Wednesday, August 3, 2005
Grand Rapids, Michigan
Called
to order at
9:08 a.m.
Also
available in .pdf format
Call
to order: 9:08 a.m.
Present at start of meeting:
Current Board of Directors: Janet Klug, President; George Fekete,
Ken Lawrence, Ada Prill, Vice Presidents; Lloyd de Vries, Secretary;
Nicholas Carter, Treasurer; John Flannery, Ron Lesher, David
Straight, Stephen Washburne, Directors-at-Large; Peter McCann,
Immediate Past President.
Incoming Directors: Alan Parsons , Wade Saadi, Wayne Youngblood.
Peter Martin arrived later.
APS Staff: Executive Director Robert Lamb, Comptroller Rick Banks,
Editor of The American Philatelist Barb Boal, Director of Administration
Rob Haeseler, Librarian Virginia Horn, Director of Shows & Exhibitions
Ken Martin, Complaints/Tenant Relations Manager Wendy Masorti.
Society Attorney Virginia Eisenstein, APS Dealer Liaison Jim
Dempsey
Other members: Kurt Kimmel, Foster Miller, Steve Schumann,
I.
President’s Welcome (Klug)
Klug introduced the new Directors, APS staff, and guests in
attendance. She further welcomed them all to raise their hands
and speak freely on the topics at hand.
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II. Executive Director's Report (Lamb)
Audit Statement: This is a final statement of how the Society
and the Library performed in 2004. On page 2, the Total
Net Assets represent the value of the Society and the Library after their
obligations have been satisfied. Last year, the total net assets
of the Library and the Society combined grew to $6.5 million,
up by $554,000 or 9.4% from last year. If you look at that growth
holistically, that represents a very positive number. If you
look at the two organizations separately it has not been an even
growth. The numbers for the two organizations are discussed on
page 16 of the audit statement. There you will see that the Library
gained $712,000 while the Society lost $158,000. The Library
growth was due to real estate development.
June
Financial Statements: Lamb first called attention to the
decline in the total investments shown on page 1. He further
discussed Equipment figures which show $1.8 million worth of
equipment including $1.2 million in computer equipment. This
is a misleading number. The APS carries equipment on inventory
as long as it is being used, no matter how old it is and tries
to assign a reasonable depreciation schedule based on the expected
life of an object. Almost 80% of computer systems have exceeded
their life expectancy. It shows Society is using old equipment.
Page 3 shows that dues and admission are running $61,507 ahead
of the budget, but this is not good. With the elimination of
the early payment discount, the APS budgeted an increase of $150,000.
It is currently halfway through the year, and this indicates
the APS will get about $120,000, $30,000 less than expected.
The poorest
performer is the investment earnings. For the first half of
the year the APS has earned only $7,866 against a very
modest projection of $30,000 for the year. Lamb points out that
this is only the income from the General Fund. On June 30, the
General Fund contained $1.1 million. This is an earnings of less
than 1%, a very unsatisfactory return of the Society’s
money. Carter will present some proposals later.
Bright spot: The total expenses year-to-date variance is minus
$84,817. Staff has reduced expenses, and expects to maintain
that through second half of year. Expenses are running about
$120,000 for the year better than budget, which means there's
a good shot at a balanced budget, although he can't promise it.
Saadi: But the APS still shows a loss? It's not making money?
Lamb: No, but some other factors, such as poor investment returns,
hurt.
Fekete: The
last column shouldn't say "annualized."
Lamb: Provided
handout of profitability by Departments, and pointed out that
the numbers don't tell all. An example is the
Sales Division, which shows $461,000 in income and $581,000 in
expenses. Therefore the budget shows minus $120,000 for the Sales
Division. This doesn’t tell the whole story. The Sales
Division continues to contribute positively by paying rent of
$22,000 a year, $68,000 in overhead (which subsidizes the Executive
Director's office, Accounting and mailroom operations) and pays
$5,000 for ads in The AP. In addition the Sales Division
contributes $167,000 a year directly into Insurance Fund. That
comes from 2 sources: each purchaser pays $1.50 per circuit,
and every seller pays 2% of value when the book is retired. Sales
Division is now probably more profitable than ever in its history,
since downsizing of the staff and introducing other economics.
Income from the Internet Sales Unit is not as dramatic but it
is still a nice number: $77,000. Expertizing income is $29,000
and shows are $16,000. Probably should add $31,000 to negative
side of the AP as subsidies from other departments should count
against it.
Klug: Rent
doesn't go to APS. It goes to APRL. That doesn’t
really affect these numbers for the APS side.
Lamb: Doesn’t
affect APS numbers but there's a need to look at the total
picture.
Washburne:
Insurance fund — is this referred to as the
float?
Lamb: No, this has nothing to do with investment income. This
is new money coming into the insurance fund every year. Expenses
come out of it. So, it is not growing by that amount of money
but it is contributing to the wealth of the Society.
Straight: AP income comes from advertising?
Lamb: Yes.
Carter: The APS tells members 50% of their dues go to AP.
Saadi: Thought Sales Division was going through a hard time;
is that just hearsay?
Lamb: Sales Division has never made a profit on operations.
It has had a very big float. The APS earns money off that. The
APS was therefore saying Sales is making big bucks because of
the earnings off investments, so it didn't have to worry about
making the operations efficient. When that investment income
disappeared, the APS had to make the operations efficient and
from that point of view it is more profitable then ever. The
Sales Division peaked in 1998 at $2.57 million gross sales. Gross
sales have declined to $1.7 million this year, a decline of $750,000.
