ASC Strategic Plan Ver 12 - Avalon Sailing Club...EXECUTIVE SUMMARY This is a Five Year Strategic...

ASC Strategic Plan 2014 Page i

ASC Strategic Plan V12

AVALON SAILING CLUB

Draft 4

2014

FIVE YEAR STRATEGIC PLAN

Old Wharf Reserve, Hudson Parade Clareville Beach, Pittwater

Clubhouse Phone: 9918 3637 (Sundays only)

P.O. Box 59 AVALON BEACH NSW 2107 ABN 45 000 176 509

www.avalonsailingclub.com.au

ASC Strategic Plan 2014 Page ii


EXECUTIVE SUMMARY This is a Five Year Strategic Plan covering the history, financial position and future plans for Avalon Sailing Club (ASC), a sailing club located on Pittwater NSW which is now 75 years old with a 50 year old clubhouse. We are a family-oriented sailing club, situated at Clareville, on Pittwater, part of Sydney's Northern Beaches area. This year we have approximately 400 participants in the club from 145 family/couple and individual registrations. Of this there are over 100 participating in the centreboard fleet and 50 yachts (and other craft) of which 20 are registered for racing. The purpose of our club is “Fostering the encouragement promotion and teaching and above all enjoyment of sailing on the waters of Pittwater.”’ The key values which have been used to guide the strategic plan are: safety, fun, inclusiveness, family involvement and an informal, volunteer culture where lending a hand and having a go is what keeps the club alive. Our primary goals and objectives for this five year plan are:

• Providing facilities (the clubhouse and deck) which allow us to achieve our primary purpose.

• Identifying actions which attract and retain members for the sustainability of the club. • Managing our income and expenses so we maintain our assets but are still able to

offer sailing at a reasonable cost. • Ensuring we do not implement changes to the way the club is run which we may

regret later. Issues facing the club include:

• Competition from other clubs and recreational activities, reducing membership. • The difference between our expenses and revenue means little or no contribution to a

sinking fund or excess cash available for major capital works. • Increasing fees is considered to be high risk for causing a reduction in membership

base. • An ageing clubhouse and rigging deck that is in urgent need of repair/replacing. • Our volunteer culture is a strength and weakness; it involves a lot of people but there is

a risk of burnout as it takes a lot of energy to run our club’s program in a safe fashion.

Safety is a key priority of our club and ASC has a risk management plan which is reviewed annually. Our procedures are being progressively updated to reflect our knowledge and experience as it is gained.

Conclusions from our SWOT, budget review and sailing review are as follows:

• There is no change to our purpose and we will continue to pursue our primary reason to exist which is the enjoyment of sailing achieved by a volunteer culture where lending a hand and having a go is what keeps the club alive.

• We have a wonderful asset, history and track record with a good future outlook. • We need to have a step change in revenue of $50,000 per year, over the term of this

plan, to upgrade our main asset (the clubhouse and deck) which is deteriorating. • Our fees are reasonable for what we offer relative to other clubs.

ASC Strategic Plan 2014 Page iii


• We are different to surrounding clubs in that we offer sailing to a wide age group and are supported by a fully-volunteer culture.

• Volunteer burnout is a risk we need to manage. • We have completed a review and are proposing that we continue to manage the mix of

blue/red/gold dinghy sailing to ensure we have continuity and carry-over from year to year. We also need to build up the yacht racing and cruising fleets.

Recommendations for going forward are as follows:

• ASC continues as a sailing club with no change to its purpose or values or any significant change to the sailing activities that we are currently doing.

• We implement a series of revenue actions so our revenue (net of cost) is increased by a least $50,000 per year. The main actions are tax free donations, grants, renting of the clubhouse and then a series of smaller (but cumulatively valuable in total) initiatives which will bring in more money as well as grow our membership.

• ASC commits to implementing our $300,000 Master Plan to be completed within a nominal five year period. This includes replacing the deck, moving the stairs, upgrading the ladies toilet and replacing the balcony.

• Rotation of Main Committee members and Management roles taken on by club members will be an ongoing process to diversify ideas; encourage participation and plan for succession so member burnout risk is reduced.

• Progress of this Strategic Plan is reported at each monthly committee meeting to facilitate follow-through.

ASC Strategic Plan 2014 Page iv


TABLE OF CONTENTS

EXECUTIVE SUMMARY Page No.

1.� INTRODUCTION 1�

2.� WHO WE ARE, PURPOSE AND 5 YEAR OBJECTIVES 2�

3.� HISTORY AND CLUB ACTIVITIES 4�

4.� SWOT 7�

5.� SAFETY AND RISK 9�

6.� GOVERNANCE AND ADMINISTRATON 11�

7.� MASTER PLAN 13�

8.� SAILING REVIEW 15�

8.1.� Centreboards: 16�

8.2.� Yacht Racing: 17�

8.3.� Yacht Cruising 18�

9.� BUSINESS MODEL 20�

10.� ACTION PLAN 25�

ASC Strategic Plan 2014 Page 1


1. INTRODUCTION Key Points

This document is a Five Year Strategic Plan for the Avalon Sailing Club.

It will be reviewed annually to ensure we are on track to achieve our goals.

The primary need for the strategy is that our main asset (our clubhouse) is over 50 years old and needs substantial capital expenditure.

The cost of this is beyond the annual revenue we have historically received and therefore needs to be considered over a longer time period.

