EC Minutes 07-26-2020
Executive Council Meeting
July 25, 2020
Muncie, Indiana/teleconference
The meeting began at 9:30 a.m. following the Nominating Committee meeting
1. Opening Business
In attendance:
- President Rich Hanson, Fishers IN
- EVP Randy Cameron, Springfield MO
- CFO Keith Sessions, Burlington KY
- 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 (via teleconference)
- 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, Lawrence Tougas, CA (via teleconference)
- District XI, Phil Tallman, Medical Lake WA
- Greg Principato, NAA (via teleconference)
- Felix Gora, AMA legal counsel.
Others in attendance:
- Tyler Dobbs, AMA Government Affairs
- Ilona Maine, AMA Clubs
- Vicki Barkdull, AMA Comptroller
- Paul Bretsen, Harry A. Koch Co.
- James Butler
- Dave Chisholm
- Bob Reynolds
- Randy Adams.
Additions to the agenda:
Any EC member may request a Consent Item to be pulled and added to the regular Agenda.
2. Consent Agenda
- Approval of April 202 minutes
- June 2, 202: Moved by J. Tiller (IX) and seconded by A. Griffith (V) to award the 202 Youth Leadership award to Estella Woods (District VIII) and Jonathan Abing (District X). Motion passed unanimously.
- June 10, 202: Moved by R. Cameron (EVP) and seconded by A. Griffith (V) Due to the extraordinary circumstances and uncertainties surrounding the COVID-19 pandemic, the 202 Nats are hereby canceled as a national 5-A event. The Motion failed with 5 affirmative votes, and 8 negative votes.
- June 16, 202: Moved by J. Marsh (IV) and seconded by E. Williams (II) any individual Nats event where the supporting Special Interest Group (SIG) has withdrawn from conducting the event due to concerns related to COVID-19 is hereby canceled as part of the 202 AMA National Aeromodeling Championships. To be in effect, the SIG must must provide its intent to not participate in the Nats in writingno later than Wednesday, June 24, 202. Alternative events may be planned in place of the canceled Nats event(s); however such events will not receive Nats recognition nor Nats-level logistical support from the AMA. Motion passed unanimously.
- July 11, 202 Moved by E. Williams (II) and seconded by J. Marsh (IV) AMA to sunset all previous taglines and to officially adopt the tagline “Your Passion. Your Hobby” One Community” as recommended by the Marketing Committee and staff. The new tagline will be used where appropriate, such as AMA communications, AMA Store merchandise, AMA attire, AMA literature, AMA signage, and other branded materials. Motion passed; 12 yes, one nonresponse. This motion will have the effect of establishing the new tagline as AMA’s primary focus in its marketing efforts and membership promotions and will sunset all previous taglines such as “Get the Bug!”
Moved by Mark Radcliff (III) and seconded by Randy Cameron (EVP) to approve the minutes and consent agenda. Motion passed by acclamation. Additions to Final Flight list: none
A moment of silence was observed.
3. President’s Report (Rich Hanson)
Rich Hanson presented a job description for AMA Chaplain. This volunteer position will involve little travel and is primarily for duties at the International Aeromodeling Center (IAC). Allen Goff, a Muncie IN resident, has been appointed to fill the position.
Rich reported little travel but has been involved in remote conferences concerning government legislation, the FAA, and the Drone Advisory Committee. These meetings are going well and the results have been favorable.
Indiana has paused its reopening plans. The IRCHA Jamboree is questionable because the expected attendance might exceed current guidelines.
4. Executive Vice President’s Report (Randy Cameron)
Randy Cameron reported attending a number of virtual meetings. There were 82 pilots who attended the inaugural AMA Fun Fly at the IAC during the July 24-26 weekend event. He heard no negative comments and reported a full flightline.
5. Chief Financial Officer’s Report (Keith Sessions)
Keith Sessions presented the 2019 audit report. The full financial statement is available on Dropbox. Keith expects a slight loss for 202. He expects the PPP (Paycheck Protection Program) loan will be forgiven and commended Comptroller Vicki Barkdull for her work in obtaining the PPP loan. Advertising revenue is still down, as is income from sanctioned events and equipment rental. With AMA Headquarters operating virtually and the physical location closed for more than two months, building costs and utilities were down.
Keith introduced Bob Reynolds (Brady Ware CPA). Bob noted that revenue declined in 2019, but expenses were significantly down. He explained that the adoption of new accounting standards affected revenue recognition in the areas of memberships, charter fees, advertising, subscriptions, souvenir sales, and merchandise. He noted that if a company or organization relied on an outside auditor to prepare an audit, disclosure was required.
Motion I: Moved by Randy Cameron (EVP) and seconded by Gary Himes (VI) to accept and approve the 2019 Audit Report. Motion passed unanimously.
6. Executive Director’s Report (Chad Budreau)
Chad Budreau introduced Tyler Dobbs (Government Affairs director) to present the Government Affairs report. Tyler noted that Section 349 restricts UAS educational use.. AMA worked with Congress to introduce legislation to expand protections and promote educational UAS. The bill passed the Senate and is expected to pass the House. Tyler later added there is still a concerning issue for foreign-produced UAS.
