Executive Council Meeting

October 26, 2002
Muncie IN

Official

Note: All minutes are unofficial until approved at the following Executive Council meeting (February 8, 2003).

It was moved, seconded, and approved by acclamation, to accept the minutes ...
I     that the Executive Director be authorized to enter into negotiations and to sell ...
II    to delay for one year, the implementation of that portion of MOTION III from ...
III   to accept the 2003 Operating and Capital Budgets as presented by the ...
IV  to approve the sanction for the 2003 National Aero Modeling Championships …
V   to accept document titled GUIDELINES FOR ACCEPTANCE OF TURBINE
VI  to accept document titled FLIGHT DEMONSTRATION WAIVER PROGRAM ...
VII to establish the Board for the formation of the Captive. The Board will be …
that the eleven District Reports in Model Aviation be done in color. 
VIII to renew the Executive Director’s contract for the next three years, as …

Introductions
President's Report
Executive Vice President's Report
Executive Director's Report
NAA Report
Committee Reports:
New Business
Old Business
Action Items

The President called the meeting to order at 8:00 a.m. He reported that Don Koranda, NAA Representative, would be unable to attend the meeting.

INTRODUCTIONS

President Dave Brown, Hamilton, OH; Executive Vice President Doug Holland, Raleigh, NC; District Vice Presidents: I-Don Krafft, Duxbury, MA; II-Dave Mathewson, Camillus, NY; III-Bob Brown, Bradford, PA; IV-Bliss Teague, Hickory, NC: V-Jim McNeill, Birmingham, AL; VI-Charlie Bauer, Norridge, IL; VII-Bill Oberdieck, Southgate, MI; VIII-Sandy Frank, Weatherford, TX; IX-Russ Miller, Carrington, ND; X-Rich Hanson, Scottsdale, AZ; XI-Bruce Nelson, Spokane, WA. Executive Director Joyce Hager; and General Counsel Felix Gora.

Attending from Headquarters staff: Carl Maroney, Steve Kaluf, Rob Kurek, Vicki Barkdull, Colleen Pierce, Mary Hurn, Sheila Tweedy, Greg Minch and Tom Schwyn. Others attending included Joe Amato, Turbine Committee; Bill Lee, AVP District VIII; Jerry Neuberger, AVP District X; Douglas Barry, Finance Committee and Shirley Teague.

PRESIDENT’S REPORT  

· APPROVAL OF JULY 15, 2002 EXECUTIVE COUNCIL MEETING MINUTES
It was moved, seconded, and approved by acclamation, to accept the minutes of the July 15, 2002 Executive Council meeting.

· ANNUAL MEMBERSHIP MEETING
The annual membership meeting will be held from 4:00-4:30 p.m. on Saturday, April 5, 2003 during the Toledo Show. Headquarters will contact W. Yeager to determine if there is a venue available to accommodate the meeting. If none is available, the meeting will be held during the AMA Homecoming Event.

· Since the visit to ABB, the building has been sold. The developer that purchased it intends to subdivide it and lease it out. This does not preclude AMA from investigating the possibility of holding an event there; but it does diminish the possibility.

· The President met with Royal Insurance, driven primarily by the situation AMA had with Torrey Pines. He gave a brief overview of how the situation evolved and reported that as of this time, Torrey Pines is operational and is working out. He warned that AMA could fall victim to the same type of situation again.

The President indicated that Royal Insurance is predisposed to working with the AMA to renew the insurance policy for 2003; however Gen Re (reinsurance company) may not be willing to renew. Council members received copy of a notice of non-renewal from Royal. The President stated that Royal is required to give 90 days notice if they do not intend to renew and he felt the notice was given as a precaution.

· AMA purchased the John Pond plans service. This consisted of 15,000 plans at a cost of $25,000. It also includes 1,600 engine drawings. The major purpose of purchasing the collection was for archiving in the Museum. However, there is an opportunity to generate income from this acquisition. As Pond ran his service, he generated about $40,000/year in sales since 1995. Two individuals have made proposals to duplicate and fulfill the plans orders. There is also the possibility of setting up the operation in-house at AMA. The President appointed a committee comprised of Charlie Bauer, Rob Kurek, Bob Hunt and himself to recommend the best way to serve the members. The following should be included in the committee’s discussions: the focus should not be only the Pond plans, it should include AMA’s and others which may become available to AMA in the future; the ED indicated she is not completely satisfied with the engineer currently doing the transfers and the goal was to eventually bring it back in-house; look at pricing structure; determine the cost (including equipment, materials, employee). The committee will present it’s finding to the Executive Council prior to anything being done.

