board report

The San Francisco Yacht Club in 2011

Agenda1. Introduction Robert Heller

2. Employee Actions Paul Rosenlund

3. Employee Relations Ray Lynch

4. Financial Review Bob Griswold

5. Cost of Membership Tad Lacey

6. House, Food and Beverage Paul Rosenlund

7. Harbor Policies Ed Lynch

8. Summing Up Robert Heller

Please Hold Your Questions – and Applause - until the End

What Constitutes the Essence of Our Club?

What Binds us Together as Club Members?

Our History and Tradition



Our Love for Yachting in all its forms:

Racing

Cruising

Day-Sailing

Youth Activities



Our Love for Yachting

Our Corinthian Spirit



Our Love for Yachting


Our Volunteerism



Our Love for Yachting in all its Forms


Our Volunteerism

Our Friendship and Camaraderie

Among 1,500 Members…

…inevitably, there will be some difference of opinion

The Dining Room

“Food and drinks are getting too expensive!”

“Why is the Dining Room running such a large deficit?”

Visitors in the Dining Room “Restrictions on the

use of the dining room have been imposed on visitors from other clubs”

“I cannot get a place in the dining room when I come in from the Friday night races”

The Commodore’s Room

“Our Ladies Club used to be able to use the Commodore’s Room for free every Friday at noon – and we used to be able to bring our own sandwiches to save money”

“I cannot use the Commodore’s Room for my birthday party because it is already booked!”

Use of Facilities

“The Rotary used to be given a really good deal here –they no longer feel that way.”

“Our own Members should get real value for their dues”

Today’s Racers vs. Former Racers

“Member dues should subsidize Racing and Youth Sailing”

“Members should be given good value in the Bar and the Dining Room”

We are a Club United by a Common Interest and Purpose

We need to respectand tolerate each other’s views



We have to compromise




We need to emphasize our common goals




We need to emphasize our common goals

We need to focus on teamwork to achieve our common objectives

But there is praise as well……Dear Natalie, Reny and Dennis,

I want to thank you for the beautiful evening on… Everyone enjoyed themselves immensely, the food was really delicious, the service was impeccable and the room looked beautiful!

Thank you for all you do to make our Club so special and enjoyable.

Warmly,

Your Elected Leadership

You have over 120 Volunteers serving without pay on your Committees

You have a elected a Board that has earned its stripes through long-term voluntary service

All significant policies are vetted carefully before we ask Management to implement them

You are always welcome to volunteer yourself and to participate in Club Leadership

The SFYC

is a Yacht Club

Owned and Run

by its Members

Employee Actions

Paul Rosenlund

Director / House Committee Chair

Goals and Philosophies

Hire employees who are productive, and whose ethics, attitudes and goals are consistent with those of our Club and its members

Retain, promote and encourage employees who share our goals, ethics and attitudes

Rehabilitate those who need help and will accept it

Terminate those who will not rehabilitate

Employee Actions Employment relations are highly regulated

Compensation, discipline and reviews are confidential

All employees of the Club are “at-will”

Some turnover is to be expected, ours is very low

All employees undergo periodic performance reviews

Discipline is usually progressive but need not be so

Serious violations can result in immediate termination

Club works with outside legal counsel as needed to assure correct handling of terminations and disciplinary issues

Employee Relations

Ray Lynch

2010 Commodore

Employee Relations

Long Time Employees

Employee Morale

New Management Positions

Staffing Levels

10+ Year Employees21 out of 32 Full-Time Employees have worked at SFYC 10+ years

37 Years

Phil Atchison

Jamie Averill

33 Years

Rey Acio

26 Years

Ricardo Samayoa

22 Years

Reny Madrid

21 Years

Jorge Maldonado

20 Years

Larry Lam

17 Years

Vincent, James

16 Years

Gaspar Maldonado

Juan Maldonado

15 Years

Multano Hadisuryo

14 Years

Juan Gonzalez

13 Years

Anne McCormack,

Miguel Orellana-Lara

Adrian Noh

12 Years

Earl Davis

11 Years

John Berkenpas

Marcelo Caamal-Perera

Raul Bautista Arroyo

Amir Takesh

Gabriel Bautista

All other employees are less than 4 years

Morale #1 Reason for Declining Morale:

3-Year Wage Freeze & Reduction in Overtime Hours

Overtime & Double Time paid out has been reduced$ 170,000.00 from 2007 – 2010

Overtime Double Time

2007* $179,069

2008* 158,997

2009 82,608

2010 73,020

2007* $ 68,200

2008* 41,209

2009 15,427

2010 7,592

* In 2007 & 2008 Two Dining Room Waiters clocked over $35,000 per year each in Overtime and Double time

Staff Morale BoostersImplemented by our Manager from 2008 - Present

Training and Education

Established regular meetings with managers and staff to develop and foster open and frequent communication

Staff Education Programs focused on team building, service training, and best management practices