Throw in Internet Sales at $1.2 million, and total sales are
higher than ever in APS history. But if you look at the traditional
Sales Division alone, there is a continuing decline.
Lawrence: Numbers don't tell the whole story. The Sales Division
is considered to be the second most important membership benefit,
after the magazine. And it is very important to clubs who consider
it to be one of their biggest attractions. One problem is that
every time postal rates increase significantly, they increase
more for insurance rates than for the first-class letter rate.
Therefore every time that happens it becomes more expensive to
look at a sales circuit, and the long-term trend is not good.
Next board needs to think about how to keep Sales Division performing
its member service function despite postal increases.
De Vries:
Aren’t we shorting The AP income by not including
that 50% of dues?
Disagreement from Carter, Flannery.
Lamb: It is, actually, in the budget, which he thinks is a mistake
as it is a policy decision and makes it difficult to determine
exactly how The AP is performing. But if you turn back to The
AP section in the budget you will see the calculation on dues.
De Vries: But from the profitability thumbnail printout it seems
we are shorting The AP.
Carter: The figure is really 30% of the dues not 50%.
Lamb: You also mask what The AP is really costing by throwing
that number in. It will be discussed later in the budget.
Flannery: Tells de Vries this page is to show profitability
from departments and he agrees this is the profit generated in
the operations, not money used by departments. This is correct
as presented. It's a limited view but a real view.
Lawrence: The Bylaws used to mandate 50%. The Board changed
bylaws to relax that so there was more flexibility.
Lamb: Refers
back to Lawrence’s statements about postal
rate problem with the Sales Division. He agrees that this is
a challenge that the APS is going to have to deal with. Sales
Division director Tom Horn has been very creative in finding
cheaper ways to ship circuits. They are currently using signature
confirmation and this has worked well. Horn is giving some thoughts
to a proposal (very early thinking) of ways to not actually send
the stamps, but send images to potential buyers to make selections.
There could be a lot of problems with this. The sale of individual
stamps is not practical because it is very labor intensive. Lamb
just wanted the Board to know that the Staff continues to give
thought to alternatives to the present sales approach, but doesn't
have a solution yet.
Washburne: If a department were closed, the only savings would
be salaries. Overhead and rent have to be distributed somewhere
else.
Lamb: Theoretically,
the APS could rent those offices commercially. On overhead,
something like Internet Sales (which pays $58,000
a year toward the salaries of Lamb, Masorti, Banks) doesn't represent
a significant proportion of any single person's job (other than
those in the specific departments). Therefore, he doesn’t
think it is unfair at all.
Washburne: Doesn't think there has to be a justification for
whether a department is earning money.
McCann: Asks for clarification from Lamb. Did he say if the
APS abolishes the ISU tomorrow that in fact because of the way
the infrastructure of the Society is, that it would not show
a savings by letting those people go?
Lamb: No, the APS could let the four in ISU go and save there,
but that is not shown here. That is an expense. ISU is subsidizing
more broadly the Society's core overhead.
Saadi: Employees
are in the expenses – Lamb's salary,
Masorti's salary, etc. are in the overhead.
Lamb: That is correct.
Klug: If there is no further comment on this, Lamb will continue
with his report.
Lamb: On membership — Since
the Board's last meeting, the Staff has concentrated a great
deal of effort into increasing
the membership. He would like to thank Rob Haeseler for taking
on this area. He has helped move a portion of efforts outside
the mainstream of the hobby. Earlier in the year the APS purchased
a mailing list from the National Geographic Society. The staff
designed a special mailing to send to them, which Lamb thinks
was very professionally done. The results were so disappointing
that the APS discontinued the mailings.
The staff then went to Don Sundman (Mystic Stamp Company), one
of the most successful dealers in pushing the frontiers of the
hobby. He has been very supportive of APS' efforts, and in fact
gave the APS free of charge one of his mailing lists. The staff
used the same mailing to that group. The results were slightly
better, but again not good enough to continue the mailings. The
staff plans to redesign the mailing and pick up with those lists
later.
Youngblood: What was response rate?
Lamb: Less than 1% on both.
Straight: Asks Youngblood what's usual.
Youngblood: 6% would be great, realistic is 2%, but under 1%
to a cold mailing isn't really that bad.
Saadi: How does the staff plan to restructure the mailing?
Lamb: There's so much junk mail, most people throw it away.
The staff plans to write personalized letters on letterhead in
regular envelope in the hopes of a better response.
Saadi: Will you send with a real stamp? It's important.
Lamb: Not sure. Haven't thought it through that far.
One of the APS' most successful programs is the Business Reply
Cards. Haeseler has been contacting several dealers, asking them
to get involved with this program. He currently has commitments
for 96,000 cards which are being printed. The staff hopes to
have them distributed by Labor Day. The most successful program
is the $5 bounty. The APS recently did a mailing to all clubs
pointing out they could get bounty.
Flannery: How do you set expectations of mailing response rates?
Lamb: Cost of mailing versus what APS gets out of it and compared
to other recruitment efforts we have.
Flannery: Market experience?
Lamb: Talked to Sundman, who does have market experience and
who has been advising the APS. The staff plans to retool before
it goes ahead.
Klug: It’s unfortunate that the mailing did not work out – it
was a very attractive piece and Haeseler should be commended
on it.
Carter: Every
day the APS brings in 9 new members but every day loses 12
members. What is APS doing? Yes, some die but ….
Lamb: The Staff goes back to them at regular intervals with
increasingly attractive offers to return to the Society and gets
some back. But most of the individuals that leave, leave very
quickly because they saw APS was not for them, or the APS loses
them because of age and demographics.