This document describes a Five Year Strategic Plan for the Avalon Sailing Club. It was completed in early 2014. The scope can be summarised as follows:

1. Confirm and document our values and purpose. 2. Document the future (i.e. from where we are, to where we want to be and how we will

get there). 3. Analyse the historical costs and propose a budget for the current and next year. 4. Review our projected revenue and document plans to maximise the source and

effectiveness of this (e.g. tax deductions, events and weddings etc.). 5. Document our risk register. 6. Do a SWOT analysis of our club (i.e. strengths, weaknesses, opportunities and

threats) 7. Produce an action plan to resolve any issues identified in the SWOT. 8. Prepare a Master Plan for the club assets (building, deck boats etc.) aligned to capital

expenditure and prioritise expenditure over time. A subcommittee was formed to complete the task and included Paul Westcott (Chairman), Ian Craig, Brett Stapleton, David Hyde, Lindal Jeffreys, Jean Cross, Toni Fox, Ross Trembath, Ralf Moller with input also from Jan Scholten, our Commodore. Their input is acknowledged with thanks.



2. WHO WE ARE, PURPOSE AND 5 YEAR OBJECTIVES Key Points

We are a family-oriented sailing club, situated at Clareville, on Pittwater, part of Sydney's Northern Beaches area.

Our purpose is: “Fostering the encouragement promotion and teaching and above all enjoyment of sailing on the waters of Pittwater”.

The objectives of this plan are:


• Identifying actions which attract and retain members for the sustainability of the club.

• Managing our income and expenses so we maintain our assets but are still able to offer sailing at a reasonable cost.

• Making sure we do not implement changes to the way the club is run which we may regret later.

We are a family-oriented sailing club, situated at Clareville, on Pittwater, part of Sydney's Northern Beaches area. The club caters for those at the beginning of their junior dinghy sailing careers to those enjoying yacht sailing in later years. The Club promotes all aspects of sailing: racing, cruising and just having fun in boats. We aim to help people develop a lifelong interest in sailing and endeavour to provide a strong developmental, coaching and mentoring environment in support of all members. This year we have approximately 400 participants in the club from 145 families/couples and individual registrations. Of these there are over 100 sailors in the centreboard fleet and 50 yachts (and other craft) of which 20 are registered for racing. Our purpose is: “Fostering the encouragement promotion and teaching and above all enjoyment of sailing on the waters of Pittwater. “

1. The key values which have been used to guide the strategic plan are: safety, fun, inclusiveness, family involvement and an informal, volunteer culture where lending a hand and having a go is what keeps the club alive



Our primary goals and objectives for this five year plan are:


• Identifying actions which attract and retain members for the sustainability of the club. • Managing our income and expenses so we maintain our assets but are still able to

offer sailing at a reasonable cost. • Making sure we do not implement changes to the way the club is run which we may

regret later.

Our club deck in action



3. HISTORY AND CLUB ACTIVITIES Key Points

We have a proud history going back 75 years.

Founded in 1938, with the clubhouse built in 1958, the Club offers a small, friendly environment for people of all ages and sailing interests.

The Club promotes all aspects of sailing - racing, cruising and just having fun in boats.

Avalon Sailing Club Clubhouse sits astride beach and water with commanding views up and down Pittwater. Visiting the Clubhouse for the first time and looking out on the view is a memorable experience and one that seems to bring people back. Founded in 1938, with the clubhouse built in 1958, the Club has a proud history offering a small, friendly environment for people of all ages and sailing interests. We are often asked "what sort of Club is Avalon, what classes do we sail and what are the aims of the Club?" The Club is now incorporated and is limited by guarantee. However, before the Second World War it was called "The Avalon Sailing Club". It all started when an enthusiastic band of sailors grouped together on Clareville Beach and started to race VJs and, later, VSs and Moths. A reading of the early Minutes of the Club is interesting in that a surprising number of the famous racing names of today had their early training with Avalon. It can also be seen that the grandparents and parents of many of the young people sailing today are mentioned as being either members or assisting with the administration of the Club. As the number of boats racing with the Club grew in the late 40s and early 50s there was an increasing need for a Clubhouse. It was proposed that the Clubhouse should be erected at the southern end of Clareville Beach, but this site was rejected as being unsuitable. Other sites were examined and finally Council permission was obtained to build on the present site in 1956, subject to several conditions, which still apply. Club members were responsible for the design, finance, and construction of the Clubhouse: the only contractors being those engaged for electrical installation, plumbing and drainage.



The objectives for which Avalon Sailing Club was established are stated in the Memorandum and Articles of Association. These objectives are to:

• Acquire and take over a growing concern, the affairs and all or any of the property, goods, chattels, credits, debits, money, books, documents and other assets and liabilities of Avalon Sailing Club.

• Foster, encourage, promote, and teach sailing on the waters of Broken Bay. • Cooperate with other clubs in the conduct of inter-club racing and social events. • Affiliate or cooperate with any other body or association having for its object the

encouragement and development of sailing. • Control all conditions in Club races.

It is fair to say that the Club is what it is today due mainly to the continuing support of parents and their children. It is not surprising, therefore, that the Club has become known as a 'family' Club which has as its basic ideals the teaching of sailing to the young. As the years went by, the parents, having encouraged their children to sail and race competitively, decided that they would like to 'have a go' themselves, so a progression of classes for larger boats began to appear at the Club. This evolved to the present day Yacht Division and Cruising Division. The racing program for the Yacht Division is designed to allow members to compete in a race every Sunday, covering several trophy series; should a member only wish to race one day per month, they can still be actively competitive in that one particular series. Applicants for membership to the Club are asked to acknowledge that they will assist in the running of the Club which means - once or twice during the season - assisting in either the canteen, on the starter's boat, on one of the various rescue boats or on the rigging deck. The normal racing day is Sunday generally from mid-September to mid-April. There are three categories of membership - family, adult and junior. No application for junior membership are accepted unless parents are prepared to assist in the running of the Club, as set out above. The Club has always conducted its activities by way of voluntary labour under the control of the elected Committee. The canteen operates on all sailing days. The Centreboard division includes training and racing, the predominant classes being Manly Junior, Open BIC, Flying 11, Spiral, Laser and 29er. Children around the age of 7~8 often start in our "Blue" "learn to sail" group before progressing to Red & Gold.

