Document KGjGZvnp6eRvDRkLjYdyz4LEr

FRICTION HATERIALS STAHDAlOS I~~~TFl."l::, UC., !~,\:.,'_r .:1>1 t<OUTE 4, PARM1US, ~J 07652 MINliTES OF THE AJ\NUAL nEHBERSHIP MEETING of the FRICTIOl~ HATElUALS ST!u'iDAI'J)S INSTITUTE, INC. wednesday and Thursday, June 18 and 19, 1986 at Sawgrass, Ponte Vedra Beach, Florida ACTIVE rvtr;,.mr:RS PRESENT Abcy Cvrporation il ll.i e~i Automotive - Bendix J\raKc ~:ystPrr1s, Inc. Carli:._; le Corporation t:crtifi.ed Crakes Lir~Lcv-.1or:line. Division (Proxy from D. Emrick) Friction Di~ls!on Products, Inc. Guardian. Cooper Industries Hl01 o! California Corp., Krasne Division T>iuturn Corporation P. T. 1:rak.e LL1i.1g Company H. K. Porter Compaily, Inc. 1{avmar k Corpu rat ion R<:o,l,l;nay Hanufacturing Co. Vlr~inia Friction Products, Inc. h'heeli.ng Brake Block Ilanufacturing, Inc. REPRESENTATIVES Robert E. Nelson Francis E. Messier James E. Bennett Arthur V. Moore Larry Mintman John A. DiMatteo 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 :)111Ei{S PRESENT Allied Automotive - Bendix Allied Automotive - Bendix Allied Automotive - Bendix ~rake Systems, Inc. Canadian Metallic Brake Canadian Metallic Brake Canparts Antomotive International Friction Division Products Guardian, Cooper Industries (Wagner) HKM of California Corp., Krasne Div. HKH of California Corp., Krasne Div. Nuturn Corporation Rr:ddaway Hanufacturing Co. Hanvood LJ.oyd, Counsellors at Law Friction Materials Standards Institute Richard E. Fasteson Ron Miskelley 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 President Russell A. Pepe, Counsel Edward W. Drislane, Secretary FMSI 01937 Mr. Comins, President~ called. t1: li;~:_ctl.f'l\:. t.r) !)r-~-r ~-it 1:30 ~.,11, June 18, 1986. As the first order of busine::;::;, Hr. Cmuns ;lSi<..0d tc)r "'- roll call. MINUTES 17 PREVIOUS ~EETI~G The 8ecretary ad'Tised that the m:i nutes of the Hembership M.;eting of June 18 and 19, 1985 had b\'en distributd. It 'N'<lS suggested that a reading of the minutes was not necessary. Upon motion duly m:lde, seconded and unanimously passed, it was: RESOLVED: To accept trJe minutes of the Hembership Meeting of June 18-19, 1985 as '<"fritten. PiillSI0ENT'S REPORT Mr. Stuart Comins, President pres en ted lds report. Refer to EXHIBIT 1. Mr. Comins noted certain items to be covered later including the study of the fee formula, contingency planning for staffing the Institute, financial results, and the activities of the Board at its meetin8 in riarch 1986. In closing his report, Mr. Comins urged the l'iembership to continue support of the Institute. Upon motion duly made, se,:oad..;d and unanL'llou::;iy passed, it was: RESOLVED: To arcept the ['resi:JenL 's Report as written. HOARD OF DIRECTORS ACTIVITIES The Secretary reported on activities of the Board of Directors since the June 1985 Meeting. This reviews Board actions since the report to the Membership at the June 19, 1986 Meeting. (NOTE: The Secretary read this report whicn had been prepared from pencil notes, and inadvertently failed to read the last page of his notes at the Meeting. The full text Ls covered in this section of the minutes.) At the meeting of the new Bodrd of Directors following the Member~hip Meeting, the Board reelected Officers to serve through the 1985-86 fiscal year: Stuart Comins, President F. William Barton, Vice President W. Hax Sleeth, Treasurer E. W. Drislane, Secretary By mail ballot, the Board voted to accept the name change on the Institute's records of Brassbestos :1anufacturing Company to BHC Corporation. In early 1986, the Board voted to terminate thP Hembership of BMC Corporation and Cougar Automotive for failure to' pay the Membership Fees. (Both are i.n Chapter 11). FMSI 01938 - 1- A special meeting was called by the Board of Directors to address three items: (1) The Product Liability Insurance Problem; (2) SAE Consideration of Effectiveness Measurements using the Inertia Dynamometer; (3) A Response to EPA on its Proposals to Ban Asbestos Products. At this meeting, the Board received input from Frank B. Hall representatives as well as from Wyatt & Company (Actuaries). Additional input was received from Mr. Jack Carney's consultants, Kamp Associates. In summary, reinsurance is not available for those with any asbestos exposure. Any insurance which might be available would have an asbestos exclusion. I-!ost Members do not have serious liability problems outside the asbestos area. Frank B. Hall and Wyatt were asked to give the Institute