KYC Currents - Facility Master Plan
KYC Currents - November 10, 2018
KYC Currents - Facility Master Plan
November 10, 2018
Commodore: Ross Cameron
Having a long-term plan to address an organization’s maintenance and development is fundamental to its long-term existence. The following chapters are your current Board’s statement about those realities.
The Introduction is followed by a Policy, already passed by your Board.
Implementation of that policy will need careful supervision, the focus of the next section.
The following section recognizes that these things will cost which means that there should be a discussion about access to money.
Finally, there are two Appendices.
The first is THE LIST, an outline of the tasks your Board will continue to evolve as needed. As a result, this list will be amended as things develop. In general, barring emergencies, it’s from this list that priorities will be chosen.
The second is a set of recommendations from our General Manager, who will assist your Board as it makes these important decisions.
The Facilities Masterplan (FMP) is a long-term planning document. It will be used by future Boards to oversee repairs, renovations and new projects at our Club.
I wrote the following for a contact earlier this year.
For many years your board has diligently fixed things around here. Sometimes the ‘fix’ took a long time to get to and sometimes it was completed in a ‘do it yourself’ way. None-the-less things got done.
That said, there was also a tendency to leave things if they could be left and that resulted in there being a significant amount of deferred maintenance. I’ll come back to what we’ve done in the past eight years.
It became apparent that, to truly address the multitude of issues we face we needed a guiding document – one that would list all (or as many as possible) the things that needed doing. A document that your Board and Staff could use to plan.
This is the Facilities Masterplan – the primary focus of tonight’s meeting.
We know our main dock is cracking, we know our clubhouse is not level, but never have we tried to collect and to begin to organize all the stuff we need to do – to list what we can improve or begin anew.
The FMP (as it’s come to be known at the Board table) is that listing.
• Will it ever be complete? Probably not but we can come close.
• Will it ever be current? Probably not because circumstances change. (have a look at the fence out by the flagpole – it was fine last fall)
• Will it be useful? Absolutely, because it will be, as a fundamental, flexible. Each Board of Directors will review, pick and choose based on current needs and expectations.
• Will it have a time-line attached? NO! Boards will continue to do what is high priority and what they can afford.
So, the FMP is more than a planning tool. It is a guideline, a kind of prescription. It’s a summary listing of the things we know about – a listing that will contract as we complete tasks and expand as new tasks come to the plate. It’s a project list – one with as much detail as we can include.
Recently, in a Knotmeter a few weeks ago, I outlined a series of exciting projects that will be completed this fall, beginning very soon. These projects include shoring up the foundation of our flagpole, adding rock to the west side of our breakwater, correcting various small jobs on the rest of the breakwater and, after many years, rebuilding the north wall of our North Basin. This latter project will include a new launch ramp for the Junior Sailing and Queen’s programmes.
Total spending on these kinds of projects in the past decade totals almost $775,000.
The following includes a FMP policy passed by the Board in June 2018, a short article about how we will implement that policy and an article about how we can pay for these undertakings. These are followed by two Appendices – the List of tasks as know at this point and an Appendix from our manager. The document has been in development for a couple of years. It, as amended, be a twenty-year plan.
It’s a major leap forward.
Policy Author: Rob McRae
Kingston Yacht Club
Facilities Asset Management Policy
The purpose of this policy is to inspire, encourage and guide the process by which facilities are managed by the Kingston Yacht Club (KYC).
KYC fleet assets such as boats, outboard engines and buoys will be managed under a separate, parallel and complementary policy framework that is being developed.
In this policy:
“Capital project” means physical work that is carried out over a defined period and results in specific benefits to the condition of a facility;
“Facilities” means breakwaters, buildings, cranes, grounds, decks, docks, roadways, marine railways, retaining walls, shore walls, related structures and servicing infrastructure, and associated furniture, fixtures and equipment. Fleet assets are not defined as facilities in the context of this policy.
3.0 Strategic Plan
Implementing this policy will help realize the intent of the By-laws of the Kingston Yacht Club (2016) and the KYC Strategic Plan (2016). The vision, mission and activity below are relevant excerpts from the Strategic Plan.
