Executive Council Meeting
Ontario CA
January 8, 2012
Official

Introductions
President's Report

Chief Financial Officer's Report
Executive Director's Report
NAA Report

Committee Reports

Old Business
New Business


Note: District IV VP B. Teague, District V VP J. Soto and CFO D. Holland were not in attendance

The regular meeting of the Executive Council was called to order at 8:00 a.m. by the President.


1. Opening Business
Introductions: : President Bob Brown, Bradford, PA; EVP Gary Fitch, Franklinville, NY; District Vice Presidents: I-Andy Argenio, Smithfield, RI; Interim II-Eric Williams, Schenectady, NY; Interim III-Mark Radcliff, St. Marys, WV; VI-Charlie Bauer, Norridge, IL; VII-Tim Jesky, Monroe, MI; VIII-Jim Rice, Universal City, TX; IX-Jim Wallen, Arvada, CO; X-Lawrence Tougas, Fairfield, CA; XI-Mike Mosbrooker, Oak Harbor, WA; NAA Rep Jonathan Gaffney; Executive Director Dave Mathewson, and AMA Legal Counsel Felix Gora, Rendigs Fry Kiely and Dennis.
 
Outgoing AMA officers attending were Bruce Nelson, District XI; and Bill Oberdieck, District VII.
 
Others in attendance were Rob Kurek, HQ staff; Travis McGinnis, Education Committee; Craig Bradley, IRCHA; Rich Hanson, AMA GRA; Randy Gibson, Dist. VII AVP; Steve Brehm, Dist. I AVP; Reid Condon, Dist. II AVP; Randy Brown, Dist. VIII Safety; Ed Tougas; Joan Oberdieck; Cindy Peters; and Anne Hanson.

Final Flight recognition (Appendix I): Attendees observed a moment of silence.
 
Additions to the agenda: Presentation to Council-Jim Rice/NEW BUSINESS
 
2. Consent Agenda: 

It was moved, seconded and approved by unanimous acclamation to approve the Consent Agenda. (Consent Agenda items: October 29, 2011 Executive Council meeting minutes and Dec. 15, 2011 conference call minutes.)

3. President’s Report 

a. Approve Eric Williams as interim Dist. II VP

MOTION I: Moved by G. Fitch (EVP) and seconded by C. Bauer (VI) to approve Eric Williams as the Interim District II VP.
MOTION passed unanimously.

b. April 2012 EC meeting date change

The President reported he would like to represent the AMA at the FAI meeting in Lausanne however the April EC meeting is scheduled for the same time. He asked if Council would consider holding the meeting during the Toledo Show. Following a few brief comments:

By acclamation, Council agreed to change the date of the Spring Council meeting to Sunday April 15, 2012.

c. President’s recent activities
• Attended the HEF (Holiday Electric Fly) in Geneva, Ohio.
• Spent three days in Muncie; met with staff-line people individually; worked on the FAA action program.
• Has been attending the FAA teleconferences each Monday. Council was afforded the opportunity to attend those webinars to understand how the committee has been working.

d. Committees (Appendix II)

The President has appointed a Council liaison for each committee; he would like to keep each committee to five (5) members max; the chairmen will populate their committees. The AST Advisory Committee and Ad hoc Nats Review Committee were dissolved; the Electronic Technology Committee should be considered inactive at this time pending further review. The chairman for the 2012 Nominating Committee is Jim Wallen.

COMMITTEE CHAIRMAN

Bylaws: Argenio
Contest Coordinator & Event Sanctioning Review-ad hoc: Mosbrooker
Education: McGinnis
Election Process Review-ad hoc: Fitch
FAI Executive: B. Brown
Finance: R. Miller
Flying Site Grants: R. Rachau
Hall of Fame: J. Neuberger
History Subcommittee-ad hoc: D. Kane
Insurance: I. Maine
Investment Managementt & Audit Oversight: G. Morehead
Leader Member Program-ad hoc: R. Kennedy
Marketing: Fitch
Muncie Site Usage: J. Hager
Museum Acquisition: D. Kane
Museum Steering: Teague
Nats Management: Guerin/Morgan
Nominations-2012: Wallen
Non Dues Revenue-ad hoc: Wallen
Property Development: Teague
Publications: Soto
Safety: B. Brown
Scholarships: Schimmel
Special Interest Groups: Soto
Staff Liaison and Affairs-ad hoc: Wallen

Council will receive an updated committee list and HQ will update the list on the website.

