Board of Directors Meeting

2002 International Rally, Trenton, Ontario

July 12, 2002

Present: Don Hamblin, President; Larry Hawthorne, Vice President elect; George Glascock, out-going Vice President; Deb Lower, Secretary; Brian Mullins, Treasurer elect; Rob Lentini, out-going Treasurer; Rob Nye, Director appointee; Karol Patzer, Director elect; Michael Friedle, Director; Greg Feeler, Director elect; Chuck Manley, Director; Ray Zimmerman, Executive Director; Don Faichney, Rally Chair; Sandy Cohen, Managing Editor; Ted Moyer, Advertising Director; Marilyn Roberts, Recording Secretary; Members at Large.

Presidentís Statement

In his opening statement, Don Hamblin personally thanked the out-going officers and directors: Vice President George Glascock and Directors Matt Parkhouse and Ted Verrill. The new board is Don Hamblin, President; Larry Hawthorne, Vice President; Deb Lower, Secretary; Brian Mullins, Treasurer and Directors Karol Patzer, Rob Nye, Michael Friedle, Chuck Manley and Greg Feeler. The new board members assume their duties at the July 12 meeting.

Don Hamblin accepted Larry Hawthorneís resignation from the position of Director and appointed Rob Nye to fill that position. Deb Lower moved, seconded by Michael Friedle, the ratification of Rob Nye as Director. Motion carried.

Greg Hutchinson will leave the position of Club Coordinator. Don Hamblin appointed Sam Lepore as the new Club Coordinator. In addition, Don reappointed the other liaisons: Lyle Grimes, Mileage Award Coordinator; Rob Lentini, Consumer Affairs; Karol Patzer, Mileage Contest Coordinator; "Oak" Okleshen, Tech Correspondent; Dave Reynolds, Staff Photographer; Sue Rihn-Manke, Ambassador Liaison; and Ted Verrill, Webmaster.

Don Hamblin explained the purposes of the board standing committees to review, discuss and prepare recommendations on issues assigned to the committees as a way to more effectively use board meeting time. Don personally thanked Rob Lentini for his efforts as Treasurer over the years in working with staff and Board to implement sophisticated budget and financial management processes.

Achievements of the past board include increased communication with members through the website. E-mail messages are read by Don as well as the office and forwarded to committees, liaisons and full board based on content for a timely response to members. An updated and expanded awards program was established for volunteer recognition. Rally sites have been confirmed for 2003 and 2004. Relationships with peer organizations have been enhanced. The organization has moved in support of clubs by establishing the Rally Disaster Relief Fund.

An updated list of standing committees and board functions has been provided to the new board members. Tom Harbrecht volunteered to work with the Awards & Recognition committee. Chuck Manley will take over as the Rally Site Search Committee Liaison. Don Hamblin presented the board standing committees to the board for advice and consent, seconded by Michael Friedle. Motion carried.

The standing committees board members are:

Communications & Marketing: Hawthorne (Chair), Manley, Feeler, Nye.

Finance & Operations: Mullins (Chair), Hawthorne, Friedle.

Rally & Events: Friedle (Chair), Patzer, Lower, Manley

Awards & Recognition: Lower (Chair), Nye, Patzer

Secretaryís Report

Deb Lower moved, seconded by Chuck Manley, approval of the minutes of the April board meeting. Motion carried.

Treasurerís Report

Brian Mullins thanked Rob Lentini and Ray Zimmerman for their guidance and support in transition to Treasurer position. His principal observations are that the organization is financially sound, it has strong operational controls, has good internal accounting controls, has sufficient cash reserves for near term operating needs, and the investment portfolio is continually monitored and new investments thoroughly analyzed prior to movement of any funds. Brian gave a statement of BMW MOA financial condition, revenue summary, operating expense summary, income and expense summary, and on the investment portfolio. Our investments have outperformed the market for the last three years, including the last six months of this year.

Objectives for the coming year are to stay the course but look for further financial control improvements, be sure that staff salaries and benefits are fair and competitive, be sure new budget continues to focus on membersí benefits, and to review the asset allocation of the investment portfolio and rebalance as necessary.

Executive Directorís Report

Ray Zimmerman presented the financial charts through June. Actual Income vs. Budget is ahead of projection and Cost of Sales and Other Expenses is slightly lower than budget, resulting in Net Income being ahead of budget. The office move cost approximately $6000 below budget. Nation Safe Drivers has presented new plans, which will provide more and better service for less cost to members. Tom Hudder of Rogers Townsend (a St. Louis firm) has given BMW MOA a pro bono offer that will result in a new marketing campaign over the next few months. An Open House event at the new office building will be held on September 28 with information forthcoming in the BMW Owners News and on the BMW MOA website.

Managing Editorís Report

Sandy Cohen reported that the magazine has been mailed on time. The 3-month page count is up to 120 pages, which has caused the ON staff to investigate a different binding method for the future. When the page count is routinely 120-128 pages, every issue will be perfect bound. This change will increase costs of publication. With the new advertising collection policy, staff is staying on top of aged receivables. Travel has consisted of the grand opening of BMW Motorcycles of Colorado Springs and a publications staff meeting in Trenton. BMW ON has been invited to the August intro of the R1200CL. The first annual Contributing Editorís Dinner was held in Belleville, Ontario during the rally with about 20 attending.

Advertising Directorís Report

Ted Moyer reported that ads under contract are up approximately $38,000 in 2002 over 2001, and he has some significant contacts for the future. Rally Program advertising was down, perhaps because vendor participation was down. The ad to editorial ratio is in the high 30% to 40% range, and is just below 50% if the Flea Market is included. This ratio remains constant with minimal fluctuation.

Rally Report

Don Faichney reported the latest attendance count at 5588. The vendors are doing well. Dennis Gage is covering the rally for his cable show with the coverage to be aired on September 24 or 26. The exact schedule will be published. The Canadian Sports Network is also covering the rally. The rally page on the BMW MOA website was getting 60,000 hits per day. One hundred twenty-five riders participated in the parade and the main street was lined with spectators. The rally has a good working relationship with the police and city officials with the Air Force base staff being very helpful.

BMW MOA Foundation Report

Brian Mullins moved, seconded by Larry Hawthorne, appointment of Deb Lower and Karol Patzer as liaisons to the Foundation from the BMW MOA board. Motion carried. Deb reported the Foundationís new officers, who were elected at the meeting held earlier in the week: Pam Dempster, President; David Mishalof, Vice President; Roger Wiles, Treasurer; Barb Morse and Voni Glaves, Secretary. New Trustees were also named at the meeting. Camp Trenton, the establishment of future scholarships, and the Ride Center were also discussed at the Foundation Trusteeís meeting.

Consumer Liaison

Rob Lentini will mail his reports to the board in the future. Rob explained his role as ombudsman. He has nine open complaints and six closed ones.

Don Hamblin set the date of the next board meeting as October 26 in St. Louis. The new board will come together at the Open House for a strategic planning session. Don thanked the volunteers who worked on the rally and kept it rolling.

Larry Hawthorne moved, seconded by Chuck Manley, to adjourn the meeting.


Respectfully submitted,

Marilyn Roberts, Recording Secretary

Approved by Deb Lower, Secretary

September 4, 2002