BMW MOA Board of Directors Meeting Open Session

St. Louis, MO

October 26, 2002

 

Present: President Don Hamblin; Vice President Larry Hawthorne; Secretary Deb Lower; Treasurer Brian Mullins; Directors Chuck Manley, Michael Friedle (also 2003 Rally Co-Chair), Rob Nye, Karol Patzer and Greg Feeler; Executive Director Ray Zimmerman; Managing Editor Sandy Cohen; Advertising Director Ted Moyer; Webmaster Ian Schmeisser; Bookkeeper Nancy Sulfstede; Ambassador Liaison Sue Rihn-Manke; 2002 Rally Chair Don Faichney; Recording Secretary Marilyn Roberts; Members Gerhard Pilz, Ambassadors George Glascock and Mae Glascock.

Don Hamblin convened the meeting at 11:15 am and entertained a motion from Chuck Manley, second by Michael Friedle to go into executive session. Motion carried.

The Board reconvened at 12:00 pm in open session. Don Hamblin reported on the strategic planning session held prior to the opening of the Board Meeting. The purpose of the meeting was for the Board, Executive Director and volunteer staff to review the strategic plan. The strategic plan guides the future planning for BMW MOA. The planning session ended earlier than anticipated, so to effectively use time the board convened in Executive Session for 45 minutes. The purpose of the executive session was to discuss potential rally site negotiations and review award nominations.

Don Hamblin went over the list of agenda items for the board meeting.

Secretary’s Report

Deb Lower made a motion to approve the July 2002 Board Minutes, Larry Hawthorne seconded the motion. Motion carried.

Deb Lower presented a summary of the board planning session held on September 28 before the BMW MOA Open House. Issues addressed at the session included board legal responsibilities, confidentiality of board communication, development of a list of background materials on BMW MOA organization for distribution to new board members, strategic planning steps, development of board meeting agendas, ambassador program, and proposed by-law revisions. Meeting was informational and no board actions were taken.

Deb Lower presented a summary of proposed changes to the Bylaws presented at the April board meeting. Changes are to remove obsolete language from elections section as board is now elected on staggered terms, nominations committee shall nominate at least two members as candidates for each position, wording changes in ballot distribution and receipt section. The proposed changes to the Bylaws will be printed in the February or March BMW Owners News for member comments to be received prior to the April (Spring) board meeting.

Treasurer’s Report

Brian Mullins presented a report on the financial status of BMW MOA based on the 9 months of the calendar year. Operating results are positive with revenue higher than expected and expenses lower than expected. Office move was financially painless. Balance Sheet shows high liquidity (cash on hand), slow pay on advertising receivables and the bear market has taken a heavy (paper loss) on portfolio. The preliminary 2003 Budget is ready for distribution and reflects a good forecast for next year. The budget was distributed to Board members.

Statement of Financial Condition reflects a $923,098 net worth at 9/30/02 that compares to $854,737 on 12/31/01. The statement is based on current assets, investments and other assets and current liabilities and deferred dues. Operating revenue is above budget ($227,000) primarily based on dues income and rally income. Operating expenses were under budget ($52,699). Rally expenses were higher than expected while staff expense, cost of sales, membership programs, and office and administrative expenses were lower than expected.

The Income (Operating Revenues) and Expense (Operating Expenses) Summary shows net operating income at $287,010 that is $279,603 over budget. The Security Unrealized Losses reflect a reduction in market value of $228,890. The result is the Portfolio’s net value as of October 23, 2002 is $948,948.

Current objectives are to review tax situation, monitor staff salaries and benefits to be sure they are fair and competitive and review the asset allocation of the investment portfolio and rebalance as necessary with consideration of engaging a professional manager.

Don Hamblin emphasized that Brian has just taken over as Treasurer in mid-July. Brian commended Rob Lentini for the great work he did as Treasurer. Board agreed.

