Document JNqkZBnG0aY1aQN34xdEmaL6O

i'II.'llJi'i::S OF THF A!.j:'JUAL }ili:~BERSlilP HEETING of the !!_~TIO~~ l!ATEHlALS ST.fu'1DAHDS INSTITUTE, INC. wecillesday and Thursday, June 18 and 19, 1986 at Sawgrass, Ponte Vedra Beach, Florida Abex Corporation 1\.l Ut:l Automoti.ve - Bendix KraKc ~y~te~s. Inc. CarlLd_e Corporation C~...:rt.i ~ l_ed CTi-!kes l;;:.lciJ-:_,lorai ne lh vision (Proxy from D. Emrick) Friction Di~is!on Products, Inc. Guardian, Cooper Industries HJ01 ci C<llitornia Corp., Krasne Division N<tturn Corpo::ation P. T. Hrake LLu_ur:~ Company }J. t(, Porter f:.!Jm)Jany, Inc. RJymark Corporation J\cJ_l.:FJ.ty Hanufacturing Co. Vir~inia Frl~tion Products, Inc. 1V1J:,.::-Li.ng llro.k.e block !lanufacturing, Inc. REPRESENTATIVES Robert E. Nelson Francis E. Messier James E. Rennett Arthur V. Moore Larry Hintman John A. DH1atteo Robert D. Conger Robert Foscaldo Ronald Randall Rita Grisham Stuart Comins, President Larry Belans B. Web Luttenberger Edward F. Eggert W. Max Sleeth, Treasurer Lee Burgess '!'lTlE.KS PI~ ES VNT .\1 Ued Automotive - Bendix Allied Automotive - Bendix Allied Automotive Bendix t\r:1ke Syst(~ms, Inc. CanadJan ~feul.llic .Brake <;,;narl:i .m Hctallic Brake Canpart~s Aul omrJtive International Frictjon Diviston Products Guardian, Looper Industries (Wagner) HKJ'1 of Cali foraL1 C0rp., Krasne Div. HK.H of: California Corp., Krasne Div. Nuturn Corporation Rt~ddaway 11anufacturing Co. H.'lrllood Lloyd, Counsellors at Law ?riction Materials Standards Institute Richard E. Fasteson Ron Hiskelley John Riopelle William F. Wood Hichael Beri Rick Carpenter Andy Gagnon William Carney John W. Kourik William Axelrod Steve Sleeth Donald Loftis F. William Barton, Vice Presidenl Russell A. Pepe, Counsel Edward W. Drislane, Secretary FMSI 01969 Mr. Cumins, Presidl-'nt, call ted ~ .. As the first order <)f bu:-:-iw_-~~.,, .Y 1:_-:tQ FH, June 18, 1986. J_.,; .uts "-;~<.,.;ct i.:.r '-'- ro.Ll caLl. The :::!:'cnt.:::ry ad.,ised that the :ni.n.Jtes (f the Nembership Hteeti.J.g of Jw:'2 lB :i1d l9, 193) :.ad b<'t:n JlstrlbLt d. !1 ':dS ~;uggc,sted tll<JL a reading of the mir:ut<::> \..'as not aecessary. Upon motion duly nrrt(!(~. seconded zmd unanimously passed, it '.vas: KESOL'JL:D: To accept the mi.nutes of tlte '1embership Mec~t:ing of June 18-1 '), 't 98) 'lS \,'Ti t:ten. Mr. Stuart Comins, PrPsil:ect p_r(~sented ids report. Refer to EXHIBIT 1. :1r. Comins noted certain items to be c:~}ven'd lat"'r inc].uding the stqJy of the fee formula, contingency pJanning for st:1fl'in.:; r.ilt: Institute, financial results, and the activities of the H0ard at its moeting in Harcb !386. In closing his report, Mr. Comins urged the Henbership to c0ntinue support L1f the Institute. Upon mot ion duly made, c>e:oad,.:d ar.d unanimon:-; Ly pas sed, i_ t o;~as: RESOLVED: To ar-ce:pt Ut:: i'nsiJent's ;?eport as written. HOAIJJ :)F JJlRECTt)RS ACTLVITIES The Secretary reported on JctLvitiL'o> of the Hoard of Directors since the June 1985 Meeting. Th.is reviews Buard <1ctions sine~ the report to the Hembership at the June 19, 1.986 M2eting. (NOTE: The St:cretary read t:hi'~ n:port \oihir:h had been prepared from pencil notes, and inadvertr>ntly failed to read the last page of his notes at th2 :~!eeLi.ntt, The full text i.s covered in this section of t:he !1liDJtea.) At the meeting of the 11~w Ho;nd of Dire<.:toTs follmd.ng the M.ember~hip 11eeting, the Board reelected Officers to serv~ through t~e 1985-86 fiscal. year: Stuart Comins, Pr-ctddf.n t F. William ~arton, Vice President 1,'. Nax Sl<c<.. th, Treasurer E. W. f:.--f_,,lane, Secretary By mail ballot, the Board voted to ~c::ept the name change on the Institute's records of Br1ssbestos Nanufactt,ring Company to HHC Corporation. In early 1986, the Board voted to term~tnate tl1e Hcmtlership of BMC Corporation and Cougar Automotive for failure to pay the ~embers hip Fees. (Both are i.n Chapter 11). FMSI 01970 A special meeting was called by ~he Board of Directors to address three items: (l) The Product Liability Insurance Pr-~blem; (2) SAE Cons:i.deration of Effectiveness Neasurements using th<~ Inertia Dynamo~et:e:; (3) A Ref'?Onse to EPA on its Pcoposals to Ban Asbestos Products. At chis meeting, the Board received input from Frank B. Hall representatives as weil as from Wyatt & Company (Actuaries). Additional input was recelved from Hr. Jac:: CarnEy 's consultants, Kamp Associates. In summary, reinsurance is not avai 1a!Jle for those <.Jith any asbestos exposure. Any insurance which might be available ould have an asbestos excJ usion. Most Members do not have serious liability prob1L'ms outsid'~ the asbestos area. Frank B. Hall and Wyatt were asked to give the Institute reports suggesting solutions. S'Jbs~quent reports indicated that the Institute and its Members would have to make s_erious commitments in time and money in order to establish a captive insurer. No ~ction was taken. Tl1e Board considered the SA.E Brake Effectiveness Task Force recommendations for an I:1ertia Dynamometer test for rating brake effectiveness, with the first product being brake blocks. The procedure would be based on testing a 16-1/2 x 7 Rockwell configuration with parts of the DOT 121 Air Brakt! Systems procedure. The Institute \vill n:c11i-cor this work and both give input to the Task Force and inform the Membership. The Board considered the EPA's proposals for the ban and eventual phase-out of asbestos as it concerns friction products. The Board asked Hr. Drislane and Mr. Riopelle to draft