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BMW ACA/CCA
Analysis of the Impacts of Joining the CCA
This is the second article on the ACA/CCA issue. For background or a refresher, please see the first article in the November/December Zündfolge.
Your BMW ACA Board formed a subcommittee to study the "Pros" and "Cons" of joining, or really converting the present ACA chapter to a chapter of the National Club, BMW CCA. What the subcommittee found was that we were not going to end up with a simple list comparing advantages and disadvantages. Most of the issues are too complex for that. What we found is that in certain areas, joining might be a "Pro" for some people and a "Con" for others. For a simple example, please see the section on Dues. Further, some of the changes that would occur if we joined would have a direct impact on all members and some would have a direct impact on some of the members. Therefore, we are considering this document to be a study of the potential impact of becoming a CCA chapter and not a list simply of "Pros" and "Cons". As you review this, please be aware that this document reflects how the ACA operates now and how we understand things would change if we joined. You never know how things will actually be until you make the change. Further, a change in operating procedure by either Club could render certain parts of this to be inapplicable.
We have selected several topics to review. Taken as a whole, we hope that the various discussions will form a comprehensive assessment of the impact of becoming a CCA chapter. You will probably find this to be a little disjointed and redundant as many of the topics really apply to more than one Club activity or organizational duty.
Dues
This is a good example of why simply listing Pros and Cons doesn't work. Our annual dues are $25 and our membership is a "family" membership. CCA annual dues are $35 but the membership is an "individual " membership. CCA has an "associate" membership status for an additional $5. There can only be one Associate Membership per Individual Membership, so a third membership in one family would cost $35 for a total of $75 for all three. There is a provision for a CCA Chapter to charge "local" dues in addition to the $35. The 275 or so ACA Members who are also CCA members would only have to pay dues to CCA at CCA rates.
Club Finances
At this point in time, our chapter has approximately 1,100 members. Based on information provided by CCA, it appears that there are approximately 550 CCA members who live on this side of the Cascades and who are not currently ACA members. While these 550 can join any CCA chapter they want, we assume almost all would become members of a Western Washington Chapter if one were formed. Based on these numbers, a switch to CCA appears to be financially viable as demonstrated below.
Our basic approach as an ACA chapter has been to have all events and activities, except for the Concours and Zündfolge magazine, to be self-supporting. Dues, therefore, have been intended to cover Administrative Expenses, the net costs of the Concours, magazine and "contingencies." In reality, Track and the Banquet have made a "profit." Roughly speaking (the per member and total figures do not match exactly), the figures for on a per member basis and for the Club as a whole for 1,100 members based on expenses for 1998 and 1999 to date are as follows:
Total Per Member
Income - Dues $27,500 $25.00
Net Income - Track/Banquet 4,500 3.90
32,000 28.90
Administrative Expenses 7,000 $6.35
Concours Net 1,500 1.44
Event Deficits* 500 .40
Zundfolge Net (at current rates)** 19,500 17.84
28,500 24.51
Net $4,500 $4.39
* These represent unbudgeted short falls on minor events such as Baseball, Hockey, Emerald Downs, Dyno Day and SOVREN outings. They do not include other "contingencies."
** Based on 12 issues/year although we only published 11 in 1999.
If we became a CCA chapter, two things would happen financially. First, we would gain approximately 550 members, hopefully. Second, of the $35.00 paid to CCA, the chapter automatically gets only $13.50. There is another $1.00 or so available through rebates from CCA if certain conditions are met. This does not include the potential insurance rebates that would be credited to Track. It appears that Administrative Expenses would be reduced to approximately $2.75 per member if we joined CCA and acquired most or all of the potential 550 new members. Assuming that the Track and Banquet "profits" do not increase in total and that the Concours and Contingencies stay the same in total, the figures based on 1,650 members might be as follows:
Total Per Member
Income - Dues $22,000 $13.50
Net Income - Track/Banquet 4,500 2.75
26,500 16.25
Administrative Expenses 4,500 $2.75
Concours Net 1,500 .90
Event Deficits* 500 .30
Zundfolge Net 17,000 10.20
23,500 14.15
Net 3,000 2.10
The above does not take into account the potential extra income (up to about $1.00 per member per year) through CCA's Incentive Program and is based on 11 issues of the Zundfolge per year.
We had been concerned that we might have to change the Zundfolge drastically if we become a CCA chapter. We have always felt that this magazine has been the one benefit of the club that ties all the members together. As you can see from the above figures, we found that the economies of scale resulting from printing more magazines actually had a slightly positive impact. We are pleased that we would be in a position to continue the magazine in its current format if we were to become a CCA chapter.
Before moving on, there is one more financial consideration related to becoming a CCA chapter. CCA dues payments go directly to the CCA National Office. The National Office then sends the chapter one monthly dues check for 1/12th of $13.50 ($1.13) for each member. For the first month we would get $1.13 for only those members who renewed in that month. It would take a full year before our income was up to its full expected level. We have done a Cash Flow Analysis which shows that we would be able to deal with this temporary income reduction in the first year. That coupled with the CCA loan program (see below) should enable the us to get by financially. Additionally, understand that there is also a provision for CCA chapters to charge Local Dues.
As mentioned above, CCA has a Chapter Loan Program. Basically, CCA would provide a chapter with "seed money" to finance events. These interest-free loans must be paid back within sixty days after the respective events.
More on Publications
Membership in CCA includes a subscription to CCA's national monthly magazine, the Roundel. If we became a CCA chapter, members would get the Roundel plus the Zundfolge.
