08032019 EC Minutes
Executive Council Meeting
August 3, 2019
Muncie, Indiana
Nominating committee met prior to the Executive Council meeting.
1. Opening Business
In attendance: President Rich Hanson, Scottsdale AZ, Fishers IN; EVP Randy Cameron, MO; CFO Keith Sessions, Burlington KY; Executive Director Chad Budreau; 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; representing District VII, Marc “Doc” Shelstrom, Lancaster WI; District VIII Lawrence Harville, Hurst TX; District IX Jim Tiller, Custer SD; District X, Lawrence Tougas; representing District XI, Phil Tallman, Medical Lake WA; Greg Principato, NAA; Felix Gora, AMA legal counsel.
Others in attendance: Randy Gibson, District VII AVP; Shawn Peterson, Pontiac club, District VII; Ilona Maine, AMA Clubs and Membership; Duane Hauser, IT Director; Vicki Burkdull, AMA Comptroller; Mandee Mikulski and Kelsie Walker, AMA Foundation/Grants; Bob Reynolds, Brady Ware; Liz Helms, recording secretary.
Additions to Final Flight list: Robert Godfrey, Gervis Payne, Ray Williams, Paul Weigand, Tom Russell, Ray Neills, and Ed Rankin.
A moment of silence was observed.
2. Consent agenda
Approve the April 24-28 Council minutes with corrections or amendments as submitted and to approve the hosting of the 2021 Pylon World Championships.
Motion approved by acclamation.
3. President’s Report
(Rich Hanson)
Rich discussed a donation request by the NAA. NAA is seeking to fund a trophy/award in honor of Bruce Whitman. Bruce is to be the first recipient of the award.
Rich discussed that most associations are facing similar challenges to AMA’s to include membership decline and finances. He noted that the FAI is looking to change its governance and structure.
Budget issues will be discussed later in the meeting and during Sunday’s budget meeting. AMA is working on a balanced budget. He is looking at 202 to prioritize spending and cuts and noted that it will be an evolutionary process. We need to position ourselves to deal with changing outlook for hobby.
A discussion about LAANC possibly using a company dealing with phone apps named Kitty Hawk.
Daryl Jenkins put together a recreational festival called RoboFest. It gathered UAS operators together in Fairfax, Virginia, area for a global discussion concerning mutual issues. Rich was asked if AMA would consider funding some of the catering. Rich is asking to do this using his own budget but wanted to ask for council approval. There was no disagreement.
4. Executive Vice President’s Report
(Randy Cameron)
Attended Wings for Kids event in Louisville, Kentucky, that raised $42,080 for the Norton Children’s Hospital.
Randy then introduced Mandee Mikulski, foundation director, and Kelsie Walker, the grant/programs coordinator from the AMA Foundation. Kelsie is looking at increasing the amount the Flying Site Assistance provides to clubs, suggesting that AMA provide either 50% of the requested amount or a maximum of $3,000. Minimum checks will be $100. Under her proposal, an optional draft can be submitted online to the grants/programs coordinator for feedback by January 5; submission deadline (to the district VP) will be moved up a month to February 1, allowing more time for application verification and committee review. Discussion ensued on the submission process. Kelsie will work with the district VPs to make sure all information is included. E. Williams suggested providing a template or standardized form so there will be no subjective decisions made by AMA Headquarters personnel.
Another change to the program is to allow clubs to apply annually for the grant. The current policy is that clubs are only eligible for grants every three years. Kelsie discussed changing the scoring criteria and judging the applications on the requirements.
E. Williams (District II) asked how increasing the amounts given to clubs would have affected other clubs that might no longer be able to receive money. He asked if there will there be enough available funds to help most clubs or will the new proposal prevent other clubs from receiving any awards and discussion ensued.
Lawrence Tougas (District X) asked if there was a mechanism to ensure that clubs used the awarded funds as proposed in the initial request and if that concern would be addressed. Kelsie noted that the guidelines require clear reporting and a six-month check-in. She has received 70% of the clubs’ reports so far and will continue to pursue the remaining clubs for accountability before the six-month deadline. If a club fails to follow through with the projected developments, there will be accountability.
Bob Brogdon (District V) clarified that clubs were expected to provide justification for their needs. Kelsie stated that the application would require that.
Rich Hanson (President) stated that there are three issues:
- Increasing amounts awarded, which was tabled until EC teleconference meeting on the last Thursday of August;
- Change of deadline transition period;
- A motion to change the eligibility from every three years to annually. This was also tabled until further discussion.