reports suggesting solutions. Subsequent reports indicated that the Institute and its Members would have to make s.erious commitments in time and money in order to establi.sh a captive insurer. No action was taken. TI1e Board considered the SAE Brake Effectiveness Task Force recommendations for an Inertia ~]namometer 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 Brake Systems procedure. The Institute \vill monitor 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 Mr. Drislane and Mr. Riopelle to draft comments which would be consistent with earlier comments sent to OSHA on its proposals and to EPA on the NRDC petition to ban asbestos in friction products. A response was drafted and submitted to EPA. The Board Members, by telephone, 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, 1986. 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 Fr~ction 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 service 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 HKM of California, Corp., Krasne Division. In reviewing the 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. fMS\ 0'\939 - :J ~- The Board approved rema1.n~ng ..rlth tL,~ !'Jk)-'3ti F:~e i"rn-muld. for the 19H6-87 fiscal year. In addition, based on a s1:udy tlf the formula and member product lines, the Board approved a new category for;nuJa for 1987-88. This ~A'ill he put into effect with the fee billing of July 1, 1987. The new formula will have four categories: (1) Disc brake linings; (2) Drum brake linings; (3) Brake .Blvcks; (4) Clutch facings. This will add a disc brake lining category ru1d drop the new-unlined shoe category. Disc brake linings are currently reported undt'r the brake lining category (drum and disc). It is the Board's intention that in the first year the change will be "revenue neutral." The Board discussed Member partieipation on Committees and U1.e difficulties in gathering product information. Some oJfficulties are attributed to the increase in imports, and introduction of vehicles like Iveco, HAN and tl1e irr>ports int.:> domestic producer's lines. The Institute will circularize the Membership indicating where it does not have product information and has no contacts. Also the Institute will ballot the: Membership to <mend the Constitution to permit full Committee participation by Licensees in an. attempt to broaden information gathering activities. As regards Director participation, the Board will ask the Secretary to request the resignation of a Director who js not participating in board acthrities - meetings and ballots. The Board discussed the three classes of DirEctors called for in the Constitution. It was noted that it was often rUffi.cult to have an actively participating company represented in all three classes, particularly when the Institute is attempting to have Officers who are not also Direc.tors. It was noted that this balance in the classes should improve with tbe changes planned for the fee formula in 1987-88. In discussing the Data Book and Technical Committee report, it tvas noted that the printer (Tweddle Litho Company) owns the computer program from which the type was set for our last Data Books. The Directors revieNed Mr. Wood's report on activities of the Brake Performance Study Committee, particularly the Arne And.:rson SAE Task Force recommendations for an Inertia machine procedure for rating brake blocks. ~t this point, the Secretary inadvertently failed to read the remaining notes on Board activities at the Membership Meeting. The balance of this report is presented below). After Mr. Riopelle'sreport on the Health and Environmental Affairs Committee, the Secretary was asked to circularize the Members with copies of the NIOSH asbestos fibre counting procedure, Hethod 7400. The Secretary was asked to attend the EPA hearing on its proposed ban and phase out of asbestos products. The Directors discussed the new OSHA regulations which were reported by the media on June 13, 1986. No one at this time had full details on the regulations which were scheduled to be published in the FEDERAL REGISTER on June 20, 1986. On liability insurance, the Directors discussed the earHer 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 01940 - "- As for the June meeting, the Board decided to book Marriott's Carn~lback Inn. Scottsdale, Arizona, based on their advertised $.50 per nigltt accommodations with other extras. The Secretary was asked to b0ok Camelback, but hold Sawgrass as the alternate