Board of Directors Minutes: October 2002

Board of Directors Minutes: October 2002

INTERNATIONAL BOTTLED WATER ASSOCIATION

BOARD OF DIRECTORS MEETING

Phoenix Civic Plaza Convention Center

Phoenix, Arizona

Friday, October 11, 2002

7:30 a.m. – 10:30 a.m.

MINUTES

 

I. Call to Order

The meeting was called to order by the Chairman, Doug Oberhamer, Deep Rock Water Co., who announced the presence of a quorum. Those present were:

 

Officers

Doug Oberhamer, Chairman, Deep Rock Water Co.

Mike Verrochi, Vice Chairman, Blue Hills Spring Water, Inc.

Timothy Fallon, Secretary/Treasurer, Vermont Pure Holdings, Ltd.

William G. Bell, Past Chairman, Tyler Mountain Water Co.

 

Director

Stewart E. Allen, Sparkling Spring Water Group

H.R. Hidell, III, Hidell-Eyster, International

Scott Hoover, Roaring Springs Bottling

Kim Jeffrey, Nestle Waters North America, Inc.

Marwan Nesicolaci, Severn Trent Services – UAT

Steve Raupe, Eureka Water Co.

Anthony Salamone, Sunroc Corporation

Chris Saxman, Shenandoah Valley Water Co.

Gordon Vander Helm, Danone Waters of North America

Jeff Vinyard, Crystal Springs Bottled Water

Chris White, Suntory Water Group

Marcus Wren, III, Music Mountain Water Co.

 

IBWA Staff/Counsel

Joe Doss, IBWA President

Robert P. Brady, Hogan & Hartson, L.L.P.

 

II. Approval of the Minutes

It was MOVED AND SECONDED to approve the minutes of the June 13, 2002, Board of Directors Meeting. MOTION CARRIED.

 

III. Treasurer’s Report

Secretary/Treasurer Tim Fallon reported that the financial status of IBWA remains strong.

The most recent financials prepared by IBWA’s accountant (July 2002) indicated that revenues to date are being received according to budget (Total FY 2001 – 2002 revenue budget is $4,585,500). However, end-of-year projections indicate that total revenue for the year will be less than budgeted.

As a result of the downturn in the United States economy, membership dues revenue is expected to be below projections (FY 2001 – 2002 membership revenue budget is $2,750,000). For the same reason, revenue from the convention and trade show will likely be under budget (FY 2001 – 2002 Convention revenue budget is $300,000;Trade Show revenue budget is $850,000). Final revenue figures for these two events will not be available until after the meetings.

Total expenses to date are less than budgeted (Total FY 2001 – 2002 expense budget is $4,585,500). This is partly due to the fact that all costs associated with the convention and trade show will not be known until after the meetings and they have therefore not been posted. In addition, as a result of the shortfall in revenue, IBWA staff has significantly reduced expenses in all departments in an effort to avoid a budget deficit for fiscal year 2001- 2002.

We do not anticipate any significant unbudgeted expenses for the remainder of the fiscal year (December 1 – November 30). The exact closing figures for the fiscal year will be prepared by the IBWA auditor in December and presented to the Board of Directors in January 2003.

It was MOVED AND SECONDED to accept the Secretary/Treasurers report. MOTION CARRIED.

 

IV. Committee Reports

Secretary/Treasurer Tim Fallon reported that the April 2002 financials prepared by the Association’s accountant indicate that overall revenues are slightly ahead of budget. However, that will correct itself as the year progresses and we begin to incur expenses for the trade show, convention and other projects. At this time, we project that total revenue for the year will come in as budgeted.

The largest single source of revenue for IBWA is membership dues, which are coming in ahead of budget. Notices for second-half dues payments will be sent to members by the end of June. At this time, we estimate that total dues revenue for the year will come in as budgeted.

Total expenses to date are less than budgeted. Again, that should correct itself as we begin to incur costs associated with the convention and trade show. At this time, we do not anticipate any significant unbudgeted expenses. It was MOVED AND SECONDED to accept the Secretary/Treasurers report. MOTION CARRIED.

 

V. Committee Reports

Executive Committee

Chairman Oberhamer announced that Dan Geiger, Alpine Spring Water Company, and Tara White, Berkshire Springs, Inc. had resigned from the Board. He thanked them for their years of service and wished them well in their new endeavors.

 

Budget

Chairman Oberhamer discussed the current budget situation and the future budget projections for the association. Dues revenue is down due to mergers and consolidations. Expenses have been reduced to manage the 2002 budget, which is expected to result in positive balance at the end of the year. A 2003 draft budget will be completed by November 30, 2002, and circulated to the Board for its approval.

 

NSDA

IBWA and the National Soft Drink Association have executed a Memorandum of Understanding, which has a term of 12 months. It provides for monthly meetings between the two organizations, one of which has already been held. The MOU formalizes a system with which both organizations can work on common issues.

 

Association Planning

Chairman Oberhamer reported that the Association’s January Board meeting will focus on the on the future of the organization in a planning meeting scheduled around the Committee/Board meetings. IBWA should issue a statement to the membership that discusses the direction and future of the association after the planning meeting.

 

It was MOVED AND SECONDED to accept the Executive Committee report. MOTION CARRIED.

