GOVERNING MEMBERSHIP MEETING Thursday, October 10, 2013 9:00 AM – 12:00 PM

GOVERNING MEMBERSHIP

MEETING

Thursday, October 10, 2013

9:00 AM – 12:00 PM

JEFFREY COLEMANChairman, IAM Executive Committee

President, Coleman World Group

Meeting Agenda• Call to Order• Roll Call of the

Governing Membership• Review and Approval of

Minutes• Chairman’s Report• Reports of Standing

Committees• Governing Member

Elections• Government & Military

Relations

• IAM Programs Update• President’s Report• Proposed IAM By-Laws

Revisions/Amendments• General Counsel

Emeritus’ Report• Unfinished or Old

Business• New Business &

Discussion Topics• Announcement of

Election Results• Closing

Governing Membership Meeting | 51st

Annual Meeting | Vancouver, BC, Canada

ROLL CALL

DISTRIBUTION OF

ELECTION BALLOTS

REVIEW AND APPROVAL

OF MINUTES

CHAIRMAN’S REPORT

Presented by:

Jeffery Coleman

REPORTS OF

STANDING COMMITTEES

ACCESSORIAL SERVICES

Presented by:

Tim Helenthal

CARRIER RELATIONS

Presented by:

Mike Richardson

CONGRESSIONAL /

GOVERNMENT AFFAIRS

Presented by:

Peg Wilken

CLAIMS

Presented by:

Rick Curry

TECHNOLOGY AND

COMMUNICATIONS

Presented by:

Brandon Day

COMMERCIAL AFFAIRS

Presented by:

Doug Finke

CORE MEMBERS

REPRESENTATIVE

Presented by:

Jackie Agner

GOVERNING MEMBER

ELECTIONS

Slate of Candidates

Chair:Jeffery ColemanColeman World Group

Vice Chair:Margaret “Peg” WilkenStevens Forwarders Inc.

Member At Large:Richard W. CurryGateways International Inc.

Brandon DayDaycos

Tim HelenthalNational Van Lines, Inc

Michael RichardsonSenate Forwarding, Inc

Governing Membership Meeting | 51st


GOVERNMENT AND MILITARY

RELATIONS

CHARLES WHITEDirector, Government & Military Relations

International Association of Movers

Discussion Topics• DOD Budget Issues/Government Shutdown• TSP Qualification Rules

• What did SDDC do next?• Open Season - Implementation Timeline• Requalification/“Right-Sizing”

• DPS Issues• 2013 Peak Season• Regionalization• Agent Issues:

• DP3 – Phase III, NTS Electronic Billing & Payment, New Agent Advisory Committee

DOD Budget Issues• DOD - $500 Billion in cuts over the next 10 years,

doubled when Sequestration hit• PCS moves exempt from sequestration for

uniformed personnel...but not civilians• Civilian Furloughs – July 8 – Mid Aug. Original

estimate 22 days, then 11 eventually only 6.• DOD - cost cutting in a number of ways:

• Troop/personnel reductions of 100,000+ • Longer dwells at a station• Another round of BRAC? “Joint Basing”• Pivot to the Pacific

- Guam, Korea, Australia, Philippines and Hawaii

DOD Budget Issues, cont.• Currently DOD averages between 500,000 – 550,000

moves per year…(approx 170,000 May 15 – Aug 31) Includes Domestic HHG, International HHG, UAB (Air), NTS (long term storage), DPM, Local Moves

• May see a short term rise in shipment volumes over next two years, but a significant drop is imminent

• “Leaner” & more Mobile force will eventually equate to a smaller number of HHG moves

• FED GOVERNMENT SHUTDOWN• SDDC remains open….for now• JPPSOs/PPSOs – civilian personnel furloughed …

invoice approvals, preapprovals problematic• Civilian moves will may be affected

Qualifications Rules – Pam 55-4• First PAM 55-4 Draft released in early December,

2012• Comment Period closed January 18, 2013• Changes influenced by IAM / AMSA / Industry:

• Audited vs. Reviewed Financials• New entrants – Experience… 5 years vs. 3 years• Key Personnel – “employee responsible for rates”• Quick Ratio 1.2:1 changed from 1:1• Cargo Liability Aggregate - $150,000 to $500,000 • Performance Bonds increased 500%

• International $100,000 to $500,000....$150,000

• Domestic $50,000 to $250,000

Qualifications Rules – Pam 55-4, cont.• “Affiliations” – new term for CFAC...but much more

encompassing• Old CFAC rules said…“may but do not always result

in CFAC.” New rules no such caveat• New rule….

