April 25 2020 Virtual Meeting Minutes

EC Minutes 04-25-202

Executive Council Meeting
April 25, 202
Muncie, Indiana/via teleconference

The meeting began at 9 a.m.

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; District I AVP Daren Hudson (in Andy’s brief absence); District II, Eric Williams, Schenectady NY; District III, Mark Radcliff, St. Marys WV; District IV, Jay Marsh, High Point NC; District V, Andy Griffith, Jacksonville FL; 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, CA; District XI, Phil Tallman, Medical Lake WA; Greg Principato, NAA; Felix Gora, AMA legal counsel.
  • Others in attendance: Kyle Jaracz, AMA Education director, Mandee Mikulski, AMA Foundation director of development, Rob Kurek, AMA Communications director; Kelsey Walker, AMA Foundation; Jeff Black, District III AVP; Rick Crow, District XI AVP; Rusty Kennedy, District IV AVP; Paul Bretson; and Liz Helms, recording secretary.
  • Additions to the agenda: Tim Jesky will add a brief FAI committee report.
  • Additions to Final Flight list: None.
  • A moment of silence was observed.

2. Consent agenda:

  1. Approval of January 202 minutes.
  2. Moved by Eric Williams and seconded by Jay Marsh to award the late former District XI VP Mike Mosbrooker the AMA Fellowship Award.
  3. Motion to approve consent agenda by Andrew Griffith, District V, and seconded by Randy Cameron, EVP, to approve the consent agenda. Motion approved unanimously.

3. President’s Report (Rich Hanson)

Rich did not have much to report. Rich had had a number of events to attend, but all were canceled. He attended a DAC meeting before the COVID-19 shutdown, and an ASTM meeting via teleconference. The FAA is concentrating on reviewing the public comments that were submitted. The DAC created a taskforce to look at the safety culture. Dave Mancini is heading up a sub-group to look at FPV integration. He is looking primarily at small businesses flying UAS. Rich reiterated that AMA has maintained a decades-long safety culture.

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

Randy attended the KCRC event the first weekend in February. He attended a Missouri Modelers meeting with Gary Himes in Sedalia, Missouri, where roughly 50 clubs were represented. Most of the attendees seemed appreciative of AMA’s government team’s work.

He also attended the Southeastern Modelers Show in Perry, Georgia. He noted Tony Stillman’s wife’s efforts in selling AMA gear. There was an AMA membership meeting that didn’t work well. He gave kudos to AMA’s electronic media and communications efforts. Randy noted that he has two potential sponsors and roughly 30 potential attendees for the AMA National Fun-Fly. If the Nats is canceled, he will likely cancel the Fun Fly.

Randy thanked Rusty Kennedy, the Flying Site Assistance Grant Committee chairman.

Motion I: Motion made by Tim Jesky (District VII), seconded by Mark Radcliff (District III) to fund the 26 applications to the Flying Site Assistance Grant Committee for funding.

Motion passed unanimously.

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

Keith noted the fluctuating market. The AMA portfolio is down roughly 17%. He expects a lot of market volatility because the COVID-19 pandemic will continue to affect the economy. AMA is a consumer-discretionary activity. He cautioned to expect a deficit going into next year.

Membership and advertising are going down and he doesn’t see it coming back. He suggested looking at making cuts to Model Aviation because of lack of advertising and suggested that going digital was the solution.

Keith gave kudos to Vicki Barkdull for getting the application for the small business loan application for aid in and approved before the government funding was depleted.

Andy Argenio (District I) asked if AMA should be looking at the membership status of clubs, what requirements or restrictions they have, and what their membership status is. He asked if this should be done on a local level or a national level. Keith feels that possibly finding a hobby might be something people want to do. Chad Budreau (AMA ED) noted that AMA had done an informal survey to determine the status of clubs. He will take it as an action item to revisit the survey. Andy stated that it could be a good marketing tool to consider: flying, being outside, and observing social distancing. Eric noted that AMA staff has done a good job of working with social media to get the word out, attract potential members, and sharing what other modelers are doing during the COVID-19 shutdown.

