Marina Committee

1 MARINA COMMITTEE MEETING MINUTES 2 Wednesday February 19, 2025 3 Approved Version 4 5 Agenda Item No. 1. The February 19th, 2025 meeting of the Marina Committee was called to 6 order by Chairperson Alison Werner at 4:00 P.M. 7 8 Present: Alison Werner, Louise Howson, Patrice Champeau, Pat Duffy, and Kevin Grant 9 10 Staff: Marina Manager Dave Lienau, Assistant Manager Sam Jordan, Village Administrator 11 Julie Schmelzer 12 13 Others: Nicholas Dokolas, John Lijewski, John Blossom, Thor Johnson 14 15 Agenda Item No. 2. Approval of the Agenda 16 17 A motion was made by Grant, seconded by Champeau that the Agenda for the February 19th, 2025 18 meeting of the Marina Committee be approved as presented. Motion carried – All ayes. 19 20 Agenda Item No. 3. Approval of the Minutes 21 22 A motion was made by Duffy seconded by Champeau that the minutes of the January 8th, 2025 meeting 23 of the Marina Committee be approved by the committee. Motion carried – All ayes. 24 25 Agenda Item No. 4. Comments, correspondence, and concerns from the public 26 27 No correspondence was received for this meeting. Werner asked if anyone would like to make a 28 public comment, and Dokolas responded. Speaking on behalf of the commercial slip holder, 29 Sister Bay Boat Tours, Dokolas requested that the committee give him permission to continue 30 conducting nighttime astronomy tours. 31 32 Agenda Item No. 5. Discussion/Action Items 33 34 a) Marina Annual Report 35 36 Lienau summarized the report and highlighted the results shown in the marina’s economic 37 impact study. 38 39 b) Boathouse Project 40 41 Schmelzer explained the necessary steps before the any development on the boathouse can 42 begin. The plan commission needs to see a development plan to then approve. The marina 43 committee needs to determine what to do with the second floor and what the design of the 44 building should look like before anything can be brought to the plan commission. Blossom 45 explained the Shadow Group’s current plan for the boathouse. Phase one of their plan is to  Minutes of the February 19th, 2025 Meeting of the Marina Committee - Approved 46 build the boathouse museum on the first floor. Phase two is the development of the second 47 floor. The Shadow Group intends to be responsible for the financing and maintenance of the 48 entire building in this plan, rather than having to share responsibilities and utilities with the 49 village. The second floor would likely be classified as private use, given the large number of 50 safety and ADA requirements the second floor would need to meet if it were to be public use. 51 Blossom added that once plans are finalized with the village, the group will launch a public 52 fundraising campaign. Part of this campaign will include the “Sister Bay Marina Club”. Grant 53 inquired what the latest plan for the upstairs looks like and voiced concern about there being 54 exclusive access only given to affluent members of the community. Blossom responded that 55 once phase one of the project is complete, the second story could be used as a meeting space 56 related to the museum and the historical society. Grant then asked how Blossom and the 57 Shadow Group plan to replace the revenue that the marina loses from not being able to use the 58 second story as a short-term rental operation. Blossom responded that the group hopes that 59 their $350,000 investment into repairing the boathouse and developing the waterfront museum 60 for the public would allow the village to forgo charging the Shadow Group for any lost rental 61 revenue. Blossom added that the group is open to compromise if the village decides that they 62 want compensation. Werner noted that the marina wouldn’t be able to generate revenue from 63 the second story without investing a large amount of its own money into rehabilitating the 64 space. Duffy rebutted that the second story is currently habitable and rentable without any 65 rehabilitation other than cleaning. Duffy added that the money invested by the Shadow Group 66 should be considered by the committee when deciding what compensation is required from the 67 Shadow Group if they take over the second floor. Lienau added that the marina has funds 68 budgeted for a variety of repairs and furnishings for the second story. Grant voiced concern 69 over the rapid shift in the project’s plans before having a clear development plan in place, and 70 that the marina was likely charging a well below market rate for the second story rent. Blossom 71 added that any renovations completed by the Shadow Group project will inevitably impact the 72 entirety of the boathouse, both the first and second floor. Howson asked if museum 73 construction would occur while members rent the second story. Blossom replied that the 74 complexity of that issue is why he thinks it makes sense for the second story to be taken over by 75 the Shadow Group even if they must