· The President noted a problem that has come up in relation to contest board activity. There has been some controversy over which board handles RC Indoor proposals. With the ever growing popularity of Indoor RC we will likely face further problems. At this time, the Special Events CB Coordinator is handling the proposals. It may be necessary to create additional contest boards or define how the proposals will be handled.

· The President has been asked to recommend Frank Zaic for one or more FAI medals. (Recommended by a person from New Zealand.) He is having difficulty coming up with a so-called biography of Zaic. This information will be used in presenting his name as a candidate for the award(s). (Antinov Diploma-for technical achievements, or the highest award, the Aero Modeling Gold Medal-aimed at organizational things.) Frank Zaic is probably the only surviving member of the original AMA board of directors. The President requested input from Council members prior to the November 15th deadline.

· The President informed Council that there had been someone impersonating him over the Internet.

· The President then presented two awards: Hall of Fame to Charlie Bauer, and the Distinguished Service Award to Jerry Neuberger.

· 2003 EC MEETING SCHEDULE
After a brief discussion, the dates for the 2003 Executive Council Meetings were tentatively set as: February 8-9, 2003; April 26-27, 2003; July 12-13, 2003 (if hotel rooms are not available, dates will be July 19-20, 2003); November 1-2, 2003 (the November dates could be changed dependant upon the dates of the FAI meeting). The Budget Committee will meet September 26, 2003.

EXECUTIVE VICE PRESIDENT'S REPORT 

· There was a delay in renewals going out, which resulted in less money being received as of this time than normally is taken in.

· R. Miller will report on the budget; D. Holland stated he feels this is the best budget ever presented (with regard to total accuracy for expenditures and a very strong estimate for income).

· Captive work is on going.

EXECUTIVE DIRECTOR'S REPORT 

· The Membership Report handed out reflects how the year ended.

· On line renewal bringing in the largest amount.

· Membership working on mail received as of October 11. As of today, have 34,481 members updated for 2003.

· As of this date there are 265 Contest Directors and 59 Officers, who have paid their portion (50%) for membership. AMA has also received $1,585 from Senior Citizen members who did not take the discount offered.

· Fewer ballots are being received at Headquarters and quite a few of those are blank.

· The ED was approached by a real estate agent with regard to the sale of approximately 43.5 acres of property. The President explained why AMA originally purchased this property.

· The ED thanked S. Frank for offering a stress management class to the Membership Department. He also answered phone calls in the Membership Department for two hours.

· Kudos to the magazine department for an excellent Nats issue.

· The ED reported on the possible sale of a business to AMA that would be turned over to the plans service business AMA is investigating. This issue is to be considered confidential.

· B. Lee reported on the charge of fraudulent use of a credit card the day after a member renewed his membership. He noted that numbers are not maintained in the system in any form that can be read, everything is encrypted and all transmissions are using secure software.

· The ED toured Banta Press; was impressed by the people and how they constantly look at ways to reduce the cost of producing the magazine. They offered tours of their Dayton plant to anyone interested.

· Attended a meeting with Fish and Wildlife representatives relative to Schwangunk. D. Mathewson reported that Galeville is not an issue anymore, however, the door was opened to the possibility of partnering with the AMA in a cooperative effort to determine a set of guidelines for modeling activity in refuges similar to Schwangunk. J. Mealy raised the issue of entering into a cooperative study for one year at the Galeville site to determine if there are negative affects as a result of aero modeling activity. The ED sent a letter of thanks to Dr. Parker for the meeting, and again brought up the idea of a one-year study; no response has been received as of this date. D. Mathewson sent letters to Congressmen Gillman and Hanson outlining the above.

 
 
MOTION I: Moved by R. Miller (IX), seconded by B. Teague (IV), that the Executive Director be authorized to enter into negotiation and to sell the property west of the bypass. MOTION passed: 11 yes; 1 no (V).

The President then entertained discussion of the 2003 dues structure established for officers and CD’s. It was the perspective of many members that they fulfilled their obligations under the standards set prior to the dues increase, and that they should receive full credit for those services. Following much discussion and an executive session by Council, the following motion was made.

