Document R8pRaRVzm6LzQBqoG1jb2kxn

i'fl'lUTl:S OF THE AN'NUAL NEL1BERSHIP MEETING of the FiUCTIO.~ HATERIALS STAJ.1'DARDS INSTITUTE, INC. v.iedtHe:3day and Thursday, June 18 and 19, 1986 at Sawgrass, Ponte Vedra Beach, Florida L'.CTIVE H~~/JBERS PEESENT Abcx Cv..-pnraticm i\LUv:i Auto-not~ve- Bendix Carl:i cd.e Corpor2 tion Cert:i r i_ecl G.r:d:;.::s ljr.;Lco<!oraine Division (Proxy from D. Emrick) Yrl~~tlori Di,i..'~fon Jl;:od!Jcts, Inc. Cu'lrri Lw, CnupcT Industries HI0J c 1 ,:;<.tlitornla Corp., Krasne Division ,.,,1tn.n1 CnrporatJ.rJ<t P. T. !:rake LL~.Lm; Company i:i. K- Port ~r C'Jmp<.HlY, Inc. k'-~-i\''n.n C0rporation HcJ~asay t1anufacturing Co. ~ir~iuia friction Products, Inc. hilkelj_ng Brake IHoc:<. Hanufacturing, Inc. REPRESENTATIVES Robert E. Nelson Francis E. Messier James E. Bennett Arthur V. Moore Larry Hintman 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 OTHE:~S PRE:CENT A.LliEr.l Automotive Bendix :\Hied Automotive - Bendix Allied Automotive - Bendix Urak0 Sy~tems, Inc. Cmadian H(~tallic Brake C:madi an Hetallic Brake C:1nparts AtJlom0tive International Friction Division Products Guardian, Cooper Industries (Wagner) HKM of California Corp., Krasne Div. HK;.I of C;;li fornia Corp., Krasne Div. NJ.turn Corpuratlon ~\.edd.:nvay Hanufacturing Co. Han.rood Lloyd, Counsellors at Law Friction Materials Standards Institute Richard E. Fasteson Ron Hiskelley John Riopelle William F. Wood Hichael Beri Rick Ctirpenter Andy Gagnon William Carney John W. Kourik William Axelrod Steve Sleeth Donald Loftis F. William Barton, Vice Presiden Russell A. Pepe, Counsel Edward W. Drislane, Secretary FMS\ 01953 ~tr. Comins, rresidP'!1t .. c:4~t--.J Aa the first ord<c:r of bu:c;i_nvc ' ,. l: <f) :"l, .l:;;e IP, I 48''. ':: : -\. ,_;_ ~ ' ' .~ flJ.i 3 i".:J. ~J a The .:"'c:r<:t.:ir: aJ-;isen U1at th<.c :1in:Jt,":> tif the ;.h,,~be:rship Ht.oCti:l;'. of ~~un~: iR 11.! 193) fl\ill L\.~en Jistribut~~d.. f!. l.:,JE s~,~~f!.t.. st~d thdL a r.=.:..iciing of the nd.. Lu:~~-:..: ...:a..~ not Jlece.ssrt~-:-y. LTpon :noti.()ri t~t!.! >' ~:idr::, st~cnrhid nr:;d unanintou.:~ly p:asred, 5 t 1.:as: l9, ~:_~~~cLVl~D: T~.J :~ccr::vt ~._h( mlnut~:~--; c;i fite ~L.:~-Lbershir l'1e . !ting of June l8-1!J, .\:;:~:, :Js '.11-rit:~..::cn. Hr. Stnart Comin:~, PrP;:it:ent p;-cseJer! iJc; report. b:fer to EXHIBIT l. J1r. Comins not:ed certai11 1.te:ns to be c.>ven'd lat'-'r including the st,;dy of the fee formula, conti.n~ency planning for Et.ifi'Ll.~ r.be Insti::11te, financial resElts, ;:irtd the activities of the Hoard al its m..o.~U.ng it~ Han:h 1}86. In closing his report, l'ir. Comins urgecl t:l:w Ne::thership ro coL1ti:1ue fot:pport of the Institute. ' '{CO unanl..mons . LY passeL., i.t \Vas: RES0LVED: i};i!',i'.D -)F :; '1< i~CTORS ACTlVl TIES The s~cretary '1:-eport.::J Oil cJI:t;vitie:,; of the Board of Directors since the June 1985 Meet:ir.:.;. Th.is r~'viu.;s ))vard ''~tions c:lnce the report to the ?iembership at the June 19, 1986 Meeting. (NOTE: The Secret.9.ry read thLc: report \-lh:icn had been pn~pared froJll pencil notes, and inadvertently failed to read the last page of his notes at th2 rteeti.n 6 . Tt.c full text i.s covered in this secti.on of the minutes.) At th~ meet.i.ng of the new Hoard of Oi:n~<:tors follov;.inq; the Hember~hip Heeting, the Board reelected Ofii.cers lq ~-"."T'-'"" tl,rou:-~iJ the i98:;-;3f) fiscal year: Staart. Cow:ins, Pc.:.>sident F. William Harton, Vice President ~,;. Ha.:.:. ~lec:'th, :.-easllner E. iJ. llr'lsJ..~n~. ~)ecretary By mail ballot, the Board 'Joted tc 2,cept: the name change on the Institute's records of Br:.issbes Lo<; tlimnfa<' ~ tn i_ng C0mp.Tn'i to BllC Corporation. In early 1986, the Board voted to tenninate the ?1,?-mb~rship of BNC Corporation and Cougar Automotive for failure t0 pay the ~vlcmbersiti'[: F,~es. (i3,,th are i.n Chapter 11). FMSI 01954 A special meeting was called by tje Board of Directors to address three items: (1) The Product Liability Insurance Problem; (2) SAE Consideration of Effectiveness 'ieasurements 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. J3c!