The Club has over 50 yachts ranging in size from 20ft to 40ft...not all race but there is a very healthy fleet each Sunday competing fiercely for various trophies. We also have an organised cruising Division and club moorings available for members tucked away in delightful spots around Pittwater and Broken Bay.



Those who favour a less competitive approach to sailing enjoy getting together and cruising in company on the waterways of Broken Bay and further afield. We believe we are one of the few sailing clubs in the Sydney area providing this environment - with the emphasis on family involvement, making good friends, and offering enjoyment with a wide variety of sailing activities. Club members cover a broad range of sailing interests. Some just like to "mess about with boats", others are serious racers. Some prefer the pleasures of cruising to a beautiful location and rafting up with friends on one of the Club moorings. Some go further afield and cruise the coastline while others compete in major races like the Sydney to Hobart. We have a very active Junior program with training races each Sunday and regular training camps. Many who have graduated from Avalon Sailing Club have gone on to become champions. The Club committee promotes a strong social calendar: Monthly BBQ's on the deck, onshore cruises, picnics, dinners and the like. Avalon Sailing Club also works with other Clubs to assist in making our sport enjoyable for everyone. Examples include: Centreboard combined fleet Sunday racing with RPAYC & BYRA, combined yacht twilight racing with Palm Beach Yacht Club and Australia Day.



4. SWOT Key Points

A SWOT analysis was completed as part of this plan.

We have used this process to focus on what actions are needed to promote our strengths and conversely address our threats and weaknesses.

As part of the planning process we a representative cross section of members to participate in a SWOT – Strengths, Weaknesses, Opportunities and Threats. The more important strengths are:

• Club facilities – location, view, large rigging deck, club moorings close by • Training and sailing programs • Club services – tender, canteen, boat boys • Volunteer participation and commitment • Informal, friendly club atmosphere • Knowledge and skills of members • Volunteer base • Strong committee

The club also has a number of recognised weaknesses. Some of the important weaknesses that are being addressed are:

• Decline in infrastructure impacting safety, functionality and appeal • Current financial situation relative to planned future needs • Reliance on volunteers for asset management, maintenance and repairs & volunteer

‘burn out’ – need to spread the work load amongst more members • Low utilisation of assets on weekdays and most Saturdays • Lack of disability access

With this in mind, some recognised opportunities are:

• Renting the clubhouse so utilisation is increased • Tax deductible contributions via ASF • Grow membership base • Other/improved revenue streams • Review and enhance sailing activities and sailing programs to grow participating

sailing members • Better training of volunteers • Improved yacht race management • Build sub committees from new members instead of the same people



The recognised main threats to the business can be summarised as follows:

• Aging clubhouse. • Potential decline in membership and fleet sizes - impacting income, club culture and

services • Other Pittwater clubs offering better package of fees, facilities, services and

programs/activities • Mismanagement of a safety issue could put club at risk • Economic contraction • Changes to use of club due to council regulation changes

Our centreboard fleet



5. SAFETY AND RISK Key Points

ASC has a risk management plan which is reviewed annually.

Our procedures are being progressively updated to reflect our knowledge and experience.

Our funding does not allow us to do everything now so prioritisation is important.

The club operates under an aquatic license issued by Roads and Maritime Services (RMS). Documentation to achieve this license includes a risk management plan (including a safety risk assessment) and an incident management plan covering both yacht and dinghy racing. The clubs operational procedures and rules for sailing activities are based on controls for the risks identified in this risk register. The safety risk assessment is reviewed by members of the Committee each year prior to submitting documents for renewal of the aquatic license. The annual review includes revisiting controls for each risk and the recommended actions from the previous year. The risk register is updated to reflect changes in risks and procedures are rewritten if necessary. Financial, strategic and operational risks other than safety risks are not required for the aquatic license and so are listed on a separate risk register. This risk register is used for planning and budgeting. Safety risks which have implications for budget planning are transferred to this general risk register. Actions taken in 2013-2014 as a result of risks recognised in the safety risk register are:

• rebuilding the entrance walkway • upgrading the items carried in response boats to cope with all scenarios identified • purchase of defibrillator • introducing and enforcing the rule that all drivers of club boats must hold a boat

license • running a training course for response boat drivers and others • purchase of a hand cart to reduce lifting done by boat boys • Installation of a ladder so boat boys can get from boats to deck at low water

Additional safety controls identified but not fully implemented:

• The possible need for prop guards as an additional precaution against prop-strike • Fire safety upgrades (including additional stairs) • Bringing the balcony into compliance with the building code • More structured training for all response boats drivers who may be involved in rescue

activities • Increased first aid training and appointment of first aid trained volunteers each week



The general risk register was commenced in 2014 so there are no completed actions to report for the 2013/2014 year. Our start boat - Lucinda



6. GOVERNANCE AND ADMINISTRATON Key Points

ASC is a completely voluntary club.

Decisions are made by the Main Committee which is elected each year.

Jobs are completed by volunteers who need not be a committee member – this involves a lot more people in the club activities.

