Document YX3D6N8q1y2r5KjQgOqQLVrD

PlUCTION MATERIALS STANDARDS INSTITUTE, INC., EAST 210 ROUTE 4, PARAMUS, NJ 07652 . ~!INUTES 0 F THE AtOOJAL 11m!3EI'.SBIP t-mETING ' ( OF THE FRICTION MATERIAJ.S STAN~Wl)l;. INSnTUTB, INC. "tuesday and Wednesday, June 16 and 17, 1987 .. at Camelback Inn, Scottsdale, Arizona REPBESENTATIVES. Ab,;~: (:.)rporation Al:.:t. ~J Auto100tive - Bendix-Fram B~>u~e '3ystems, Inc. Ca.'!.:t:.>J e Corporation C.;:-::: .. ~te.d Brakes :-. Allied-Signal D!:!.~~::-L.oraine Division Fi.'-~:tion Haterial Company F; ::.c~ion Uateriala, Inc. G!JY':.':tian, Cooper ti,tduatriea i-J,-.2.'1 A Caliform Corp. N,r-: ~1-:.n Corporation. ;11~url' Corpora.on l:'.L~1Jm-Tay Uanufactqring Co. Virginia Friction Products, Inc. Wheeling Brake Block l.ffg. Co. ;. r' AC_1!VE MEMBERS - PROXIES TENDERED t:o ..~. Equipment Co. (To E. w. nrlslane) w.F~. ~don Division Products (To E. Drialsne) ::k:l.(.- :ac Hanufacturina Co. ;(To !. lf Drislane) u. :::;, i~uto100tive t-tfg. (To Ronald lWldallr S. ~~.-- HellmQ Cqrp .. (To 1 .. W.. Drislane) Robert E. Nelson Stanley Stokes _William F. ~Tood (No Proxy) Arthur V. Uoore La;rry DOnal d_lL1i.ntEmmanr1lckT r.e.a.s u r e r Larry Belans 1~ Stoll (~Proxy) Jqlu) ~k (~roxy) BQqld ItiindaU . . ta. B.i QriSha. Gerald 'l'hoiJp~ou (Proxy) Edwan( .F. ,Egpr~ . . t-1. !lax Sleeth, 'Vice President Lee Burgess .i PRoXY FROM D. Ted Shumate Phillp Dougherty Haury A. Scandrett Skip carroll F~~ ,,A. Kowaleyk OTHERS PRESENT . Allie!! Auto.,tiva. - BeUi:x: Brake 8Yst. . .;-. 'Inc, (L:lpe) Cti Brake Limited .. Ct-1 Brake Limited Canparts Automotive Int'l Distex Industries, Ine., Distex Indt:;::~-cs, Inc. HICM of Cs.l;.l:ou.._'l Corp. .Hemispheres Intr_rnatioual Mfg. Co.:- Nutum Corporatio[l. ' ~- . . Reddaway llfg. Co. Harwood :Uoyd, Counsellors at X.. ._ .. Friction Hateriala Snndards ,tnet1tute .. John Riop~ll, Gue~t Speaker :een ..Anthony S~ Michael .ltlck C.rpent;t Andy Gagnon Ben Kublin Joseph.Nir William Axelrod Allaa Fenwick Jpaepb .Sisson F. William Barton, President ~dal W. ~e~b, Counsel Edward W. Drisl~. Sec~tary FMSI 01909 ... ,, - 2- Hr. Barton, .' President, l called- t~1e meeting to: order at . 8:30 AM, June 16, 1987. As the first order of business, the President called for a roll call. . MINtlrES'.OF rR!vtous MEBTING .' :.. l:.;. .' .. 'l )' The Secretary advised that minutes of the llembership Heeting of June 16-17, 1986 had he~n distributed. The President suggested that a reading of the minutes he dispensed with, as copies were on hand and no corrections had been su:;g~sted. Upon motion dW,:y:_ made, seconded and unanimusly passed, it Fas: .. . . ,.. ,. ;.~;::nr.VED: Tt>-'*cept; the'>minutes of the Uembership Ueeting ofr _June 16-17, 1986 as written J_:"t . i) :_ \ . PRESIDENT'S REPORT . )I. lrc. ~artoil, President, read this report. Please Tefer t:o EXHIBI'l 1 in t" a.port package. l ;rr. :::2rtott' cftst:~sed regul'atory actions affecting our iJ:tdusrry as _well as ;:o :o-.:..ms taken by tila'il ballot0 l!uring the year. He noted that changes were ? t.~!ned in the fee formula, ehanges had been made in the Consd:ttitfon, a .. :J that det~ls on 'the Inst:itute's finances lrould be covered in reports : < the. Treasurer and certtdn Committee chairmen. He also noted that the . :::.~st11;ute woul,d be a eo-sponsor of a conference on fibers in friction 'materi-als to be held this Fal;l. ' ., Upon motion duly made, ..seconded and unanimously _passed, it was: RESOLVED: To accept the President's Report as written. .' REPORT'ON BOARD OP DIRECTORS ACTIVITIES . :r ..r. T~8 Secretaey reported on activities of the Board of Directors since the J~r.:: 1986 Meeting. The actions reported on Board activity were taken care of by mail ballots up through the Board Meeting on June 15, 1985. The Board approved the Secretary's settlement of a bUl from former Legal Cotmsel for services- allegedly rendered the Institute in 1982-83. The pe./'r-...ent of $3,150 to .!!r. Gorman was a compromise amount, and the charge ' Has made againSt 1985-86 income. Per inst~.:-lY.tion of the Board':of Directors, the Institute Office put certain conting~!:':'' !J1.anning actiotul into effect: .. 1. 'Establish rierrill Lynch QIA A:Kount. 2. ~rranged for Accountants to offer standby services. The toa1:'d unanimotl!lly (5.-to O) approved a revised ''!