A community of families and individuals sharing their love for the water and dedication to sailing and boating.
Build on our storied history and looking to the future. We strive to: promote, encourage and educate to create opportunities for friendship and community champion the sports of sailing and boating; and provide inviting, comfortable and sustainable facilities at the current location.
Activity: Provide inviting, comfortable and sustainable facilities at the current location
- Ensure a safe harbour and support services
- Restore, update and maintain buildings and properties
- Create an accessible and energy efficient environment
- Provide a year ‘round high-quality dining experience
- Maintain remote, recreational property
4.0 Principles for Asset Management
Consistent with the intent of its By-laws (2016) and Strategic Plan (2016), Kingston Yacht Club will strive to be a good steward of its facilities, and will endeavour to develop and maintain them in a manner that:
- Advances the objects, vision and mission of the Kingston Yacht Club;
- Enables venues for success in sailing and other water-based activities;
- Enhances member recruitment, satisfaction and retention;
- Supports the health and safety of staff, members and guests;
- Respects environmental and historical values;
- Is compliant with government requirements;
- Maintains good working relationships with neighbouring landowners and municipal communities;
- Is consistent with best practices for capital asset management; and
- Promotes the financial health of the Club.
5.0 Facilities Master Plan
- (a) The KYC Board (or its designate) will oversee the preparation, implementation, evaluation and updating of a Facilities Master Plan, in collaboration with the Club Manager and staff.
- (b) The Facilities Master Plan will normally include the following components:
- - An inventory of Club facilities;
- - An assessment of their physical condition;
- - A prioritization of potential capital projects to repair, replace or enhance Club facilities; and
- - An implementation schedule for the capital projects to be undertaken during the subsequent ten (10) years.
- (c) The Facilities Master Plan is intended to be actively used as a guide to the ongoing development and rehabilitation of KYC facilities over the long-term.
- (d) The Facilities Master Plan could be used to:
- a. Set fundraising priorities, and make appropriate use of donations, grants and other sources of revenue;
- b. Assess the sequence in which capital projects should be undertaken (i.e. ‘A’ must be completed before ‘B’ or ‘C’); and
- c. Identify the amount of funding that will be necessary to undertake a group of capital projects.
6.0 Facilities Planning Process
7.0 Criteria for Prioritizing Capital Projects
- (a) The Facilities Master Plan is a living document. It will be reviewed by the KYC Board and Club Manager on a regular basis. Reviews will normally be undertaken each November by the outgoing Board, and each April prior to the construction season, with additional reviews as required.
- (b) The ten-year implementation schedule for capital projects will normally be updated by the KYC Board and Club Manager as part of the annual budget.
- (c) Implementation of specific projects identified in the Facilities Master Plan is subject to KYC Board approval, either through the annual budget or by separate resolution.
- (d) The KYC Board will have regard for the Facilities Master Plan when considering the merits and implementation timing of potential capital projects that are not included in the Facilities Master Plan (e.g. time-sensitive projects that may arise during the year).
- (e) A record of completed capital projects will be maintained by the Club Manager in a digital format and reported to the KYC Board at least once per year. The record will include information on aspects such as actual revenues and expenses, permits acquired, contractors engaged, project duration, as-built drawings and future maintenance / replacement schedules.
The KYC Board and Club Manager will have regard for the criteria listed below when prioritizing projects, and when evaluating the merits of individual projects. The criteria are not weighted.
- (a) Risk management:
- Risk of imminent and/or catastrophic failure;
- Health and safety liability (to staff, members, guests and others);
- Environmental liability (e.g. pollution, degradation of fish and wildlife habitat).
- (b) Benefit:
- Tangible benefit to members (i.e. their ability to use and enjoy the facilities);
- Intangible benefits to members (e.g. appearance and vitality of the facilities);
- Benefits to working relationships with neighbouring landowners and the broader community.