Executive Director’s Report

Ray provided several charts to support the monthly detail behind the Treasurer’s report. Several contracts are coming up for renewal in first quarter of 2003 including Managing Editor, Advertising Manager, Artwork and Printing. Relocation expenses came in $5,000 under budget. BMW MOA Open House had 166 people in attendance with financial and staff support from BMW Motorrad (chips, soda and ice), Kingery Printing and staff (meat products and cooking), and Gateway Rider Jim Shaw donated pastries and helped with set-up. Staff worked very hard organize and support the event. Pictures are on the bmwmoa.org website. Members have been asking about next year’s Open House. Country store sales were very strong at rally and a record was set for sales. Color advertising in BMW ON reflects 66% increase in sales for one month in 2002 over the same month in 2001.

Ray reported on insurance coverage for BMW MOA volunteers. Individuals who are directed -- volunteers, contractors, board and staff – are covered by current policy.

Ray reported that member numbers have continued to grow. A new mailing procedure for the Anonymous book is saving approximately $3800 per year in mailing costs. The first draft of the 2003 budget is complete and was submitted to the Board. The August 24 media meeting resulted in 35 criteria that will help with the emergence of a new policy from the Communications and Marketing Committee. A new Nation Safe Driver towing program will offer more benefits for less money than the previous program; the new program began 15 October.

Managing Editor’s Report

Sandy Cohen reported that the magazine has been mailed on schedule. A 2003 editorial calendar was presented to the board. Page count is being monitored and perfect binding will likely begin with the January issue; November will be 120 pages and December is 112 pages. 128 pages is the maximum for saddle stitch binding. Sandy presented a variety of charts depicting ad revenue, page count, mailing costs, membership growth and profit. Eleven advertisers have been submitted to an outside collection agency for non-payment. Sandy attended the R1200CL intro and returned the F650CS; the R1200CL has also been returned. Although rally ad revenue was less than last year, the Rally Program was profitable. Returned RFQs for 2003 BMW Owners Anonymous book printing have been analyzed and submitted to Ray Zimmerman. The ad/editorial rate remains under 40% without Flea market and under 50% with the flea market.

Advertising Director’s Report

Ted Moyer reported 21 new advertisers for the issues October through December with ad revenue up compared to this time last year. He presented a chart depicting a monthly recap of sales. Most advertising contracts expire with the December issue but most are likely to renew. He has initiated contacts with all major automobile companies and financial institutions. Advertiser discounts have been standardized across the board.

Board Committee Reports

Communications and Marketing – The proposed Media Policy will be presented under New Business. Don Hamblin presented for appointment and ratification, Ian Schmeisser as Webmaster and the establishment of a new volunteer position, Webmaster Emeritus, which will be filled by Ted Verrill. Deb Lower moved, seconded by Michael Friedle, approval of the ratification of Ian Schmeisser as Webmaster and the establishment of the position of Webmaster Emeritus to be filled by Ted Verrill. Motion carried.

Rally and Events – The committee, chaired by Michael Friedle, is considering BMW MOA representation at events other than the international rally. Suggested were Laguna Seca, Vintage Motorcycle Days (VMD), Loudon, New Hampshire Bike Week, and Daytona Bike Week. The representation is for exposure via an information booth, coat and helmet check booth, etc. BMW MOA will be represented this winter at the Cycle World International Motorcycle Shows in St. Louis, Denver, New York and (possibly) Minneapolis; cost of the booths is being offset by an exchange for ad space in the BMW Owners News. Other ideas from the committee include events to encompass the increasingly divergent BMW scene: cruiser night rides, GS rides, etc. Also, there could be a standardized list of items to be shipped to the larger chartered club rallies.

Regarding the BMW MOA international rally, the entry fee may be raised by $5, which will be put back into the rally, not added to the bottom line. George Glascock suggested that fees could float depending on the cost of the rally facility. The "Must be present to win" policy, passed by the board at its January 2000 meeting, was read: "Attendees need not be present at the Awards Ceremony in order to win the motorcycle(s) purchased by BMW MOA. Other major door prize contributors have the discretion of setting policy on whether the winners of their prizes must be present to win." The policy needs to be publicized through the BMW MOA’s media, at the Door Prize area and at Registration.

Don Faichney reported a profit of $80,009.30 (U.S. funds) on the Trenton rally. This is not the final figure, as there are still funds to be paid out and deposits to be returned.

