Offshoreonly.com - 14-H Responds to Mike A. (again)

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[i]Originally posted by Mike A.

• APBA has roughly 8 employees and a payroll expense of $227,000.00 annually even though it has revenues of less than $1,000,000 and most of its operations are now fully automated. When Offshore recently assumed control of the entire sanction, insurance and membership functions of the category it did so without hiring a single additional employee.

Offshore never assumed APBA's sanction, insurance and membership functions. Offshore just created its own on top of those from the APBA and all Offshore members know this. Offshore has operated kind-of like an exclusive local club for putting on all of APBA's offshore races in that you still had to join the club but you also had to join APBA and APBA kept track of membership information, assigned numbers, authorized championships and UIM championships kept track of records, administered the Hall of Champions all at the direction of but in addition to Offshore's administration. For its own, Offshore LLC charged additional fees (besides the APBA membership and sanction fees that went to Detroit), which the LLC had every right to do under the license agreement. But don't try to pretend that Offshore LLC eliminated its portion of the National Office's administration and overhead. This is not accurate.

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• Detroit also paid out $27,500 in hospitalization and disability insurance premiums for an already bloated staff.

• Detroit also paid out $15,000 in pension expense.

• Detroit also paid out $65,000 in additional insurance expense such as Director’s and Officer’s Liability coverage for a small company of less than $1,000,000 in annual revenues.

What does the LLC pay for its equivalent of these overhead expenses?

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• Detroit also paid out $28,000 to Steve Hearn for legal services many of which such as bylaw amendments and updates simply never were performed.

Oh, yeah: What work did APBA pay for that wasn't performed as requested, smart guy? Before you go around slinging slander like this, you ought to have enough guts to back it up with facts. And if you're insinuating that R.Steven didn't write the SeaTac By- Laws (that you weren't smart enough to get drafted before your term on the BOD ended) , recall that SeaTac was in August and R.Steven was fired by Jones in April. Mr. Bernstein was working on SeaTac ByLaws and never completed them. Who's fault is it that they were not completed before November 1? ANSWER: Yours!

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• Detroit also paid out $25,000 for Board of Directors related expenses.

Mr. Jones was the only APBA director reimbursed for his UIM expenses. Let me see, did you bring a motion before the APBA BOD when this was approved to deny that request? That's what I thought.

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• Detroit also suffers an annual $60,000 net loss to produce the Propeller magazine.

The members want this Mr. Allweiss! If they didn't, they'd complain about it. Again, your lack of concern about the members reveals your agenda. By the way, what portion did the LLC contribute directly for this benefit? ANSWER: None. It was contributed to by Offshore members through their APBA membership dues which you continue to withhold even though the Propeller comes out every month just as it did before.

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B. PASS THE RESULTING SAVINGS ON TO THE MEMBERS.

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In a myriad of ways. We could reduce membership fees and sanction fees. We could also simply allow the categories to keep roughly 90% of the revenue they generate rather than giving it to the Board to hold onto and use as they want.

Excuse me. Wasn't your proposal (SeaTac) to pass 1/3 of the APBA profits to the licensees? And another 1/3 was to go to the APBA BOD. We've already seen your proposal on how to do this.

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The License Fee would be based on fair market forces but it should be minimal with the money used strictly for the minimal overhead needed by a renovated, more efficient sanctioning body, such as minimal staff needs and minimal physical plant and facilities, and perhaps for dedicated new member racing programs.

This is like the car salesman asking the buyer how much the car should cost. Mr. Alweiss' company holds a license! His last suggestion for the actual amount for his company's license was $1.00 (I did not misplace a decimal or forget any commas or zeros).

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E. ALLOW THE BOARD TO HIRE A QUALIFIED CEO/PRESIDENT AND GIVE HIM/HER COMPLETE AUTHORITY TO EXECUTE THE BUSINESS PLAN. THUS, IF HE/SHE DECIDES TO ELIMINATE CLASSES, CONSOLIDATE CLASSES, CHANGE RULES, APPROVE RULE CHANGES, ETC. HE/SHE CAN DO SO RIGHT THEN AND THERE.

The 2002 BOD tried to do this under Plan 2000. In fact, they had a candidate for this position in mind. Mr. Allweiss along with Mssrs. Jones and Jacobsen harpooned this proposal.

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I know for a fact that the "friends" have failed to address the current insurance situation. We secured a much better program than the ASIS program in relatively short order. Your leaders need to be focused on the task, however, and right now they are focused on fighting Offshore and preventing you from racing in a great event.

You are full of it. YOU VOTED IN FAVOR OF APBA'S CURRENT INSURANCE PROGRAM WITH ASIS AS AN APBA BOD MEMBER. Now its no good since you've been denied access to it as a result of the dispute between APBA and the LLC. I have personally been attempting to help the APBA consider its insurance options for next year and this is nothing more than a complete misrepresentation on your part.

You know, Mr. Allweiss: the Judge in NY has the entire matter under advisement, so I have plenty of time to respond to your innaccuracies. Want to keep this going?

14-H