< Carney's consultants, Kamp Associates. In summary, reinsurance is not available for those with any asbestos exposure. Any insurance which might be available ;vould have an asbestos exclusion. Most 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 serious commitments in time and money in order to establish a captive insurer. No action was taken. The Board considered the SAE Brake Effectiveness Task Force recommendations for an Inertia 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 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. Tite Secretary was asked to call Mr. Gorman and attempt compromise on this billing without confrontation. FMS\ 01955 - -~ - The Board approved rema~n1ng '"'lUt ~h :'1 ~5~-~6 1~-.:e r,;rmnL cer the l')~iJ-87 fiscal year. In addition, based ou a s_:H::!y ::f trk formula and 'nenbcr ;Jroduct li.nes, the Board approved a new category fonnuJa for 1987-88. 'T'hj:; v:i.Jl t1e put into effect with the fee billing of July 1, 1987. The uew formula will brve four categories: (1) Disc brake linings; (2) Drrrn. brake 1Lnjngs~ (3) Grakc Hlvcks; (/l) Cl'1'-ci1 facings. This will add a disc brake lining category and drop the ne~T-unlined shoe category. Disc brake linings an: currr~ntly reported under the brakt.> li~1L1g ~ate gory (drum and disc). It is the ::loR.rd's intention that in thf' first year the change will be "revenue neutral." The Board discussed :Member parti<:ipation on CoJinnittees aP.d t'w di.ffi culties in gathering product inforn;atiun. .3mne difficulties are attributed to the increase in imports, and introduction of vehicles like lveco, M.fu"l and ':lle irr,ports ,;.:1!::0 domestic producer's lines. TI18 Institute wi.ll circularize the Membership indJcJ.ting where it does not have prodw:L infurmat:i.on and has no contacts. Also the Institute will ballot the Member-:bi.p to :lm<>nd the ConstituUon to permit full Committee participation by Licensees in an attempt to broaden infonnation gathering activities. As regards Director participatj_on, the Board will ask the Scrretar] to request the resignation of a Director wilo is aot particJ_pating i;:1 B1~a1:d activities - meetings and ballots. The Board discussed the three classes of Directnrs called i.uc- in the Constitution. It was noted that it was often di. ff.icu1 t to have an actively partieipating company represented in all thre-= class<2-s, particularly when the. !restitute is attempting to have Officers who are not. <L~so Directors. It was noted that this balance in the classes should improve with tile changes planned for the fee formula in 1987-88. In discussing the Data Book ,~md T"clnd cal Cmnmi t tee report, it \.ras noted that the printer ('1\...reddl.:: Litho Company) owns the computer program from whieh the type was set for our last Data Books. The Directors reviewed M.r. W<"'oti 's re;-,ort on activities of the Brake Performance Study Committee, partic1~larly t:he Arue Anderson SAE Task Force recommendations for an Inertia machine procedure for rating brake blocks. 4\t this point, the Secretary in<.Jdvertently failed to read th:.:;, remaining notes on Board activities at the Membership Meeting. The balance of this report ls presented below). After Mr. Riopelle's report on the Health and Environmental Affairs Corrnnittee, the Secretary was asked to circularize the Hembers with copies of the NIClSH asbestos fibre counting procedure, Method 7400. 'The Secret;~ry \ms asked to attend the EPA hearing on its proposed ban and p~!.-:lf;e c-ut of asbestos products. The Directors discussed the new OSHA regulations \vhich wt:re 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 discJssed 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 01956 As for the June meeting, the 1:\o;;r.l -3ec~tLd to b._,.,k, !'::FriotL 's ~~<lm.o>l'_);,ck Inn. Scottsdale, Arizona, based on UteL[ advertised $50 per n-<~\,t <h~corr.JnodatiC'ns wit:h other extras. The Secreta1y \vas -JSk'?d r-o hC'ok Camelback, 1::-_tt ~1e>ld Sav.Tgrass a.:> th2 alternate should there be any problem with the Camelback proposal. On Historical Sales, the Board asked that the figures f0r the first t:hn,e. six and ni:~.E. months periods of 1985 be restated without the quaatit.ies from the o:J.e ;Ien>::er who did not report ~ull year data in 1935. And lastly, tl10 Eo<>.rd de:c:incd thal spouses ~vould be invited to all Institute social events at tle .June Hceting which are now open to the Uembership. This would add the Wednesday night reception a:~.d dinner to the events to which spouses would he in<..'ited. TREASURER'S REPORT :tr. w. Hax Sleeth, Treasurer, presented this report. Refer to EXHIBIT 3. In sunnnary, this report projected an excess of income over expenses for the 1 98 5-:36 fiscal year o~ approximately $15,000. This figure may he adjusted for the tiDexpected billing by former Lee;al 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 positior.. and that expenses were under budget and under control. Upon