comments which would be consistent with earlier comments sent to OSHA on its propcsals and to EPA on the NRDC petition to ban asbestos in friction products. A response '.vas drafted and submitted to EPA. The Board Members, by t,;,lephone, supported the Secretary's actions in moving the Annual Meeting to Sawgrass in Florida after the Sandpiper Bay Resort breached their contract for our June 1986 Heeting. The remaining activities of the Board took place at their meeting on June 17, 1.986. At that meeting the Board approved the reports of Officers and Committee Chairmen. The Board accepted an application filed by Reinz Wisconsin Gasket for Licensee Membership in the Institute. The Board terminated the Regional Membership held by R & D Friction of Canada for failure to pay its dues. (R & D Frfction is in receivership.) In addition to considering the past due balances owed by three Mexican Regional Members (Pasta Clutch, Itapsa, Mex Bestos) and one Brazilian (COBREQ), and continuing serviee suspensions for past due accounts, the Board approved certain changes of status/name on Institute records for: Wagner Division, Cooper Industries, Guardian, Cooper Industries and H~1 of California, Corp., Krasne Division. ln revi~wing tbe Treasurer and Budget reports, the Board discussed the ratio of Retained Earnings and Budgeted Expenses for the year, and asked as to what would be excess accumulation of earnings per IRS for a Not-for-profit Corporation. It was stated that this ratio could exceed 3.1 without problems from IRS. The Secretary advised that he had just received a billing from former Legal Counsel Robert Gorman for $6,400 for alleged retainer, fees, and disbursements due for the 1982-83 period. The Secretary was asked to call Mr. Gorman and attempt compromise on this billing without confrontation. FMsr 01971 The Board approved rernair. i:~. ,: r"~ ;_ :- l '1\, ) t i- -~.. ~-~; :-m. ~;. o\- t nL 1 ~t~~ ~r-8 7 f l:::,c:iJ year. In addition, based ou d c;'.c.c;' ,q i::rlt.: ;nuL<ia al.d 'TI~n'-''-'r ;-:reduct line:', the Board approved a new catego:;, bfnuJii fc,. ')87-)~8. 'T'h_L,c; ':ill [Je i'llt .into efft~ct \vith the fee billing of Jui.y l, l '187. I'ltt new formula \viLl i1ave four categories: (1) Disc brake linings; (2) Drnn hra!- r;_n.;,_,g3: (3) Enrk<' .:JLl;cks; (t;) Clutch facings. This will add a disc b'l':"ake lining category ar~ci drop the ne;.;-unJ i.ned shoe category. Disc brake liniu,~s are <~UlTt:ntly report2d tmder tl1c btake linl:11;. ca.t:e- gory (drum and disc). It i~~ th.-, Board's intention that irt thf' first yea1 the change W'ill be "revenue r;,eutral." The Board discussed Member participation on Coll'L'Ui ttees and t!1e diffir:ul b.-"s in gathering product information. Some dj fficulties are attributed to the increase in imports, and intn,duction ,,f vehicles ::.ike Iveeo, HAN and the imports into domestic producer's lines. Tl;c; [nstitute wi.ll .::1rcularize tite Nembership indicating where it does not have pr(.du.:t intu:nu:'!.tion and 1-ras no contacts. Also the Institute will hallot the Hemb<:::ship to amend the Constitution to permit full Committee participation by Licensees in ac. attempt to broaden i.nformation gathering activities. As regards Director participation, tbe Board will ask the Secretary to request the resignatl.on of a Director \.,ftlO is .~Jt pa.rtiLlpa':inL: ln buard ac:tivi tics - meetings and ballots. The Board discussed the thn::e classes Jf 1)irectol:"s calJ ed for in the Constitution. It was noted that it w.'-l.S often :li ff.icu: t to have an activPly partie Lpating company represented in all three classes, pBrticularly ;vhen the Lnstit.1te is attempting to have Officers who are not ;1l.so Dirroctors. lt was noted that this balance in the classes should improve w:Lth the changes planned for the fee formula in 1987-88. In discussing the Data Sook and T<.,dmical Committee report, it \vas noted that the printer (Tweddle Litho Cn:npany) Gh'TlS the computET rro;.:;rmn fron: which tbe type was set for our last Data Books. The Directors revie~ved Hr. WowJ's t'e>port on activities of the Brake Performance Study Corr.mi ttee, ~'articularly the Anw Andc!nwn SAE Task Force recommendations for an Inertia machine procedure for rating brake blocks. ~t this point, the Secretary inJdvertently failed to read th::: rema~n~ng notes on Board activities at the Member:;hip ~,leetin5;. The balance of this report is presented below). After Mr. Riopelle's report on tile HeaJ.th and Environmental Affairs Conunittee, the Secretary was asked to circularize the Hembers vith copies of the NIOSH asbestos fibre counting procedure, Method 7400. 'J11e Secret:1ry \vas asked to attend the EPA hearing on its proposed ban and phdse 0ut of asbestos products. The Directors discussed the new OSHA regulation;:; \-lhicb w..:re reported by the media on June 13, 1986. No one at this time had full detalls on the regulations whidt were scheduled to be published in the FEDEl~L REGIS TEl{ on .Tune 20, 1986. On liability insurance, the Directors discussed the earlier consideration of forming a captive. Based on a lack of interest and a lack of liability losses in other than asbestos areas, as shown on the Kamp Associates survey, and on what appeared to be substantial costs for organizing a captive as illustrated by Wyatt Company (Actuaries), the Board decided to take no further action on the insurance question. FMSI 01972 As for the June meeting, the P.o:TrcJ :J..cidt:(! Lo l>J)k ~'3:rriotL 's Ca;ns[!);;ck