Document 9J3MYkxj8VRvbq9nZJrXjVJ6p

-' - ~ -'- .-.. - of the BOARD OF DIRECTORS Monday, June 19, 1989 at Sawgrass Country Club, Ponte Vedra,. Florida DIRECTORS PRESENT Robert E. Nelson Arthur V. Moore Larry Mintman Larry Belans Ron Randall Rita Grisham F. William Barton OTHERS PRESENT W. Max Sleeth, President Richard LeBlancq, Cou~sel Edward W. Drislane, Secretary Gilbert N. Laycock, Secretary William F. Wood (Chairman, Brake Performance Study Committee) Douglas A. Willsie (Chairman, Data Book & Technical Committee) Abex Corporation Friction Products Group Carlisle Corporation Motion Control Industries Certified Brakes Allied Signal, Inc. Friction Material Company, Inc. HKM of California, Corp. Nuturn Corporation Reddaway Manufacturing Co. HKM of California, Corp. Harwood Lloyd, Attorneys at Law Friction Material Standards Institute Friction Material Standards Institute Carlisle Corporation Motion Control Industries Aimco Division ITT Industries of Canada Mr. Sleeth, President, called the meeting to order at 8:35 A.M. MINUTES OF PREVIOUS MEETING The ~inutes of the previous meeting of the Board of Directors held Apri~ 5, 1989 had been distributed. It was suggested that the Secretary dispense with the reading of the minutes. Upon motion duly made, seconded and unani~ously a;-roved, :.t was: RESOLVED: To accept the minutes of the meeting of the Board of Directors of April 5, 1989 as written. FMSI 01006 ?~~SI~~~T'S ~?ORT '-~r. Sleeth, President, delivered iis re?ort. Please refer to E..'\HIBIT l in tie re?ort booklet. ~r. Sleeth noted the most significant thing to happen in his first year as ?resident was the retire~ent of Xr. Drislane and the ensuing search for a re- ?lacement. He expressed thanks to the Technical Committee Chairmen for the :.-ork of those colil!!litJ:ees dt1ring 1:he year. :ir. Sleeth commended :ir. Drislane J:l nis "usual excellent ;;erfor.!!ance in the :nanage:nent of the Institute", and ~elcomed :ir. Gil Laycock as the new Secretary. Cpon motion duly made, seconded and unanimously passed, it was: lESOL<:ED: To accec:Jt the ?resident's Report as 'Nritten. ~~e next ite~ on the agenda was the introduction of Gil Laycock. Since the Jirectors had :net Gil at the previous nights reception and were familiar 'Nith his q~alifications, this item wa~ passed over. ~ERSHIP CO~ITTEE ~is. Rita Grisham, Chairman of the :!embers hip Committee, Please refer to E..~IBIT 2 in the report booklet. presented this .. repor~. :is. Grisham noted that the Active :ie~bers remained unchanged at 22, but significant changes occurred in the Regional Membership from 29 to 34 with Licensees increasing from 20 to 22. T~e report detailed the changes. ~~ter the report ~as prepar i, there were two applications received at the In;titute Office for Regional ~e:nbership. The first was an application from Fox ?riction Manufacturing, Inc. of Mississauga, Ontario, Canada. This application ~ad been reviewed by the Membership Committee which recommended its acceptance. Copies of the Fox Friction application were distributed to the Board of Directors. Gpon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the application for Re?;ional :-lembership filed by Fox Friction Manufacturing, inc. of Mississauga, Ontario, Canada. :~e second application was from Fibre Friction Inc. of :!ontreal, Quebec, CaQada. -::-'.""lis application had also i:Jeen revie..-ed by tie :-!embershi? Committee, ,.,:hich ~ad ::ec::=ended its acceoc.1Qce. Copies of cie ?ibro ?::iction l!Jplicacicn ..-ere :istributed to t~e 3oard of Directors. ~oon notion duly made, seconded ar.d ~~a~inously ?assed, i : was: ?.ESOLVED: ::o acce:Jt cie a?p.i..icatio~ r.:;r ?.e~ional :te::J.bershi:J filed by ?ib::o ?riccion :nc. or ~ontreal, ~uebec, Canada. ":lave >?89. _ ::.:2.::::-=:: 1s<2d 2.::cu: -:.:cJ.l. 3:-2.~e =:1C.uscr:.2s vf :::orJal, .;uebec~ Lar:~i2 .::;~ ::::::-:-.:.:-.~ ::-.2:.::- =-~?~'C=.:--.r: ..;..:::.J.:.~:.::::. :n :;~ ::~.~ :or-::e: :i:-~:.:lia ?rict:.:J~ ?~.:::.c :..:1. FMSI 01007 ~i~~~es of the 3cari :c J:.rect:rs - J- . , . 