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Mad River Glen Coop

Finance Committee Meeting

March 3, 2005

 

Committee meeting called to order by committee chair Jed Kalkstein at 3:00 PM via conference call.

 

Committee members in attendance: Roy Liu, Eric Schoenholz, Jeff Paduch, Andy Dulik, Deb Steines, Jed Kalkstein (Chair).

 

MRG Staff: Jamey Wimble

 

Other Shareholders: Al Russell, John Zimnoch, Martin Beam

 

DISCUSSION:

Capital Budget for 2005

 

Jamey walked the committee line-by-line through a capital budget for the summer of 2005 in advance of the Board of Trustees meeting scheduled for March 5, 2005.

The previously devised capital budget formula, which is based on the prior four years’ financials and net share sales, suggested availability of $119,000.

Jamey presented an initial budget of $126,300 (see attached Exhibit A).

The following items were discussed in detail:

  • $29,600 of the budget presented has already been spent: (1) Single Chair Analysis Report, $15,000; (2) Snowmobile, $6,600; and (3) Snow Cat Belting, $8,000.
  • Lift 3 grips need to be replaced at a cost of between $30,000 and $50,000. This maintenance item was unanticipated but will be necessary to operate the lift going forward. In addition, there could be a potential issue with our insurance since the current grips exceed the maximum allowable 20 years in age. The current grips are obsolete, and Jamey has had difficultly finding appropriate replacements. He is currently examining alternatives, which include: (1) modifying a similar grip, $30,000; or (2) ordering the part from a vendor in Switzerland , $50,000. The second option represents a worst case scenario.
  • As has been discussed for several years, Jamey believes it is finally time to replace the current point-of-sale system. The system is unreliable, inefficient and has caused problems for the staff. In addition, the vendor is unresponsive regarding maintenance and troubleshooting, and it is difficult to run meaningful reports in order to effectively manage the business. Jamey believes a new system represents the best and cheapest alternative and will cost $40,000 (hardware and software). The committee recommended that Jamey continue to refine this number and also that he inquire about a possible 2 year payment plan from the vendor (assuming it is interest free).
  • The committee suggested that there may be funds available for the Starks Nest Deck within the Stark Mountain Foundation.
  • The committee briefly discussed items in tier 2 and tier 3 of Jamey’s budget (future expenditures). Jamey feels comfortable that such expenditures can be delayed.

 

The finance committee approved a capital budget of $119,000 with strong caution that Jamey scale the budget back wherever possible and not commit to a new POS System without first obtaining a more definitive cost analysis on the Lift 3 grips.

 

Action Items

  • Trim budget from $126,300 to $119,000 as per finance committee recommendation in advance of BOD meeting (Jamey).

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The committee chair will call the next meeting as needed.


The meeting adjourned at approximately 4:00PM.

 

Exhibit A – Capital Budget Presented

 

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