Haeseler:
Every year APS mails to "drops" about 7,000,
in the last 3 years. Usually goes out before first dues mailing
of the year (being put together now).
Carter: Does anyone pick up a telephone and call them to see
why the dropped?
Haeseler: No, no time for formal structure survey. He has talked
to people randomly. Usually response is the dropout decided to
stop collecting. He agrees it needs more study.
Klug: It is hard to say no when on the phone. It may be worth
trying calls to dropped members.
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American Philatelic Center
Lamb: The American Philatelic Center has been very successful.
He thinks this Board can take great pride in its vision in supporting
this project.
In developing the center, we sought to accomplish three things:
1. More Space: In October we will have developed about 55,000
square feet of the building. That's more than twice the space
available on Oakwood Avenue.
2. We wanted a place that would be a destination, drawing collectors
and non-collectors alike to promote the hobby. The Bellefonte
Chamber of Commerce reported last month that since the American
Philatelic Center opened, the Chamber has had 25% more tourist
inquiries. Last week there were collectors in the building from
five states. One doctor from Massachusetts took a five-hour detour
from visiting family in eastern Pennsylvania just to see the
APS.
3. Third, we wanted a money-earner to help subsidize operations.
George Kramer, a developer and someone who has given good advice
on this project from the beginning, reviewed the finances and
estimated that the APRL is making $47,000 per year off the rentals
after covering all direct costs. That's a good accomplishment.
The Educational Complex and the Exhibition Halls will be completed
on October 1 offering additional opportunities to draw people
to the center and to promote the hobby more broadly.
Carter: Are there statistics on visitors?
Lamb: Yes, there are about 1,500 a year, which is really remarkable.
McCann: The figure of $47,000 is external tenants?
Lamb: Yes, approximately 16,000 square feet is rented out.
Prill: What was the rate of visitation at the Oakwood location?
Lamb: Minimal. The Center gets more in a good month now than
in a whole year in State College.
De Vries: Of the 1,500, how many are non-members, not just guests
of members?
Lamb: There is a percentage of non-members. In one week the
APS had a camp of pre-teens, the next week there were visitors
from an adult center. The range and diversity is really impressive.
Lawrence:
There is also a ripple effect that is important. Everyone who
is a member should know that the APRL exists, but when they
come and actually see it they are so impressed that when they
go back to their clubs, they pass that on. So it's just the beginning
of the "culture change." Being local he sees it and
feels the APS is way ahead of the schedule of the notion of being
a destination and a monument to stamp collecting. He is very
gratified by this aspect.
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Fund-Raising
Lamb:
So far, as of July 31, the APRL/APS combined has raised about
$187,000.
He believes that we are looking at about $450,000
mostly for the Building Fund for the year. That's a good return,
especially considering there have been no major estates or gifts;
this is just from individuals. There are a few $25,000 gifts
in there. The APRL has done one big mailing in the Spring and
raised about $70,000. Last year's spring fund raising brought
in about $90,000. The difference is not surprising, because of
last year’s enthusiasm for moving into building, and it
was the first direct mail to members.
The APRL is doing a mailing this weekend from STAMPSHOW with
a first day cover of the eagle stamp, a legitimate usage, which
will go to every member who has donated $10 or more in the last
2 years (over 4,200 pieces). It just thanks them for their donations.
Later this month, the APRL will have a mailing to everyone who
has given $50 or more, saying their names are going to be on
a lobby plaque and we want to make sure the name is correct.
There are different levels to the plaque and the letter informs
individuals that they can step up to the next level if money
is received by September 30.
The biggest fund-raising for the year is usually the dues mailing,
which goes out in October.
Carter: Are the fund raising mailings mainly for the APRL and
the building?
Lamb: Mainly, but not exclusively. Anyone who has given money
for any purpose will get these letters.
Carter: Is a pledge credited to finances when the pledge made,
or when it comes in?
Martin: No, it's when the money actually comes in.
Lamb: Pledges show up in the balance sheet, but they are discounted.
Dempsey: Should the APS put names on movable slides on these
lobby plaques so people can be moved up?
Lamb: No, these will be very nice plaques showing $1,000+ donors
in etched glass, flanked by $100+ donors on polished aluminum
and a computer-generated book of $10 or more. But the APS will
start another plaque next year, another opportunity.
Straight: How much of $1.7 million in fund-raising was this
year, how much last year?
Martin: $1.39 million last year.
Lamb: He expects to get $450,000 this year. So far we have received
$187,000.
Straight: The campaign was $1 million per year for ten years,
so at end of second year the APS will be short of the goal of
$2 million.
Klug: It will be close.
Lamb: Might make it.
Klug: The APS/APRL is at $1.7 million at the end of May. It
will be increasingly difficult to continue momentum, particularly
as the APS/APRL comes to the end of the building projects.
Lawrence: It has been a very difficult year for all fund-raisers
everywhere. An average of $1 million per year for ten years is
still within reach. He agrees with the specific program, but
it's more a function of the economy.
Saadi: Who is in charge of Development?
Klug: Ken Martin
Fekete: What's status of the bricks? Going to use them going
forward?
Lamb: They are currently in storage. APRL will use them in a
new garden, but due to future construction, the area for garden
will have heavy equipment going through it. We already has preliminary
designs for the garden. Have backed off of the bricks, although
they are still selling. What we were charging was not very profitable.
Initial charge was $75. Now, $1000 buys your name on a very nice
plaque. But there will be a brick program; it's a wonderful way
for chapters to recognize deceased members.
Saadi: Could sell different levels of bricks, gold, silver,
platinum...
Lamb: Suggests looking behind the hotel here for its brick program.