f'lotion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Treasurer's Report as written. HEMBERSHIP C011MITTEE REPORT i-18. Rita Grisham, Chairman of the Membership Committee, presented this report. Please refer to EXHIBIT 2 . .:--rs. Grisham reported on changes during the year where the Institute had a net loss of 1 Active Hember, a net g.1.in of 1 Regional Hember 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 Nintex (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 Frictieroateriaal, B.V. of the Netherlands. In addition, BLD Products and Lucas Industries joined as Licensees. As noted in the report on Board activities, Reinz ~.J'isconsin Gasket was added as a Licensee on June 17, and the Board terminated the R & D Friction Regional ~1ember 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\ 01957 p-; .t)i ''! ~ The Secretary reviel~ed e:,rli,cy r.'eCL''L)1i; 'J11rl l"_:_",:s f-JVc'TI ;;n thP SOJhj~r~t r)f product liability insurance. ')'],._, pc;dllCl 1.:.JI)lLity illf'llY<lllce :Juestioe and the suggestion that ti:e Institute spon::;or J CdpLiv<- i;c;dr-. r -,.<:':CP r:Ls::ussed enr~Ue.r 3L t 1le ~oarJ c.f T;i_:-i:'ctors ~Ieeti.ng. This had been c>ne o[ the' majur cgeada items 2t a s;;ecial met>tinz, of tlle 3oard o[ ~)ieee tors nn Ma:c'.1 ll, 1956. .'\t 1.:113t :m~eting. a Frank R. Hall rpre..sent:.tciv~ ard t-:H:.-.. \Jya:.t r~on:p:tny (l"\~tna1les) \\!ere .3.slccd to f).'\"'t.~ chc Institute bnckgrouud on possi.bL:.> C"3ts tc. establio-:h .3 captive and to acces~; the reinsurance m~1 rket. . At trwt nc;:-eti::lg, hamp As.-;oci.Jte~;. con~;ultanu~ hired by Friction Division Products (.Jack. C:tc :1o2y), 1.ndi-c-lt.'.'J Ul<J l u~rtsidto 1:;1~ asbo;ost;_'" an-:fl, re~.;p,-,ndents to a questionnaire were not experi.cnci:1g ~ignific,m!~ ~laims cr losses. Kamp had indicated that l~abLlity coverage w-i~h asbe:-;:.o:, inc 1_ud~d '"as n0t available. And, liability ccverage, evPn '.-lith an :l,;il;.:sto:o exc.Lu;J.,;n, w3S not :1v:1i l.able as Insurers were skeptical of court inL'rp::eL'.tions ou coera~e exclusions. Essentially. areinsurance.' market c~ocs nut ::.~:'--~"t where t'i0. insured has my asbestos exposure. Beyorrd this, Lhe survt.'Y ;-;lJnnj <'l:ly sma.:l resr,:mse, (8 r-eplies). Those that did re:spond d.:.ci rtot h;v- i,_:; "'3 :o:~_d/or ct:~i_;,:s t:O:;t w-12ne signlficaut. Hr. Robinson of Frank H. ?.a.ll :c.tlhsfo'r;u.~tt1y \-J~otc st<.~.ting thAt establishing a captive woulJ take commi.tt:ment Lnth in U::1E' and in r.wney. \.fyatt presented a ''business cas~:::" exhibit, ,,;hicl! L:eoy cwr:.;:sized v-'3.t> based nn v0ry preliminary asst.nnptions. This "ca>c::e '>tudv'' "''"-; :~" ::~;:t ;d. ,.,,,.,::;ibl.c ,;-c,.;ts in ..:stabJishing a captive assuming 1:2 H-lSl l1errbcrs ;.:.ud .i.UO of their cu3 ton~<o-rs \ole re to partie lpa te. Based on what are admi t~tedly 1:ouc,il a(;~:u,rqt:j_,1tS, t:h'.:: annual prerr.ium cc;:;ts appeared prohibitive. Based on the Kam.p iap,rt at t~''=' HePti.ng ;.md the Prank B. Hall/Ivyatt re~~orts, subsequent to lh2 NeP ting, ,.,., further :J'ti on was t!'ll:E'n J.s regards liability insurance. The Directors at U;c J<mco ld tk:.eLl.ng decided they would not take further action on this subje..:t absent ~ome 01ew rlevelopment. One Hember took excr.:ption tn that d:::cision. He stated that even if Institut:e Members w~re not inle:rec;ted, se.':eral of: their customers we.re interested. A Member asked if the ifembersl1ip co1~ld Le surveyed again to determine i.nterest. An Officer stated that \vh:i 1e h8 had supported sponsorship of a captive insurance approach by the Institute earlier, h.c no ];>nger LLt it WilS feasible, and pointed to the money that _i'lr. Carney had speont. witlt his :cnsultants with the latter now indicating lhat ae<:essing reinsurance maYket~ was not feasible for any companies exposed in any \'lay to asbestos. A Member pointed out: that larg:cr gcJu\)3 had attempted to sponsor similar captives, and had given up. He cited th"' Automotive S2rv~.ce lr1Justry Association (ASIA) and the Automotive Parts Rebu:i ldcn; Association (APRA) as two groups who had backed off from the captive dpj.H,)ocb. In .:m~:w-=r to a question, it was indicated that both organizations had inclL:JuJ part:i?s in the wholesale distributor end who would be the equivalent of Memb~y~' C1llitoners. A Member stated that whih this question did not have to be resolved at this m~et ing, that the Members were asking if the question could be resubmitted to the Hembership for their input.. Any such survey of ~.embers' interests in the liability insurance problem would include input from their customers. It was pointed out that FMS' 01958 !