'Cl / j ') / Walkerton, Virginia. They are making lining and pucks in the Walkerton ~tant. T:--.e basic question is ..Thether they are a Canadian manufacturer with a U .5. s'.:.bsidiary, or a U.S. manufacturer ..;ith a Canadian subsidiary. If Canadian they would remain as a Regional ~ember, with two categories. If U.S., they would be an Active Member, wit~ two categories. There would be no difference in the fee structure. The only difference would be eligibility to sene on the Board if they were a U.S. company. Regardin~ delinquent fees, the only member with billing outstanding of more then six months was ARTAZCOZ, S.A.I.C. of Argentina. They had been advised JY the Secretary that services were suspended and would be reviewed by the Board of Directors at the Annual Meeting for possible termination. On Thursday, June 15th their check was received via Federal Express bringing their account balance to zero. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the ~embership Committee Report as written. TREASURER'S REPORT ..~r. Larry Belans, Treasurer, read this report. Please refer to ErniBIT 3 in the report booklet. ~ The report projected an excess of income over ex?enses of about $6,700. There were some variances from budget, both avo able and unfavorable. But the two it2::2.3 that impacted the Balance Sheet most favorably were the reversal of the ~eserve for Environmental Affairs taking $29,200 into income and a substantial net from the sale.of Catalogs of almost $12,000. Both of these items combi~ed to offset the added expense of two Director's salaries, plus associated expense for 5 months. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Treasurer's leport as written. INVESTMENT ADVISORY COMMITTEE REPORT ~r. Art Moore, Chairman, read the Investment Advisory Committee report. ?:ease refer to LXHIBIT 4 in the report booklet. ~r. ~oore advised that total invest~ent assets at June 30, 1989 ~ere ?rojected ~~ about $264,000 versus $290,000 at June 30, 1988. The reduction Has pr:~arily brought about by the extra Director salary from February to June and associated costs. Interest receivables .;ere dow-n due to maturing of our higher :ncerest :reasury )lotes. ~?en ;notion duly made, seconded and unani~ously passed, it ~as: :U:SOLIJED: To accept the report of t!'le Invescmenc: Advisory Corr:mic:tee as -...;r:.~:~:J.. FMSI 01008 ~i~u:as of t~e 3oard Jf Jirectors ~eecing - -....:. 3L~GET COMMITTEE :-Ir. Larry Belans, Chair.:1an, prese:1ced the Budget Cot:mlitt'~e Report. ?lease refer co LXHIBIT 5 in the report booklet. T.1e Committee proposed an Expense Budget of $151,040 for the 1989-90 fiscal year. This is less than a 4% increase over the expense budget for the year now ending. Although the total budget figure is comparable to the previous year, there are ~ajor changes in certain items - eg. salaries decreased bv $8,000, rent increased ~y $12,800 (Lnless a Sub-lease arrangement can be made in Paramus). ?ension Expense decreased by $7,800. Other items showed less significant variations, most of which '"ere associated with the change in personnel and office move. Cpon motion duly made, seconded and unanimously passed, it was: R.ESOL'/ED: To 3.ccept the Budget Committee Report. FEE FO~~ COMMIT "EE REPORT ~r. R. E. Nelson, Chai~an of the Fee Formu_a Committee, presented his committee's repor~. Please refer to LXRIBIT 6 in the report booklet. .. ~r. Nelson noted that the formula for billing was restructed in 1987 and re~ viewed the structure for all of the types of membership. The income projection combined with Investment Income projected to within $1,000 of the proposed budget. Cpon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Fee Formula Committee Report as written. It was noted that, since the Fee Formula Committee Report was written and Income Projections made, two new membership applications had been received and were approved earlier in the meeting giving additional income of $3,700. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: It is the Board of Directors recommendation to the membership that the Fee Formula for fiscal year 1989-90 remain unchanged. ~OVE OF OFFICE FROM NP~ JERSEY TO CO~ECTICUT !