&commended .Procedures for Ridueing Asbestos Dust During Brake Sarvteing'. ", This ne1t aet of FMS\ 01910 - 3- reco~endations appeared first in the 1987 Supplement to the 1986 Automoti7e Dat& Book. The Directors also approved ( 3 to 1, 1 no reply) reyising the Institute's 1978 'booklet '1Friction Ifaterials t~ork Practices Guide." _No action has been taken on that decision as of yet. The _Board voted to terminate the Regional Memberships of I taps a, S.A. and Pasta Clutch, S.A. both of i{exico, for failure to pay_ their Hembership Dues. During the year, the Board reviewed several applications for Membership in the Institute and voted its approval. Among the applications approved ~-Tere: Active Hembers: Regional Memb~rs: Licensees: Friction I1aterials Inc. of Lawrence, Massachusetts Interfriction USA_of Cartersville, Georgia. Materiales 'de Frlcdon, S .A.E. of Spain RENOSA, S .A. of Colombia Aero Gasket Industries of .Canada Better Brake Parts of Lima. -Ohio Reinz t-Jisconsin Gasket of Uilwaukee, Wisconsin TABCO Auto Brake of Canada Board of Directors ballots are final on applications for Regional 1-fembership and Licensee. Active Members require the additional approval of the Membership. The lloard approved the Institute submitting an azticle to.TRUCKS Magazine. The article ~7as based on the Institute's new "Recommended Procedures for Reducing Asbestos Dust During Brake Servicing." Also1 the Board approved the Institute acting as a co-sponsor of a Symposium on Friction t1aterial Fibers to be offered in conjunction with the SAE Meeting in Atlantic City this October. In addition, the Board at its June 15, 1987 meeting, took several actions of interest to the Hembers. Highlights of that meeting are discussed below. The Board recommended to the Membership an Expense Budget of a little over $140.. 000 for the 1987-83. fiscal year, approximately 4.5% over the expense budg$t for the.: 1986-87 year.- Details will be in the Budget Committee report. Acting on decisions made at the June 1986 zqeeting,. the Board is recommending to the Membership a new fee formula calculated with a $1,600 basie fee,. plus category charges fot' each of the following product lines: (1) Disc brake linings (2) Drum brake linings; (3) Brake blocks; (4) Clutch Facings. The Board attempted to have this formula "revenue neutral" when compared to last year's formula, and tried to have a minim\Dil fee increase for those whose categories increased because of the formula change. llore details on this will be in the Fee Formula Committee report. The Board is recommending a constitutional amendment on the eligibility of candidates for Director of the Institute. The proposed amendment will be submitted to the Membership by mail ballot, but it essentially limits Board membership from affiliated companies. The working was prepared by Legal Counsel and would limit membership on the Board of Directors to FMSI 01911 - 4- only -~ne Director from aff~l:l..~,t.ed. c~mpanies, with affiliated companies defined ~ those with 10:r or more colllllOD ownership. -~ '. > lb.e Boara'ac~epted the report of the Amlual Meeting Committee which calls fo~ the 1988 Uembership ~eting to be held in Monterey, Califomia. - ~1e.r At'the. 'meeting, ' .. ''. ' the Board 'approved an ' application for Regional Hembership filed by Industria de ~ala~~s" (Indubal) of Santiago, Chile, and voted to -, terminate the Ltcensee .M~~~irship of Toledo Pressed Steel Co.. lb.e fore- T going summarizes activit:l.es of the Board since June 1986, including high- lights of the June 15 Board meeting . TREASURER'S .REPORT Mr. Larry Hintman, Treasurer, read this report.. Please refer to EXHIBIT 3 in the report pa~ka8e ... , .. The Tre88Urer ptoj'~cted. an exces~ of ineoma ov.er expenses of a little over $9,600 for 1966-87. Be noted that the report is a projection, based-~ _ ......./' estimates for income and expenses in May-June 1987. The most sign'flicant variail-ce a~'iref6ped from sales .of catalogs - this being in the $10,000 neighborhood. 'This came about because of our substantial overrun with the 1986 book, our l~rite-down to $1.00 at June 30, 1986, followed by the sale of all catalogs from the overrun during 1986-87 with practically no costs associated with the revenue in this year. ',- Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To accept the Treasurer's Repo1iC a writteu. ~!BERSHif COMMITTEE Us. r.ita Grisham, Chairman of the 1-Jembership Committee, read this report. Please refer to EXHIBIT 2 in the report .folder. i'fs.-.Gri~ham& report s~rl~ed the ~anges ~n.Uembership during the year. These noted that; Active Members increasad from.21 to 22;- Regionals showed no change at: 27; Licensees increased from 21 to 24 .. As notedd;n tht!' report on' Boa~; of Directon activities, the Board terminated the Licensee lfembership oj Toleclp Pressed .Steel aa its J\Jde 15 meeting, and, accepted. the Regional t-1exubership :application. filed by Industria de Balatas ('Indubal) of Chile at the same meeting. Upon motion duly made,. seconded and unanimously passed, it was: RESOLVED: To accept the ~Jembership Committee report as written. fMS\ Q'\912 - 5- HEALTH AND ENVIkON11EN':L'AL AFFAIRS COlll1ITTEE ' Ns. R-f:.t., C~:f.sham,: t.c~ ht~'rniari of' the Health ' and En:'rl,.ionmental Affair. Commit- tee, rea~ thi~., reporf;'t. Please refer to EXHIBIT 9 in the report package . -.