EC Minutes 01-25-2020
Executive Council Meeting
January 25, 2020
Muncie, Indiana/teleconference
The meeting began at 8:10 a.m.
1. Opening Business
President Rich Hanson, Fishers IN; EVP Randy Cameron, Springfield MO; CFO Keith Sessions, Burlington KY (via teleconference); Executive Director Chad Budreau, Parker City IN; District I, Andy Argenio, Smithfield RI (via teleconference); District II Eric Williams, Schenectady NY (via teleconference); District III Mark Radcliff, St. Marys WV (via teleconference); District IV Jay Marsh, High Point NC (via teleconference); District V Andy Griffith, Jacksonville FL; District VI, Gary Himes, Kansas City MO; District VII Tim Jesky, Monroe MI (via teleconference); District VIII Lawrence Harville, Hurst TX (via teleconference); District IX Jim Tiller, Custer SD (via teleconference); District X, Gil Terzo, Las Vegas NV (via teleconference); District XI, Phil Tallman, Medical Lake WA; Greg Principato, NAA (via teleconference); Felix Gora, AMA legal counsel (via teleconference).
Others in attendance: Tyler Dobbs, AMA Government Relations; Angie Martin, AMA Membership; Erin Dobbs, AMA Programs; Rob Kurek, AMA Communications (via teleconference); Liz Helms, recording secretary.
Additions to the agenda: none
Additions to Final Flight list:
Sid Teneby, Jim Jackman, Andy Kane, Joe Zengale
A moment of silence was observed.
2. Consent agenda:
Approval of November 2019 minutes.
Motion to approve consent agenda by Randy Cameron, seconded by Phil Tallman.
Approved by consensus.
3. President’s Report (Rich Hanson)
Rich has been trying to reduce expenses. Attended a DAC meeting. He has been in opposition of the LAANC grid map as it currently stands. It is very conservative. Task group is reevaluating altitudes as they exist. Currently the grid squares are overly conservative and represent approximately 1 square mile. The suggestion was made that the grid squares be made smaller. Another approach is called “sheltered flying,” essentially flying below the surrounding obstacles. Chad also participated in the task group and argued that Class E airspace definition was too conservative. In addition, controlled airspace perpendicular to the runway, where there were no flight paths were also unnecessarily conservative and should receive higher altitudes. Recommendations are going in a report.
Rich has sat on ASTM subcommittees, including Remote ID. When FAA promulgates Remote ID, the standards will formulate rules that will comply with it. If you want to fly away from an established flying site, must follow LAANC rules. FAA must apply Notice of Applicability to standards determined.
4. NAA Report (Greg Principato)
Greg presented his report from Wichita, Kansas. He visited the Cessna plant the day before. In the lobby there is a statue of a kid flying a model airplane; he sent a picture to Rich and Chad. He discussed the NAA Fall Awards banquet, which included the presentation of the FAI Tupelov Medal for Aeromodelling. The Wright Brothers Memorial Dinner honored astronaut Michael Collins, who talked about building model planes as a kid. Greg attended the FAI General conference and USA/NAA officially dropping to a Tier II country was approved. The cost to AMA will be below the anticipated budget.
During the conference, the need for FAI reform was discussed. The consensus was generally that members (including aeromodelers) are interested in FAI providing a stellar records program and running good competitions and are not interested in events such as the Olympics or World Air Games. The budget that was presented by the FAI Executive Board at the conference was defeated. They approved a budget that was 15-20% less than the presented one. Many of the revenue increases were removed.
FAI Secretary General Susanne Schödel is no longer in that position. A group of people was appointed to reevaluate the FAI mission and put it in a stronger position and get back to the organization’s original mission. Greg expects that this will take much longer than anticipated. The World Air Games in Turkey were canceled. Next General Conference is scheduled for October in China. Greg asked for feedback to help with this mission. Greg was asked to be part of the group designated to reevaluate FAI.
Tim Jesky (District VII) spoke of World Championships F3A in Muncie IN. Bouchard will be CD.
Eric Williams (District II) added the news of the passing of former director Walter Boyne. He was an aviation author, a member of the National Aviation Hall of Fame, and an avid aviation educator.
5. Executive Vice President’s Report(Randy Cameron)
He appointed the 2020 Nominations Chairman. Andy Griffith has volunteered for the position. There were no objections and the appointment was passed by consensus.
