5/21/97
San Francisco Region, Sports Car Club of America
Minutes of Sixth Meeting of 1997 Board of Directors
May 21st 1997

The meeting was convened at 7:16 P.M. R.E. Gary Pitts, B.O.D. members Sal Versaggi, Pete Wagner, Steve Archer, Kevin Jenkins, Tom McCarthy, and Clint deWitt were present. Mr. Roger Eandi (National Representative), Mr. Dick Templeton (Executive Stewart NorPacDiv), Mr. David Vodden (Region Business Consultant) and Mr. Glen Hills (Vintage Racing Chief), invited guests of the Board, were also present.

The minutes of the last meeting were approved by acclamation.

Roger Eandi gave us his "National Report" i.e. Spec. Renaults were once again turned down as a regional class only. Discussion ensued. There is a strong possibility of the Renaults being allowed to run in vintage. Regarding rumors that Pro Racing is being sold -He felt that since it required a 2/3rds approval of the membership, it was extremely improbable and darn near impossible.

Glen then gave us an extensive and thorough report on Vintage racing as follows: The October event at Laguna Seca was a success. There was a car count of 217, which included Nasport semi-pro. Glen expects between 250 and 300 entries, not including Nasport, (which was not invited this year) at the October Laguna Seca event scheduled this year. 4,000+- flyers have already been sent out and he has received 60 entries already; 15 of these are "new" not before registered members. He then handed out a projected budget for the year that showed the Laguna event generating a profit of $9,230.00+-.

Glen then gave us a convincing sales pitch for three Vintage events that he would like to run for the '98 season; one at each of our normal venue tracks. Glen felt that based on the current feed back from competitors he could hold a profitable event at Sears Point if he could use the date normally scheduled for the P.C.R.R.C.. He received a verbal guarantee of 200+- entries from V.A.R.A., if he were allowed to use said date.

Regarding Thunderhill; he would like to get a Memorial Day date. Glen additionally mentioned that he needed Friday registration and technical inspection.

After Glen's report there was much favorable discussion amongst the board. Tom suggested that perhaps a trial run at this years P.C.R.R.C. be looked at and 100+- Vintage cars be allowed in two run groups instead of the normal semi-pro groups.

Tom and Dave then gave us the Thunderhill report as follows: All the wiring is in and hooked up except for a 1300 amp. electrical panel which is still waiting on delivery from the manufacturer. Bids are coming in over original projections but are being negotiated down to projections as needed. The original track configuration will be modified by August and the new mile of track usable by September should the Properties Board approve it.

Sal Versaggi is currently drawing up "working drawings" for new Comfort Lounges (toilets and showers) which could be implemented this summer. Current and projected business looks good and profits are projected. If the Region is going to get a new "Worker" truck (see next item in minutes.) then Properties would like to barter for the old one if it's agreeable to the Board.

Regarding the new Worker truck: Tom got a pretty good price for a "97 crew cab dually with a 460 c.i. engine, auto, air, heavy duty tow package and color of our choice. A pre-approved loan for 25 thousand dollars has been applied for. Motion to buy new Worker truck (McCarthy/Wagner): Passed unanimously.

Dick Templeton gave his report: The one day drivers school in July is a go.

Kevin gave the Treasurers report and profits and losses. They were as follows: a loss for April of $8,881.00 and a loss to date of $38,892.00. Our dues were ahead of budget and expenses were below budget and that seemed to be an area where we could make up some of our forecasted losses. Bottom line: The "good news" was we are tracking well on the forecast. The bad news was the forecast projects a $60,000.00 loss at year's end.

Kevin then made the following recommendations:
1)Send Chiefs a "cost control" letter.
2) Reinforce and follow approval procedures before expenditures are made by anyone.
3) Promote race entries by special letters to drivers, phone calls, Wheel promo/ads, buddy system and direct solicitation to other Club drivers.
4) Add revenue-generating items to existing schedules wherever possible.
5) Review the PCRRC event for revenue and expenses.
6) Review October vintage event for revenue and expenses.
7) Consider now the impact of the following: a) July Drivers School/Solo 1. B) PCRRC low entry combined with no sponsor. C) PCRRC Leukemia deal. D) Last race of the year, 1 week after 3 day PCRRC. E) RDC Enduro and Solo 1 format. F) Banquet financial loss. G) Capital equipment replacement.
8) Consider "fund raiser" expense offsets.

Although the best revenue generating activities are yet to come, the forecast takes all this into account. The fact that we are running close to projected forecast after four months tends to validate the projected final results.

With the exception of the subsidiary, our financial profile is one of neglect. Almost fully depreciated assets, limited cash reserves, except for the Solo ll component over which we have no apparent control, falling revenues, and increasing expense. Add to this the inevitable loss of stature and position, once our greatest asset, within the Northern California and National road racing community.

The Region needs a business plan and manager to implement it.

The Board thanked Kevin for his work and "eye opening" report.

Because of the lateness of the evening the Liaisons report was pushed to the next B.O.D. meeting on June 14th along with the Properties B.O.D. meeting.

A June 4th Chief's meeting was Scheduled for the purpose of letting the Chief's know that we were going to make some cut backs and hire a business manager.

Where upon the meeting adjourned at 12:35 P.M.

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