should there be any problem with the Camelback proposal. On Historical Sales, the Board asked that the figures for the first thrte. six and nine: months periods of 1985 be restated without the quantities frcrn the o:1e Uernber who did not report full year data in 1985. And lastly, the .Soard decid~d that spouses would be invited to all Institute social events at the June I1eeting which are now open to the Nembership. This would add the Wednesday night reception and dinner to the events to which spouses would be invited. TREASURER'S P~PORT :1r. W. Nax Sleeth, Treasurer, presented this report. Refer to EXHIBIT 3. In summary, this report projected an excess of income over expenses for the 1985-86 fiscal year of approximately $15,000. This figure may be adjusted for the unexpected billing by former Legal Counsel of $6,400, referred to earlier. Hr. Sleeth's 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 showed a strong financial position and that expenses were under budget and under control. Upon motion duly made, seconded and unanimously passed, it was: RESOLv~D: To accept the Treasurer's Report as written. }lliMBERSHIP C011MITTEE REPORT Ms. Rita Grisham, Chairman of the Membership Committee, presented this report. Please refer to EXHIBIT 2. l'ls. 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. Members) went into Chapter 11 proceedings during the year and were terminated as Members; Tappa Enterprises joined as an Acfive Member during the year. While losing Ferodo (Pty.) Limited and Mintex (S.A.)(Pty.) Limited of South Africa, the Institute added three Regionals: Fricciones Tecnicas y Maquinados of Mexico, Satisfied Brake Products of Canada, and Tormos Fricti.emateriaal, 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 terminated the R & D Friction Regional Member- 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. FMSI 01941 The Secretary reviewed e:1rli<'r dh:i.:7.LJll.J .111d ,;,__~t,Lons t::Jken on the suhject of product liability insurance. The product liability insurance question and the suggestion that the Institute sponsor .:1 Cdptivt.: ;.,SelLer );,:ere ci_scu:3S<.'d earlier at the Board of Directors Heeting. This had been one of the major Jgenda items at a special meetln;?, of the Board o[ Directors l~n Ma-::-ch 11, 1986. At that meeting, a Frank B. Ha.il represcnt:Jtive and the \.Jyatt Company (Act'.laTies) were asked to r,ive ~he Institute background on possible costs to establish a captive and to access the reinsurance market. At that rn2eting, Kamp AssocL:Jtes, consultants hiTed by Friction Division Products (Jack Carney), indicated t!aat outside the asbestos area, respondents to a questionnaire were not experiencing ~;if~nificant claims or los3es. Kamp had indicated that liability coverage wit:h asbestos included r.;ras not available. And, liability coverage, even with an as b0s tos exelm> L.>n, was not available as insurers were skeptical of court interpretations on coverage exclusions. Essentially, a reinsurance market does not r::xist where the insured has any asbestos exposure. Beyond this, the survey sho.1ed '-'I;ly small response (8 replies). Those that did respond did not have L:s;;es and/or claim.s tlat were significant. Mr. Robinson of Frank B. Hall subsequently wrote stating that establishing a captive would take connr,it.tmcnt both in tir.1e and tn money. Wyatt presented a ''business case" exhibit, whi.cll t;1c:y unpLasized was based on very preliminary assumptions. This "case study" was t<Y pcint at p;ssible cr.sts in establishing a captive assuming 12 H!Sl l1embers and 100 of their customers were to participate. Based on what are admittedly rough assumptions, the annual premiUIII costs appeared prohibitive. Based on the I<".amp l.nput at tbe Heev:.ng and the Frank B. Hall/Wyatt reports, subsequ.:.nt to the l1et>ting, no further 3Cti on was taken as regards liability insurance. The Directors at the June 18 Heeting decided they would not take further action on this subject absent some ne..r development. One Hember took excc:ption to that de.::tsion. He stated that even if Institute Members were not interested, St:\tcraL of their customers were interested. A Member asked if the l1embersl<ip could be surveyed again to determine interest. An Officer stated that while h8 had supported sponsorship of a captive insurance approach by the Institute earlier, he no longer f.;;lt it was feasible, and pointed to the money that Mr. Carney had sper:l >-lith his consultants