BMW MOA Board of Directors Meeting Summary
Present: Paul Glaves, President; Jim Shaw, Vice-president; Rob Lentini, Treasurer; Deb Lower, Secretary; Directors Don Hamblin, Tom Harbrecht, Matt Parkhouse; Ray Zimmerman, Executive Director; Marilyn Roberts, Executive Assistant and Recording Secretary; Sandy Cohen, Managing Editor; Sue Rihn-Manke, Ambassador Liaison; Gray Buckley, Redmond Rally Chair (by teleconference for rally report); Laurence Kuykendall, BMW NA Brand and Event Marketing Manager (for his report to the Board).
President Paul Glaves called the meeting to order.
Approval of Agenda - Two additions were made to the agenda: 1) A vote on the amendment to the bylaws under Unfinished Business, and 2) Member survey report under Executive Director's report. Jim Shaw moved, seconded by Deb Lower to approve the agenda with the addition of the two items. Motion carried.
Approval of Minutes - Jim Shaw moved, seconded by Deb Lower, to approve the minutes from the January 2001 open session meeting. Motion carried.
Executive Director's Report - Ray Zimmerman introduced Laurence Kuykendall, BMW NA's Brand and Event Marketing Manager, who will speak to the Board at a later time.
Ray provided financial charts depicting year 2000 and January 2001 actuals vs. budget for Income, Cost of Sales, Other Expenses and Net Income.
The preliminary draft of the Strategic Plan was finished ahead of schedule. Ray thanked those members of the Board and Volunteer Staff who contributed. Specific topics will be developed next with the goal of presenting the first draft to the Board at the Redmond rally.
A revised contracts summary, compiled by Tammy Leuthauser, was presented to the Board. Don Hamblin thanked Tammy for her good work.
A discussion of an increased per diem rate for volunteer and paid staff when traveling on behalf of BMW MOA was discussed. It was suggested that the current $10/day be increased to $19/day, based on JTR rates for the St. Louis area. Because of confusion as to how the figure was determined and how the new rate would be administered, the subject died without a motion.
An organizational flow sheet and a headquarters flow sheet were presented to the Board. At the Board's request, a communications line, rather than a supervisory line, will be added on the organizational chart between Ray Z. and the volunteer staff. Volunteer staff management is a side duty of an office employee and is a supporting communication function.
A copy of the contract with Wolfe Nilges Nahorski, BMW MOA's auditors who are contracted to count ballots in the current election, was made available to the Board.
Ray discussed a possible new association through the May Agency with Guide One Insurance/American Modern Insurance to provide insurance coverage for our members' motorcycles. Paul asked Ray to work with American Modern and also referred it to the Finance and Operations Committee. Because American Modern offers towing service, he will defer a decision about Towbusters until a decision is made about insurance.
Ray met with representatives from Unicom-ARC, the company that will do our next member survey. Questions for the survey will be approximately 50% from the 1998 survey (to validate the data) and 50% a function of the strategic plan. Sue Rihn-Manke suggested a question about the Mileage Contest length. Although Karol Patzer has a question about the contest's length on this year's opening form, her data may be skewed because only those who enter this year's contest will respond. Sandy Cohen will be doing a survey in the magazine to provide information related to future advertising. A web survey may also be done.
Managing Editor's report - For the past quarter, the magazine has been mailed on time. RFQs for the print contract have been mailed and analyzed. Emily Heggarty, daughter of BMW Motorrad of St. Louis part owner, Bill Heggarty, has been added to the editorial staff. Work has begun on the rally program. The Anonymous book was mailed March 8. Ray Monroe, Michael Cohen and Sandy met at the Indy trade show for a staff meeting, where new contacts and advertising were secured. Ray Monroe and Sandy attended the Daytona rally. A BMW Owners News representative attended the R1150RT/R intro and was given an R1150RT; it was suggested that both Paul and Don drive and evaluate the bike. The BMW Owners News was given an appreciation plaque from the Ride for Kids program for publishing the Ride for Kids schedule.
Advertising Director's report - In the first three months of 2001 advertising sales were up 12.77% over last year. There was a 36.9% increase in March 2001 sales over March 2000 sales; April is 42% higher. Advertising in the 2001 Anonymous book is 17.8% above that of the 2000 book.
BMW MOA Foundation report - Three new pieces of literature are ready for printing and will be distributed at the Redmond rally. In keeping with its mission to support motorcycle safety, the Foundation would like to give an annual award, this year during the Awards Ceremony in Redmond, to the BMW MOA member who has contributed most heavily to motorcycle safety. To foster communication with BMW MOA, Clark Luster would like to have a September meeting at the AMA museum to include himself, the BMW MOA president, Ray Z., Tom Harbrecht, Jim Shaw and Ed Youngblood. Clark will present an informational seminar at the Redmond rally.
