The Businessmen's Flying Club held its monthly worknight on Tuesday, July 6, 1999 at the Naper Aero clubhouse. Flying members Jim Barna, Mark Clements, Nick Davis, Hubert Elsen, Harrison Hooker, Ray Kvietkus, Mike Leavy, Jack Lindquist, Dan Rolfs, Jim Williams and Reza Zarafshar attended the meeting. Waitlist member Kevin Brady stopped by to update his medical information

Our Business Meeting followed our annual summer picnic on July 11, 1999 and was attended by the following members and their families: Ken and Kathleen Best, Tom Braid, Mark and Mary Clements, Nick Davis and Terry (a member of the NFC), Mr and Mrs. Mel Finzer (BFC member 1961-66), Diedre and Nicole Finzer, Hubert and Robin Elsen, Andrea Hoyt and Mike, Tom and Peg Lechner, Ken Leibach, Craig and Micki Matteson, Mike Pastore and Pam, Bert and Leona Toppel, and Jim and Nancy Williams. Additionally, John and Joan Rocchi from Naper Aero and Dave Anderson, Mark Kendle and Rod Kenslow of the Naperville Flying Club also attended. Sadly, Rod Kenslow was killed in an airplane crash six miles from Naper Aero on the following Saturday morning, July 17^th.

A motion was made, seconded, and passed to accept the newsletter as the minutes of the last meeting.

The details of the Treasurer’s Report can be found at the end of this newsletter.

A motion was made, seconded, and passed to accept the treasurer's report.

SMOH -- engine time since major overhaul

TBO -- engine time between overhauls

TMOH -- engine time to major overhaul

150: The wet compass is leaking and will require repair.

172: The hinge on the right window is broken and the radio went out again. Hubert Elsen also reported that it happened to him also. There was some forewarning of the failure. COM 1 makes a noise in the pilot’s headset before it stops functioning.

182: The transponder was reported intermittent by Champaign approach. Nick Davis reported that the EGT was working fine now but the GPS was totally inoperative. Mike Pastore and I were going to fly the plane out to Radio Ranch but we were told that all we needed to do was pull the unit and send it out via UPS. This was done the following week.

Our advertising campaign for 44WW has stalled out with no response from the parties that were interested in the airplane. Our latest idea is to fly the plane to the EAA Airventure Convention in Oshkosh, Wisconsin and display a "For Sale" sign. The show starts on Wednesday July 28^th and runs through August 3^rd.

Ken Best read the following proposed Bylaw change at the June meeting and followed up with the enclosed e-mail. His proposal is reproduced this month since a vote on these issues won’t be considered until the August meeting.

"I proposed at the June meeting that the following changes be made to the Bylaws. The Bylaws require that any proposed amendments be read at one meeting and then can be voted on at any subsequent meeting. Here are my proposed amendments:

Strike the following Article completely:

Article IX - Special Provisions

Section 1 - Memberships

In consideration of the Bylaw provisions concerning family memberships in force when they joined the Club, the following pairs of members shall be entitled jointly to reduced monthly dues, equal to two (2) times the current monthly dues for an individual Club member, less ten dollars ($10), so long as both members of the pair remain members of the Club: Don & Signe Ferguson. These members are entitled to reimbursement of his or her total paid-in membership fee less fifty dollars ($50), when leaving the Club, provided the member is in good standing and a replacement for the member is available.

Reason: Don and Signe are inactive members with no membership standing or rights (per Article II, Section 9), therefore this provision (Article IX, Section 1) has expired and can be deleted.

Strikeout, Add or Leave Alone the following:

Article V - Officers and Board of Directors Section 7

The purpose of regular and special meetings is to involve the members present in the finances and operations of the Club. Non-recurring expenditures, contracts and long-term investments for amounts exceeding one thousand ($1000) dollars. Contracts, notes, leases, mortgages, bills of sale, debt, assessments, investments (for periods exceeding three (3) months) and non-recurring expenditures, for amounts between one thousand dollars ($1000) and forty thousand ($40,000) dollars, must receive prior approval by a majority vote of a quorum as defined in Article IV, Section 4 of these Bylaws. Amounts (as defined in the preceding sentence) equal to or exceeding forty thousand ($40,000) dollars, aircraft purchases or sales, and any changes to membership rights or costs must receive prior approval by a majority vote of the members.

Reasons: Strike the word "present" because the true goal is to involve all members in finance and operations. This is mostly a semantics change. Clarify the existing voting requirement by repeating language taken from Article V, Section 1 (re: President's authority) and Article II, Section 2 (assessment levying.)

