AMA News

AMA News

AMA's 1987 Budget

A preliminary budget was reviewed by the AMA Executive Council in January and again in April following a detailed examination and report by the AMA Finance Committee. Based on Finance Committee recommendations, a number of changes were made at the April Council meeting.

• The budget puts money up front for AMA's self-funded insurance program to help assure the basic $1.5 million of liability protection established by Council the prior September would not be eroded by routine, relatively minor claims. An amount of $120,000 was budgeted as an insurance "buffer" for this purpose.
• The action reflected a favorable six months' experience with the new program (about $2,000 in program operating costs expended) and the broad support for the major dues increase in 1987 to fund the insurance program.
• Although the budget assumed no membership growth for 1987, membership was running about 4% ahead of last year's growth rate, with over 100,000 members signed up by early April. It appears likely AMA income for 1987 will exceed the budgeted amount and membership may reach an all-time high near 125,000.
• The Council approved the Finance Committee recommendation to initiate two-year budgets linked to a five-year plan that sets AMA priorities and long-range goals. The Finance Committee began work on the 1988 budget in May, with preliminary review in the fall and final approval in January.
• The PR (Public Relations) portion of the expense section noted prior criticism of inadequate PR efforts and combined several PR-related elements in the 1987 expense plan.

It Had to Happen... (Noise)

After many years of limited action, AMA is taking a firm stand on noise reduction. At the April 25, 1987 Executive Council meeting, President Don Lowe led the Council in endorsing a proactive approach. Highlights:

• The Sound Committee, chaired by District IV VP Howard Crispin, is coordinating research on engine noise and noise-reduction measures.
• The effort seeks to involve all disciplines—Radio Control, Control Line and Free Flight—in noise reduction. Radio Control has taken the lead to date, but broader discipline participation is necessary.
• AMA’s effort parallels international moves (FAI restructuring its Noise Subcommittee to prioritize and broaden the issue).
• The Council will actively promote noise reduction and consider jurisdictional measures to encourage or require noise control where appropriate. An FAA-focused resolution endorsing noise reduction programs will be published prominently in Model Aviation and the National Newsletter.

Attendance

• President: Don Lowe, Altamonte Springs, FL
• Executive Vice President: Jim McNeill, Birmingham, AL
• Executive Director: John Worth, Fairfax, VA
• District Vice President: Don Krafft, Duxbury, MA
• VP‑II: John Byrne, Bayside, NY
• VP‑III: Dave Brown, Hamilton, OH
• VP‑IV: Howard Crispin, Charlottesville, VA
• VP‑V: Lee Webster, Manchester, TN
• VP‑VI: Jim Sears, Burgin, KY
• VP‑VII: Pete Waters, Northville, MI
• VP‑VIII: Johnny Clemens, Dallas, TX
• VP‑IX: Dick Crowley, Aurora, CO
• VP‑X: David Peltz, Chatsworth, CA
• VP‑XI: Ed McCollough, Portland, OR

Academy Executive Staff Present

• Bob Underwood, Technical Director
• Gisele Jackson, Comptroller
• Micheline Madison, Competition Department Director
• Geoff Styles, PR Director
• Bob Vojslavek, Administration Services Director
• Carl Wheeley, Editor & Publisher — Model Aviation
• Vince Mankowski, Nats General Manager
• Mike Woodfolk, Membership Department Director
• Carl Maroney, Special Services Director

Also present: Lynne Girdner (Assistant Comptroller), Jeff Troy (PR Assistant). Guests: Doug Holland, Mike Ingalls, and District IV members Lillian Worth and Barbara Krafft.

Minutes

A copy of the official minutes may be obtained upon request from AMA Headquarters and will be available approximately August 1. Minutes are official only after review; suggested changes or corrections may be made at the next Council meeting, scheduled for July 10, 1987.

Meeting Opening

The Executive Council meeting was called to order at 9:04 a.m., with President Don Lowe presiding. The President opened by expressing dissatisfaction with the tendency of some to expound negatively and controversially in print, reminding Academy officers to avoid actions or statements that create division or member confusion; matters of controversy should be aired in the magazine.

E.C. Council — Key Actions and Reports

Insurance and Foreign Coverage

The Council discussed foreign insurance coverage and Canada in particular:

• It was clarified that while liability coverage exists for accidents occurring worldwide, the protection applies only to AMA members who normally reside in the U.S. (including territories) or Canada, provided the original suit is filed within the U.S. There is no coverage for accidents by foreign AMA members litigated in the foreign country.
• A written explanation of foreign insurance coverage is to be mailed to AMA members living abroad.
• Regarding Canadian members, the Executive Director recommended limiting AMA insurance coverage for Canadians in the U.S. to those who are also AMA members, to reduce risk exposure.

Motions acted upon (as recorded):

• Effective October 1, 1987, AMA rescind its insurance policy covering Canadians while flying models in the U.S.A. — Approved.
• Establish a $10 affiliate membership for foreigners to obtain insurance coverage while flying in the U.S., provided they are members of their own national aero club — Approved.
• Discontinue the $1 foreign entrant fee at sanctioned contests, effective October 1, 1987 — Approved.
• Establish a liability cap of $100,000 for model car and boat activity, effective January 1, 1988 — Approved unanimously; the $100,000 limit to be per occurrence with a one million dollar aggregate — Approved.
• A motion to seek up to $80,000 for umbrella insurance coverage (one to two million dollars above current policy through March 31, 1988) was not approved.

The President appointed Dick Crowley to chair a new committee to study insurance coverage feasibility for commercial model flying activities.

