September 15th, 2015

HYC Fee Structure

Dear Members,

Re: Proposed Fee Structure Revisions - September 28th, 7:30p.m. at HYC

This year, as many members are aware, we have been asking for your views and input
regarding our changing demographics and the long term sustainability of our Club.
As a first step in reviewing the fee structure, a nine person committee was struck following the
2015 AGM to review our options and to make recommendations. The mandate of this
Committee is: To review the appropriateness of the present Membership Categories and their
associated Fee Structure in light of the changing demographic of the HYC Membership and
make a recommendation(s) to the Board of Directors if and as judged necessary.
In previous communiqus we have noted;

That in the past 25 years the membership in the reduced senior categories has grown substantially.
Currently, 41% are in the Senior 65+ or Senior 70+ membership categories.
Only 9% of our Senior Members are under the age of 39.
By 2020, we anticipate the senior discounted categories being the majority of adult members.
If this trend continues it would lead to a significant operating loss within five years.

As shown below, the current reductions are substantial.

Current Annual Fees- Adult Categories

Category
Senior
Senior Associate
Senior 65+10 yrs. Membership
Associate 65+10 yrs. Membership
Senior 70+30 yrs. Membership
Associate 70+30 yrs. Membership
Non-Resident

Reduction
0%
65%
65%
70%
77%
77%
70%

Current Fees (2015)

$676
$237
$237
$203
$156
$156
$203

Proposed Revisions
The proposed revisions are as follows. Only the adult categories are shown as no changes are
proposed for the youth membership groups.

Phasing in the Fee Structure Revisions over 3 Years

Category
Senior
Senior Associate
Senior 65+10 yrs. Membership
Associate 65+10 yrs. Membership
Senior 70+30 yrs. Membership
Associate 70+30 yrs. Membership
Under 35 (U35)
Non-Resident

Now (2015)
0%
65%
65%
70%
77%
77%
0%

2016
0%
63%
60%
68%
73%
75%
50%

2017
0%
61%
55%
66%
69%
73%
50%

2018
0%
60%
50%
65%
65%
70%
50%

70%

68%

67%

65%

HYC Fee Structure

September 15th, 2015

Phasing in the Fee Structure Revisions over 3 Years (2015 dollars)

Category
Now (2015)
2016
2017
Senior
$676
$676
$676
Senior Associate
$237
$248
$261
Senior 65+10 yrs. Membership
$237
$270
$304
Associate 65+10 yrs. Membership
$203
$214
$228
Senior 70+30 yrs. Membership
$156
$183
$210
Associate 70+30 yrs. Membership
$156
$171
$185
Under 35 (U35)
$676
$338
$338
Non-Resident
$203
$214
$223
Note: The U35 Category would be new and would come into effect in 2016

2018
$676
$270
$338
$237
$237
$203
$338
$237

It should be noted that the new Under 35 category (U35) would have the following features
and restrictions;

It would be available to any member under the age of 35, however those who are sons
and/or daughters of members are eligible for the Intermediate Category until age 29
which offers a greater discount (60%)
The initiation fee for the Under 35 category would also be eligible for a 50% reduction.
The Under 35 group would have to become full Senior Members to enjoy voting rights
and harbor privileges.

Factors and Alternatives Considered in Developing this Proposal

In developing its recommendations the Committee considered a number of factors based on
the available information and on the input provided by members. This has included;

No categories will be eliminated. This was considered unfair to too many Members
who have earned a reduction or have been anticipating one.

No increases in age eligibility or tenure e.g. to 67+20 as most members are long
term members and the net effect would be minimal.

Changes to be phased in. This was suggested by a number of members as a way to

allow the membership to adjust.

No grandfathering. The number of Members who have seniors discounts is simply

too large to a make grandfathering feasible.

Incentive for younger members. A revised fee structure should include some
incentives to attract young members and families.

Adjusting the discounts. As discussed above, the discounts are substantial. The
committee felt that it was essential for the long term health of the club to make these
discounts somewhat less remarkable.

September 15th, 2015

HYC Fee Structure

Other sources of revenue. Other sources of revenue are important to the Club but
membership is the largest single source at 43%. The Committee also felt that the
essential characteristics of the Club could change substantially if an emphasis was
placed on new sources rather than addressing the need to rebalance the fee structure.
We also wished to avoid special assessments and minimum food or beverage charges.

Attracting new members. While developing marketing recommendations to attract

new members was outside of the Committees mandate, it was clearly noted that the
Club should develop strategies to attract members and a number of initiatives have
already been put in place or are being developed/

Maintain stable operating revenue over the forecast period. The changes would
be designed to maintain stable funding for the Club over the phase in period (3 years)
during which time we would expect that incentives and programs to attract younger
members would begin to reverse the trends.

Second Members Information Meeting

Members are invited to provide feedback on this recommendation via the website, by
contacting committee members or by attending the 2nd Information Meeting to be held
September 28th 2015 at 7:30 at HYC. Following this meeting, a final recommendation will
then be presented to the Board. Changes approved by the Board will then be presented to the
full membership for a vote at the next AGM in January.

Heres the link to the website; HYC Fee Structure Please have a look, express your views on
the questionnaire or blog and we look forward to seeing you on the 28th.
Yours truly,
Members of the Fee Structure Review Committee
Doug Meredith (Chair)
David Law
Derek Patino
George Roberton
Gord Thompson

Colin Scotcher (Commodore)

James Campbell
Joan Kirby
Sharon Gaul