~e discussion items on the agenda were: Time fra~e to move, rental of space i~ orConneccicut, and Sub-lease Paramus. ~r. Drislane commented that alt~ough t~ese items are related, they cannot be tied too Eir::U.y to each other. It would be better to establish a fi~ date Ec: the move and ~ork to that date. Nith respect :~ length of lease, t~ere ~as some discussion and it ~as generally agreed that :~a lease should be no more chan 5 years in length. FMSI 01009 .. !~ctes or t~e 3oari ci J~recccrs ~eet!~~ - J- Upon ~otion duly made, seconded and unanimously passed, it was: RESOLVED: The oove or the Institute Office from Paramus to Connecticut should take place on or about September 1, 1989, and the lease should be no more than 5 years in length. ~r. LeBlancq noted that when negotiating the lease we should attempt to get an option to renew at a set rate. ~r. Drislane suggested that the Board of Directors should authorize Gil Laycock to handle the negotiation for the Sub-lease of Paramus and the acquisition or o~fice space in Connecticut. Cpon motion duly made, s~conded and unanimously passed, it was: RESOLVED: The Board of Directors authorize Gil Laycock to negotiate for FMSI with res?ect to the Sub-lease of the Paramu~ Office and the acquisition of office space in Connecticut. PERSONAL COMPUTER AUTHORIZATION .. The Board of Directors in 1985 had originally approved an authorization of u~ to $5,000 for an IBM Personal Computer/Word Processor which has not been purchased. Gil Laycock advised that the Printer we have used for the last Catalog and Supplement has computer typesetting which uses the language called ASCII. 13~ equipment does not use ASCII. Although conversions are possible, they are not without problems .. The intent is to have a PC which will use the same language as the Printer and be able to put the Catalog and/or Supplement on discs, send the discs to the Printer, and feed directly to his computer. Additionally, there are many PC's on the market which will do the same work as an IBM, but are less expensive. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To authorize the expenditure of up to $5,000 for a personal Computer and peripherals without specifi- cation as to make or model. DATA BOOK ~~~ TECHNICAL COMMITTEE REPORT ~r. Doug Willsie, Chairman, presented this report. Please refer to ~~EIBIT 8 i~ the report booklet. ~~r. ~illsie noted chan~es ~n the roster of the Committee during the past year. ~~r. 3arry Swears of Abex 1s replaced by :1r. Jerry Shupe, and Gil LaycocK had :..eft to become Secretar~r of :::151. The Committee !llet on 1-iay 3, 1989 and several ~esolutions and decis:cns Here ~ade. o Gil Laycoc~ to re?l~ce 2d Drislane on the ad-hoc Comcit:ee that ~2cides i a ~acar~ai ~s o~g~nic or sami-~etallic. FMsr 01010 - ') - o Data Book color ro:3tion - Blue/Red/Green, etc. o Substituting "I-:01" for "Integrally :1olded", and line condensa- tion to save pages in Catalog. o Continue to assign ne'..,r "D" numbers to small changes in steel, but show a sketch with changes noted in text rather than another sketch. o Address hardware changes in disc assemblies by notation to "See Illustrations". o Commence gathering information on heavy-duty brake shoes and make number assigr~ents where application information is avail- able. o Draft ?reliminary system of FMSI numbers for motorcycle disc pads. o Rescind resolution made :1arch 28, 1984 calling for disc brake pads to be shown in Brake Block Identification Catalog. o All brake shoes starting with 611 will have "S" Prefix because of the potential confusion with disc pucks when shoes reach 700. o Use the same lining assignment for new disc assemblies that are up to .020" less in thickness than the existing otherwise identi- cal assignments. o Show total thickness on disc assemblies that have lining molded on both sides. Upon motion duly made, seconded and unanimously passed, it was: . RESOLVED: To accept the report of the Data Book and Technical Committee as written. A general discussion followed which concerned the support of the Institute with tec~nical information. For