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Contact information

John Lynch
ddalumni@comcast.net
PO Box 1367
Exton, PA  19341
tel. (484) 252-1880

Ford Lincoln Mercury DD Alumni Association

Minutes of Board of Directors Meeting

Chicago O'Hare Airport Hilton Hotel, Chicago, Illinois

June 4, 2008

A meeting of the Board of Directors of the Ford LM Dealer Development Alumni Association was held at the Chicago Airport Hilton Hotel on Wednesday, June 4, 2008 at 8:30 AM.

The following individuals were present:

Board Members

Gus Palmar, President

Mike Collins, Secretary/Treasurer

Brad Webb

Bob Beine

Tarik Daoud

Irving Matthews

Art Silva

John Lynch, Executive Secretary

Linda Lynch, Spouse of Executive Secretary

Ford Executives

Jamy Hall

Scott Majercik

Richard Singletary

Artie Dukes

The purpose of the meeting was to conduct the following business.

The meeting was called to order by President, Gus Palmar and he welcomed everyone to the meeting. The minutes of the March 6, 2008 meeting were presented for review and ratification. After discussion the minutes were unanimously ratified, approved and accepted by all the members present.

Old Business

Sponsor Levels – Executive Secretary Lynch presented a document listing the three sponsorship levels Platinum, Gold and Silver and the benefits realized at each level for

review and discussion. After discussion the Board agreed the three levels and benefits as presented. It was also agreed that there would be no sponsor presentations from the

podium this year at the annual meeting.

Alumni Dealer Milestone Recognition – Lynch advised that Ford had supplied him with a list of DD Graduates with appointment and graduation dates to be used to determine who would be eligible to receive a Dealer Milestone Award this year.

2008 Meeting Update

Draft Agenda – Lynch presented a draft meeting agenda for review and discussion. Artie Dukes from Ford advised DD was still working on having six speakers for the annual meeting. Board Member Irving Matthews agreed to facilitate the Dealer Panel on Tuesday.

Ford Speaker Commitment - At the present time Randy Ortiz, John Noone, Peter Horbury and Jim Farley have committed to attend and address the group. CEO Alan Mulally might have a conflict in his schedule and Dukes was still trying to get a commitment from Ford’s Economist, Ziad Ojakli from Governmental Affairs or a member of Ford’s Board of Directors to speak.

DD Organization Invitation – Lynch inquired as to whether DD was going to have another National Meeting following with the Alumni meeting again this year and whether the DD organization was being invited to attend the entire DD Alumni Meeting in 2008.

Director Jamy Hall advised that this decision had not been made yet. 

Alumni Dealer Milestone Recognition – Based on the list Lynch recently received he presented a list eligible dealers and advised that there were several DD Graduate dealers who had reached a milestone (10, 15, 20, 25 etc. years) as a Ford franchised dealer in 2008. Some of these were not active members of the Association. After discussion the following criteria was adopted regarding eligibility to receive this recognition.

• Must be same DD Dealership Corporation
• Dealer or his/her family must still be the owners
• Nominee successors will be included and recognized
• Dealership must still be operating a Ford franchise
• Must be a DD Graduate
• Milestone award recognition will begin for franchised dealers once they have achieved 10 years in business.
• Dealer must be an Association member in good standing in2008 with dues paid.
• Other eligible dealers will receive Milestone Awards in subsequent years as they achieve the 10,15,20,25 etc. year plateau based on the date of their franchise agreement.
• Awards presentation should be one of the highlights of each annual meeting.

Theme Dinners & Spouse Program – Linda Lynch, spouse of Executive Secretary, John Lynch advised that she was still working on plans for the themed dinners and the spouse program. She was reasonably sure that Sunday night would be an Italian theme eg. “A Night in Venice” with Italian fare, gondolas rides and strolling musicians. The theme for Monday night was still in the works, however she was looking at several show bands so DD’s 2007 American Idol winner, Saundra Daggs could be featured. Tuesday night a “Hawaiian Luau” is planned for the beach & pool area with authentic Hawaiian entertainers from the Big Island. Lastly she advised that she was still considering one or two outings for the ladies. One in particular includes a tour of a home located on sacred American Indian grounds followed by lunch and Tequila sampling.

2008 Ford Sponsorship – President Palmar and Executive Secretary Lynch requested affirmation of Ford’s monetary sponsorship commitment for the 2008 meeting. DD

Director Jamy Hall advised that Ford’s sponsorship funds for 2008 would be $125,000.

The Board expressed their appreciating for DD and Ford Motor Company’s continued support.

New Business  

May 31, 2008 YTD Financial Statement – Lynch presented the May 31, 2008 YTD Financial Statement for review and discussion. Paid membership dues increased in 2008 by $2,000 despite an increase in member dues of $100 as only 60 members have paid their dues in 2008 versus 77 for the same period in 2007. Interest income diminished due to the lowering on interest rates on savings. To date the Association has received only $35,000 in Sponsor Income versus $55,000 for the same period in 2007. An additional $40,000 has been pledged. $5,000 of the funds received is from Tetra Tech who only paid 50% of their Sponsorship funds in 2007. They will no longer be a Sponsor in 2008 as employee that facilitated the Sponsorship has left their employee.

An additional $17,000 in membership dues is anticipated in 2008 if the Association maintains its 2007 membership level of 128. Due to the increased cost to conduct these meetings additional sponsors are being solicited. The forecast for 2008 for Sponsor funds is $137,800. Lynch will investigate methods to substantially increase Interest Income by the next meeting.

