Special Meeting of the Raritan Yacht Club

June 28, 2005

 

A Special Meeting of the Raritan Yacht Club was called to order at 20:05 on June 28, 2005.

 

1.     Commodore Len Keating opened the meeting and reminded everyone that the only topic for discussion was the issue of the launches.

 

2.     Rear Commodore Vicky Jo Neiner presented background information on the issue.

 

        a.     There are over 220 boats in the fleet and only 2 launches.  Other clubs have 3-5 launches for a fleet only half the size of RYC’s.

        b.     Great Beds is over 25 years old, is not US Coast Guard certified, and consequently, cannot be operated with more than 6 passengers.  Penalties could include loss of the launch operator’s license, fines in the 5-6 figures, and other possible sanctions, such as, the shutting down of all launch operations for a year.  There would also be insurance problems.  Because of a recent accident, the USCG office on Staten Island is experiencing intensive pressure to enforce the rules.

        c.     A 20 year life cycle for the launches is assumed for Sinking Fund purposes.

        d.     Steve Gillooly has researched the problem and has identified several sister ships.  Copies of certificates of inspection of the sister ships have been given to the USCG.  It is believed that the Great Beds had been certified when built, but the paperwork at Fortier was destroyed by water damage, and no other paperwork has been found.  An original file may be located in Washington D.C., but it has not been located yet, and it may never be found.

        e.     In March, there were a few used launches available with paperwork, but they have all been sold.

        f.      The launch manufacturer Fortier (Great Beds) makes 2-4 new ones per year, Old Port (Karl Gilman) makes 3-5/yr, and Crosby makes 5-7/yr.  Richmond County YC has a Fortier and a Crosby, Atlantic Highlands YC and Keyport YC each have two Crosby launches.

        g.     The RYC launch schedule does not allow for downtime.  There is a need for scheduled maintenance time.  Last season, there were several times when there was no launch service.

        h.     A new Fortier would cost $85,000, would hold 22 passengers, and would not be available until 2006.  A new Old Port would be available about the same time, but a consensus of the operators is that it is too light for Perth Amboy conditions.  Crosby had offered to provide a new launch in 60 days.

        i.      To bring Great Beds to current standards would cost $35,000-$40,000.

 

3.     The RYC membership was reminded that there would be no decision tonight as to which launch to purchase.  That question would be addressed later by a subcommittee.

 

4.     A discussion began, and several suggestions were made, including that the Club buy a new launch and continue the certification process. Another suggestion was that the Club place orders for two launches, one for delivery in 60 days, and the other for delivery next Spring.  If the certification process fails by then, both old launches would be sold.  It was noted that the Fortier has a great hull, and the conditions at RYC are much harsher than at Keyport.  Based on the experience with the Karl Gilman, it would take at least 3 months to obtain certification after the paperwork for Great Beds was found.  A concern was expressed that the money for a launch might come from the Sinking Fund, but the membership was reminded that the launch is a capital item addressed by the Sinking Fund.

 

5.     Tony O’Reilly made a motion to acquire a new heavy launch for up to $85,000 from the Sinking Fund.

 

6.     There was discussion of the motion.  Bill Adams provided additional background on the issue.  Four years ago, Great Beds had been completely overhauled, thanks to Richard Codd.  It was rebuilt to the certification specifications of that time.  Everything was obtained except a stability test and there was no documentation confirming a previous stability test.  The reason certification is an issue now is because the USCG is focusing more on compliance with rules and threatening stiff penalties.  There was an attempt to amend the motion: the word “new” would be exchanged for “replacement”.  A vote was against the amendment.  The 60 day time frame for a new launch was mentioned.  A suggestion was made to enquire whether RYC could purchase a launch promised to another club, however, Vicky noted that there were currently no new launches in Crosby’s schedule until November, and the other manufacturers had stopped production for the season.  Dave stated that another problem was that the only engine available currently, the Yanmar 76, was no longer allowed by the EPA.

 

7.     Jim Woller made a motion to amend the original motion.  The new motion would read, “To acquire a new third heavy launch for up to $85,000, and if funds are not available from the operating funds, to the extent necessary, make an assessment.”  A call to question was voiced, and it passed with a vote of 40 in favor and 7 against.  The amendment was approved by a vote of 39 in favor and 23 against.

 

8.     There was additional discussion that centered on the source of the funds.  If an assessment was necessary to cover the entire cost of a new launch, it would amount to about $250-$300 per membership.  A motion was made to amend the current motion to include that the membership direct the Flag and Board to redirect capital item funds to pay for the third launch.  The membership was reminded that a new dock structure had already been approved, and that the funds should not all come from the operating budget, but some from an assessment.  It was also noted that about $60,000 of the Sinking Fund has been allocated for Great Beds.  A call to question on the amendment was voiced and a vote on the call to question passed.  The vote on the amendment did not pass with 26 in favor and 32 against.  A call to question on the motion of Tony as amended by Jim (item 7, above) passed.  The motion passed by a vote of 44 in favor, 26 against.

 

9.     The meeting was adjourned at 21:47.

 

Respectfully submitted,

Fred Hartner

Secretary

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