It's a very nice system that not only uses names but a 12 x 12
with company logos and designs.
Flannery: Has gotten two inquiries from different parties in
recent months regarding the garden and if it will be reestablished.
Lamb: Yes, it will be reestablished when the time is right.
Lamb: The Center is seeing some very generous donations from
societies. The United States Stamp Society is pledging $25,000
at this show for a room, and the Classics Society is pledging
$25,000 for a room. Ted Bahry has been working very hard for
the last eight months to raise $25,000 for a Gung Ho Veterans
Room, and he is $2,000 short and a member has just offered to
match anything Bahry can raise at this show, up to $4,000, so
the APRL could leave this show with $30,000 for the Veterans
Room. People in the hobby are really stepping forward.
Washburne: If he makes his annual contribution through Bahry,
would that help?
Lamb: Yes.
Youngblood: Bricks, plaques, there is a limited amount of space
over a period of time. Are there other opportunities? For example,
French collectors could sponsor pages of the reference collection?
Lamb: Yes. There are a lot of things and the APS has several
sponsors in the reference collection. If someone gives a nice
collection, the APS will name a section after them. APS gets
some very nice in-kind donations, just received a collection
of Dogs on Stamps, 144 volumes, one of best researched topical
collections ever.
Lesher: ARA donated a research carrel in honor of Dick Riley
who did a lot of work in terms of bibliography.
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Website Redesign
Lamb:
Website redesign is moving along, after a slow start. The APS
has a
very creative company, but may have given them
a bigger job than they can handle. Have had a few talks and performance
has improved. We still plan to come close to the January 1 deadline.
The new site will include a bookstore (marketplace), a revised
ISU, and Lawrence’s reverse-eBay proposal.
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Grand Rapids
Lamb: There was a lot of trepidation in some quarters about
this show. It is of course too early to judge the success of
the show. He will tell the Board that in five days. But the preliminary
numbers look good. The banquet will probably sell out all 250
places. The Tiffany dinner has sold 90 places. There are 153
dealers signed up.
Certainly no convention center nor post office could be more
supportive than what the APS has found in this city. There were
articles in the local newspaper on Sunday and today. The local
post office has distributed 480,000 cards publicizing the show
free of charge, had 1,000 leftover and they were sent to Lansing
for distribution.
Klug: In the strategic plan, there were plans for an electronic
newsletter. Is there any status report on that?
Lamb: No, that is tied up in website redesign.
Klug: The status of Transatlantic Mail book?
Lamb: Enormous tome, being edited now. Haeseler contracted out
layout work, but it is very time-consuming. The APS will be advertising
the book with the dues notices for advance sale and should be
shipping it out in January.
Parsons: Does the APS have the rights to this book?
Lamb: There are some restrictions on the rights, but yes.
Klug: Any status on the Headsville Post Office to be moved from
Natural History Museum to Bellefonte?
Lamb: No. Contacted Smithsonian twice, haven't gotten responses.
APS is completing a formal request now. May have to involve the
local congressman to inquire on the status. If APS gets it, it
will have to do a building to put it in, probably a glass and
steel structure so you can see it from inside and out. It is
tall 14 feet high, 16 feet wide, 30 feet long, and APS does not
have a place in the American Philatelic Center that is tall enough
and wide enough to accommodate it. The cheapest thing is to put
a building on the site. APS has architectural drawing of it.
It will require raising money. The APS does have place to store
the post office if it comes before the site is ready.
Straight: What is mechanism by which the Board will know by
the end of the year what the progress is on the Strategic Plan
Goals and also will the Board be informed of the goals for 2006?
Klug: Will be having another planning session in November in
Bellefonte. Will get answers then.
Fekete
moves to accept the Executive Directors Report; Lesher seconds. Passes
unanimously.
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Society Attorney's Report (Eisenstein)
Eisenstein:
Change of registered office address has been accepted by Department
of State. The APS is now officially at 100 Match
Factory Place. Also, the names "Young Stamp Collectors of
America" and "Junior Philatelists of America" are
registered to APS. No litigation pending against the Society.
Doesn't know of any potential claims.
Parsons: Who prepares reports to IRS?
Eisenstein: Not her.
Lamb: The auditors prepare the reports to IRS.
Eisenstein: Does submit a letter to the auditors.
Straight
moves to accept the Society Attorney’s Report;
Prill seconds the motion. Passes unanimously.
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Future
Stamp Shows
Winter Show 2009
Martin provided a handout with the three best cities out of
20 for the Winter 2009 show. The three listed were Baton Rouge;
Nashville, and Mobile. He reported that Baton Rouge has the greatest
risk and greatest potential reward. If APS gets 1,000 room nights,
Baton Rouge will waive the fee for the center. One thousand room
nights would be very optimistic. APS had 500-600 rooms in Atlanta,
has 1500-1600 at Grand Rapids. Baton Rouge said it would consider
further negotiations.
His concern
with Mobile is hotel and parking costs — on
high end.
Nashville
is nothing to get excited about, probably safest proposal but
certainly not the warmest location — snow is possible.
Baton Rouge is not that warm either in February.
Klug: When does the Board have to decide? Does it have to decide
at this show? Will some of the venues release their guarantees?
Martin: Could wait, some may change, improve or worsen proposals.
The APS doesn't have a huge number of room nights; Savannah,
e.g., won't consider without a history of 1,000 room nights.
If none of the three cities proposed look reasonable, he will
continue working for something better.
Sarasota club, worked on by McCann, didn't seem interested.
Carter: Is APS currently bundling room nights with dealer booths?
