Minutes - June 28, 2013

205 Pages·2012·5.45 MB·English

2013CFAANNUAL MEETING
Friday,June28,2013
(33) CALL MEETINGTO ORDER.PresidentJerold Hamzacalledthemeetingtoorder
at 9:00a.m.
Hamza:Goodmorningeverybody.<goodmorning.Hamza:Goodmorning,fellow
shareholders. Iwouldliketotakeaminutetoremindyoutocheckyourelectronicdevices and
makesurethat they’resilent beforeweget going,so that wecanhavethepropercommunication
withtheoutsideworld,becausethey’realways dyingtoknowwhat wedohere,but that they
don’t interrupt what wedohere.Iwouldjust liketoremindpeopleofacouplethings beforewe
get started.Weall arepassionateabout ourhobby,but Ialways liketoremindpeoplethat
everybodyherehas thesamerights totheiropinions andtheiremotions, andthat yourrights end
wherethenext person’s rights begin,andyouhavetobekindandpolitetothenext person. Some
ofthethings we’regoingtodiscuss todaymaybringinsomeemotionality.Just remember,
kindness is theorderoftheday.
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(34) WELCOME FROMHOST REGION.
Hamza:Iwouldliketoturnoverthemicrophonetoourgracious host ofthis year’s
Annual,andthat is Region2’s Regional Director,GingerMeeker.
Meeker:Thankyou,Jerry.Goodmorning.<goodmorning>Iwouldliketowelcomeyou
tothe107th celebrationfortheCFAAnnual.Iam GingerMeeker,theRegional Directorof
Region2,andIwouldreallyliketowelcomeyoutothePacificNorthwest part ofourregion.We
havehadlovelyweatherforyou–afterthefirst dayIgot here,andIhopeyou’reenjoyingsome
ofthesights andsounds,andparticularlythemicrobreweries that aredottedaroundtheareafor
yourconvenience.It seems likeonlyyesterdaythat wehostedtheAnnual banquet andnational
awards inReno.Howmanyofyouwereat that meeting.MontePhillips:Imadetwogrand.
Meeker:Hemadetwogrand.Congratulations, Monte.Hamza:Didyouspendit all yet,Monte?
Meeker:From what Iseebythehands, wehaveaverystrongrepeat coreofsupporters forCFA.
Wehaveacoregroupverydedicatedtoourmissionandourfunction.At this time,weneedto
focus oncontinuingtogrowourorganization,andfindnewandexcitingways toincrease
memberclubs, showproduction,newbreeders andexhibitors andspectators toourevents. While
weareadiversegroup,ourstrengthis basedonourongoingandundyingloveforourcats. I
knowwe’ll succeedinsolvinganyproblems presentedtous, andovercominganyobstacles
encounteredinthis process.Igot wordthis weekthat BettyDenny,age94,has officiallyleft
CFA.Iwantedthegrouptobeabletorecognizeher.Sheis aretiredCFAallbreedjudge.A
couplemonths ago,shemadeaverydifficult decisiontogobacktoFort Wayne,Indiana,tobe
withherfamily.Theyhavepurchasedheracondonearherfamilyso shecanliveout heryears
surroundedbychildren,grandchildrenandgreat-grandchildren.Inlookingat Betty,Idon’t know
that all ofus canachievewhat shedid,but Ithinkweneedtorecognizehernearly65years inthe
cat fancy.[applause] IpromisedIwouldlet herknowiftherewereanyboo’s. This event was
shapedandplannedinjoint collaborationbetweentheRegional Annual Committee,chairedby
Pam Moser.Pam,whereareyou? [applause] Pam has doneanawesomejob.Theothers involved
wereCentral OfficeProject ManagerJodell Raymond.[applause] AndPat Zollman,ourHelms
Briscoerepresentative.Pat is also backat thebacktable.[applause] Iwouldliketothankeach
andeveryoneofyouwhohaveworkedinanycapacitytomakethis event possible.Ihopeyouall
enjoyyourstayinRegion2.Iknowsomeofyouhavecomeearlytoexploreourregion,and
others will bestayingafterthemeetingandbanquet tosightsee.ThepeopleofRegion2welcome
youandthankyouagainforcomingtoouramazingpart oftheUnitedStates. Pam? Pam would
liketosayafewwords ofwelcome,also. Ialso want totakeamoment tomentionthecrewthat
didthedelegatecheck-in.Was that awesomeorwhat? [applause] Twelveofyouwhoare
unknowntomecameandthankedmefortheseamless andeasydelegatecheck-in.Afterstanding
inlonglines, that’s onereason torunfortheboard.YourAnnual Chair,Pam Moser.
