July 14 2018 Minutes

072018 EC Minutes

Executive Council Meeting

July 14, 2018

Muncie, Indiana

Nominations Committee met before the meeting.

Meeting began at 8:17

1. Opening Business

In attendance:

• President Rich Hanson, Scottsdale AZ, Fishers IN
• EVP Randy Cameron, Springfield MO
• CFO Keith Sessions, Burlington KY
• District I Andy Argenio, Smithfield RI
• District II, Eric Williams, Schenectady NY
• District III Mark Radcliff, St. Marys WV
• District IV Jay Marsh, High Point NC
• District V Bob Brogdon, Powder Springs GA
• District VI Gary Himes, Kansas City MO
• District VII Tim Jesky, Monroe MI
• District VIII Lawrence Harville, Hurst TX
• District IX Jim Tiller, Custer SD
• District X Lawrence Tougas, Fairfield CA
• District XI Bryan Wood, Meridian ID
• WA
• Executive Director Chad Budreau
• Greg Principato, NAA
• Felix Gora, AMA Legal Counsel

Others in attendance:

• Mark Shelstrom, AVP District VII
• Tyler Brown, AVP District IX
• Bob Reynolds, Brady Ware
• Vickie Barkdull, AMA staff
• Shawn Grubbs, AMA staff
• Ilona Maine, AMA staff
• Jeff Swift, AMA staff
• Rob Kurek, AMA staff
• Gary Fitch, AVP District II

Additions to the agenda: Jim Tiller (D-IX) added the Foundation Naming Committee report. Rich Hanson added it to Old Business. FAI/AMA records will be readdressed.

Additions to Final Flight list:

• Jerry Feck
• Monty Smith
• Jesse Shepherd Sr.
• Amok Coinski
• Robert Pixley
• Pat Kennedy
• Wayne Barron
• Don Madison
• Bruce Tharp Sr.

2. Consent agenda

1. Motion to honor Wayne Yeager.
2. Motion to approve a Superior Service Award.
3. Motion to approve D. Mathewson Lifetime Achievement Award.
4. Motion to approve C. Bauer’s Lifetime Achievement Award.
5. Motion to approve April 21, 2018 EC Minutes with corrections.
6. Council took a vote to postpone implementation of the FAI decision that was made at the April meeting.

Motions passed by acclamation.

3. President’s Report (Rich Hanson)

• Rich Hanson’s involvement in the government relations endeavor has backed off a bit. Thanked Chad Budreau, Tyler Dobbs, and Angie Martin for their hard work.
• He attended Australian Nats (MAAA) in New South Wales. Was like stepping back into time. Was impressed by how the community welcomed the modelers. All events took place in close proximity. The Australian FF community purchased a 70-acre ranch for FF events. Community businesses were welcoming. There was a wine and cheese reception by the mayor of the town. The MAAA hosted a “Night Scramble” and a banquet for all attendees.
• Australia hired a modeler to head up their equivalent of the FAA’s UAS integration office and uses a community-based organization system to set rules. Where there is a conflict between drone rules and MAAA, MAAA members are exempted from the drone regulations.
• Also joined Bryan Wood (D-XI) in Anchorage AK for a huge event at Elmendorf AFB in Anchorage. The organizers (primarily Steve Culligan) brought Quique Sominzini to the air show to perform a demonstration. The event included make-and-take pneumatically launched rockets, drones, demonstrations, etc. There was a state-wide meeting of modelers and he also had meetings with various NAA sporting groups and discussed FAI and procedural issues. Discussed like interests and possibilities of active interactions.
• Plans to go to a meeting with the Drone Advisory meeting on the West Coast.

4. Executive Vice President’s Report (Randy Cameron)

• Randy Cameron went to Charlie Bauer’s visitation. There was also recognition of Charlie at the Nats with his Lifetime Achievement Award being given to his son and wife at the Nats.
• He attended the Louisville event where $46,411 was raised for the Norton Children’s Hospital.
• He went to EAA Young Aviator’s Fly-In event at Triple Tree. He noted that it was a great event and he went for an aerobatics ride in a Pitts.
• Attended Buffalo FPV Racing event. It was well attended.
• Attended a jet event. The CD was receiving flak from FAA until told that it was an AMA-sanctioned event. FAA rep attended and felt it was well run.

