CALL TO ORDER: The Commodore, Donald Crandall, welcomed the Board of Directors and guests to the Board of Directors' Spring Meeting at the Chicago Yacht Club, Monroe Street, Chicago, Illinois at approximately 10:00 a.m. at which time there was a quorum present. This being the first meeting as the new Commodore and he wished to thank everyone for their attendance and looks forward to their support during his term.

APPROVAL OF THE MINUTES: On motion duly made and seconded, the minutes of the November 8, 2003 meeting held at the Chicago Yacht Club, 400 East Monroe Street, Chicago, Illinois by LMSRF Board of Directors, which were previously published and distributed were accordingly approved.

COMMODORE'S REPORT: Commodore Donald Crandall thereafter followed up with his report which began with his update of the U.S. Sailing Meeting which was recently held in Mobile, Alabama. He reviewed and discussed the recommendations from the Appeals Committee stating further that U.S. Sailing is interested in the timely completion of Appeals. Concerns raised regarding the timeliness included when does the clock start, when does the clock stop and how many are there and should they be handling them. Full reports, thoroughness and timeliness are issues on which it was focused. Who all should they set for and what is the proper procedure in that regard? The meeting itself covered numerous topics and the Commodore indicated it was positive and constructive with the participants interested in achieving positive results for the racing sailor.

It was further noted that the LMSRF Appeals Committee would make themselves available to serve for others or as part of a Regional Appeals Committee, Procedures and Timing of the Appeals process requirements need to be followed strictly so as to enable U.S. Sailing to put them in the new Rules Book for 2005-2008. Considerable concern was raised regarding turnaround time, noting generally, it not the Appeals Committee with the delays but rather the Protest Committees which take an extended period to provide a detailed report.

Also, U. S. Sailing has agreed to administer the racing rating system in the U.S. but not to endorse it. The actual reorganization of U.S. Sailing will be reviewed, discussed and followed up at length at the end of the season. We should maybe also consider membership to Windsurfers s well as others.

The Commodore indicated that he greatly enjoyed the opportunity to attend the Annual U.S. Sailing Meeting and noted that LMSRF is well respected by U.S. Sailing and more in this regard will be discussed later in the meeting.

ELECTIONS AND APPOINTMENTS: It was noted that Area III holds its elections for Vice Commodore in the spring and LMSRF hold their elections in the fall with the Area III Administrator being appointed by LMSRF. Joseph McGinnis also indicated he was resigning as Vice Commodore. He believes there should be a link between LMSRF and Area III and is recommending to serve in such capacity as the Area III Fleet Captain. There is a need for the person to be familiar with Area III racing and LMSRF with interaction which is believed would be constructive. The official resignation for Joseph McGinnis will become effective at the end of this meeting.

It was moved, seconded and passed that the resignation of Joseph McGinnis be accepted and there is a need to appoint an Area III Administrator.

It was also noted regarding Area III the mailing was different that that to the members in the other areas. LMSRF did a mass mailing to most other areas. Looking at LMSRF support, it becomes apparent but for Area III sailors support becomes everything. Area III has approximately 290 members. What needs to be accomplished is to receive equivalent support from the other areas. Membership subscriptions to date were reviewed and it was moved, seconded and unanimously passed to approve the present membership applications which had not previously been approved.

EXECUTIVE SECRETARY'S REPORT:

a) Yacht Club Membership and Individual Membership status: Membership is good and it's still early. We anticipate it to be similar to last year. However, new members are needed and should always be pursued. The yacht clubs registered for this year are approximately the same as last year. However, all have not been contacted in the Lake Michigan Area yet and many still need to be pursued which have not yet ever been members. LMSRF should usually have approximately 85-95 Club memberships each year according to past records. The Vice Commodore, as one of his responsibilities should be following up on non-member Yacht Clubs to undertake whatever reasonably necessary for new membership. It is necessary for us to offer them some type of benefit which would justify having them join. We need to pursue this further.

b) Newsletter: It was projected presently to be sent in May, with approximately 100 being mailed. The utilization of the website has greatly reduced costs and further given LMSRF much more exposure and availability. Advertising has also greatly reduced costs as has our working together with Area III when we consider cutting overall overhead.

