Rangatira Alpine Sports Club (Inc)

Minutes for the 53rd Annual General Meeting

Held at Remuera Golf Club, on the 27^th March 2011

Present: S Beuvink, M Beuvink, J Moses, M Moses, M Fairley, P Clemow, N Tribe, A Esdaile, A Haueter, B Herbert, B Sullivan, J McCurran, D Pressley, G Nicholas, M Hyams, A Niccol, P Niccol, G McGivern, M McGivern, J Tamis, D Papesch, A Beagley, B Ferguson, G Rees, P Boberg, R Wimsett, Prue Boberg, A Cornwall, B Wiseman, J Wimsett and V Papesch.

Apologies: Mary, Erica & Gina Edaile, Jon Paul Moses.

Obituaries: Dave Tribe passed away in January 2011.

Minutes of Previous Annual General Meeting 29^th March 2010.

Taken as read and accepted as a true record of the meeting.

Moved A Cornwall Seconded M McGivern

Matters Arising

• Constitution changes as voted for at the previous AGM have been made and the revised constitution published on the website and has been lodged with the Incorporated Societies office.

Presidents Report - V Papesch

Commented that he was pleased with the result of the 2010 season, particularly due to the tough economic conditions at present. He reported on the improvements made at Turoa have had a significant impact on the comfort of the lodges; including the storage in the bunk rooms, a number of improvements to both kitchens including new appliances. All part of the continuation of the 10 year plan to ensure that both lodges are as efficient and modern as we can possibly make then with the funds we have available. This seems to be working well, with attracting new members as well as other non-member groups and guests such as schools. A lot of revenue at Turoa is generated through groups such as Special Olympics and schools for secondary school races and virtually all are repeat business.

Feedback on why new members have chosen Rangatira is the open access to information on our website; everything about us including rates. Other club's have gone with an off the shelf package which doesn't allow access past the homepage unless you are a member.

Iwikau has had a record year which has had a lot to do with the racing focus and the scholarship programme; with an exceptional result of six trophies and a great result in the Masters.

M Urquhart asked the question of the lines company charges; V Papesch explained to the meeting the rising costs of having one provider in the Ruapehu District with a very old network. V Papesch reported that there are a number of lobby groups working at raising the issue with the Commerce Commission as well as the RMCA who are attempting to change the way the pricing methodology is applied. Vince doesn't believe that they will achieve a better outcome due to a very old network, a small catchment area and low demographic from with to collect revenue for the lines network.

What the committee is doing is focusing on what we can do to reduce our peak demand on power. We are continuing to make changes to the lodges where we can and within what DOC will permit.

Taken as read and accepted as a true and accurate record of the 2010 season.

Moved B Sullivan Seconded B Wiseman

Vince thanked three retiring committee members for their valued contribution over the past year; M McGivern, R Wimsett (who has been on the committee for a number of years), R Yallop (who has been on the committee for over 10 years and been responsible for building the on-line booking system and website editor).

Club Captain - M Fairley

Taken as read and accepted as a true and accurate record of the 2010 season.

Moved P Boberg Seconded P Clemow

Treasurer's Report - V Papesch

V Papesch advised the meeting that as no treasurer was appointed during the 2010 season that he had prepared the report. V Papesch advised the meeting that 2010 had been financially successful, although not quite to the level that the 2009 year had been; however, compared to other clubs on the mountain, our performance is well above most.

V Papesch reported on the occupancy levels at the lodge; we are almost as full mid-week as we are weekends.

V Papesch advised that there are some changes to the way the accounts are being reported this year; we have stopped depreciating buildings, which is in line with other clubs. The reason is that the club, in general, is cash accounting and depreciation is an accounting principal which is non-cash when you depreciate an asset for tax purposes. As we are tax exempt, V Papesch advised that there seemed no purpose in continuing to do so.

There is also a general policy to write off works that are not of a substantial nature that don't relate directly to the buildings; such as new wardrobe work, replacement of fridges etc. Where normally you would capitalize it and depreciate it. We have chosen to write them off in the year we incur the cost unless it is a major capital item.

This year's accounts also include a clear understanding of maintenance items to record a how funds are being spent.

Combined all these changes to the accounts provide a much clearer picture of true cash surpluses.