5. Chief Financial Officer’s Report (Keith Sessions)

• Keith Sessions wants EC to consider 1-, 2-, and 3-year timelines. Start considering this well in advance. If there is economic slowdown, and he expects this to occur in 202, it will be easier to reduce in advance rather than reacting to the situation as it occurs. Expenses must be considered and reduced as they can be. We are currently 9 years into a bull market, and he cautioned not to expect that to continue. Expenses are up. Staff has been cutting where it can and being efficient, so funds can be reallocated where needed. District budgets will possibly be lower next year. He is currently identifying larger budgets that can be reevaluated. He asked at what point do you determine that traditions no longer have the importance they once did (ex.: trade shows, competitions) and suggested considering strategic changes in allocation of available funding.
• He reminded everyone that this is a discretionary hobby. He expects that membership numbers will be a challenge. Modelers are aging out. He mentioned that AMA strives hard to be relevant to the younger crowd.
• Earnings are currently strong. New tax laws have helped the market and AMA’s earnings. The market is still strong, but he expects that this will begin to fall. Investment yield curve is concerning and expressed the need to be conservative with spending
• Impending tariffs will have an impact on our hobby. Items impacted will include LiPo batteries, radios, and servos.
• Staff is committed to a balanced budget. He has concerns with lobbying expenses and stressed the need to maintain a proper balance.
• Jay Marsh (D-IV) questioned how to get a committee budget. Currently there are no committee budgets. He would like to recognize committee members with caps, hats, badges, and some sort of recognition. Keith reminded that if money is allotted for committees, it has to come from somewhere. Rich suggested considering a line item in the budget for contingencies. AMA is in the business of serving members first, but cautioned that AMA needs to make expenditures cost effective.
• Bob Reynolds (Brady Ware) discussed the audit report. He thanked and complimented all participants in the audit process. AMA had a robust year in market earnings, but warned that what goes up, must come down. He reiterated much of what Keith Sessions had presented. He expects deferred revenue (membership income) to begin to level out.
• Bob presented a handout of 10-year operating analysis. It shows that AMA is reliant on investment holdings for solvency and illustrates that expenditures needs to be carefully considered. He stated that the current growth is a result of market performance and investment.
• Bob also noted that membership revenue was up slightly because of the dues increase and previously offered discount. There was an increase in Youth members, and suggested exploring a strategy to entice these members to become members for life.
• Bob noted that AMA’s income and operating expenses do not balance. AMA is reliant on investment holdings that are up because of the market increase, illustrating the market’s volatility.
• Rich asked if it might be strategic to further diversify the revenue (develop other forms of revenue than member dues alone).
• Bob feels there needs to be a balance of between member benefits and operating costs. AMA must raise the revenue in order to balance the operating costs. He encouraged the EC to consider asking if there are additional revenue diversification opportunities. What are people paying (somebody besides AMA) to participate in the hobby in addition to membership dues (ex: a model kit)? Is there a revenue opportunity/entrepreneurial opportunity there?
• Bob mentioned that the 2018 statements/balance sheets will be presented differently. Organizations will also now need to disclose their financial liquidity.
• Rich asked for confirmation that AMA’s portfolio managers were looking at strategies to minimize the potential impact of a serious marked downturn or recession.

Motion to approve the 2017 audit report. Motion passed by acclamation.

6. Executive Director’s Report (Chad Budreau)

• Chad discussed the government affairs work in progress. The team is not sitting on its hands, but the situation is continually changing. It is looking favorable on the Senate side. The House situation is slightly more problematic, but he expects that the Section 336 issue will go to vote this year. He expects the DOD, DOJ, Secret Service, and DHS will be big players on the national security scene.
• Rich spoke about remote ID issue, Drone Alliance, UAV Coalition, and FAA’s stance on the issue. This is a sticking issue for the FAA. FAA wants total control, up to and including repealing the Section 336 carveout. Andy (D-I) mentioned concerns with state and local laws as well.
• Greg Principato (NAA) discussed airport security and how real the threat of weaponizing common items actually is. Groups have weaponized models and drones. Credible intelligence states that this is a common threat. He stressed taking the DHS, etc. concerns seriously. Mark Radcliff (D-III) confirmed this information based on conversations with Arch Stafford who is an independent contractor who does UAS testing for the government.
• Chad described the scenarios where remote ID regulations would apply. Possible solutions for VLOS communications include cell phone apps, and retrofitting existing radios. Rich mentioned that someone intent on causing a disaster will find a way to do so regardless of policies in place. Arguments for registration include ensuring that the person’s name is on file (accountability), and bringing registrant into safety culture.
• Remote ID: if someone has remote ID, chances are they are aboveboard. If unregistered, assume they are a “bad actor.” Lawrence Tougas (D-X): How can we point out that many of these worst-case narratives are improbable? Chad stated that AMA involving itself in a challenging situation (rattling cages) could actually backfire. No legislator wants to back a bill that isn’t a shoe-in. They will back off if a potential bill is controversial. The board will resume the conversation in executive session.
• Chad feels that government team has become more proactive and it has been productive on state and local levels.
• DOE and DOD are creating “no drone” zones. Andy (D-I) asked about existing flying sites that are affected by these zones. Rich stated that exemptions had been made for most of these sites. Asked Andy to let him know of any problems and he would look into it.
• Discussion ensued concerning different ways to approach the remote ID issue, garnering support for our point of view, and strategies to combat misinformation without alienating potential support. Subject was deferred for later discussion.
• AMA Model Aviation Hall of Fame prospective inductees:
  • Robert Dodgson
  • Cliff Telford
  • Tim Dannels
  • Robert Kopski
  • Mark Freeland