• Family relationships• Owning another company• Owning stock in another company• Making loans to another company• Managing another company

• Any of these relationships CANNOT file rates in the same channel and code of service

What did SDDC do next?

• “New”... set of draft rules released on March 29, 2013 and a few more edits on April 12

• What’s New• “Outsourcing TSP Responsibilities,” i.e., Move

Management – “Outsourcing of all TSP operations is not allowed in DP3.”

• CFAC….It’s back!• Require “Proof” of experience for approval in a

Market.• What was this all about? Open Season & Eventual

Reduction of the Number of TSPs

OPEN SEASON• Officially began July 19 and closed August 2 for NEW

applicants – must submit pre-screening questionnaire and other required documentation (Pam 55-4)

• Current TSPs have until October 31 to apply for expansion of Scope.

• New applicants must pass the initial paperwork review and then go through a face to face interview at SDDC. Those interviews ended September 6.

• Approx 50 new approved TSPs – mostly Domestic• If an applicant was: Van line agent, DOD hauler, SIT

or NTS service provider, Ever “touched” a DOD shipment in any way…..

• NO INTERVIEW!!!!!! NO APPROVAL!!!!!!

Requalification/“Right-Sizing”• SDDC plans are to ….. Take a two-phased approach

• Phase I – Open Season for 2014• Phase II – Re-qualify ALL TSP for 2015/16 • HOW …… “RIGHT-SIZING”

• What the heck is “RIGHT-SIZING”? International?• Reduce the number of “turns at the wheel”/SCACs

based on a “groups” volume of shipments moved ….over what time period?

• Does hauling count or only booked shipments? • What about “managed” Carriers?• They have tried….Domestic CFAC, Affiliations &

Scoping…will this work? To be discussed Oct 29 - PPF

DPS Issues• DPS Release 1.6 on Friday August 30 – since that

release we have seen nothing but problems• Invoicing issues – rating, transmission & PPSOs• Agent User Role disappears• New Country Codes• DPS instability/not loading completely

• What was SUPPOSED to be in the Release?• Domestic Peak and Non-Peak Rate Filing……rate

baseline changes in 2014. No Peak Season 10% bump

• OTO moves to DPS – Why? Many moves to State• New DPS Contract award was supposed to occur

October 1….now on hold through the Shutdown ………….what does a new contract mean?

2013 Peak Season• 2013 - Least number of issues since DP3

implemented.• Why?

• TSPs and Agents understand how to work the system.

• Better Blackout granularity for domestic (not so for International) and Shipment Refusals

• Possible - Refusals may be year round in 2014!• 10% less traffic than in 2012 but about the same

as 2011.• DPS stability for most of the Peak – added no

new functionality….until August 30 (new contract looming)

• Code 2 flat – only 2-3% of Domestic Volume• Short Fuse criteria change….good for who?

RegionalizationOSD initiative originally to be completed by the end of 2016

• But Air Force in “STRATEGIC PAUSE” - Now FULLY completed end of 2018?

• 7 CONUS JPPSOs – • JPPSO-MA (VA),• JPPSO-NE (MA) • JPPSO-SC (TX) • JPPSO-NW (WA) • JPPSO-NC (CO) • JPPSO-SE (FL) • JPPSO-SW (CA)

• OCONUS – Japan (Yokosuka), Korea (Yongsan), Europe (WKAS), JPPSO-HI and a few other smaller more isolated booking offices.

