c. Pico £300
d. Skiff £300
e. Flying Fifteen £300
f. Rib £300
g. Total £1800
2.1.3. This means that the purpose of this exercise we have estimated that the club requires an income of £4315
3. Proposal for Sailing Club fees
3.1 There are two fundamental approaches to setting the fee structure for the sailing club (and a whole range of in between options)
a. A basic membership fee, topped up with extra costs for use of specific assets and facilities.
b. Inclusive membership fees covering use of all assets and facilities accessible to every member.
3.2 The EGM is proposing to shift from the former towards the latter. The inclusive membership will cover all those assets and facilities that are universally accessible to all (assuming sufficient competence). It will exclude fees for facilities that are limited, use of club moorings, overwintering parking of boats.
3.3 The proposal before the EGM will therefore be to decide between.
a. A club fee structure based on existing arrangement (with some increases).
b. An inclusive fee structure
.
3.4 For the inclusive structure, two fee levels are presented, the first would generate slightly more than the current income, the second would give us more and a greater operational margin.
4. Current income Structure
4.1 Membership
4.1.1. From minutes proposal from 2012: New sub by standing order (old sub and cash sum in brackets)
| 2011 | 2012 |
Direct | S/O | Direct | S/O |
Family | £40.0 | £38.5 | £45 | £41.0 |
Single | £29 | £27.5 | £35 | £33.0 |
Senior and Student | £25.0 | £24.0 | £30 | £28.0 |
Day Membership | £5.0 |
| £5.0 |
|
4.2 Use of Flying Fifteens, Skiffs and Picos
| Use of one Asset | Use of one or more asset |
One person | £30 | £45 |
Family | £45 | £60 |
Day fee | £7.5 | £7.5 |
4.3 As an indicator in 2011 (draft accounts) this arrangement produced:
a. £1612 from membership fees,
b. £470 from asset use (Skiff and flying fifteen).
c. Pico income added approx £300 to club funds but asset use was linked in to the training course, which covered its own costs.
d. This note does not examine other sources of income, parking and mooring fees, events and profits from sale of merchandise.
e. This raised £2382 in 2011, and has an estimated potential to raise £2600.
4.4 Points for discussion:
a. This system could generate sufficient funds or the sailing clubs fixed costs.
b. Standing order is great for paying regular subscriptions, but often difficult to get from 1st time members and ‘the absent minded’. Need to accept an element of cash payers. The challenge of collecting membership fees! Based upon draft accounts in 2011 there was an 86% recovery of fees from 2010 members; this could reflect a net loss of members but also recalcitrant or absent minded payers. The latter are the nightmare for any treasurer.
c. While regular asset users paid up, there was not a robust system for collecting money from casual users, including members and non-members alike. Folk report that they found it awkward to ask someone for £7.50 for a quick row in Loki or a drift round in a flying fifteen. This system could be made more rigorous if the club has the appetite for it. There can be no doubt that casual use of assets could be greater.
5. Alternative Income Structure
5.1 This payment adopts the principal that once a membership fee is paid no further payments for using those club assets accessible to all will be due.
5.2 Parking of boats and trailers and dinghies and hire of club moorings is to be maintained as separate. This is because such facilities cannot be guaranteed for all members.
5.3 The Membership Fee Proposal.
Class of Membership | Cost |
Family | With sailing children in full time education | 85 |
With no sailing children | 60 |
Senior | 50 |
Single |
| 45 |
Concessions | Senior, Student, income support | 40 |
Junior |
| 25 |
Honorary |
| 0 |
5.4 The Membership Fee Proposal.
Class of Membership | Cost |
Family | With sailing children in full time education | 90 |
With no sailing children | 65 |
Senior | 55 |
Single |
| 50 |
Concessions | Senior, Student, income support | 40 |
Junior |
| 25 |
Honorary |
| 0 |
5.5 Using the existing membership and fees as a guide, this first proposal would structure will raise just over £2850; 8.5% more. The second would raise £3050; 16% more.