- the survey wou1 d bav2 ~o b~. S'Et tJ .:he ['C: rc.; ""t:sr,rlnsiole for inaurance at the ~!emher company. H; a show of hands, the !-h.:muers indicated thc.t t:'.1ey wished the Institute to bring r '' :rcdH.:rdlip up to date on the liability insurance qt..estion and to ask .::=or their h>ll.ots as to proceeding further with a study on a captive. The Secretary toJas ,1_11cc:ted to prepare ;J questionnaire on ~1embers' (and their customers') further i:t:-.rcst in fl captive insurer, and a possible meeting on this subject fer those i!![erestcd. b\iESTHENT ADVISORY COMMITTEE REPORT Ilr. Barton, Col'lrnittee Chairman, presented this report. Please refer to EXHIBIT 4. !-f,. Barton's report projected investment balances at a little over $265,000 at June 30, 198h, about a $17,000 in..:rease over June 30, 1985. Also, investment in- col:le cvould L..c down about ~ L, 000 to slightly over $2 7, 000 this year, based mostly on no si.gnifiumt t:apit.-,1 r.ains on maturing Treasury Notes this year. TI1e det.::L Ls on li.lV<~s tment Rcti vity, past, present and projected were sho'Wll in the report. Proje::tions [nr the coming fiscal year indicated that investment inc0rne would drop aoout $1,000 to approximately $26,000. This is based on the continuing drop in interest rates. Upon .motion dnJ..y made, seconded and unanimously passed, it was: RESOLVED: To accept the report of the Investment Advisory Committee as written. Ii:'\.T~\ BOOK AND TECHNICAL COMMITTEE REPORT Tt1e report on Data Book and Technical Committee activities was prepared by the Secretary. Please refer to EilliiBIT 8. 1'1r. Drisl.ane noted that dlis Committee has once again lost its Chairman. Mr. Gordon Smith r..:~ho haJ chaired this Committee since 1983 is no longer with Bendix and the Cor,lffiittee 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 u~-datir..g the Catalog both at the Printer level and at the Institute (!ffice when new data is be::.ng added. In addition. certain changes made in the 1986 Automotive Da:::a Gook were detailed. 'I'wo itel'ls of concern to the Members were resolved during 1985-86. The continued assie,nmcnt 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 11-lSl 4311J assignment. Also, the Institute cormnenced usage of a blocked series (FHSI 7800, 7900) for heavy duty disc brake linings. FMS\ 01959 Upon motion duly made, secunded r-<nd ~lli1.i1Lr;c,usl' pasc:eti . .Lt \-ia~-;: RESOLVED: To accept the report of the 'J-1ta Book 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 vehicl<:!s 1;secl in North America. At the Board Meeting, the Directors discussed this information-gathering and are asking the Hembership to help. Many times a ch.::mge -will occur in the field \vhich t<!embers may know, but which is unknown '::o t]Je Institute. rlembers should advise the Institute on any such change or probJ.em. so that the corrected information can be published in hulletins to the '1embers. In other cases. Members may develop information on certain brakes or clutches _tsed on vehicles for which the Institute does not have information. This h::~ppens most often on import vehicles or on vehicles manufactured in North America by European vehicle rr;anufacturers. Examples would be Iveco, MAN, Volvo Truck & Bus, Hercede::; Commercial, etc. If aftermarket manufacturers are servicing these vehicles, the Institute is asking for general lining dimensions or samples (which \vould 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 kaown to the Members. The Secre:tary \.ras asked to prepare a bulletin or questionnair0 to the Membership on the person to contact at the Hember firm when seeking product information of this type. FEE FORMULA COMHITTEE REPORT Mr. Nessier, 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 the next fiscal year. Based on projections shownin the Budget Committee Revert 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 FMSI 01960 As noted earlier, the Boa 1 l dt: r- r\.Jv"-' ~ ~. i i~~'"l for1:~ul..:.l :. ~.~ r f t:! ;'t; rp;_-,~: t::; t:o t:.J ~1.:: ~ f feet with the 1987-88 fise<tl ys:n-. .,: -' .. c'..:: va-r'J'.t :'u,-,,,,lt !;:ts iour C..llcgories, the 1987-88 formula w:i.ll :1dd a c::-!te~i'i'' "'-'r iisc ln:d~e l.inir,;?s and dr:op t:!e cat':'gory for new unlined brake shoes. As J.i.sc 'Jra ke linings .::u:<> now reported cwder th<: ''Brake Linings" category along l.'l 1 h .1cum brctke 1Jninc;'>, t:hi:.;; v.'lJ.:.. ~il~.:,;.,.,c t-.;,ro car.egories in 1987-88. While there v.:oill i;2 additional c:ategories reptTted, it is the iJirec.::.tors' intent to have the change be ''reveTIUE' ncu::r-al'' Li t.lle b,:;;i.nr,inr: year, based en i.nve:~tl"lent income and ::xp.