- (c) Financial business case:
- Direct and indirect costs: direct costs paid to consultants, contractors, subcontractors, staff, miscellaneous material expenses; indirect costs to include down time and revenue not collected;
- Opportunity costs (i.e. risk of lost revenue if a project is not implemented);
- Time frame to pay back loans (normally the amortization of any loans will be no longer than the estimated life of the asset financed);
- Borrowing capacity (percentage of capacity used, potential to increase capacity).
8.0 Policy Review
In order that this policy be kept current, flexible and viable, it will be reviewed by the KYC Board on a regular basis, normally once every ten (10) years.
9.0 Policy Status
This policy has been adopted by the KYC Board of Directors as follows:
Date of Adoption: June 20, 2018
Description of Revisions: Original Policy
Rear Commodore: Peter Cohrs
The Facilities Master Plan (FMP) is a Kingston Yacht Club tool by which projects will be sized up.
As there are many, many projects that the Club must consider, and prioritizing them is a must, Commodore Cameron’s FMP is the policy with which to assess each project for implementation, or not.
For example, an infrastructure deficiency is loosely identified as needing doing. It is brought to the Board thru’ a Board Member. We plug the need into the FMP criteria list to assess:
need/benefit, risk, cost, cost benefit in doing or NOT doing, subsequent business case.
Once the criteria are assessed, the need may be prioritized and possibly promoted into “project” status, once voted upon by the Board. It may not pass “project” muster and remain in the project in-box. If it is deemed a project, implementation to follow based on timing, financing and other factors.
Such is the process that the FMP is. It is hoped that the FMP will be the vehicle to keep up to date on infrastructure updating, which will be done at a minimum of twice a year.
The FMP is a tool to keep on top of and keep in the Board’s eyes, that which needs doing. We hope that this will reduce the somewhat haphazard “process” that rebuilding/repairing had become.
While many infrastructure deficiencies have been identified and catalogued, we encourage members with their eyes open to bring their concerns and suggestions to a Board Member.
We think it will work.
Thanks to all Board members who contributed to it’s development.
Finance Director: Ron Hodges
Finance Contribution to Currents on FMP
How to pay for the FMP
The projects identified by the FMP so far range from the small to the quite large, from urgent to less so, from ones that will generate profits to help pay for their cost to those that just need doing. While your Board’s recommended ways to establish priorities are discussed elsewhere, it is obvious that the projects will need to be spaced out: to fit within the Club’s capacity to manage them, and the Club’s capacity to pay for them.
Sources of cash to pay for infrastructure projects
- 1. Club profits. The Club’s operating profitability is the primary generator of cash to pay for projects and cash to service any loans. While our 2018 financial statements are not yet final, about $161 thousand was spent on repairs and improvements: about $88 thousand on maintenance expense, and $73 thousand on capital projects. This spending included repair to physical infrastructure – building, sewer lines, harbour – as well as the Club’s fleet of boats.
In addition, the Club’s 2018 cash flow services our existing bank loans: about $42 thousand in principal payments this year.
- 2. Capital fees. The capital fees are intended to help fund large repairs and improvements (FMP projects). In 2018, our operating cash flow (before capital fees) covered about 56% of the cost of our urgent capital projects and the rest was paid by using some of the year’s capital fees. So, about 38% of this year’s capital fees were used to pay for some of this year’s capital projects, leaving about 62% of this year’s capital fees to build the Club’s cash reserves for eventual large (FMP) projects. Our goal must be, at a minimum, to improve operating cash flow so that all the capital fees can be directed to eventually help fund FMP projects.
- 3. Grants. The Club has had some past success in acquiring grants. Members will recall our successful application for Trillium grants. Club management and several dedicated Board members have made a serious effort this year to apply for additional grants. The results of these efforts are not yet clear, but the Board is quite optimistic.
- 4. Donations. The Club is hopeful too of receiving donations from organizations whose purpose is to support sailing.
- 5. Bank loans. For eventual large projects, it is inevitable that a substantial portion of the cost will be financed by bank borrowing. Such borrowing will need to be supported by the Club’s capacity to service the debt from its operating profits, so - to reinforce the point made in item 1 above – continually improving the Club’s operating profits is key.
