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Subj: Spring BOT Meeting Report Refer to: Central Region Letter 12-05; May 9, 2005 **** There is much to report from the BOT meeting held last week 5-6 May so I will try to highlight the events. As usual the first day was spent in Committee meetings, but a gathering of all Chapter Officers was also held that day. 83 of the 93 Chapters worldwide were represented. I attended the Superintendent’s presentation made to them and will report on that in a separate Central Region Newsletter. I think it was a very good idea for the Association to bring together the Chapters and commend them for this initiative. With the four new chapters added during the BOT meeting, there are now 97 chapters versus 75 classes—chapters are growing very quickly as well. The remainder of this newsletter follows the agenda of the BOT meeting.
BOT EXECUTIVE SESSION · The entire BOT held a brief executive session prior to the open meeting; personnel issues were discussed, particularly the Chair’s plans for a review of BOT composition; the Chair plans to hold executive sessions prior to each meeting. CHAIRMAN’S REMARKS—ADM TROST ‘53 · The prior days Executive Committee session was reviewed · ADM Trost announced that he would open the BOT and himself to questions from the observers to the meeting upon conclusion of the formal session; this is to become a practice after each Spring BOT meeting ADMISSIONS REPORT—DEAN DAVE VETTER · Goal is to achieve geographic and ethnic diversity at USNA · Applicants keep getting brighter and more rounded; e.g., almost all in top 20% of HS class and 89% in varsity HS athletics · Class of 2008 had 14,426 applicants, 1473 offers, 1244 admissions (high yield); 20% women; 21.7% minorities; SAT: 648verbal—672math · Class of 2009 has fewer applicants (11,250) but this has been experienced by all service academies; the War on Terrorism has had some effect, but plenty of excellent applicants are still in the pool · Awareness of USNA is a challenge; fewer veterans and fewer public officials with military backgrounds to spread the word; big issue is still recruiting minorities from the inner cities · Need to attract the “right” applicants; synergy between BGOs, Chapters, & Parent’s Clubs is important and helpful · Friends and relatives are the primary impetus for interesting candidates to USNA; also working with BGO, Naval Recruiting Command, USNA Summer Seminar camp, and information programs in nine cities to recruit JOINT FINANCE/ACCOUNTING COMMITTEE REPORT—CORBIN McNEILL ‘62 & CAPT HANK SANFORD · Process complete to select a new auditor and selected a Baltimore firm · Balanced budget for last year and upcoming year (balanced without drawing on cash reserves) · FY06 budget supports an increase in gifts to USNA to $1,150,000; this is up from about $750,000 only a few years ago · Shipmate funding is short two issues in the budget, but assurances were given that all ten issues will be printed and distributed; paper and postage costs are on the rise; needed funds will be looked for · Revenue could be adversely impacted if investment firm is changed during the year; we could view our investment firm as a mutual fund—if we withdraw all money from a mutual fund we’ll incur capital gains/losses—such losses might impact our budgeted revenues adversely · Association has done a good job in reducing/controlling expenses but is nearing the end of cost savings potential; will have to concentrate on revenue increases in the future; the $11.5 million FY06 budget is only 2.3% higher than FY05 · After the capital campaign ends, the USNA Foundation will raise funds for affiliated entities, i.e., Alumni Association and USNA Foundation (Athletics & Scholarships) · (Wass note: I remain confident that this committee does a fine job of controlling, allocating, and accounting for our financial assets) · BOT approved the budget for submission to the main USNA Foundation Board for final approval and funding JOINT INVESTMENT COMMITTEE—CAPT HANK SANFORD · 1st QTR returns flat (-0.72%), but 4thQTR 2004 had good gain (6.8%); core portfolio benefited from new allocation strategy; asset allocation transition continues; move to asset