Motion I: Motion made by Eric Williams (II), seconded by Mark Radcliff (III), to approve the list of AMA Model Aviation Hall of Fame inductees as presented by the committee.

Motion passed unanimously.

Chad discussed the changes and improvements in the National Model Aviation Museum. As a cost-saving measure, staff members were used to achieve the renovations.

Chad discussed AMS (Association Management System), FMS (Financial Management System), and CMS (Content Management System/website) implementation. The goal is to have the systems launched within a few weeks. Members will see a mobile-friendly website. The improvements will offer a better integrated system for staff and members. Members will need to reset their passwords. Week of July 23 or 30, information will be migrated to new system. Discussion ensued concerning who could have access to membership data, how much data, and for how long. There was also a long discussion concerning the new features, how they would be introduced, and how they would affect members and club officers. Those involved are working hard to make the changeover process seamless for members.

IAC: Drainage issues on the site (Site III area) are being taken care of by Delaware County. Chad hopes that this will alleviate some of the problems on Site 3.

Headquarters staff is looking at ways to cut spending such as magazine page count and staff travel. Membership trends are looking up. New membership incentives are being considered including direct mailings. Chad gave credit to the staff for many of the cost-cutting measures.

7. NAA (Greg Principato)

• Greg mentioned that September 6 will be a speech by the new director of the Air and Space Museum, Ellen Stofan, in Washington, D.C.
• Airbus is a new NAA corporate member.
• FAI is going through a strategic planning process.
• NAA had a meeting of all of the air sport groups in June. Many of AMA’s challenges are shared by these air sport groups.
• NAA delegates some of its responsibilities to various air sport groups. NAA is updating these responsibilities and modernizing some of the agreements between it and some of these groups.
• NAA is automating the sport licenses and youth incentives are showing progress.
• Greg plans to attend Oshkosh AirVenture for two days.
• Money that AMA and other air sports groups pays to NAA pays the NAA fee to the FAI. AMA pays less per membership than the other air sport groups do. What AMA pays is roughly the same as it was 15 years ago
• He discussed indoor skydiving, a new NAA group headed by iFly. Rich felt it was good in that it is a family-oriented competition. A facility in Rich’s area can hardly keep up with the demand to experience indoor skydiving. The sport is very kid friendly. Greg feels it actually has a chance to get into the Olympics. The US Parachute Association wants to withdraw from any involvement. Rich sees a possibility of overlapping interests.
• He also discussed AMA’s education-related STEM programs and how other air sport groups are surprised at AMA’s level of involvement in the field of education.
• Greg revisited the FAI sporting license automation and mentioned that the NAA is currently providing a report to air sport groups with this information.

8. Committee Reports:

Nominating Committee (Mark Radcliff D-III)

The Nominating Committee met before the council meeting. Everything was submitted on time and in proper order. All candidates were approved and will be on the ballot. Photos will be placed next to statements. Tim Jesky served as teller. Bryan Wood was secretary. Mark Radcliff will produce a booklet containing all of the statements.

Motion II: Motion by Randy Cameron (EVP), seconded by Bryan Wood (XI), to approve the report of the Nominating Committee.

Motion passed unanimously.

FAI Committee (Tim Jesky D-VII)

• Tim attended the FAI CIAM meetings in April in Lausanne. He attended meetings for F3U FPV racing and served as the Canadian proxy.
• World Air Games will be in Turkey.
• World Games will be held in 202 in Birmingham, Alabama.
• F3U will now be called F9U and will be called drone racing.
• F2 competition age limit was raised to age 21.
• USA was awarded the F3A World Championships to be held in Muncie IN. There was discussion about publicizing international events at the venue.
• Tim mentioned to apparent drone racing interest within the FAI world.
• Drone event is still provisional.