Retain the "majority vote of quorum" approval, but limit this approval to amounts between $1,000 and $40,000. The Bylaws define a quorum as 20% of the members (45 * 20% = 9). Nine people is the minimum meeting size for voting to take place. A majority of a quorum can be as few as five (5) members! Very few transactions involve over $40,000. Even N44WW's worst engine overhaul cost less (about $28,000). Transactions over $40,000 are so unusual and rare that it is prudent to have a significant voting requirement.

Add a significant voting requirement for transactions over $40,000, aircraft sales or purchases and changes to the costs of membership rights. These issues have the largest direct impact on the members:

A transaction over $40,000 equates to nearly $1,000 PER MEMBER!

A change in the composition of the Club's fleet could mean:

1.) Less total aircraft availability after sale and before acquisition (45 members and only two planes.)

2.) Increased rates and dues even if you don't fly the aircraft involved.

3.)Insurance requirement for a new aircraft checkout for members prior to flight.

Changes in costs for membership rights, such as "marking to market" (like Naperville Flying Club), could increase a member's initial, or "catch-up" fee by several thousand dollars. Higher costs for membership rights could:

1.) Damage the Club's economic attractiveness to new members (especially young students).

2.) Cut the number of people on the waiting list to join. (Naperville Flying Club apparently has a waiting list to RESIGN!)

3.) Force competition with Naperville Flying Club and others, while we have a smaller fleet and more members per aircraft (less apparent availability).

This change would require active communication with all members for their input and vote (perhaps by proxy). Board members would receive some protection from liability by securing the vote of a true majority of the membership on very important issues.

Please contact me at KenBest@MegsINet.net if you have any questions or comments.

Thank you,Ken Best"

A motion was made and carried that the board of directors meet before the next meeting and come up with recommendations for aircraft rental rates and equity investment requirements. Since the next meeting where significant business issues will be discussed is on Tuesday, August 3^rd the Board’s recommendations are reproduced here for your reference:

This meeting was held on June 30^th and attended by Tom Braid, Nick Davis, Mark Clements, Matt Kenner, Bert Toppel, Jim Williams, and Reza Zarafshar. Tom Braid presented a history of costs of operating the airplanes for the last six years. From 1993 to 1998 the following gains and losses were reported:

150 Gain +$129

172 Gain +1,347

182 Loss -$716

For 1998, the BFC experienced to following gains and losses for each of the planes:

150. Loss (-$571) or (-$3.73/hr.)

172. Gain $1,347 or +$7.18/hr.

Thus, the board recommends that we increase the rates by $5/hr for the 150 and the 182 and leave the rate for the 172 unchanged. At the August meeting we will recommend that the membership approve these new rates:

150. $35

182. $60

The board concluded that there should be two classes of membership, Level I and Level II. Level I membership is offered as a way of encouraging new student pilots. Flight privileges would only extend to the 150 and the equity buy-in would be $750. Level II membership would include all of the airplanes and the equity buy-in would be $3,000.

Any member that wishes to upgrade their membership immediately will be given the opportunity to finance the new equity buy-in interest free at a rate of $100 per month. This amount would be in addition to the regular monthly dues. If you don’t choose to upgrade your membership now, then the entire additional amount would be due at such time as you chose to upgrade. Class II members must immediately upgrade their membership to Class III for an additional $100 before starting the program.

All Wait List members will have immediately pay the entire amount due for the level of membership they prefer when admitted to the BFC.

This equity investment would be fully refundable should you decide to leave the club. In the event that you terminate your membership before paying the entire amount, you will be refunded the full amount of money that you have invested.

At the picnic Ken Best presented a proposal to increase equity buy-in that will allow us to upgrade all of the aircraft over time.

Nick Davis will once again be planning our annual Christmas Party on either December 5^th or the 12^th. Suggestions for the restaurant included Carson’s in Wheaton and Lorenzo’s at the Fox Valley Mall. Contact Nick if you have a suggestion you would like to have considered by the membership.

We have new e-mail addresses listed this month for Mike Leavy and Tom Lechner, wait list member Kevin Brady and social member Doug Fitch.

E-mail addresses are now provided on the second page of the roster. If you would like to have your e-mail address included in forthcoming listings please let me know.

Andrea Hoyt was injured in a construction accident and has a walking cast on her foot. Her friend Mike has been chauffeuring her around and brought her to the picnic. Andrea has not been able to fly since her injury but is anxious to finish her training as soon as the cast is removed.

The BFC refreshment list was created as another way of recognizing special achievements. Criteria for membership vary with the length of the list. The person scheduled for refreshments should bring beverages and desert to the club meeting. If unable to attend, he or she should arrange to trade meeting dates with someone else on the list.