all types of friction material; drum brake linings, disc brake linings, clutch facings, and brake blocks. One Board member stated that if a manufacturer was making a part as original equipment, it was not necessary to submit a detailed drawing to make an assignment. A sketch of the part with nominal dimensions (No tolerances) and basic application information is sufficient. Import car disc brake assignments are made from sample parts with hand traced drawings and crudely measured dimensions. One Board member recalled that over the years we.have repeatedly requested the support of the membership, yet it seems to be falling off. It was noted that clutch facing assignments could be made with a general sketch consisting of O.D., I.D. thickness, number of holes, drill circle, hole spacing, drill size, counterbore size, through hole size and general application information. It was recommended that this subject be brought up at the membership meeting. 3~ZE P~R:O~~~CE STL~Y CO~~ITTEE R~PORT :rr. Bill Wood, Chairman, deli'Tered the Srake Perfor.nance Study Co=ittee t\eport. ?lease refer to EXHIBIT 7 in the report ~ooKlet. Cne meeting of the Brake Performance Study Corrrr:::mittee '..,ras held during the past year and dedicated to oroducing a draft oroposal for ~arking Procedure Jl80l. ~Jpies of the proposal and cover letter ~it~ suppocting statements were incl~ded i~ :he Report Booklet. Copies of the propo~ il and supporting statements have ]e-=.:1 for..;arded to :-fr. Randall ?atresh of 3-:r::.iLc, and ~!r. James R. Clari.< of :::aton, ~~a lre ~orki~g Jn the SAE llE0~/1302 ?ro~ed~res. FMSI 01011 .~ Ji:ec:crs ~ee:~~g .' Q- ' A Director commented that when organizations outside the friction industry pro?OSe or endorse requirements that the industry must live with, it can become very expensive for the industry. ~iliTSA (~ational Highway and Traffic Safety Administration) has just acknowledged receipt of the original SAE J1801/1802 Procedures and are studying them. A Director commented that it is a positive step that FMSI as a representative of the industry, is presenting input from the manufacturers. It was generally agreed that the original slotting precedure for J1801 would not provide that much value to the end user when the procedures get down to the final draft. A rational statement is included with the proposal and ~~TSA must evaluate the cost impact of any rule making. It was felt that the Institute should approach the block manufacturers with a request to get a cost estimate of both the slotting and embossing methods of permanently marking blocks. This infor~ation in condensed and consolidated form could become part of the rational_sta.tement. ~1r. Wood advised that SAE had asked if FMSI '.oi'Ould be interested to act as a repository for block identification and coding when a format of what type oi info~ation to be retained is estaQlished. At the Brake Performance Study Committee meeting it was agreed that the institute would be interested in submitting a bid to be a repository for the coding information for SAE Jl801. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Brake Performance St,Jdy Committee Report as written. HEALTH A_\fD E:!VIR001XENTAL AFFAIRS Cui!MITTEE ~is. Rita Grisham, 'Chairman, delivered this report. Please refer to EXHIBIT 9 in the report booklet. The Chairman's report was submitted as a summation of significant events during the past year. EPA Ban Proposal - In April 1988 the new support case from the agency was made available for public comment. FMSI as a body, did not comment (since comment had been made in 1986). However, member companies did submit comment and other interested groups. During September and October 1988, EPA advised industry that they intended to publish a Final Regulation before January 20, 1989. The draft of Final Regulation was submitted to the Office of Management and Budget on December 16, 1988. To date, six months have passed and OMB continues to assess and evaluate the draft regulation. The regulators z.re anticipating a "summer release". SESaAPS (01ational Emissions Standard for Hazardous Air Pollutants) - proposed C'.llemak.ing for the asbestos '-lESHAPS had been issued. It deals with control de:ices, fugitive emissions monitoring, record keeping and reporting for asbestos ~anufaccuring and fabricating operations. It is expected that the rule will be ~ssued in about a year. 2S~~ 29CFR, Part 1910.1000 Air Contaminants -Subpart Z -on January 19, 1989 :.ss1.:ed final rules and re-sulacions for "hundreds" of "Air Contam.i!lants". Overall, -~3 3~~stances are iisced (163 for the first ti=e and 9L have ~ew li~its ~hich ~=~ ~~~erall; :ower :h3n the Jld anes). FMSI 01012 :J: Directors - 3- . 