-;nse budget considerations. 'T1te Se~retar:; \Jas directed to advise the Membership on this dwnge, atld to gatber datii on the new categories Wht'n developing data fr..-r ~he Fee Formula Conunittee for Ju:le 1987. Upon motion duly made, seconded and unA-nimously passed, it r.11as: RESOLVED: To accept tlte report of the Fee Formula Committee as , T!_t:<-en. A 11ember noted that the 1987-38 fee category change would more evenly distribute fee levels in future years. Ti tis WJul d penni t improved compl:i_ance with the constitution's requirement of three ,, 1 asses of Members. Based on an analysis of the Institute's twenty-one Active ~1<~mbers, the neH fee classes would be distributed as follows: Four Thrt-~e '~o One ( '+) (3) (2) (l) Catev,oric.s: Categories: C.:ttegorics: ratt:gory: 2 Members " ~1(;mbers 8 Members 6 Hembers HISTORICAL SALES REPORTING The SecretarJ prepared and read the report on the Historical Sales Reporting Program. Please refer to EXHIBIT 12. In the report, the Secretary listed tne companies reporting for each quarter of calendar 1')85. It was noted that one Member failed to report the full 12 months sales at year end, wher8 that i'lember had reported fur 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 th~ full twelve month period. And further, he was dir:::cted to similarly have the quantit.ies 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 wa::;: RESOLVED: To accept the report on historical sales reporting as written. FMS\ 01961 Hr. Riote1h~ prescn>~d t 11e r<-pcrt on .'l::tlVltlC> of t:1e Health and Environmental Atfairs Committee. Refer to EXHIBIT 9. Hr. ~lo~1E:lJr:-'s r('~1c;r-t <-;ted that the OSHA proposals on asbestos in the workplace w<:.r::: near reluts~. He noteJ tl1at the report (written several \veeks before the r::ceti1g) h'.';s Wl\tl a little Lt~ on this subject, a::: OSHA announced to the media on ~T'"'ne i.J t_Lat t;lf' ne.v USHI\ standards ~.~auld be published this week in the FEDERAL k.EGI;~TER. (Actual pnbl:i.cat:inr. was on friday, June 20). In hL; !:eport, Hr. r:_ioDellc noted particularly the proposed rules which the Environmental P(.)t<.'Ci ion Ai~.ency (EPA) had published in the FEDERAL REGISTER on January 29, l9R6, and L:~;'ir mc';mLn,.s to the frif'.tion products industry. At its March 1986 :-!~eting the Bo;1rcl of Directors outlined connnents which were to be drafted by Mr. l\i<..:pel1c and Jjrislane and sent to EPA. Tiwse connnents were circulated to the Board, lhe Cor>:mittce -'ll1d to Legal Counsel, and were sent to the EPA on June 13. 1986. Tht- ~)ecretnry aJvised that the fJll Membership would be receiving a copy of the Institcte'~: connnconts ;:u EPA. Furt:1er, tl:ro2 Sec rerar:; :.Ja~' directed at the Board meeting to attend the EPA Hearings on tl'te!:>e rropos;.d:~ \iilich 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 .1sheatos exposure in the workplace. OSHA made its announcement to the media on 1-r.i_Jay, Ju.ne !3. Members were interested in effective dates, various sL~~llflc;_ml ch;::mges in pennlssible levels, warning signs and labels, medical survt-ilLJn,~c, '~ tc. Mr. Kourik had received a copy of the OSHA release to the media. Certai11 id.ghlights of the release were read to the Membership. (The Secretary made copies of tlti~; release and distributed them to the Membership at the start of the Junto> 1') session). Ms. Grisham had ca1led the Asbestos Information Association to get details on the new standard. Cer::ain 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 f:)r t.he ne\v standdrd will be July 21, 1986. Effective dates for the engineering c.onco} ;J.nd work practice requirements to reach the new permitted levels will be July 20, 1988. In general, the new penr.i tted exposure level is 0. 