ASC is a completely voluntary club. Volunteering and ‘helping out’ when asked is part of the core culture and ethos of the club. All management and operation of the club is done on a volunteer basis by all members and nominated parents of junior members. This covers everything from the General Committee, the various sub-committees, club maintenance and the conduct of the Sunday sailing activities. Our organisation structure is shown on the following chart. The General Committee sets the overall guidelines and operating rules of the club, which are delegated to the 'Officer of the Day' (OOD) for Sunday club activities. The OOD is usually a member of the General Committee. The key to the efficient running of the club on our sailing day is the duty roster system. We rely heavily on the cooperation of all members to ensure that the system runs smoothly. The OOD has complete responsibility for the management of all aspects of the operation of the Club on sailing days. Decisions relating to race matters will be made by the OOD in consultation with the various Division Coordinators. The OOD will also be overseeing all members rostered for duty. The adults rostered for Blue, Red and Gold (AM/PM) duty, in consultation with the OOD, manage the racing and the powerboats ensuring that all drivers are aware of their responsibilities and the requirements of the rescue boats. It is ASC policy that all drivers of ASC club boats should have a current NSW powerboat boat licence.



MAIN COMMITTEE

MEMBERS

CLUB MANAGEMENT ROLES

COMMITTEE

JUNIOR GOLD RADIO MAINT

STOCK BAR

ADVERTISINGAND PUBLICITY

WELCOME

CENTRE BOARDYACHT RACING

VOLUNTEER MANAGER

FUND RAISING SPONSERSHIP

ROSTER CORDINATOR WEBSITE SOCIAL CO-ORD CLUB HISTORIAN EXTERNAL RACKSMAINTENANCE

MARKS AND TACKLE

RESCUE BOATSMAINTENACE

REGATTAS

CORDINATOR

SAFETY AUDITORS

KEYS

JIB SHEET EDITOR

REGISTER

BOAT BOY ROSTERSAFETY

CB HANDICAPPER

JUNIIOR REDJUNIOR BLUE

CENTE BOARD

NEW MEMBERS

CRUISING

CANTEEN MOORINGS CHILD PROTECTION TROPHIES CLUB HIRECRUISING YACHT COMMITTEE MEMBERSHIP LLIQUOR LICENSEE CENTREBOARD CLUBHOUSE

YACHT HANDICAP INTERNAL RACKS

IMMEDIATESECRETARYCLUB CAPTAINPAST COMMODORE TREASURER REAR COMMODORE

Avalon Sailing Club Organisiation Structure

COMMODORE

IT MNAGER

GEN COMMITTEE

ASSISTANT

VICE

ACCOUNTS

COMMODORE



7. MASTER PLAN Key Points

Our clubhouse is 55 years old and is tired. The deck needs replacing and aspects of the building such as fire stairs, toilets and balcony need upgrading to be compliant with building codes or are simply worn out and beyond simple maintenance.

Previous work has identified the work needed and so approvals are already in place and the main issue is funding.

The overall estimate is between $300,000 and $400,000.

Depending on funding this may take between 5 to 7 years to complete.

A team within the strategic planning committee have evaluated the clubhouse building as well as the deck and formulated a “Master Plan”. This Plan is made up of a series of smaller projects which, when completed, will have the clubhouse set up for some decades. That is not to say there will not be a need for ongoing maintenance! We will need to prioritise the works and will spend only what we can generate. We have engaged a structural engineer. Good news is that the deck foundations are sound – this a huge cost saving. However the tops of the piers are corroded so they will need to be cut off and capped. The deck will not fall down. However, the deck surface is another issue and is a current hazard. It will need continuous fixing to keep it safe until replaced. The deck repair can be staged in three logical parts. All Statutory planning and construction certifications are now in place. In 2009, Council approval was sought by the Development Application process for two projects – (i) the replacement of the old finger wharf with a pontoon and upgrading the rigging deck, and (ii) upgrading of the clubhouse including new entry, disabled access and facilities, renovation of female toilets, new committee room and upgrading of balcony balustrade. Approvals were issued for both DA’s in 2010. Substantial commencement has been achieved for both approvals by virtue of the installation of the pontoon, and the construction of the new entry ramp and foyer respectively. There is therefore no statutory time limit for completion.



Summary of Master Plan is: New stair (for safety and fire protection) $20,000 Entranceway Stage 2 (disabled toilet and storage) $20,000 Ladies toilet $30,000 Balustrade and committee room $40,000 Deck – can be done in three parts $150,000 to 240,000 Boat motors etc. $15,000

Sub total $280,000 to 370,000 Contingency (10 percent) $28,000 to $37,000

TOTAL $308,000 to 407,000

The deck with marquee



8. SAILING REVIEW Key Points

ASC has three sailing groups covering yachts (cruising and racing) and centre boards.

Our main activities are on Sundays.

We have completed a review and are proposing that we continue to manage the mix of blue/red/gold dinghy sailors to ensure we have continuity and carry-over from year to year. We also need to build up the yacht racing and cruising fleets.

ASC has three main sailing activities:

1. Centreboards. This is divided into three divisions Blue Division: Conducted each Sunday between 9:00 and 11:30 where children learn the basics of safety and sailing via a 3-stage program using the club’s fleet of Puffin Pacers, Nippas and Manly Juniors. Red Division extends the basic skills gained in Blue Division and provides a stepping stone to racing in Gold Division. Red Division comprises of tuition, both in the clubhouse and on the rigging deck, plus on-the-water coaching. Some groups in Red will also be doing some racing during the morning, later in the season. Gold Division: Each Sunday Avalon Sailing Club organises racing for Manly Juniors, Flying 11s, Spirals, Lasers, 29ers and Open Bics. Training is provided for the Gold group on "camp style" weekends" that include Friday afternoon, all day Saturday and Sunday afternoon, or as otherwise arranged. Additional parent-supervised sessions may be conducted during the week.