Moser:Wehaveaspecial welcomeplannedforthedelegates this morningthat is both
relevant andappropriatefortheNorthwest Regionhostingtheannual this year.Native
Americans arealargecultural influenceinthePacificNorthwest.And,althoughgeographically
set apart from themainland,Hawaiians considerthemselves part oftheNativeAmerican
community.And,NativeAmericans onthemainlandconsiderHawaiians as their“brothers and
sisters across thesea.”HeretowelcomeyouwithAlohatothePacificNorthwest andthe2013
Annual is HoneyJustman,from Hawaii performingthetraditional dance–thehula.
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(35) PRESIDENT’S WELCOME ANDMESSAGE.PresidentJerold Hamzagavethe
followingStateoftheOrganizationaddress.
GoodMorning,
That was prettygood,hu? [applause] Idon’t knowhowI’m supposedtofollowthat,but
I’ll goon.Iwouldliketowelcomeall ofyoutothe2013Annual inVancouver,Washington.Just
likeeveryyear,ourannual shareholders’meetings andawardweekends encompass a
tremendous amount ofwork.IwouldliketothankRegion2fortheirhospitalityandIwould
especiallyliketothankRegional Director,GingerMeeker,Annual Chair,Pam Moserandthe
entireAnnual Committeefortheirhardwork.[applause]
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Duringthis last year,CFAcontinuedtothriveandgrow.Ourorganizationis facilitatedby
hardworkfrom boththeCentral Officestaff,theCFABoardandits committees, andwehave
madegreat strides. Inthis year,Iam proudtoannouncethat CFAhadandapprovedabudget in
placebeforethefiscal yearstarted.[applause] This is thefirst timethat havingabudget inplace
beforethefiscal yearstartedintherecordedhistoryofourorganization.This is averysignificant
step inassuringthat CFAremains afiscallyresponsibleentity.
Youmayhavenoticedthat overtheyears Ihavealways addressedthis bodyas
shareholders. Insettinguptheprocess intheconstitutionofCFA,thefounders ofthis
organizationcreatedownershipwhichwas tobesharedequallybyourclubs. Eachclubis tohave
oneshareintheownershipandcomingtotheseannual meetings representingtheclub’s one
share.
As representatives ofthoseshares, theclubs andbyextensiontheirdelegates, haveareal
andimportant obligationtoCFA.As shareholders, it is incumbent uponyoutobeprepared,
educatedandknowledgeableabout thebusiness issues that faceourorganization.Tounderstand
that theveryexistenceofthis organizationrelies uponyourwillingness tolearnandunderstand
theissues wefaceat ourmeetings so that youcanmakeinformeddecisions that will guide
CFA’s futureinanintelligent andwisedirection.Wemust besurethat wearepreparedfor
success andwecannot baseourdecisions onemotionorweareinclinedtomakebaddecisions.
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Part ofbeingpreparedis indeedgettingtheright information.That shouldbeaparamount
dutyofthis boardandthis organization.As President,Ihavetriedtoensurethat wefollowthis
practice.Wehavemadeavailablequarterlyreports totheclubs. Youwill also noticesomething
newthis year.YouhaveanAnnual Report.This report shouldbestandardfareat everyannual.
This Annual Report –theoneyouhavethis year–is not quitewhat anannual report shouldbe.