Committee Updates: The spreadsheet of the 2020 Committee list was placed on Basecamp. Any discussion or concerns will take place on Basecamp. Two ad hoc committees were taken off the list. VPs were asked to review the list. Andy Argenio asked about archiving issues for committees. Discussion ensued about EC Basecamp access. EC Basecamp is only accessible by EC members and Chad. Chad will research to see if all EC members were able to see Basecamp activities and that it was a private site.
VP replacements were announced:
I - Darren Hedson, Steve Brehm
II - Chuck Davis, Michael Wong
III - Jeff Black, Randy Adams
IV - Rusty Kennedy, Nick Burhans
V - Bill Barbee, Scott Anderson
VI - Leo Rodrigues, Donald Way
VII - Marc Shelstrom, Randy Gibson
VIII - Tony Breyen, Gary Strickland
IX - Brandon Koch, Tyler Brown
X - Jim Mohan, Gil Terzo
XI - Rick Crow, Mike Ingram
Asset review: There is a blank form available in Dropbox and Randy asked that the EC members use it and review their current district assets.
He has attended several committee meetings and announced that he officially retired from his employment in November.
6. Chief Financial Officer’s Report (Keith Sessions)
Keith discussed the 2019 financial report. Dues income was down slightly, the company took a loss on the AMA Expo in California. There were differences in realized and unrealized gain and advertising income was down. He noted that several cuts were made at AMA Headquarters had helped with the bottom line. He mentioned that the low property taxes in Indiana were beneficial, and that depreciation still needed to be considered. The 2020 outlook can be better evaluated after the first quarter of the year has been evaluated because the bulk of renewals take place in the fourth and first quarters. Rich asked about cash flow. Keith stated that the cash position was better at the end of 2019 than in 2018. Jay Marsh (District IV) asked about the Merrell Lynch investments. Keith noted that the market is currently strong but anticipates that the current political situation could have an effect on the market. He also feels trade deals with China might have an effect. Financial statements are in Dropbox.
7. Executive Director’s Report (Chad Budreau)
Standing Rules (Angie Martin, Andy Argenio)
- Currently have 66,000 Youth members.
- AMA is planning on bringing in 400,000 youth members through JROTC partnerships to include the Airforce.
- Insurance premiums will increase substantially for youth, costing AMA millions.
Angie stated that all members are covered by insurance. New youth members who will receive insurance may be charged s mall fee to cover the insurance premiums and enrollment costs. Existing youth members will be grandfathered in free until they turn 19. Less than 1% of youth continue their membership as an adult.
A proposed Standing Rules change will include “insurance benefits” for both youth and adults as opposed to spelling out each type of insurance and redefine youth members. Andy Argenio presented as the following revisions to the standing rules to define youth and adults.
Adult Membership: Most adult members qualify for this category. Adult Membership provides all rights and privileges as authorized by the Academy. These include insurance benefits and competitive privileges, AMA publications, and the right to vote in national and district elections.
Youth Membership: Membership for individuals who are less than age 19 as of July 1. This includes insurance benefits, competition privileges, and access to select members-only digital content. For competition purposes, Youth will be categorized as Junior (under 15 by July 1) or Senior (those age 15 by July 1, but not age 19). This membership category does not include voting privileges or printed AMA publications. Publications can be purchased separately.
Motion I:Motion by Randy Cameron (EVP), seconded by Phil Tallman (District XI) to accept the Standing Rule changes as presented for the Youth and Adult membership.
Motion passedunanimously.
While youth members with insurance benefits will have membership dues, AMA will still welcome free youth, but without membership benefits. Discussion ensued on the name of the free nonmember youth category. Recruit and Cadet were considered. Eric Williams (District II) expressed concern that the name Recruit was too militaristic. Copilot was also discussed and Andy Argenio (District I) feels that it has an educational aspect and can be applicable to adults in this category. Jim Tiller (District IX) suggested Apprentice but there was concern about identifying with the airplane named Apprentice. Rich asked would this affect other youth programs with groups such as EAA. Chad Budreau (ED) briefly discussed the proposal with EAA to include still participating in the EAA Young Eagles program. Tyler Dobbs mentioned that we need to implement the program soon to accommodate JRTOC and its flying sites.
Rich Hanson suggested tabling the title issue and discuss it on Basecamp. The tentative start date is July 1, 2020. Greg Principato (NAA) questioned if the increase in youth members would affect reporting to FAI (e.g. increasing membership bumps NAA back up to Tier I). Only voting members are reported.
