Special Meeting of the Raritan Yacht Club

February 6, 2007

A Special Meeting of the Raritan Yacht Club was called to order at 19:38 on February 6, 2007.

1. A quorum of voting members was counted.

2. Rear Commodore Al Jacobs presented background information on the issue of Great Beds.

a. It would be difficult if not impossible to put Great Beds into service in 2007 without a new engine.

b. There are two options: Recondition the existing vessel or purchase a new one. Reconditioning would include a new engine, transmission, awlgrip painting, and various other items. The cost for a new engine and transmission using Engine Service (Doug Stout) would be about $20,000. All the other work would be done by Mark Rebovich for a price not to exceed $15,000. The vessel would be available by Opening Day 2007. A new launch would cost $105,000 and would not be available until 2008.

c. The floor was opened for discussion. Comments included that refurbishing would add 10-15 years to the life of Great Beds and would double the value, that the hull is sound, and that the drive shaft was replaced five years ago. Mark presented his written list of the items he would address.

d. A motion was made “to refurbish Great Beds at a cost not to exceed $40,000 from the Sinking Fund”. The motion passed by an overwhelming majority.

3. PC Len Keating introduced a proposal to increase the dues and made a motion “to increase membership dues from $630 to $690 retroactive to January 1, 2007”. The first few months of the increase would appear in the April billing. A Call to Question was made and approved. The vote was in favor of the motion with 39 for, 11 opposed.

4. Vice Commodore Dennis Meichel presented information about the grand piano in the Grill Room.

a. Costs for the piano include $100 twice a year for tuning and about $600 for a “spider”. The “spider” is needed to be able to move the piano. The piano was last tuned about 6-8 months ago. Additional repairs are needed.

b. A motion was made “to retain and maintain the existing Grill room grand piano”. The motion passed.

5. Vice Commodore Dennis Meichel and Search Committee Chairman, Ron Gort, gave an update on the search for a new Galley operator.

a. Craig Sheldon, an RYC member and the owner of the Ryland Inn, and Warren Leeds, who owns a catering company, provided valuable input in the search, including a suggestion to adopt a new business model for the Galley. In the new model, the Galley operator would be a successful restaurant owner, not a “Mom and Pop” operation.

b. The Committee identified an owner in Staten Island who has two restaurants and just closed a third one. He retained his staff who would be available for RYC.

c. Jeff Steuber mentioned that he knows someone who runs club restaurant operations, but negotiations with the person from Staten Island are too far along at this time.

6. Vice Commodore Dennis Meichel gave an update on the progress of the construction project. The project is about 5-7 days behind schedule, but that is minor. So far, costs are about $3000 under budget. A rough mechanical inspection is scheduled for tomorrow. There have been no major structural issues.

7. Commodore Vicky Neiner presented background information concerning the financing of the construction project.

a. At the time the motion was made to approve the construction, the motion included wording that the bank loan would not be collateralized by fixed assets. A bank representative with whom RYC was expecting to obtain the loan stated that it would not be necessary to collateralize the loan. However, when the loan application was submitted, the bank reversed its position. Other banks have been contacted, and they have the same policy.

b. In order to obtain the loan, a motion was made “to approve $150,000 financing with a mortgage for no more than five years and not to be collateralized by the Sinking Fund”. The motion passed.

8. The meeting was adjourned at 21:15.

Respectfully submitted,

Fred Hartner

Secretary

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