Martin: No not currently, but have been giving discounts to
the dealers who stay in the show hotel. For this show, $75 if
they stay 4 or more nights for any of the show hotels. If the
Board decides on Baton Rouge, APS would definitely bundle rooms.
Saadi: Can APS negotiate $10,000 off the convention center cost
if it gets 750 room nights?
Martin: Can try anything.
Klug: It would still be priced out of APS' range.
Prill: Considered going back to Biloxi?
Martin: Biloxi is interested in having the APS back. It has
approved a new convention center. The last hotel was condemned.
But it can't promise rates or whether there will be a hotel there
in 2009. Biloxi was not a profitable show. Judged good by those
attending, but financially not strong.
Klug: Asks Martin, as far as profitability, which of the three
he would recommend.
Martin: Nashville would be the safest and strongest in profitability.
It is a bigger city, good air access, good attractions, and would
generate good attendance.
Straight: Are there dates for Nashville later than February?
Martin: Those dates are tentative; Nashville won't guarantee
them. Believes Nashville will charge more if it is later than
February or March.
Lawrence: When can people expect a show in Bellefonte?
Ken Martin: The space that will be available at the Match Factory
by October 1 is only 5,000-6,000 square feet; the shows need
40,000 or more. A show in Bellefonte would be a much, much smaller
show.
Klug: Agrees APS would have to scale back show but also points
out Bellefonte weather in January and February is an issue.
Martin:
Weather in Bellefonte would be more dangerous than Nashville!
As for the space, even SCOPEX, which has recently requested space
for next year will be pushed with the space available at the
Match Factory. They want 15 -16 dealers and 80 frames.
Washburne: Favors Nashville for attractions. Has been to Baton
Rouge for two conventions, and it has been some of the worst
weather. Humidity is awful even in the winter.
Washburne moves for Nashville; Lawrence seconds.
Lamb: If APS waits, is there any chance of a better option?
Martin: There is a 50/50 chance.
McCann: Should the Board put the decision off until November?
Martin: Doesn't think anything better will come up before then.
Dempsey: From a dealer's standpoint, he likes the population
figures for Nashville. Everyone knows the name, too.
Lawrence:
Doesn't want to give up the idea of holding winter meetings
at Bellefonte. Have had two previous winter meetings
in State College before AmeriStamp Expo, the last one was in
1995. There are plausible ways to make it work. If show not feasible,
would like thinking about meetings to be more tied in with general
plans for the center. Maybe the way to go in the interim is not
to think about Bellefonte to hold this exhibition, but should
be something close enough that APS could also organize a tour
to the American Philatelic Center and package it with the show.
The APS should start unifying its programs to build its vision.
APS needs to rethink, restructure its ideas in order to make
it possible. Further, he doesn’t think the time difference
between now and November in closing a deal is so urgent that
the Board cannot do it and proposes tabling the motion.
Carter: Is APS wedded to a winter show?
Klug: The board voted to continue it.
Carter: It's AAPE's show. The Board needs to meet, but it doesn't
have to be at this show.
McCann: Challenges
statement that it is AAPE’s show.
De Vries: Regarding Lawrence's comments, there are already shows/packages
for summer seminar; extra meetings are already being held at
the center, such as November. Every time the Board talks about
skipping the winter show, it hurts it. Every time the APS skips
it, as in 2006, it is hurt.
Lamb: Would like to think about doing something in Bellefonte
in 2011, which is the 125th Birthday for the APS. Should be far
enough along with renovations to use some space and nearby facilities.
Parsons: You mean something with a dealers bourse?
Lamb: Try to do a show.
Lesher: Should add a day of seminars to both Stampshow and AmeriStamp,
the day before show opens, and that may help get more room nights.
Thinks this is an idea to explore.
Klug: Asks Lesher to write a proposal on that.
Lawrence: Lamb's proposal sounds fine, so he won't propose tabling.
Yes, SCOPEX piggybacks, but it's not promoted as a national show,
not advertised nationally.
De Vries: Doesn't see Bellefonte ever as Winter Show location.
Lousy transportation.
Klug: Calls for vote on motion for Nashville 2009.
For Nashville: de Vries, Flannery, Lawrence, Lesher, McCann,
Straight, Washburne.
Opposed: Carter
Abstaining: Fekete and Prill
Motion passes 7-1 with 2 abstentions.
Stampshow
2010
Martin: Current options are Richmond, Virginia, and Milwaukee.
Richmond came in with a proposal of $60,000 for space rental
but said it would match San Jose at $29,000. Milwaukee said its
normal charge is $79,000; they will offer $17,000. Strong local
support in Milwaukee, but the hotel rates scare him. Essentially
Milwaukee is doing this by taking $10 for every hotel room that
APS uses, which inflates rates. Does APS want a regular presence
on the West Coast, which has less affordable venues, fewer dealers,
less profitability , or does APS want to do Winter Shows on the
East Coast. If profitability is the overriding factor, then he
recommends Richmond.
Prill: Asks about weather in Richmond.
Martin: "Oh,
it's going to be nasty!"
Straight: Didn't Sacramento want APS back?
Martin: Yes, they asked APS back in 2014. Phoenix has asked
for 2012. Recommends every two years on the West Coast, alternating
winter-summer.
Klug: Richmond would be $50,000 more profitable than San Jose;
Is that based on decorator costs primarily?
Marin: Decorator costs are about half, and about half dealer
is participation.
Klug: Asked for a motion. There is no motion.
Straight:
Asks for Dempsey’s input as a dealer.
Dempsey: Would like to see more West Coast shows (Klug: He's
from California.) but needs to look at profitability.
Martin: Doesn't think San Jose would lose money, but APS has
depended on Stampshow to cover all office overhead.
