Executive Council Meeting
July 21, 2022
Teleconference
The meeting began at 7 p.m. EDT
- Opening Business
In attendance: President Rich Hanson, Fishers IN; EVP Randy Cameron, Springfield MO; Executive Director Chad Budreau, Parker City IN; 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, Andy Griffith, Jacksonville FL; District VI, Gary Himes, Kansas City MO; District VII, Randy Gibson, Lansing MI; District VIII, Lawrence Harville, Hurst TX; District IX, Jim Tiller, Custer SD; District X, Greg Stone, Yorba Linda CA; District XI, Phil Tallman, Medical Lake WA.
Others in attendance: Brady Ware staff (Bob Reynolds, Twana Cheek, Cory Taylor) Rusty Kennedy (Foundation board chair), Vicki Barkdull (AMA Controller), and Don Shook, (Merrill Lynch account manager for the AMA and AMA Foundation account portfolios).
AMA Audit Report
Bob Reynolds (Brady Ware) announced that he will be retiring from the Brady Ware firm. Tawana Cheek (Brady Ware) will be taking over as the auditor for the AMA’s account with support from Cory Taylor (Brady Ware). Cory presented highlights of the audit review. Brady Ware has issued its clean audit opinion of the AMA and AMA Foundation’s financial activity for 2021, which is the highest rating. There is an increase in the membership dues income over the previous year and expenses are being properly managed.
There is a new accounting standard coming out that pertains to leases which will be in effect for 2022. Because of the current market volatility, the financial position has declined since the beginning of this year.
Bob discussed useful lives and depreciation for capital assets. He suggested the standards for computers might need to be changed. He complimented the AMA staff for its preparedness, availability, and good work. He thanked the AMA for the nearly 30 years that Brady Ware has worked with the organization. Rich Hanson (President) and the rest of the council thanked Bob and his team for his years of work and wished him well.
Motion I: Motion by Randy Cameron (EVP), and seconded by Andy Argenio (District I), to accept the 2021 audit report as presented, barring any change stemming from the attorney letter.
Motion passed: 10 yes (I, II, III, IV, V, VI, V, IX, X, XI, EVP); 3 absent (NAA, VII [dropped call], VIII).
AMA Portfolio Report
Keith Sessions (CFO) introduced Don Shook (Merrill Lynch), the portfolio manager for the AMA and Foundation portfolio accounts. The report the board received was dated the end of 2021. Until that point, AMA’s holding growth has been excellent. There have been fluctuations in the market since January 3, 2022. Don cited the pending recession, the situation in Ukraine, inflation, and interest rates that usually run in 30-year cycles. Don feels the investments are solid. He noted that down years usually last 1 year and growth cycles last roughly 7 years. He presented a risk-and-return analysis chart that depicted contribution and profit and indicated that the interests and reserves are well protected. He noted that investments are in long-term markets and positioned for stable growth. He shared some of the investments and anticipated returns in these commodities.
Don noted that the Foundation’s portfolio is also doing well. He stated that the S&P is still off expected earnings and foreign investments are doing poorly, but he anticipates an upswing.
Keith agreed with Don’s expectations that the down period will continue for a year, maybe longer. Keith clarified that Don has discretionary power to make immediate changes as he feels necessary. Don stated that he is watching large companies such as Google and Amazon that have split and anticipated changes in companies’ leadership.
AMA Model Aviation Hall of FameRich Hanson (President) presented the HOF applicants and approved inductees. The chair of the HOF committee is Jerry Neuberger. There is one member from each district appointed to the committee by the District VP to evaluate nominations and recommend inductees.
Motion II: Motion by Mark Radcliff (District III), and seconded by Jay Marsh (District IV), to accept the 2022 AMA Model Aviation Hall of Fame Committee report and inductees as presented.
Motion passed: 12 yes (I, II, III, IV, V, VI, VII, VIII, IX, X, XI, EVP); 1 absent (NAA).
Eric Williams (District II) asked if there is a procedure to notify the inductee of his/her acceptance. It is up to the individual who submitted the nominations as to how the inductee should be awarded.
- AMA Committee Reports
Publications Committee: Gary Himes (District VI)
In June the Executive Council passed a motion to sunset Park Pilot magazine before the contract ends in December 2023. The Publications Committee provided updates on the implementation plan and options to sunset the publication sooner.
Chad Budreau (Executive Director) presented the pros and cons of ceasing publication in 2022 and 2023. Given the existing tasks in the Program of Work, an upcoming national election, deadlines to implement due increases, and a busy renewal season, Chad expressed concerns there are not enough staff resources to properly cease the publication in 2022. If AMA waits until 2023, staff can better plan and allocate resources for a more successful implementation. Discussion ensued about the refund process and what would be involved, and whether or not providing non-members (schools, libraries, Civil Air Patrol groups) with Model Aviation would be feasible. Eric Williams (District II) wants to ensure that lines of communication remain open with non-members. Andy Argenio (District I) feels it is best left to the staff to make the decision as to when to sunset Park Pilot magazine. Jim Tiller (District IX) agrees that resource-wise, it is best left to staff.