Ambassador Liaison report - Sue Rihn-Manke related conversations with Ambassadors at last year's rally, which revealed that some Ambassadors think the BMW Owners News looks like a BMW NA publication, that it is too slick and does not look like a "newsletter." The response from Sandy Cohen and the Board was that the organization takes pride in its publication and has made an effort to raise it to newsstand quality. The Board and staff are invited to the Ambassador dinner at Redmond and should reserve a spot with Dick Hautau. The Ambassador meeting in Redmond will be at 7:30 a.m. Friday. Sue has arranged for Ambassador business cards and will not be using the same vendor as last time. Sue recognized and thanked Steve Huber, who does updates to the BMW MOA website, for updating the Ambassador page on the website.
Consumer Liaison report - Rob Lentini reported that requests have been steady. He briefly discussed seven closed cases and eight open ones.
Finance and Operations Committee report - Treasurer, Rob Lentini, reviewed the February balance sheets for the Board. The biggest losses were suffered because of the under performing stock market in recent months. However, benchmarked against the Dow Jones, the S&P 500 and NASDAQ, our investments lost only 5.8% in comparison to -9.4%, -13.0% and -28.3% respectively for the period 4 January to 1 April, 2001. Regarding cash reserves in the bank, the committee determined that BMW MOA would keep approximately $110,000 in the bank because only $100,000 is insured, and any amount over $110,000 would be put into investments. Forty-five thousand dollars was transferred this month into the Vanguard 500 Index fund.
Events Committee report - The round-trip train is sold out; there are four carloads from DC and one from Chicago. A building is available for Helge Pedersen's presentation. The Fairgrounds will provide sandwich boards for signs. Local police will be available for security overnight; all members of the fire department are paramedics. The chief BMW mechanic for the California Highway Patrol is an MOA member and may give a seminar. Rob Lentini reported that the ERC range is a non-standard size and that MSF will have to certify the range before it can be used. A rally map for the rally program will be available this week. A reception for the Board and volunteers will be held on Monday and Wednesday afternoons.
Laurence Kuykendall reported that BMW NA will donate a give-away bike to the rally and will sell another to BMW MOA at a reasonable price. We may have any models we want except the K1200LT and the 1150 models because the 1150 models are in short supply. BMW NA has contracted with Helge Pedersen and will cover all costs of his appearance at the rally. There will be an R1200C Ride-Out and picnic at BMW NA's expense. BMW NA could provide communications and tech seminars. The BMW NA demo trucks will be at the Mid-Ohio event and in order to be in Redmond on time, they will have to decamp and drive 2800 miles in three days. Laurence and Ray Z. previously discussed the idea of publishing the trucks' route so that riders could escort, wave at or stop and talk to the drivers; this would boost their overworked spirits. The Board is delighted with BMW NA's actions and will reciprocate.
Laurence went on to discuss the problems of the past and the hopes for a future good relationship between BMW MOA and BMW NA. He desires an alliance in which BMW NA provides the means (the bikes) and BMW MOA provides the camaraderie. If we grow together, the issues go away and the paradigm changes.
Bylaws Amendments - It was moved and the motion was automatically tabled at the November 2000 meeting to amend the bylaws as presented by Don Hamblin ("Don Hamblin made a motion, seconded by Rob Lentini, to accept the proposed amendments to the bylaws."). The proposed amendments were published in the January 2001 issue of the BMW Owners News and no comments from members were received. The pending motion was placed on the floor and Don called the question. Motion carried.
Election Update - Wolfe Nilges Nahorski, BMW MOA's auditing firm, was contracted to count election ballots. A copy of the procedural agreement was provided to the Board. Tom Harbrecht moved, seconded by Deb Lower, to approve Paul Glaves' appointment of Ray Zimmerman and Marilyn Roberts as members of the Election Committee to receive certified results of the election from Wolfe Nilges Nahorski. Motion carried.
Dues Increase - The direct cost of member services is running below dues income. Ray Z. did a follow-up analysis in which he graphed past dues increases and proposed increases against cost of living increases. Both the $30 and $32 levels showed a trend in line with cost of living. Suggested new dues rates were 1 year - $32, 3 years - $80, 5 years - $125, and Lifetime - $500. Associate member dues increase suggestions were 1 year - $8, 3-year - $22, 5 year - $37, and Lifetime - $170. If approved, the new rates would be effective on January 1, 2002. Members could take advantage of the old rates until 1 March 2002. Paul referred the issue to the Finance and Operations Committee for a motion to be brought before the Board at the July meeting.
Corporate resolutions - In order to change the signatures of those authorized to act on behalf of the corporation in regard to BMW MOA's investments and bank accounts, the resolutions must be approved and recorded in the minutes of a Board meeting. Jim Shaw moved, seconded by Rob Lentini, to approve the resolutions for our investment accounts and bank. Motion carried.
BMW NA resolution - "Be it resolved that the Board of Directors of BMW MOA wishes to recognize the efforts of BMW NA toward an improved communication and working relationship between BMW NA and the BMW MOA. We are appreciative of BMW NA's efforts, and we resolve to work positively to further the common goals for our members and BMW NA, and dedicate our efforts to that purpose." Jim Shaw moved, seconded by Rob Lentini, to adopt the resolution. Motion carried.
Tom Harbrecht moved, seconded by Jim Shaw, to adjourn the meeting. Motion carried.