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Posted: Tue Sep 01, 2009 8:35 am
WHAT DOES THE BOARD THINK ABOUT MY IDEA OF LETTING GLIDER STORAGE PILOTS BUY THIER OWN TUBES (FOR NEW GAZIBLO) AND NOT PAY RENTAL ,UNTILL THE $200 TUBES EQUAL THE $200 storage fees,THEN THE TUBES WILL BECOME CLUB PROPERTY, AND PILOTS WILL START PAYING RENT? THIS WILL KEEP CLUB EXPENDETURES DOWN. OR GIVE THEM A CHOICE AND LET SHGA BUY TUBES. ROME
Posted: Tue Sep 01, 2009 6:23 pm
The BOD thinks your idea is great, Rome. In fact, it was decided that it would be the way to go about two years ago when they first considered expense reductions for the project. Great minds think alike, huh?
Posted: Wed Sep 02, 2009 1:32 pm
I fail to see the significance of this. All your accomplishing is changing the Cash Flow - maybe for a year at most. Since pilots have to prepay for their rental (monthly, quarterly, annual), the club is getting the bulk of the money up-front anyway. Then of course is the issue of individual pilots actually purchasing a tube, getting it to Sylmar, installation, etc. etc. I would think the club could get a better price on the purchase and delivery of 20-30 tubes than 20-30 individual each purchasing tubes at different times.
Finally, as of 12/31/08 the club had sufficient cash reserves to build the Gazebo and purchase the storage tubes. So why the need to delay the expenditure?
What am I missing
Posted: Wed Sep 02, 2009 6:38 pm
Don, you aren't missing anything. You could be correct. However, at one time that the idea was discussed at a board meeting, I had called a supplier who quoted $236/14" X 20' section of tube. Of course, gas was >$4/gal. Since the project was already going to use quite a bit of Rome's saved-up money, another $6K to $8K for tubes was proportionally excessive. What if vacancy was a problem? If many members (I don't know this) pay monthly, Rome's funds are replenished over a year after the initial expenditure instead of staying in the CDs that Dan Barley purchases.
By allowing interested members to pony-up for the initial cost, the large capital expenditure would be avoided.
However, Cathy Moacanin (who lives in an agricultural area) recently reported irrigation tubing (used for the current storage) for far less; somewhere over $100.
We'll see how things go after construction but it's good to air the ideas. I hope Rome may turn his attention next to fund raising. I don't want him to go homeless if the construction goes a little over his budget.
Posted: Thu Sep 03, 2009 9:15 am
The last time I checked (which was several years ago) most glider-slot-renters were paying quarterly or yearly (I can't remember now which.) Almost nobody was doing it monthly.
Now, things may have changed since then, so take this with a big grain of salt. However, if they are already paying most of it up front, and IF we don't have huge vacancies, it sounds like we could do better to buy in bulk.
But it obviously depends on the details. Things often do.
Of course, simply asking J Devorak would give us the answer to the first part of this issue. I'm sure he knows, being the one doing the collecting and bookkeeping.
Posted: Thu Sep 03, 2009 10:26 am
Being the type that ALWAYS looks for what could go wrong
- if we let the renters make the initial purchase then the club needs to be absolutely specific as to what is expected in terms of lenght, diameter, wall thickness, etc.
I don't know about you - BUT - I would bet someone would not follow the specifications.
You then end up with something you don't want/won't work/won't last - you get the idea.
Posted: Fri Sep 04, 2009 8:01 am
Most merbers (80%) pay annually. This applies to each box even though the rental amount is different. Most of the rest pay quaterly. A couple don't pay at all. I don't see any insentive to motivate a member to front the cost of a tube. Unless, for example, a discount is given on the anual charge. That is not to mean that I recomend it. Just adding to the discussion.
Posted: Fri Sep 04, 2009 12:14 pm
Thanks for the information Jay!
Just curious if there is a waiting list or any other indication as to the level of interest in additional space?
Assuming that the new storage will rent for the same rate as the New/East box ($260/yr) then a pilot's payment covers the initial out-of-pocket cost (~$236 or even significantly less if Kathy Mocaian's information is still valid when it is time to purchase the tubes). Then the remaining factor would be the absorption rate (how long it takes for all the space to be rented).
Posted: Fri Sep 04, 2009 4:29 pm
Yes there is a wating list of about 3 people. There is also 3 late-payers I would like to get rid of.
Re: Another issue
Posted: Fri Sep 04, 2009 5:37 pm
Don wrote: Being the type that ALWAYS looks for what could go wrong
Me, too; I like to be prepared. If it were up to me, I would issue a set of requirements for the purchaser of a tube to be eventually turned over for club ownership. I would require that they only buy from an approved dealer, only approved tubes.
There is another way: the club could purchase the tube only when a member requests storage. As a price protection for the club, the first year's rent would be the current price of the tube, in advance (in case gas goes to $6/gal). After that, the fee would be the standard fee users pay[/quote]