Taken as read and accepted as a true and accurate record of the 2010 finances.

Moved B Herbert Seconded A Cornwall

Auditors

V Papesch summarized for the meeting that KPMG carried out the audit for the 2009 year and there was an agreement to provide this service for $1000.00 (for two years). V Papesch received an email from the partner at KPMG advising that true charge had been $15,000 (for billable hours) and that it was unsustainable for the firm. They did propose a charge of $7000 to continue to provide an audit service for Rangatira.

V Papesch advised the meeting that he had subsequently made enquiries with four other accounting firms and has had interest from three parties. One is Mr G McDonald who is a retired accountant (also V Papesch father-in-law) at $2,000, a small firm who specialize in audits at $3500, and a current member.

V Papesch asked the meeting whether going forward we still saw the need to have the accounts audited or whether a financial review, which was not as costly, would still provide the rigor needed. Rising costs for an audit are due to increased international accounting standards that auditors need to comply by but seems uneconomically viable to continue for a club.

J Moses raised the issue that it is not a legal requirement of an Incorporated Society to be audited. V Papesch confirmed that the reason we do carry out an audit is that it is in our constitution to do so; as do many Clubs.

V Papesch commented that even when an audit has been carried out it comes with a statement of conditions due to the nature of how a small club like ours is run. Auditors are obliged to give a qualified report but raised the value of spending $7000 with little result.

J Moses commented that there is a lot more involved with IFRS and a greater amount of work required with auditing as a result. J Moses commented that he had considered whether we should change our constitution so that a member could carry out the audit or whether he knew someone who might also be interested in taking this on for a nominal sum, or that we don't have an audit at all.

A Cornwall recommended to the meeting an alternative, which is to carry out a review of the accounts rather than an audit, which would also require a constitutional change. V Papesch confirmed that the committee had discussed this but as it was within the 14 days prior to the meeting notices going out, it was unable to have been itemized in the agenda. As per the constitution, any changes to an audit or to the constitution are required to be put to a special general meeting.

The meeting agreed to call a special general meeting to discuss the audit; and 29 signatures were collected from members attending the AGM to this end.

A Cornwall proposed that no auditor be appointed for the 2012 audit; which was carried unanimously.

The meeting agreed to appoint Mr G McDonald as the auditor for the 2010 accounts. Carried unanimously.

Second motion was to call a special general meeting to discuss the issue of an audit for 2012 accounts. Carried unanimously.

Challenges for 2011

• Issues with the water tanks at Iwikau.
• Turoa hot water and dry room solution.
• Rugby world cup on changes to school holidays.
• Scholarship will be at Turoa in October - both ski & boarding together.
• Economy & fuel increases.
• Special Olympic Groups going to South Island this year which is a loss of $14k.
• New booking system.
• Ongoing development planning for Iwikau.
• Power charges and reducing our foot print.
• Summer usage for lodges still an opportunity to be explored.

M Urquhart asked what activities had been done to promote summer usage.

V Papesch replied that the committee had undertaken a number of initiatives with limited success.

Mary Rose Moses commented that she had been involved in a sub-committee to research options including marketing to schools again with limited success.

P Boberg asked what was the number of bunks available at Turoa; V Papesch confirmed it was 41 (fire regulations limit is 48).

Election of Officers

Nominations received from:

V Papesch - President

J Wimsett - Vice-President/Secretary

M Fairley - Club Captain

J Tamis

S McGivern

S Beuvink

A Beagley - Property Manager

S Trafford

A Haueter was elected from the floor

P Niccol was elected from the floor as Treasurer

C Milbank will be acting Maintenance Supervisor on a sub-committee.

Committee members voted in unanimously.

General Business

Custodians 2011

J Moses asked about the custodian for the 2011 Season.

J Wimsett advised the meeting of the custodians selected from a large application list. Steve Tann and Joanna Taylor have been appointed for Turoa; Steve is an executive chef and will cook the evening meal at Turoa for the 2011 season on a trial basis to see how the lodge operates with a chef. Tom Green who has been appointed to Iwikau, he worked for P&O for a number of years on cruise liners so has a strong background working with people. Contracts have been signed and returned.

