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DEEPHAVEN BOAT COMMITTEE

Wednesday, February 11, 2004

Minutes

Call to Order

Chairperson Bob Voyles called the meeting to order at 7:05 p.m.

Members Present

Bob Voyles, Steve Pavek, Oliver Arrett, Joe Ladner, John Gresens, Larry Parkhurst, Council Liaison Kim Crockett, City Administrator Dana Young

Members Absent

Ed Towey, Pete Onstad, David Paulson

January 14, 2004 Minutes

The Committee approved the January 14, 2004 minutes on a motion by Joe Ladner, seconded by John Gresens. Motion declared carried.

Reappoint Oliver Arrett

The Committee recommended the reappointment of Oliver Arrett for a three-year term of office effective until February 2007 on a motion by Joe Ladner, seconded by Steve Pavek. Motion declared carried.

Request to Lease a Boat for the 2004 Season

William Priesmeyer, 18977 Carsonwood Avenue, was present to request permission to lease a boat for the 2004 season. Mr. Priesmeyer sublet last year and is currently permitted at Dock Slip #130 at Carson’s Bay.

Bob Voyles stated that the reason Mr. Priesmeyer has been invited to tonight’s meeting is to address the Committee’s concern that Mr. Priesmeyer’s lease arrangement does not result in an abuse of the system whereby a lease is established between a Deephaven resident and a non-resident.

Bill Priesmeyer thanked the Committee for the opportunity to discuss his lease arrangement and stated that it is an "arms length" transaction and not an abuse of the system. He stated that over the 17 years that he has been on the waiting list, he has sold all his boats. He stated that he would be willing to buy another boat if required but preferred to lease a boat, at "arms length", with his business partner who no longer uses his boat. He stated that his business partner is a Shorewood resident but resides in Dallas for much of the week. However, he would still like to use the boat occasionally on weekends.

John Gresens stated his concern that a lease arrangement with a business partner may not be an "arms length" transaction. He stated that there is no way to test the lease since he knows the lessor. Bill Priesmeyer stated that his would be a legitimate lease that included a specific lease amount and specific conditions.

Bob Voyles stated that he is also troubled that the business partner is a friend that would have use of the boat. Oliver Arrett asked how Mr. Priesmeyer’s situation differed from a non-resident using a boat owned by a Deephaven resident? Bill Priesmeyer added that he believes the lease is a fair arrangement since he will be paying his business partner $2,000 for the lease of his boat for the season and he can rent a boat from Minnetonka Marina for around $3,000 for the season.

John Gresens stated that he would feel more comfortable with a lease arrangement if the right of use were eliminated. He added that he would feel even more comfortable if the lease were with an established dealer. Bill Priesmeyer asked if a lease arrangement would be permitted if it were with an established boat dealer? Bob Voyles stated that this arrangement would be fine with him. Joe Ladner stated that perhaps the arrangement should be with a commercial vendor. Kim Crockett added that this lease arrangement would also be permissible if the other party were a Deephaven resident.

The Committee recommended that apart from provisions for joint leasing between Deephaven residents, the term "lease" as recited by Deephaven Ordinance 900.01, Subd. 8, be defined as a written contractual relationship between a Deephaven resident and a third party that is registered with the Secretary of State to sell or lease watercraft in its ordinary course of business. The lease should not provide for any use by the lessor beyond reasonable inspection, maintenance and recovery. The recommendation was adopted on a motion by John Gresens and seconded by Oliver Arrett. The motion was adopted subject to a friendly amendment made by Joe Ladner to remove "Minnesota" before the statement "Secretary of State". Motion declared carried.

Subcommittee Reports

Representatives from each subcommittee provided an update to the full Committee.

Visioning & Long-Range Planning – Larry Parkhurst stated that this subcommittee did not meet.

Operational Issues – Steve Pavek stated that this subcommittee did not meet.

Financial Issues – Larry Parkhurst stated that the subcommittee met on January 22nd and developed the following list of ideas that the subcommittee should review or perform:

  1. Annual survey of area rental rates for "Lake Communities" for various water space types and sizes. Bob Voyles recommended that the subcommittee also survey area Yacht Clubs as well.
  2. Review annual marina budget, recommend changes to City Staff if any, and make Recommendations on budget to Boat Committee for approval.
  3. Prepare annual marina space rate recommendations for Boat Committee review and approval.
  4. Brainstorming ideas and possible alternatives relating to finances, marine fund structure, reserves, and long term funding uses.
  5. Perform an internal auditing function for the City and Council on behalf of the Boat Committee by periodically scheduling a time with City Staff to audit a selection of lease files, waiting lists, and other items to check compliance with marina ordinances.

Joe Ladner stated that the Marina Fund will now be establishing much larger reserves due to the recent rate increase and proposed that the finance committee should also determine how to spend these extra fund revenues. Bob Voyles suggested that the Operational Subcommittee might need to develop a Capital Improvement Plan for the Marina Fund and work with the Finance Subcommittee on the proposed financing of the Capital Improvement Plan.

Compliance & Usage Issues – Steve Pavek stated that the Compliance Subcommittee met and issued the following report on their discussion items:

bulletEligibility (Deephaven resident, Rental/Lease Agreements, co-ownership’s, etc.)
bulletVessel specification (size of craft on resource)
bulletAudits of titles, insurance verification and registration
bulletSpot checks (vacancy, seaworthiness compliance, further definition of seaworthiness, deputization of members)
bulletUsage monitoring ideas (stickers, sign in / sign out)
bullet"Turn-in" violators program
bulletPolice Report analysis

Procedural

bulletFaster response on filling open spaces
bulletInvestigate current process
bulletReview current forms of communication to Deephaven residents
bulletMake deadline recommendations

Goal

bullet

Continue to make recommendations for change or non-change to regulations as they pertain to usage, waiting and general specifications

John Gresens suggested that as a way to verify usage, it might make sense to have the police check each permit holder in to their assigned space, especially those on docks or buoys. Bob Voyles asked the subcommittee to establish timelines on their list of issues.

Role of Task Force

Kim Crockett stated that she envisions the role of the Task Force as going through the existing Committee structure and meets will be held with the Chairpersons of the Boat and Park Committees. She stated that the Task Force, after submitting numerous important recommendations to the City Council last year, have been left with the task of providing recommendations on a long-range vision of marina resources.

Joe Ladner asked if Task Force members would be joining the Boat Committee subcommittees? Kim Crockett stated that she did not envision that happening. She stated that the established committees are the Council’s residential advisers and did not think it would work to have Task Force members join each subcommittee.

Bob Voyles stated that the Boat Committee minutes will include updates on each subcommittee which will allow the public the opportunity to become involved in these issues should they choose to do so.

Adjournment

Motion to adjourn by John Gresens, seconded by Bob Voyles. Motion declared carried. The meeting adjourned at 8:20 p.m. The next regularly scheduled meeting of the Boat Committee will be held on Wednesday, March 10, 2004.