Finance Committee and Budget Actions

Finance Committee Chair Dave Brown reported committee activity and recommendations; the Council acted on several items:

1. Establish a five-year financial plan with two-year budgeting; begin development of the 1988 budget — Approved unanimously.
2. Appropriate $120,000 for an insurance operating buffer (to be used before AMA's current $500,000 insurance) — Approved unanimously.
3. Appropriate $48,355 for capital purchases: Nats equipment; typesetting equipment for Model Aviation; and a new disk drive for the Accounting Department — Approved unanimously.
4. Transfer $250,000 from the Building Fund to the Mortgage Fund — Approved unanimously.
5. Approve the 1987 FAI budget of $76,500, including $6,000 for team uniforms and payment of an entry fee for an assistant team manager for F3A — Approved unanimously.
6. Accept the 1987 budget as presented and adjusted at the meeting — Approved.

Additional Finance Committee recommendations approved by consensus:

• Improve capital reporting.
• Reduce the retirement annuity to $40,000.
• Include Gisele Jackson and Carl Wheeley in the Key Man insurance policy.
• Purchase computers for the Executive Council in 1988 in place of microfiche.
• Review 1988 membership insurance regarding cost-effectiveness of providing fire/theft/accident/medical coverage.
• Add $28,000 to the budget for legal representation at Executive Council meetings.

Large Airplanes (IMAA Request)

The International Miniature Aircraft Association (IMAA) requested AMA raise its 5-lb weight limit to 100 lb with specified separation distances from spectators. After discussion about insurance and Specialist Interest Group status, the consensus was to maintain the current 5 lb limit, consistent with worldwide modeling practice. A motion to allow, on a one-time basis and under specified conditions, aircraft between 55 and 100 lb to fly at IMAA’s Converse, Indiana festival failed.

FAI Juries and Team Selection

• The Council reviewed and approved nominees for 1987 FAI event juries per standing rules.
• A Control Line (C/L) Aerobatics Team Selection Committee was established (C/L Aerobatics previously had no team selection committee) — Approved unanimously.

Contest Directors and Associate Vice Presidents

• The Council discussed transferring Contest Director (CD) application processing to HQ and whether CD applicants should be required to take a test.
• The President appointed a committee to review and, if necessary, rewrite the CD application and test: Johnny Clemens (chair), Don Krafft and Vince Mankowski.
• HQ was directed to prepare a draft of current Associate Vice President (AVP) duties and the amenities available to them to better utilize and expand AVP potential.

Headquarters Personnel Travel

• Noting increased requests for HQ staff participation at district events, by consensus the Council approved that each vice president may request the services of an HQ person once per year (in addition to normal HQ participation at trade shows). Travel cost implications remain a consideration.

Outgoing Officers

• Recognizing no formal mechanism to transfer office from outgoing to incoming officers, the Council approved budgeting one additional trip for departing Council members to attend the first Council meeting each year.

Council Agenda Items

• The deadline for submitting Executive Council meeting agenda items was reduced from six weeks to four weeks prior to a meeting. Time-critical items may be added at the start of a meeting.

Safety Code — Revision/Interpretation

Several motions regarding the Safety Code were discussed and approved:

• Add a sentence to the Radio Control section: If any code provision affects only radio control frequencies currently used by the FCC, it shall not be interpreted to expand the Safety Code to any frequency not currently allowed by the FCC — Approved.
• Change the "Note" in the General Section to read: "A model aircraft is defined as an aircraft designed to be flown without a human aboard." — Approved unanimously.
• Change the last sentence of number 5 in the General Section to read: "In any case, the maximum permissible takeoff weight of models is 55 lb." — Approved by majority.

Committee Reports and Miscellaneous Items

Special Item — RC Aerobatic Masters / Virginia Beach

Guest Mike Ingalls reported preparations for the RC Aerobatic Masters Tournament in the Virginia Beach area in June, promoted the region for Nats and other events, and offered to host the 1989 RC (combined) World Championships.

Nats Steering Committee

Recommendations (approved unanimously):

• Authorize purchase of a computer for the Nats General Manager for use in Nats operations.
• Provide matching funds up to $300 for a Special Interest Group representative attending the annual Nats planning meeting.
• Add B3 (without the Speed task) to the 1987 Nats unofficial competition events.
• Approve the site for the 1988 Nats.

Noise (Sound Committee)

• One of AMA's sound meter calibrators is being checked; sound meters will be used at the F3A Masters.
• The Noise Committee will look at noise control measures for Pylon events.
• Contest Boards have at times voted down noise/safety measures, so the Council may need to impose restraints in the future.
• An aircraft industry noise engineer has offered assistance with research; the Chairman was instructed to pursue the offer.
• The President proposed a resolution endorsing noise reduction programs for all model aircraft types to be published prominently.

Capital Equipment Budget Addition

• A reduced Special Services Department equipment budget of $35,000 was approved.

National Fun Fly / Convention

• A plan to pursue a National Fun Fly/Convention project, with a commitment from Reno in 1988, was approved by consensus to help encourage non-competitive activities.

Other Administrative Items

• The Council approved hosting a luncheon for the "Voyager" crew in connection with the National Aeronautic Association Collier Trophy dinner and paying associated costs for Council attendance, and to present Burt Rutan with the AMA Distinguished Service Award as previously approved.
• A new recognition item, the "Sunshine Award," was proposed by EVP Jim McNeill to be awarded annually for creativity.
• Redistricting discussion was broadened: the redistricting committee was instructed to explore alternate representation ideas (population-based, club representation, expanded AVP appointments) and report back.
• The First Flight Society membership and various event notices, contests and club reports were noted for publication and member awareness.

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A copy of the official minutes may be obtained from AMA Headquarters (available approximately August 1). Minutes are subject to review and possible amendment at the next Council meeting scheduled for July 10, 1987.

Transcribed from original scans by AI. Minor OCR errors may remain.