~ j. .' .j Ms. :Grieh~~ rep~rted on OSHA and EPA activity durins the past year, includ:i.11~ i::~;:: .:-cqutrement of NIOSH Hethod 7400 for measuring asbestos dust c<mr.c~.t~.<.t:i'.or.s. '!he EPA hearings on the proposed asbestos ban were dis- cur.;~t;.~ o In cor:;n.ents on. the Chairman's report, a Hember noted that the Alternate i-laterials Institute mentioned as a possible co-sponsor of the l!aterials Symposium has Hembers such as DuPont and Owens-Coming Fiberglass.. That group has si_ded with-EPA's proposed ban on asbestos. 'A member noted that a contract}fo.r evaluating the proposed ban had been let by EPA to the American Society of Hechanical Engineers (ASME). The Batelle Institute worked with AStm in preparation of ita report to EPA. Several comments we~, ip, ti~e- draft ASHE report statihg' that there was not a sufficiellt time f.r~ al_lowed to com:plete a ban on asbestos in friction products. In particular, there were eleven entries i;1 the docket which asked. that asbestos be permitted in replacement brake lin:l,ngs. This input came from United Stat'O'S as lfell as foreign car manufacturers. A member discussed contacts with Am,. 1~11 and Christina Augustiniak at EPA, and there were indications-' that a longer phase-in might be permitted for friction products as against other asbestos products. The EPA focus is on dry brakes as a product, and wet friction applications have not come under the regulatory spd-tlight. Some back-off ~1as noted in regulatory positions on the 'proposed a8bestos ban, where even the Natural I:.esourceiJ Defense Council (NRDS) has noted the possible carcinOgenic effects' of certain- non-asbestos fibers. Despite certain objections-, and 'reci!nt: concerns on substitute fibers, ir appears that EPA ldll be proceedi~g with their propo_sed ban. The OSliA regulation!J that nent into _effect -as of July 21, 1986 are difficult, but obt'ninable for most friction prodUct linea. The OSIIA regulations appear mare practical:, and -the.ir_ Appendix F Cfork Practices and Engineering Control for AutomOtive Brake P.A!pair Operations) is ~onstructive and considers the cost and practicdity of containing asbestos- dust concentrations in the brake repair area. It:Hi not likely there will be signifi- cant changes in the OSHA regulations. In the regulatory agenda, EPA has_projected June 1983 for its rulemaking on the proposed ban on asbestos products. It is possible that friction products manufacturers uill have more than five years for phage-out. There has been: ~Jome interchange betl7een EPA and the rtational Highway Traffic Safety Adminis-tration (UHTSA) as concerns the proJ.losed asbestos ban and new brake sysrtems sl:andards. There l-lill be a- challenge in meeting the anti-lock-up ariddront/rear balance require-nts of the proposed noT 135 standards~ witbout asbestos drum brake linings for the rears. FMSI 01913 - 6- Even with the recent concern on asbestos ubstitute ma~er~als, there does not appear to ue any early action anticip ted from EPA as regards substitu;:e !i~e.r.s in. friction materials. As re ards substitute materials, the ir.i.l&t!.~Jr>:.r.egulated by OSHA's Hazard Co !cation rules (29CFR 1910.1200). ThiR jf- tilC regulation for labeling and terial safety data sheets (MSDS). 'vhUe !'~:;sL of the substitute fibers have ot been established as hazardous, the::" Ls ~: '!~l~stion,aad it: .appears to be n the best interests of all to latcl uith t:-'Jre than "Refer to MSDS." Som manufacturers are suggesting the sa;u-~ pre-:au~ions for their non-asbestos p oducts as with their asbestos mat-:r~_aJ.s. Two l!-mbers stated.that they were labelin their non-asbestos friction pro:!l~cts, urging caution on raising dust. Both volunteered to send copies of this labeling to the Institute. Coun~el stated that if there is a reason o believe a product is hazardous, there is a duty to warn. Tnis duty to wa n exists even if it is accompanied by a disclaimer. UpOI. motion duly made, seconded and unanitOOusly passed, it was: :.::sOLVED: To accept the Health and Environmental Affairs Committee report as written. HR. JOHN RIOPELLE - GUEST SPEAKER The Secretary introduced Hr. Riopelle, who had worked for Allied AutQDI)tive's Bendix Friction riaterials Division for ~ny years, and who had retired late in 1986. Mr. Riopelle had chaired the Institute's Health and Environmental Affairs Committee in recent years, and had guided Institute responses to certain EPA and OSHA regulatory proposals during his work with that.comadttee. .i'ir. P.iopelle had started with the Bendix Corporation soon after his early days with the Kaiser-Frazer Corporation. Among his different responsibilities with Bendix were engineering, sales, quality control, and enviro~ental affairs. He also had been in charge of the Bendix Cleveland, Ter:..Lt.