Inn, Scottsdale, Arizona, based on Litcir d<lvt:rtlseJ $50 ;Jeoc n-'-t;ltt a,:corr~'11<>cati('DS wich other extras. The Secretary \olas asked to b0ok Camelback, but ~,old C':JH~rass d3 the alternate should there be any problem with the Camelback proposal. On Historical Sales, the Board asked that the figures for the first thne. six and nint. aonths periods of 1935 be restated without the quantities frcr1 tbe u:1e ~iember who did not report full year data in 1935. And lastly, tl1e Eoart.! dcc:irkd that spouses tvould be invited to all Institute social Pvents <lt the .f1ct: H.::etins; which are now open to the Nembership. This ~o1ould add the \-.'ednesd;:ty ni~:ilt reception and dinner to the events to which spouses would bt invited. TREASURER'S REPORT .::tr. W. Nax Sleeth, Treasurer, presented this report. Refer to EXHIBIT 3. In sununary, this r:=port projected an exces8 of income over expenses for the 1985-86 fiscal year of approximately $15,000. This figure may be adjusted for the tmexpected billing by former Legal Counsel of $6,400, referrt:d to earlier. Hr. Sleeth'::; report showed an income/expense statement, a balance sheet and a review of certain financial figures for a seven year period from fiscal 1979-80 through 1985-86. The Data shawed a strong financial position and that expenses were under budget and under control. Upon motion duly made, seconded and unanimously passed, it was: RESOL'v"ED: To accept the Treasurer's Report as written. ~ffiMBERSHIP COI1MITTEE REPORT Hs. l(ita Grisham, Chairman of the Membership Committee, presented this report. Please refer to EXHIBIT 2. Ms. Grisham reported on changes during the year where the Institute had a net loss of 1 Active Member, a net gain of 1 Regional Member and a gain of 2 Licensees. Two Active Members (U.S. Hembers) went into Chapter 11 proceedings during the year and were terminated as Members; Tappa Enterprises joined as an Ac[ive Member during the year. While losing Ferodo (Pty.) Limi. ted and Hint ex (S .A.) (Pty.) Limited of South Africa, the Institute added three Regionals: Fricciones Tecnicas y Maquinados of Mexico, Satisfied Brake Products of Canada, and Torrnos Frictiemateriaal, B.V. of the Netherlands. In addition, BLD Products and Lucas Industries joined as Licensees. As noted in the report on Board activities, Reinz Wisconsin Gasket was added as a Licensee on June 17, and the Board tenninated the R & D Friction Regional Hember- ship at the same meeting. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Membership Committee as written. FMS\ 01973 "'' Ihe Secretary rc,lil:~...;ed .~..-.:1r] i._:r (~t_~,-:l~-- !.t_,. 1qd --:~-~-_t_:""!!~S ~~1ken c:n tl:t.). s.Jbj~ct ,-::f produ..:.:t liability .insurance. ;'[,,~ pt-odul~l li.;lb.iLi.ty lnsuranc<: qu(:stior. and the suggestion t1iut the Institute spon:;or d c.Jpti_\. t.: i -~or,_:t :.-:'re c:;:s ..:u:;s:.:.~U enr.L]er 3t the Boarcl \Jf Dir~ct\)r:::> ~Ieeti.Pgt This ~1.1d been one. of r:.ht~ ~n.:ijr.~r '?~e~1da ite.mf' o.t a :-:i;;ec.ial meet- in~.. or tlH: Joard of Ji..;:ectors C>n Har-c'1 ll, lS'<G, At th:1t .nE.eting, a ?rank R. Hall rep"':'"esent~1tive ;_tr:J th.-_~ ~~--_:atr (::nr:p:nJy C\,~t 1J.r-JTic~~) i,.JPL'?. ~sked to f.i~Ie chi..: Institute bnc:Lgromtd cn poss i.ble cost3 tc. est<'lblish a captive. :wd to access the re.insurance market. At that nH"eting, Kamp i\S,.,L)CLJte<;, consuJ.tants h'i.red bv Fri,~tion I;ivision Products (Jack Cacley), inJic-l.t:'J t!JJ~ uulsidt l'l.! :lSt''-'St;;,; :"r'~"'' respondents tu a questionnaire were not experi.;2n;:ing ~;trni Fican!: ,_laims or lo";ses. Kamp had indicated that liab:Llity cvverage wiLh aslw:.;tn:3 inclll'ic.'d '~;lS not available. And, liability coverage, ev~?.n with :10 a:~n.:sros r:xr:.l.u:;:J,n, '"':l.:'3 not available as Insurers \.:rere skeptical of court int:l.'rpre.tatiuns on cover:1~e e.:<:clusions. Essentially, a reinsurance market (lvLS nut ~..-;:Lst where :.he ir::'"lr"d Las any asbestos exposure. Beyond thL-1, the survey l" 1l<VJ.:'r.1 .q:Jy :,~;n;::.:_1 re<opnse, (8 replies). Those that did respond di.d not have j,Js,;c~; aPd/or c.!:~:L;:s u~~,t :L.r,_, sign.i.fJcant. Nr. Robinson of Frc.uk r:. r1 .i.l.1 .,,J;J~'"''luea::Jy ',,-rure stating that establishing a cap- tive .,.ould take cnm::;Jf.t';ncllt ';nth in C:L;c a:1ci in meney. \.Jyatt presented a "business cast" exh1.b.i~,. lVllicil t.;;,::.:r ,_-n,tph<:tsizeJ ~.r-3.s baaed nn very preliminary assumptions. ThL::; "cdse ;,;tndy" w-:1f~ tc ,,,.l.nt at rn:~si.:)lc:> <'c.:.;ts \n ~"stabli;ch:ing a ca1Jtive asstmling 12 FHSI Members :.md iuO of t h i ; :1Elor:?rs '.Jr:r-e to participate. Based on \vhat are admi ~.tedly J:ou;_;,, dssu,;:pLl.<'ns, !:he annual !>H:mi um costs appeared prohibitive. Based on the Kamp input dt the th:>Pti.ng .mel tlk Fcank B. Hall/Hyatt reports, sub- sequt-.nt to th2 l1ectir-:g, :i0 rurtl;er ..1ction w:1s t,q]:en as regards J ial.lility insurance. The Dir<:>ctors at t.h.: Jmw 13 ~~t::E~_tn::'; d~clded tltev \vould not take further action on this subjeLc absent s~..Jmc "~t.::w development. One Hember took exc''-'Ption to that dec is Lon. H.e stated that even if Institute Members \vere not inlenst.ed, several of t:heir customers were interested. A Member asked if the !