G Rees asked if the cost of engaging a chef was much higher than a custodian; J Wimsett replied only slightly.

V Papesch confirmed it was $500/week for both Steve & Joanne.

M Fairley commented that Turoa does attract young families because of the accessibility and the committee believed that this was the lodge to trial a cook rather than at Iwikau, which operates well.

Membership Survey

V Papesch advised that this year the committee would be carrying out a survey which will be made available to the members at the lodge during the 2011 season; the goal is to better understand why people join and why they leave as well as what they expect from the club.

Membership Numbers: proposed that we hold membership numbers to 800; current numbers are about 630.

Moved M McGivern Seconded J Tamis

Lodge Redevelopment

Turoa

V Papesch advised that last year we:

Added bunk room storage to Turoa which greatly improved the facility.

Hot water enhancements to better manage the flow.

Improvements to the drying rooms (to both lodges).

New appliances & utensils and added an additional microwave.

Changed all the heaters to low wattage units (to both lodges).

Iwikau

Remedial work to the outside water tank

The deck replacement was approved by DOC last year and we have moved to working drawings for submit to permit.

Maintenance items for this year's work parties:

Turoa

Complete the reconfiguration of hot water at Turoa.

Increase the size of the drying room and install a heat pump with a dehumidifier.

Add an additional dining table and seating; to cater for 42.

Iwikau

Install new bunk room storage as was installed in Turoa last year.

Lodging plans with Ruapehu District Council for permit for new deck to commence construction late 2011.

Work on concept of redeveloping the entrance and changes to the custodian's room for Stage 2.

V Papesch presented a detailed summary of the projection of costs and a repayment schedule for Stages 1 and 2 and proposed bring Stage 2 forward to run concurrently with Stage 1; which was approved at the last AGM.

V Papesch proposed that this be added to the agenda for the special general meeting; cost for Stage 1 and 2 estimated at $150k.

M McGivern asked what interest rate had been used to calculate the repayment schedule.

V Papesch advised he had used 6% up to 8% based on floating rates.

M McGivern raised the issues of raising a debenture as had been done in the past for capital works.

V Papesch replied that he would be loathsome to burden existing members and believed that our ability to repay debt meant that we didn't need to as we have been running a net cash surplus of between $60-$70k each year.

Work Parties

Since last year's AGM the committee has introduced two compulsory work parties for all new adult members (over the age of 18), which has been very successful and beneficial for their membership.

This summer work parties have been well patronized by existing members and in some instances oversubscribed.

Booking System

Rob Yallop was not at the meeting so a demonstration of the new system did not occur; it is however available now for 2011 season.

J Wimsett advised the meeting that to make an online booking, members needed to create a user account to gain access. Anyone not sure how or what to do should get in touch with Jenny Newlove our Booking Officer.

V Papesch advised that the new system provided instant confirmation of your booking providing you have funds in your club account.

Maintenance Levy

B Herbert raised the issue of the maintenance levy, where is being used and how it is being applied and requested that it be clearly identifiable.

V Papesch advised that is had not been itemized on the subs this year due to the online system changes but that in this year's accounts maintenance levy collected and how it is spent has been separated out.

M Fairley commented that it also key that we have the right skill set to do the work needed.

V Papesch commented that work parties also build the club spirit that Rangatira continues to enjoy but this needs to be balanced with the right tradesmen to ensure the work is done to the highest standard.

B Herbert asked that the levy be clearly identified on the subs notice in 2012.

R Wimsett commented that the reason he is stepping down from the committee is the general apathy from the membership to get involved in maintenance.

M McGivern replied that it takes an immense amount of time to ensure that maintenance is planned and carried out over the summer; generally carried out by a few.

V Papesch advised that the issue of work parties would be covered in the member survey carried out this year and the process of creating a user account system which would ensure communication to members was improved. He would ask R Yallop to ensure that all members with email addresses held by the booking officer be added to the web communication system.

M Fairley put forward a motion that the incoming committee would look at the most efficient way to keeping in touch with members.

G Rees asked how much the new water tank was estimated to cost.

M Fairley replied that at this stage $50k was the estimate but nothing had been put out to tender.

J Moses thanked the outgoing committee for all their work.

Meeting closed 10.20pm.