>Rsee Plant and had start-up .responsibilities at a new facility in Pa~:Hlm City, Florida. Hr. Riopelle is well qualified to g:f.ve an overview 0L1 roe;::.Vi.;:onmental qUeStiOns With particular emphasiS On asbeStOS lir. ru.opelle discussed the worldwide rules as regards asbestos in the workplace. In his prepared discussion, Mr. Riopelle noted the permissible exp~sure levels and effective dates for chrysotile asbestos regul~tions. The d~ta indicated that, with the exception of Norway where the PEL was 0, the United Si.:gtes had the most stringent PEL: 0.2 fibers per cc ( fibers per ml). He noted that the USSil was alone in having its PEL expressed in milligrams per cubic meter. The USSR PEL was 8 mg/m3. Conversion to fibers per cc is di:fficult. The United States is one of only a few countries with an Action Level, and that too (at 0.1 fibers/cc) is the most stringent. Mr. Riopelle noted that there is considerable concern as regards the United States requirements. Is the Industry better off with a total ban as proposed by EPA, or would it be better to attempt to comply with the difficult FMSI 01914 - J... -_ OSHA workplace -regulations. The Ame~~ m~ufacturer may face the challe:lge of lC"~er cdst friction pro~uct$ ~ fTOm foreign manufacturers with less stringent or non-existent workplace regulations, where he in turn must add the costly control equipment and, ~c:yr the additional costs which are inherent in complying with ~he ~~ ~rltP.lac regulations. Ur. R:lopelle cited work. that Bendix had done to lower dust counts, and adde::! t.~"~- _this was done during .a ch8Jl&eover to the -r~~uir.e.d m:omi l:ethod 7400 b::: nt-astiring asbestos dus_t coQcent.rations. '\-Jhile measuring ccncen- trade!:.:.) a significant difference was noted between the new and the old dust counts. 'lbe new counts were,.J;~n&.from. about 2/l to 3/4 of the old' counts, and they were being reproduced with more consistency. After giving a thorough cleaning to one factory area;. the counts were: down appreciably, and the question arose as to how much of the reducd.on was due to the cleaning and how much was due to the introduction of NIOSB Method 7400? ~Ir. ;Riopel!& ~rged the lfe.,ers to prov.Ldtt data to tha, Iast-itute Office on its- questiOnnaire on fib.e1: count.-- 'lbe Secretaey-:.ytU r~l this- questionnaire to tha- !.!embers. The Secretary was a&ked to distributa. copief1 C>t:!Mt. Riopelle's report to . the ~!embers. He advis8d that this will- be ocrit With copies of the. Mil1.utes and the Report package. Upon motion duly made, seconded and unanimously passed, it was: RESOLVED: To extend. to Ur~ Riopelle t~1e Institute's thanks f9r_ bitt earlier set"'ice as l'h~.ir.:n<m. of the Health' and Environmental Affai-rs Colillllittee and his presentation at this meeting. NOMINATIBG COMMI'l:TF.E Hr. Robert E, Nelson,- Cl\airmal) of the Hominatin8 Committee. delivered this report. ',The~ was no writtetl report~- -.. - . Mr. ~e_ison n~ted that the Consdtutioa calls ,for sP.'ren meUJbert't:- of- the Board of' l>i rectors. Due- to Mr~:- Maasies 'aad: Mr:o C-'1..ina t r::H i. ~~tiODS dur- ing the 1986-87 year. the Board has been functiod..:!::; for the l.;~t eight months uith only S Directors.-- ., The Chairman advised that three o.f the Directors had been 'elected in 1986 to two-year terms which wi.\.1 not conclude until June 30, 1988. 'Ihese are Hr. Nelson, Hr. Belans and ~-:IH. Grisham. Two Directors are serving terms which will end on June 30, 19S7. 'lheae are ~1r. Uintman and Ur. Uoore. The Committee recommends the following nominations: . . ' Hr. Arthur V. Moore of Carlisle Corporation to cODtinue serving on the Board for an additional two year term to end in June 1989. Hi'. Larry Mintman of certified- Brake to continue. serving on the Board for an additional. two year term-- to end in June' 1989-. , FMSI 01915 - 8- i-Ir. Ronald Randall of HIC1 of California Corp. to be added to the Board a:~:l to E"~7''iJ s: twoyear term to end in June 1989. H-.:. u. H:Y .~ 1.::!eth of Virginia Friction Products to be added to the Board and to sc.-::-.':- 11 one year term to end in June 1988. The Pres:i.i.~nt asked that these four names be placed in nomination to serve the terr-:s as noted above. The President then called for nominations from the floor. No_. ad!iitional nominations were made. . '. --~ ' Upon motion d~ly._ made, seconded and unanimously passed, it was: RESOLVED:. ,';['hat nominations for the Board of Directors , 5, ;~~. <!