January 26 2019 Minutes

Official

Executive Council Meeting

January 26, 2019
Muncie, Indiana

Meeting via GoToMeeting began at 10.00 a.m.

1. Opening Business

In attendance: President Rich Hanson, Scottsdale AZ, Fishers IN; EVP Randy Cameron, MO; District VI Gary Himes, Kansas City MO; and Executive Director Chad Budreau.

Via teleconference:

• CFO Keith Sessions, Burlington KY
• District I Andy Argenio, Smithfield RI
• District II, Eric Williams, Schnectady NY
• District III Mark Radcliff, St. Marys WV
• District IV Jay Marsh, High Point NC
• District V Bob Brogdon, Powder Springs GA
• District VII Tim Jesky, Monroe MI
• District VIII Lawrence, Harville, TX
• District IX Jim Tiller, Custer SD
• District X Lawrence Tougas, Fairfield CA
• District XI Bryan Wood, Meridian ID
• Greg Principato, NAA
• Felix Gora, AMA legal counsel

Others in attendance: Tyler Dobbs, AMA Government Affairs; Liz Helms, recording secretary; Julia Bladen, AMA Education.

Additions to the agenda: Marketing Committee report; Safety Committee report.

Additions to Final Flight list:

• David Speed, Florida
• Jim Fulton, West Virginia
• John Barker, Georgia

A moment of silence was observed.

2. Consent agenda

To approve:

• Strategic Long-Range Plan. It is a living document and will be updated.
• The AMA Lifetime Achievement Award recipient.
• The choice of Chad Budreau as AMA Executive Director (ED).
• The contract with Chad Budreau as AMA ED.
• Minutes for November 4, 2018.

All approved by consensus.

3. President’s Report

(Rich Hanson)

• Attended and worked on meetings to interview and approve Chad Budreau as AMA ED. Rich reported a three-year contract with Chad effective January 1, 2019, through January 1, 2022. Rich thanked Andy Argenio (I) for his work on this project.
• Chad’s objectives are to reverse the membership trend; to balance the budget; to incorporate FAA requirements into the AMA plan; and to hold the FAA accountable for its agreements.

4. Chief Financial Officer’s Report

(Keith Sessions)

• Keith has been involved in cost-reducing meetings. Assets fell in 2018, but there is no outstanding debt. Net income was down and the market is down. Investments were down at the close of the year. He has confidence in AMA’s investment manager but cautioned care. There has been no membership growth and he strongly expressed the need for conservative spending.
• Expenses: Payroll has been close to budget. Contract labor, staff travel, government spending, bank charges, and investment fees have been above budget. Depreciation has been above budget/expectation and needs to be taken into consideration.

AMA Expos: Three were held in 2018. The organization lost money on them. Keith suggests sunsetting Expo East and is considering options on Expo West. Randy Cameron (EVP) and Lawrence Tougas (X) requested a report from Chad of the last five years of Expo financials. Rich Hanson (President) asked about the depreciation fund for replacement and asked if the money is in escrow. Keith reported that it is in the general fund and that there haven’t been many large expenditures in this area.

IT: Bryan Wood (XI) asked about the IT expenditures which were answered by Keith. Rich Hanson stated that the 202 budget process will begin earlier than in the past with the Budget and Finance Committees to be combined.

5. NAA

(Greg Principato)

• Greg Principato attended the fall NAA awards dinner that included a moment to honor Dave Mathewson.
• Greg discussed FAI Sporting Licenses and explained that the FAI is committed to drones. He noted that the NAA program for free youth Sporting Licenses resulted in only six. The program will continue for another year.
• There will be another Air Sport Organization meeting this year. NAA will also be updating the delegations of authority and the letters of agreement.

A lengthy conversation was centered around the membership fees for NAA and FAI. Keith Sessions (CFO) commented that AMA pays $50,000 annually for NAA membership and questioned why other aviation stakeholders pay less. It is based on what FAI charges, which is based on total membership. AMA pays less per member than other organizations. Lawrence Tougas (X) referred to a plan to encourage Special Interest Groups (SIGs) to conduct FAI competitions as do other air sport groups. Mark Radcliff (III) noted that 60,000 non-paying AMA Youth members should not be included in AMA’s FAI totals.

Tim Jesky (VII) reminded council that competition creates innovation. Mark Radcliff (III) stated that in the 196s and ’70 that competition was king, but things have changed. Competition is no longer as relevant as it once was.

Rich noted an upcoming CIAM meeting in April. He suggested that Tim Jesky and Greg continue these discussions prior to the meeting.