compensate the village for their use of it. Howson 76 summarized the next steps needed to proceed with this project based upon the email 77 correspondence from Schmelzer shown in the packet. The steps include approval from marina 78 committee, approval from plan commission, a written contract between village administrator 79 and Shadow Group, and then approval by the village board. The marina committee’s 80 responsibility now is to approve the use of the building and the proposed plans, specifically 81 regarding the second story. Duffy noted that the committee needs to see how the development 82 of the first story would impact access to the second story, specifically regarding the current 83 doorways and staircase. Duffy noted that it is important to have separate and secure entry 84 points for the museum and upstairs rental space. Blossom noted that the Shadow Group hopes 85 to allow public entrance into the museum building during the same hours of the local park. 86 Grant requested a clear and updated plan, with emphasis on the intended use of the second 87 story. Blossom and Grant agreed that open use for marina users would be ideal for the second 88 story’s use, but the main concern is the second story’s limited capacity. Champeau noted that it 89 seems difficult to continue the rental operation in the second story with the public museum 90 operating below. Champeau voiced assent to the idea of a marina lounge and to passing the  Minutes of the February 19th, 2025 Meeting of the Marina Committee - Approved 91 responsibility of the second story from the village to the Shadow Group. Champeau added that 92 the investment from the Shadow Group into a village asset feels worth forgoing the loss of 93 yearly rental revenue. Lienau and Werner discussed the need for two marina lounges, to which 94 Lienau responded that it seems unnecessary to have both a marina office lounge and a lounge 95 in the boathouse. Howson recommended a motion to Werner that the committee review 96 updated plans for the ground floor and second floor and see an updated market projection of 97 what revenue the second story rental operation could realistically generate. Werner questioned 98 how the committee would determine the next upstairs tenant and for how long the lease would 99 last. Lenau provided context on how the marina had rented the upstairs in previous years and 100 added that the marina advertised the rental listing to rental management companies, to which 101 none of them responded with any interest. From the marina management’s perspective, the 102 resources and time spent running a weekly rental operation out of the boathouse are not worth 103 it, therefore Lienau would recommend a seasonal lease. Blossom promised the committee that if 104 they want yearly revenue from the second story and require the Shadow Group to pay $15,000 a 105 year, for example, that the Shadow Group could raise and provide that amount of money. Grant 106 restated that the committee needs to decide on the second story’s use, given that previous 107 discussion has only focused on the Shadow Group’s use of the first floor. He cautioned against 108 relinquishing the second story to the Shadow Group as private space, given the negative optics 109 of exclusivity and the potential to permanently lose an asset. Schmelzer requested that the 110 Shadow Group return to the committee with plans for the second floor and conceptual 111 drawings for the committee to consider and vote on. Schmelzer noted that the committee needs 112 to decide if the second story is public or private so that plans can be drawn up accordingly. 113 Grant thanked Blossom for proposing alternative ideas regarding the best use for this village 114 asset. 115 116 c) Utilities Update 117 118 Schmelzer provided context and justification for the marina’s need to pay for a second sewer 119 connection. Schmelzer explained that based upon her conversations with the village’s legal 120 counsel and utility department, there are no exceptions that can legally be made to avoid 121 paying the monthly fees. Lienau outlined plans to use the boardwalk construction project as an 122 opportunity to connect the main water line from the marina office to the entirety of the marina 123 so that the marina will only have to pay fixed sewer charges on a single water meter rather than 124 two. 125 126 d) Seasonal & Transient Revenue 127 128 Lienau summarized the updated seasonal and transient revenue amounts shown in the meeting 129 packet and noted that the marina is tracking well in comparison to last year’s revenue. Duffy 130 inquired if management has found a cancellation policy to handle delinquent customers who 131 book several transient reservations and then cancel at the last minute. Lienau detailed how 132 management evaluates customer reservation history at the marina and takes this into account 133 when processing new reservations. Typically, management will limit a frequently cancelling 134 customer to three reservations until the boating season begins. Lienau added that he continues 135 to speak with other local marina managers regarding this issue. Werner noted the marina  Minutes of the February 19th, 2025 Meeting of the Marina Committee - Approved 136 should consider establishing a formal policy to show any customers who are frustrated and 137 doubtful over this reservation limitation. 