~osed. T.le Secretary was ..directed to cast one ballot for the election of Ur. Arthur V. Hoore, Hr. Larry Hintman, and Mr. Ronald Randall to serve two year terms until June 30~ 1989. n~e Secretary was directed to cast one ballot for the election of Hr. 11. Max Sleeth to serve a one year term until June 30, 1988. The Secretary advised that the ballots had been so cast. Further, the Secretary advised that with the election of these four Directors, that the Board had the required seven members. INVESTimNT ADVISORY Cffi1MITTEE Hr. Art Hoore, Chairman, read the Investment Advisory Committee report. Please refer to EXHIBIT 4 in the report folder. The report projected a little over $288,000 in investment assets at June 30, 1987, despite about a $3,000 drop in investment income this year. The increase in assets reflects the exc~s of income over expenses realized during the 1986-87 fiscal year. Investment income is projected to drop still further in 1987-88 based on the drop in interest rates. Investment income will iag interest rates as we have continued our policy of investing in only United States Treasury notes with 3 to 4 year maturities, and the lower yielding notes are now almost half the portfolio. Still, over $24,000 investment income is projected for .the' current year. Upon motion duly made, seconded and unanimously pe;.:;s~d, it waq: RESOLVED: To accept the Investment Advisory Committee ~P.~~rt as written. BUDGET COMMITTE~ Ur. Sleeth, Chairman, presented the Budget Committee report. Please refer to EXHIBIT 5 in the report packag~. The Committee recommended an expense budget of $140,085 for fiscal 1987-88. n~is .is about a 4.5% increase over the 1986-87 budget. Details of recommended budget it~ms are listed in the report opposite the budget items for 1986-87. The main items of expense in the budget are Salaries, Rent and FMSI 01916 - 9- salary-associated Pension Exnense. ~ere are ~o:major line item changes proposed i:1 the 1987-88 budg~t. . . ~. - '!be Secretary noted that t~~ ltpa.r~ of Directo~ at its earlier meeting had revie,~ed this budget and re~o~ed its submission to the membership. A Hember asked if the planile~f 'poatage increase would impact this budget. The Secretary replied that it was his 'understanding that any postal increase will not\.be ef~ective until Apr1,.1 1.988, which would .mean that we will be operating; at current rates 'for' 'most; of the next fiscal year. The increase had been considered. The discussion tumed to the bad de'Qt.s reserve question.. The Secretary noted);hat the new tax code does notpermi.t us~ of the bad debts reserve method' of accomting. At. the Board lll8eting, it wu decided that the Secretary would. ask our Accountants for some guidSllce but the. Institute may go to the 'specific. write-off method in 1987-88. With the specific write-off or the reserVe method, the budget is calling for a. $3,0Q()' charge in 1987-88. Upon motion .duly made, se~onded and_. unanimously passed, it was: RESOLVED: That an Expense Budget of $140,085 as detailed in the Budget Committee report be approved for the 1987-88 Fiscal Year. FEE OORHULA COHMI'l'TEE Itr. i:'-obert E. Nelson~:, Chairman, presented this Commit;t_ee r~ort. Plea8e refer to EXHIBIT 6 in the report package. Th~ ~a.irmari uoted .tti:~t j,t had been resolved at the Jun~ 1~~- Meeting$ ' that a neW basis for the fee formula would be \.used eff~C:tivt!,'july ~. 1'987.' The old formula had four categories: (1) Brake lining&; (2) 'Brake''Blo~kS; (3) the Clu new t ch for Facit mula lgs; w9u i (4) dh .Nel~ ave t .un he -lined Qra foll~~ng ke c: shoes. ategari e s I ; t ( l h ) a d pt bee .sc n.7dec brake i ded l:l.r i that ings; .(2) D~:um biake .linings; '. (3) Br. ake. B. l ' o c k s ;. (.4. ) Clutch Fac~ngs._ .~. ' -. Essentiatiy, :tlie n~ formula waUld drop. the_ "New un-lin~. brake shoen category, aD8 would split the earlier ''BrakE! linings" catego~ into tloTO categoriea: "Disc brake linings" and "Drum brake linings." It was the intent of the Board to reco11111encl~ 11 nt5. formula that would be "revenue neut- ral'' at least in the first year-o'f" use TI1e Committee. in. its report. came 1 up with several formulae that woUld proL duce equivalent income with the 1986-87 fee schedule~ These were referred to as Plans 1, 2 and 3 in the report. Um~ever, the Chairman nated that a fourth plan was discussed and re.~ommended at the_ Board Heeting on June 15. It was felt this plan was more eq'u}~Bc\'>_le than the. others, and would have the lowest iJPPa.ct on thos~: me~~rs~S~~- are moved from one category to twO categories because of the c1larig~- ip formula. Es!Jentially the ''Pla11 4'' formula is : . . .. ~ - ~ ~' ! ,, ... Basic . Fee of ... , $1,600; ,. r .Fi~!'ft .. "t . t' categories - $250 . each; next 2 categories $500' each. . . . . : . . . , :, .. fMS\ 0'\g'\7 - 10 - Thi'3 u~n1 rl trigger neu fee levels as follolY'S: I1en.