MOTION II: Moved by J. McNeill (V), seconded by D. Mathewson (II), to delay for one year, the implementation of that portion of MOTION III from the July 2002 meeting which refers to the earned memberships. MOTION passed unanimously.

This will be placed on the web site immediately. Council, as a group, should discuss this issue over the next nine months to determine what, if any, further action is needed.

NAA REPORT
Since the NAA representative was not in attendance, no report was given.

COMMITTEE REPORTS

Budget

The budget will need to be revised to reflect the change as a result of MOTION II.

The Committee met in October. One of the items discussed was the non-owned aircraft coverage. The cost is $5,000/year. This insurance covers any situation where AMA is named in legal action involving private aircraft, where the traveling was done for AMA business. AMA has the same type of coverage as it pertains to automobiles. The Committee felt it prudent to retain this coverage.

Chairman Miller indicated that in the future when a motion is made that involves money, it must be determined from where in the budget that money will come.

Budget increases and decreases were briefly reviewed. As many cuts in the budget were made as feasibly possible. To further cut the budget, a list of priorities must be determined and it may be necessary to discontinue some programs.

Discussion among Council included:

· There was concern about members’ perception that some programs for our members were cut yet we are spending money on the national site. The money budgeted for the site includes improvements needed for CL World Championships.

· Within the budget, the insurance alone is nearly 20% of it. Need to be prepared that we will not be able to purchase insurance. RFP’s are being prepared to solicit other carriers. Also looking at the possibility of reducing levels of insurance.

· For all line items that are determined by a formula, the formula remained the same. With the exception of the VP’s budgets which were figured to the formula and then cut by 5%.

· Relative to the Capital Budget, each department pared down their respective budgets.

MOTION III: Moved by C. Bauer (VI), seconded by B. Teague (IV), to accept the 2003 Operating and Capital Budgets as presented by the Committee. MOTION passed unanimously.

In a brief discussion on the FAI budget, the President noted that because of the interest in the Science Olympiad, AMA selected a Junior Indoor Team that went to the world championships. The two Juniors finished first and second among the Juniors.

C.A.R.E.
The Corps of Engineers have instituted a program that requires updating certification of environmental impact studies. The committee is working on a model program for updating an environmental impact study. Expect to have this at the next Council meeting.

Nats Management (Appendix I)
The meeting was well attended; the President was thanked for being there to head off any possible problems that came up.

All juniors and seniors who enter and do not otherwise place in an event (receive a trophy or plaque) will receive a Participation Award.

Had only about 30 less participants this year than last. It is the first year since the Nationals have been held in Muncie that the numbers have gone down. It was noted that two world championship teams were out of the country at the time, which most likely had an impact on the numbers.

Improvements to the site this year included ten RV electric outlets at Site 4; put in 2-50 amp vendor outlets; installed air conditioning in trailers used for scoring and Center Drive (CR 200S) was widened and paved.

T. Schwyn gave a presentation on what he plans to do marketing wise, to help with the Nationals.

Due to a voluntary compliance with an urgent sound reduction proposal the IMAC sound task force worked very hard and the sound at scale aerobatics was down immensely this year. They have requirements in place now that will take affect in 2003, to reduce the sound.

The groups running the events were happy with AMA’s weather system and very happy with the maintenance staff.

MOTION IV: Moved by C. Bauer (VI), seconded by R. Miller (IX), to approve the sanction for the 2003 National Aero Modeling Championships as a "AAAAA" event. Indoor to be May 28-June 1, 2003 and Outdoor June 27-August 1, 2003. MOTION passed unanimously.

The dates for the 2004 Outdoor Nationals have been scheduled for June 25-August 6 (with the interruption of the CL World Championships from July 4-11, 2004). Indoor has not yet been set.

National Security

Work continues on a report. The President is hearing more and more on the subject and asked if others were. C. Maroney received a call from an AMA member in the Midwest who works at the FAA regional office. This person is dealing with a request for an unmanned vehicle to be flown in St. Louis area with a 5-mile radius. The FAA person wanted to know what AMA’s position was in this matter. Maroney used the document (he indicated the document had not yet been reviewed by Council) to explain what the position was on model aircraft being controlled by GPS. Maroney feels this document will be very valuable.