More discussion ensued on the new youth category.
Motion II: Motion by Mark Radcliff (District III), seconded by Gary Himes (District VI) to:
- Create a nonmember youth category with a name to be developed by the Marketing and Membership Committee with a proposal by the April 2020 EC meeting.
- Set youth membership fee at $15 beginning 1 July 2020.
- Grandfather in existing youth members until the end of their membership term.
Motion passed unanimously.
Motion by Jim Tiller (District IX), seconded by Gary Himes (District VI), amendment to Motion II to give the authority to the committee to name the nonmember category.
Motion failed.3 yes, 8 no, 1 abstained.
Government Affairs (Tyler Dobbs)
Tyler affirmed that the March 2 deadline for comments on Remote ID was unlikely to be extended. Some congressional offices have reached out to AMA offering support for AMA’s stance. The proposed rule seems to be somewhat unpopular, so every comment matters.
There was a manufacturers’ meeting that generated much support of AMA’s stance. As is, the Remote ID proposal will be devastating to manufacturers.
Andy Argenio (District I) stated that many airports and EAA facilities are in support of AMA’s stance and this message needs to be conveyed. Tyler said that AMA has been in constant contact with the EAA and agreed that airports are another good support line. Tyler wants to work with the PR firm and draft a proposal to allow the airports to weigh in.
Eric Williams (District II) asked about other means to focus other organizations’ interest on the FAA concerns. He mentioned that EAA is getting more attention. He asked that EAA and AMA present a more united front in media releases.
There was discussion that many people on social media have been misinformed.
Tyler had a meeting with the FAA and 11 other Knowledge Test contributors. Tyler pushed for a paper version as well as an electronic version of the test. The FAA is being pressured to roll out the test along with the definition of CBO recognition. Andy Argenio (District I) asked about the current standing of Remote ID and technology integration. He has concerns that current radios will be obsolete under the Remote ID proposals. Tyler reiterated that having flying sites exempt, having a phone app take care of flying elsewhere, and registering the transmitters rather than each aircraft are being discussed. He has reached out to Futaba to develop a transmitter that can accomplish this. Law enforcement is unhappy with the proposals. Law enforcement wants an entire database on the registered fliers similar to what law enforcement has available when someone runs a driver’s license.
Safety Risk Management (SRM) panels: Flying sites are receiving the altitudes they are requesting. Some clubs are being asked to include use of a spotter when flying over 400 feet. AMA is working on the next round of SRMs with clubs. The results of these efforts will be used for the remaining SRMs to be conducted nationally and not locally as they currently are being done. (Las Vegas, Cochella, and Rocky Mountain Soaring discussions will be taking place shortly and possibly two other clubs.) The three named clubs are the most challenging in their requirements. Mark suggested a Soaring site in Pennsylvania for consideration as well as a jet-flying club in Ohio.
Tyler touched on the JROTIC field charting project. If these JROTC clubs run parallel to AMA’s experience, roughly 10% will be found to be in controlled airspace.
MultiGP and Marketing (Erin Dobbs/Eric Williams)
Erin Dobbs proposed AMA better leverage the current Hobby Shop program to grow AMA membership with our Special Interest Groups (SIGs). The council expressed support of AMA’s SIGs and interest to better collaborate.
Erin proposed a beta two-year program. Chad asked that before going any further ( e.g. IT involvement and signing agreements), he wants concurrence from the board. Rich asked for a consensus vote from the Council.
I - Y
II - Y
III - N
IV - Y
V - Y
VI - Y
VII - Y
VIII - Y
IX - Y
X - Y
XI - Y
EVP - Y
It was determined that the Marketing Committee would spearhead furthering the program. The focus will be on tactical concerns such as landing pages and allocations of incentives. Rich reiterated that SIGs all need to follow the same rules and be treated the same way.
Membership Numbers (Chad Budreau, ED):
After 12 months of consistent membership with a slight increase, January’s membership numbers are down.
Chad has developed the 2019 Annual Report and wants to make it available as soon as possible. He has added Remote ID concerns to the Annual Report. It is available for EC review on Dropbox.
Chad has spoken to Dave Lindley of the National Free Flight Society. The organization wants to see a Category I Indoor Flying Site in the Muncie area and believes NFFS can amass funding to see the Indoor site project proceed. Keith suggested we offer the land, but NFFS would build and maintain the facility. Much more discussion and more meetings are mandated between PADCOM, Keith Sessions, and NFFS. There was some discussion around supplementing the building maintenance fees by renting the facility to the local community including Ball State University and perhaps Muncie Community Schools.