~r i~ one category: !-IetJ~ :;r. ~-il two categc~ir.s: 1J~~T"t1:.:: !" :!u three catc~l::.r:tes: l~en:!:::J i.n four categori(:!s: $1,850 per year 2,100 per year 2,600 per year 3,100 per year Th~ ~ourd.rt!commended adop~io~ of this new formula. The membership, per t}~ Ccnstitution, must approve the fees charged Active Members. Upon motion duly made, seconded and unanimously passed, it was: RESO:.L; V..E'D' : ' That the fee formula for Active Hembers (and Regional Me~ers .with Active lleni>er rights) include a basic fee of $1,600 plus a $250 category charge for each of the first two categories in which a Uembet participates, and a $500 category charge for each of the laet two categories in which the ~~mber participates. Categories will be: (1) disc brake linings; (2) drum brake linings; (3) brake blocks; (4) clutch facings. INSTITUTE PENSION PLANS' The Institute has two pension programs: (1) A Trust set up in 1979 to pay Hiss Duschek, retired Secr~tary of the Institute, $550 per month for the remainder of her life, and (2) A Simplified Employee Pension Plan (SEP) funded with contributions to eJ]lployee IRA's. See EXHIBIT 10 in the report package. Hr~ Dr:i.siane presented tltis report. The only paper work for the SEP Plan for current employees is drawing the chfi!cks for dep~it to the employees'. IP..A's. Contributions of $11,250 were projected for 1986-87. The Du.". 'chek Trust showed a net invasion of principal at December 31, 1986 or- ~. Ettle less than $4,300. '!be Trust stal'ted with a contribution of $.::s, G:JO in 1980 and there was approximately $50, 700 in assets on hand as of December 31, 1986. The Trust has made payments of $550 monthly for b~neZit of lfi~s Duschek sine~ January 1, :1980. ,. DATA BOOK AND TECHNICAL COMMITTgE Mr. Francis. Hudson is Chairman .. of the Data Book and Technical Committee. Hr. lielson read the Chairman's report. Please rPier to EXHIBIT 8 in the report package. 1 The report noted highlights of Committee activity during the past fiscal year. The major business was actt..-d on at. a meeting on April 29; 1987. allThe Committee resolved to have a complete semi-metallic disc pad app'!ica-, tion bulletin issued 'for such usage from the 1960's through 1987. . Changes were voted for the Data Book including a consolidation of shoe listings from two to one; reference. to discontinued numbers ~en the "14 year rule" drops an application; and a special black indexing; t~ for the Catalog to indicate catalog sections. FMSI 01918 - 11 - A Hember cotamented on the re-print of the Clutch Facings ( Catalog 851) that was noted. in :the Committ-ee rReport. The Secretary advised that this was strictly a re-print - there was no new data in the 1987 re-print over that whi~! w~_. ~in:,the ;1985 edition. This Hember asked about interchange informatioo on foreign clutch facings, and asked that such information be printed liThere available. The Secretary asked to see examples of this interchange, and noted~hat the numbers in question were British Friction Hate rials Council numbeis. - The British Council (as with Ft1SI) copyrights its publications and its BFHC Numbers. The Secretary noted that he would not publish information which is copyrighted by others, but that he would send those Hembers participating in the clutch facings category an up-dated list o1 tJ;le. FMSI/BFMC clutch facing- cross-over data that he has on hand. . ~. r 1. A lfembersuggEist:ed that the Uembership be advised that they can order Automotive Data Boo~..without the FMSI cover, when the catalbg is first printed. Two or three :f.fembers almost always order the catalog wi'thout cov'er, and then have their own cover installed. There is no dfscotmt for the 11No Cover" as it is a special item. Also, any overrun or underruo goes to those ordering without covers pro-rata. The ''No Cover" optioo is only available for the full Data Book. . (The Supplement is a self-cover). Also, this ''No Cove~" option is only available when orders are being solicited for a newly published Data Book. Once the catalog is off the press, all remaining stock takes a cover and the 5 hole punch. A Hember asked that' rivet pattems be shown on the steel illustrations in the catalogs~ The Secretary asked- if this was a reference to disc brake . steel1 As he was referring to disc brake steel, the Secretary advised that they had handled this same question three or four Y.ears ago. It was then referred_ to the Data Book Committee,: and turned down. There is not suffi- cient room to detail drill patterns and show differences when they are of small dimensional difference. Also, theInstit~te added reference