with the latter now 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 the Automotive Service Industry Association (ASIA) and the Automotive Parts Rebuildcn> Association (:\PRA) as two groups who had backed off from the captive approach. In answer to a '1uestion, it was indicated that both organizations had included parties in the wholesale distributor end who would be the equivalent of Members' customeTs. A Member stated that while this question did not have to be resolved at this meeting, that the Members were asking if the question could be resubmitted to the Membership for their input.. Any such survey of Members' interests in the liability insurance problem would include input from their customers. It was pointed out that FMS\ 01942 - 7- the survey would have to b!o' sPnt to the p<:rty responsible for insurance at the Nember company. By a show of hands, the Members indicated that t'.1ey wished the Institute to bring the Membership up to date on the liability insuran<:e question and to ask for their ballots as to proceeding further with a study on a captive. The Secretary was cl.1rected to prepare a questionnaire on Uembers' (and their customers') further ia!:eres~ in a c.:1ptive insurer, and a possible meeting on this subject fer those interested. I~~ESTMENT ADVISORY COMMITTEE REPORT Mr. Barton, Co~~ittee Chairman, presented this report. Please refer to EXHIBIT 4. MI. Barton's report projected investment balances at a little over $265,000 at .Tune 30, 1986, about a $17,000 increase over June 30, 1985. Also, investment income ~..rould be down about $2,000 to slightly over $27,000 this year, based mostly on no significant capital l:',ains on maturing Treasury Notes this year. Tite details on i;.tvestment activity, past, present and projected were shown in the report. Projections for the corning 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 made, seconded and unaniJIDusly passed, it was: RESOLVED: To accept the report of the Investment Advisory Committee as written. DATA BOOK AND TEOINICAL COMMITTEE REPORT The report on Data Book and Technical Committee activities was prepared by the Secretary. Please refer to EXHIBIT 8. Hr. Drislane noted that this Committee has once again lost its Chairman. Mr. Gordon Smith who had chaired this Committee since l983.is no longer with Bendix and the Committee is currently without a Chairman. Mr. Drislane noted the recent changes in the Automotive Data Book including the consolidation in 1982, the change in cover color in 1984 and the fact that the 1986 Automotive Data Book was set with computerized typesetting. This latter move facilitated up-dating the Catalog both at the Printer level and at the Institute Office when new data is being added. In addition, certain changes made in the 1986 Automotive Data Book were detailed. Two items of concern to the 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 was reaffirmed. Eaton Brakes made an analysis of certain questions raised by our staying with the FMSI 431LJ assignment. Also, the Institute commenced usage of a blocked series (FHSI 7800, 7900) for heavy duty disc brake linings. FMSI 01943 - 8- Upon motion duly made, secvnded and ,_manimous1 y passed, Lt wa~.;: RESOLVED: To accept the report ::of the Data Rook and Technical Committee as written. A Director noted that the Institute's most important work is the gathering of product information on brake linings, brake shoes and clutch facings for vehicles used in ~orth A.'llerica. At the Board Meeting, the Direct_ors discussed this information-gathering and are asking the Membership to help. Many times a char..ge will occur in the field which Members may know, but which is unknown to the Institute. Members should advise the Institute on any such change or p robJ.ou, s0 that the corrected information can be published in bulletins to the Members. In othe.r_cases, Members may develop information on certain brakes or clutches w~ed on vehicles for which the Institute does not have information. This happt:ns most often on import vehicles or on vehicles manufactured in North America by European vehicle manufacturers. Examples would be Iveco, 11AN, Volvo Truck & Bus, Mercedes Commercial, etc. If aftermarket manufacturers are servicing these vehicles, 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 COMMI'ITEE REPORT Mr. Messier, Chairman of the Fee Formula Committee 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 tlte 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 