On membership applications, we are now asking for an e-mail address because it has been found to be more efficient and also more effective with easy access. As to actual newsletters, LMSRF puts out newsletters quarterly and proposes to so continue this practice. The concern is to improve our communication with our members. We need to create an interest for readers in the newsletter. Also, there are several new websites to be conscious of which may have application for sailors. H2O in addition to the National Coordination of Sailing Events should be reviewed. LMSRF should be considering using leverage on our website for communication. We need to consider how we can offer more services and further improve services to members and how we can appraise our website together with services made available thereon. In the coming newsletter, the inquiry will go out as to how LMSRF can better serve you as a sailor on Lake Michigan.

Continued Area Race and Yearbook 2004 status: The books are at the printer and will be out for members shortly. The cost of such publication is being cut by the number of books being printed. In 2003 there were approximately 600 yearbooks printed and this year we're only printing about 525 which is a significant cost cutting exercise. Presently projected advertising should take care of printing. Also, Susie, our office staff, has helped tremendously in pursuing cost cutting measures. Area III entry forms are also in the 2004 LMSRF yearbook together with year to date fiscal and personnel information listed. There has been a LMSRF Budget and Actual Spending comparison for two years to review which was posted. Last year's figures were utilized in the information as well as actual year to date. However, as pertains to the actual figures, more updated material will be available and provided for the next meeting.

Regarding personnel, new staff as reported last time is doing outstanding. However, costs are up. One is working 12-45 hours per week in the office and also does the scoring while the other is working approximately 30 hours per week. One of the staff presently is extremely proficient with the computer and the other is learning the LMSRF programs and procedures. This is all complimentary with the office automation project.

Office Automation Project: This has not yet occurred. However, it continues in the process and the office has been working with an individual who has inverted a lot of time in the project. However, a lot of time and money is needed to be invested for our office automation to achieve desired results and thereafter continuing continuously to update such programs. We are not yet in a position where we would like to be yet. One of the differences is between what we are specifically looking for and what the programmer is actually providing at this time. The new programmer with whom we are presently working is giving us less for free and it looks more like significant additional funds will be needed to achieve the deserved working database we are seeking. Presently, we are able to obtain reports with results in a timely manner. The Programmer has actually built this program such that information can be input without disturbing the system as it is. He hard codes the queries. We tell him what we want and accordingly he will build a hard code into the program. However, if you want additional information, the manner in which it is presently set up would require him to build another hard code for the additional query which will cost additional money. We need to make a decision about if we want two employees who are computer literate for our program and what it is exactly that we are looking for. LMSRF needs flexibility but not necessarily on the basic level. We presently have personnel who are computer skilled and therefore it is not necessary to do bare bones each time.

The Race Management Committee and Area III Computer Committee want to be able to set up the computer program and information such that it will wok for all interested. Area III is a long way from this yet. We are not yet automated either. We thought it would all be on the server and we would be able to just go into the database and be able to just pull it off, but it wasn't constructed in that manner. Presently, e-mail needs to be rekeyed to the database and this is because this is the way it was built.

Note however that Area III has made tremendous strides as to its reporting results and also providing information back to generate follow up information back to the club rapidly. However, now the issue is to deal with improvements, updating and duplicate data entry information on as cost plus basis. We are committed to this program at this time. Our next step is to increase flexibility while continuing to cut costs. To date LMSRF has invested approximately $6,000 into the program and Area III has invested approximately $600 and invoices have been submitted for another $l,000.

Previously, our programmer has been working diligently and further has invested on our behalf a substantial amount of unbilled time. He was working for less than $10/hour on our behalf. We need to own the Code and have flexibility in the program which we need under our control. Ideally, we would also own the program.

The Computer Committee Status Report was reviewed. To realistically set up that which would satisfy that for which we are seeking, it would cost approximately $100,000. Our budget to date has been $6,000 and we are slowly working on the program, piece by piece. There already has been a significant amount completed and it has impacted tremendously. Area III for the past year has been using "Race Sail". We also received a new quote for updates on this program. Area III has committed to $600 of work and has already been paid for 2004. The $600 which has been paid by Area III pertains specifically to office automation but not going live. This is where we will need to go and costs related thereto will just need to be covered. The system is working but needs to be prioritized as to projects and time of completion of such.

Regarding Grants in Aid coming to the assistance in this regard please see the press release attached and made a part of this report. Contributions in support of furtherance of such total approximately $1,300.

Safety at Sea Seminar is scheduled early in the season before the Chicago-Mac Race. The scheduling was arranged so as not to conflict with other sailing related events and exercises. In the future, more attention remains to be given in this area.