'I~, :.989 Internationally, Ms. Grisham, noted existing rules in Austria, Denmark, Germany, ~orway, and Sweden. She also noted that in Japan a product is considered asbestos feee if it contains no more than 5% asbestos. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Health and Environmental Affairs Committee Report as written. ~~~AL ~ffiETING CO~lliiTTEE REPORT Mr. Stanley Stokes, Chairman, prepared this report. Please refer to EXHIBIT 12 in the repor~ booklet. The Committee had obtained video tapes of Hyatt Lake Tahoe and Indian River Plantation in Stuart, Florida. Both of the videos were viewed (courtesy of VCR and TV provided by Bill Barton). Additionally, Williamsburg, VA was discussed. The Committee recommended that next years meeting be held at Hyatt Lake Tahoe. It was agreed that the vote on wbere the meeting will be held would be by the new Board of Directors. This vote would take place at the Directors Meeting which follows the first half of the membership meeting. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Annual Meeting Committee Report as written. HISTORICAL SALES REPORTING The Secretary reported on the Historical Sales Program for the past year. Please refer to EXHIBIT 11 in the report booklet. The peri~d covered was calendar year 1988. A listing showing who reported for the four quatters of the year is part of the report. There were more "Ins and Outs" than in previous years, with ~hree members reporting for the first time. They were Dur~ax, Interfriction and Total Brake Industries. The report noted that Regional Members exporting to' the United States have been asked to participate. Upon motion duly made, secended and unanimously passed, it was: RESOLVED: To accept the report on Historical Sales Reporting as written. I~ISTITl'TE PENSION PLA.'iS The Secretary reported on the Institute Pension Plans. Please refer to L~HIBIT 10 in the report booklet. :hece ace two plans: (l) the Simplified Employee Pension Plan (SEP) for current ~~~-oyees, and (2) the Trust established for Harriet G. Duschek Nnich was funded JY 1n Institute contribution of 355,000 in 1980. FMSI 01013 - 9- ''-~ -' 1989 The SEP calls for 15% of eligible eoployee salaries to be contributed to an c~ ployee's IRA. The Duschek Trust pays ~iss Duschek $550 monthly, with assets as of Dece~ber 31, 1988 of $46,309. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report on Institute Pension Plans as written. At this point Mr. Drislane was excused from the meeting. ~r. Sleeth discussed the Plaque which was recommended by Art Moore, and put together by he and Ron Randall. Additionally, a bonus for ~r. Drislane was discussed which had also been discussed at the April 5th meeting of the Board, and the general agreement that Ed and Betty K. be invited back to next years meeting at Institute expense. Upon motions duly made, seconded and unanimously passed, it was: RESOLVED: To authorize the Secretary to pay approximately $400 from Institute funds for the Plaque. RESOLVED: To authorize the Secretary to draw a check payable to Edward W. Drislane in the amount of $4,500 Net from Institute funds. The Institute to absorb the FICA, withholding and SEP contributions. ' W RESOLVED: To invite Ed and Betty K. Drislane to next years annual meeting at Institute expense. There being no other business brought to the attention of the Board of Directors, and upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To adjourn. Adjourned at 11:50 AM. G. N. Laycock Secretary FMSI 01014