Meniliers - Association Licensees Basic $1,150 1,600 2,600 600 Per Category $700 FMSI 01944 As noted earlier, the Board appr<Jvui 't ~W'"" L:JnHula Lor fee ;luq;ost':~ !:o take effect with the 1987-88 fiscal year. WJ:._re the currtnt form:1lct has four categvries, the 1987-88 formula will add a categoty fur rUse hrake lin~ngs Dncl dr:oJ> the category for new unlined brake shoes. As disc brake lining::; are now reported under the "Brake Linings" category along \''i th drum brake linings, thi .; "~>.ril1. :-,,~~orne two cr~te gories in 1987-88. While there v.dll ne additional categories reported, it is the Directors' intent to have the change be "revenue neutral" in the b,~ginninp: year, based en investment income and expense budget considerations. Tiw Secretary was directed to advise the Membership on this change, and to gather .lata on the new categories \vhen developing dHta f01: tile Fee Formula Committee for June 1987. Upon motion duly made, seconded and unanimously passed, it wa::;: RESOLVED: To accept the report of the Fee Formula Commit tee as ~vri t ten . A Hember noted that the 1987-88 fe~ category c:1ange would more evenly distribute fee levels in future years. This would permit improv0d ...:ompliance with the constitution's requirement of thrEe classes of Members. Based on an analysis of the Institute's twenty-one Active Mecnbers. the new fee classes would be distributed as follows: Four Three Two One (4) (3) (2) (l) Categories: Categories: Categories: Category: 2 ME-mbers 5 M.cmbers 8 Nembers 6 t-1embers HISTORICAL SALES REPORTING The Secretary prepared and read tLe report on the Historical Sales Reporting Program. Please refer to EXHIBIT 12. In the report, the Secretary listed the c.ompanies 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 Member had repcrted for 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. six and nine months periods without the disc brake sales for the Member who 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 unanimo~sly passed, i t was: RESOLVED: To accept the report on historical sales reporting as written. FMS' 01945 - J() - HEALTH AND ENVIRI'"NHENTAL AFFAIH.S C0~1NITTEE REPORT Hr. Riopelle presented the report on activit.ies of t!"!e Health and Environmental /\[fairs Committee. Refer to EXHIBIT 9. Hr. !licpelle 's report :1oted that the OSHA proposals on asbestos in the workplace were near release. He noted that the report (written several weeks before the r:1eet.:..ng) 1'-'3S now a l.ittle late on this subject, as OSHA announced to the media on June 1.3 that the new OStiA standards would be published this week in the FEDERAL ~GI;)T1~R. (Actual publication was on Friday, June 20). ln his report, Mr. Riopelle noted particularly the proposed rules which the Environmental Protection Agency (EPA) had published in the FEDERAL REGISTER on January 29, 1986, and their meaning to the friction products industry. At its March 1986 ~i~eting the Board of Directors outlined comments which were to be drafted by Mr. Riopelle and Drislane and sent to EPA. Those comments were circulated to the Board, the Committee and to Legal Counsel, and were sent to the EPA on June 13, 1986. The Secretary advi.sed that the full Membership would be receiving a copy of the Institute's comments to EPA. Further, the Secretary was directed at the Board meeting to attend the EPA Hearings on tl-tc<>e proposals which are to be held on July 15, 1986. An item of most concern to those attending the meeting was the release of the new OSHA Standards for asbestos exposure in the workplace. OSHA made its announcement to the media on Friday, June 13. Members were interested in effective dates, various significant changes in permissible levels, warning signs and labels, medical surveillance, etc. Mr. Kourik had received a copy of the OSHA release to the media. Certain highlights of the release were read to the Membership. (The Secretary made copies of this release and distributed them to the Membership at the start of the June 19 session). Ms. Grisham had called the Asbestos Information Association to get details on the new standard. 