Youhavetostart somewhereandyouneedabaselinewhichis what this Annual Report provides.
This CorporateAnnual Report gives anoverviewofCFA's performanceoverthelast year
andincludes financial informationoverthepast decade.AproperAnnual Report shouldbefar
moredetailedabout thepast year.However,without abaseline,Ifelt that just startingwithanin-
depthannual report wouldbeadisservice.It is myhopethat all ofyoutakethis report backand
readit so that whenwemeet this timenext yearandyouget thein-depthAnnual Report,it will
havetheappropriatemeaning.Theseis apracticethat shouldbecarriedforwardeveryyear–a
statisticallyaccuratebudget inplacebeforethefiscal yearbegins andanannual report at every
shareholder’s meeting.Thesetwothings shouldbesupportedperfectlybythequarterlytreasury
reports andclubs so that members caninterpret all theinformationanduseit as aguidetomake
informeddecisions about thefutureoftheorganization.
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Iam also happytoreport that this yearmarks aslowandcontinuedgrowthinCFA
registrations. Afteryears ofharddecline,slowgrowthis welcome.Inmost business models slow,
sustainablegrowthis thekeytoasustainablefuture.Wemust bemindful ofwhereourgrowthis
derivedfrom.Although,wecanneverbesureofeveryreason; certainlywedoknowthat there
aresomere-occurringfactors.
Weknowthat theclubsponsorshipprogram has exposedtheCFAproduct overagreater
market base.As weexpandthis program weseegrowthinthoseareas. Wealso knowthat our
aggressiveapproachtoCFA’s growthintheInternational Divisionhas hadanimpact.Our
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willingness tostandtoughagainst aggressivecompetitors andtoopenourdoors particularlyin
Asiahas paidgreat dividends. Wemust continuetobemindful tohaveacompetitiveadvantage
overotherregistries. It is almost certainthat wewill seeconsolidationinourindustry.That goal
must remaininourmind’s eye.Wemust positionCFAtobetheremainingregistry.
This yearwewereabletogobackandrecreatethewebsite.It is onethat trulyfits the
statureofourorganization.Wehavebecomemoreandmoremediasavvywithsocial media
usingFacebook,Twitter,Pinterest andourblogs. TheCFANews Bulletinhelps ourorganization
findreliableaccurateinformationthat fanciers need.TheCFAMonthlyNewsletteris sharp.I
lookforwardtoreceivingit.Ihopeyoufolks lookforwardtoreceivingit,as well.
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It is also mypleasuretoannouncethat CFAhas realizedapproximateda$225,000.00
profit forthis past fiscal year.[applause] Iknowmanyofyouthinkthis is alot ofmoney.Foran
individual it is. Forabusiness thesizeofCFA,it is not.Basedonourgross annual incomeand
ourbusiness type,this profit is about whereCFAshouldbeintheblackat theendofthefiscal
year.Ifyoulookat CFA’s P&LStatement –that is business speakforaprofit andloss statement
–aprofit andloss statement is asnapshot intimethat gives youanideaofwhereyourbusiness is
at.Ifwelookat CFAat year-end,it wouldbemyopinionthat it is runningabout right.Whenyou
applyacceptedratios toourpast year,this is howyouwant it tolook.It is trulyamazingwhen
youtakeintoconsiderationthat inthis economicclimate,wehavefarless corporatesupport than
ever,thereal comfortingtruthis weareself-sufficient andit feels good.[applause]
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Iam also pleasedtoannouncethat,as ofthis moment,CFAis debt free.Ihaveinmy
hands theCFAmortgagethat was heldbythecityofAlliance,Ohio.Kim Everett,whereare
you? Wouldyoucomeuphere,Kim? IpickedKim becausesheis afairlywell-established
memberofRegion2,andIwouldlikehertohelpmewithsomething.This is ashredder.Inthe
goodolddays whenamortgagewas paidoff,weusedtohaveamortgageburning,but whenI
mentionedtothehotel about lighterfluidandametal trash can,theywereless thanenthused
about theidea,so toreplacethat inhonorofbeingdebt freeandnot burningthemortgage,but
shreddingthemortgage,Kim,Iwouldliketoask youtodothehonorofshreddingtheCFA
mortgage.Everett-Hirsch:Wedidn’t evenhaveshredders whenIstarted.Is that on? Hamza:
Yeah,youjust stickit inthehole.Everett-Hirsch:Dirtyoldman.OK,herewego.It’s supposed
togo.Oh,wait aminute,it’s full.Hamza:It’s full.Theygaveus afull shredder.Now,yousee
whyIlikefire? [shredderworks –applause] Fireis so muchmorereliablethanelectricity.But
anyway,wedon’t oweanybodyanything.That’s agreat feeling.