Education (Jim Tiller D-IX)

• The committee has created a list of AMA educational endeavors and projects. Wants to add to list with endeavors other clubs are doing.
• There are currently 52 MASC and 26 UMASC events going on.
• The previously mentioned Young Aviators Fly-In was held at Triple Tree Aerodrome June 8-10, 2018. The Fly-In was the brainchild of two AMA Youth members. The Education department has some involvement. Jim played an EAA video of the Young Aviators Fly-In.

[short lunch/working lunch]

Jim shared that Camp AMA 2018 included a full-scale aerobatics demo by RJ Gritter. Jim mentioned Evan Gaston who was involved in an accident and unable to attend Camp AMA. The attendees built an airplane for Evan, all of the attendees signed it, and they kept in touch with him throughout the week.

Updated the AMA Alpha Youth Postal Contest results from last winter and mentioned that another contest will be held at Expo West. The 2018 winner modified his aircraft. Most agreed that encouraging contestants to perform modifications on their aircraft to improve them—using only the parts available in the box—would encourage innovation.

To date, 2,449 individual Alphas and 20 cases of 50 each have been sold.

The AMA Beta will be more competitive. The AMA Gamma will be RC capable and more adaptable. The electric CL Aerobatic trainer is essentially a mini-Ringmaster. Chuck Bower, former District XI VP, is the driving force behind the CL trainer.

Jim discussed the new CNC cutter. Jim wants to develop a curriculum for a group to borrow the system and plans, build several airfoils, and then test them.

Horizon Hobby is refurbishing trade-in radios and they will be given to AMA. Use will include giving them to TAG grant recipients, MASC and UMASC clubs, as well as the Civil Air Patrol.

AMA Flite Test (working title) will be in Muncie IN on a weekend in the summer of 202.

Jim discussed holding regional training workshops, offering a grant program for clubs holding education events, and creating a position within clubs called a Club Educator Specialist and discussed a training program for such potential people. It would be similar to a TAG grant/program.

He discussed ongoing plans/ideas for an educational facility at the AMA site, necessary resources, and uses for the facility.

Discussed the Youth to Adult membership retention strategy as a joint endeavor with Marketing Committee, including a youth-content-based YouTube show/video collection. Ideas that are being considered are inexpensive, but attractive to kids. More discussion ensued on how to identify active youth members and how to best single out these members and further encourage them.

There was also discussion of the critical 18- to 25-year old age group with an intermediate membership cost to help retain current Youth members.

There was a very long discussion about ways to attract the interests of youth, whether it was competition, fun, family involvement, content, and especially information channels such as YouTube, Facebook, and Snapchat. Many ideas and examples were shared. The success of Flite Test/Flite Fest was considered and weighed and much discussion ensued.

Executive Session

Marketing and Membership (Eric Williams D-II)

• The committee met a couple of days before the EC meeting. The current priority is to maintain ongoing activities and current services.
• Membership acquisition discussion included increasing direct mailing to memberships that are about to lapse, targeted emails prior to lapsing membership.
• Eric briefly discussed the new website and his positive impressions of it.
• Committee discussion included uniform branding throughout the entire organization. There are currently several outlets for organizational material and currently they don’t all carry the same message.
• Eric discussed promotional programs that encourage members or hobby shops to sell new memberships.
• Promotional programs and partnerships: We currently have 72 active such programs that have accumulated throughout the years. Discussion ensued concerning whittling down that number to six or so, streamlining the system, and market and brand the programs.
• There was discussion concerning affinity programs as well. The committee will be looking at them to discern possibilities for additional non-dues revenue.
• Marketing and Education needs to work closely together. There was a discussion concerning the simulator trailer. It needs to be better utilized to collect data and develop possible membership leads and as a sales point. Eric wants to explore other venues/locations for the trailer to visit, but that will require preplanning. The simulators are quite popular. Upgrades are not in the current budget, but we can move forward with collecting email/contact information as visitors use the simulators. There was some discussion of having a skilled, dedicated employee for the trailer during busy periods, taking care of logistics, driving, maintenance, training, etc.
• 2018 Expo West (fall): There are currently 77 vendors and 190 booths, swap shop tables are already sold out. Sponsorship income has increased. Eric shared a planned layout of the event and of the Pomona Fairplex building. Media Day will be on Thursday and the MultiGP event will start the same day. Erin Dobbs has assumed much of the responsibility for the show and is looking for unique vendors and looking to expand club and community involvement. There will be trams available for transportation. They are currently looking to advertise in schools and other free sources. The Expo West costs are well within the established budget. There was a discussion about features at the show, amenities, hotel/camping areas, etc. They discussed several differences between the new venue and the previous one.
• There is a contract for the venue at Expo East next year (2019).

