MINUTES

OF THE

SLAC SPECIAL BOARD MEETING

Date of Meeting: March 30, 2004

A special meeting of the Sun Lakes Aero Club Board was held in the Ocotillo Room in the Arts and Crafts Building at Oakwood Country Club, Sun Lakes, Arizona.

Present at the meeting:

Vern Nelson, President

Jim Boone, Vice President

Ray Schrecengost, Treasurer

Bob Earl, Secretary

Elton Dyal, Programs Officer

Ziggi Wirganowicz, Provost

Al Doria, Member at Large

Al Galvi, Member at Large

Dick Vaughn, Member at Large

Also in attendance:

Bill Johnson

A correction of the Board Minutes of the February 17, 2004 minutes was made and the Board Minutes of March 16, 2004 were approved without reading.

The purpose of this Special Board Meeting was reiterated by Vern Nelson, President, “to resolve the question concerning shared expenses”.

At 10 a.m. Vern Nelson, President, opened the meeting and read an opening statement from the agenda. In it, he announced the resignation of Dick Vaughn as Activities Officer. In recognition of Dick Vaughn’s hard work as the Activities Officer, because he has always been a good team member functioning in a very difficult and demanding job, and because his attendance at Board Meetings has been exemplary, Vern appointed Dick Vaughn to Member at Large on the SLAC Board. Vern announced the appointment of Bill Johnson to the vacant Activities Officer position on the Board. Vern pointed out that Bill is anxious to work with the Club; he is energetic and he is skilled and capable of assisting him as the Web Manager.

Vern summarized a laborious process that the Board has completed to provide guidance and direction for the Club to use to ensure that pilots who participate in SLAC sponsored Fly-Ins are properly reimbursed for their expenses. The Board reviewed and accepted the Shared Expense Procedures attached. The Board also approved the Shared Expenses Objective attached.

The Board decided to change their monthly meeting time to occur immediately after each monthly General Meeting.

The Board decided to post an invitation for additional pilots to join SLAC at the Chandler Municipal Airport terminal. The objective is to attract additional pilots to join the club and make their airplanes available for Fly-Ins.

The meeting ended at 10:50 a.m. followed by considerable visitation among the members.

Respectfully Submitted

Robert D. Earl, March 30, 2004

Addendum: (3)

SHARED EXPENSE OBJECTIVE STATEMENT

Sun Lakes Aero Club (SLAC) objective – the equitable reimbursements to pilots for the use of their airplanes in SLAC-sponsored Fly-Ins.

Resolution

1. The Federal Air Regulations (FAR), Section 61.113c provides the basis for the reimbursement of shared costs. FAR 61.113c states that “A . . . pilot may not pay less than the pro rata share of the operating expenses of a flight with passengers, provided the expenses involve only fuel, oil, airport expenditures, or rental fees”.

2. SLAC will collect funds from members, and other participants who are officially registered by SLAC to participate in a SLAC sponsored Fly-In, to reimburse pilots shared costs. All pilots are responsible for determining reimbursements from other passengers who are not officially registered by SLAC for the Fly-In that they have invited.

Procedures for Reimbursement of Shared Expenses

The Activities Officer will calculate the amount of allowable costs for each participating aircraft which will the basis for reimbursement as follows:

a. The formula used to determine the allowable costs will be the basis of reimbursement of shared costs. The Activities Officer will, for each aircraft, consider the total number of seats and the number of seats made available for occupancy by those who are officially registered as participants by SLAC.

b. Allowable costs include the consumption of gas and oil by a privately owned aircraft or the cost of a rental aircraft used for a Fly-In. In addition, landing and/or tie-down fees incurred away from home base are allowable costs.

c. Allowable costs for each privately owned aircraft participating in a SLAC Fly-In will be determined by the Activities Officer through a survey with each aircraft owner-participant. The survey may be updated periodically to reflect changes to operating costs at the request of a pilot or by action taken by the Activities Officer. .

d. The allowable amount of reimbursement due each pilot is calculated as follows:

Privately Owned Aircraft - multiply the allowable cost/mile of oil and gas times the
round-trip distance plus any landing and tie-down fees. Multiply the result by the
percentage of the seats available to be occupied by SLAC passengers (this
excludes the pilot, the pilot’s spouse, significant other or non-member friends).

Rental Aircraft – hourly rental cost for the aircraft, normally
determined by the Hobbs Meter, plus any landing and tie-down fees

REPORT OF MEETING WITH THE FAA
March 19, 2004

Brian Calendine, Supervisor, FAA FSDO

Chris Clark, Specialist, FAA FSDO

Ray Schrecengost, Treasurer, Sun Lakes Aero Club

Bob Earl, Secretary, Sun Lakes Aero Club

Dick Vaughn, Activities Officer, Sun Lakes Aero Club

A meeting was requested by representatives of the Sun Lakes Aero Club (SLAC) with FAA officials to ensure that shared expenses are appropriately administered with pilots who participate in SLAC sponsored Fly-In activities. The meeting was held at the FAA Flight Standards District Office in Scottsdale, Arizona beginning at 7:55 a.m. and ending at 8:35 a.m.

Bob Earl explained the concern of SLAC, a social organization, that it would not recommend practices that conflict with Federal regulations as they relate to reimbursement of funds to a pilot for shared expenses of aircraft rental or the use of a privately owned aircraft.

Subsequently, Ray and Dick provided information to Brian, as follows:

Collection from passengers for cost of flight:

Ray Schrecengost explained how SLAC collects funds from participating passengers,
based on a historically determined mean average of $.20 per mile, for the purpose of
reimbursing pilots.

Reimbursement to pilots for cost of flight:

Ray explained that various types of aircraft participate in any given Fly-
In, each having a discrete performance characteristic. Ray continued
by explaining how each pilot is reimbursed according to the performance
cost of the aircraft he/she flew. Ray also explained that sometimes a
person may have to cancel at the last minute and although his seat goes
empty, the pilot would be paid as though it were filled.

Discussion:

Brian pointed out that, technically, the reimbursement should be based on the cost
incurred, i. e. tallied after the flight. Ray assured Brian that historical records provide
ample evidence that validates the cost per mile figure used by SLAC and that the
collection from passengers occur prior to the flight by the Activities Officer. Dick assured
Brian that in most cases funds are reimbursed to pilots by the Activities Officer upon
return.

Brian said SLAC is administering Fly-In activities in a manner that does not conflict with
Federal regulations.

Brian recommended that FAA Flight Standards personnel involved in the Aviation Safety
Program should be invited to speak to the club members.

Brian said that information about specific planes and pilots is available on
the web at <registry.faa.gov> by inserting a name or an aircraft registry
number.

Respectfully submitted by

Bob Earl, Secretary

March 19, 2004