BMW Motorcycle Owners of America
P.O. Box 3982, Ballwin, MO 63022
voice: (636) 394-7277 fax: (636) 391-1811

January 2002 Board Meeting

BMW Motorcycle Owners of America Board Meeting Summary
St. Louis, MO
January 19, 2002

Board of Directors Meeting
Open Session
St. Louis, MO
January 19, 2002

Present: Don Hamblin, President; George Glascock, Vice President; Deb Lower, Secretary; Rob Lentini, Treasurer; Directors Michael Friedle, Ted Verrill, Larry Hawthorne, Chuck Manley, Matt Parkhouse; Ray Zimmerman, Executive Director; Sandy Cohen, Managing Editor; Ted Moyer, Advertising Sales Representative; Don Faichney, 2002 Rally Chairperson; Sue Rihn-Manke, Ambassador Liaison; Karol Patzer, Mileage Contest Coordinator; Greg Hutchinson, Club Coordinator; Nancy Sulfstede, Bookkeeper; Marilyn Roberts, Recording Secretary; Mae Glascock, Member.

Don Hamblin read a statement regarding appointments to the Board and to committees. At his request, that statement is attached to these minutes. Larry Hawthorne moved, seconded by Deb Lower, to approve the appointments of George Glascock as Vice President and Chuck Manley and Michael Friedle as Directors. Motion carried. Don welcomed Chuck and Michael to the Board.

Departing from the published agenda, Don asked Ray to explain the search process for the Advertising Sales Representative, and to introduce Ted Moyer. Ray explained how the search adhered to the process stated at the October Board meeting. Ted Verrill moved, seconded by George Glascock, to ratify Ted Moyer as BMW MOA's Advertising Sales Representative. Motion carried. Don thanked Ray Z. for insulating the organization from influences.

Secretary's Report
Deb Lower moved, seconded by Ted Verrill, approval of the October Board of Directors open session minutes. Motion carried. Don Faichney requested clarification in the October minutes regarding why the hotel rooms in the Trenton area are full. The statement in the October minutes is erroneous because our members filled the hotels; the waterfront festival fills only one hotel. The new wording will read: "In the August issue of the BMW Owners News appeared a listing of lodging available in the area for members to use for booking reservations. At this time, all hotels in the area of the rally are booked; the nearest vacancies are 30 miles away."

Another correction was a statement in the Advertising Manager's Report, which should read, "Anonymous book advertising sales rose 18% this year." The Anonymous book is not sold but is a member benefit.

A clarification of these issues will be in these minutes and the October minutes will stand as published.

Election Report
Deb Lower reported that there are at least two nominations pending for vice-president, one for treasurer, and three for director positions. The nomination process and time table was published in the December BMW Owners News.

Rob Lentini will not seek another term as treasurer. It is important to have two qualified candidates for each position. Rob requested that his Finance and Operations Committee report be given under New Business. Deb Lower requested the same for the Rally and Events Committee.

Rob referred to the November 30 income statement. The organization is $117,995 to the good side, due mostly to advertising income. International Rally income was approximately $100,000 over projection. "Other Income" was down approximately $100,000, primarily due to the market downturn; this was a paper loss and not from principal. BMW Owners News was approximately $47,000 over in expenses related to printing and postage. Rob requested that the monthly financial reports be sent to each member of the Finance and Operations Committee.

Ray and Don Faichney have constructed the International Rally budget. The Finance and Operations Committee has reviewed it and is comfortable with the budget that is conservative regarding attendance of 4000 adults and 200 children. Rob Lentini moved, seconded by George Glascock, that the budget formulated by Don and Ray be approved by the Board. Discussion: The break-even point is 3200 attendees; 4000 adults and 200 children will produce a profit of $41,900. Motion carried.

Although the figure is lower than a year ago, BMW Owners News aged receivables still are high. Of most concern are those accounts that are over 90 days old. Ray Z., Sandy Cohen and Ted Moyer were tasked with determining policy to deal with aged receivables.

Our investment portfolio has been diversified and is now self-managed. The portfolio has increased since the last meeting because the market is up. We will soon add another $30,000 to the portfolio. Our cash position is currently high-at $200,000-because members are taking advantage of multiyear renewals and lifetime memberships before the dues increase takes place.

Executive Director's Report
Financial graphs reflecting the November 2001 financial statement show that year-to-date income is higher than budgeted, cost of sales is down, "other" actuals are slightly below budget, and net income continues to rise as we approach the end of the year.

The last update to the strategic plan was done on April 4, 2001. Writing assignments were made but there has not been input from the Board. Don reminded Board members that it is their duty to do strategic planning and that the Board committees should continue to work on it.