{embers hip ccul d lw surveyed again to de.terrnlne interest. An Officer stated t:hat while he h:J 1 supported sponsorship of a captivE:' insurance approach by the Institute ~arlier, he no longer f~lt it was feasible, and pointed to the money that Nr. Carney had spent with his consult.:1nts with the latter new indicating that accessing reinsurance markets was not feasible for any companies exposed in any way to asbestos. A Member pointed out that larger groups had attempted to sponsor similar captives, and had given up. He cited tL0 .iiuLomot.ive Secv::.re Industry Association (ASIA) and the Auton1otive. Parts RE.bu:i 1dcrs Acosoc.iation (APRA) as two groups who had backed off from the c.apti.rc approach. In actswer to a 'luestion, it was indicated that both organizations ll,1d included piirt.les in the wholesale distributor end who would be the equivalent of i'lcm!Krs' c1istomers. A Membe1: stated that while this qu.-::stion did not have to be resolved at this meeting, that the Members were as-king if the question could be resubmitted to the Hembership for their irpul. Any such survey oi Members' interests in the liability insurance problem would include input from their customers. It was pointed out that FMSI 01974 the survey would have to tH: ~'"~lt 1:~, t;1e pcrrly ""esponsible for insur:1nce at the ~!emb8 r company. '<} a shDw o hands, the Hembers indicated that tlley wished the Institute to bring t 1<e i1em>Jership up to date on the liability insurance question and to ask .::or their ba:;..lots as to proceeding further with a study on a captive. The Secretary \Jas dd.t::::ted to prepare a questionnaire on 1'1embers' (and their customers') flirther interest in a captive insurer, and a possible meeting on this subject for those in rtlre!C. ted. I?~llESTI1ENT ADVISORY COMMITTEE REPORT Hr. Barton, 8o11unittee Chairman, presented this report. Please refer to EXHIBIT 4. Hi:. Barton's n::po-:-;:: projett,~d investment balances at a little over $265,000 at ,hme 30, 1986, about a $17,000 increase over June 30, 1985. Also, investment income '"auld Le down about $~~.000 to slightly over $27,000 this year, based mostly on no si.gni fie ant capital f',a.im: on maturing Treasury Notes this year. The details on Ltv<st:clt'nt activity, past, present and projected were shown in the report. Projections fnr the coming fiscal year indicated that investment income would drop about $1,000 to approximately $26,000. This is based on the continuing drop in interest rates. Upon motion duly 'llade, sect'ndvd and unanimously passed, it was: RC:SOLVF:D: Io accept the report of the Investment Advisory Commit tee as writ ten. DATA BOCK AJ.JD TECHNICAL COMMITTEE REPORT The report on Data Book and Technical Committee activities was prepared by the :>ecretary. Please refer to EXHIBIT 8. I-lr. Hrislane noted tl:at t:his Committee has once again lost its Chairman. Mr. Gordon Smith 'JJho had chaired this Committee since 1983 is no longer with Bendix 3nd the Connnittee is currently without a Chairman. Mr. Drislane noted the recent chang~s in the Automotive Data Book including the consolidation in 1982, the change in cover color in 1984 and the fact that the i986 Automotive Data Book was set with computerized typesetting. ~is latter move facilitated up-dating the Catalog both at the Printer level and at the Institute Office 1hen new data j s being added. In addition, certain changes made in the 1986 Automotive Data Book were detailed. Two items of concern to e1e Members were resolved during 1985-86. The continued assignment of FMSI 4311J for an Eaton 16-1/2 x 7 block with an inside radius change \Jas reaffirmed. Eaton Brakes made an analysis of certain questions raised by our staying with the FMSI 4311J assignment. Also, the Institute commenced usage of a blocked series (FNSI 7800, 7900) for heavy duty disc brake linings. FMSI 01975 - '1 - Upon motion duly made, seconded and unanimous} v ;'as sed, .Lt was: RESOLVED: To accept the report of the Data Book and Technical Committee as written. A Director noted that the Institute's most important work is the gathering of pr:_;duct infor.nation on brake linings, brake shoes and clutch facings for vehic1i:!'' used in North America. At the Board Meeting, the Directors discussed this information-gathering and are asking the Membership to help. Many times a dlange 'dill cccu:r in the field which Hembers may know, but which is unknown co the Institute. i1embers should advise the Institute on any such change or proi;J.un, so that the corrected information can be published in bulletins to th~ ~1embers. In other cases, Members may develop information on certain brakes or clutches u:::ed on vehicles for which the Institute does not have information. This happens most often on import vehicles or on vehicles manufactured in North ~~erica by European vehicle manufacturers. Examples would be Iveco, MAN, Volvo Truck & Bus, Mercedes Commercial, etc. If aftermarket manufacturers are servicing these vehic~ es, the Institute. is asking for general lining dimensions or samples (which would be returned) and application data, even if fragmentary. The Institute is unable to get information from these vehicle manufacturers. A Member noted that the Institute would be interested in contacts at these vehicle manufacturers if known to the Members. The Secretary was asked to prepare a bulletin or questionnaire to the Membership on the person to contact at the Member firm when seeking product information of this type. fEE FORMULA COMMITTEE REPORT Mr. Messier, Chairman of the Fee Formula Crnmnittee presented his report. Refer to EXHIBIT 6. The Fee Formula Committee had been asked to consider changes in the Fee Formula that would include a separate fee category for disc brake linings. However, no action had been taken earlier in the year when the Institute gathered data on categories for the next fiscal year. Based on projections shown in the Budget Committee Report and the Investment Advisory Committee Report, it was recommended that the fee formula in effect for this past fiscal year be maintAined for the 1986-87 fiscal year. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To maintain the same Fee Formula in 1986-87 Fiscal Year that was in effect for the 1985-86 year. Active Members and Regionals with Active Member rights Regional Members - Individual Regional Members - Association Licensees Basic $1,150 1,600 2,600 600 Per Category $700 FMS\ 01976 As noted earlier, the Boa1~1 J.t:f~.~..Jv .. -:~ -[ ,i.~~'J fdJ~1,1u.ia ~or ~t-~~~ pt~rro~:~.::; to takt! ~ffec.t with the 1987-88 fj~;cctl y.:.:tr. ';,!:..':-= ,__ !;..; ,_,Jrr"nt ~unnula 1.1as (our c.ltcgor:ics, the 1987-88 formula will ad-:! a eatevct" f'ur disc hraLe i ~nLrt;:s :one] dnn1 ci'e catl:'gory for new unlined brake siwes. 1\s d.u;c !Jrake liPing~; are rww reported under the "Brake Linings" category aJ.onb l<'itL ,l.cum brake litdngs, this \.,rill 1.)(~r:c-1JC t\vo cat:e.gories in 1987-88. \.Jhile there will be additional catebories repurted, it is Lhe Directors' intent to have the change be "revenue neutral" in the b,'::;Lu~tnr year, based en investment income and expense budget consider:1tion8. The, Secretary '1-Jas directed to advise the ~1o?mbershi]> <)ll this change, :1nd to gath~'r Jata on the new categories when developing data for the Fee Formula '~ommittee for June 1987. Upon motion duly made, seconded and unanimcusly passed, it v:as: RESOLVED: LO accept the rtport of the Fee Formuta Committee as writt:en. A llember noted that the 1987-88 fee category change would t10r'' '-~venly distribute fee levels in future years. This would pemd t improved t:oupliance with the constitution 1s requJrement l'f t)o n:;e e! a;~f,es of Hembers. Based on an analysis of the Institute's t>Jenty-one Active ;-1emiJers, tbe ne\v fee classes would be distributed as follows: F0UT Three Two One Ui) (3) (2) (l) Ca tc gories: ~ategories: Categories: c. tt:gory: ~ }'terrbc~rs 5 Mc1nbers 8 Hembers 6 Hembers H . I ST O R J l : -A L SALES REPORTING The Secretarj prepared ,:md rea..l tLe report on the lHstorical Sales Reporting Program. Please ref<r to FXtliBlT 1:?. In the report, the Secretary listed the companies reporting for each quarter of calendar 1985. It was noted that one Member failed to report the full 12 months sales at year end, where that :aember had reported f,1r the first three, six and nine months periods. This reporting affected the disc brake sales reporting category only. At the earlier Board meeting, the Secretary was asked to have the Accountants provide a corrected report for the first three, stx and nine months periods without the disc brake sales for the Member \Jho failed to report for the full twelve month period. And further, he was directed to similarly have the quantities restated in the future where a Member fails to report for similar period as was the case in 1985. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report on historical sales reporting as written. FMSI 01977 ." I Hr. I~iouclle present.ed the repcr:: on .-::c:civities of t!1e Health and Environmental ,\.ffai.rs Committee. l{efer to EXHIBIT 9. ?\!r. !{J o;w Ue 's n:nort ~wted that ~he OSHA proposals on ashes tos in the workpJ acl.~ ,;-~re ne.ar celease. He notu:l that the report (written several ~veeks before the r:;(:cet'ng) \,I~S lJ;'"'' -i little l:1t:e on this subject, as OSHA announced tv the media '"n _J,me Ll tllat rlw r:.e.v OSHA standards \vould be published this week in the FEDERAL f\EbiSTE.it. (2\_,tual !J<lbllcatlon was on Friday, June 20). In \ii~; renort, ~!r. I~inn,llc noted particularly the proposed rules which the Environmental r>rotection A 1_~ency (EPA) had published in the FEDERAL REGISTER on January 29, 19R6, and cl1ei.r mcd'Li.ng to the fri.--:U.on products industry. At its March 1986 :l~e t:ing che 1\oarc! (' r Di. rectors outli!!ed connnen ts \vhich were to be drafted by Mr. luuptd1e and Dris.Lc:me md seat to EPA. 'D10se com:nents were circulated to the Boord, the Conm!i. ttes 1ud tc tegal Counsel, and were sent to the EPA on June 13, 1986. Tlte Sec1e> t:1ry advised that tlte full Membership would be receiving a copy of the Institute's c0mn2nts to EPA. Further, the Secret3ry wctci directed at the Board meeting to attend the EPA Hearings on LhC'se ;Jr>."'pno;a1~ \Jhh:h ure to lee held en July 15, 1986. An it<~rn of most concern to those attending the meeting was the release of the new OSHA St;uHLlrds f;Jr dshes tos exposure in the workplace. OSHA made its announcement to the media on friday, Jm:e 13. ~1embers were intereRted in effective dates, various significant ,-hanges i.n permissible levels, warning signs and labels, medi- cal survetllance, etc. Mr. Kourik had received a copy of the OSHA release to the media. ~e-.tain highlights of the release were read to the Membership. (The Secretary made <'Opics of this release and distributed them to the Membership at tbe start of tl:w Jun.