4. EVP REPORTNo report at this time.

5. CFO Report

No report at this time.

6. Executive Director’s Report

The ED presented an update on HQ operations.

Publications: work continues on the magazine redesign; the Feb. 2012 issue of Model Aviation is the first issue done by Quad Graphics; PP subscriptions continue to grow, the goal is to push subscription levels to 10,000 which seems to be the number where advertisers really jump onboard; electronic publications continues to grow; mid-2012 to implement digital Model Aviation; and HQ is driven to have mobile versions of all the publications. The updated digital archives of Model Aviation are still on track to be launched the second quarter of 2012. R. Kurek addressed Council at this time noting print magazines are not going away and it’s important to put resources behind print magazines. He noted there was a tablet in the AMA booth at the Expo with sample pages on the new redesign; he was hoping to receive valuable input from the members at this and other events throughout the year.

Competition: none have been submitted at this time, but there is the possibility of HQ receiving two proposals that AMA host world championships; HQ has been approached by IMAC regarding hosting the 2014 IMAC world championships (this would be treated as any other event being held on site); 45 new CD licenses have been issued since the last EC meeting; looking to launch the on-line sanctioning process in the near future.

Safety & Member Benefits: in the middle of developing the annual charter renewal packets which will go out to clubs soon; in the process of updating the field location information; in the middle of the policy renewal period.

Marketing/Programs: meet regularly to improve the consumer/member experience program; working on an internal content management system (M. Benson to report later); and bumping up the use of Exact Target.

PR/Development: working towards consistency in all online publications; have approximately 2,000 contacts in the stakeholder database outside of the AMA membership, that will be utilized when the NPRM is released (M. Mikulski qualified each one of the contacts either by phone or email); still working on the FAA/NPRM prep, building communication media relations (including NY Times and WS Journal); continue to build relationships within the Muncie community; the ED reported the President of the Chamber of Commerce indicated that the Chamber owns a billboard at the Rt. 67 Exit on Rt. 69 and it was offered to AMA in the summer for a period of time. The only cost to AMA would be approximately $90 for vinyl material.

Education: continue to build relationships with other aviation entities/organizations; now have model aircraft program in the CAP curriculum which has gone out to 2,200 CAP squadrons around the country; Children’s Museum effort continues. The collaborative display resulting from the NASA grant opens on February 24th; advertising Camp AMA generating interest but will need to decide if we move forward with it this year; G. Schimmel working on identifying leader member outreach specialists (8 individuals) who will work within the communities much as Gordon has done (holding round table discussions, etc.), this will provide significant savings to AMA; developing AeroLab 2 from Alcoa Grant, it was stipulated the grant must be used to develop a more kid-friendly program; work continues on the Education website.

Accounting: closing out 2011 and preparing for annual audit; tightening accounting procedures.

Membership: continue with member renewals (early Dec. down 5%); when membership renewal notice via email went out in mid-December there was a bump in the numbers by over 3%; continue to work on procedures to allow front-end pro rating of new memberships.

Museum: continuing with the long-range plan and remodeling.

Facilities: working on repairing storage facility; rental properties have not been maintained well and PADCOM will need to address as priority issue this year.

IT: upgrade for internet system is in place on our end, completed fiber optic upgrade; in process of installing new server and hardware Council approved in 2011, this will improve system performance; still looking for new program analyst.

Flying Site Assistance: T. Stillman has 96 open cases; he worked both the National League of Cities and National Parks conventions and expects to report to Council soon.

Contingency budget: at the ED’s request, the department heads collaborated to develop a contingency budget that cut operating expenses by 2.5%.

Miscellany: The ED asked new Council members to sign the Code of Conduct documents and turn in; VP orientation will be January 20, 2012, in Muncie; the ED thanked Linda Rice for organizing the FAA and Non Dues Revenue Committee meetings at the Ayers Hotel; the President appointed an ad hoc committee (J. Wallen, D. Mathewson and B. Brown) to initially address how a 300k bequest could be allocated.

7. NAA Report

• J. Gaffney thanked AMA for allowing NAA to present Dr. Laird Jackson the FAI Aeromodelling Gold Medal that was awarded to him in Lausanne Switzerland last year during the CIAM meeting.
• NAA closed their budget last week; showed modest operating profit as records work was down and paid FAI inflation dues (expected again this year).
• Gaffney noted the story about the Xtreme Flight Championships in Muncie, in the Smithsonian’s Air and Space magazine; this is great exposure

At this time on behalf of Council the President awarded Bill Oberdieck the Meritorious Service Award for his contributions to the Executive Council. Bill stated he was proud to serve on Council and thanked them.