6. Government Relations Report

(Tyler Dobbs, AMA Government Relations)

Tyler introduced the report that his team prepared covering all current government interaction. The government shutdown has halted FAA initiatives, including Section 349 in the new bill. AMA currently has good tracking on state and local initiatives. We are working with AUVSI to make “Know Before You Fly” a federal and state-wide educational resource.

Chad noted that AMA is asking clubs to clarify their exact flying site locations so AMA can champion for federal exemptions and protections. Mark Radcliff (III) asked how exemptions would operate with unique sites, such as sailplanes or ceiling limits. Tyler stated that currently line-of-site has been established, but currently there is no set number for altitude. There could be restrictions based on size or type of model.

Tyler stated that Bill Pritchett will be working with the FAA’s required knowledge test. He is expecting more communications in the coming weeks. In addition, AMA is working with providers and the FAA on streamlining airport authorization requirements and remote ID.

Tyler has set up a meeting with the General Accounting Office (GAO) concerning FAA implementation of the FAA Reauthorization.

AMA has expressed concerns with the Uniform Law Commission's belief drone laws should be up to individual states to legislate.

The council then discussed various aspects of Section 349. Andy Argenio (I) asked about Visual Line-of-Sight (VLOS) and First-Person View (FPV). He wants AMA to work to be inclusive of both in reference to recreational model aircraft flying. Bryan Wood (XI) suggested a review of and a rewriting of the current AMA Safety Code. Bryan expressed concerns about aircraft size.

Tyler discussed the TFR/NOTAM situations in Bedminster NJ and Mar-A-Lago in Florida.

Tyler will be meeting with Jay Merkle and other agencies when the government shutdown is over.

7. Executive Director’s Report

(Chad Budreau)

Chad reported that his goal is to trim expenses, diversify revenue, and retool AMA operations. Although cuts are needed, balancing the budget also requires new income sources outside of membership dues. He will continue refining the budget.

Chad provided updates on the AMS and website including that the EC has access to club rosters and soon an EC dashboard. Tremendous updates have been made with sanctioning, join/renew, and clubs on the site.

Chad discussed the 2018 AMA annual report, shared his new staff flow chart, and discussed the new responsibilities of some of the staff members.

Bryan Wood (XI) suggested that AMA consider having members print their own membership cards at home to save money. It was noted that Andy Argenio (I) had previously conducted an extensive study on this topic. Chad will distribute Andy’s findings to the group.

Chad noted that paying membership numbers are down from our record high in 2015. Some AMA members who have dropped their membership simply lost interest in the hobby or drones. Other longtime AMA members have dropped their memberships because of a perceived lack of value.

Chad shared that AMA should reevaluate all current programs to improve budgets and member services. Their relevance should be evaluated on:

1. Does the program directly nurture and serve our members?
2. Does the program have a return on investment with the brand/budget?
3. Does the program positively influence regulations?

Rich brought up AMA’s charitable premise (501 c3) and suggested that the EC revisit Chad’s stated standards.

A lengthy discussion followed on various AMA programs that meet and do not meet the criteria above.

Motion I:

Motion by Mark Radcliff, seconded by Gary Himes, to sunset Expo East in its current format and to allow a committee under Eric Williams to investigate retooling an East Coast event with a new, viable format.

Motion passed: 12 yes, 1 absent.

Executive session.

8. Committee Reports:

Education report

(Jim Tiller (IX))

Thanks to Gordon Schimmel for his 25 years of work on this committee. Gordon spent 25 years as a superintendent of schools in Connecticut.

• Jim reminded EC members of upcoming TAG program deadlines.
• There are currently 64 MASC and 32 UMASC groups.
• Discussed AMA/AFJROTC partnerships that are similar to what AMA currently has with the Civil Air Patrol. AMA will be able to track young members’ activities.
• The committee is working with CLS (AMA’s PR agency) on Generations of Flight for Education activities and to repurpose Discover Flight program.
• The 2019 Young Aviators Fly-In will be June 21-23. AMA and AOPA are the sponsors. This is still in the planning stages. Rich Hanson asked if it is open to all kids. Jim stated that it was open to all and was a fun event. Some participants have been invited. The event will be a full-scale fly-in (at Triple Tree). The committee wants to take the AMA Education Trailer down. There will be night flying. Randy Cameron (EVP) attended last year.
• There are still a few openings available at Camp AMA. The dates are June 9-15, 2019. Jim reminded that several AMA districts offer scholarships.
• More than 4,000 AMA Alphas have been sold so far. The Beta version is nearly complete. Rob Romash will provide prototypes at AMA Expo East.
• The Education Committee is strengthening its partnership with the EAA with the youth build kit, the Kadet. Sig Mfg. is finalizing the model and it will debut at AMA Expo East.
• The Youth Content resource content landing page on the AMA website will include amayouth.org, amateen.org, and amafamily.org depending on URL purchase.
• UAS4STEM: Arconic funding will be applied to this endeavor.
• Education department will partner with MultiGP for a racing-oriented endeavor including grade-level endeavors.
• Jim wants to video a build at AMA East.
• Another Postal Contest is planned for 2019, date to be determined.