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 standard will be July 21, 1986. Effective dates for the engineering control and work practice requirements to reach the new permitted levels will be July 20, 1988. Ln general, the new permitted exposure level is 0.2 fibers per cc. Respirators may be used 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. The actual standard as subm.ittt=d 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 appendices with two non-mandatory. There are appendices applying to the brake repair shop (non-mandatory). It was noted that NIOSH 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. That or an equivalent method must be used for the FMSI 01946 - ll - count. Hs. Grisham has a copy of NIOSH Hethod 7400, and will send the Institute a copy so that it may be sent to the Membership. It was noted that this method should also be appended to the OS~~ Standards and should be included when copies of that Standard are sent to the Membership. It is understood that the new warning label is much more drastic, including the words "Danger" and "Cancer Hazard," as compared to "Caution" and "May Cause s~rious Bodily Harm." On another subject, a Member noted that the "Right to know" Hazard Communications regulations are being enforced. OSHA Inspectors are asking for proof of compliance and that 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, with the Committee 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 ~e&~t: ~ked that these names be placed in nomination to serve two year terms exyi:r:f11tt on..,J:une 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 01947 l :- ELECTION OF t)FFICERS /Ir. Comins advised that at the meeting of the new Board of Directors the following officers were elected to serve for the coming fiscal year: Mr. F. William Barton, President Hr. W. Max Sleeth, Vice President Mr. Larry Mintman, Treasurer l'<lr. Edward W. Drislane, Secretary BUDGET COMMITTEE REPORT H~. Slee-ch, Chairman of the Budget Connnittce, presented this report. Please ref(c:r to EXEIBIT 5. Titis report recommended an Expense Budget of $132,960 for 1986-87, an increase over the past year's Expense B1dget of about 5%. The report detailed line expense items with projections for the coming year. The largest items in the budget are salaries and related pension and taxes. By Board action at its earlier meeting, the salaries item was inereased by $1.000 bringing the final expense budget to $133,960. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Budget Committee report as written. PUBLIC RELATIONS COMMITTEE REPORT The Secretary read the report on Public Relations for this past year. Please refer to EXHIBIT 11. 'ive have not had a Public Relations Committee since Mr. Simon retired. The Secretary prepared this report. The only activity was the release to the trade press of a notice on the election of Officers at the June 1985 Meeting. Mr. Belans offered 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 accept the report on Public Relations activities as written. INSTITUTE PENSION PROGRAMS The Secretary prepared the report on the Institute's pension plans. Please refer to EXHIBIT 10. The Institute has two plans: (1) The Simplified Employee Pension Plan (SEP-IRA) for active employees where the Institute contributes 15% of gross salary to employee IRA's, and (2) The Trust which was established for Miss Duschek on January 1, 1980. FMSI 01948 The SEP-IRA arrangement is a si3p]e pe~sion rqntribtlLton w.Lthuut the e;:ten~>l'JC paper work required for a qud.lifled e'11ployee pldn. Ni,;s Duschek's liCnsinu ls p.:1id from a Trust to which the :!:nstitute contributed $55,000 !n 1980. '!.tJv TJ~;Jsr il..:~s been paying Miss Duschek $550 per month and as of December 31, 19~5 had a little over $52,000 in assets on hand. The assets in the Duschek Trust ,~ul Le returne<i to the Institute upon Miss Duschek's death. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report on Institute Pension Plans as written. BPJUCE PERFORMANCE STUDY CO}~ITTEE REPORT Mr. Bill Wood, Chairman of the Brake Performance Study Committee, presented this report. Please refer to EXHIBIT 7. Hr. Wood discussed the meeting the Committ.ee held in October 1985 concerning edge coding of brake friction material. It is almost universally agreed that the existing edge code as developed in SAE J661 (Vehicle Equipment Safety Commission Regulation V-3) is unsatisfactory. It was noted that the TruckiTrailer Brake Research Group (TTBRG) had earlier contacted the Institute and others in seeking a better friction rating system and specifically a more permanent lining identification. The TTBRG is a group formed by the American Truclr...ing Associations, the Hotor Vehicle Manufacturers Association and the Truck Trailer Manufacturers Association. h~ile this group has