8. Committee Reports

FAA
NPRM: Hanson reported that Council has a good understanding of where we are at this time, but for the benefit of new Council members gave an overview of the process and status to date. Since September 2011 the group has been pulling items from the matrix and including them in the standards. They presented to the FAA reps this week, the simplified and consolidated document around the framework of the AMA safety code. The FAA reps felt the document did not have enough detail on how to ensure hazards will not happen (fly-away, loss of control, etc.). Rich reported there are ‘high end’ items that deal with flying at altitude, flying at high speed, flying with technology, night flying, and pilot proficiency that the FAA wants addressed in the standards. They (FAA reps) have routinely pressed for a training program and the ARC group has continually said that AMA will not institute one; it’s problematic for the community, problematic for the AMA in administering it, as well as being expensive. The FAA reps asked the group to consider a two-tier program; one for those who can fly and one for those who cannot. The direction the ARC group takes must come from Council. Attending the ARC’s weekly webinar was offered to all Council members; they were cautioned to identify themselves as being on the call.

The Notice for Proposed Rule Making (NPRM) is still in development and Hanson reported there has been another delay. It is out of the FAA but has two more stops; the Secretary of Transportations office and the OMB (Office of Management Budget). It is possible we won’t see the rule until late April/early May 2012. The standards group will continue to move forward; Rich thanked those who are on the committee for their hard work and tireless effort.

Discussion: there will be a separate set of standards for each: turbine flyers, park flyers, and flyers of planes over 55 lbs, and then the general standards to encompass the other inventory of aircraft. Lynn Spencer suggested developing a class of ‘special operations pilot’, where an individual would have had to do X, X and X to qualify. This would address the small percentage of people who want to fly beyond what the general standards are written for. The standards as developed by AMA must be all encompassing; they cannot direct someone to another document outside of the standards. As technology advances, amendments to the standards would have to be FAA approved and inserted into the standards.  AMA needs to see how the FAA approaches several standards before they can best develop the standards associated with them. Rich reported the need to mitigate the pilot error hazard, so the group has been struggling with how to ensure the newbie has a minimal level of knowledge, skills and ability. There was concern expressed that the FAA may have already come to the conclusion that pilot training/certification will be an absolute requirement within the standards. As previously stated Council is not willing to manage/police that requirement; it would also be a tough sell to the membership. 

Amendment to FAA reauthorization bill: the model aviation amendment remains included in the Senate version of the FAA reauthorization Bill. The extension to the current funding bill expired Jan. 31. Rich feels there will be another short term extension and congress will continue work on the bill.

Temporary Flight Restrictions (TFR): this item is still on the table but the group is not actively pursuing it. Hanson expects many TFR’s this year due to the elections. AMA was encouraged to develop a list of prominent events they want consideration for during TFR’s. Gaffney will try and set up another meeting (Hanson felt it would be helpful to include the Secret Service and/or Homeland Security since they typically drive the TFR’s). It was suggested that an emotionally appealing story be planned for the media, possibly showing a group of youth wanting to fly but are unable to because of a TFR. This same type of approach was considered with regard to the NPRM.

Model flying at public airports that receive federal funding: these airports sign a compliance agreement which includes not shutting down the airport for non-aeronautical activity; they identify model flying specifically as a non-aeronautical activity. In the same document they acknowledge model aviation as an important part of aviation and encourage the airports to work with model aviation. California has aggressively shut down model flying at airports and following discussion with administrators, Hanson felt it best not to push the issue at this time. It is up to Council to decide whether to deal with the issue on a case by case basis or push harder and work through the command structure.

The President thanked Rich and the working group for the time and effort they have volunteered on behalf of the Academy.

Non Dues Revenue – ad hoc
C. Brooks reported the AMA needs to look at non-dues revenue to optimize certain areas, consolidate others and eliminate those where AMA is not getting a return on their investment.  Three new committee members were introduced; Dr. Don Schrello, Dr. Laird Jackson (Doc), and Mark Atwood. The committee was charged with identifying the various revenue streams and determining how to maximize those. In addition, they are actively pursuing charitable giving (estate claims, client giving, etc).