5.6 As a comparison if the membership rates for Chanorary Sailing Club and Lochcarron sailing club are used this would generate £5800 and £3300 respectively! LBSC remains very good value
5.7 No change can be without winners and losers. The current costs are set as a balance.
5.7.1. Examples of the effect of the proposed change (based on the lower figures)
At present some families, with children, all of whose members use all the assets would be paying over £100. The new rate of £85 would see a reduction in £15 p/a.
a. At present families with no children pay £41. If they do not use skiffs or fifteens, the new rate of £60 would see an increase of £19 p/a. This case probably applies mostly for cruising yacht partners. If however they both currently use assets than they would also make a saving of £15p/a
b. Families in which the children only, not their parents, take part in club activities could opt to pay the junior rate. Two junior memberships would cost £50, a saving over the new family rate of £85 and the current family rate plus Pico endorsement of £86.
c. Families with four children, however, would be better off taking out family membership at £85 rather than four junior memberships totalling £120.
d. Families in which one member does not take part in club activities (a retired couple, for example, of whom the husband alone sails) could opt to take out a single 65+ membership for £30, rather than a £60 family membership. There is also a proposal for a senior family rate of £50
e. This proposal will have greatest impact on families who do not currently use the club boats; the main asset of the club is its building and its location; the club remains a comfortable place ashore (getting better) and a secure place for oars and outboards and in the shed other stuff, including deflated dinghies. It is hoped that by introducing the rates for families (no sailing children) and seniors will keep the increase to an acceptable level.
6. Other Sources of Income
6.1 The target would be to raise £1500 per annum through additional activities. These to include:
6.2 Casual Membership (£500)
a. Sticking to the principle of “one fee to join the club, which covers all activities”, casual members, i.e. visitors to Ullapool, holidaymakers, etc would pay a flat fee per day, week, month to be members and use the club and any of its assets. This entitles them to full membership for the period, and covers insurance etc.
b. As with full membership, no further payment would be due however in order to use club assets, a full member must be present, unless clear competence is established.
c. At committee, two rates were discussed £5.00 and £10.00; Most favoured the £10.00
d. Day rates would be used for friends or visitors who want to take part in activities such as flying fifteens, skiffs and picos.
e. Day rates may also be useful to visiting yachts looking for a shore base, though the logistics of load and of keys and security were not really looked explored thoroughly by the committee. This option must be discussed more, should the fee be per person or per boat?
.
6.3 Drinks and Beverages (£300)
a. The new hatch/bar will make it easier to have Tea Coffee biscuits to hand. There is a lockable cupboard for Drink.
b. The club is not licenced and care must be taken as how money for alcohol is collected. The best approach adopts the club tally sheet with a means for settling the account.
6.4 Club Merchandise (£100)
a. Sweatshirts, Burgees etc.
6.5 Yacht and Dinghy Parking (£600)
a. There is probably a limit of between 8 and 10 yachts. Clear rules and fees to be agreed, trailers to be away from the club between May and September. There probably needs to be some sort of ‘grandparent right’ agreed.
b. There will in the next few seasons be more yachts attracted to Ullapool as Harbour Moorings and Services continue to improve.
6.6 Club Moorings (£200)
a. The club has seven moorings for light boats, four reserved for its own boats. An agreed annual rate for rent needs to be set.
6.7 Use of Clubhouse facilities (£450)
a. Ullapool Coastal Rowing and the School have agreed an annual rent for use of the club facilities.
b. Day and casual rates could be agreed for other groups.
6.8 Special activities (£100)
a. Regatta BBQ’s and other social events
6.9 Fundraising
a. Local activities for specific activities.
b. Grants
7. Section Activities
7.1 Individual sections have the option for attracting income to varying degrees; this should strike a balance between supporting the section and contributing to general club funds. It must also be recognised that sailing is not all about fundraising. Although key sections will have a budget of £300, the sections should aim to cover these sums through their own activities.
7.2 Section champions to draft guidance as to competency for using club assets.
7.3 Cruising (John Osborne)
a. Generally encouragement of membership through joining in cruising activities, opportunities for yacht owners renting harbour moorings.
7.4 Flying Fifteens (Adrian Morgan)
a. Casual membership to friends and visitors.
b. Possible options for race fees, some clubs charge a simple entry fee to races.
c. Sail Training – informal or formal with instructor.
7.5 Picos (Paul Driver)
a. Pico training week – surplus
b. additional membership through children attending courses not already club members.
7.6 Skiff (Paul and Kate Copestake)
a. Casual membership to friends and visitors.
7.7 Rib (need a champion)
RYA powerboat level 2 training during Pico week.
8. Constitutional issues for discussion
a. A separate spreadsheet is enclosed showing the current constitution (point by point) alongside the proposed amendments.
b. There are two main drivers; first to update the constitution and second to match the membership to the new proposals.
c. These amendments have not been discussed in detail by the committee, therefore if there is general approval in principal at this EGM the committee will look at them in detail and present them formally for adoption at the AGM.