no regulatory powers, it can pressure friction materials manufacturers to provide them with better technical information on which to base lining selections. Mr. Wood discussed the work done by Mr. Arne Anderson's Task Force as regards :recommended practices Jl801 (Coding and Marking) and Jl802 (Brake Block Effectiveness Rating). l1r. Wood noted that there were several issues to be addressed by the Commit tee and he planned to call a meeting in the early Fall: (1) Monitoring of the Identifications; (2) Providing input to the SAE Committees/Task Forces; {3) Investi_gate the impact of any final recommended practice completed by the SAE-. Mr. Wood noted that the SAE Task Force (Arne Anderson) has. fixed the foundation brake for block testing as the Rockwell 16-1/2 x 7 Q Brake. lihile there was some objection to any one brake, based on concerns on certain smaller diameter trailer brakes and on bus brakes, and the fact that a Rockwell brake was chosen, this is the most popular size and style of brake used on air brake systtms. It is probably more representative of block usage than any other brake. Mr. Wood also noted the "attributes" of brake lining called for in a Bureau of 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 fading and grabbing and shall be adequate in thickness, means of attachment, and physical characteristics to provide for safe and reliable stopping of the motor vehicle. FMSI 01949 Mr. Wood will ask the Commit:tY'o' f c-,- ~dr! 'n,e on irl].s "r01ui..rement." In discussion of the t...rork (,y the S,\E j~:1sk. F,)T\:~, it h'1S ,)bserved th:1t they are now concentrating efforts on a procedure and coding for l:rake hlocks. t-lhen this part of the assignment is eomplete, rhe Task Force will probably begin work on rating bnlke lj rti:I:;s for ras:;enger c:,Jr3 and 1 ight trucks. A ~temLer cotamented ('tl the identification and pcrman<>nt. friction codi.ng reccnnnendations in tt1ese draft;:; for 1 corHng s:n>t~:-'m. Tht' Jl80l. c-.oding recor:rrnendation calls for a machine-cut in the side of: the block which indicates friction levels at different temperature conditi.uns based on an Inert.ia Dynamometer tc;;t. This coding will cost money. both in fixture cost and i.n di.rect labor and overhe-'td. lhe Jl80.1. suggest:.iun is t=xpensive. ln addition, t:ilis is only tor permanent friction rating purposes. It does not address manufacturer, formula and date identification. It is, possible that the industrj could end up with both a macb..ine-cut friction code and an ink stamped manufacturer/forruula ldentification. A Member noted that an SAE R2commended Practice did !1ot make this "requirement" a rule. That could only d12vPlop if Federal or State re6ulations went to the SAE Reconnnended Practice tc regubt.e materials, or if user groups such as the American Trucking Associations were t.- pressure suppliers to provide these identifications. The market place might be faced w:i.th the old and new identifications, but the industry ,.;ould find it diff.icul t i.f both systems wPre tn use at the same time. The Fleets may tell the br2.ke block manufacturers what to do, but there will be a cost !'or machined-in identification beyond that of ink-stamped identification. The s1ggestion was made tnc.t cost data from the block manufacturt:r could influence ones choice of rating proceJii.res and i.dentification. An alternate cost might be figured using the proposed bcrtia Dynamometer for testing (SAE .Jl802) with inkstamping on the LD. of the blo<k. A Member questioned if (his wab the Frict.ion Haterials Standards Institute, why couldn't the Institute devd.op the standard. The Secretary replied noting that the "Standards'' in the Institute's name hm; caused all kinds of misunderstanding. The Institute's more appropriate name '-'ould be the Brake Lining Manufacturers Association (BLMA) which was the name until 1948 when that association was dissolved as a result of a Ju1St:ice Dep>Irtment anti-trust suit. The new association formed after break-up of BU1A was the Clutch Facing and Brake Lining Institute, which name was subsequently changed to Ftiction Materials Standards Institute. The Institute has no test equipment, nor fleet of cars for testing. The "Standards" in the name was probably '1 public relations ploy, but can probably be supported by the standard numbering system for friction materials configurations. Institute Committees and indiv:i..Juals, usually working with the SAE which drafts recommended