9. EVP Report

(Randy Cameron EVP)

• Attended a meeting concerning FAA changes.
• Committee updates:
• Jim Rice is retiring as chairman of the Safety Committee.
• Gordon Schimmel is retiring as chairman of the Education Committee. Jim Tiller (IX) has been appointed as chairman.
• Gary Himes (VI) is appointed as chairman of the Nominating Committee.
• Government 202 Committee will continue with support from Jay Marsh, Rich Hanson, Randy Cameron, and Mark Radcliff.
• Jay Marsh (VI) was appointed as IT Steering Committee chairman.
• Nondues revenue will be a subcommittee of the Marketing Committee (chairman Eric Williams (II).

Bryan Wood (XI) suggested Rick Crow, District XI AVP from Montana, as a member of the IT Committee.

• Eric Williams (II) was appointed as chairman of ad hoc committee exploring the future of AMA Expo East.
• A SIG (Special Interest Group) Committee was planned. It was noted that several SIGs have not renewed in the past few years including IRCHA, LSF, SWRA, and WMWA.

Vice President replacements were named for each district:

• I: Daren Hudson, Greenland NH; Steve Brehm, Jamestown RI
• II: Chuck Davis, Sayville NY; Michael Wong, Mahwah NJ
• III: Randy Adams, Fairfield OH; Jeff Black, New Oxford PA
• IV: Rusty Kennedy, VA; Nick Burhans, VA
• V: Bill Barbee, GA; Scott Anderson, TN
• VI: Donald Way, Hobart IN; Leo Rodriguez, South Bend IN
• VII: Marc Shelstrom, Lancaster WI; Randy Gibson, Lansing MI
• VIII: Tony Breyen, Wichita Falls, TX; Gary Strickland, Hooks TX
• IX: Brandon Koch ND; Josh Nelson, Casper WY
• X: Jim Mohan, Phoenix AX; Gil Terzo, Las Vegas NV
• XI: Phil Tallman, Medical Lake WA; Rick Crow, Garrison MT

10. Marketing Committee

(Eric Williams III)

• Mark discussed refurbishing the AMA Education trailer. The trailer is a high-visibility tool and discussed its use. Committee is looking at where it would be most valuable and suggested that AMA needs a policy in place for clubs to borrow or rent it.
• The committee is researching sweepstakes donors.
• Google ads are currently showing good returns.
• Chad Budreau noted that AMA has made cuts to the Marketing budget that was lacking in measurable returns. Rich Hanson wants copied in on the next Marketing Committee meeting.

11. Safety Report

(Mark Radcliff III)

• The Safety Committee is interested in addressing a proposal to implement an LMA-3 (Large Model Aircraft) program for aircraft weighing between 125 and 330 pounds. Aircraft this size are currently only being flown in Europe. The FAA will require research and data for approval. When Section 349 is passed, it might be too difficult to obtain approval. It won’t be easy to pass requirements. Multiple inspectors with much experience will be required. Mark asked if the Safety Committee should proceed with this proposal.

Bryan Wood (XI) believed AMA doesn’t have to duplicate the research, merely piggyback on the British research. Gary Himes (VI) asked how many people this proposal will affect and whether AMA could afford or should address this proposal for a small number of people. Chad questioned whether the FAA would accept European testing and data for an LMA-3 program. Mark Radcliff noted that AMA already has an LMA program and asked if AMA wrote an LMA-3 program if it could be turned over to the FAA to administer. Rich Hanson expressed grave concerns saying the proposal will raise red flags. The FAA will want to see the data used to justify the proposal and compared it to the previous FAA discussions. He feels it is a big risk for a small number of people. Bryan Wood (XI) wants to legitimize it for those who want to do it. He feels the standards are already in place and that the British standards are high.

Motion II:

Motion by Bryan Wood, seconded by Bob Brogdon, to task the Safety Committee to propose a viable and reasonable LMA-3 program within six months that allows for aircraft between 125 and 330 pounds, similar to that in the UK, including having the Insurance Committee investigate insurance costs.

Motion passed: 11 yes, 1 no, 1 absent.

Awards: Tim Jesky (VII) proposed a District Service Award. Award approved.

Meeting adjourned at 5:40 p.m.

Release Date

Tue, 03/26/2019 - 19:03