allocation ranges versus targets · Investigating new investment management firms because value added is under question for core portfolio fund manager; will be complete by November · (Wass note: I remain confident that this committee is doing a good job to safeguard and grow our financial assets) ELECTION RESULTS—BOARD OF TELLERS(CAPT GEORGE ZEBERLEIN) · Less than 4% of alumni voted; 2197 ballots counted (58 ballots disqualified) · Steady decline in alumni voting; used to be 6000 votes · Corbin McNeill ‘62, Vice Chair, won with 1976 votes · Bill Rentz ‘55, Eastern Region Trustee, won with 501 of 1418 votes · Len Wass ‘ 64, Central Region Trustee, won with 341 of 533 votes · Board of Tellers recommended going to “At-Large” Trustees to increase voting · (Wass note: I don’t agree with the Tellers, and I think their analysis of the vote numbers is incomplete. Two regions, Mid-Atlantic and Western, represent over half the alumni—and they had a single, unopposed candidate to vote for (Vice Chair). What incentive is there for them to vote? Very little, and I would guess the turnout was very slim in those two, large regions. There was a good turnout in Eastern and a modest turnout in Central. I think the alumni need more choices, like in the Eastern Region race, to stimulate voter turnout; I also think electronic voting would stimulate much more activity. I think we should slate three qualified candidates for the upcoming Chair election—that would give an incentive to turn out the vote.) HOUSE COMMITTEE—CAPTAIN BOB STEVENSON ‘ 60 · A number of upgrades to Ogle Hall have been made, e.g., electrical, telephone, etc. · A new roof is to be installed—good bid—lightening protection will be added · Need to comply with American Disabilities Act—have a plan and are getting Annapolis & Historic Preservation Committee approvals—elevators and bathrooms will be added · (Wass note: This committee has been invaluable to the alumni and has saved it money while preserving some of our 250+ year old assets) PRESIDENT/CEO REPORT—CAPT WATT ‘ 73 · Held Chapter Forum for the first time—83 chapters in attendance from around the world · 59 class presidents met last week · 5th anniversary of George Watt as President of the Association · Reviewed Association mission and how it is being met · Presented BOT with a bound report which should be on http://www.usna.com clicking on “About us” · (Wass note: I would urge you to go to the Association web site above and read his report; it is comprehensive and cites many excellent accomplishments of the Alumni Association) COMMUNICATIONS COMMITTEE—BERNIE MAGUIRE ‘ 64 · Met in March with Committee and Council of Class Presidents to review Shipmate changes; cited many improvements and efficiencies in Shipmate; only Ohio State provides 8 issues—most others are 4 to 6—USNA is unique with 10 issues · Need to increase advertising revenues in Shipmate · Will meet in the Autumn with class corresponding secretaries to discuss the reduction in Class News section allotted space · Mid-Atlantic Trustee, Jack Adams ‘ 58, cited objections to the reduced Class News section—indicated the entire magazine grew while Class News shrunk—noted that class corresponding secretaries have still not been contacted even after 2+ years of reduced Class News format · Vice Chair assured all that 10 issues would be produced · Bernie Maguire ’64 indicated that they are trying their best to accommodate all who want extra space in their Class News section, and that all such needs have been met MEMBERSHIP COMMITTEE—COLIN SAARI ‘ 60 · Increasing membership is a big challenge, especially from classes senior to 1978 · Some initiatives have begun: 26 designated membership chairs from each senior class; offering annual, 3 year/$135, and live memberships · Corporate memberships have produced more than $150, 000 in revenue OTHER CHAPTER COMMITTEE—RAESE SIMPSON ‘ 61 · July and August is the time for interested Chapters to submit applications for the three “small chapter” trustee seats; winners will be notified by September and assume their seats upon conclusion of the December BOT meeting · Raese Simpson made a resolution to modify the Operating Manual such that the same chapter could not hold