Lawrence Tougas (District X) asked what financial changes if any need to be made in 202 as a result of these changes. Keith stated that anything small we could do to save money counts. He noted that a great expense is payroll. The second expense is insurance. There will be a large increase in paper costs. He strongly cautioned that any projects be at minimum revenue neutral. He reiterated that the magazine is the greatest expense and it is losing money. He doesn’t see print media advertising coming back.

Daren Hudson (District I AVP) noted: I agree with the print costs reductions in the light of decreased advertising but noted that continued education regarding digital media is crucial. Our current efforts have stepped that up tremendously and that needs to continue. There are still many members averse to electronic media.

Keith stated that electronic media is an issue that needs to be discussed. We need to determine when, not if, the magazine will go away. He stated that Rob Kurek will discuss it later in the meeting. Rick Crow asked what percentage of members are digital subscribers. Chad stated 10% are digital only and 20% receive both print and digital.

Tim Jesky (District VII) asked if we are eligible for future rounds of federal funding. Keith stated that it depends on how the situation progresses and feels that currently any additional funding will be intended for companies that didn’t receive it in the first round.

Keith also noted that AMA has increased farming revenue from the IAC making ownership of the property revenue-neutral. He noted that tax benefits of the property help the bottom line.

Rich mentioned the PPP/CARES Act and the Idle program. He notes the quick action on the part of AMA Headquarters staff to acquire the loan and that most if not all will be forgiven.

6. Executive Director’s Report (Chad Budreau)

Chad thanked everyone who responded to call for action on the NPRM. Noted how well the staff has responded to the new working from home situation.

He noted that membership is down slightly. He discussed that acquisition is down and AMA is focused more on membership retention. Lawrence Tougas (District X) asked what actions were being taken

Goals include:

  • Develop programming to grow clubs and increase membership.
  • Use media to engage members on the work that AMA is doing in government issues.
  • Develop youth programming to assist education to teach model aviation.
  • Keep the EC updated on goals, concerns, programs, and needs.
  • Discussed the Youth 2. programs. He feels that the current youth programming is costing money and we are currently beta-testing a tiered youth program.

Chad noted that there is an SLRP for the museum and AMA received a grant to help better define the museum’s focus.

7. NAA Report (Greg Principato)

NAA is under a stay-at-home order until June 10 and staff is working remotely. NAA received PPP funding. NAA has put a “donate now” button on electronic newsletters that has produced results. It has been a worthy effort. The Collier Trophy meeting that was scheduled for April 2 was canceled. He plans to meet with the Executive Committee in a teleconference on May 7 to discuss the Collier Trophy situation. There is an FAI 202 committee organized to determine the direction of FAI. Markus Haggeny is the new Secretary General. Lack of international travel is hindering its efforts. The situation is forcing FAI to focus on what is truly important. This year’s general conference was scheduled for the fall in Wuhan but it is unclear if/when it will be rescheduled.

8. Government Relations (Tyler Dobbs)

There have been a lot of developments. Remote ID has been moving forward. He has met virtually with congressional offices. He plans to continue with remote meetings. He has been working with EAA, AOPA, and other organizations. SRM panels are moving ahead with virtual meetings. Three more clubs are scheduled for the next panels. 91-57C has been written and is going through legal scrutiny. It includes a process to determine CBOs. Testing is moving forward. AMA has a process in place.

Night operations are now going to be included in letters of agreements from this point forward. The FAA is working on a Standards and Limitations document that will set the guidelines and limitations for said aircraft. Tyler recognized Rick Crow (District XI AVP) and his contributions to the Large Model Aircraft issue. Tyler is working with SRM panels on a blanket waiver for altitude limitations.

Rich noted the success of two altitude requests in Class B airspace. He is anxious to see the Palm Springs club receive a waiver. The club holds many IMAC and jet events. The nearby airport has not been cooperative.