Regarding new office space, the current lease expires October 2002. Ray reported on three properties but stated that the move is too far in the future for realtors and property managers. The three properties would cost: $6,000, $5,300, or $2,550 per month/per year. The 2002 budget allows a one-month overlap in rents. The staff favors the least expensive property presented but it will be gone by later in the year. Rob Lentini stated that our investments could allow us to move on if it's in the best interest of the BMW MOA. Ted Verrill moved, seconded by Rob Lentini, to amend the 2002 budget to allow an additional $9,000 flexibility to negotiate with leaseholders for early termination, but not over what we currently owe. Motion carried.

Ray is in process of obtaining intellectual property representation.

Ray, Larry Stonestreet and two BMW MOA members staffed a booth at the International Association of Fairs and Expos (IAFE) convention in Las Vegas last December. The intent was to get exposure to the managers of fair and expo centers and the goal was to return with five contacts. Success was much greater than expected with 36 facilities expressing an interest in having BMW MOA hold an event at their facility. Ray will send a copy of his report to each Rally Site Search Team member. Ray provided for Board members review photos of the booth, displayed rally pictures, the banner hung at the booth and the Power Point presentation used to answer questions from IAFE convention attendees.

Managing Editor's Report
Sandy Cohen procured a post office box and the BMW MOA office procured a toll free number for advertising, per the last Board meeting. Sandy merged a list of current and past advertising and billing contacts and did a mass mailing of approximately 600 packets containing the new contact information, rate sheet, 2002 contract and Anonymous book flyers. The contacts will be given to Ted Moyer. Sandy mailed approximately 200 holiday cards to BMW Owners News contributors. A magazine design meeting to identify new ideas was held over the holidays. Sandy provided a spreadsheet of pre-press versus CTP method; instead of the printer, Morr Art is now scanning photos, which results in a savings. Emily Heggarty is working on aged receivables, and Sandy will present to Ray Z. suggestions of a company to do the collections. The Anonymous book is on schedule and is in its second proofing. Sandy has added time zones, metric measurements, and airline company (American and Canadian) phone numbers. Ad sales for the Anonymous book are down. Sandy submitted to the Board a report and analysis of the November issue reader survey; 1346 surveys were returned, along with 149 letters. The survey is skewed regarding overall BMW MOA stats and demographics, but the results are intended for editorial and advertising purposes. Sandy, Michael Cohen and Ted Moyer will attend the Dealer Expo in Indianapolis in February. Ray Z. has sent 10 RFPs for the magazine production contract, with a return date of February 4.

Advertising Report
To secure files and effect a transition, Ray Z. and Ted Moyer will travel to Ray Monroe's office within the week.

Committee Reports
The Communications and Marketing Committee is concerning itself with communication in general as it relates to web and traditional media. The committee is working toward BMW MOA's communication with chartered clubs regarding the type of information the clubs would like put on the web in the When & Where listings. Ted Verrill will have a report on e-commerce web security in April. On the Google search engine BMW MOA is the number one selection under the most common BMW motorcycle search selections. We are second on Yahoo.

Finance and Operations and Rally and Events reports will be given under New Business.

Rally Report
Don Faichney reported July 10 is Gathering of the Clans Day in Trenton. Anyone wearing a kilt that day will be judged and first place will receive a prize. Commercial Vendor letters will be out next week, along with a book from Customs for commercial businesses. Shower facilities will be two shower trailers of 12 showers each plus those on property. Additional showers are available nearby at Canadian Forces Trenton, plus they are allowing use of their chairs and tables. An 11 X 14 inch map of the rally site will be the centerfold of a future issue of the BMW Owners News. There may be an increased number of Canadian Customs agents at the border, which will facilitate a speedier crossing. Don Faichney will also address egress at U.S. Customs. These items are needed to cross the border: anyone who will arrive by airline must have a passport. Others who cross the border by motorcycle, car, or truck must have an original (no copies) birth certificate and photo ID; the photo ID is required to see if the two documents match up. Canadian authorities will not confiscate radar detectors unless the detectors are being used. A gun can be stored at the Canadian border. Mace, pepper spray and fireworks are not allowed. Jean Gatti will be leaving the rally team for the next few months. Don submitted a list of 28 rally-related articles that have been published, submitted or planned. Don wants to put an area information booklet in the rally packets. Consensus was that that would eliminate some advertising in the rally program. Don Hamblin directed Don Faichney, Ted Moyer, Ray Zimmerman, and Sandy Cohen to find a solution by March 1.

Michael Friedle reported that BMW NA wants to sponsor the Mobile Tradition display. Because of the expense of shipping motorcycles overseas Mobile Tradition will not bring vintage bikes but will display parts, posters, brochures and memorabilia. BMW MOA will set up a vintage bike display. There will be a ride, which NA will sponsor, from New Jersey to the rally. A track day at Shannonville will be held on Friday. These rides will not be races. There will be 10-12 riders per run, led by an experienced track rider. For those who are waiting, there will be a warm-up or skills event in the parking lot, as well as a tech inspection. The only way to sign up for track day is in advance through a local dealer.