Randy Cameron (EVP) suggested tabling the deadline transition period until a phone vote or online vote could take place. Eric Williams (District II) suggested making sure there is exceptional clarity concerning the dual deadlines.
Motion I: Motion made by Randy Cameron (EVP) to accept the proposed Flying Site Grant application date changes and allow the various AMA District VPs to review the submissions as presented by the AMA staff. Gary Himes (District VI) seconded the motion.
Motion passed unanimously.
There was a discussion about how the matrix and scoring criteria addresses concerns that some clubs might repeatedly apply for grants because the three-year rule is suggested to be removed.
5. Chief Financial Officer’s Report
(Keith Sessions) Keith briefly discussed the need for ongoing repair work on the AMA Headquarters building and other large expenses. He reiterated that the organization’s most robust quarters are the first and fourth quarters. Last year’s largest expenses were the new computer systems and government relations.
a. Audit report:
Bob Reynolds of Brady Ware presented the draft audit report. He thanked Vicki Barkdull and Chad Budreau for their assistance. He noted significant differences between last year’s report and the 2018 report. There were presentation changes required (in the audit report) for all nonprofits in an effort to create consistencies among other nonprofit reporting practices. He essentially gave the AMA a clean bill of health for the organization. He also strongly suggested diversifying income sources, streamlining costs, and keeping in mind that developing new income sources will take time and cost cuts would have an immediate impact.
Bob discussed the audit report page-by-page, comparing it with the 2017 figures. He stated, “If you continue to pull from your investments to meet operating expenses, the money is gone.”
He discussed funds held in reserve for various contingencies and suggested that the board reconsider reallocating some of the currently designated amounts.
Motion II: Motion made by Randy Cameron (EVP) to accept the audit report as presented. Motion seconded by Eric Williams (District II).
Motion passed - 12 yes, 1 abstained.
6. Executive Director’s Report
(Chad Budreau) A handout was shared naming AMA Model Aviation Hall of Fame recipients as voted on by the committee.
Motion III: Motion made by Jim Tiller (District IX) to approve AMA Model Aviation Hall of Fame recipients as presented. Motion seconded by Lawrence Harville (District VIII).
Motion passed unanimously.
A proposal by MultiGP was discussed concerning hosting a concert on-site at AMA Headquarters in Muncie, Indiana. MultiGP stated the concert would end at 11 p.m. Chad wanted the proposal discussed by the council because of some issues with previous gatherings hosted by outside organizations. He wants to make sure AMA does not go beyond its mission.
Topics of discussion included trash pick-up, whether or not alcohol would be permitted, charging for various amenities, insisting that the event must be compatible with the AMA family-friendly image, and AMA receiving a cut of the proceeds (not merely sales). Mark Radcliff (District III) noted a previous event in which AMA ended up not receiving promised goods. Rich Hanson (President) wants any agreement better structured than with previous events.
Chad mentioned the EC trip to Washington, D.C., and how well the meetings went. He mentioned the LOAs (Letters of Agreements) that needed to be in place between AMA clubs and the Air Traffic Control (ATC). Chad urged clubs to consult AMA with any agreements before signing.. AMA is still working out what sites need LOAs. Some clubs have not certified or chartered their sites that actually are in controlled airspace.
He noted that LAANC is available for recreational users. It goes up to 400 feet and applies to controlled (towered) airspace. The government team continues it work to ensure that AMA operations can continue above 400 AGL in uncontrolled airspace before the implementation of Section 349. As it stands now, the advice is to continue what you’re doing until all has been clarified. Chad noted that there have been a number of problems, especially in District X. Lawrence Tougas (District X) mentioned that the FAA in his area seemed to be inconsistent with FAA agreements nationwide. Rich mentioned that we have to make sure that the message that goes to clubs is that AMA members continue to fly under the current safety code and operate as they have been until formal legislation is in place.
- The FBI and FAA have met with AMA concerning national security. Chad feels it has been promising to get allies in that area.
- There will be a public model aviation flight demonstration to which the FAA is invited on August 6 at the Prince George’s Radio Control Club near Washington D.C.
- Chad expects some permanent solutions concerning TFRs nationwide. Some waivers have already been offered in the Bedminster, New Jersey, area. Eric Williams (District II) noted that the waivers were coming quickly and especially for CL events. Any events benefitting kids, charity, and the military seem to receive waivers rapidly.