 

Technical Committee

Technical Committee Co-Chair Tom Condon, Suntory Water Group, Inc. presented the report. He discussed Model Code changes, various Task Force reports, FDA adverse event reporting, and the draft Candaian bottled water regulations. The assistance of Dr. Stephen Edberg was requested for technical work on the Canadian regulations. A copy of the minutes of the Technical Committee meeting held Tuesday, October 8, 2002, is attached to and incorporated as a part of these minutes.

 

Government Relations

Government Relations Committee Co-Chair, Leann Underhill, Absopure Water Company, presented the report. A copy of the minutes of the Government Relations Committee meeting, Wednesday, October 9, 2002, is attached to and incorporated as a part of these minutes.

A packaging policy paper was approved by the Committee and will be posted on the IBWA website. The IBWA Packaging Policy Position was approved at the last meeting, and the paper expands on the Packaging Policy Position.

It was MOVED and SECONDED to approve the following revision of IBWA Model Code Rule 2 Product Quality by adding “and Security” to the title of Rule 2, and adding a new subsection (d) which reads as follows:

“IBWA bottler members shall adopt written policies and procedures designed to protect the integrity and security of their operations and products. The companies’ HACCP plans, required under Rule 3 of this Model Code, address vendor programs and materials management issues that affect the security of bottled water products. In addition, the bottler member must document other security measures, including but not limited to those addressing security of buildings, employees, materials, transportation, and products. Beyond processing and packaging, the companies’ recall plans, as required under Rule 3, shall address tracing and retrieval of product.”

 

Also, inserting a new subsection (b)(2) under Rule 4 that reads:

“In lieu of source monitoring required by this Rule, a plant operator not using a public water system as a source may reduce the testing frequency of that source, as well as the number of chemical contaminants tested, if it can be documented that such reduction is consistent with a State-issued monitoring waiver.”

 

MOTIONED CARRIED

 

Communications Committee

Communications Committee Co-Chair Heidi Paul, Nestle Waters of North America, presented this report. A copy of the minutes of the Communications Committee meeting, Tuesday, October 8, 2002, is attached to and incorporated as a part of these minutes.

There was a discussion by members of the Board of Directors about the use of the IBWA logo by bottler members. Staff was directed to research previous Board discussions and legal implications for review at the next meeting.

 

Supplier Committee

Supplier Committee Chair Rick Hess, Hess Machine, International, presented the report. A copy of the minutes of the Supplier Committee meeting, Wednesday, October 9, 2002, is attached to and incorporated as a part of these minutes.

 

Awards Committee

Awards Committee Co-Chair Jan Saxman, Shenandoah Valley Spring Water., Inc., presented the report. A copy of the minutes of the Award Committee meeting, Tuesday, October 9, 2002, is attached and incorporated as part of these minutes.

There was discussion regarding the plans for the 2003 Aqua Awards. After debate, it was MOVED and SECONDED that IBWA continue the Aqua Awards in 2003, but eliminate the presentations during the general business sessions.

 

MOTION CARRIED

 

Membership Committee

Membership Committee Chair Andy Mooradian, Blue Hills Spring Water, Inc., presented the report. A copy of the minutes of the Membership Committee meeting held Tuseday, October 8, 2002, is attached to and incorporated as a part of these minutes.

 

Education Committee

Education Committee Chairman Glen Davis, Absopure Water Co., presented the report. A copy of the minutes of the Education Committee meeting held Tuesday, October 8, 2002, is attached to and incorporated as a part of these minutes.

 

State Association Presidents Committee

State Association Presidents Committee Chair, Bryan Hendrix, South East Bottled Water Association, presented the report. A copy of the minutes of the State Association Presidents Committee meeting, Wednesday, October 9,2002, is attached to and incorporated as a part of these minutes.

 

Special Guests

International Council of Bottled Water Associations

Steve Keim (Australian Bottled Water Institute), chairman of the International Council of Bottled Water Associations, updated the Board on the association’s recent activities, goals, and purpose as the global voice for bottled water. They are working on a long-term vision. Their goal is to assist each member association with improving their programs for bottled water.

 

UNESEN-GISENEC

Torben Friis Chairman of the UNESEN-GISENEC, was invited to address the Board of Directors. He reported on the completion of the CODEX bottled water regulations, and European Bottled Water Association efforts to unite the various segments of bottled water throughout the European Union, Middle East and Africa. The European Federation of Bottled Water was approved within the last two weeks to unite all nations and types of bottled water. He also described the working relationship developed with the European Soft Drink Association with each water group retaining the ability to defend their own interests.

 

Drinking Water Research Foundation

Chairman Jack West, Puro Filter Company, presented the report. A copy of the minutes of the Drinking Water Research Foundation meeting held Wednesday, October 9, 2002, is attached to and incorporated as a part of these minutes.

 

V. Old Business

Chairman Oberhamer thanked Mr. Kim Jeffery, Nestle Waters of North America, for his service on the Board and announced that he will continue to be a member of the Executive Committee.

The Board and attendees applauded Doug Oberhamer for his leadership as Chairman of the Board of IBWA for the last year. He indicated that he will remain active in the Association and thanked the membership and staff for their hard work and support.

VI. New Business

The next meeting of the Board of Directors will be held January 17, 2003, at the Aladdin Resort and Casino in Las Vegas, Nevada.

VII. Adjournment

There being no further business to come before the Board of Directors, it was MOVED AND SECONDED to adjourn the meeting. MOTION CARRIED.

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