• Navy mostly finished with their part• Army….long way to go….only Presidio in 2014.

Agent Issues• DP3 Phase III

• Business Rules posted – DPM rules still in flux• Programming for DPS begins with new contract• Don’t expect implementation for 2-3 years

• NTS electronic Billing & Payment• Fully implemented and working fairly well – Oct payments

delayed due to shutdown• Still working the backlog of old paper invoices• DPM electronic payment process may be introduced in 2014

• Agent Advisory Committee (AAC)• Started in late spring 2013• Started to better understand and promote agent issues• 10 committee members – falls under the auspices of the

Government & Congressional Affairs Committee• Starting with US DOD agent issue and will eventually grow

to include OCONUS DOD and commercial agent issues.

Charles “Chuck” WhiteDirector, Government & Military RelationsInternational Association of Movers (IAM)

Alexandria, VA

[email protected] Chuck on Twitter:Tweet @IAMmilitaryguy

[email protected]

703-317-9950

www.IAMovers.org

IAM PROGRAMS UPDATE

BRIAN LIMPEROPULOSPrograms Manager


IAM ProgramsIAM Governing Members Meeting

How IAM serves its Governing Membership:• Receivable Protection Program (RPP)• Invoice Dispute Resolution Process• IAM Code of Ethics• Global Accreditation of the Industry-Led Inventory Standard• IAM Shipper Guides

Customs and Government Updates• U.S. Customs Intensive Exams• Distribution of your client’s Personally Identifying Information• Federal Maritime Commission (FMC)• Federal Motor Carrier Safety Administration (FMCSA)

IAM Receivable Protection Program (RPP)

How does the RPP work?

• IAM insures the commercial invoices of all IAM members. • If an IAM member goes out of business, a claim can be submitted for

compensation.• If all conditions are met, the claimant will receive reimbursement.• At current participation levels, IAM can pay up to $4,000 USD per claim.• If more members sign up, we can increase the amount of money that we pay

out per claim.

Have You Heard of the Invoice Dispute Resolution Process?

IAM Governing Members’ Meeting

Invoice Dispute Resolution Process


[email protected]

Use IAM to Recover Money!

• IAM will intervene on outstanding invoice(s) whether they are Commercial or Military.

• This includes US Department of Defense work.

• Members who participate in the RPP can request IAM intervention on any outstanding invoices provided they are at least 90 days old.

• If a company does not pay, they are placed on the IAM Alleged Debtor List.

• Alleged Debtor List is only available to RPP Participating Companies and is distributed monthly.

IAM Receivable Protection Program (RPP)

Future Plans

• 152 Members Currently Enrolled – Unsustainable at that level• Inclusion of RPP as an IAM Membership Benefit

• Bring all IAM Members into the Program• More Members = Better and More Expansive Benefits!

• Potential inclusion of invoices stemming from U.S. Department of Defense (DOD) Business?

• More robust Invoice Dispute Resolution Process• Alleged Debtor List will become more valuable with more Members.• Bigger Claims Payouts with more Members!


IAM Code of Ethics


[email protected]

Ethics Council Established on January 1, 2012

• Ethics Council composed of IAM members from diverse regions and industry sectors to provide balance.

• Council adjudicated its first complaint this year.

• Important precedent set by Council on future complaints.

• Complaint will be used to educate members on ethical behavior.

• Provides IAM Members with an avenue for recourse if another member had not acted ethically

Industry-led Inventory Standards

Exactly What is in the Standards?• First part codifies all data elements of a household goods shipment

• Second part provides the following: 1. A common format by which information is collected and transmitted

between two users. 2. An electronic link between two different digital systems

What is the Goal?• ISO Accreditation as a Global Standard

1. Establishment of ISO Working Group2. Global Standard could be attained by end of 2014

• Widespread Adoption of Standard by Industry

• Industry Response to Future Imposition on Household Goods’ Shippers by Government and Customs Authorities


IAM Shipper GuidesIAM Governing Members’ Meeting

Shipper Guides provide country-specific customs information for more than 185 countries and territories around the world:

• Documents needed for duty-free import• Specific policies for the import and export of HHGs

All of these Guides have been Updated in the last year!