Chad discussed advertising in Model Aviation and Park Pilot magazines. There is a definite downtrend in advertising. The current sales firm, MCI’s contract is up at the end of 2020. Rob Kurek suggested getting a plan in place because print media and print advertising continues to fall. Even digital advertising is seeing a decrease. Rob suggests monitoring the situation for a few more months, citing the Remote ID situation and other FAA situations. Eric Williams asked if MCI has been able to attract new, nontraditional advertising (other than longtime advertiser Harbor Freight) as MCI had initially promised. Rob is hoping that Model Aviation can provide better incentives to potential advertisers.
8. Committee Reports.
Marketing (Eric Williams, District III
Eric noted that Walt Throne has become a member of the AMA Marketing Committee. He is a modeler, competitor, active flier, former head of NRHSA, and a hobby shop owner. He discussed the auto renewal/service fee issue that was raised at the November 2019 EC meeting. Lawrence Tougas had expressed interest in being a part of the discussion and plans still need to be made to include him.
The Marketing Committee is trying to develop a new slogan to replace the outdated “Get the Bug” slogan. Eric cited the EAA website as an example of an organization using taglines to promote brand awareness. Safety, community are two examples. The committee is rating and ranking suggested slogans. The committee is also testing possibilities with non-modelers for input.
Rich stated that the future of the organization is in new member acquisition. He would like to see more focus on a strategy for new member acquisition. Eric stated that if clubs aren’t doing as they had in the past and growing their clubs, AMA needs to find a new gateway to attracting new members. The committee is enthused about entertaining all possibilities and sharing them.
Lunch
Executive Session
Following Executive Session, Rich noted that the EC is pleased with Chad’s performance and commended him.
Motion IV: Motion by Gary Himes (District VI), seconded by Mark Radcliff (District III), to accept the Executive Director’s 2019 evaluation and bonus recommendations as presented by the ED performance review committee.
Motion passed:11 yes, 2 absent.
9. Old Business
- Approval of Foundation Budget:
There was discussion concerning why the Foundation budget needed to be approved by the EC because the AMA Foundation is a separate entity. Rich explained that because the Foundation is a subsidiary of the AMA, it needed to be approved by the EC. Rich suggested that the process should be refined in the future. Chad noted that Mandee Mikulski’s attendance at various events and spending quality time with donors has proved fruitful. He also noted that the Foundation has done good work but agrees that there is still more to be done. AMA’s budget covers administrative costs of the Foundation.
Motion V:Motion by Jay Marsh (District IV), seconded by Phil Tallman (District XI), to accept the AMA Foundation budget as presented.
Motion passed:11 yes; 2 absent
Rich covered the history of the AMA Foundation since 2014. The primary purpose of the Foundation is to build an endowment. He would like to get the work going in terms to build larger donations and endowments in 2020. Chad has done much research on the origins of the AMA Foundation. He feels the Foundation has done great work and is primed to go to the next level, with EC direction. The EC has the responsibility and authority further guide the Foundation and set the expectations in a bulleted list. The EC would like to see more clarity in the budget, build an endowment, and obtain donations from outside of the aeromodeling community.
Rich asked for input concerning the existing AMA Foundation, its direction, and its current functionality. The point was raised that what is currently being accomplished could still take place under AMA’s 501(c)(3) status. Keith stated that AMA is already a 501(c)(3), asked why it needs a 501c)(3) under it? The cost to create one is nominal.
Chad noted that if there is an endowment and something catastrophic happens to AMA, the endowment would be safe. Rich researched having a foundation in the 1990s, but the EC scrapped the idea at the time. He commended the current board members but noted the lack of direction.
Rich suggested that he (Foundation board member), Chad, and Tim Jesky (District VII, Foundation liaison) meet and determine thoughts, needs, expectations, and direction in order to present it to the Foundation.
10. Awards
Mark Radcliff: Sean Elliott. Sean is EAA’s VP of Advocacy, a longtime modeler, and has provided a great deal of help to the Government Affairs team.
Phil Tallman wants to distinguish Rick Crow for an Award of Recognition.
Motion VI:Motion by Mark Radcliff, seconded by Andy Argenio, to award [name withheld] the Distinguished Service Award.
Passed by acclamation.
11. Adjournment at 2:31.