FAA is creating a streamlined process to identify fixed flying sites. AMA wants to be able to chart and provide that information for the clubs. Eric Williams (District II) asked about 91-57C and if it was going to be an all-encompassing document that will determine how members can operate. Tyler feels it will. Eric also questioned the proposed test and asked if it will be modified regarding new information. Tyler noted that the test is more focused on a casual user who doesn’t have access to the safety programming that AMA provides.

Chad reiterated that some of the clubs wanted nighttime operations added to their LOAs. The FAA will be reaching out to towers and informing them that nighttime operations can now be added to LOAs. Chad also feels confident that altitude restrictions will continue to be lifted. Tyler noted how cooperative the new FAA team is that he is working with.

9. Foundation (Dan Bott)

TAG, FSIG, Scholarships TAG grant list and Scholarships have both been through their respective committees and simply need approval.

  1. Motion II: Motion by Mark Radcliff (District III), seconded by Randy Cameron (AVP) to approve TAG Grant as approved by the committee. Motion passed unanimously.
  2. Motion III: Motion by Phil Tallman (District XI), seconded by Lawrence Harville (District VIII) to approve the Scholarship report as approved by the committee. Motion passed unanimously.
  3. The AMA Foundation will be mapping current and future projects and sharing with the EC. This will provide the staff goals and guidance for projects. The Foundation Board will provide more information to the EC.
  4. The AMA Foundation will provide a long-term strategic plan including resources needed. Dan spoke of the need for the foundation to be concise in requests for funding from donors. He discussed the endowment fund and the passion that potential donors have for the particular fund.
  5. Dan discussed the naming rights campaign (Where Will You Land?). There have been videos and letters and items to be mailed out have been gathered. The foundation has identified several opportunities.
  6. The foundation has secured an ARCONIC grant for AMA Educational endeavors. Program goals will be developed with the AMA to accomplish this.
  7. Endowment growth will be an ongoing campaign. Planned giving will also be ongoing to targeted potential donors. He discussed the Museum Patron program and a Ball Foundation grant to support the museum’s long-range plans.
  8. The AMA Foundation will also be funding new giving programs and donor opportunities. The foundation will be developing and providing a grant program to provide funding for staff travel and programs that are designed to increase funding to the foundation.
  9. Eric Williams (District II) asked for clarification on a corporation’s defined corporate giving programs and guidelines. Eric also asked about individual donors and how model aviation would compare with donations to other philanthropic organizations. He asked about other recreational groups that use the platform/plan that Dan is proposing. Dan compared it to the NRA’s fundraising efforts.
  10. Dan emphasized forming personal relationships with potential donors. Our potential donors are the ones we develop relationships with and that takes time and effort.
  11. Eric and Mark Radcliff (District III) both discussed the success of SAE in attracting the interest of major corporations. Dan agreed that trying to make inroads into this as a possible opportunity to attain/attract major corporate interest.
  12. Daren Hudson (District I AVP) provided Dan with contact information for a potential resource. He feels the SAE program is a huge untapped resource. Discussion ensued on making connections.
  13. Grant policy: In order for the foundation to be able to fund its own operations, it needs to create a reserve and budget. A percentage of fundraising will be retained by the foundation in order to support the fundraising efforts. Dan/Mandee provided a spreadsheet that detailed a three-year average of funds and how those funds will be invested, what amount would be retained, and what amount will be dispersed. This will enable both the EC and AMA Foundation boards know what money is available and provide financial transparency. Dan described how money would be dispersed when requests are made.
  14. Endowment: Dan presented a hypothetical endowment amount, described how it would earn interest, how funds could increase, and described a prospective spending policy. Long-term, the endowment will be able to provide funding for future expenditures.
  15. Motion IV: Motion by Jay Marsh (District IV), seconded by Randy Cameron (EVP), to approve the grant policy as provided by the AMA Foundation. Motion passed unanimously.

Rich recognized Mandee for all of her hard work over the years and wished her well in her new endeavor. Dan also praised Mandee and also recognized Kelsie Walker for her work on the grant policy.