Big Resource for IAM Members and Consumers

Distribution of Personally Identifying Information (PII)• Short-term solution: Standardized Web Form on IAM website.• Long-term solution: Blanket protection against this information being

distributed to Vessel Manifest Information Companies.

Intensive Exams at US Ports• IAM Ongoing Data Collection to Gauge Member Experience• Results indicate particular issues at the Port of Long Beach.• While intensive exams still remain high, all other ports are in line

with shipping volumes.

Ongoing Efforts to Address These Issues With CBP

Customs and Security IssuesIAM Governing Members’ Meeting

Federal Maritime Commission (FMC)• OTI Registration – Recommendation from Fact Finding

Federal Motor Carrier Safety Administration• MAP-21 Implementation• Protect Your Move Campaign

HHG Working Group • Industry Associations• Federal Agencies• State Agencies and Law Enforcement

Moving Fraud Summit• How to best combat rogue operators?

Regulatory IssuesIAM Governing Members’ Meeting

Through the RPP, IAM gives you recourse to recover payments owed to you.

A greater sense of security when trading with other IAM members because of the RPP, the Invoice Dispute Resolution Process, and the Code of Ethics.

The development of the Industry-Led Inventory Standards provides the industry with a response to potential adverse customs policies.

The Shipper Guides provide easily- accessed comprehensive Customs Information.

We are constantly working on your behalf to protect your businesses through our government outreach and relations.

Take Advantage of This InformationIAM Governing Members’ Meeting

PRESIDENTS REPORT

TERRY R. HEADPresident


PROPOSED IAM BY-LAW

AMENDMENTS AND/OR

REVISIONS

Proposed IAM By-Law Amendments and/or Revisions

Proposed for the consideration and approval of the Governing Members:

ITEM ONE

Subject: Evidence Considered for Membership Rejection and Expulsion

Amendment Proposer: IAM Executive Committee

Objective of Proposal: In recognition of the Association’s increased focus on upholding ethics and values for the membership, it is proposed to add additional language to the IAM By-Laws that will provide the IAM Executive Committee with greater authority to reject a membership application if the applicant has not conducted business previously in an ethical manner or expel a member if a member has breached the IAM Code of Ethics.

Core Membership Meeting | 51st


Proposed IAM By-Law Amendments and/or Revisions

Article IV, Section I (Fourth Paragraph) will be amended as follows:

(The underlined/italicized portions constitute the revisions):

“Notice of every application for Membership shall be given to each Governing, Core, and Supplier Member, who shall have thirty (30) days from date of such notice to submit evidence that the applicant is not creditworthy or has not conducted business previously in an ethical manner.”

Article IV, Section 4 (First Paragraph)“For good cause the Executive Committee may suspend or expel any member of the

Association, or take other appropriate action. Good cause includes, but is not limited to, failure to pay dues or other obligations owed to the Association, after proper notice as defined in Article V, Section 2; failure to maintain qualifications for membership as set forth in Section 1 of this Article; failure to comply with the terms and conditions of Membership; and failure to comply with any standards of business conduct which may be adopted by the Association, including the IAM Code of Ethics.”

Core Membership Meeting | 51st


GENERAL COUNSEL

EMERITUS’ REPORT

JEFFREY COLEMANChairman, IAM Executive Committee

President, Coleman World Group

UNFINISHED OR

OLD BUSINESS

NEW BUSINESS &

DISCUSSION TOPICS

ANNOUNCEMENT OF

ELECTION RESULTS

JIM WISE & BRYAN VICKERS

PACE, LLP

International Association of Movers (IAM) Annual Meeting

October 9, 2013Vancouver, BC, Canada

Jim Wise & Bryan Vickers, Pace, LLP

2013 GOVERNMENT SHUTDOWN OVERVIEW & IMPACT

TIMELINE OF EVENTS• September 20th – U.S. House sends spending bill to

the Senate, funding the government through Dec. 15th, with funding for the ACA significantly depleted.