Lynch noted expenses for the same period compared with 2007 decreased approximately $3300 but he believed that over the full year, expenses would be more in line with previous years except for insurance. He noted that insurance expense increased because of the addition of D & O insurance coverage in 2006 and the increase in premium for liability coverage following the necessity to switch to a different insurance carrier and reduce the amount of liability coverage starting in 2006.

2008 Supplier Sponsorship – Lynch advised that thanks to the efforts of DD Director Jamy Hall and Association President Gus Palmar, JMsolutions has agreed to be a Gold Sponsor of the Association for 2008. Tarik Daoud advised that he had received a commitment from Steven Polk of R. L. Polk to be a Gold Sponsor also.

Committee Reports 

• Sponsors Committee – Lynch previously advised that based on the cost of the 2007 Meeting, the forecast for 2008 for Sponsor funds was $137,800 if attendance was the same as 2007. Also based on interest already expressed in the 2009 Meeting location (Disney World) he stated Sponsor funds would need to be even higher for 2009. Current Sponsor funds received and pledged is only $75,000. Discussion ensued about the need to acquire new sponsors and increase the sponsorship funds of loyal sponsors. At the March Board Meeting Director Matthews agreed to contact Reynolds & Reynolds regarding renewing their sponsorship for 2008. (They had been a sponsor they had been a Gold Sponsor as recently as 2004, 2005 & 2006.) Matthews reported that they were not interested in being a sponsor for 2008. Discussion ensued. Contact with Easy Care was considered, however it was quickly dropped because it is a direct competitor of Ford. After further discussion the following Directors agreed to solicit additional sponsors as indicated.
1. Director Bob Beine – B & G Products
2. Director Gus Palmar – Ford Credit, Manheim Auto Auction and Mudd Advertising
3. Director Tarik Daoud - NADA

• Awards Committee – Nominees for receipt of the Robert L. Rewey Award for 2008 were presented and discussed. After discussion a selection was made. The winner will be announced and the recipient will receive their award on Monday night, October 20th following the Gala Dinner at the annual meeting of the Association. (Dealer Milestone Awards were discussed earlier in the meeting and noted in these minutes.)
• Membership Committee – Secretary Lynch expressed concern that to date only 60 members had paid their dues versus 77 who had paid during this same period in 2007. (Dues were increased $100 per member for 2008). He advised that original invoices were sent in March and email reminders will be sent in subsequent months. Despite invitations being extended to Undergraduate dealers for the first time in 2007 very few have elected to join the Association and pay their dues. Dwindling membership continues to be a problem and will be discussed again at the October 2008 meeting.
• Nominating Committee – Secretary Lynch advised that in 2008 there will be 5 Directors and 2 Officers whose terms will be expiring. The Committee solicited current Directors to determine who would like to be considered to serve an additional three year term. Directors John Bearce, Gus Palmar and Art Silva asked to be considered. Discussion ensued and following discussion Director Irving Matthews agreed to speak to Leon Daggs about becoming a Director. Director Art Silva agreed to speak to Floyd Little.

2010 Site Inspection & Meeting Recommendation – Lynch advised that during the week of May 5^th a sight inspection was performed at four resorts in the San Diego, California (Rancho Bernardo Inn [site of the 1992 Alumni Association Meeting], the Hyatt Regency Mission Bay, the Hilton San Diego Resort & Spa and the La Costa Resort & Spa). The San Diego area was chosen to conduct the site search because it has been six years since an Association meeting has been held in California and sixteen years since a meeting has been held in the San Diego area where some of the best golf courses in California are located. A score was assigned comparing what each property had to offer and the properties were ranked. Two of the properties (the Hyatt and the Hilton) were deemed not to be adequate to conduct the meeting. Whereas Rancho Bernardo had added brand new meeting space, an award winning spa and upgraded their Golf Course, HVAC issues were observed in the sleeping rooms and meals consumed at the resort were not hot. The La Costa Resort & Spa in Carlsbad, California was the recommended choice because the resort has all the first class meeting amenities that the Association members have become accustomed to. The resort has recently spent $110 million on renovations.  A room rate of $229 per night (less than the room rate for 2008 of $255) was negotiated. The meeting would be held October 26 thru 28, 2010. 

Several Board members were familiar with La Costa having been there for FDAF, LMDA

or 20 Group meetings in the past. Previously during the meeting the subject of additional sponsor funds due to continual increased cost to hold annual meetings was discussed. Discussion ensued about the possibility of alternative times of the year to hold the meetings, discounts or rebates being offered by various properties or holding meetings every other year. The idea of holding the meeting on a 3 or 4 day cruise was also discussed.

The Board generally agreed with the recommendation to sign a contract with La Costa. Lynch advised that resorts of this caliber are booked up well in advance and the space could be lost if a decision was not forthcoming soon. Lynch agreed to investigate these alternatives further and report back to the Board prior to the next Board Meeting.

Next Board Meeting – The next meeting of the Board of Director will be held in The Board Room at the Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch Scottsdale, Arizona at 8:00 AM on Sunday, October 19, 2008. A full breakfast will be served.   

There being no further business to discuss the meeting was adjourned by President, Gus Palmar at 10:55 AM.

                                                                                    Respectfully submitted

                                                                                    John J. Lynch, Executive Secretary