2. Cruising is defined in the dictionary as “a sailing to and fro: a wandering voyage for pleasure or health”. To that end, Avalon Sailing Club has a programme of cruises which offers a different destination approximately once a month. As well, Cruisers are encouraged to participate in a number of occasional low key races which include Opening Day, Challenger Head, Two Island Race, Crews Race, Winter Series and Family Series. These events are usually followed by social activities like a BBQ on the Club’s deck. The Club owns and maintains seven moorings in Pittwater and the lower Hawkesbury / Cowan areas for the use of financial members of ASC.

3. Yacht Racing. The racing calendar has something for everyone. The main racing series are the Retriever Series, the Bluewater Shield, the Koolong Series and the Quartet Bowl. Family Races are a great introduction to racing and is followed by a BBQ on the deck. There are also single day events, such as Opening Day, Australia Day, and the Two Island Race. Also included in the racing calendar is the annual Don McLachlan Etchells Regatta: A regatta held over two days in February or March open to "wet" (antifouled) Etchells only.



We have reviewed the current sailing programme and reached the following conclusions:

8.1. Centreboards: 1. Continue the single-hander strategy of promoting BIC, Spiral and Laser classes.

2. Continue two-up strategy with MJs and F11s and look to establish a new class

primarily for teenagers, but also for adults. to move into after F11. Cherubs are the current preference to explore.

3. Continue the Blue, Red, Gold groupings and progression. We need to manage the mix of Blue/Red/Gold to ensure we have continuity and carry-over from year to year.

4. Look to hold two regattas each year – in 2014/15: BIC and MJs.

The size of the clubhouse dictates the number of centreboard boats that can be stored, and therefore the number of sailors. Numbers have been consistent for many years and are close to capacity. The key is to get new sailors into Blue, then ensure the experience is a good one so that our retention is high for those who progress into Red and then Gold. There is a huge demand for Blue, and we could attract higher numbers, but experience shows that we do not have the resources (dinghies, support boats, trainers) for more than 25 – 30, and when we have had higher numbers retention rates were low. What we do today appears to be working well – keeping it up means ensuring that we can keep getting parents involved with each new group that comes into the club. We can do more to promote direct joining for Red & Gold sailors, but are limited by rack capacity in the club house. Many parents of children who are sailors would like to participate in sailing activities, both in the centreboard and yacht divisions. We can do more to promote crewing on yachts, and perhaps make Puffins, Spirals & Lasers available either on a rental, training or organised event basis. Up until a few years ago, “training camps” have generated significant revenue for the club. The most successful were held when there was no Blue group and no competitive programs at RPA. When training camps have been run concurrently with Blue & Red groups, resources have been dedicated to training camps resulting in no Blue or Red group activity on those weekends. The camps have been promoted primarily to attract non-members, giving them “a taste” of sailing at ASC, in the hope that many will sign up for Blue or Red in subsequent years. Keen Blue & Red group sailors have seen the camps as a kind of “boot camp” to accelerate their skills – however the conflict has been that the price of a two weekend training camp is not dissimilar to a full season in Blue or Red, and weekends of sailing are lost to paying Blue & Red sailors. Training camps also require many volunteer resources to run, most of which have been provided by Blue & Red parents. Perhaps we should offer two types of training camps in the future:

1. Those aimed at non-members, primarily as a source of revenue and to recruit future members. Ideally these should be run at a time that doesn’t conflict with regular Blue & Red Sunday program like School Holidays.



2. Those aimed at Red & Blue sailors, primarily to accelerate their skills, but also have some fun providing a bonding experience similar to regattas that should also increase retention.

8.2. Yacht Racing:

1. Increase adult and family membership in all forms of yachting - whether cruising or racing.

2. Increase revenue through a larger membership and greater participation rate in other

fee generating events.

3. Encourage active club participation by new members.

4. Improve members racing and boat handling abilities which will lead to their increased capability to handle difficult conditions and ultimately their own safety.

We currently run 4 series of which 2 are scratch starts and 2 are handicap:

• Retriever • Quartet Bowl • Blue Water Shield/Koolong • Family Race

There are also a number of one off/novelty races being Two Island, Crews Race and Opening Day. In addition ASC runs the Australia Day Regatta and ad-hoc Invitation Days. The Australia Day Regatta typically has very low attendance from ASC yachts and the Invitation Days have been hit or miss depending on weather etc. ASC also has also combined its Twilight race with PBYC. This gets 1 to 3 ASC yachts. Survey data has revealed that most members want to stick to the 4 series format, although not nearly as many actually compete, so the challenge is to achieve the above objectives while running the multiple series and formats. Of the over 50 yachts on the register 21 pay a race fee. Of this 21 around 13 are regular competitors. Of this 5 are Etchell Class yachts with the balance being Cruiser/Racer type with a couple being classified as Racer/Cruiser. Opportunities to increase membership and participation include:

• More “Passage” type races. The Challenger Head Race generates a lot of interest on a 2 year cycle. Perhaps some short races around Pittwater that terminate up the river where anchored raft-ups are possible. Encourage our two large multi-hulls as “motherships” for those yachts with no accommodation.

• Combined Club Events. • Information nights, club organized “”Safety at Sea” course, Licensed radio courses,

Shipwright Q&A (Possibly Mark Barry-Cotter from Bayview Slipway, may be interested in promoting his business), Coaching days as provided by Jan.

• To grow niche class groups. The Etchells are the best example of this. These boats provide cost effective racing in an almost one design class. (Suggestion would be to showcase one or two boats as a case study, including running costs, for prospective members/sailors with bios of the people involved and how they came to be in an Etchell. Promotion of the fact that ASC has a tender service would be very important to this type of prospective owner.)



• The other niche group we have seen is the Couta Boat, which fits well with ASC although we would see this more as a Regatta Format rather than Sunday racing.