Michael Friedle reported on Charleston, West Virginia rally progress. He showed a video of the site, including approach, the Civic Center and the camping areas. All vendors will be inside the Civic Center except for the demo truck, which will be behind the Civic Center. Installs will be done inside with air conditioning near the roll-ins. The vendor fee will remain the same; vendors will have in-floor T1 lines, phone lines, electricity and sodium lighting. The Mobile Tradition display and the vintage display will be open to the public. One of the giveaway bikes at the 2003 rally will be purchased shortly. Dorm rooms will be available through the University at the camping area with the beer garden.

Awards and Recognition – Deb Lower reported that the committee has begun discussion of current award structures. Examples of perpetual plaques for the BMW MOA office honoring the retired Distinguished Service Award and Meritorious Service Award were presented for opinion. Karol Patzer reported that the 2002 Mileage Contest has grown 18% over last year with over 2000 riders. Steve Brunner, president of the Tarheel Travelers, will help Karol with the ending tabulations.

BMW MOA Foundation

Deb Lower and Karol Patzer are the appointed BMW MOA Board members to the BMW MOA Foundation Executive Committee. Deb called the Board’s attention to the BMW Owners News October issue summary of Camp Trenton, an MOAF-sponsored event. Rob Nye and Blake Smith will co-chair the 2003 Camp Charleston event. Chartered clubs may want to sponsor a young person for Camp Charleston. The international rally ERC courses, which are BMW MOA Foundation-sponsored, may be expanded in 2003 to include a women-only course taught by women. At its New Mexico event, the Curve Cowboys raised $5000 in unrestricted funds for the Foundation. BMW MOA Foundation officials have met with BMW Motorcycles, which is supportive of the Ride Center program. The Foundation will proceed with the Ride Center and has done initial work to determine the geographical center for BMW riders. A specific action item for the BMW MOA Foundation is being included in the BMW MOA strategic plan. Karol, Deb and Ray Z. will draft the language for board review at the next meeting.

Appointed Liaison Reports

At the request of an Ambassador, Ambassador Liaison Sue Rihn-Manke inquired about the possibility and funding for Ambassador certificates, which Ambassadors can hang on their walls to indicate that they are Ambassadors. Deb Lower moved, seconded by Karol Patzer to approve the production of 170 certificates at a cost of not more than $3.50 each. Motion carried. Sue indicated that she would produce the certificates on her computer on an as-requested basis. A letter from Don Hamblin and Ray Zimmerman will accompany each certificate; Sue will draft the letter. The full Board will receive copies of the Ambassador newsletter.

Deb Lower read the Consumer Liaison report submitted by Rob Lentini.

Sam Lepore did not submit a Club Coordinator report.

Webmaster Ian Schmeisser acknowledged the work that Ted Verrill did to establish the BMW MOA website. With hours selling at $500 and up, the value of his volunteer web work is worth hundreds of thousands of dollars. Ian also acknowledged Steve Huber, who is in the background but puts in a lot of hours on the site, and Steve Merrill who is a newcomer to the site. The site has had 1.5 million downloads and averages between 4,000 to 4,500 page downloads each day. The site delivers about 12GB of content each month. Traffic comes from 100 countries.

Recent work includes the removal of the Trenton rally information and photos because the site ran out of space, there are new pages and articles up, the club section has been updated, and Ambassador and club president groups have been established on Yahoo.

Ian cited the low cost of maintaining the website, which is too low at $250 per month. More funds are needed for improved infrastructure, enhanced security and expanded support services. The site needs redesign, feature upgrade, hosting upgrade, database integration, centralization of information assets, security and secure commerce. Don Hamblin tabled Ian’s proposals and assigned them to the Communications and Marketing Committee to come back with recommendations at the next Board meeting. Brian Mullins asked to be kept informed to incorporate the numbers into the 2003 budget. Ray Zimmerman stated that the office has had conversations with a credit card company regarding secure transactions; Ray will discuss it with Ian.