Staff Outings to promote fun, camaraderie and education

Manager’s all-day Team Building Retreats at Villa La Brenta

Winery and the Olympic Circle Sailing Club

Rewards and Recognition

Employee Awards Dinner and Recognition Night

Family Picnic on Angel Island

Employee of the Quarter Program

Holiday Bonuses for ALL SFYC EMPLOYEES

SFYC Scholarship Fund

Trips to Giants Games; boat rides to view SFYC regattas; dinners off-site, and manager appreciation parties to foster team spirit and improve morale

Employee Morale

Is Adversely affected by the Economy

and

The Clubs need to control

Payroll Expenses

New Manager Positions Assistant General Manager

This position was created at the recommendation of Commodore Kyle Elliott to insure better management coverage from 9:00 am – 9:00 pm daily

Catering / Events Coordinator

To enhance member service, we returned to the successful model used at the Club 10 years ago when Mul Hadisuryo was the Dining Room Manager and Kathy Larson was the Catering / Events Coordinator

Staffing Levels 2010 2009 2008 2007 2006

Administration 7.38 6.36 6.02 5.25 4.76(Housekeeping, Front Office, Accounting, Managers)

Bar 4.13 4.00 3.85 3.63 3.35

Dining Room 8.50 7.71 8.96 8.50 7.97

Galley 9.53 7.94 8.01 6.34 6.40

Harbor 4.27 3.47 2.67 2.64 2.64(Harbormaster, Dock workers, Parking Lot Attendant, Admin)

Maintenance 3.60 3.17 3.04 2.94 2.79(Clubhouse Maintenance, Room set-up)

Race 0.63 0.63 0.63 0.63 0.63

Youth 6.35 5.46 5.31 5.02 4.29

Total FTE Employees 44.39 38.74 38.49 34.95 32.83

Increase in Member Services RequiresIncrease in Staffing Levels

2007 Higher Member Usage after clubhouse remodel - required additional hourly staff

2008 Membership requested front desk hours be increased from 5:00 pm to 9:00 pm daily

Membership requested that the Bar and Dining Room be OPEN for dinner on Wednesday Nights

2009 Assistant Manager Position was created for better member services and access to management

Harbor: Assistant harbormaster was replaced with two full-time dockworkers (no additional cost)

Bar: Membership requested cocktail service for the bar on Wed, Fri, Sat, and Sunday

2010 Member Complaints about dining room service and long waits for Galley food

House Committee returned to the SFYC model:

One Dining Room Manager for dining service

and

One Catering Manager for member events

Hired: Rooney’s Chef, 1 waiter and 1 busboy for a better dining room and galley service

Statement of Financial Condition 2010

Cash 740 Current Liabilities 631

Designated Funds 421 Sailing Center Loan 204

Other Current Assets

712

Property and Equipment

5,879 Members’ Equity 6,917

Totals 7,752 7,752

•Strong and stable financial condition

•A 1.5 million Line of Credit adds strength

Financial Summary 2010

Actual Budget Variance

Member Dues 1,744 1,761 (17)

DepartmentalIncome

242 419 (177)

Committee Expenses

279 291 (12)

UndistributedOperating Expenses

1,549 1,472 77

Other Income 34 31 3

Initiation Fees 216 160 56

Depreciation -Club

214 224 (10)

Net Income 194 384 (190)

Departmental Income 2010Actual Budget Variance

Dining (222) (118) (104)

Bar 180 237 (57)

Sub Total Diningand Bar

(42) 119 (161)

Harbor 337 310 27

Ship’s Store 9 13 (4)

Youth Sailing (47) (8) (39)

Elite Sailor Support Youth

(15) (15) -

Total 242 419 (177)


Race Committee 58 60 (2)

Outside Regattas 7 29 (22)

Entertainment 43 38 5

Bulletin 84 80 4

Other Committees

87 84 3

Total 279 291 (12)

Committee Expenses 2010


General and Administrative

937 857 80

Repairs and Maintenance

333 331 2

Utilities 76 74 2

Insurance 124 130 (6)

Property Taxes 54 53 1

Estimated Income Tax

3 5 (2)

Sailing Center Loan Interest

22 22 -

Total 1549 1472 77

Undistributed Operating Expenses 2010

Major Budget Variances

Declining Dining and Bar Revenue • Less member dining• More activity in bar dining ($1 bar bites) • Reduced prices due to member concerns• Result: Dining Room Loss of: $ 221,593

versus Budgeted Loss of: $ 118,102

Youth Sailing• Unbudgeted Boat Maintenance• High School Sailing more expensive than anticipated• Reduced Donations• Result: Loss of: $ 46,762

versus Budgeted Loss of: $ 7,871

Major Budget Variances Increased Benefit Costs: Health Insurance

New Catering Manager

Consultant on Staff Training

Increase in Member Bad Debt

Auditing Fees

Computer Service

Total Variance: $ 79,946

Membership and Initiation Fees

The good news is the Club continues to attract new members

Regular Members decreased by one (1) From 1,016 to 1,015 (One tenth of 1 %)