- Eric Williams (District II) noted that the FAA testing boards seem to agree that the proposed tests need to be on the level of a 13-year-old. Eric has worked with the FAA from the perspective of a modeler.
- Chad discussed the 202 project and thanked the board for its help.
- Paying membership numbers seem to have stopped decreasing. Initiatives to increase membership include relationships or partnerships with the EAA, Horizon Hobby, and the National Association of Rocketry.
- There was a discussion about cash flow and investments. Rich Hanson (President) mentioned that cash flow in the past was managed by a line of credit account. That is currently being managed by the investments. Clarification was asked for and a written explanation will be made to the board.
Lunch
Executive Session
7. NAA
Greg Principato stated that when you join NAA, you get a magazine called Air & Space. Greg gave a copy to each board member and shared a story that was in it.
Rich Hanson (President) attended the last NAA board meeting. The NAA board has been tasked with recognizing accomplishments that focus on sustainability, fuel consumption, and similar initiatives. He also mentioned an agreement between NAA and AMA and stated that he wants to update this decades-old, outdated agreement. He reiterated that AMA will always be offered a spot on the NAA board of directors. Greg set a timeline to have the updates completed by the end of the year.
Greg has informed FAI that the NAA was going from a Tier I country to a Tier II country. This could result in a substantial annual decrease in AMA’s NAA fees. It was discussed that the FAI needs to refocus its priorities instead of raising costs and requiring additional licenses for event participation. Rich mentioned that a letter was to be sent to FAI starting a dialog concerning the effectiveness of the FAI. Jay Marsh (District IV) asked if making participants responsible for acquiring their own FAI license could negatively impact membership and AMA’s standing as a global, community-based organization.
8. Committee Reports
Nominating Committee
(Gary Himes, District VI) Lawrence Harville was the recording secretary, Felix Gora was the teller. On the ballot are:
- District I: Andy Argenio
- District IX: Jim Tiller
- District V: Bob Brogdon, Andrew Griffith
- President: Richard Hanson, Randy Cameron, and Eric Williams
Motion IV: Motion made by Jay Marsh (District IV) to accept the recommendations of the Nominating Committee. Motion seconded by Jim Tiller (District IX).
Motion passed - 10 yes, 3 abstained.
Marketing Committee
(Eric Williams, District II) The committee is currently focusing on Facebook and Google ads and studying metrics to earn best returns. The team regularly fine-tunes the ads, there is a strategic effort to ensure we are not competing against other AMA marketing efforts and pursuing ongoing efforts to reduce cost of acquisition.
Direct mail is being explored for marketing. Return on investment is approximately 10% conversion but is far more costly. We should have rates to consider soon.
The committee is working to reduce new member churn and converting newer members to long-term members. Eric spoke of industry partnerships to include Horizon and the E-flite AMA Apprentice STS 1.5m aircraft.
He discussed how industry manufacturers are assisting with AMA flight simulation trailer’s improvements and marketing.
An EAA/AMA membership drive took place prior to EAA AirVenture.. The offer was made to those who would be new members to both organizations. A BETA test was conducted to lapsed AMA members offers them an EAA membership when renewing their AMA membership. The committee is still working through the logistics. Lawrence Tougas (District X) questioned the concept and whether or not it would be a viable plan to increase AMA membership. Eric and Chad stated it was a plan to test the concept and logistics of such an endeavor. There was a brief discussion of data-driven membership reporting, including length of membership.
Education Committee
(Jim Tiller, District IX) The new education director will be named soon. New replacement propellers for the AMA Alpha are expected shortly. Jay Marsh (District IV) held an Alpha-Alpha challenge—an Estes Alpha and AMA Alpha construction contest. Mark Radcliff (District III) and Tony Stillman (AMA Headquarters) were recognized for their outstanding hard work at EAA AirVenture. Mark noted that EAA needs to better advertise the AirVenture gathering.
Safety Committee
(Mark Radcliff, District III) The committee has updated the Gas Turbine Safety Regulations (handouts provided). The Safety Committee is split on the concept of an LMA3. No raise in insurance or dues for regular AMA members to implement the program is acceptable. Anyone making an LMA3 application would be required to apply for any additional insurance. The weight limit should be lower than ultralight full-scale aircraft at a suggested 225 pounds. Mark discussed stricter inspection requirements and setbacks being placed farther from the flightlines. The Safety Committee has not been able to obtain safety data from any European large model aircraft organizations. Most feel that overall, the risk is not worth the reward. The committee recommends the AMA table the issue for a year and focus on implementing Section 349.