McCann: There are serious concerns about finances. $50,000 is
a big chunk.
Lawrence moves to choose Richmond; McCann seconds.
Carter: Asked about local support. Washington and Virginia Beach
are 100 miles away.
Martin: Local support would be a problem, but many StampShow
volunteers are from outside the area. Have been getting more
and more national volunteers. Don't rely nearly as much on local
people as 10 years ago.
Dempsey: From a western dealer standpoint, he always feels like
a poor stepchild. Thinks it's important to make a point of getting
to the West Coast more often. But he would rather see more travel
to the East if it makes Stampshow profitable enough to keep winter
shows going, because they're important.
Saadi: What about Arizona?
Martin: Phoenix has asked for the 2012 Winter Show.
Klug calls for a vote on Richmond.
The motion passes unanimously.
Schumann: On room nights, bundling improved his show's room-nights
from 400-450 to 700 and he recommends it. Local dealers either
use them for convenience, sublet the rooms or give them to their
best customers.
Dempsey: Agrees, it's the wave of the future. May have occasional
local dealer who grumbles, but by and large they are realistic
and that is the way to go.
Martin: Major concern is for dime-dollar booths, where bundling
cost may be more than booth cost.
Washburne moves to approve decisions made in executive session;
Carter seconds.
Passes unanimously.
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Selection of APS Auctioneers
Straight: Provided a printout for his committee's report.
Lawrence: Requests that this topic be moved to executive session.
Klug: Asked if there are any objections to this. No objections,
and the subject is moved to executive session.
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Revised CANEJ Rules
Klug: There are lots of cosmetic changes. CANEJ created a subcommittee
headed by Jim Graue that worked on changes.
The Board discussed the various changes recommended by the subcommittee.
Straight: Can the Board remand this back to committee?
Klug: Yes.
Prill: Would like to remand to committee with request that there
be consistency with international rules on joint ownership. ROPEX
had thought that a husband-and-wife could show 4 exhibits, but
CANEJ said there was a limit of 2 per owner.
Carter: B15
says it shouldn't have to be a "booth of at
least normal dealer booth size."
Straight: Not covered here, but two judges in Minneapolis expressed
concern that some current judges aren't continuing to exhibit.
Klug: It's not in rules for shows, and is being considered separately.
Sense of Board is to remand this document back to the committee:
too many changes.
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FIAF
Agreement (McCann)
McCann: APS set up reciprocity with Inter-American Federation
of Philately (Western Hemisphere) to accept that FIAF-country
judges could judge as international judges in this country and
vice versa. (APS is a member of FIAF.) It took FIAF 4 years to
ratify the agreement. There is a slight difference in what APS
signed and what FIAF approved. The Board needs to look at what
APS signed and what was passed and regularize the minor differences.
Jim Mazepa is APS' representative to FIAF and he originally crafted
what was presented. (Handouts from McCann.) The 1999 version
says APS would accept any FIAF-accredited judge; FIAF said in
2003 any nationally-accredited judge. But no FIAF member countries
other than U.S. and Canada separately accredit national judges;
all others use FIAF.
Klug: Stated that no Latin American country right now has national
accreditation like this country. Is there any likelihood that
this will change with any of the countries?
McCann: No.
Isn’t worth it, they use FIAF as the mechanism.
Lesher moves to accept FIAF agreement; Carter seconds.
Passes unanimously.
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Dominican
Republic – FIP Sponsor (McCann)
McCann: Dominican Republic this year is sponsoring big exhibition
of 2,000 frames as a FIAF exhibition, but the Dominican Republic
has not been an active FIAF member. However there is a very active
club in Santo Domingo that has members from all over the country.
The Dominican Republic is a member of FIAF but is not a member
of FIP. To be a member of FIP a federation must prove a fairly
sophisticated philatelic infrastructure. The Dominican Republic
has decided they would like to become a member of FIP. With this
show they believe they would meet the requirements. To join you
need two sponsor countries that are members of FIP. They have
asked the U.S. (APS) and Spain. The Santo Domingo club is an
APS chapter, and many members are also APS members. McCann asked
for official Board approval to sponsor the Dominican Republic
for FIP membership.
Prill moves to sponsor the Dominican Republic as an FIP member;
Fekete second.
Passes unanimously.
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Dedication for New Building at the American Philatelic Center
Lamb: The new building should be complete by October 1. The
APS needs to pick a date for the dedication. October is a difficult
month because of all the stamp shows. He is looking at the weekend
of November 11-12. There are problems with this date as two room
sponsors will not be able to attend, the American Air Mail Society
and Sundman. These folks are generous donors and their presence
is important. Other dates conflict with Penn State home football
games, Thanksgiving, and then it's December.
De Vries:
Thinks the APS must go with November 12 even though two donors
can’t make it, as there are no alternatives.
Lamb: Agrees. Perhaps APS could plan a special event later in
the Spring to honor AAMS and Sundman.
McCann: Also a Board meeting planned in November?
Klug: Also planning a Shaping A Future meeting for some time
there. There are no alternative dates.
Carter moves for the dedication to be held on November 12th;
McCann seconds.
In favor: Carter, de Vries, Fekete, Flannery, Lawrence, McCann,
Prill, Straight, Washburne.
Lesher abstains.
