Captain’s Cove annual dues headed higher

By TOM STAUSS Publisher

There are indications that Captain’s Cove Golf and Yacht Club’s $1500 a year in annual assessments will be increasing in the new fiscal year that begins Oct. 1.

How much remains to be seen. Legal expenses related to ongoing litigation continue to concern the Board of Directors and the property management team.

One of the major drivers in the need for additional revenue are rising insurance premiums.

During the June 19 Board of Directors, Tim Hearn, presiding over his last meeting as CCGYC president, summarized the status of insurance premiums paid or owed by CCGYC. According to a graphic presented during the meeting, the Cove is liable for more than $200,000 in annual premiums.

Hearn said there has been a 500 percent increase in the deductible for directors and officers coverage related to the Birckhead litigation, and another 25 percent increase in the premium also related to that litigation.

“These increases will remain for the next 5-7 years due to the claims history now in place with the multiple lawsuits from Birckhead et al.,” Hearn said.

Other insurance increases include:

• A more than 35 percent increase related to increased value of physical assets, from $7 million to $10 million.

• A pending 250 percent increase, from 2 per-

It’s too soon to know for sure how much

cent to 5 percent) for wind deductible coverage for 2024

• Expected health insurance benefits to rise by 12 percent or more, based on recent activity from other companies by the CCGYC broker

• Claims still under review by the insurance carrier, from the December 2022 dredge vandalism.

Hearn reviewed a number of issues related to the 2023-24 budget process now in full swing. He commented on member input from recent budget work sessions as well.

“Many vocal members wanted CCGYC to detach from third party companies,” he said, “with all work performed in-house,” while staff would be “expected to deliver or upgrade the level of service.”

He said that if that strategy were followed, payroll and related expenses would rise.

Hearn announced one policy initiative that will probably be appreciated by golfers, a reversion to the old policy of including basic golf fees within the dues assessment for next year’s budget. Cart fees would continue to be charged prior to a round of play.

Hearn said that increases in guest fees and cart fees would be implemented “to help to offset” the projected loss of revenue from this policy reversion.

He mentioned another possible change in the amenity fee structure, noting that one suggestion from a recent budget work session was to charge a user fee to boaters, including CCGYC members, at the marina boat ramp for use of the ramp.

The fee would cover the cost of stationing a security officer at the ramp every day to collect the fees. This idea was not universally embraced by everyone tuning in to the work session.

Hearn also took umbrage at recent social media posts regarding the waterfront assessment levied on owners of canal-front property.

He said some posts “intentionally and repeatedly misrepresent the language” in governing documents referencing “no less than $80” in the waterfront dues. He also cited a recent post that alleged that waterfront reserve funds had been “stolen” by other members, “as the poster knows that they have no proof of that having occurred.”

He then summarized recent discussions at the working group level on the issue of dredging.

[See separate article in this edition of the Cove Currents for details.]

Hearn also responded to social media posts alleging overly generous compensation being offered to CCGYC employees, which he disputed. He said that the Cove’s published organizational chart displays all positions, and that many include duties that in many organizations are performed by individual executive or administrative personnel.

In Captain’s Cove, he said, that there also is no human resources department; no compliance department; and no administrative personnel. Those functions are handled by the department and property management team leaders, which results in substantial savings in personnel costs.

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