practices, can i.nfluence standards. I'he SAE adopted their Recommen- ded Practice J661 for friction machine testing, and that became the basis for various State standards with invut. from Nci!Ibers as well as users. A Member noted that if the Ta3k Forc2. Recommended Practices Jl801 and Jl802 were to be approved by SAE and get into the SAE Handbook. they would still not be requirements. The obligation to conform to .11801 and Jl802 could only be established if the State or Federal Government.s were to issue regulations based on these practices, or if the customer.s 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 recommended practices and give input where appropriate. FMSI 01950 Upon motion duly made, seconded a.nd unar.imously passed, it was: P.ESOLVED: To accept the report of Lhe Brake Performance Study Committee as written. ANNUAL MEETING COMMITTEE REPORT Mr. Ed Er1-::ert as Chairman of the Annual Meeting Committee presented this Commit- tee report. Please refer to EXHIBIT 13. Mr. Eggert's report recommended a return to LaCosta in Carlsbad, California for 1987. As an ::1lternate, and for possible following year consideration, his report suggested locations on the Monterey Peninsula, California, about 120 miles south of San Franc j_sco. Th~ report l.3o suggested consideration of three locations that the Institute had used in previous years: Sawgrass, The Homestead, and Innisbrook. The report noted that it was based on thi5 recommendation that Sawgrass was contacted for the 1986 meetin;; :Jfter Sandpiper Bay cancelled the 1986 meeting in Port St. Lucie. It was noted that the Board of Directors, meeting on June 17, 1986, reviewed this report, but based on cost considerations had selected Harriott's Camelback Inn, Scottsdale, Arizona, as the site for the 1987 Neeting, with Sawgrass as the alternate should Camelback negotiations not work out. The Camelback decision was made based on a brochure offering accommodations for $50 per night, with other enticements such as free coffee breaks and free tennis. In blocking space for both LaCosta and the Monterey Peninsula, the Secretary had been a.dvised cf per night room costs in the $175 to $200 range. Mr. Eggert noted that :if the decision was to be based on room charges, the Committee should be given guidellnt'S as t:o what range the Institute will consider. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Annual Meeting Committee as written, with exception of the earlier Board decision to select Marriott's Camelback Inn as the 1987 .meeting site. It was notedt:lnrt tlw Membership had not been advised of the change in structure of future Membership Meetings. Based on decisions made at the earlier Board of Directors Meeting, the Jnne 1987 Heeting will invite spouses to attend Institute sponsored social events now open to the Membership. This will, in effect, open the Reception and Dinner scheduled for the Membership on Wednesday evening to spouses. The Tuesday evening reception is already open to spouses. OTHER BUSINESS The St-cretary discussed the review by a special ad hoc committee to consider notching of the O.D. of clutch facings to facilitate identification of non-asbestos facings. Those involved were shown the sample facing sent the Institute with the 180 notching. The Secre.tary will draft a report on this suggestion based on FMSI 01951 - ; ,'\ - comments received from facing manufacturer companies . .3ased on earlier discussion noted in the minutes of the Data Book and Technical Ccmmittee work, and the insurance question, the Institute has been asked to send a ,Juestionnaire to the Hembership. This questionnaire will include not only qt'estions on gathering application data, but will indicate services provided by t!w Institute and ask for input from the Membership on service needs of the r1e1nbers. 1-1. Member noted that this questionnaire should ask for the name of the person in charge of that Hernber's insurance coverage. ;\nother Hember noted the booklet put out by the Institute a few yean; back which highlighted services to the Members, and included a history of the Institute. It was recommended that the Secretary up-date that booklet and either offer it to the Members or make an additional distribution when revised. Tiiere being no other business brought to the attention of the Membership, upon motion duly made, seconded and 1manimously passed, it was: PESOLVED: To adjourn. Adjourned June 19, 1986, at 9:45 AM. E. W. Drislane Secretary FMSI 01952