• September 24th – Sen. Ted Cruz (R-TX) and other Republican Senators give speeches on Senate floor against Healthcare Law.

• September 30th – House and Senate volley legislation back and forth – no agreement is reached.

• October 1st – Shutdown begins at Midnight – Healthcare exchanges open at 8 am later that morning.

Government Shutdown – What’s Next? Or Likely..• Last night, the President agreed to hold formal negotiations with

Republicans on a short-term deal, should they agree to fund the government and meet funding obligations (debt ceiling).

• Likely topics for discussion – 1-year delay of the individual mandate (businesses were granted this), repeal of medical device tax (est. to generate $30 billion over 10 years), removal of health care subsidies for Members of Congress and staff, tweaking of “full-time” employees under the ACA from 30 hours per week to 40.

• Speaker Boehner has rejected this idea (so far) – situation is fluid however, and may change if some concessions with ACA are agreed to.

Government Impasse – Debt Ceiling Limit

• To be clear, the approaching deadline to increase nation’s debt limit is done only to pay existing borrowing obligations – it by itself begins no new spending measures.

• October 17th is deadline – Treasury Secy Jacob Lew says the U.S. will have $30 billion on hand at that point – unable to meet its roughly $60 billion in daily obligations.

• At stake – Administration officials and most financial analysts forecast world markets dropping sharply, significant loss in value of the USD, and sharp increases for U.S. borrowing costs.

Government Impasse – Debt Ceiling Limit

• Many Republican legislators insist that the October 17th deadline not as final as being made out by the Administration.

• They believe with tax revenues coming in, key obligations will be met, and payments made in order of priority.

• This contrasting view on the breach of the debt ceiling limit adds complications to the negotiations and talks.

Stock Market Activity & Financial Impact• Stock market took the government shutdown on October 1st in

stride.

• This has not been the case as the US pushes closer to breaching the debt ceiling limit – Dow Jones down 500 points over the past two weeks.

• Since Sept. 2012, the Federal Reserve has been buying $85 billion a month in bonds in an effort to keep longer term interest rates down - Federal Vice Chair Janet Yellen to be nominated to succeed Bernake – supporter of efforts to keep interest rates low.

• While this program and buying power will be adjusted downward – indications are it may be tapered, rather than drastically altered.

Federal Agency Activity• On a normal day, the collective Federal Agencies will

post 150-200 rulemakings, notices of action, request for comments and various decisions in the Federal Register.

• The past week has seen the number of postings and related shrink to about 5 or 6 a day.

• Notices now being published are now only those critical and relate to safety and security measures.

• Non-critical Agency meetings cancelled (i.e. next week’s Defense Business Board meeting at Pentagon)

Federal Agency Activity - PCS• Currently, only those who have PCS orders in hand,

prior to October 1st, will be allowed to proceed with their PCS, since their move has been funded by the FY-12 budget.

• All others, should continue with the PCS process, but must wait for funding to be authenticated before they are able to complete their move.

• PCS orders coded “A” for accession and “S” for separation are authorized to continue.

Federal Maritime Commission Due to the Shutdown, the FMC is not not accepting online filings

or applications through its website for the following:

• Service contracts through SERVCON

• Ocean Transportation Intermediary (OTI) applications through the Automated OTI Application (FMC-18)

• Tariff Registration Forms (FMC-1) The Commission’s online databases will not be updated (and most inaccessible) until Agency funding has resumed.

• The Commission will not accept or act on complaints, requests for dispute resolution services, nor ombudsman services.

Questions?

GOVERNING MEMBERSHIP

MEETING

Thursday, October 10, 2013

9:00 AM – 12:00 PM

GOVERNING MEMBERSHIP MEETING Thursday, October 10, 2013 9:00 AM – 12:00 PM

Documents

Transcript of GOVERNING MEMBERSHIP MEETING Thursday, October 10, 2013 9:00 AM – 12:00 PM