• A Permanent Starter. The current arrangement of OOD and that of Yacht Coordinator effectively removes at least 1 yacht per week from our fleet. It also has the knock on effect of providing us with an inconsistent level of race management which has a negative effect on retention.

• Club Promotion. Richard Rasdall has previously done a lot in this area. Need to revisit some of these as a club. Previous promotional activities have included:- Cockpit drops to approximately 450 yachts moored between Careel Bay and Salt Pan Cove, print advertising and street banners at the top of Newport hill.

8.3. Yacht Cruising ASC publishes an annual Cruising Calendar of events. These events occur approximately once a month. The majority are overnight affairs based around the Club’s moorings and other inshore destinations. However, occasional longer trips to the Sydney Harbour and even farther afield (Port Hacking, Lake Macquarie even Broughton Island) occur. As well, there is an irregular group of ASC yacht owners who sail casually on a Wednesday, using Club moorings as the weather and whim takes them. Cruising with the Club (and the use of Club’s cruising moorings) attracts no additional fees over the Boat Ownership and Club Membership dues. Calendar events are supported by a regular core of 5-6 ASC boats. There are an additional 6-7 boats who join these events occasionally. For many of these people, cruising is the only reason they are members of ASC. Each cruise averages 3-4 boats with the Challenger Head/Bitter End event and Progressive Dinner (at Coasters Retreat) traditionally the most popular. BUT at least one cruise a year is cancelled due to lack of boats. There is some cross-over between ASC yacht fleets with some racers occasionally cruising and some cruisers occasionally racing. (Cruisers are entitled to enter Family Day series; Winter series and some one-off races without paying an additional race fee. There is no fee for racers to cruise). Only one yacht participates fully in both fleets. There is also a significant number of ASC boat owners who indicate an interest in cruising but do not cruise with the Club. These are: a number of active members whose other commitments (young family etc) make it too difficult; those who are only interested in racing (some boats are unsuitable for cruising); and ASC members who use their membership to gain access to the Club’s cruising moorings but don’t participate in organised cruising or any other aspects of the Club’s community. Thoughts for the future:

1. There is room to grow the ASC Cruising Fleet and anyone interested in cruising would be warmly welcomed. But with a larger fleet, some events would need to be “redesigned” to cope. eg. we already have to rely on members using their non-ASC memberships to have enough moorings for the popular Progressive Dinner at Coasters Retreat.

2. Promote further cross-over between the Cruising and Racing fleets to build both

fleets.



3. Design events that are more “family friendly” to encourage a wider take-up by existing Club members… the annual Soup and Fire Night at Coasters Retreat is a good example of a family friendly event, the Progressive Dinner is not.

4. Add value to existing events to make them more appealing. The recent Christmas

Cruise challenged participants to dress up boats with decorations and lights; wear Christmas-themed clothing; and contribute to community dining on the beach.

5. Actively encourage more ASC boat owners who are nominally “Cruisers” to participate

in Club events.

6. Provide and promote added value for Cruisers (and other Club members), such as a “Ask a Shipwright Night” at the Clubhouse. This is already a stated intent but only the “VHF refresher” has eventuated.

A note of caution: Dramatically growing the ASC Cruising Fleet from outside the Club should be considered carefully with due regard to the number of the Club’s cruising moorings and the limited potential to expand this facility.



9. BUSINESS MODEL Key Points

History shows that our revenue and costs are about in balance with insufficient left over for capital works, or to be set aside for future capital works.

We do not believe there are many opportunities to cut costs by a significant amount.

Our suggested budget next year is $140,000; this assumes that we can cut costs by the equivalent of a CPI increase.

There are many opportunities to increase revenue.

We believe it is possible to increase revenue by $50,000 per year by implementing a series of initiatives

Without using our clubhouse more (i.e. renting for weddings and other events) it is unlikely we can achieve the $50,000 per year that we need to offset capital works.

We have identified a series of recommendations to improve our budgeting process.

The current Business Model which the Club operates under has evolved over many years. The Business Model itself is quite simple in its construct and it is reasonably effective except that there is a historical weakness where insufficient funds have been put aside in the past (in the form of a “sinking fund”) to support required major capital works. The philosophy has been to keep fees reasonably low to encourage membership which has had a result that each year there is not a lot left over to put aside in a “sinking fund”. There are three components to the business model:

1. Revenues from membership fees, moorings, boat storage; fund raising functions etc.

2. Expenditure which includes fixed costs such as insurance, registration, rates and the like as well as variable costs such as fuel, electricity and maintenance.

3. Capital works (allowed for in our accounts as depreciation) which covers items such as outboard motors; major building works; start boat provision etc.

A high level review was done of our finances, budget and costing process as well as our current business model. The following conclusions were reached:

1. We need to rapidly appoint a successor for our current Treasurer so that someone is trained up in the near future.



2. On our capital works projects, we don’t know the costs until too late. For capital works we need to ensure that a single responsible person takes accounting ownership and all receipts go to that person first so there is a control of expenditure before it is too late.

3. We have not put aside a “sinking fund” or separate account to date for major capital works such as the deck.

4. We do have a reasonable bank balance. As of December this was $175,000. However the pattern of our cash flow is that we get most of our income early in the season and then none later in the season, but continue to have ongoing expenses. A rough calculation is that we will finish the financial year with a balance of approximately $70,000.

5. The moorings are self-funding; the mooring payments we take cover the club moorings (like Lucinda) and the cruising moorings.

6. The canteen generates a profit. Boat boys are paid from the income and a remaining small amount is banked each month.

7. Social events typically appear to be cash neutral – but it is noted the 75th ended up with a $20,000 profit from the raffle.