Mandee Mikulski was introduced; she has been with AMA for three months. She is a masters’ student in Public Relations from Ball State University and has been updating our current stakeholder database (Tapestry). It is very sensitive work and is done in a confidential and professional manner.

The committee also talked about creating another 501(c) 3 that would interface with AMA to facilitate charitable giving; there are benefits as well as drawbacks to this idea.  The committee also talked about setting up an endowment fund; would have to determine how best to handle the donations. (Possibly grow the fund and identify specific projects that would be addressed with the earnings from the investment.) Wallen was encouraged by the committees’ first meeting at uncovering some good ideas and potential direction. The committee will keep Council informed and make sure they are working within Council’s organizational objective.

9. Old Business

FAI Budget (Appendix III):  At the October 2011 EC meeting the FAI Executive Committee was charged with reducing FAI costs to the AMA; FAI funding was withheld from the 2012 budget pending their report.

B. Brown reported that due to Team Selection Program commitments, the FAI budget cannot be cut a significant amount for 2012 and 2013. The committee feels that due to lack of interest/participation, there are teams that could be cut. The President cautioned that if cuts are made, Council must stand behind their decision. The people involved in the program are extremely committed and will voice loudly their displeasure. Council was informed that the FAI is developing junior categories for all of the programs. The funding for 2014 and beyond as presented in the report reflects a $55,200 reduction. This puts the USA program more in line with the support provided by other countries for their teams. The FAI committee will look at 2014 and make specific cuts.

MOTION II: Moved by J. Rice (VIII) and seconded by M. Radcliff (III) to approve the FAI portion of the 2012 Budget; the President will attempt to cut approximately $10,000 from the 2012 FAI program.
MOTION passed unanimously.

Part of the committee report states that the AMA will not host any more world championships. Craig Bradley is attending today's meeting on behalf of IRCHA; they would like to put forth a proposal to host the 2015 F3C (helicopter) world championships. The President informed Mr. Bradley that if the FAI program is allowed to continue, and if F3C is on the program, it would be up to him and IRCHA to show Council they can run the world championships with guaranteed solvency. Mr. Bradley stated the biggest problem is the inability for IRCHA to control the entry fees; they are mandated (capped) by the CIAM. He requested the President attempt to have the Bureau increase the entry fee for competitors. In the President’s discussion with J. Gaffney, the AMA is not the only facet of aviation suffering due to the narrow-mindedness of the FAI. C. Bradley offered his assistance in any way that would be helpful.

Based on a recent WC there needs to be a better understanding of the organizational structure of the WC host (AMA) and a declaration that budgets will be adhered to. Before AMA considers hosting future WC, a document must be created that outlines the goals and responsibilities of AMA and the SIG; final authority on anything rests with the AMA.

HQ Computer Systems Upgrade: When initially talking about this upgrade over a year ago, it was with regard to improving GTI to better manage the member database. Since then it has morphed into how to manage the member database, the member and Internet experience, and do it in a coordinated effort. M. Benson shared ideas on the direction HQ would like to proceed using automated technology and an integrated approach. If the new system is built correctly, it can touch on every department in the organization, be a potential resource for current membership, clubs, district websites and it all would be connected.

Mathewson is looking for the latitude to move in the direction that not only addresses the membership database but addresses the entire big picture that ultimately all has to come together. The ED reported there is 60k in the capital budget that was directed to getting the membership database going in the right direction; he is asking for that to be reallocated to the more global issue. The next step would be for all those involved to decide what is wanted in the system looking 4-5 years down the road. (What Council sees as a value to them, what staff needs, etc.).

Council supported the reallocation of the 60k to the more global concept; the ED will move ahead, come to Council for input and build from there.

Lunch

EXECUTIVE SESSION 

10. New Business

Check presentation: Jim Rice has held the J. H. Rice Memorial Fly-in for the last 11 years in memory of his father. This past year (2011) the event also included a district celebration of the 75th anniversary of the Academy. A raffle was held and the proceeds from the ticket sales were to be donated to the AMA scholarship; Jim’s father was an advocate of getting kids involved in AMA.  On behalf of Jim’s father, Jim and Linda Rice presented a check for $2,500 to the President; the donation is earmarked for the AMA Scholarship Fund. Council thanked the Rice’s for the generous donation.

NEXT MEETING
Sunday April 15, 2012 – Toledo, Ohio.