Caesar Creek Soaring Club Soaring Society of Dayton

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Caesar Creek Soaring ClubSoaring Society of
Dayton

• The Two Organization Business Model

Dick Holzwarth / 63 President Caesar Creek
Soaring Club
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Introducing Caesar Creek

• 233 Current Dues Paying Members
• Approximately 30 New Members in 2005
• Privately owned facility near Waynesville, OH
• 3000 x 600/300 grass strip
• Clubhouse, hangars, storage barns
• Operate 9 Sailplanes, 3 Pawnee Towplanes
• 2 ASK-21, G-103, L-23
• 3 SGS 2-33, 2 SGS 1-26, SGS 1-34
• Club hosts approximately 36 privately owned
  aircraft
• 2752 flights in 2005 (slow growth over last five
  years)

Full Spectrum Soaring Club Intro Rides National
Soaring Championships Entirely Volunteer
Operations No Paid Employees
www.soarccsc.com
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Membership Commitment

• New Full Members Join the Caesar Creek Soaring
  Club
• Pay Membership Fees and Dues
• Full privileges immediately (fly, rent, etc.)
• Full Members of CCSC MUST Purchase SSD Stock
• 12 Share minimum required (can buy more)
• May purchase over time
• May be redeemed when they leave CCSC

Members JOIN the Caesar Creek Soaring
Club And INVEST in the Soaring Society of Dayton
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Two Distinct COLLABORATING OrganizationsA
Business Partnership

• Caesar Creek Soaring Club
• OPERATIONS
• Training
• Private Flying
• Competition
• Social
• Maintenance

• Soaring Society of Dayton
• FACILITIES AND EQUIPMENT
• The gliderport
• The buildings
• The SAILPLANES
• The Towplanes
• Grounds Equipment.

CAESAR CREEK SOARING CLUB operates by leasing
equipment and facilities required from SOARING
SOCIETY OF DAYTON
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Business Concept
CCSC, SSD are BOTH Incorporated as Not for
Profit Corporations True Business Concept Who
would get the profit?

• Caesar Creek Soaring Club Strives for Cash
  Neutral Operation
• 2005 Receipts approx 185K
• Flight Charges, Dues, Rents, Membership Fees,
  Social Events, Contests
• 2005 Expenses approx 175K
• Fuel, Maintenance, Insurance, Lease Fees, Taxes

• Soaring Society of Dayton Strives for Continuing
  Improvements and Sustainable Growth
• Income for CCSC Lease Payment and Stock
  Purchases
• 2005 Purchased New ASK-21 For Fleet, Initiated
  Construction of Towplane Hangar

Lease Fees Adjusted Annually to Account for
Usage, Improved Equipment and Facilities
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Decisions and ExecutionCaesar Creek Soaring Club

• CCSC Board of Directors (9 Members)
• Pres, V-Pres, Treasurer, Secretary, Operations,
  Grounds, Glider Maintenance, Towplane
  Maintenance, Social
• Elected by all voting members - One member / one
  vote
• Regular Scheduled Meeting - All members welcome.
• Creates Policies, Procedures, for Routine
  Operations
• Uniform Operating Procedures (UoPs) to govern
  routine
• Plans and oversees activities and expenditures
  related to Operations
• Routine Equipment and Supplies
• Sets rates and prices for services.
• Non-Routine Decisions through Vote of the Board
• CCSC Boards TENDS to focus on near term issues
• Efficient Operations
• Safe Operations
• Operation Budgets
• Cash Flow Management
• Activities and Events

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Decisions and ExecutionSoaring Society of Dayton

• SSD Board of Trustees (9 members)
• Corporate Officers President, V-President,
  Secretary, Treasurer
• Elected by all voting shares of SSD Stock
• Regularly Scheduled Meetings All members
  welcome
• Major Functions are business functions related to
  capital investments (property, planes) and
  capital management
• Governed by SSD Bylaws
• SSD TENDS to Focus on Long Term Issues
• Facility Improvement
• Equipment Upgrades
• Solvency

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Observations

• Separate Spheres of Influence REQUIRES
  COLLABORATION
• Consensus hard to achieve, but powerful when
  achieved
• Truly reflects the will of the members
• Two Board Decision Making IS a POLITICAL PROCESS
• Process can be hard to understand
• Process can be hard to tolerate
• Some issues WILL polarize your club
• Member Stock Ownership
• REALLY Complicates Matters
• OWNERSHIP encourages COMMITMENT from the
  Membership
• Separation of Operations from Assets
• Barrier to protect against lawsuits?

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• Caesar Creek Soaring Club and Soaring Society of
  Dayton have been using the Two Organization Model
  for 35 Years
• The Continuous Growth and Development of the
  Caesar Creek Soaring Club shows the model is an
  EFFECTIVE APPROACH

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CCSC Business Model
Principles Collect enough to pay the
lease Collect enough to pay taxes, insurance,
utilities Collect enough to pay for maintenance
(of EVERYTHING) Collect enough to pay for
fuel Have a reasonable reserve.
Income Streams Flying (approx 2800 flights,
approx 2400 involve rental) Dues Rents
(campground, ties downs, storage barns) New
Member Fees (200 initiation, 200 anniversary)
Social Events are scoped to pay for themselves
over the year
OVER ARCHING PRINCIPLE THE PURPOSE OF THE SSD
LEASE IS TO DRAIN CCSC OF CASH PAY THEM We
CANT make a profit we cant DO anything with
it!
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The Flying Revenue Stream

• A TOW FEE Tow Cost Glider Rent Hookup

Fuel Burned Maintenance Insurance Lease
Fee 0.65 / 100 ft
Maintenance Insurance Lease Fee 15.00 per
Fee for Service Returned to active Crew
members 15.00 ea flight
32.50 3000 ft ASK-21
Guest Rides are priced to be near cash neutral vs
club tow (65.00)
Contest Tow Fees are essentially cash neutral
Aero retrieve fees are based on towplane
operating cost and are essentially neutral