8. Our budget process needs improving. In the past this has been CPI on the previous year which is OK but probably not that well documented and not a lot of accountability. It should also be noted that the CPI does not necessarily reflect the club’s actual cost base.

9. There are no significant areas to cut costs. A couple of examples that are possible include no financial audit and continuing to be diligent in all areas of expenditure. Overall the savings are not large – maybe $5,000 per year. We do not generate enough spare cash each year for major works and therefore we need to consider creative ways to boost our income.

10. We need to develop a club budget and report against it. 11. We should allocate cost centres so various club members who are managing the

club functions can monitor the costs e.g. Canteen; social; centreboard (to include support boats and training) moorings etc.

12. Deliver an overview of the accounts at each committee meeting e.g. bank balance; major bills and anything financially material worth noting.

13. Grow our membership as much as we can. With our considerable fixed costs any incremental membership revenue is almost all directly to profit.

There are many possibilities to increase revenue and the following Table is a summary of options considered.

ITEM ESCRIPTION and COMMENTS REVENUE

1. Tax deductible donations

Use the facility with Sport Foundation to promote donations which are tax deductable and are quarantined so the funds are only used for that purpose. This would replace the volunteer levy.

Hard to estimate – range is $10,000 to $20,000k per year. This needs to be every year during the plan which may be difficult

2. Additional members

Additional memberships (via better promotion/marketing of club; identifying unique offering; couta fleet etc.)

Each member is say $500/year grow 4 per year each year is $2000/y

3. Additional moorings

Good incentive, but there are limited moorings! We should action applying for and get as many as we can.

Say 1 per year = $300. More of a member benefit as we have to pay for the mooring so not all profit.



4. Alcohol sales Encourage members to buy from the club and not bring and promote this each Sunday, at functions and Wed nights.

$50 per week profit = $2500

5. Adult sailing lessons Run classes on someone’s yacht. We would need an

instructor and a yacht. We would be competing with commercial groups and overlaps with yachts needing crew.

Maybe 3 persons at $300 for a few lessons? $1000?

6. School Sailing

Pittwater high for example where they use our venue and boats for a sports activity. $25 per person, 6 persons , 10

weeks = $3000

7. Sailing camp In the past this has made money. Not sure of details or club effort.

$10,000 has been quoted. Needs 10 kids at $500 two times to make this.

8. Storage of private craft at club (SUP, dinghies etc.)

This already earns us $14000 with external/internal dinghy racks and for SUP. Limited growth due to the size of the club.

Another 5 x $200 = $1,000

9. Rent clubhouse for activities

Yoga, art etc. on an hourly basis $35 per hour 3 per week 40 per year = $4000

10. Rent clubhouse to members

Covers rent to members at a lower rate. 5 per year at $500 = $2,500

11. Events (weddings etc.)

Refer to cloud 9 event management proposal. This is net of cost and assumes 1 per month. Maybe different rates for winter ($1500) week days ($2000) and Saturday $3000) so impact is a premium for busy periods. Event detail covered in a separate committee proposal. We also need to consider doing it ourselves or contract out.

12 per year at $2000 = $24,000

12. Corporate Christmas functions

Concept noted in Richards memo – marquee stays up for two weeks and we rent at lunchtime for corporate functions. Busy but for a defined period

Say 8 functions at $1500 = $12,000

13. Activity based fees

Understand our costs and adjust so “user pays” and make sure all our costs make a 10% profit. E.g. each activity charges cost plus 10%. If our cost base is $150k we should therefore make $15k profit.

$15,000 per year

14. Canteen This makes a profit i.e. pays costs and the boat boys Opportunity to increase prices? $1000 per year -

15. Raffles & fund raisers

Examples are a silent auction, chocolates, raffles at social functions etc. Difficult to repeat the success of the 75th anniversary every year. Need to target non-member funding

$2000 per year?

16. Sponsorship Prepare packages such as buying and running a rib for two years with advertising on the RIB pus flag each week. Can have different packages e.g. $1000 to $5000.

Maybe $2000 to $4000 to buy and $1000 per year to run.

17. Borrow Borrow $100000 and then pay back from future levies. Allows us to get it done quickly.

Minus $25,000 per year – could be balanced by the income form events.

18. Grants Actively continue to apply for community/government grants

$25000 but not every year – maybe two over 5 years.



The conclusions are:

• We can generate $50k per year – this involves embarking on a number of initiatives.

• The club is not comfortable with borrowing money for capital works at this stage.

• There is agreement that we cannot double fees to raise the required funding on the expectation that we will lose members, reducing the membership funding base, even though this would allow us to proceed with the required capital works.

• There are many initiatives which will not add a lot of revenue but can add a revenue component. As importantly, they will reinforce our purpose and values and will help us to have a bigger membership and stronger, healthier club e.g. more moorings, adult training, regattas etc. These initiatives, which in isolation are not worth much (a few thousand), can together add possibly up to $10,000 per annum. We will follow up on these e.g. raffles, alcohol, more storage, sponsorship.

• It is agreed that we will apply for more grants – we might allow for 2 more over the next 5 years for up to $50,000 or maybe $10,000 per year average.

• The tax deductible non-compulsory donations with good promotion can achieve maybe $10,000 per year.

• There is general agreement that without events (corporate, wedding etc.) it will be difficult to get to $50,000. It is probable that we could get to $25k but events will be needed to lift this by another $25k.

In summary, without weddings/events we will not be able to implement our Master Plan. The table on the following pages summarises the next five years. It should be noted these are real dollars and no inflation has been applied.