This means weownthebuildingandits contents, freeandclear.Wehavesome
contractual obligations but theyareusual toourbusiness andnot significant.Soherewesit debt
freewith$1.4milliondollars inthebank.Sounds likealot.Again,it wouldbegreat foryou
individuallyas aperson, but forabusiness likeCFA,it is just OK.Ourrecent past has shownus
this amount canbefleeting.Wearepresentedwithanopportunitytosecureourfuture.The
challengelies inhowtosafeguardthemoney.Howdoweuseit tocreatepassiveandneeded
incomeforCFAwhileat thesametimeensurethat it cannot everbesquandered? That indeedis
achallengeforthis boardintheupcomingyear.
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Anotherchallengeis thelargest challengeweas anorganizationhavefaced.It is our
computersystem.Whenwebeganthis process ofmodernizationthreelongyears ago,wewere
optimisticanddidn't haveacluewhat wewereupagainst.That HP 3000.Ihatethat SOB.The
deeperwegot intoit,thedeeperwegot intoit.Someonealongthewaydescribedthesystem as a
bunchofexceptions interruptedbytheoccasional rule.Bysheerpersistenceandstubbornness,
weareintheendgamewiththenewsystem.Iwill let DickKallmeyerandJames Simbrogive
youaproperandexcitingupdateduringtheirpresentation.Thesystem will bethat last major
event Iwill completeas president ofCFA.
TheonethingCFAis reallygoodforis excitinggossipandrumors. As muchas Ihateto,
Iam goingtoendsomeperfectlygoodgossip.Iwill finish out myterm as President ofCFA.
[applause] Also, Iwill not runagain.This jobforme,at least thewayIhavedoneit,has takena
considerableamount oftimeandenergy.Iplanonfinishingmylast yearwithenergyand
enthusiasm.Forthis last year,Iwant todoabunchoftownhall meetings, andget out andabout
again.Ialso want totakethetimetoaddress issues one-on-one,andtalkwithyouinawaythat
youknowIhavenothingpoliticallytogainandwhat Isayis forCFA’s best interests.
Thefutureofthis organizationstill faces manychallenges. As Isaidearlier,youarethe
shareholders andineachoneofyoulays agreat responsibility.Youmust beveryvigilant,forthe
futureofthis organizationis inyourhands. At this point,maybetoomuch.Thesenext elections
aregoingtobeveryimportant.Youmust scrutinizeyourcandidates verycarefully.Somewhere
intherecent past,beforemyterm,Iam not surewhen,theboardevolvedintorunningtheday-to-
dayoperations ofthis organization.Similarorganizations haveaCEO.Theboardgives that
person amissionstatement,thenempowers that person toruntheorganization.Thentheboard
meets andreviews as towhetherthat individual is fulfillingtheorganization’s missionstatement.
Ifyes, leavethem alone.Ifno,why? Adecisiontreeis used.Iftheydeterminethat person isn’t
meetingthemissionstatement,theydetermineifit’s theirfault andmaybelookforanotherCEO.
Ifit’s not theirfault,theyfigureout whythat person hasn’t succeededandmaybetrytogivethem
thetools tosucceed,but that isn’t thewayit happens hereinCFA.
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