2 fibers per cc. Respirators may he used to reach this leveL for drilling and grinding operations. However, other l)perations must attain these levels with work practice and engineering controls. Regulated areas must be defined in 150 days. And, the action level for certain stanaard requir~ments iH set at 0.1 fibers per cc. 111e actual standard as subml.tted by OSHA took over 900 pages (double spaced copy). It is un,L:rstood 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 \oJas 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 01962 - t1 - count. Hs. Grisham has a copy '-'i ?HOSH Hethod 7400, and will :.;end the Institute a copy so that it may be sent to the Hembership. It was noted that this method should also be appended to the OSILo\ Standards and should be included when copies of that Standard are sent to the Hembersl'.J.p. It ts understood that the new warning label is much more drastic, including the worJs "Danger" and "Cancer Hazard," as compared to "Caution" and "May Cause Stc>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 compli::1nce and ':hat Materials Safety Data Sheets are posted and workers are being instructed on poasible hazards. UI'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 onits 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 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 m1animously passed, it was: RESOLVED: That nominations for the Board of Directors be closed. The Secretary tas directed to cast one ballot for the election of Mr. Robert E. Nelson, Ms. Rita Grisham, Hr. 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 01963 ;:r. CamiEs advj sed that at th<' Pl<..'etin;~ nf the ne~v Board of Directors the following <Jf~ccers >vere elec-ttcd to serve l'.1r t:~E concin;; Fiscal year: Mr. F. Hilliam Barton, President llr. \..J. ibx Sleeth, \'Lee President 1''r. T.arry \'1intman, Treasurer t-:r. EdHard ;-;. Dr is lane, Secretary f'L'liGET CO-:'<!MI TTEE REPORT Hr. Sleeth, Ciu;j rrn..m of the Budget Conrrni t tee, pre sen ted this report. Please relt~r to E~{!!LH!.'j-, ~). 11tis cc;;porL n -.. omRend:>J an Expense Rudget of $132,960 for 1986-87, an increase over th.: r:iSt ye.n l L; Expet!'H' Lu.dget ot abolt 5/~. The report detailed line expense items with ~;roje.:ti.o:J.s "-;_)r the cnrnln~ year. The largest items in the budget are salaries and related P'-'llfl i.u:-1 'ind taxes. By Board action at its earlier meeting, the :~alaries itm ..:as iJ.crc~;-Jscd by $l,'J(}0 bringin;; the final expense budget to $133,960. Upon l!lOtion daly 1;1acie, s''c.mded and tmanimously passed, it \vas: XESOIV"!-.l~: To aec:epl rhc R1Jdget Committee report as \<lritten. p;;guc RELATlONS Cm'!MITTEE REPORT Ti;e S :Cl'L~tar'-' r:: . :<l the 1 <port '.n Public Relations for this past year. Please refer to FXHIBJ T ll. \\fe t1.:~v-e nut had a l\rb1ic:; !{elations Corrlrlittee since Mr. Simon retired. The Secretary prcp.:,~_,_c(i t:J:i. :; ;epurt. TiE' only activity was the release to the trade press of a notice nn :..'..' cLecticn of Officers at the June 1985 Heeting. ilr. BeLms offered to help the Secretary in circulating public relations releases t.o tlte auto'llotive t1~ade media. !lpcn motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the n:>port on Public Relations activities as written. INSTITUTE PENSION PROGRAMS The Secret:.tr~t prepared the report on the Institute's pension plans. Please refer to EXHIJHT 10. The Institute has two plans: (l) The Simplified Employee Pension Plan (SEP-IRA) enfor active employees where the Institute contributes 15% of gross salary to employ- ee IL\A's, and The Trust which W<iS established for Miss Duschek on January 1, lSt-~0. FMSI 01964 The SEP-IRA arrangement is '1 ''l''!P]l' :cns;,,,1 <>Jn[riiJJLinn w~r!uur ti:., , "t,_;):;l;C paper .o1ork requirt!d for a qualified encployeL' ;)Ll11.. 1 ;:.:. Du:.;'-: 1Lk's i-"'':-:;_c'd l; 1a.Ld fn)m a Trust to whi.ch the -~t!stituL ccnt:i_ 1>::ccd ~;'JS,OOO .!11 i'JBQ. 'f\,, ''::ut :l.1S been paying Miss Duschek $550 p.or month :md as of DecEmber 31, lYKS tt~J <\ b_<:tle over $52,000 in assets on hand. TI1e assets in the L'u:-;chd: Trus!: ',<~ij_j '- r,tur:1,:i to the Institute upon ~1iss Duschek's death. lJpon motion duly made, seconded and unanimously passe:l, it W:J.s: RESOLVED: To accept the report on Institute Pension P1ms ::IS written. Bf.AKE PERFOR:'1ANCE STUDY Cm.1MITTEE REPORT H~. Bill Wood, Chairman of the Brake Performance Study Connnittee, ;nL>senter:l rhis report. Please refer to EXHIBIT 7. ar. Wood discussed the meeting the Committee held in l)ctober 1935 'COlllf,rning edge coding of brake friction material. It is almost univErsally agreed th:c1t the existing edge code as developed in SAE J661 (Vehicle Equipment S.