A wedding on the deck



Avalon Sailing Club DRAFT 5 byear business plan

2014‐2015 2015‐2016 2016‐2017 2017‐2018 2018‐2019INCOMELife - - - - - Social 700 700 700 700 700 Family 22,265 22,995 23,725 24,455 25,185 Adult 9,990 10,530 11,070 11,610 12,150 Junior 4,800 4,800 4,800 4,800 4,800 Boat Owner 13,475 14,455 15,435 16,415 17,395 Yacht Racing 2,800 3,080 3,360 3,640 3,920 Senior Centreboard - no coaching 140 140 140 140 140 U25 Centreboard - coaching 15,975 15,975 15,975 15,975 15,975 Blue Group - coaching 7,475 7,475 7,475 7,475 7,475 Internal Rack Storage 10,045 10,045 10,045 10,045 10,045 External Rack Storage 4,070 4,070 4,070 4,070 4,070 Ski-rack Storage 200 400 600 600 600 Deck Storage 370 370 370 370 370 First Year Member Mooring 4,400 4,400 4,400 4,400 4,400 Subsequent Year Mooring 23,180 24,400 25,620 26,840 28,060 Family Levy - - - - - Adult Levy - - - - - Junior Levy - - - - - Hall Hire (weddings etc) 24,000 30,000 40,000 40,000 40,000 Canteen 14,000 14,000 14,000 14,000 14,000 Social functions 13,000 13,000 13,000 13,000 13,000 Grants - - - - - Donations 20,000 20,000 20,000 20,000 20,000 Fundraisers 5,000 5,000 5,000 5,000 5,000 Interest 5,000 5,000 5,000 5,000 5,000

0Sub total Income 200,885 210,835 224,785 228,535 232,285

ExpensesTotal Clubhouse $17,000 $17,000 $17,000 $17,000 $17,000Rescue Boats & Equipment $0 $0 $0 $0 $0Total Rescue Boats & Equip $29,598 $29,598 $29,598 $29,598 $29,598Total Training $15,300 $15,300 $15,300 $15,300 $15,300Total Moorings $29,500 $29,500 $29,500 $29,500 $29,500Total YA & Association Fees $3,700 $3,700 $3,700 $3,700 $3,700Total Trophies & Prizes $1,700 $1,700 $1,700 $1,700 $1,700Total Depreciation $0 $0 $0 $0 $0Total Administration $41,050 $41,050 $41,050 $41,050 $41,050Sub Total Expenses $137,848 $137,848 $137,848 $137,848 $137,848

- - - - Sub Total Other Expenses $15,000 $15,000 $15,000 $15,000 $15,000Total Expenses $152,848 $152,848 $152,848 $152,848 $152,848Net profit (loss) cash 48,037 57,987 71,937 75,687 79,437

CAPITAL Deck 1 100,000 Deck 2 50,000 Deck 3 - 45,000 Ladies toilet 30,000 - Stairs 20,000 Balastrade and verandah and committee room 40,000

Entrance and diabled toilets 20,000 Outboards 6,000 9,000 Outboards

total Capital 100,000 30,000 76,000 69,000 45,000 320,000

Cash Position after capital and operating (51,963) 27,987 (4,063) 6,687 34,437

Bank Balance at Start 70,000 18,037 46,024 41,962 48,649 Money in 200,885 210,835 224,785 228,535 232,285 money out 252,848 182,848 228,848 221,848 197,848 Balance at end 18,037 46,024 41,962 48,649 83,086



10. ACTION PLAN Key Points

ASC continues as a sailing club with no change to its purpose or values.

We implement a series of revenue actions so that our revenue (net of cost) is increased by a least $50,000 per year. The main actions are tax free donations, grants, renting of the clubhouse and then a series of cumulatively significant, but smaller and valuable, revenue initiatives which will bring in more money as well as grow membership.

ASC commits to implementing our $300,000 Master Plan to be completed within a nominal 5 year period. This includes replacing the deck, moving the stairs, upgrading the ladies toilet and replacing the balcony.

Renewal of Main Committee members, and Management roles taken on by committee members, is ongoing to diversify ideas, encourage participation and plan for succession so member burnout risk is reduced.

We report progress of this Strategic Plan (and in any form that it evolves to) at each monthly committee meeting to facilitate follow-through.

Conclusions from our SWOT, budget review and sailing review are as follows:

• There is no change to our purpose and we will continue to pursue our primary reason to exist which is enjoyment of sailing achieved by a volunteer culture where lending a hand and having a go is what keeps the club alive.

• We have a wonderful asset and track record with a good future.

• We need to have a step change in revenue of $50,000 per year to upgrade our main asset (the clubhouse and deck) which is deteriorating.

• Our fees are reasonable for what we offer, relative to other clubs.

• We are different to surrounding clubs in that we offer sailing to a large age range and are supported by a fully-volunteer culture.

• Member burnout is a risk we need to manage.



Recommendations for going forward are as follows:

• ASC continues as a sailing club with no change to its purpose or values.

• We implement a series of revenue actions so that our revenue (net of cost) is increased by a least $50,000 per year. The main actions are tax free donations, grants, renting of the clubhouse and then a series of cumulatively significant, but smaller and valuable, revenue initiatives which will bring in more money as well as grow membership.

• ASC commits to implementing our $300,000 Master Plan to be completed within a nominal 5 year period. This includes replacing the deck, moving the stairs, upgrading the ladies toilet and replacing the balcony.

• Rotation of Main Committee members, and Management roles taken on by committee members, is ongoing to diversify ideas, encourage participation and plan for succession so member burnout risk is reduced.

• We report progress of this Strategic Plan (and in any form that it evolves to) at each monthly committee meeting to ensure it is followed through.

ASC Strategic Plan Ver 12 - Avalon Sailing Club...EXECUTIVE SUMMARY This is a Five Year Strategic...

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