D. Mathewson read a portion of an item from the American Correctional Association, written by a gentleman with the National Institute of Justice, concerning an RC helicopter launched by remote control and commanded via a laptop computer. Other Council members noted similar happenings they were aware of. The President expressed concern that these types of situations could have severe implications on model flying in the future.

Park Flyers (Appendices II)

The Council received a report by T. Schwyn (Park Flyer Market Review, Product Distribution/Description), and a compilation put together by C. Maroney of Slow/Park Flyers Summary of Models. A noted point of interest was on March 20, 2001 there were 32 flyers on the market, now there are about 130 available. T. Schwyn gave a brief summary of his report.

The Committee continues to look at a way of getting those people who are not currently AMA members into the organization, whether it is by offering a dues incentive or some other means.

D. Mathewson pointed out another area of concern. Cox is marketing a low cost park flyer, with a reference on the box to using the included remote control to take pictures flying over your house. This is a big safety issue. C. Maroney has a letter going to Cox relative to this issue.

R. Kurek indicated that an ad was placed in the magazine looking for an individual interested in assisting them in developing an on-line magazine that would be targeted toward newcomers, including park flyer enthusiasts. This site would contain a how-to section, provide links to other sites and would have to change content frequently.

C. Maroney indicated that AMA has an agreement with the manufacturer Megatech, to include the park flyer brochure in their kits.

Safety (Appendices III, IV)

The two items to be addressed are the change to the safety regulations to gas turbines (addition of Provisional For Helicopters), and a trial program for 2003-provisional turbine waiver for fixed wing aircraft that can be done at a sanctioned event with the approval of the CD providing time to do that.

The helicopter document came about with the support of industry. Century Helicopters (California), Peter Chow and another member of his firm spent much time developing the language to help the committee in developing the rules for turbine helicopters.

MOTION V: Moved by C. Bauer (VI), seconded by B. Nelson (XI), to accept document titled GUIDELINES FOR ACCEPTANCE OF TURBINE HELICOPTERS/TURBOPROPS INTERFACE CONFIGURATION. MOTION passed unanimously.

C. Maroney thanked Joe Amato and his committee on the time and effort they volunteered to put in, to help make these programs for the AMA members.

The next proposed document (trial program for 2003/provisional turbine waiver) is an alternative to the existing system. Came about through some discussion Maroney had during the Heart of Ohio Jet meet he attended. After considerable input and brainstorming with the fliers during that meet, this document reflects a consensus of how they feel they can best help bring a person into this facet of the hobby.

D. Mathewson provided an item outlining JPO’s concern over the above-mentioned proposal. He pointed out that JPO had submitted a proposal for accepted turbine waivers to the Safety Committee for review. Maroney stated the committee voted not to implement JPO’s recommendations; however, the document being proposed by the Safety Committee can be viewed as a combination of ideas from JPO, Tiano, and the Safety Committee.

It was suggested that the following be added to the document: "Under a provisional waiver, the member is not allowed to fly unassisted in an AMA sanctioned event." The question came up of whether the person can fly at the event using a buddy box. It was determined that this will be up to the Contest Director.

Prior to voting on the motion, the President noted that the only change to the document was changing the title from "provisional turbine waiver" to "flight demonstration waiver".

MOTION VI: Moved by R. Miller (IX), seconded by B. Nelson (XI), to accept document titled FLIGHT DEMONSTRATION WAIVER PROGRAM FOR FIXED WING AIRCRAFT. MOTION passed: 8 yes; 4 no (I, II, V, VII).

This is a trial program for 2003, and expires 12/31/03 unless otherwise stated.

A list of all turbine waiver holders (name, AMA #, city, and state) will be placed on the AMA web site.

LUNCH 12:50 p.m. – 1:50 p.m.

The President continued the meeting with an item from New Business. Following this item, the meeting continued with the original agenda format.

NEW BUSINESS

Change VP column photos to color
A motion was made (Dist. V) and seconded (Dist. VII), that the eleven district reports in Model Aviation be done in color. Various magazines and newsletters were distributed to Council for review.

The discussion that followed included:

· The estimated cost would be between $42,000-$84,000/year.

· The cost listed above, is for the publishing costs involved only; it would take additional computer equipment (such as for scanning), would create additional work for staff and possibly require another staff member. The Publications Committee deemed it was an unnecessary cost.