The Strictly Sail Booth worked out well again at Navy Pier. However, we need to address the needs of sailors and offer ways to fulfill them. We need to give them a benefit for joining LMSRF. We need to continue working to improve the LMSRF identity and also find additional ways in which to generate income and a positive cash flow. We, LMSRF should be considering sponsoring a Safety at Sea Seminar.

LMSRF needs to generate relationships and net income. Advertising and marketing need to be evaluated and thereafter upgraded. We need to fly our flags. Another way generating income for LMSRF is through shirt sales again advertising LMSRF. One such shirt was modeled by Don indicating such a shirt could be purchased by LMSRF for total costs of approximately $22 and could be sold for approximately $35. We need definition and exposure on all of Lake Michigan. We need to be identified as LMSRF and further need to assume the capacity of "Race Management". If seminars and teaching classes run through LMSRF additional net income should be generated. This is something for future consideration and further recommendations.

TREASURER'S REPORT: Nancy Glover thereafter provided the Board with an overview of information which included a review of 2003 and doing budget comparisons and projections for 2004 along with supporting representations. The Budget for 2004 has been proposed but not yet approved. A proposed budget is almost complete. For 2003 LMSRF was close to budget, however professional fees and operating expenses were not on track and significantly exceeded projections. She reviewed revenues generated and further discussed them. Also, regarding Olympic related funds, administratively LMSRF charges 5% for handling disbursements administration. On all Olympic Donations LMSRF retains 5%. The 2003 expenditure were detailed further indicating a large percentage being spent on professional fees. LMSRF is on a cash flow basis for reporting.

In terms of the budget, Nancy elaborated that we need to generate more funds and we need to have our own means of doing so while effectively cutting costs. Billed hours in 2002 were at approximately 800 while in 2003 they were approximately 770 and the year 2004 appears to be working along the same hours as 2003. With office automation and all that is presently being dealt with we anticipate increased budget costs not listed and accordingly we need to look for additional income.

Regarding the Financial Review, it was fine. It was fully undertaken by Bob Sargent who thereafter discussed and reviewed it with the Treasurer. However, because of some health concerns he will be stepping back and another will have to do it this year. The Board will give further direction in this regard.

ENDOWMENT FUND REPORT: See the attachment for the full report which attachment was reviewed and accepted by the Board - Prepared by David F. Radtke

COUNCIL REPORTS:

OFFSHORE: Gary Hendriksen provided a report together with a packet. His oral report summarizes the attached report submitted to the Board at the meeting and is incorporated herewith. Gary is also looking for revenue generation and growth in the offshore fleet. There is one new one design fleet this year, the Beneteau 36.7 Fleet. One Design entries are up; there have been changes in the fleets and also fees relating to such fleets as more fully outlined in his report. Proposed budgets are also supported by the attachments prepared and submitted. For further support offshore and LMSRF Gary is focusing on obtaining additional advertising to assist in financially offsetting costs/expenses related to operations and the coming regattas including the Richardson Trophy Regatta at the Racine Yacht Club scheduled to be held October 8, 2004 with the qualifier tentatively scheduled for MBYC. Sponsorships and sales are critical to the continued success of these various programs and projects.

Regarding Wednesday night racing, the number of boats participating has increased. However, the number of boats participating in weekend racing has decreased from 2003. Gary is seeking and is open to ideas to encourage or otherwise create an expanding interest in offshore racing this year. He is in the process of preparing a flyer "Be The Best On Lake Michigan" and looks to have a more organized and unified program with the support of the various areas around the lake in an attempt to establish continuity. There needs to be more LMSRF involvement and participation with a designated supporting schedule. He would like to see the area Vice Commodore become involved in this aspect and would like suggestions on how best to proceed. Often we're lacking a "Common Vision" and now for the success of LMSRF this needs to be promoted and pursued. Maybe subcommittees could help. There needs to be a common message with more people wanting to do more. The Commodore and Executive Secretary are to further coordinate this concept and submit a strategic plan in this regard by the fall of 2004 intending to implement it for 2005 and thereafter.

YOUTH RACING: The proposed Youth Schedule has been published and is made a part hereof with the final schedule to be completed by May 1, 2004. Work in this regard is together with the Midwest Junior Sailing Association. It also being noted that LMSRF Youth Championships this year will be held at the Sheboygan Yacht Club, approximately July 26-30, 2004. This is new for Sheboygan who has never before hosted a youth regatta at their Club. Let's give them lots of support. This is a good opportunity. MYSA is also now attempting to work together with our youth council in furtherance of development and support of the available Youth Programs presently available.

ONE DESIGN REPORT: There is no report.

1) Nominating - There is no new report.