Bank borrowing should be reserved for large projects with at least a partial business case: the project itself should generate additional profits to be used to help service the associated debt
The Club’s debt servicing capacity will be partially freed up when the current loan for the gas dock project is repaid in 2022.
Some members have wondered if the Club should generate additional profit by implementing a minimum member spend on Food and Beverage. This idea does not have the support of your current Board.
• The Club’s F&B offering has proven very popular with members and is profitable.
• Our GM and current Board feel members should support the Club’s F&B because it is good dining and good value, not because they are financially forced to.
There is another initiative, though, on which the membership should begin a conversation: initiation fees for new members. KYC is now a very attractive club. We have no trouble attracting new members. And, in the interest of fairness, our past and current members have invested their labours and their money in making the Club the attractive place it is. It is not unreasonable to ask new members to invest too.
Vice Commodore: Rob Crothers
FMP List of Priorities
1.0 - Site Improvements
.1 - Breakwater Reinforcement: One of our key assets is our harbour in what is a rather exposed location. We need to continually reinforce our breakwater against the forces of wind, water and ice erosion. This means adding large stone reinforcement on both the south and west faces to reduce the impact of erosion that will never be completely negated.
.2 - Wave Attenuation: Our harbour is exposed to the effect of wind and waves from the east. We need to improve our harbour protection, so we can provide the reliable mooring facilities. This will allow our membership to grow to is natural maximum size for boats and members that will help support our “sustainable future” objective. We are trying to find a way to purchase several floating wave attenuators to quiet the harbour while at the same time gaining valuable waterfront real estate for our sailing programs.
. 3 - Swimming / Water Sports Area: One of most popular parts of the club property could use improvement. We lost our tent roof last year and there are a variety of amenity, accessibility and safety concerns that need attention in this area. Improvements that have been suggested for this area include change rooms, personal lockers, improved surface treatment, BBQ, safety signage and gear as well as both water and electrical services.
. 4 - Inner Harbour North Wall: This water’s edge provides docking and access to our yard. The lane provides parking, access for regatta launching and the crane for winter haul out. All three services are important to our programs and our bottom line. This lane and wharf are slowly slumping into the inner basin as evidenced by the bowed dock and slumping pavement. A significant reconstruction project is required to secure this asset.
.5 - Grassy Lawn: The humped topography of this green area prevents positive drainage away from the Saints Rest and Junior Sailing facility. Re-grading will improve storm drainage and reduce the slow deterioration of the Saints Rest foundation.
.6 - Dinghy Launch Area: The corkscrew dock that borders the launch ramp and the coach boat dock to the east all need attention. There are issues with undermined foundations, instability of the dock structures and concerns with water depths at the abandoned marine railway. Underwater excavation and improvements to the launching surface are being considered.
.7 - Boat Storage Lockers: The rear of the boat shed near the water is only tenuously supported behind the gas shack and there are several scrub trees undermining the shallow foundation of this frame structure. Improving foundation conditions is a secondary priority but it is being looked at along with the development potential of this property boundary.
.8 - Security and Privacy: We continue to wrestle with the public (open and welcoming) and private (membership financed) nature of our club. There are plans to enhance security with the installation of recording video cameras and a redesign of our entrance at the bottom of Maitland St.
2.0 - Club House Improvements
.1 – Clubhouse and main Dock Foundation: Everyone who has walked up the stairs to the Partridge Room is aware of the effects of settlement around our cub house and if you have looked under the blue bridge at the end of the main dock you are aware of the slumping rock crib work it is founded on. We are engaging a structural engineer to review our past studies, re-examine the building and dock foundations and help us get to the decision point of advancing the club house into the future. We either reinforce the existing foundations so we may confidently improve the existing building, or we consider moving and or demolishing the building before creating a new and reliable foundation for a replacement structure in the sane location. We have lots of great design ideas and our General Manager has been very effective in creating a business case to help pay for such an endeavour, but we need to advance ourselves to the decision point.