138 139 e) Dock Repair & Rehab 140 141 Lienau updated the committee on the status of dock construction projects currently in progress. 142 Lienau noted that Summerset Marine Construction requires a twenty percent down deposit to 143 purchase material for their projects, which the marina has now paid. 144 145 f) Boardwalk Quotes 146 147 Lienau updated the committee with a quote to rebuild the boardwalk with wood which ranged 148 from $87,000 to $99,000 dependent upon the spacing of the stringers. Duffy and Lienau 149 discussed the importance of having higher quality and longer lasting wood with a warranty 150 included. Werner inquired about the cost of a concrete boardwalk to which Lienau responded 151 $229,000. Duffy inquired about using polymer/composite material. Lienau explained that using 152 this material would require nine inches on center frames and monthly chemical applications to 153 eliminate static electricity buildup. Lienau noted that following his conversations with the 154 finance director, both wood and concrete options are feasible based upon the marina’s current 155 fund balance. Grant noted that based upon the longevity of the wood and a yearly average 156 inflation rate of 3% across the next 20 years, the increased cost to replace the wood boardwalk in 157 the future should be considered. Werner assented to the wood option but questioned the 158 longevity of the wood compared to the concrete. Werner concluded that the concrete seems like 159 the better option, despite the better appearance of the wood. Grant added that in his experience, 160 many newer marinas are opting for the concrete option. Lienau seconded that fact based upon 161 the marina tours he and assistant manager, Jordan, attended in Fort Lauderdale, FL. Howson 162 joined the assent for the concrete option given its sturdiness and longevity. Duffy and 163 Champeau agreed with the other members in this sentiment. Lienau added that the concrete 164 will save the marina time and money in forgoing the weekly maintenance that a wood 165 boardwalk requires. 166 167 Grant motioned to allocate funds for the replacement of the wooden boardwalk with a concrete dock, 168 seconded by Champeau. Motion carried – All ayes. 169 170 g) Dredging 171 172 Lienau highlighted that the Army Corps of Engineers reported that the highest water level in 173 2025 will be 12 to 16 inches lower than last year. Lienau noted that three different areas in the 174 marina will need at least two feet of lakebed dredged off the top layer to accommodate this 175 lowering water level. The operation would be conducted under a maintenance dredging permit 176 that is currently in process with the DNR. The total cost to dredge the three locations would be 177 about $15,000, which is not currently in the budget. Lienau added that to do additional 178 dredging, the cost is $48.07 per cubic yard of material. Lienau shared concern about other 179 locations in the marina where lowering water levels may lead to decreased slip length and 180 advised that the committee consider budgeting more than $15,000.  Minutes of the February 19th, 2025 Meeting of the Marina Committee - Approved 181 182 Duffy motioned to allocate $20,000 for a non-budgeted item of “Maintenance Dredging”, seconded by 183 Howson. Motion carried – 4 Ayes, Grant abstained. 184 185 h) Review of Financials 186 187 Lienau noted that the revenue numbers from Item D on the agenda are more up to date than is 188 shown in the packet’s financial report. 189 190 Howson motioned to approve the marina financials as shown, seconded by Grant. Motion carried – All 191 ayes. 192 193 i) AMI National Conference Review 194 195 Lienau and Jordan noted highlights from their recent attendance to the AMI National 196 Conference & Expo in Fort Lauderdale, FL. 197 198 Agenda Item No. 6. Matters to be placed on a future agenda or referred to a committee, 199 official, or employee 200 201 The next meeting of the Marina Committee is scheduled for March 20th, 2025 at 4:00 P.M. via virtual 202 Zoom meeting. 203 204 The committee found consensus that the comments from Dokolas requesting the committee’s permission 205 to continue the nighttime astronomy tours be added to next meeting’s agenda. 206 207 Adjournment: A motion was made by Grant, seconded by Champeau to adjourn the February 19th, 2025 208 meeting of the Marina Committee at 5:30P.M. Motion carried – All ayes. 209 210 Respectfully submitted, 211 212 Samuel Jordan 213 Assistant Marina Manager