~ 19 session). MB. \~risha.m hCJd called the Achestos l!1formation Association to get details on the new :.;tandard. Certain highlights of the new standard were discussed, but the full standard would not be published in the FEDERAL REGISTER until June 20. The effective date for t.he new s tanuard will be July 21, 1986. Effective dates for the engineering control and work practice requirements to reach the new permitted levels ~ill be July 20, 1988. In general, the new permitted exposure level is 0.2 fibers per cc. Respirators 1:1ay Lc u3ed to reach this level for drilling and grinding operations. However, other operations must attain these levels with work practice and engineering controls. Regulated areas must be defined in 150 days. And, the action level for certain standard requirements is set at 0.1 fibers per cc. I11e actual :3tandard as submitted by OSHA took over 900 pages (double spaced copy). It is understood that this will take over 170 pages in the FEDERAL REGISTER. There are six mandatory appcmdic0s with t'"-No non-mandatory. There are appendices applying to the brake repair shop (non-mandatory). It \vas noted that Nl'JSH Method 7400 for airborne asbestos fiber counting or its equivalent will be required by OSHA. OSHA will append NIOSH Method 7400 as the method for counting fibers. 111at or an equivalent method must be used for the FMSl 01978 - ll- count. r1s. Grisham has a copy P[ !HCSH P_:thnc.l 7<;00, .'1nd vill ::;end the Institute a c:opy so that it may be sent to the Membership. It ~..,as noted that this method should also be appended to the OSHA. Standards and should be included when copies of that Standard are sent to the Membership. H -i.s understood that the new warning label is much more drastic, including the words "Danger" and "Cancer Hazard," as compared to "Caution" and ''May Cause ~~L-rious Boriily Harm.'' On :1nother subject, a Hember noted that the "Right to know" Hazard Conununications regulations are being enforced. OSHA Inspectors are asking for proof of compliance and <.:hat Materials Safety Data Sheets are posted and workers are being instructed on possible hazards. U~on motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Health and Environmental Affairs Committee as written. NOMINATING COMMITTEE REPORT Mr. W. Max Sleeth, Chairman of the Nominating Committee, advised on current terms of the Directors and on its recommendation for nominating Directors to serve two year terms until June 1988. The Chairman noted that the following Directors were serving terms that will continue through June 30, 1987: Francis E. Messier, Allied Automotive - Bendix Larry Mintman, Certified Brakes, Lear Siegler Co. Arthur V. Moore, Carlisle Corporation, Motion Control Industries The Chairman, \vith the Conunittee support, recommended that the following be nominated to serve two year terms that run from July 1, 1986 to June 30, 1988: Robert E. Nelson, Abex Corporation Rita Grisham, Nuturn Corporation Stuart Comins, P. T. Brake Lining Co. Larry Belans, H. K. Porter Company The President asked that these names be placed in nomination to serve two year terms expiring on June 30, 1988. The President called for nominations from the floor. No additional nominations were made. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: That nominations for the Board of Directors be closed. The Secretary was directed to cast one ballot for the election of Mr. Robert E. Nelson, Ms. Rita Grisham, Mr. Stuart Comins and Mr. Larry Belans to the Board of Directors. The Secretary advised that the ballots had been so cast. Further, the Secretary advised that with the election of these three Directors, that the Board had the required seven Members. FMSI 01979 ~:r. \.omies advised tf1at ::tt the Pweti.1g of tLc T1ev Board of Directors the following il ru.::ers were elected to serve for the com:ing fiscal year: Mr. F. \Hlliam Barton, President t'r. W, t-bx Sleeth, \'ice President I'tr" Larry 1'<1intll'.an, Treasurer l:-ir. Edward W. Drislane, Secretary BUDGET COMMITTEE REPORT Hr. SJ~-~eLh, Ciw_i_:~nan of the Budget Cotmnittee, presented this report. Please n.otPr to EX'iiiHT ::>. This report recommended an Expense Hudget of $132,960 for 1986-87, an increase over the past year's Expensr> Budget of ;ibout 5/~. The report detailed line expense items wi 1:'1 ;;roj<:ctLons .i-L1r dte nming yea1:. TI1e largest items in the budget are salaries and related P'-'ns Lon and t~n.es. By Board action at its earlier meeting, the .s<i1.ar~~r.; lLm was increa:,.<:d by $1,000 bringing the final expense budget to $133,960. Upon ;:~ot ion duly made, s'.'corrded and unanimously passed, it was: RESOI.VEP: To accept the Rudget Conunittee report as written. PUBLIC RELATIONS CG:r-1MITTEE REPORT 't:;e ~),ccrvtary r;.;ad the report on Public Relations for this past year. Please refer to EXHIRIT ll. '..Jc \w.e 1Jot had :1 Public H.t:lat:LoilS Committee since Mr. Simon retired. The Secretarv prepared U1Js report. The only activity was the release to the trade press of a noti<:e on i.h!c' election of Officers at the June 1985 Meeting. H.r. BeL:ms of fcred to help the Secretary in circulating public relations releases to the automotive trade media. Upon motion duly made. seconded and unanimously passed, it was: RESOLVED: To acct>pt the report on Public Relations activities as written. INSTITUTE PENSION PROGRAMS The Secretary prepared the report on the Institute's pension plans. Please n:fer to E:X'HIBIT 10. The Institute has two plans: (1) The Simplified Employee Pension Plan (SEP-IRA) ior active employees \vhere the Institute contributes 15% of gross salary to employee IF..A's, and (2) The Trust which was established for Miss Duschek on January 1~ 1'130. FMSI 01980 The SEP-IRA arrangement j_s "J si~p], '~<':':-''-'" J;,,.,.;,,.,_. '"-'. it-.Jur: "'.c .