.2 – Site Services: The least visible but most important aspects of our property are the services and utilities that support our use of the club house and our January 2018 experience has made us very aware of how vulnerable our shallow water and sanitary are to severe cold. Subject to decisions concerning foundations we need to insulate these connections. Our electrical service size presently limits adding to our distribution system. A new transformer will need to be considered as part of the clubhouse redevelopment.
.2 – Club House Renovations: There are numerous large and small improvements that would make the club house more attractive including; an improved entrance, elevator to the second level, air conditioning, new windows, redecorating and some new furnishings and equipment. Certain items will need to be done before club renovations others may have to wait.
3.0 – Saints Rest
.1 – General Maintenance Exterior: We have assessed the envelop of this building and determined there are several building science issues that are now priorities, the lake side roof of the annex needs new sheathing and shingles most of the building needs new eaves troughs and downspouts. The perimeter foundation requires improved exterior foundation drainage and the cracked and leaking stucco on the annex needs to be removed and the original stone wall repointed. There are also concerns about the remaining life in the fire escape and second level deck surface and several windows need replacement.
.2 - Building Systems: The two apartments in the main volume of this building were fully renovated 20 years ago and are in generally good condition.
The lower level is functional but less attractive and has suffered rough use rough use over many years. Full renovation of level 0 and the two units in the Annex are on the list but lower in terms of priority. The existing heating system however is a target for improvement to reduce operating cost and improve efficiency. The arrangement of the electrical service in the closet at the base of the entrance to Unit D also needs improvements as does the partially buried gas meter location on the west wall.
General Manager: Greg McNab
Management’s Point of View:
Since I work very closely with Committees, Executive and the Board in assisting Capital “needs” both long range planning as well as initiatives identified annually, I believe this policy helps in piloting our management team to inspire, encourage and champion the process by which our facilities are managed. The conversations I have assists in creating the foundation for ideas and decisions resulting in specific benefits to the condition of our resources (breakwaters, buildings, docks, retaining /shore walls) as well as servicing infrastructure, and associated furniture’s (fixtures and equipment).
As I have described in previous documents; I believe in something I refer to as my “North Star.” It is a concept that assists me in managing the operations of the club with “best practice” decision making for the betterment of KYC. It is based on the knowledge we are a community of families and individuals sharing our love for the water and dedication to sailing and boating. I also recognize KYC is built on a storied history, similarly, we are always looking to the future, striving to champion the sports of sailing and boating in an inviting, comfortable and sustainable facility.
My “North Star” is to be a good steward of our facilities, and endeavour to develop new ideas for our Club by aligning priorities and advancing projects based on our mission and vision statements. I am motivated to ensure our board selects projects that validate our venues are successful for sailing and other water-based activities. It is also vital these projects align with both current and new members desires of an enriched experience at the Club. This ensures KYC has members who are happy with their experience (i.e. providing a year ’round high-quality dining experience / enhance our remote recreational property) and want to continue to be part of our community. I also want to ensure we as a Club are supporting the health and safety of staff, members and guests as well as respect the environmental and historical values of KYC. Lastly, we aspire to maintain a good working relationship with neighbouring landowners and municipal communities.
By having “my pulse” on our memberships needs, I have a better understanding of how to improve our capital asset management which directly promotes the financial health of KYC. It also creates a Club Environment that delivers both tangible and intangible benefits by way of reinforcing our promise to members of the ability to foster enjoyable facilities as well as a positive appearance and vitality of our facilities.
The Facilities Master Plan will assist me with my following goals:
- • To have a fully subscribed harbour while enhancing our services and infrastructures creating an environment of potential members requesting slips and membership.
- • Stabilizing the foundation our Clubhouse and surrounding patio/road it rests upon.
- • Reviewing needs of current Club usage and what trends I foresee materializing within our membership and the community at large.
- • Understanding how our Clubhouse needs to change and advance to meet our expectations.
- • Review what our opportunities and needs are of Saints Rest (and how this facility can evolve to complement our mission and vision).
- • Evaluate and assess potential partnerships of “like minded” businesses, organizations and Clubs who complement our objectives.
- • Continually assess what tangible and intangible products/services our board and management team can provide that will enhance the enjoyment and unbroken confirmation of our memberships desires.