Insurance
While we awaiting confirmation on some points, we understand our insurance situation would improve if we joined CCA. We understand that the coverage we would get from CCA would be identical to what we now have. However, our limits would increase and our cost would be considerably less. In buying insurance, size does matter. Based on our current schedule of track events, our coverage costs $5,470. Under the CCA program, it would cost $2,170. We understand that CCA has a rebate program that could return up to 50% of that figure if certain conditions are met. Again, as this is being written, we are awaiting answers from CCA to our insurance questions, so the above could change a little.
Administrative Changes
The administrative functions of the club would change if we were to become a CCA chapter. This, of course would only apply to those people who administrate. If we became a CCA chapter, renewals would be handled by the National Office and the Membership Database would be kept there. So, the duties of our current Membership Chairman would, in theory, be reduced. In reality, that person would have more time to devote to recruiting new members. Also, our Roster Chairman's duties would be eliminated with respect to renewals. Currently, we have our own membership Database which we would continue to maintain. On the flip side, CCA would require certain financial and other reports to be made on a periodic basis.
Track Events - Drivers Schools/Lapping Days
We at ACA feel that our Drivers' Schools are second to none both in terms of instruction and safety. We have developed our own set of rules, regulations and procedures drawing heavily on other organizations. The CCA Operations Manual has an extensive array of both requirements and recommendations. There would be some changes in what participants (both students and Instructors) can do. Some of them are minor and others more significant.
Before going into the requirements that affect students, it needs to be said that the manual does have a provision that allows a chapter to propose procedures not in accordance with the manual. Variation from the manual, however, is subject to CCA Board approval.
The requirements directly affecting participants include:
1. CCA - Requires that helmets comply with either the current Snell 95 rating or the previous Snell 90 rating. There is a one-year grace period so one year after Snell 00 is adopted, Snell 90's would no longer be acceptable.
ACA - Our current requirement is that helmets be Snell 85 rated or newer, although we would like to see us move to 90 or newer.
2. CCA - Students may not carry passengers other than instructors. In no case can a passenger be under the age of 16. Instructors are allowed to carry passengers.
ACA - To promote motor sports as a family venture we allow students to carry passengers when they have reached a Level 2 in our Licensing System.
3. CCA - Convertibles must have Roll Bars and either 5 or 6 Point Harnesses. The Chapter may accept Factory Roll Over Protection as compliance with the Roll Bar requirement.
ACA - We allow convertibles with Roll Bars or Factory Roll Over Protection and accept 3 Point Belts.
4. CCA - The CCA Manual requires that cars be teched by a "qualified entity" (eg. dealer, authorized service center, mechanic).
ACA - We do our own teching of cars either at the track or at Teching Sessions a few days prior to each event. We would be hopeful that we could arrange free technical inspections with a number of dealers and independents. If not, inspections would be an added cost and, in any event, could pose some additional inconvenience compared to how they are now handled. Ultimately we instruct students that the responsibility lies with them that the vehicle is in reasonable shape for the event.
5. CCA - CCA requires that both the driver's window and passenger's window (even if there is no passenger) be completely open.
ACA - We require that the Drivers window be completely closed or completely open. Risks are discussed and recommendations made. Northwest weather can sometimes play a role in these decisions as well.
In addition to the above, there would be additional requirements imposed by CCA on the Track Committee which include creating a curriculum for required classroom instruction, reports to CCA National in the event of accidents, requirements as respects run groups, and requirements with respect to corner workers. Most of these can be currently accommodated but some could create extra work for the Track Committee members.
In summary, for better or worse, if we become a CCA chapter, track events would change. These changes would impact some participants more than others. The real impact of several of these changes would not be known if/until they are implemented and experienced. There would be "adjustment" pains.
Track Events - Club Racing
ACA has created a curriculum and has been accredited as a valid program as an introduction to racing, and accepted by the regional racing authority, ICSCC (International Club of Sports Car Clubs). There is not the opportunity to "sponsor" a BMW club race; however there are enough cars running locally to create our own "grid" and potentially sponsor or co-sponsor an ICSCC event.
If we became a CCA chapter we would have the opportunity to host a Club Race as part of the CCA Club Racing Program.
Car Buying Program
Periodically, BMW North America offers a special rebate program to CCA members. Our understanding is that the amount of rebate currently ranges from $500 to $1,000 depending on the model. To ensure that people don't join CCA just to get the rebate, BMW North America has required that one must have been a member for at least one year before becoming eligible.
National Events
As a CCA member, one would be able to attend National CCA events such as Oktoberfest.
CCA National Marketing Efforts
BMW North America and CCA have some joint marketing deals. CCA membership information is provided to dealers. Further, CCA advertises in BMW Magazine. The M Driver newsletter lists CCA events, especially Club Racing.. And some of BMW North America's sales and marketing materials promote the CCA and Drivers Schools. So, BMW North America is promoting membership in CCA and we should benefit in membership if we were to join CCA.
Club Discount List
Our members are provided discounts through some of our Zundfolge advertisers and through other local businesses. We expect that those businesses who now offer us discounts would continue to do so if we became a CCA chapter. Additionally, local chapter members would be able to receive discounts from national advertisers who offer discounts to all CCA members.
Conclusion
As you can see, this is a complex issue. There are a number of items to be considered in the larger context of whether to remain independent or become a chapter of CCA. And apart from the above, there are philosophical leanings and emotions.
The ACA/CCA Subcommittee of the Board has tried to present this information in a balanced and unbiased way in order to help members with this important decision. We look forward to questions and concerns from all members.
--BMW ACA/CCA Subcommittee
BMW ACA, Puget Sound Region, Board of Directors
Steve Niver, Lucetta Lightfoot, Greg Mierz, Roger Wales
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