The Northeast Harbor Fleet Northeast Harbor, ME 04662 April 2005 207.276.5101 Dear Fellow Members: On behalf of the Executive Committee I am pleased to enclose the Annual Report/Fleet Yearbook for 2004, along with the Fleet calendar for the up-coming 2005 season. In addition to chronicling the events of 2004, the Yearbook highlights last summer's Downeast Raceweek (DERW), which is the premiere cruising-boat racing event on the Fleet calendar. Downeast Raceweek - DERW has evolved over the past 10 years to become a collaborative, week-long, event which combines the traditions and trophies of both the Kolledgewidgwok Yacht Club (KYC) in Blue Hill and The Fleet in Northeast Harbor, namely the Nevin Cup and The Fleet August Cruise. It is chaired this year by our Rear Commodore, Bob Johnstone. The two organizations run the racing and take turns each year hosting a club dinner during the week. To encourage participation, this summer's social program involves both racers and non-racing family members alike with three evening functions - two dinners: one at KYC in Blue Hill, the other at the Islesford Dock Restaurant; and a Cocktail Reception on Frenchman's Bay all accessible by road or ferry to make crew changes easier. As you scan the DERW section of the Yearbook, we hope you'll enjoy learning more about, or re-living last year's regatta, and be encouraged to become a participant next summer. Of particular interest to those wanting to give DERW or the MDI Series a try for the first time, the Fleet is pioneering the use of an IRC "trial" certificate for $45.00 to obtain a rating for one-event use. To learn more, contact Bob Johnstone at 617-723-3629 or by email bobj@mjmyachts.com. Policy Changes - I encourage you to review the new mooring policies put out by Clifton Dock Corporation. Sandy Andrews is now in charge of that organization, and in an effort to satisfy the increased demand for these relatively scarce commodities (moorings), we have created a waiting list to make the process of allocating moorings more orderly as and when they become available. Current mooring renters are all guaranteed their same mooring arrangement, but those members looking to rent for the first time, may have to wait until a compatible mooring becomes available. The waiting list will ensure that we know who wants a mooring, and what their specifications are. We are working through 1 the proper channels to determine if additional moorings can be made available both at the Fleet and in the harbor off Clifton Dock. Any questions about the policies or mooring availability can be directed to Clifton Dock President, Sandy Andrews. Plant Upgrades - The Fleet House should have a new roof long before opening day. Even casual observers have noticed watermarks on the ceiling of the building over the last few summers, symptomatic of a leaky roof. The repair work done this spring should put us in good stead for several decades. Additionally, we have had to replace one of the main floats, which was observed to be rotted and somewhat unstable. Finances - From a financial perspective, the Executive Committee voted in January to put through an increase in dues for the coming season (roughly 9%, along with a small increase in the capital dues (roughly 5%). The new rate structure was reflected in the recent dues billing you will have recently received. This is the first dues increase in at least three years, and was made necessary to cover the higher operating costs including insurance and personnel in the face of flat membership totals (membership dues account for roughly 80% of total revenue). The capital dues were calculated to cover the cost of the two capital projects described above. Our hope is that the major capital expenses are now behind us: the physical plant seems to be in good condition, the floats have been replaced over the last few years in a rotation that should allow us to avoid a new purchase for a year or more, and we seem to have the right mix of watercraft. Having said that, Maine winters are unforgiving; and we hope for the best. You will note from the financial statements in the Yearbook that the financial picture continues to look healthy. We were able to add roughly $22,000 to our reserve fund. In part this was the result of good financial controls, but also because one of the capital projects from last year was deferred until this year. The goal of having one year's worth of expenses in reserve is nearly met. All things being equal, this should mean that capital dues will be reduced next season, and we can hold the line on a regular dues increases as well. New Cruising Class Events - You will note that on the 2005 calendar we have added several new cruising class events (including two "double-handed" races). As important as the races, are the BYO "grill" cookouts at the Fleet following each of the MDI races. These are likely to be just as popular as traditional Saturday post-race teas. The plan this year is to have shorter, more exciting races with all the boats within sight of one another and to use the post-race cookouts as a way to not only grill the hamburgers but also the winners. In exchange for receiving daily prizes, they can enlighten the rest of us on the art of winning races. We hope this will encourage MDI series race-participants, and the membership at large, to find new ways to enjoy each others company, using the Fleet House as the setting. To encourage the next generation of cruising boat enthusiasts, we look forward to welcoming the participation of a cruising boat or two manned by Greg Wilkinson and 2 other instructors with crews of junior sailors. This idea has worked elsewhere to help create a lifetime interest in the sport for young sailors graduating from instructional programs. Sailing School - Members interested in information about the Northeast Harbor Sailing School are invited to check the School's link on the Fleet web-site or go to the Sailing School's own individual web site at www.nehss.org for brochures, and registration materials. Malinda Crain is the new president of the Sailing School, and she, or Greg Wilkinson, would be happy to answer any questions you have after reviewing the website. Malinda has a link on the sailing school website and Greg has an e-mail link on both web-sites to make communications more direct. In closing, I want to take this opportunity to thank all the members of the Executive Committee and the many other volunteers who work hard all year to make the Fleet an enjoyable place to spend time with families and friends. I am always impressed by the ways members find to contribute and give back to our organization. It may take the form of helping out with driving juniors to a regatta, working on the race committee, organizing the trophies, proof reading the Annual Report, offering a home or boat for use in a Fleet sponsored event, or baking brownies for the 4th of July picnic. It is this level of commitment and energy that makes the Fleet a truly unique venue to enjoy the beautiful environment of Mt Desert Island. I look forward to seeing you this coming summer. Fair sailing, Harry R. Madeira, Jr. Commodore 3