A straw poll about the question of leaving the decision to staff or if the EC should make the decision about when to sunset the PP magazine was taken. Eleven voted yes, one abstained (EVP), one was absent (NAA). The minutes reflect that this is not a formal motion, but an exercise for the EC to reach consensus on the issue. The decision will be left up to staff and Chad will report on it to the EC. The general staff consensus is to sunset the magazine in 2023, Chad will keep the EC updated.
Rich Hanson (President) noted that some committee work was overlapping and/or could affect the work of other committees and needed input from other committees. Rich suggested a monthly or quarterly Zoom meeting of committee chairs to bring each other up-to-date on the issues on which they were working. Rich asked for discussion on the proposal. Several noted that it was a good idea and they could build off of the work and ideas of others to increase synergy. Eric Williams (District III) noted that sometimes similar ideas are shared separately with committees and they are unaware that committee members are often unaware that they are working unknowingly for the same goal. He feels it would improve the outcome if all were on the same page. Rich suggested that such a meeting take place prior to regular EC meetings. Randy Cameron (EVP) suggested the meeting should take place one month before a regular EC meeting. Eric feels that the group should have the latitude to request additional a meeting(s) when deemed applicable and sufficient time be built in to allow any research needed.
Motion III: Motion by Eric Williams (District II), seconded by Gary Himes (District VI), to have a work group facilitated by the EVP for the committee chairs to meet prior to each regular EC meeting.
Motion passed: 12 yes (I, II, III, IV, V, VI, VII, VIII, IX, X, XI, EVP); 1 absent (NAA).
Club Awards
Jay Marsh (District IV) discussed the importance of recognizing clubs that have reached important anniversaries and milestones. He presented an idea for three awards: the Centennial Award for clubs with 100 years of continuous existence, the Heritage Award for 75 years, and the Gold 50 Award to recognize a club’s 50-year milestone. The recognitions would be much like the Award of Excellence, but with the anniversary designation.
Jay noted discrepancies with legacy data in the computer system with dates of 1901 for clubs prior to the move to Reston, Virginia, and the date of 199 given to chartered clubs after the move to Muncie, Indiana. More research will be needed by the individual VPs on determining club anniversary dates since staff does not have access to reliable data and or historical club archives. Andy Argenio (District I) suggested a different name for the 50-year award as to not conflict with Gold Leader Club award. Legacy Award was suggested. The awards cannot be given more than once (covering the situation of a club being 60 years old and receiving the 50-year award only once). Eric Williams (District II) noted that the Museum committee had also looked into a similar recognition program and the cost was prohibitive and urged that cost be considered. Eric is supportive of the idea and feels it is important to recognize the clubs. Andy A. noted that many club records reside with older members and if those members have passed away, the records are lost. There was discussion about when AMA began chartering clubs and if the charter number provides any indication of age.
Rich Hanson (President) noted that it isn’t going to be an automated system. We will require the clubs to come forward and ask for this recognition to the VP. The district VP will be responsible for verifying the club’s claim. Andy A. wants clubs to see the recognition as a value. Eric wants to try to formulate some sort of list of eligible clubs. Rich noted that it was always up to the district VP when a club received the Award of Excellence. The Eric was asked form a committee to further explore the recognition program and provide a report for the October 2022 meeting.
AMA Site 4 Updates
Rich Hanson (President) discussed the condition of Site 4 at the International Aeromodeling Center in Muncie, Indiana. He and Chad Budreau (Executive Director) walked the area around Site 4 to assess damages to the new runway. Rich feels that the damage isn’t nearly what was reported on social media. Poorly germinated seeding, erosion, and traffic by members are many of the issues. The old runway area is still in good condition and he shared pictures of both areas. The pictures showed that the grass seed never really took on the new runway area and stated that it will need to be regraded and reseeded. Tony Stillman (staff), who was recently assigned to oversee maintenance, is working with Chad on a restoration plan. Chad noted that we are meeting with seed experts to reevaluate the area. Randy Cameron (EVP) stated that it appeared that there had been water running across some of the area and also eroded the area. Phil Tallman (District XI) suggested getting estimates for sod. Mark Radcliff (District III) noted the amount of time and money that Mike Barbee had donated to grade and widen the existing runway and reiterated the need to get it fixed.
AMA Safety
Eric Williams (District II) and Jay Marsh (District IV) reported on safety issues at a recent AMA event. Jay and an AVP spoke with the club president, CD, and club’s board about AMA’s safety programming and local efforts to mitigate risk. The club and CD were very responsive and supportive of continuing a culture of safety within the AMA community.
The EC then discussed the AMA Safety Committee’s ongoing efforts to evaluate and improve AMA’s safety programming. Chad Budreau (Executive Director) suggested the Safety Committee may want to expand their SMS (Safety Management System) process by incorporating a more formulaic approach when evaluating programs or incidents to provide quantitative analysis. Eric agreed and suggested that it enhances our data, logic, and cogency to any issue. Mark Radcliff (District III) will update the Safety Committee on the discussion.
Randy Cameron (EVP) moved that the meeting be adjourned at 9:40 p.m. EDT.
Release Date Fri, 09/02/2022 - 15:18