Passes 9-0-1
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Member
Reunions
Lamb:
John Hotchner sent in a proposal for a “Member Reunions
Program.” Overview of the proposal: Pick a weekend in the
Fall and invite members celebrating five-year anniversaries (5th,
10th, 15th, etc. years of membership) for a weekend of events
at the Match Factory, during which they are honored for their
years of membership. This is APS' chance to invite those members
to headquarters who have always wanted to visit but didn’t
have a specific reason. Central Pennsylvania is beautiful in
the Fall and there are lots of things to see and do for spouses
as well. This could be a family event. Activities would include:
access to the Library, Sales Division, and also some programs
and tours to meet and talk with the “names” they
have only read about. A roundtable on the future of the hobby,
and at least one social event. There will be costs involved but
there will also be long-term benefits to the Society. This idea
will take some experimentation and may take a few times for it
to catch on, but overall the concept could work.
McCann: This would be a good opportunity for fund-raising as
well.
Lamb: Perhaps the APS could invite 25-year members for a weekend
for seminars, dinner, etc. and present their certificates.
Klug: When would this program start?
Lamb: Can't be this year. This will probably turn out to be
a November weekend like the dedication planned for this year.
Youngblood: Maybe during Summer Seminar?
McCann: Suggests it be put off until the November meeting, and
get an idea of cost, dates, etc.
Fekete: Why not 10s, 15s, others?
Haeseler: This year the APS had 1,063 people become 25-year
members, about 1,300 ten-year members, and 1,150 five-year members.
Saadi: Yes, but you have to look at what your percentage of
attendance will be. 2% would be astounding. Maybe first invite
your 25-year members with a deadline date to respond. Then if
you can accommodate, more invite your 10-year members and down
the ladder. The more people to show up to your capacity the better
the event will be.
The sense of the Board is that Lamb will look further into this
and report in November.
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Presentations for 2016 International
Columbus 2016:
Presented by Chuck Wooster, chairman, 2016 Exploratory Committee
Overview
of Presentation:
Proposing widening ranges, moving more toward equity side. None
of the investments would be in real estate, since APS already
has huge investment in real estate.
Lawrence: Executive Director should have authority to move investments.
Carter: In the Bylaws it's the Treasurer, not Executive Director,
who does that.
Lamb: Not sure he wants that responsibility. Would like wider
bands, more discretion given to financial manager.
Lawrence: Problem with the policy is that only part of investment
gains that can be spent are dividends or interest.
Lamb: Sat down with investment manager. He thought ratio of
equities to bonds should be reversed, giving him up to 60% in
both categories, giving him a great deal of opportunity.
Lawrence: Should be able to get an income estimate from manager.
Agreement.
Prill: Points out it should be 20-60% on both.
Washburne: Why in #5 no construction or building supplies?
Lawrence: Doubles exposure on real estate.
Lamb: Investment manager said he had no problem with that.
Klug: Why
doesn't it say "real estate?”
Lawrence: Not equities or fixed income.
Carter: It's covered in #3.
Lesher moves to accept the Investment Policy; Prill seconds
Passes unanimously.
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Expertizing Guarantee (Lamb)
Lamb: Grew out of the Finance Committee meeting. Wanted to raise
fees, but give members value for it. Expertizing Manager Mercer
Bristow helped draft it. It's not as risky as it sounds. Most
such losses would be $25-$200, versus $25,000 in additional revenue.
Helps with competition. Professional Stamp Experts is getting
aggressive; Philatelic Foundation is strengthening with NYC dealer
base. APEX has to be competitive. Also thinks there is an obligation
if someone buys something based on a certificate, it would be
wrong to just walk away.
One concern he had was how to value. In cases that have come
up, it's been very easy, usually based on actual transaction.
Would like Eisenstein to help with drafting the guarantee.
Eisenstein: Hadn't seen it until it appeared in packet. It needs
a lot of fine-tuning. Suggests Board pass it in principle, but
not the document itself.
Klug: Wants to limit liability for the expertizers. Can a hold-harmless
be written into it for the expertizers?
Eisenstein: Not sure, but thinks it could be done.
Lamb: APS does want to protect its experts. Doesn't reveal names.
Washburne: Would this be for any certificate the APS issues
or only certain areas?
Lamb: APEX would reserve the right not to offer a guarantee,
although he doesn't know of any areas that APEX would not guarantee.
Lawrence:
PSE now is offering a guarantee, although it's essentially
worthless. They'll only pay if they agree they were wrong.
APEX
is not saying that. The APS (APEX) is saying if you show us evidence
we are wrong, we will consider it. And if we don’t agree
you have a right to go to arbitration and get an independent
opinion on it. This is a real guarantee. He favors this because
the other side of competitive expertizing in this country is
grading: PSE does, PF is about to do it. He doesn't think APS
should do it. The difference in APS' place in the stamp culture
is that what APS is doing is offering stamp collectors the opportunity
to get the best possible opinion about whether their material
is what they think it is. The other guys are serving a market
desire to increase the value of top-level material. That is not
APS' role. It would greatly enhance APS' stature with this, and
intelligent people will recognize this guarantee is better.
Washburne: PSE doesn't do foreign stamps. He would support this
if it is only for U.S. stamps.
Lawrence moves to adopt the Expertizing Guarantee in principle;
Fekete seconds
Carter: Agrees it should focus on U.S.
Lamb: There will be mistakes. He thinks it will still make money.
Expects to make $25,000 income from this and even if APS pays
out $2,000 a year that is quadruple what he expects in expenses.
And there is a ceiling built in of $5,000, it is good for five
years. He thinks APS is protected if the material is foreign.
Saadi: Where would the $5 increase put APEX in relation to competitors?
Lamb: Brings APEX equal to PF, not sure with PSE.
Lawrence: Hard to say with PSE; it seems to be more than APEX.
Saadi: Wonders if APEX would lose its price advantage.
Lawrence: PF going head-to-head with PSE on grading. He thinks
that will increase the spread between APS and PF.