Member Issues and Proposals

Gerhard Pilz of the Northern Illinois BMW club proposed that the BMW MOA allocate $5000 for two BMW dealers to travel to the international rallies each year in order to provide mechanical service to rally-goers who have broken down. The dealers would provide mechanics, parts, etc., plus trailers to get disabled bikes to the shop. The dealers would charge their regular shop fee for service. He has contacted some dealers and two dealers would come to Charleston. Don Hamblin asked Michael Friedle, as the 2003 Rally Chair, and the Chair of the Rally and Events Committee to address the issue. Michael responded that two dealers did triage at Rhinebeck in 1999. The dealers advised rally-goers how to fix their bikes and if the bikes could not be fixed, they were taken by trailer to the dealership, fixed overnight and brought back to the rally grounds the next morning. Michael has arranged for the same service in Charleston in 2003 and indicated that the service should be more publicized. Michael felt that enticing dealers to the rally is remote and if dealers were paid, the other service vendors would also have to be paid. Karol Patzer suggested that it could be handled on a case-by-case basis and service could be taken into account during the rally site selection process. Deb Lower suggested a flag flying over the dealer area to help quickly identify the first aid for motorcycles site.

Board adjourned into Executive Session at 5 pm. Around 8 pm the Board reconvened in Open Session to address New Business items and reports from the Executive Session.

New Business:

Communications and Marketing Committee presented a Corporate Media Outlet Policy. The policy statement is attached to the minutes but it is policy governing all BMW MOA media outlets including, but not limited to, BMW ON, BMW MOA Website, Owners Anonymous and Country Store. Input was received from non-board members of the committee, including contractors and volunteer staff. Motion to approve the policy made by Larry Hawthorne, second by Rob Nye. Greg Feeler expressed concerns with provision, but he will support the version knowing revisions will probably occur. Motion passed.

Deb Lower reported the new Ambassadors appointed during the Executive Session: Ted Verrill, Bill and Sharon Hamilton, Rob Lentini, Larry (Magilla) Schwalenberg, Cheryl and Helmut Bernshausen.

Chuck Manley reported the rally site search team is on schedule finding locations for future years.

Next Board meeting will be February 1, 2003 in St. Louis.

Motion to adjourn by Michael Friedle, second by Greg Feeler. Motion carried. Meeting ended after 8 pm.

Respectfully submitted,

Marilyn Roberts, Recording Secretary

Approved

Deb Lower, BMW MOA Secretary

November 10, 2002

BMW MOA Corporate Media Outlet Policy

BMW Motorcycle Owners of America, Inc. (BMW MOA) media are solely owned by BMW MOA and are ultimately accountable to BMW MOA Board of Directors. This Policy shall govern all BMW MOA media outlets including, but not limited to, BMW ON, BMW MOA Website, BMW Owners Anonymous and Country Store.

The objectives of this Policy shall be:

  1. Communicate club information to the membership in a consistent, accurate and timely manner
  2. Foster the growth of our membership
  3. Generate revenues for BMW MOA as appropriate
  4. Provide our members with information about products and services available to them
  5. Promote a positive public image of BMW MOA
  6. Distribute information consistent with the views of BMW MOA Board of Directors

All member privileged information shall be protected and not distributed to the general public. Information contained in the BMW ON Regulars and the BMW Owners Anonymous shall be member privileged. Information found in any BMW MOA media outlet shall not contradict information found in any other BMW MOA media outlet.

The BMW MOA Website shall be informational in nature and shall not distribute advertising of vendor products or services in any form. Products and services offered directly by BMW MOA may from time to time appear on the Website.

Any BMW MOA media outlet may contain information complimentary to information found in other BMW MOA media outlets, consistent with this Policy. The BMW ON Managing Editor and BMW MOA Webmaster shall coordinate their efforts to assure the consistency and accuracy of information contained in their media and to insure compliance with this Policy. Any conflicts in this regard shall be resolved at the direction of BMW MOA’s Executive Director.

BMW MOA media outlets shall protect all copyrighted or BMW MOA proprietary materials including, but not limited to, logos, slogans, contributed articles and photographs. These materials shall not be released to outside media or to the general public without approval from the BMW MOA President or Executive Director, or in accordance with BMW MOA Bylaws.

Failure to comply with this Policy may result in disciplinary action by BMW MOA Board of Directors. This Policy may be amended from time to time by a majority vote of the BMW MOA Board of Directors.