In order to avoid long "briefings" Don Hamblin asked Board members to send large batches of data to Marilyn ahead of the meeting for inclusion in the Board books.

BMW MOA Foundation
Clark Luster reported Don Hamblin and Deb Lower are the current Board representatives to the Foundation. Camp Trenton has been approved by Foundation and will be co-chaired by Rob Nye and Meredith Hassall. Fifty young people will arrive at the rally two days early; groups will be divided into 15 to 19 year olds and 19 to 25 year olds. The budget is $5000 and $2000 in gifts have already been received. The Foundation will again sponsor the ERC courses at the Trenton rally. Suggestions for Foundation awards should be given to Rob Nye. Foundation brochures will be inserted into rally packets. The annual meeting of trustees will be held on Wednesday, with discussion centering on communication, additional trustees and a new president.

Liaison Reports
Club Coordinator. Greg Hutchinson reported that 122 clubs have renewed and 60 more are expected. He has changed the renewal form to include additional contact information and has already sent an email to club presidents requesting a copy of club bylaws, which will aid a new club in establishing bylaws. For statistical information, the renewal form also asks for the club's charity donation. Don Hamblin tasked the Communications and Marketing Committee to take a look at the membership discount when multiple club members renew at one time. Greg pointed out that many club contacts in the Anonymous book are incorrect because renewals arrive after the Anonymous book deadline. This is not a problem as long as contact information is kept current on the BMW MOA's website. BMW MOA's website server can host chartered club websites at a low cost. Ted Verrill has already sent an email to that effect to club contacts. Sandy Cohen requested that Greg determine the average number of attendees at each chartered club's rally; this information will be of help to advertisers. The May Agency writes insurance policies for chartered club rallies. Don Hamblin tasked Greg and Ted Verrill to work with the Finance and Operations Committee on chartered club insurance.

Mileage Contest. Karol Patzer reported that the 2002 Mileage Contest will run from April to October, as in previous years. In her recent survey, there was not an overwhelming majority favoring a longer contest.

Consumer Liaison. Rob Lentini reported that much of the activity has been closed out and that subsequent activity has been light.

Old Business
Per Don Hamblin the established bylaws amendment procedure will be followed to strike from the bylaws the staggered term of office procedure, which was placed there three years ago. Other necessary bylaws changes should be made at the same time. Don asked Deb to review bylaws and present proposed changes to Board for review.

Rally and Events Committee 
Deb Lower presented the Press Liaison job description. There has been a request that the Pioneer Dinner be funded in order to honor those who helped establish the club at its beginning 30 years ago. The cost will come out of the rally budget. Posters advertising the 2002 rally have been designed and will soon be at the BMW MOA office for distribution. Leftover door prizes will no longer be transported back to the BMW MOA office after the rally. Door prize pick up will be heavily promoted and any unclaimed prizes will be distributed at the discretion of the rally chair.

New Business
Rally and Events Committee
Deb reported for Committee that automated rally registration is not going to be part of 2002 rally, but it will be attempted at the 2003 rally after a plan has been developed by a working committee of the Board. Don Hamblin appointed the current Awards and Tally chairs, the current Registration chairs and Gray Buckley to develop a procedure and design that can be beta tested before the 2002 rally. A more positive spin will be put on day passes. No mention of day passes will be made. Instead, the approach will be, "Admission is $30" regardless of the length of stay.

There has been a request for BMW MOA support at the BMW Daytona Beach gathering. The Rally and Events Committee suggested support by providing coffee. The committee would also like to have Ambassadors present with membership brochures, and the BMW MOA banner from the IAFE convention should be displayed. Ted Verrill moved, seconded by Larry Hawthorne, that BMW MOA will defray up to $500 for the coffee provided at the BMW gathering at the Holiday Campground during Daytona Bike Week 2002 for the purpose of membership marketing. Motion carried. Ray Z. will contact Dave Cwi. Rally organizers will provide copy of coffee expenses to request reimbursement up to $500.

Finance and Operations Committee
The Rally Disaster Relief Fund was discussed and brought up for action. Larry Hawthorne explained the purpose of the fund is to provide financial aid to clubs who suffer significant financial loss due to inclement weather during or immediately prior to their rally event. Procedures were specified with a change in Paragraph 2, line 4, to specify from weather reports and/or petitions, which verify…" Rob Lentini moved, seconded by Larry Hawthorne, to approve the proposed policy. Don Hamblin tabled the subject to the April Board meeting. 

