Eagle East club minutes

[James Carlson]

Here are the notes that I took during today's meeting:

  All times are Hobbs, not tach.

  N61976 (1975 172M) flew 256 hours in 2008.  Insurance was $4500, and
  should be about the same for a club.  Sean says we should figure on
  $10/hour for a maintenance fund.

  There are both hourly and yearly costs; the former go into the
  hourly usage rate, the latter go into the monthly dues.  Yearly
  costs include:

	 $350 MA incorporation fee
	 $100 MAC registration
	$1000 tie-down

  Engine overhaul may cost around $20,000, with 2000 hours TBO.
  [Ed. note: the SMOH is usually just figured into the plane's value
  when purchasing.  So, if it's 1000 hours SMOH, deduct $10K from the
  price, rather than using $20/hour as rate.]

  Yearly inspections are perhaps $1500, plus whatever we want to fix.

  The current note is $650/month and may have around 5 years left to
  pay.  [Ed. note: guessing 8% interest and 15 year note, $650/month
  works out to an original price of $68,000.]

  Last year, it cost roughly $55/hour to operate, not including fuel
  or note.  Sean estimates $85-90/hour to operate with fuel.  (But
  backed off to $75-$80, assuming no 100-hour inspections.)

  N2462T (2000 172R) has a monthly payment of $2000, and perhaps 4
  years left to pay.  [Same estimates come to $209,000 for original
  cost.]

  There are two ways to go with financing: Eagle or off-field.  If we
  go with Eagle, we'd just be assuming the existing monthly note
  payment, and terms (including ownership interest) to be negotiated
  up front.  Notably, Eagle would retain the note, and would need to
  resume payment if the club fails.  If we go off-field, it's unlikely
  the corporation would be able to get a loan itself (at least at this
  point), meaning that some group of the members (perhaps just
  officers) would have to back up the loan in case of club failure.
  We would have to sell off or convert to a fractional ownership in
  that case.

  Eagle would be willing to let us use their scheduling software.

  Sean indicated that leasebacks (now called "dispatch agreements")
  are usually not worthwhile.  If we find that we need to get a
  certain number of hours per year in order to make the numbers work,
  then it could be considered, but it's not a way to get extra income
  to support the club.

  Initial stab at membership will grandfather in existing students in
  the interest list, but will not accept new students until we
  determine what our member roll needs are.

  Jim is to come up with a squawk list for 976.  Bob has "the keys"
  and will talk with Tim/Sean.  Mike will help run numbers for the
  planes.  Bill offered a copy of Quickbooks for finances.

  Initial core team is Mike Lysik, Steve Gordon, Bill McCann, Bob
  Irving, Todd Brooks, and Jim Carlson.

  Next meeting is Wednesday, April 8th, 7PM, at Eagle's classroom.

-- 
James Carlson         42.703N 71.076W         <carlsonj at workingcode.com>