Lunch

Executive Session

10. Committee Reports.

  1. FAI
    Tim Jesky (District VII) FAI is rescheduling the plenary session. Several world championships have been canceled or rescheduled. There was a discussion about FAI teams from a liability standpoint and an insurance standpoint. Rich stated that AMA selects the team but those on the team choose to attend. AMA provides a stipend only and has no responsibility for team members. Chad noted that the CDC is stressing individual responsibility rather than employer responsibility for travel and possible exposure to COVID-19.
  2. Education
    Jim Tiller (District IX) introduced Kyle Jaracz, AMA’s Education director. Going into 202 the focus was on Camp AMA, stressing focus on STE(A)M aspects, creating contacts, and repurposing the lessons learned into shareable lessons. There were no contracts with supporters or instructors in previous years. Because of COVID-19, Kyle recommended that Camp AMA be postponed until next year and he would try to create a livestream experience and a virtual experience. He asked for some feedback from the EC.
  3. PADCOM/NFFS proposal
    Chad introduced David Lindley, NFFS president. NFFS is exploring the idea of an indoor site at the IAC in Muncie, Indiana. NFFS will need an agreement from AMA to continue exploring the possibility, including the zoning commission. Bud Layne has provided the initial funding for the proposal. TMW is the architect that NFFS has been working with and the firm is in the discovery process. David introduced Scott Black to discuss the TMW process. He is pleased with the company’s open-book policy. Scott and TMW have put together a budget and feasibility study. Scott presented some concept drawings of the proposed facility that displayed its dimensions and even possible future additions that would incorporate a dormitory and additions to the museum. This is a long-term project.
  4. Under the direction of the EC, Chad has had numerous conversations with the NFFS and a fundraising firm called Hartsook that handles these types of projects. The firm supported the need for a feasibility study. It feels there is a possibility for fundraising and a timeline. Chad did note that he has reservations about the proposed project.
  5. Bud Layne was introduced. He mentioned a campaign called Do It for the Next Generation. He noted his background and experience in fundraising and feels that there are great opportunities within AMA.
  6. Rich noted concerns with the timing of the project in light of the FAA and COVID-19 situations. He supports discovery but does not want it construed as permission to act on it. Keith Sessions stressed that AMA cannot build or even contribute to the project or provide its maintenance. He stressed that when the issue was discussed several years ago, the possibility of facility rental was explored and it was found that there was limited interest. Jay Marsh (District IV) expressed concern about conflict of interest with the AMA Foundation and NFFS looking at the same donor and sponsorship pools. Leo Pilachowski stated that NFFS is only asking for permission to do discovery. It is not asking for anything else from AMA except the possible site. He noted that Indoor flying is becoming very popular and stated that a national site is extremely important.
  7. Rich again cautioned against unrealistic expectations for AMA’s participation. David Lindley is anticipating that discovery will take roughly 4-6 months. There was discussion concerning income potential for the facility.
  8. Motion V: Motion by Randy Cameron (EVP), seconded by Andy Argenio (District I), to accept the NFFS request to collaborate with staff to continue the indoor flying facility discovery phase and feasibility study and for the NFFS to fund all efforts through the AMA Foundation. Motion passed unanimously.

11. Old Business

  1. a. Military paygrade program
    In July 2017, a motion was made to determine a policy for offering a discount to military paygrades of E5 and below. Chad feels the proposal was never properly addressed. Headquarters recommends that we operate on the honor system and that we offer the discount to all active military (and vets). This was brought forward by AMA Headquarters because it was an old motion that was never implemented.
  2. Rich noted that the previous motion needed to be revised or rescinded before acting upon the issue. Discussion ensued about the problems that the Headquarters was facing at the time, what the initial motion’s intent was, the amount of the discount, and how to do it. Eric Williams suggested that we look at the structure of AMA’s discounts. Chad noted that staff have received some pushback in limiting the discount to only E5 and below instead of offering it to all military personnel. There was a long discussion about whether or not to offer a discount and whether it would attract new members or alienate the current members.
  3. Motion VIII: Motion by Andy Argenio (District I), seconded by Jay Marsh (District IV), to rescind the July 2017 motion to create a membership category for military paygrades E-5 and below, and send to the Membership and Marketing Committee for further study. Motion passed: 10 yes; 3 no (EVP and Districts III and VI)