--r.'J:i_;c_ paper '.York required for a q'ldlifled e,,pluy~.l..! p LaT1. ''i _,:-; i'cJc;._-i!t:'l'-' '"' ;.: ,.; u ~ ,, .. ![ ;J from a Trust to which the :::nstitute contribclteJ $:::'3,000 'n i 0 WJ. l.,: :.1:~ been paying Miss Duschek $550 per month and as of Dc::.c...;nber Ji., l9Et5 - .t :>.cUe ov~r .';)52,000 in assets on hand. TIH:! assets in the l'i)_Fd-e:L -~c:;st: .:1;, :.,_, r.-cur" .1 Lo Lile Institute upon Hiss Duschek's death. U1;on motion duly m;Jde, seconded and unanimously passed, it ,.,.,"': RESOLVED: To accept the report on Institute ?ensLon !'1 Fls as written. BRAKE PERFOR.:1ANCE STUDY CO:'-lMITTEE REPORT Hr. Bill Wocd, Chairman of the Brake Performance Study CoPJmittee, 1'''-<ntcd tll.is report. Please refer to EXHIBIT 7. t-1r. Wood discussed the meeting the Gouunitt.ee held in Octuher 1935 c<t'.u~rning .~dge coding of brake friction material. Jt is almost universally :.Jgn.'ed that th::: f'-v- isting edge code as developed in SAE J66l (Vehicle E<:juiv1~e'1L ):J.fdy Ccmmission Regulation V-3) is unsatisfactory. It \<Jas noted tbat t:l11-: 'l'nt..:h./':.'rc :l l..Fr P.r:;ke l~esearcb Group (TTBRG) had earlier contacted the Insti.tuce :md othets in se.:kin[; a better friction rating syst~n and sp<?.cificall.j a r<1ore pe1:manent l:in:ing identification. The TTBRG is a group formed by the ;\merican Trucking ,\ssociat i_._,ns, the Hotor Vehicle Hanufacturers Association and the Truck Trailer ;~!anuL1Lturers Assoc iation. While this group has no regulatory powers. it can pressure fri,:t:ion mar;;;ria1s manufacturers to provide them with better technical infomatlon ;~c \vhi.,::l to b;Jse lining selections. Hr. Wood discussed the work done by Hr. Arne Anderson's Task Force a:o.: re,~ard~; n:corrnnended practices J 1801 (Coding and Marking) and J !.802 (Brake Elcd. Ef ~ective ness Rating). Mr. Wood noted that there were several i.ssues to be addressed by tl:e Conuait tee <.1nd he planned to call a meeting in the early Fall: (l) ~'lonitoring of the Identifica- tions; (2) Providing input to the SAE Committees/Task Forces; (3) Investigate the impact of any final recommended practice completed by the SAE. Mr. Wood noted that the SAE Task Force (Arne Anderson) has fixed the fouadation brake for block testing as the Rockwell 16-1/2 x 7 Q Brake. Hhile there was some objection to any one brake, based on concerns on certaln smaller dt;"meter trailer brakes and on bus brakes, and the fact that a Rockwell brake '"as ciu.sen, this is the most popular size and style of brake used on a.i..r brake sysrtom:;. It iB probably more representative of block usage than any other brake. Mr. Wood also noted the "attributes" of brake lining ralled for in .. Bur<>..:w oi Motor Carrier Safety (BMCS) requirement: The brake lining on every motor vehicle shall be so constructed and installed as not to be subject to excessive fadi:tg and ,c:.r:lbhing and shall be adequate in thickness, ll'eans of attachm~nt, anl physical characteristics to provide for safe and reliable stopping of the motor vehicle. FMS\ 01981 Mr. Wood will ask the Cow,,,i_tr r_ ' In discussion Jf the 'JOrk ;Jy Lhc c','-1~ '.L'.-1"'~ r\,,,_:,~, j t '"'1,; .~':.k:erved that they .:1re now ccncentra<:ing efforts on a prcct,dure :_:n,l cDdlng h--r brJ\~ hlock!:;. W1en tf!is part of the assignrnent is co!npletc, chc 1'ask "orce will probably begin work on rating brake li Eings for passenger ::ar;: ."no l L?,!lt lrucks. A "'rctCJLF.r .~o,ruP.entt:d ''ll !:.he id.ent:i f~cJ.tinn .Jnd pennaneuc friction coo1ln.'; reccmn:endations in these draft:3 for :; c.otLLn1_; systeEt. Thl' JUH)l coding recor:mend.Jtion calls for a mac:hine-cut i.n the <>iJo:: of l:l1e hlock which ln<.hcates friction levels at difftrent temper,qtur<~ CL'lH1ttiq;~::; b:1sctl on an Tncrt:.i . l Dvn21mometcr tcs1~. T:1is coding will c0st money. both in fi_ -;tnr cm;t and in dirert 1'1bor and overh,~"ld. Tlw Jl~Ol sugg<!St:iun is expensive. ln :t\idition, t:i1is is only for permanent fr.lccion rating purposes. Tt d<)t'S t!Gt address rr;anuf.:ci,'Uu:~r, fonnu}a anJ riate identifi~ation. It is possible that the Lniustrv cou] ..1 c'1d up <..."Lth b.:_.th a milchine-cut friction code an:d an ink stamped manufactu~er/fc,ntmli:l i;ientific~!tion. A !'1eml:::er notc::d that an ::lAE K2l:ommendeJ Practice did not make this "requirement" a rule. That could only de.relup if Federal or State n:>::J,ulat1ons went to the SAE RecolliDlended Practice t0 regul:>te materials, or if user groups such as the American Trucking Association~; \.Jec~ to pressure sHppliers to provide these identifications. The market place rv-f ght 1"-' LJ.,_d 1.o1i ch til<' :;.1,1 a,-_J n<cw i._d.?.ntifications, but the industry ~''duld find lt J.i.i fL.-:llt if both ,systems \,f't'e ln use <Jt the same time. 11te Fleets may tell the br.:;ke block manuf.:;.ctt.n~:s what to clo, but there will be a cost for machineJ-in iJentificaUon heyand that of lnk--stamped identicication. The s1ggestion was made th<J.t .: o~'t dat<1 from the block manufacturer could influence ones choir:e of rating proccJ.urcs ano identif1cation. An alternate cost might be figured using the proposed Inertia Dynamometer fur testing (SAE .Jl802) with inkstamping on tbe I U. of tiH! b.lc.k. A Member questioned if t:his wab the Friction Nat2rials Standards Institute, why couldn't the Institute devcJ(p the stand:trd. The s,~c:retaxy replied noting that the "Standu.rds" in the Inst .L tui c 's name ha:-; caused all kinds of misunderstanding. The Institute 1s m..-->ce apprupriate n;w1e would be the !