The SRM (Safety Risk Management) mitigation is going well. AMA is asking for a process that will include clubs in Class G airspace. The situation is changing almost daily.
Rich Hanson noted that the Department of Transportation and other security organizations are pressuring the FAA on Remote ID. He feels that a final ruling will occur by December 202. Eric Williams asked about the final ruling rollout and the timing for changes. The current proposed rule gives manufacturers 2 years to be in compliance and users have an additional year to be in compliance. It is unknown if this timeline will remain or be extended in the final rule
Chad noted that membership numbers are generally flat with some membership categories seeing some growth.
The National Free Flight Society will present an indoor building proposal by the October EC meeting. Donations are covering the costs of discovery and feasibility study. The proposed building costs will include an endowment for building maintenance, programs, and sustainability. Rich reiterated that to date, the EC has only approved the discovery and feasibility study.
Chad reported that the Education team is getting a lot of coverage in local markets. Eric Williams (III) asked if there has been an uptick in membership in these markets. Andy Argenio asked if there has been interest in Senior members in these same markets. He feels that AMA should capitalize on Senior member involvement. Eric stated that the Marketing committee is looking at this demographic and Chad noted that while member retention is important, that new member acquisition is also important.
Chad noted that the Strategic Long-Range Plan for the National Model Aviation Museum is on track. It is leaning heavily on the education aspect and digital access.
He noted that the AMA Headquarters has largely reopened, but staff still have opportunities to work remotely. He noted that the current Indiana guidelines restrict onsite gatherings, and gatherings beyond 250 attendees need approval from the local health department.
7. NAA Report (Greg Principato)
Greg Principato reported that NAA is continuing to work remotely. Virginia has issued workplace rules, many of which AMA is already observing. NAA obtained a PPP loan and its audit went smoothly. There have been no in-person meetings or events, although there has been a series of webinars. The NAA is continuing to recognize and nominate people for awards. It is continuing to work on sustainability and STE[A]M initiatives. With the upcoming budget, NAA needs to let the FAI know of its status by late September so if AMA has any issues with continuing to participate they need to be discussed with NAA before that time. An FAI virtual general conference is scheduled for December. AMA and NAA are finalizing a Letter of Agreement (LOA) by the end of the year. The LOA draft clears up language and solidifies the relationship between the organizations.
The pandemic has forced cancellation of nearly all contests. Competitors from the US are banned from entering EU countries. The World Games were postponed until 2022 because the Olympics were postponed.
There is a proposal to host the 2023 F3C/N Helicopter Championship in Muncie, Indiana. IRCHA is the planned host. MOTION II: Moved by Tim Jesky (VII) and seconded by Mark Radcliff (III) to host the 2023 F3C/N World Championship at the International Aeromodeling Center in Muncie IN.
IRCHA hasn’t renewed its SIG status since 2012. There was discussion concerning this and the board is in favor of IRCHA getting in good standing before approval.
MOTION III: Moved by Randy Cameron (EVP) and seconded by Eric Williams (II) to table the previous motion until IRCHA SIG status is clarified and resolved. Motion passed. 12 yes; one abstention.
Randy Cameron to contact IRCHA concerning the matter.
Antonis Papadopoulos is to receive a digital subscription to Model Aviation.
Lunch and Executive Session
8. Committee Reports
Rich Hanson commended the various committees for ongoing virtual meetings.
Publications Committee (Lawrence Harville)
Lawrence Harville presented the EC with proposed cost-cutting measures to offset the drop in ad revenue and rising print costs. The focus is to cut each issue by about 12 pages, which began with the May 202 issue. He shared projected annual cost savings and additionally proposed a digital-only option for new members.
Keith Sessions (CFO) presented cost figures and advertising income figures. He suggested that information in Model Aviation could be obtained elsewhere and feels that going all digital is inevitable. Andy Argenio (I) suggested surveying all AMA members as to their thoughts/concerns. Eric Williams (II) feels that “the day will come” when we will go all-digital, but reminded the board that members cite the magazine as the number-two benefit that AMA offers. He asked that the committee explore ways to bridge the gap between print and all-digital and that it should be gradual. He suggested coupling all-digital with another benefit. Lawrence H. reiterated that the changeover be gradual and specifically targeted to new members.
Lawrence Tougas (X) asked about IT costs relating to providing and upgrading the current digital offering. He asked for hard projections and suggested that AMA is perhaps underestimating the value of Model Aviation. Mark Radcliff (III) feels that going all-digital will result in even greater loss of advertising revenue and also asked for cost projections. Keith feels that a digital replacement will be more timely. Eric suggested that more research is needed regarding generational expectations. He noted that MCI, the current advertising firm, has failed to provide promised increase in advertising and asked if all avenues had been explored. Andy A. stated that more timely information is valuable.
Rich Hanson agreed with Lawrence T. and this issue is to focus on providing a better platform/benefit. He noted that the annual budget includes money from dues revenue (essentially a subscription fee) to subsidize the magazine. Keith reminded the board that advertising revenue has dried up. Eric suggested a package or incentive for members to opt for digital. (Currently, roughly 10,000 have digital only and another 8,000 pay an additional fee for both.) He noted that offering continual “discounts” are ineffective and we need to make the transition attractive, and not be perceived as “inevitable.”