Ilona Maine spoke about insurance and the small number of prospective LMA3 participants. Rich Hanson (President) reiterated that he doesn’t feel AMA should face the possible insurance increase or risk increase of these large model aircraft. Randy also agreed that AMA should not approach the FAA unless/until insurance and risk assessment is in place. Jay Marsh (District IV) strongly cautioned against trying to include any LMA3 programing into current programing. Jim Tiller (District IX) suggested trying to connect the small number of people interested in LMA3 aircraft with each other and let them discuss the issue.
Rich tabled the issue because of lack of a motion. He asked the committee to nail down issues such as insurance and risk management and thanked the Safety Committee for its work.
Mark also discussed safety regulations for radio-controlled Pulse Jet Engines. Ilona clarified that they were looking for consistency in wording to already-approved documents and it was an administrative issue. Rich determined that the issue was not critical.
Flying Site Committee
Eric Williams is compiling a list of ad hoc committee members and plans to host an introductory call next week. The committee is looking for members who can assist in finding and securing flying sites. Rich Hanson asked for a chairperson to grow this effort into an official working committee. Randy Cameron offered to assist Eric Williams.
Revamping the Park Pilot Program. Discussed were increasing the weight allowance without changing the coverage. The program was initiated in 2008. AMA is looking to expand the program to other activities and other surface models (such as cars and boats).
9. New Business
Club Charter Revisions
(Chad Budreau, ED) Looking ahead we may need to modify the club chartering process, which could require board approval. We might want to require that clubs provide copies of their LOA in addition to club bylaws. They are looking at changes for club/flying site chartering to streamline implementation of Section 349 and regulatory protections.
Policy and Procedures
(Eric Williams, District III) Eric stated that policies and procedures are not always where and what they should be and are often inconsistent. He would like to see everything updated. Lawrence Tougas (District X) suggested dating policy and procedures documents. Andy Argenio (District I) suggested that the AMA website has errors in documents, as well as missing, inaccurate, or outdated ones. Jim Tiller (District IX) suggested copyrighting all documents.
Chad noted that if a document originated pre-1984, it can be identified with a copyright symbol. Post-1984 documents/programs must have a diligent effort made to track down the original date. According to Jay Marsh (District IV), even if there are revisions, the original copyright dates still covers the document/program.
Chad agreed and clarified this year AMA has already started adding copyright dates to most AMA safety programs. Rich suggested that Chad or Joyce be made aware of any mistakes/errors in documents.
Lawrence Tougas (District X) suggested holding the November 2019 Executive Council meeting at the AMA Expo West and teleconferencing in any non-attendees. After some discussion, it was determined that the meeting will be via teleconference the following weekend (November 9-10) for those who found traveling on two consecutive weekends inconvenient or burdensome.
PAC
(Chad Budreau ED) Chad feels that AMA has an impressive track record, engaged members, and a strong advocacy message, but as a 503(c) organization, we are heavily restricted by what is permitted with our lobbying efforts. Establishing a separate PAC to protect the hobby will allow for new lobbying efforts beyond what is permitted under AMA’s 501(c)3. To form a separate aeromodelling PAC, we will need a small team that is NOT affiliated with AMA. The small board and lobbyists will raise and use money to advocate and influence legislation on behalf of the hobby in Washington, D.C. Greg Principato discussed how the PAC process has worked in his dealings. Chad noted that PACs are a common practice in the association community.
Chad offered himself and Tyler Dobbs to answer any questions.
AMA Expo
There was some discussion about AMA Expo West that will be continued during the budget meeting. Keith Sessions suggested that trade shows are no longer viable and won’t break even, much less pay for themselves. There was some comparison between the AMA Expo and other shows which are staffed solely by volunteers. Chad discussed the cost-cutting measures he had put in place last year and again this year to make the show financially viable, but the show will continue to lose money. Rich Hanson (President) questioned what sunsetting the 202 event would do to the relationship with our members and the message it would send. An informal straw poll indicated that most of the council was in favor of closing down the Expo. Rich suggested giving it until the end of September before deciding whether or not to continue the event into 202.
Nats
Rich Hanson suggested restructuring the Nats. Tying up/closing the entire flying site most of the summer is a waste of the International Aeromodeling Center. Lawrence Tougas (District X) cautioned that we not kill one program only to throw money into revamping another and still not recoup the original investment.
11. Awards
Two awards requested and approved. Names will be announced when the awards have been made.
12. Adjournment
• Requires EC vote.