to number of holes uhen more than one shoe number is illustrated by one drawing. Also, the full FMSI lining number is added to the shoe illustration so that .. one can pick the exact lining which in tum cover& the drill pattern. There is not sufficient room in the illustration section to show this detail. In response to another question along these lines; the Secretary stated that the Institute is now providing prints of disc steel with drill/counterbore waspatterns where original equipment bonded or ~ntegrally molded where that information is. avai.lable. It was noted that for drum segments, several Original Equipment manufacturers are not providi.ng rivets according to the SAE rivet dimension standards. 11r. Nelson noted that the SAE Brake Committee has dropped future responsibility for rivets, and turned it o~t- to the Fasteners COmmittee. It was suggested that the Data Book Committ~e consider the SAE rivets., and go on record as favoring the continuance of SAE J663b (the SAE rivet standard) and the .further up-dating of it. A !1emher noted that the SAE ~V'o".lld be asking its Hembers to ballot on cancelling SAE Recommended Practice J662. This is the brake block chamfer standard. i:fernbers expressed disagreement with cancelling J662 as several manufacturers use J662 as a reference to designate the chamfer for their blocks. The Secretary was asked to refer the subject of cancellation of J662 to the Data Book Committee. FMS\ 01919 - 12 ;_ Upon_'tlf6ftoWduiy.'made, secbnd'ed an~~l,m~imously:passed, it was: ; j.~ .': \..::.:. .t. ' : . - .. r . ." . : ."J . ';. .. . . . " . . ~.!O:L.VE'D: '- To ac~ept the .Data .l3ook. an4 Technical Committee report "!'"' .:r.<,~: 'as written. .." Hr. 'IHll :Hood; Cha1t'lll8!1 6! : :c' :!1r.ake P~r~ormance Study Committee, presented th::s ':,:cnore.;,. Piea9e refer to ~~IBIT 7. :. f ::~ .. ~ . .' tr .. ..: 1' :' TherCliair'naiCtioted that proposed sAE JlSOl, 'Ji802 rec01111118Dded practices for friC:ti6n _;rati'iig' and marking had been balloted, and that there were 3 and 4 disapprovals respectively. Mr. Arne Anderson of F.ord Motor Company who ahad':.cffaird 11 special SAE Task Force 'to c:Ome 'up with new brake 11.n1ng effec- tf..renass tartng"s and marking procedu.l;'e& has 'retired. Ur. Randy Petresh of RN.~.:v:~J.l na8' taleii Ovet' this Task Force. t-lith the ballot disapprovals, d~c.nges ~fl. 'bE! necessary in tne proposed Jl8.01, J1802 procedures. ' . :,,' ;~ ' :'! \ :,.;. ; ,~I ' ~ and~Ir.llodd;ga\re >a~b'rief up:..dattion NHTSA rulemaking with DOT 105, DOT 121 the proposeef DC11! 135 Systems standards, and he noted that Federal SpecificatiOn 'HH~t,:;;..'36.1F ~as- replac.ed with '1IH;.;L-361G. Ur. Wood noted that. several interestE(cf'pi!rties' were not aware of the new Sped.ficatico. As regards Feder&:! Specification IUI-L-361C,. the Secret~ry advised that .he was made at.faie of the changes iri that Specification by Carl Halker.. Mr .. Walker had' teei'vE!tf"a eopy of HH-L-361G and had written. to SAE concerning.. inuse of"'J'uel- a.S:'th'e basis for the specification. l:IJ'. l>rlsl~e; reviewed the. changes ttnch'rporated in mi-L-36lG, in detail September 1986 and noted that' som~'oF the alleged changes had already been adQpted in HH-L-361F. However; there Twei'e certain changes in the specifica~ion that were sharp differences and~'eould be challe'#ged. . ' ' . ' . ; ('.. . : ' 1 . .. : - ' '' '! Copies' ~f ~rr. Dris~ane's cc;im(,ariso~ were sent to parties seeking informa- ti~h on mti.L-361t';-1 as well as to Mr. Walker. Comments were not submitted to TARCOif.1' The Institute apparently 11ad contacts when this Federal. Specifics~ tion lV'a:S the resp~)nsi~ility of the Defense Const~uction Supply Center in Columbus; Ohio.' 'li()llever, as the :responsibility is now apparently wi.th the.. us A:rmY Tank Co1111!18itd in.Warren, Hichigan, new individuals have entered the' specification writing business, and adopted HH-L-361G without input from either the Institute or i~dividual members thereof. There were several changes incl;;ding a ban on asbestos materials "unless specif:!cBlly permitted.," an unrealistic tolerance of 025" on the inside ra~L.IS 'of <lrum brake linings, a flatness/parallelis.rt specification change, and -sl:elf" life for pre..;cemented lining time/temper.eture changes. The Brake Performance Studycdmmfetee will review these changes and decide on comments to the Specification writers. 'UPC?tt n0t"tC"n dt~:lY _made~ secondP.~. .ind unanimously passed, it was: t"J If . ) ,:'1 F-"'1:SOLI?ED: To actept the report of the Brake P4!rformance Study Comiid:ttee as written.. ' I . -. FMSI 01920 - 13 - PUBLIC RELATIOHS ACTIVITY The Secretary advised that there t-lould bE: no Public Relations Committee P.eport. ilr. Belans had volu.'"lt.eered to help_ \-Tith. public relations releases thtough tb~ !