Overall Membership decreased by 15 From 1,446 to 1,431 (1 percent)

Other Clubs losing 10 - 15 percent

Cost of Membership

Tad Lacey

Director / Membership Committee Chair

Dues History1995 $ 75

1996 80 6%

1997 80 0%

1998 80 0%

1999 90 12%

2000 100 11%

2001 110 10%

2002 115.50 5%

2003 121.30 5%

2004 $127 5%

2005 131 3%

2006 144 10%

2007 148 3%

2008 153 3%

2009 160 4.5%

2010 165 3.13%

2011 169 3%

2010 Market Survey

Club Dues / Month

Balboa Yacht Club 210.00

California Yacht Club 195.00

Chicago Yacht Club 263.00

Newport Harbor Yacht Club 275.00

Rochester Yacht Club 246.00

St. Francis Yacht Club 286.00

The San Francisco Yacht Club 165.00

House Policies Food & Beverage

Paul Rosenlund

Director / House Committee Chair

Six Year Dining Room and Bar Results

F&B Costs are Largely Fixed

Typical Evening in the

Dining Room:

• few reservations

• many walk-ins

Room Charges & Special Events

We have had fees for many years: rental fee + labor fee

All fees waived for regattas and club events

Members pay labor only (i.e., no rental fee)

Some members were getting preferred deals for their private events

The special deals are gone

No changes in policies

No increase in outside use

Quarterly Minimums

• 1997 $ 75

• 2010 $100

• 2011 $125

SFYC minimums allow purchases in the dining room, bar and club events

– many do not

Is our food priced right?

SFYC Sam’s Tiburon Grill Salt & Pepper

Cheeseburger & fries

10.95 13.00 13.50 12.00

Petrale Sole 21.95(includes soup or salad)

22.00(no soup or salad)

Salmon24.95

(Wild Salmon, includes

soup or salad)

22.00(not wild, no soup or salad)

(banquet $45 w/salad)

18.00(not wild,

no soup or salad)

18.00(not wild,

no soup or salad)

NY Steak28.95

(Niman Ranch, includes

soup or salad)


(banquet $50 w/salad)


Clam Chowder included(4.00 / 5.75 alone)

6.00 / 8.00 4.50 6.50 / 8.50

Green Salad included 7.009.50

(butter lettuce or field

greens)

11.00

Daily Value Additions

Wednesdays Bar Bites - $ 1.00 and up

Thursdays No Corkage Fees

Fridays Free Sushi and Taco Bar

Saturdays Two-For-One Specials

Sundays Pasta Bar

Weekends BBQ on the Deck

Every Day Phil’s Value Wine Selections

Every Day Blue Plate & Chef’s 3 Course

Food Quality Enhancements

Comment Cards produced over 95 percent positive results

Monthly menu changes

Hired local lunch chef – formerly Rooney’s

Chef Outings (with Staff)

Is our wine too expensive?By the Glass

OZ Lowest Highest Average Av/Oz

SFYC 8 5.50 13.0 9.00 1.12

Sausalito YC 6 4.00 11.00 8.00 1.33

Oakland YC 6 4.75 10.00 7.38 1.22

Richmond YC* 6 3.25 7.00 5.31 .89

Corinthian YC 6 6.00 14.00 9.00 1.50

StFYC 6 5.75 16.50 10.00 1.67

* Richmond’s lower priced wines are from jug or box and marked up approx. 400%

By the Bottle

SaintsburyChardonnay

Emeritus Pinot Noir

NeyersChardonnay

LeastExpensive

Tiburon Grill 48.00 70.00 75.00 32.00

SFYC 30.00 53.00 50.00 19.00

Harbor

Ed Lynch

Director / Harbor Committee Chair

Harbor

We have deferred harbor maintenance for many years

EXAMPLES:

Dry dock broke down due to rotten timbers

Our electric distribution system is old and hazardous

Dry Dock hoists are costly to maintain and service

SFYC Harbor Rate Comparison

Marina 36-40’ Berth

Clipper $551.00

Schoonmaker $575.80

CYC $360.00 - $400.00

SFYC $353.00 - $392.00

Action Items

We have scheduled a replacement of all harbor floats and decking during the next four years

We will replace the electric system panels and dock stations and install new monitoring equipment for safety of persons, boats and harbor

Total costs are estimated to be $ 800,000++

Next dredge episode will be in 2018

Summing Up

Robert Heller

Commodore

Summary We Have Talked About:

•Our Employees

•Finances and Costs

•House Policies

•Harbor Policies

We Have Not Talked About:

•Race and Youth

•Building Program

Your Board is Committed to

Treat all Members Fairly and Equally

Questions and Answers

We welcome this opportunity for dialogue

Please ask one question at a time

board report

Documents

Transcript of board report