two BOT seats concurrently, i.e., both Large and Small Chapter seats; there was some discussion on wording, but no disagreement on intent; Raese will wordsmith and place before the BOT for electronic vote in the near future GOVERNANCE COMMITTEE—RADM ROY SNYDER ‘ 50 · Discussed the Issue Paper he sent to BOT with the Read Ahead for reconstituting the BOT by: a. eliminating all 4 Region Trustees, 4 of 12 Chapter Trustees, both Board Appointed Trustees, and the immediate past President; and, b. adding 6 At-Large Trustees and 1 Class Trustee. This would balance class and chapter trustee counts and reduce the BOT by 4 positions. The stated objective was to balance Class and Chapter Trustees, reduce the BOT size, and increase Alumni voting participation. · Reported that the Governance Committee was deadlocked in December on BOT changes, and asked the Chair & President for a “strawman” · RADM Snyder wants to convene the Governance Committee, get inputs, and recommend a new composition (whatever the outcome) for a vote at the December BOT meeting · No Q&A was offered and the Chair approved additional work on coming up with a new BOT composition · (Wass note: I have an open mind to needed changes in BOT composition but would like to hear some compelling reasons to do so. For example, what serious problems are we trying to fix? The December 2004 position of the Governance Committee was “if it’s not broke, don’t fix it.” The Chair indicated this issue will be voted on and resolved in December.) CLASS PRESIDENTS REPORT—BERNIE MAGUIRE ‘ 64 · The Council of Class Presidents met and gave unanimous support to the new Governance Committee “strawman” proposal to modify the BOT composition · Sponsorship of midshipmen company wardrooms was discussed and a committee formed · Defeated a $10 million endowment proposal · Encouraged the BOT to discuss/vote on need for an annual meeting · (Wass note: ADM Trost, the Chair, pointed out that annually, at the Spring BOT meeting, all alumni present would have an opportunity to address/question all or any Trustee upon conclusion of the official meeting; this would meet the spirit of intent for an annual meeting. He calls it an Annual Forum.) OTHER BUSINESS · Four new Chapters were voted in, raising the level to 97; these were: Eastern Shore, Central New York, Michiana (the area along the border from Michigan City, IN westward through South Bend, IN), and Southern Mississippi. Welcome!! · Departing Trustees were recognized: Mike Rindskopf ‘38, Chuck Griffiths ‘46, Mase Wells ’47, Bernie Maguire ’64, Rob Bender ’74, Becky Craig ’80, and Linda Postenreider ’82. Farewell and God Bless! · BOT approved a new Standing Committee roster · The meeting adjourned temporarily to allow the incoming Trustees to take their seats. These are: Bill Rentz ’55 (Eastern Region Trustee); VADM Gerald Miller ’42 (30s & 40s Decades Class Trustee); VADM Mike Haskins ’66 (60s Decade Class Trustee); Capt Perry Martini ’71 (70s Decade Class Trustee); and absent because he’s serving in Iraq, Capt “Murph” McCarthy, USMC ’00 (00s Decade Class Trustee); Carl McCallum ’60 (Atlanta Chapter Trustee); Fred Sheehan ’78 (Boston Chapter Trustee); and, Lynn Wegner ’65 (Texas Gulf Coast Chapter Trustee). Welcome and best wishes! · With the new BOT convened, the President George Watt ’73 addressed the need for a “mid-term” update to the Association Strategy, called Plan 2010. The Chair will recommend an ad hoc committee for BOT approval. The process should start in the summer and conclusions reported to the BOT at the December meeting. There was no Q&A · (Wass note: I commend the Association for initiating this review. As events change our goals and strategies for achieving them need periodic review. I am looking forward to a strong committee that gives this important area a good review. It is my understanding that Plan 2010 and how the Association carries out its mission will be in the terms of reference for this review.) · The meeting adjourned with Art Bryant ’66, Detroit Chapter President, leading all of us in the singing of Navy Blue and Gold · The next meeting will be held on 30 Nov-1 Dec 2005
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*** Central Region: |