-I.K. ;Porter Conp~ny's Adve'rtis-:i:ag Group in Pittsburgh. Bec~~h?.tPcrter' s s._~e of t>e i.iuutingt~m -~ac~lity to Friction Material Company,- this avenile of public relations dt,ptribution is no longer available. Hr. nelans indicated t'hat tite releas~~ on election of officers at the June 1986 meeting \-res diGt.::ibuted, and the ~ouncement appeared in the trade press. ANNUAL HEETING COHHITI'EE; i1r. Ed Eggert~ Chairman of the Annual i:lee#itg; Caimiu.ttee, read this report. Please refer to EXIIIBIT 12.- The Chairman"recouunended that the Ihstit.y~~!. hold its _June 1988 meeting in ~ic:1terey, California. He specifically noted- the l!onterey Beach Hotel, and had contacted them for group rates. As. there_. had been earlier objection to the higher rates at two locations in tlle'Itonl:erey area (Lodge at Pebble Beach and Quail Lodge in Carmel), Hr. Eggert noted that the group rates at the lfont~rey Beach Hotel l>Tere competitive. It had earlier been noted that the Board of Directors had approved the Chairman's report at their meeting on June 15. Hr. Gagnon, who travels in that area and plans to be in !Iont:erey/Uorthera California this SUDDDer, had earlier volunteered to check out the Honterey Beach Hotel facilities. Hr. Randall also volunteered- to. check out the Uonterey Beach HQtel. The Secretary uas advised to eive Hr. Gagnon and i:ir. Randall specifi'cs on the l'Ionterey Be~ch Hotel and the parties to contact. The Directo.r~J~. at the earlier meeting, had selected Sawgrass in Florida as an alternate meeting site should the Honterey arrangements not work out. Hr. Barton had earlier asked the Secretary to check out the-golfing in 1-ionterey. The Hotel indicated it_ coulc;J,_ make reservatio~ ..ahead of time at tt'lO desirable courses: Carmel Valley Golf ClJ <<:td r...anch~- Canada Golf Club. If for any reason those courses wE::re filled r::, ~ ;,;:1e Institute t.ranted starting t:!.rr-':!s, other courses would guarant~e I.;K1:-up. The Honterey Beach Hotel :-<.(i.v-:1 t-;:ed that the courses at Pebble nee.c!-. m:!J Sf,ygl?2 are open to the publ~-~- bJ-::. they do not book advance reservations. n~>se lvishing to play thosa c0u.rses must check in at the clubhouse on the day they wish to play and then get starting times. It tV"ould appear that there are reasonable golf facilities avail~b1.e for our l1embers' purposes, The Secretary asked about meeting starting dates. lfemfiers indicated the Sunday starting date (for Directors' reception) that was used this year was satisfactory. TI1e Secretary advised that he would book facilities (after site inspections) for Sunday arrival June 12, 1988, ~th departure date of Hednesday June 15, 1988. Upon motion duly made, seconded and unanimously passed, it was: r-ESOLVED: To accept the report of the Annual Heetine Committee as written. FMSI 01921 . ~: ~-. '.: .- . - 14 - ,, HISTORICAL SALES REPORTIUG ,.. The Secr~tary ~porte9 on- the In~?titute' s Historical Sales Reporting Pro- gram.. ~lease refer to EXHIBIT 11 in the report package. Essentially, the sales reporting statistics program was unchanged from that in previous years. However, he noted that there were more difficul- ties with the data sent to the Accountants than there had been in previous years. As a result, the reports.were usually late, and corrections had to be made subsequent to the report. The difficulties were apparently the result of changing r~ponaibilities at reporting companies, either with new.people reportins, or with significant changes in the structures of re- porting companies caused by acquisitions and mergers. The l.fembers ~~ere asked to revi.ew each report .before sending the data to the accountants to ..be cer. ta, in it was consistent . with earlier data Upon motion duly . c;Ie:,: seconded and unanimously llassed.,. it was: RESOLVED: To accept the report. on Historical Sales Reporting as written. INTRDDUcnON OF OFFICERS l1r. Barton, President, advised tl!at the newly elected' Board of Directors had elected the following Officers for .the 1987-88 Fiscal Year: Hr. F. William Barton, Reddaway Mfg. eo., President Hr. w. Max Sleeth, Virginia Friction Products, Vice President Iir. Larry iiintman, Certifi~d Brakes', Treasurer llr. Ed~~rd ~ Drislane, Friction Haterials Standards Institute, Secretary All four Officers had served for the 1986-87 Fiscal Year, and were reelected to $erve until Jtme 30, 1988. : '' ***** There being no other business brought to the attention of the Hembership, upon motion ~uly made, seconded a,nd unanit!W)US],y passed, it was: liESOL~: , T~ adjourn. Adjourned o~~ :i~e l7, 1987, 9:20 AM. E. \-1. Dris l.ane Secretary ..:: _;.., '.!i FMSI 01922