The IRS has raised the per mile figure for travel reimbursement to 36.5 cents per mile. BMW MOA Policy provides for automatic adjustment to the IRS rate.

Ray provided a spreadsheet for use by office personnel to reimburse those members who upgraded to Life Memberships after already renewing. Rob Lentini moved, seconded by Chuck Manley, to adopt the chart given by Ray Zimmerman effective for those who renewed on or after July 1, 2001 up until February 28, 2002. Motion carried.

The meeting was recessed for dinner at 6 p.m. The Board reconvened from Executive Session at 9:40 pm and reported the following items.

Ambassador Report
Sue Rihn-Manke thanked Bob Henig, Bob's BMW, for hosting the Ambassador Social Hour at the 2001 BMW MOA International Rally in Redmond, Oregon. There are two new Ambassadors: Gray Buckley (Colorado) and Bob Henig (Maryland).

Finance and Operation Committee
Prepaid Legal Services discussion has been tabled to the April Board meeting.

Communication and Marketing Committee
The Board clarified the long-standing policy of no advertisements on the BMW MOA website.

Awards and Recognition Committee
Items deferred to Executive Session will be discussed at the April Board meeting.

Ted Verrill moved, seconded by George Glascock, to adjourn the meeting. Meeting adjourned at 9:45 p.m. Next Board meeting will begin at noon on Saturday, April 20, 2002.

Respectfully submitted,
Marilyn Roberts, Recording Secretary
Approved by Deb Lower, BMW MOA Secretary
March 23, 2002

Attachment added at Request of Don Hamblin and pPresented as first item of business:

As I'm sure you all know, Jim Shaw, BMW MOA Board of Directors Vice President, and Karol Patzer, BMW MOA Director, have left the board to pursue other interests and challenges. Karol has agreed to stay on as a non-voting member of the Awards and Recognition Committee and Mileage Contest Coordinator, so her unique insight with those shaping these important programs will not be lost. Director George Glascock has stepped into the role of Vice President. This left us with two vacant Directors positions.

Pursuant to Article III. Board of Directors, Section 5. Vacancies, of the bylaws of BMW MOA, I am submitting appointments for each of these vacancies for ratification. Obviously, I have appointed George Glascock as Vice President. Additionally, I have appointed, Michael Friedle and Chuck Manley to the other vacant positions. Michael will be filling the remainder of George Glascock's Director position, and Chuck will be filling the remainder of Karol Patzer's. Both Michael and Chuck have been actively involved in the Rally Site Selection process, and Michael has been a recent International Rally Chair.

I have also appointed Chuck to both the Communications & Marketing and Awards & Recognition Committees, and Michael to both the Finance & Operations and Rally & Events Committees.

These appointments were approved during the January 19, 2002 meeting of the BMW MOA Board of Directors.

So that you know the method used in making these difficult decisions, let me cover the process I used:

With the 2002 elections on the immediate horizon, I decided to stay away from appointing anyone who had either informed me or announced their intentions to be a candidate in that election. While there could be an advantage for someone running in that election, I would rather not put myself or the current Board of Directors in the position of being viewed as "king makers" and shorting the election process.

George's position would be up for election soon, so that appointment will only cover about 7 months. Karol's position would not be contested for almost two and a half years. So that individual would need to have the same qualifications, plus be prepared to cover the responsibilities for the long haul. With that in mind, the individuals would need to be someone who:

- Could work effectively and efficiently with the incumbent BoD during that short, but important, time.
- Would be able to quickly understand the importance of the most significant issues we need to address over the next 7 months.
- Would not need a lot of "education" to bring them up to speed on their roles and responsibilities as BoD members. This would be someone who could hit the ground running, so to speak.
- Would have the background and knowledge to expect success in their role of BMW MOA top management.
- Could be seen as a true representative of the general membership.
- Had demonstrated their ability to fulfill the necessary commitments required as a member of the BMW MOA BoD.

In filling these vacancies, I considered those who ran unsuccessfully during the last election and a number of other highly qualified candidates. I weighed each potential candidate's current desires, ability to fulfill the remainder of the terms in question, and what's best for BMW MOA in making these decisions and offers that will affect the future of the organization - as has been done in the past, and as I would hope each of you would too.

In closing, with the 2002 election close at hand, I would like to extend my personal request that each individual who was under consideration consider running for one of the positions being contested. It is clearly evident to me that any of those individuals would be imminently qualified to serve as a member of the BMW MOA Board of Directors Top Management team. In my mind they are some of the finest examples of what BMW MOA is all about.

I will now entertain a motion so ratify these appointments.

Respectfully submitted,
Marilyn Roberts, Recording Secretary
Approved by Deb Lower, BMW MOA Secretary

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