2) Membership - Nothing further at this time.

3) Publication - Nothing further to report.

4) Championship - Nothing further to report. However LMSRF is willing to work with support/after services as needed to any group, club, or association seeking assistance or direction in this regard.

MEASUREMENT RULES: Everything remains status quo. U.S. Sailing has helped in the process of IRC to the U.S. However, it has not yet been voted upon.

Do we want to consider a "Good Guy" and "Good Gal" award and if so, what are the parameters? How one would qualify and further how would anyone win? LMSRF does not have a plan to present this.

AMERICAP: It was upgraded again this year and specifically applies to the Chicago-Mac Race. Sail definitions need to be finalized. A "Code O" needs to be further qualified. It has not yet really been defined.

PHRF: Nothing further to report.

APPEALS: Six decisions were made in this report. It was noted that the Appeals Committee has not been the Committee holding things up or responsible for delays but rather it appears the Protest Committee has been extremely slow. Of the six appeals filed, one has been appealed further to U.S. Sailing. Over the last three calendar years, LMSRF has averaged six appeals per year and the average time to issue a decision has been 146 days. Thereafter, further discussion of the Appeal process and procedure was reviewed and discussed. The Committee indicated it will always meet in a timely manner and do whatever it takes to get the job done. Note the rules and procedure in the LMSRF Yearbook.

ADVISORY COMMITTEE: No report.

GRANTS IN AID: See the report prepared by Dean Cady.

RACE MANAGEMENT: U.S. Sailing will be conducting three basic training courses in race management, to-wit: Milwaukee Yacht Club, Muskegon Yacht Club and the Chicago Yacht Club. These are non LMSRF related. However, Allen Teske, for the second year has again conducted such a course at the Columbia Yacht Club with it being open to all. New Rule Books were also available and could readily have been purchased at Columbia Yacht Club. Allen was pleased to see the number of Competitors taking the Course and the discussions which followed. It was all positive. However, LMSRF needs to get more involved in this area. With new Rule Books coming out in 2005, this will present a perfect opportunity to schedule and put on seminars covering the Rules. LMSRF is going to see if it can partner with Allen Teske in this regard promote his seminar and benefit from such support. We look to work with him and not to create our own race management.

DONATION: There was nothing of any consequence to report. The Board was again reminded that LMSRF does accept nautical donations and this should be another avenue for additional funds which needs to be pursued.

OFFICERS AND DIRECTORS INSURANCE: Glenn McCarthy provided information and also a question in this regard. LMSRF used to have such insurance but it was cost prohibitive. For $1,000,000 claims coverage per year with a $5,000 deductible the cost is $2,011 per year at this time. It was also noted that Certified Judges are insured through U.S. Sailing. Appeals Judges are not insured and LMSRF does have Regatta Coverage and the greatest exposure through all this is property damage and personal injury. After a discussion in this regard, there was no motion passed to accept the bid and with further discussion, it was agreed that this is something which needs to be reviewed individually and all Board members made aware. If the Board wants it, then it should be revisited. However, there was no motion at this meeting to accept such coverage. It further noted that LMSRF first needs to generate additional income before spending it.

It again being noted, LMSRF needs to generate additional income and revenue. Accordingly, a Revenue Enhancement Committee needs to be established.

There also was a request of $500 being allocated for the Race Management Committee, which amount is $250 more than that previously established. Upon motion so made, discussion following and a vote thereafter, such was unanimously approved by the Board.

A Revenue Enhancement Committee needs to identify realistic sources. This should be put in perspective to address the deficits.

Upon Motion duly made after further discussion, it was unanimously approved that the deficit budget being proposed at this time be approved. However, such budget is to hereafter be reevaluated and reviewed quarterly.

It is now appropriate to establish a Revenue Enhancement Committee for LMSRF for continued growth and development. Additional outside sources are to be pursued on a short term basis and also on a long term basis. Broader representation should be considered with recommendation by the Fall Meeting with a focus of reaching out and offering something positive and constructive to all sailors. Also, what is happening to our young sailors, ages 15-21 years? We need to follow up and pursue this issue as well.

Regarding a Revenue Enhancement Committee, the Board will remain totally open to recommendations but further establishes the Committee at this time with the following individuals, to-wit:

There being no further business the meeting was concluded at 2:30 P.M

It thereafter determined that the next Board of Directors meeting would be held at the Milwaukee Yacht Club June 25, 2004 at 10:00 a.m.

Respectfully submitted,
Donald Thinschmidt, Secretary