Publications Committee (Lawrence Harville D-VIII)

• Rob Kurek spoke of the Publications budget and non-dues revenue. Advertising sales make up a significant portion of non-dues revenue. Advertising rep’s contract expires at the end of 2018 and Rob expects to sign a new ad agency with contacts, networks, and resources in areas other than only aeromodeling. Chad mentioned that the agency under consideration has the ability to expand with the job or increase its responsibilities to include other AMA entities such as the AMA Foundation or the Expos. The new company’s expertise is in association advertising.
• The printing contract is also up this year so he is exploring other printing companies as well as negotiating a new contract with the current company. Cost-saving measures include decreasing the page count and reconsidering the paper grade used in the print edition. He also discussed the escalating mailing costs and paper costs.
• Rob updated the EC on studio expansion project. It should be 100% complete by October.
• The multirotor supplement is underway.
• Model Aviation magazine redesign samples were passed around and opinions were shared.
• Rob discussed the directive to explore getting more drone content into Park Pilot. He explained that there is currently a substantial amount of drone/multirotor content in Park Pilot. The allowable weight for a Park Pilot aircraft is an issue. The number of Park Pilot issues printed quarterly has been decreased to cut costs.

9. New Business

FAI/AMA Records (Bob Brogdon D-V)

At the April EC meeting, the records application procedures were changed. There has been some member pushback and a request by some members to rescind the previous decision.

Per Tony Stillman: If the previous motion is rescinded, we’ll have two databases. Greg explained that while AMA can recognize various records, NAA only recognizes those it certifies, and, regardless, that any FAI World Record will have to go through NAA as is currently the case. This concern comes from two factors, that NAA/FAI do not recognize certain categories of records that AMA does (such as age group records), and that AMA recognition is part of the AMA membership, while there is a fee charged by NAA for its certification of national records.

Motion III: Motion by Lawrence Harville (VIII), seconded by Bob Brogdon (V), to rescind the April 21, 2018, motion concerning AMA, NAA, and FAI records, with the exception of the part that requires all record applications to go through AMA.

Motion passed, 11 yes, one abstention.

AMA Naming Rights (Jim Tiller D-IX)

Jim Tiller stated that he is working with the Foundation Board to determine two things: what we can sell the naming rights to and to what level they can receive that designation. He asked for a list of items that we can sell naming rights to on the site and some examples of pricing structures that other organizations follow. He suggested considering items such as concrete benches, bike trails, a gazebo, the pond, a shelter, the streets … Discussion ensued concerning what other organizations do, what kinds of naming rights exist, and the length of time for the naming. Project will be turned over to the Foundation Board pending further information.

The concept of the proposed educational facility and expansion of AMA Headquarters is currently on hold and will be also turned over to the Foundation Board.

Annual Membership Meeting: The meeting scheduled during Joe Nall Week was canceled last spring and needs to be rescheduled. It was suggested that it be rescheduled for AMA Expo West in November for this year only.

Motion IV: Motion made by Tim Jesky (VII), seconded by Gary Himes (VI), that the 2018 annual membership meeting will be moved to AMA Expo West this year because of the cancellation of the meeting at Joe Nall.

Motion passed unanimously.

New Business

The EC discussed the proposed purchase of a CL collection. The proposal is that AMA purchase the inventory in exchange for being named in the owner’s will. We currently do not have concrete details about the collection and need an inventory of the property. Rich will respond to the person that an inventory is still needed before moving forward. Legal counsel will need to be involved if the matter moves forward.

Discussion also ensued concerning from which budget the money would come from AMA VP attendance at AMA Expo West and the annual Membership Meeting. Money was added to the VP budgets in 2016 to cover attendance outside of each VP’s district.

Lawrence Tougas (X) invited all of the VPs to the District X Fly-In in Las Vegas (the hotel is the Santa Fe Station) on the weekend before the AMA Expo West.

Motion V: Motion made by Jay Marsh (IV), seconded by Tim Jesky (VII), to award the Lifetime Achievement Award to (name withheld pending presentation).

Motion passed by acclamation.

Motion VI: Motion made by Lawrence Tougas (X), seconded by Eric Williams (II), to accept the youth scholarship report and recipients.

Motion passed unanimously.

Awards: None

Meeting adjourned at 4:45 p.m.

Release Date

Tue, 08/28/2018 - 14:11