12. New Business

  1. a. Model Aviation
    Chad noted that Rob Kurek (Communications director) wanted to have a discussion concerning Model Aviation and get some input from the board and AVPs concerning the frequency of the magazine. Rob feels that it is necessary to spend members’ dues responsibly. Rob discussed the drop in advertising and proposed considering the frequency of publication. He brought up the subject of the digital magazine and the recent PDF version that was produced as a membership recruitment tool.
  2. Rob stated that if the magazine’s frequency were to be reduced to 10 issues, then the other two issues could still be offered digitally. He noted that older members could still be helped by their kids to print the digital copies. He asked the EC to discuss the proposal with their constituents and get a feel for the proposal. He brought up the problem of www.ModelAviation.com on smartphones and stated that it was not optimal. He noted that video and social media have had increased usage and that other media channels lack the engagement.
  3. Jim Tiller (District IX) asked if charging for the printed version was an option. Rob stated that currently 10% of members have either opted for the digital version only and roughly 20% have chosen to receive both for $9.95. Eric Williams (District II) asked about the cost to optimize the website for mobile. Rob suggested that the content would be more appealing to the younger members whom we are trying to attract. Rob doesn’t foresee print advertising returning to previous levels.
  4. Chad asked for feedback on several options:
    • Digital with an optional paid print version
    • Reduced print frequency
    • Reduced page count
    • Change the binding method.
  5. Eric asked how Rob planned to reduce the frequency. Rob stated that combining issues (offering larger issues) would amount to less savings. Eric asked for some actual figures in stair-stepping the elimination of the print issue. Chad noted that looking at making changes in 2021 would likely require more planning. Keith Sessions mentioned visiting the National Society of Radio Controlled Aerobatics (NSRCA) and explore how it converted its magazine, K-Factor, to strictly digital.
  6. Randy Cameron and Rich Hanson suggested that Lawrence Harville and the Publications Committee explore the topic and return to the EC in July with recommendations.
  7. b. Nats 202
    Mark Radcliff (District III) is the EC liaison. Mark contacted NSRCA (RC Pattern) and that the SIG plans to cancel its participation citing a number of reasons. Mark also questioned the Scale group and NASA (RC and CL Scale) has decided not to participate as well. The International Miniature Aerobatic Club (IMAC) region leader is a medical professional who has expressed concerns with hotels and eating establishments.
  8. Chad shared some data. AMA surveyed past participants and noted that these people were highly concerned about the COVID-19 pandemic. Respondents had quite a few concerns about attending, but the majority still wanted to attend. It appears that many are still interested in attending the Nats. The survey response was roughly 700 members.
  9. Eric Williams (District III) asked about various vendors who have supplied services in the past. Yolanda Jones felt there were no concerns with food vendors but noted that sponsorships are down.
  10. Mark asked if the Nats was a break-even prospect. Chad feels that if attendance is down, it could potentially operate in the red. Trophies are ordered based on preregistration numbers. Andy Argenio (District I) asked if other groups were aware that NASA and NSCRA have canceled attendance.
  11. Gary Himes (District VI) suggested that the Free Flight people were hoping that AMA would decide to cancel the event. Chad feels that if we announce that we are still having Nats we should look at increased safety measures. We are on par with last year’s anticipated attendance and much would depend on the national reaction on June 10.
  12. There was discussion about who would run an event if the actual SIG pulled out. Yolanda Jones feels that CDs could be found to run the contests in the event that members wanted to participate.

13. Awards

The EC also approved Rusty Kennedy to receive the Distinguished Service Award (Motion by Randy Cameron [EVP], and seconded by Eric Williams [District II]) and Rick McCaskill received the Superior Service (nominated by Jim Tiller).

Both received unanimous approval.

Chad noted that John Brodak, a noted manufacturer and distributor of Control Line models and accessories, passed away on April 25, 202.

Meeting adjourned at 6 p.m.

Release Date

Mon, 06/01/202 - 08:55

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2020-04-25