· It was felt by some that some people never read beyond where the color pictures stop. In an attempt to increase readership of the VP columns, could examine the possibility of moving those columns to the front of the magazine.

· It was explained how the magazine is put together in "signatures" of sixteen pages, and adding additional pages, or color to certain pages, is not as simple as it may sound.

The subject was referred to the Publications Committee for further study. The committee should look at how moving the VP columns, or the whole AMA News section, would affect readership and cost.

OLD BUSINESS

Captive Update
The Captive issue is currently on hold; however it was expressed that Council should continue to move forward. The President reiterated that a previous motion was made to establish the captive to a dormant state. This allows AMA to use it as a tool to access more insurance companies from whom to get bids, and it also gives AMA the ability to do a self insured program.

Discussion on this subject included:

· The Captive is a separate corporation from the AMA, and as such, the majority of the Board should not be current AMA Executive Council members.

· F. Gora informed the Executive Council that a document had been developed and reviewed. This document includes proposed information regarding Directors. It proposes that the initial board will be determined by the Executive Council and once that is done, the board members appoint their successors.

· General Counsel is awaiting a written response from the bank regarding release of assets to activate the Captive. He will contact the bank and ask them to inform AMA of the status of that request.

MOTION VII: Moved by B. Nelson (XI), seconded by J. McNeill (V), to establish the Board for the formation of the Captive. The Board will be Dave Brown, Doug Holland and Carl Maroney. MOTION passed unanimously.

Delta Darts

Research revealed Frank Ehling provided the Delta Dart to the AMA as long as credit was given to him. General Counsel will develop a one-page agreement to establish control and requiring those producing the kit to acknowledge F. Ehling.

The President requested he receive copies of this agreement that he can take to the FAI meeting, to give to those countries he knows are using the Delta Dart.

NEW BUSINESS (continued)

Committee reports requiring EC action must be submitted with all backup material for review, at least 3 weeks prior to the EC meeting. Discussion of this subject revealed that at previous meetings, Council has been presented with issues to vote on that they did not have prior knowledge of. The ED recalled a past motion that dealt with agenda items. (If any new items came up, they could not be voted on at that meeting.) It was pointed out that a majority of committees meet in the immediate days prior to an EC meeting, which does not permit the proposed time limit for submitting action items. Any Council member can move to table a motion, rather than being forced to bring it to a vote.

It is strongly recommended that committees endeavor to provide as much back up information as possible prior to the meeting. Headquarters will research any prior motions associated with this subject.

Council met in Executive Session 3:10 p.m. – 4:10 p.m.

MOTION VIII: Moved by R. Miller (IX), seconded by J. McNeill (V), to renew the Executive Directors contract for the next three year, as presented. MOTION passed unanimously.

The President inquired whether Council members knew of any studies or situations of interference between RC transmitters and pacemakers or implanted automated defibrillators. C. Maroney indicated he did not know of any incidents, but informed Council that Jeremiah Courtney had previously looked into this matter and provided Headquarters with a letter on his findings. The President requested that Maroney locate the letter and pose the question to the Frequency Committee for a response.

Contest Board Proposals requiring Executive Council votes have been sent out; Council members should vote and return those forms to Headquarters as soon as possible.

AWARDS

NEXT MEETING

February 8-9, 2003

The meeting adjourned at 7:30 p.m.

Respectfully submitted by JoAnne Brown, Recording Secretary of the October 26, 2002 Executive Council Meeting.

Action items as a result of the October 26, 2002 EC Meeting

1). Headquarters should contact W. Yeager to determine if a venue is available during the Toledo Show for the annual membership meeting.
2). Ad hoc Committee of Charlie Bauer, Rob Kurek, Bob Hunt and President to investigate ways to run the plans service, and serve the members. Committee will present its finding to Council prior to taking action.
3). A list of turbine waiver holders will be placed on the AMA web site. (Name, AMA #, city and state.)
4). Publications Committee will review placement of AMA News Section/VP columns to front of magazine; how will it affect readership and cost.
5). Headquarters to research previous EC votes associated with voting on issues at a Council meeting that were not listed on the agenda.
6). Maroney will locate letter from J. Courtney regarding interference between RC transmitters and pacemakers/implanted automated defibrillators. The Frequency Committee should address this issue.