-:;.f2ty Commission Regulation V-3) is unsatisfactory. It \l!aS noted that the Trnck/Trail_c2r Brake Kesearch Group (TTBRG) had earlier contacted the In::>titute and others in seeking a better friction rating system and specificaLly a more pe1.1nancnt linin<-:; identification. The TTBRG is a group formed by the American Truclr..ing AssociatLms, the Hotor Vehicle Hanufacturers Association and the Truck Trailer Hanufacturers Association. While this group has no regulatory powers, it can pressure friction materials manufacturers to provide them with better technical infonnatJon on whl.d1 i.:o base lining selections. Mr. Wood discussed the work done by Mr. Arne Anderson's Task Force 3o; regards reconnnended practices Jl801 (Coding and Marking) and Jl802 (Brake Block Effectiveness Rating). Mr. Wood noted that there were several issues to be addressed by the Conunittee and he planned to call a meeting in the early Fall: (1) i'1oni to ring of the Identifications; (2) Providing input to the SAE Committees/Task Forces; (3) Imrest:lgate 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-l/2 x 7 Q Brake. Hhile there was some objection to any one brake, based on concerns on certain smaller di&meter trailer brakes and on bus brakes, and the fact that a Rockwell brake \'a;:; chosen, this is the most popular size and style of brake used on air brake sysrE:ms. It is probably more representative of block usage than any other brake. Mr. Wood also noted the "attributes" of brake lining called for i.n a Bure:.Fl of Notor Carrier Safety (BMCS) requirement: The brake lining on every motor vehicle shall be so constructed and installed as not to be subject to excessive fadi11g 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. FMSl 01965 Mr. 1-J'ood will ask the Commit.-'. 1,: ct>l: : :m 1-: :-; "r,__quirement . " concentrating efforts on a p roceJure an,i. c.Jd log f,~r L r a i<-2 h l.ocks. \Jhen this part of the assignment is compLete, the Ta:;k Force wil1. prohably begin wo:ck on rating br,lke lirlln;.,; for paf'';e;:gcr ".<In' .1Wi ] J.ght trucks . .\ '-TemLer -~o.o.rr.<:nted c'n the i'iellti f i.e at ion and penn;;n;ent friction ~nd.~n;._; rl?commendations in these drat:3 tor :J cod.in~; syst~'m. Tht. ,Tl80l. r.Dding no,cumm~ncl.Jtion calls for a ma-:hine-cut in the si.Je of tLP b.lock which indicates frictiou levels at differ~nt temperr~tur~ cc:,di.ti".s b:.::>cd oa au Inertia Dvnamcmet0r t\:;'~. This coding will cost raoney, hctlt in f:l.(t.ttr" cost and i.o direct .L1bor <1nd ove.rhc'{t:!. Tlw JIKOl sugge.st:ion is expensive. In :_tt.ldir:icm, this is o;;} ,- fen ;H~rmaEent iri~tion rating purposes. Tr: does uot -2.(L.:!re:;s rr:anufactUI''cT, fo1mu.la a.nJ date identiJ:i.:ation. It is, possible that th~ .industry r:oold end up with boi:h a machine-cut friction code and an ink s tampC!d manufacturer I orw!la 1 J0n ~-1 U.ction. A Hember noted that an SAE K2('0il:mended Practice did 1ot make this "requirement" a rule. That coul.J on.Ly d< J, L..p if f-'ederal -1r ~'t:1t...: ::-",:;ulations went to the SAE Recomm<>nded Practi. e t,; reg;ult.e m.J.terials. ';T [ f user groups such as the American Trucking Associations were to pressure suppliers to ~rovlde these identifications. Tlw market place might he LL .:d with tfJ.e old .gnJ new Ldentifications, but the industry 'vo~ld find it di.ffirult if both syste!T!b Hen in use <1t the S'3me time. The Fleets may tell tlv L,r-,[:(' LJ.od-::. Tllanuhicturers what to do, but there will he a cost for machined-in jJent:i ficaUon beyond that of ink---stamped identification. The suggestion was made that cost da1:<1 fro!ll ti.e block manufacturer r.ould influence ones choice of talint. prcc:r:durtos and i.dc~ntification. An alternate cost might be figured using the proposhi ln:::rUa Dyn:<mom.etcc_<:" for tesri.ng (SAE .Jl802) with inkstamping on the I.U. of the :-d.o:k. A Nember questioneo if this w:c;;s the Frictic:<n Nat~rials Standards institute, why couldn't the Institute develop t.he standard. The Secretary replied noting that the "Sta:1dards" in the Ins ti r_,_t h' 's name h.1:o; c. a us t'd "ill kiuds of mis Lmders tanding. The Institute's more appropriate name would be the ~rake Ljning Hanufacturers Association (BLMA) which was the name until J948 when that association was dissolved as a result of a Justice Departmt'.nt anti-trust suit. The new association fonned after break-up of BLHA w:cts the Clutch Fac-.ing and Brake Lining Institute, which name was subsequently changed to Fdction chterial.s Standards Institute. The Institute has no test equipment, nor fleet uf cars for testing. The "Standards" in the name was probably a public reldtions ploy, but can probably be supported by the standard uumber:lng system for f-ricticn materials configurations. Institute Committees and indivit.iual.s, usua1Jy working with the SAE which drafts recommended practices, c.:.1n