Caesar Creek Soaring Club Soaring Society of Dayton

Caesar Creek Soaring Club Soaring Society of Dayton The Two Organization Business Model Dick Holzwarth / 63 President Caesar Creek Soaring Club

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

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

Two Distinct COLLABORATING Organizations A 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

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 $185 K • Flight Charges, Dues, Rents, Membership Fees, Social Events, Contests – 2005 Expenses approx $175 K • 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

Decisions and Execution Caesar 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 (Uo. Ps) 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

Decisions and Execution Soaring 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

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?

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