Andrea Hoyt August, 1999

Hubert Elsen September, 1999

This list is getting dangerously short! There is some hope, however. Andrea and Hubert are getting ready for check rides and Matt Kenner and Mike Pastore should have instrument written tests to report soon. I look forward to recording your achievements! I was planning to report a new Wings certification for Mike Leavy this month but his trip to the Wings Weekend had to be cancelled at the last minute.

Membership waiting list:

Chuck Walton

Craig McCormack

Andree DeSas

Anthony Marchechi

Lonnie Horn

Carl Price

Richard Widdicombe

Jan Jakubiak

Dave Irwin

Kevin Brady

Potential members are reminded that they must be present at the meeting when an opening is announced and be prepared to purchase the class of membership they prefer. Memberships may be upgraded at any time without penalty at prevailing rates.

We will be examining the tragic aircraft accidents of Rod Kenslow and John F. Kennedy Jr. and their safety implications at our next meeting.

These accidents should remind all of us that what we do is dangerous. Everyone can stand to improve their skills with additional ratings. It needs to be a defined goal of our club to have everyone achieve an instrument rating.

The June issue of Aviation Safety magazine reports that general aviation flying is 10 times more dangerous than driving. They arrived at their conclusions by the following calculations:

In 1996, 1.73 people died in automobile accidents for every 100 million vehicle miles traveled. To compare the aviation fatality rate, they noted that in 1996, there were 360 fatal accidents that resulted in 632 fatalities. From 1988 to 1998 the number of fatal accidents fell from 1.68 to 1.45 per 100,000 hours flown. In 1996 there were 1.75 fatalities per fatal accident. Thus the number of fatalities was 2.54 per 100,000 hours flown (1.45 fatalities/100,000 hours X 1.75 fatalities per fatal accident.) To compare automobile fatalities and aviation fatalities, it is necessary to convert 100,000 hours to miles flown. Assuming the average general aviation airplane flew at 125 knots (144 miles/hr.) 100,000 hours converts to 14.4 million miles. The general aviation fatality rate is then estimated at 17.6 fatalities per 100 million aircraft miles flown or ten times the fatal accident rate for cars.

The one conclusion that is inescapable in these calculations is that pilots assume significant risk when they fly. The judgements that they make about whether or not to make a flight or how they conduct a flight are critical.

The Businessmen's Flying Club will hold its next work night and cookout on Tuesday evening, August 3, 1999 at the Naper Aero clubhouse. Plan to arrive as early as you can after 4:30 PM. Work night credits are still in effect so be sure not to miss out on your $72 refund for 3 work night credits!

Work Night Credits:

Jim Barna 3

Jeff Braxton 1

Mark Clements 3

Nick Davis 4

Hubert Elsen 3

Matt Forsberg 1

Mike Goin 2*

Russ Haack 1

Harrison Hooker 1

Andrea Hoyt 2

Matt Kenner 3

Ray Kvietkus 4

Mike Leavy 2

Tom Lechner 2

Ken Leibach 1

Jack Lindquist 2

Craig Matteson 1

Dan Michael 1

Mike Pastore 1

Don Patterson 3

Len Pirard 1

Bert Toppel 3

Joe Weston 3

Jim Williams 3

Reza Zarafshar 4

INCOME

Billed charges, May, June Invoice:

Previous (-$651.44) $807.33

Dues, work night $2,025.00

May flying $3,186.11

Late fees $52.17

Total billed charges $6,070.61

Credits:

Expenses (-$300.63)

Balance Changes (-$379.16)

Net Invoice (-272.28) $5,391.39

Receipts

Charges $4,470.88

Interest (NOW) $11.77

Interest (MBNA) $223.58

Total receipts $4,706.23

PAYMENTS

Credits to members:

Fuel Away $276.06

Office 0.00

Postage $33.00

Total credits $300.06

Payments to outsiders:

Ameritech $16.08

Lumanair

C172 Misc. $212.91

C172 Alternator $1,313.61

C182 Oil Filter $129.31

C182 Nose Strut $262.93

Naper Aero

Accommodations $267.00

Fuel $937.84

Total payment to outsiders $3,139.68

Credit, Naper (-$168.75)

Total expenses $3,609.06

Cash Gain $1,566.55

BALANCES

NOW account $13,851.01

MBNA money market $58,611.30

Cash Total $72,462.31

Credit, Naper Aero $675.00

Grand Total $73,137.31

Receivable $1,188.67

Liabilities -$540.45

RESERVES

Insurance $1,100

Work night (Old) $1,944

(New) $2,160

Engines

C150 $12,714

C172 $16,443

C182 $26,314

Annuals $3,500

Total reserves $64,175

RESERVE SUPLUS $8,962

Retained Capital (inactive) $4,150