In favor: Lawrence, Prill, Fekete, de Vries, Carter, Lesher,
Straight, McCann
Opposed: Washburne
Absent: Flannery
Motioned passes 8-1
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Contributors
to Philately (Klug in Historian Herb Trenchard’s
absence)
Klug: Had a lot of questions for Trenchard on this. In a recent
e-mail to him she received some answers.
What would
the award be called – “Contributor to
Philately?" Yes.
What constitutes singular noteworthy contributions and what
parameter are used to determine this. Trenchard answered that
singular noteworthy achievements would very obvious, for example,
creation of a very special collection done by Ferrari, King George
VI, etc. Another example would be Capt. Tim Healy whose radio
programs created many collectors. Think of A. Fenton, a woman
who contributed much to our knowledge of early philately through
her articles she wrote under a pseudonym. The list goes on. Klug
says she is still confused.
What makes a great collector. Trenchard replied that a great
collector is one considered so by his contemporaries and still
considered one today.
How would the award be determined? Trenchard said the recipient
would be named by a committee named by president/board.
Would it trivialize the Hall of Fame? How would it be different?
Trenchard said the Hall of Fame is limited to those who have
made a diverse contribution. Contributors of philately would
be honored for their single and signal contributions. They would
be listed on a wall plaque at headquarters.
De Vries: Sounds like Hall of Fame Lite.
Lawrence: Why not just broaden Hall of Fame?
Lesher: There are some names that are really well known, but
they didn't make contributions in terms of writing, research,
etc.
Straight: It trivializes the rest of the awards APS gives.
Saadi: It’s
confusing.
No motion, no action.
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Membership Survey
De
Vries: Moves to conduct a membership survey sooner than next
year.
Can’t spend money if APS doesn’t
know who its members are. APS
needs to see where it got its
members over the
past 5-10 years. Need to address these people to get more members.
Lawrence: Seconds the motion.
Lamb: APS can get a lot of information from its computer files.
Encourages the Directors to each send him a list of things they
would like to know about the members.
De Vries: Does it tell why so many joined?
Lamb: No.
De Vries: That needs a survey. The last survey came before the
importance of the Internet to the hobby.
Lawrence: Need this to avoid kind of information Finance Committee
had in June. Need to be able to tailor offerings to what members
want.
Prill: Nominates Lawrence and de Vries to suggest questions.
Lesher: Maybe a telephone survey instead of mailed survey, where
you can hear them ramble about some of these issues. Far more
productive. APS needs to focus in the areas of what it really
wants to learn about these members who joined in last five years.
Need to be focused.
Lamb: Hard to get members who want to be telephoned for a survey.
Prill: Can APS use e-mail for meaningful survey?
Consensus: No.
Vote:
In favor: Lawrence, Prill, Fekete, de Vries, Carter, Flannery,
Straight, Washburne, McCann
Abstained: Lesher
Passes 9-0-1
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Recruiting Committee (Saadi)
Saadi provided a handout on APS Membership Recruiting.
Some ideas:
Create a schedule with the Board of which shows they plan to
attend over the course of the next year. Include non-WSP shows
as well. Have each Board member set a recruiting goal for himself
or herself at these shows and track this from board meeting to
board meeting. Discuss $5 discount for new members signing up
through the Board members.
Develop a “downloadable” press
kit on the APS website, geared for Chapters to use as recruiting
tools. Have Board members
contact chapters to convince them to use these recruiting kits.
Reaching buyers and sellers through eBay. The eBay resource
is a trove of new members if APS can learn how to utilize it.
The APS has to think out of the box on this one.
Also, develop
a small (8½" x 5½") table
display card for show dealers to place on their tables. The card
would include information on what the APS offers to its members — beginners,
intermediate, and advanced.
Carter: These
are great ideas. Yes, let’s encourage the
Board members to go to shows, but feels the Directors need a
recruiters' kit as well. Would also like a supply of the stick-on
APS emblems. Table cards should be on each dealer's table, backed
up with applications to join APS.
Klug: Suggests Saadi talk to Haeseler about a kit for each Director.
Saadi: Business reply cards vs. applications?
Klug: Business reply cards are great for mail order, but applications
are best for in-person.
Carter moves to implement, Prill seconds.
Passes unanimously.
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“
Free-Membership” New Member Promotion (Janet Klug)
Klug: Proposal is to entice new members by giving them $35 worth
of coupons to use for APS service and to promote APS services.
Where would APS use this type of promotion? She suggests on APS'
own website home page.
Washburne: Expiration date?
Klug: Sure.
McCann: Put expiration date, but don't enforce it that much.
Washburne: Non-transferable?
Klug: Yes.
De Vries: Use coupon online?
Klug: Yes. These are things that the staff needs to decide.
Youngblood: Likes this version greatly, but worries about existing
members. Maybe APS could offer coupons to existing members, limiting
them to services they have not used before. But at the same time
he thinks the existing members would also understand that it's
a membership recruitment tool.
Prill: Wouldn’t
that be logistically difficult?
Klug: Yes. Lamb also nods head.
Consensus to just offer it to new members.
Straight moves to refer this in principle to the APS staff;
Lesher seconds.
Prill: Put a timeline on this?
Lamb: Can't do it immediately. Will need some time. Needs until
end of the year.
Passes unanimously.
6:20 p.m. Into executive session.
6:41p.m. Into open session.
Lawrence moves to ratify the decisions of the Executive Sessions;
Straight seconds.
Passes unanimously.
Janet Klug thanks outgoing directors.
Prill moves to adjourn; Fekete seconds
Passes unanimously.
Meeting ends 7 p.m.
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