}rake U ning Manufacturers Association (BLMA) which was thf: name until 19L;8 when that as:>ociation was dissolved as a result of a Just-Lee Department anti-l:rust suit. The new association formed after brertL-up of l'\Uth v.ras the Clutch Faclng and Brake Lining Institute, which name was subsequently chauged to l'ciction -,'laterials Standards Institute. The Institute has no test equ.jpmmtt, nor f1eet vf cars for testing. The "Standards" in the name was probably a public relations ploy, but can probably be supported by the standard t~umbering system f<y-: friction materials configurations. Institute Committee:~ and indiv:LJuals, usually working with the SAE whtch drafts recommended practices, can influence standards. The SA adopted their Recommen- ded Practice J661 for fri::: ~~con r>wdtine test:in;..;, :wd that became the b<J.sis for various State st;:mdards with >np ..;l: from McntbP-rs as -....-ell as users. A 1--lember noted that if the T:!sk Force R("CoJmnend~;'d Practices Jl80l and Jl802 were to be approved by ~;AE and ~~t'l into the SAE H;mdbook, they would still not be requirements. The obligation to conform to .11801 and Jl802 could only be established if the State or Fc~deral Governcwnt_s were to issue regulati0ns based on these practices, or if tl1e customers insisted on supplier conformance to the regulations, and were willing to pay for this additional cost. The Committee will continue to follow any proposed SAE reeommended practices and give input where appropriate. FMSI 01982 Upon motion ,bly :ndde, secon(~C l J.rH.l uP ani-:-tons ly paBs<:d, it was: i'.ESULVY:D: To ~ccept the !:<>purt ,; ; the Brak.e Pe.rforman(:e Study Cormuittee a~.; hrrJ.tten. ANl'JUAL MEETING COUMI TTEE REPORT f,ic. Fd Li'grl: :1s Chairman of the Annual Meeting Committee presented this Committee n:;oY~. ''L'ase refer to EYJUBIT 13. Hr. Tc:ggen:' '' re~ort recow:nended a return to LaCosta in Carlsbad, California for 198:. A~, :n; :1 Ltl'raa ce, and for possible following year consideration, his report sug;;,o,s(rd 1,n'~'ti.c,ns on the Honterey Peninsula, California, about 120 miles south of San Flanr:i~.:c;. The r'"Di:OrL ,,1 :cy :::t:ggested consicleraUon of three locations that the Institute had used .in pn.'.vi.c:us years: Saw grass, The Homestead, and Innisbrook. The report not.'<i \..bat LL ,vas based 011 this recommendation t.hat Sm.'grass was contacted for the 1986 ;H;eti.n' ~tfter Sar;dpip::r Bay cancelled the 1986 meeting in Port St. Lucie. lt \v2c' n.~L>'-1 that U . r,; i.:.n."rd (';f l\irect:ors, ;necting on June 17, 1986, reviewed this report, but bctsed en cost c<msiderations had selected Harriott's Camelback Inn, ScottFdale, :\rlz.ona, as the.: >ite for the 1987 }1eeting, with Sm.;grass as the alternate should Catnelback ne 2; 1tiat:ions not work out. The Carn::iba;:l,:. deci>';ion was 'ftade based on a brochure offering accommodations for $50 pet r!i. 1~~''-, vj.i th other enticements such as free coffee breaks and free tennis. in blocking ''pace for both L2Gcs ta and the Monterey Peninsula, the Secretary had oeen 1dvi::o;::d of per night room costs in the $175 to $200 range. Mr. Eggert noted that j f t'tJ<c' riecLsion vJdS tL) be based on room charges, the Committee should be giv12n guJde linE'S a~: t:o what range the Institute will consider. Upon mU~.:rn duly made, seconded and unanimously passed, i t was: l\.E;-;uLVEP: To ac:.ept the report of the Annual Meeting Committee as written, with exception of the earlier Hoard deci- sion to select Narriott's Camelback Inn as the 1987 meeting site. It was noted that the Membership had not been advised of the change in structure of future Membership ~1.;;etings. ra~.ed on decisions made at the earlier Board of Directors t1eeting, the Ju..ne 1987 Heeting will invite spouses to attend Institute sFonsored social events now upen to the Membership. This will, in effect, open the ikception and Dinner schedu.!.ed for the Membership on Wednesday evening to spouse:.>. '}';,..., Iuc~sday evo;;ning reception is already open to spouses. OTHER BUSINESS The s._,:ret~n:y dibcussed t.he review by a special ad hoc committee to consider notching of the O.D. of clutch facings to facilitate identification of non-asbestos facings. Tltase involved were shm,,n the sample facing sent the Institute with the i80 notching. The Secretary will draft a report on this suggestion based on FMSI 01983 comments r2ceived from f1ci:~p. manll~-.1cturer '>Y11panie.s. :Jased on earlier discussinn noted ill the minutE:s o.l the D:'lta Book and Te-::hnical Committee work, and the insurance questio;r, the Institute has been asked to send r> qu~stionnaire to the Nembership. This questionnaire will include nuL .:mly qn'stioDs on .~:JthE:ring application data, but will indi<'3te serv:i.c.es ;-rovi.3"'1 ty the Institute and ask for input from the Membership on service needB of the ~k>bers. A Nember noted !.hat this questionnaire should ask for the n<imc of the pcr:wn in charge of that Hember's insurance coverage. ,\nother Hember noted the boo~ i et put out by the Institute a few ye.;:rs h-:1c.k .,hid: highlighted services to the H.embers, and included a history of tl1e Institute.. It was recommended that the Secretary up-date that booklet and either offer it to the Me:nben: oc cr.c.;kc an. additional distribution when revised. There being no other business brought to the attention of the HemLership, uron motion duly made, seconded and 1manL.aously passed, it was: P.ESOLVED: To adjourn. Adjourned June 19, 19H6, at 9:45 AM. E. W. IJrislane Secretary FMSI 01984