Minutes
for Haven Foundation Board Meeting
Via
Email dated Jan 10, 2005
Hello
all,
I
have tallied the votes and both Motions are passed.
Carole
would you please file this in the appropriate location.
Paul
----- Original
Message -----
From: Connie
Munro
To: Laurie Kelley ; Paul
Robillard
Cc: Mark Gunderson ; Dick Sass ;
David Raithby and
Sandey McCartney ; Gerry Owen ; globalc@uvic.ca ; lindalee@haven.ca ; Randy Wong ; Carole
Ames ; Ernie
& Cathy McNally
Sent: Sunday, January 09, 2005 9:03 PM
Subject: Re: MOTION TO APPROVE
I have added my
vote to the tally. Connie
----- Original
Message -----
From: Laurie
Kelley
To: Paul Robillard
Cc: Mark Gunderson ; Dick Sass ;
David Raithby and
Sandey McCartney ; Connie Munro ; Gerry Owen ; globalc@uvic.ca ; lindalee@haven.ca
; Randy Wong ; Carole
Ames ; Ernie
& Cathy McNally
Sent: Sunday, January 09, 2005 1:26 PM
Subject: Re: MOTION TO APPROVE
On 9-Jan-05, at 12:23 PM, Paul Robillard wrote:
Hello
Haven Board,
I am forwarding David's motion to approve the requests from Cathy and Ernie's
included in this email;
And another for Dick to negotiate a contract with Bill Chalmers for our
retreat:
Motions.
1. That the Haven Board approve the following three components of the
2005 Budget: 1. Wage increases, 2. Initiating marketing plans, and 3.
Specific January Capital Expenditures, as detailed in the e-mail below.
Moved: David Raithby
Seconded: Paul Robillard
In favour: : Paul; Laurie Kelley, Connie Munro;Mark;Dick;David
Opposed:
:
2.That Dick Sass negotiate a satisfactory contract with Bill Chalmers to
facilitate our weekend of February 19-20, 2005:
Moved: Paul Robillard
Seconded :
Laurie Kelley
In favour: : Laurie Kelley, Connie Munro;Paul;Mark Dick
Opposed:
:
----- Original Message -----
From: Dick Sass
To: Cathy & Ernie McNally ; Mark Gunderson ; Paul Robillard ; David
& Sandey Raithby ; Laurie Kelley ; connie@peterjoyes.com
; Linda Nicholls ; Rick Jackson ; Randy Wong ; Gerald Owen ; ronald.v.adkins@aexp.com ;
bryancroeni@sbcglobal.ney
Cc: Carole Ames
Sent: Friday, January 07, 2005 8:36 PM
Subject: Re: Request for approval
Dear Haven Foundation Board,
I would like to call a telephone board meeting for 9AM Wednesday January 12 to handle these requests. For anyone not able to attend, please so
indicate and provide your comments and VOTE next to each item. I
think we can handle these items as submitted by Ernie and Cathy with a 15-30
minute teleconference board meeting.
Please let me know if you are available and I will have Carole Ames again send
out teleconference CALL IN instructions so that we can all conference at the
same time. Those of us that are on gabriola can convene in the
Whitaker Room at 9AM sharp and confer from there.
Regards.
Dick
At 04:49 PM 1/7/2005, Cathy & Ernie McNally wrote:
To Board of Directors Haven Foundation,
We understand approval of the 2005 Budget is on the agenda for the February
Board Meeting. We are writing to request the immediate approval of three
components of the 2005 Budget:
• Wage increases
• Initiating Marketing plans
• Specific January Capital Expenditures
We, management, are forging ahead with our growth plans for 2005 and need to
have the authority to immediately begin spending in certain areas that we
believe are critical to us meeting our projected growth for 2005. The
entire budget has been revised and submitted to the Audit Committee for
review. Delaying the following requests to the February Board meeting
will have negative consequences for the business. The details for these items
are:
Wages
Wages increase for 35 staff members (detail attached). This $33,000 overall
increase in our wage budget of $630,000, was included in the first draft of the
2005 Budget. Since then, we have decreased the overall wage budget with a
$16,000 productivity gain in housekeeping to help offset the wage increase,
this will show up in the revised Budget. This results in a net increase of only
$17,000 over 2004 wage costs.
Most employees have not had an increase for nearly two years. This
increase moves the average hourly wage from $10.09 per hour to $10.68 per hour
averaging a $0.58 per hour wage increase to 29 staff members. For
the five salaried Supervisor staff the average salary will increase by $132
per month to $2488 per month.
Most importantly this wage increase is in support of our overall business
strategy to increase the level of customer service, rates and margins for the
business. This fits in our ongoing plan to help replace the overwhelming
customer appeal of Ben and Jock, which of course we don’t have any longer, with
improved service at all levels. We believe that with the withdrawal of
B&J, and without this service quality combined with our marketing
initiatives, the business would have experienced a 15-20% ($275,000) decline in
revenue rather than the flat revenue curve and significant pricing improvements
achieved to date. Our new customer (Come Alive) flow has been steady and slowly
growing, and the first impressions of our “quality service” are helping sustain
this.
More support for the wage increase:
1. These are all merit increases, arrived at after reviewing each person's
performance, attitude, and skills. Though they have not asked directly
for any increases, we know from discussions with staff that morale will suffer
if we do not give this small raise. As committed as they have been over
the past 3 years, we think some might begin looking for other employment that
may appear to offer more stability and growth/advancement opportunities.
We firmly believe that we may lose as many as 8 key personnel in the next year
if we do not recognize their efforts and demonstrate some fiscal health and
stability with this raise. Our experience and statistics show that when a
person leaves this has a direct cost of 30% of annual wages in retraining and
lost productivity. This is 8 people x 30% x $20,000 = $48,000 cost.
Conversely, the return for an employer on an employee with 3 years continuous
employment (due to the intangible of their experience and relationship with
customers) is an exponential curve of 110% of their salary, increasing to 150%
after 5 years. ALL of our key people with the exception of Reagan (2
years) are entering at least their third year.
2. Our average wage rate is just at the official Canadian poverty level
of $10.70 per hour. To replace the people that leave with people of
equivalent skills will require us offering at least the 2005 increased wage
amount to attract the quality of personnel we need. Doing nothing would
achieve little wage savings and significant costs.
3. If we were faced with dealing with low morale and lost personnel, we
would personally need to reallocate at least 20% of our time away from the
direct marketing and operational growth initiatives planned for 2005which
would almost definitely result in lower than forecast revenues for 2005.
Marketing
We need to continue with our marketing plans (detail attached) that were
started and approved in 2004. This includes Jonathan Diderich and the
associated promotional budget. Jonathan’s $48,000 salary and associated
promotion costs of $15,000, for a total of $63,000, are a significant portion
of the increase over the 2004 Budget. These are long range initiatives
that will impact revenues for this year and subsequent years.
Our targets for this initiative are revenue increases of $200,000 for each of
2005 and 2006 and $250,000 in 2007.
Capital Expenditures
• NewComputer. Our Systems Manager’s computer is crashing on a daily
basis and needs to be replaced urgently $1000
• Shop Saw. Old one won’t cut it any more! $500
• Off season shower installation for Room 155 (see note below) $4500
TOTAL: $6,000
Note: Shower installation is the final step in making this a revenue
generating room. (previously used for meetings only) Increased
revenue by adding this new waterview room to our inventory will be:
60 nights x $128 (Summer peak rate) = $7,680 per year
140 nights x $22 (average upgrade from Premium room) = $3,080
Total = $10,760
We appreciate your attention to this request.
With care,
Ernie and Cathy
Minutes
Approved: February 18, 2005