inf:luence 'Handards. The SAE adopted their Recommended Practice J6f)I for fric-~.i.ur. nac.hir"~ i..esting, and that bt.'came the basis for various State s taildards with input frcm Member~~ as well as users. A Hember noted t:lv-lt if the T;:~;\; Fore(:' Recommended PrC!ctices .Jl801 and Jl802 were to be approved by SAE and gcl .i.nto th0 SA,'<; H.cmdbook, they would still not be requirements. The obligation to conform to .I 1801 and Jl802 could only te established if the State or Federal Government.s were to issue regulations based on these practJces, or if tbe customers insisted on supplier conformance to the regulations, and were willing to pay for this additional cost. The Conunittee will continue to follow any pn,posed SAE recommended practices and ~~i ve input where appropriate. FMSI 01966 Upon motion duly made, secon<led 3.nu Ui'anl:nously passed, it was: I:ESOLVEiJ: To A.ccept the r<>port c.; Lhe Brake Performance Study Co~nittee as written. A:!II"N'JAL MEETING COUMI TTEE REPORT ~1r. Ed Et~,;ert :1s Chairman of the Annual Meeting Committee presented this Committee re:~ort. "lease refer to EXHIBlT 13. Mr. Eggt-rt' c; report recoi!lmended a return to LaCosta in Carlsbad, California for 198/. ;,~; an :1lternate, and for possible following year consideration, his report sut;~;e:su:d 1 ucgtions on the Honterey Peninsula, California, about 120 miles south af San Frnnclsco. The rEport ,11.oo suggested consideration of three locations that the Institute had used in pre vi_ ow> years: Sawgrass, The Homestead, and Innisbrook. The report not.:d ~hat Lt was baEed on this recommendation that Sawgrass was contacted for the 1986 m<c'etin~~ after Sandpipr.::r Bay c-~nce11ed the 1986 meeting in Port St. Lucie. It was twi:ed that the lloa.rd of Ihrect:ors, meeting on June 17, 1986, reviewed this report, but hased en cost considerations had selected !1arriott' s Camelback Inn~ Scottsdale, c\rlzona, as the site for the 1987 Neeting, with Sawgrass as the alter- nate s 1l0uld Camel bact-_ negoU iltions not work out. The Camel~a.:k ded.sion was mad<! based on a brochure offering accommodations for $50 per ni.ght, vli th other enticements such as free coffee breaks and free tennis. In blocking space for both L2Costa and the Monterey Peninsula, the Secretary had been advised of per night room costs in the $175 to $200 range. l-1r. Eggert noted that :if th~ tic>.cision was to be b:1sed on room charges, the Comm::i.ttee should be given gujdelines as to what range the Institute will consider. Fpon motion duly made, seconded and unanimously passed, it was: RES0Liif:D: To 3ccept the report of the Annual Meeting Committee as \v.ritten, with exception of the earlier Board decisi.on to select Narriott's Camelback Inn as the 1987 meeting site. It \vas noted that the Membership had not been advised of the change in structure of future Hembership Meetings. Based on decisions made at the earlier Board of Directors Heeting, the JWJe 1987 l-1eeting will invite spouses to attend Institute spousored social events now open to the Membership. This will, in effect, open the Reception and Dinner scheduled for the Membership on Wednesday evening to spo11Ses. 1'tl'-" Tuesday evening reception is already open to spouses. OTHER BUSINESS The s~c:retary 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 Secretary will draft a report on this suggestion based on FMSI 01967 comments received from faclng mo,.lufacturc~r co111panies. I\ased on earlier discussion noted in the ;nLJUtes of the Data Book and T.:>chnical Committee work, and the insurance question, the Institute has been asked to send r1 questionnaire to the Hembership. This questionnaire will include not Jolly q~estions on gathering application data, but will indicate services provLL~d !:.;; thF Institute and ask for input from the Membership on service needs of the t'\e!nbers. A 1'1ember noted that this questionnaire should ask for the name Jf the penwn in charge of that Hember's insurance coverage. An'tber Hember noted the booklet put out by the Institute a few y<i!ars ~a::k ,,hich highlighted services to the Hembers, and included a history of the Institute. It was recommended that the Secretary up-date that booklet and either offer it to the 1'1embtrs or make an additional distribution when revised. There being no oth.:.'r business brought to the attention of the Hembership~ upon motion duly made, seconded and 1manimously passed, it was: !~SOLVED: To adjourn. Adjourned June 19, 1986, at 9:45 AM. E. W. Drislane Secretary FMSI 01968