BOARD OF DIRECTORS MEETING SUNDAY, DECEMBER 2, 2012 TUESDAY, DECEMBER 4, 2012 CARNEGIE HOTEL JOHNSON CITY, TENNESSEE MINUTES

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1 BOARD OF DIRECTORS MEETING SUNDAY, DECEMBER 2, 2012 TUESDAY, DECEMBER 4, 2012 CARNEGIE HOTEL JOHNSON CITY, TENNESSEE SUNDAY, DECEMBER 2, 2012 MINUTES President Danny Lewis welcomed Board members and others to Johnson City and called the meeting to order at 4:00 p.m. Secretary Jim Dove called the roll. Members Present: President/Georgia Danny Lewis 1 st Vice President/Kentucky Sherry McDavid 2 nd Vice President/Ohio Misty Casto Secretary/Georgia Jim Dove Treasurer/South Carolina Steve Pelissier Alabama Bob Culver Kentucky Mike Patrick New York Richard Zink North Carolina Rick Herndon Ohio John Hemmings Pennsylvania Eric Bridges Tennessee Susan Reid Members Absent: Maryland Mississippi Virginia West Virginia Leanne Mazer Rudy Johnson Jim Baldwin Michele Craig Others Present During All or Part of the Session: Dan Neff ARC Local Development Districts Director Cameron Whitman ARC States Washington Representative Earl Gohl ARC Federal Co-Chair Tom Hunter ARC Executive Director Joe McKinney NADO Executive Director Rachel Crickmar TVA

2 Phillip McMullan Mark DeFalco Sonja Murray TVA ARC Telecommunications Initiative Manager Connect2Compete APPROVAL OF AGENDA A proposed agenda for the DDAA Summer Board Meeting was presented. A motion to approve the agenda was made by Bob Culver and seconded by Susan Reid. The motion passed unanimously. MINUTES OF THE JULY 29 th 31 st, 2012 MEETING HELD AT BRASSTOWN VALLEY RESORT Minutes of the previous DDAA Board Meeting were distributed electronically. A motion for approval was made by Mr. Culver and seconded by Eric Bridges. The motion passed unanimously. PRESIDENT S REPORT President Lewis reported that Mr. Culver is to retire in April He expressed appreciation for his efforts on behalf of the DDAA. Mr. Culver has been employed in the public sector for 43 years, including 19 in his present position. He served two terms as DDAA President. President Lewis attended the Appalachian Regional Commission meeting in Huntsville, Alabama in October. He indicated the meeting was very informative and extremely beneficial for everyone in attendance. Bonnie Durham, ARC State Program Manager for Alabama, was recognized upon her retirement from that position. He expressed appreciation to Rachel Crickmar and Phillip McMullan of the Tennessee Valley Authority, as that agency is sponsoring the evening meal. The meal will be followed by a presentation on the ARC/TVA partnership. President Lewis asked our host, Susan Reid, to make a few comments. Ms. Reid thanked everyone for being in attendance, distributed tourism information and maps, and briefly discussed the history of the area. In addition, she discussed logistics associated with the meeting. ARC STAFF REPORT Due to a conflict in Mr. Pelissier s schedule, the agenda was rearranged to allow the staff report by Dan Neff at this time. Mr. Neff indicated States Washington Representative Cameron Whitman will be present tonight and tomorrow morning, and Federal Co-Chair Earl Gohl and Executive Director Tom Hunter will arrive tomorrow afternoon.

3 He indicated ARC has sanctioned Local Development District Administrative Grants for a six-month period. It is hoped that contracts will be forwarded to the LDDs by the third week in January. He discussed ongoing issues related to sequestration and the looming fiscal cliff. Congress is scheduled to adjourn in mid-december. If fiscal issues are not resolved, automatic cuts will take place. It is the desire of ARC administrators to keep level funding for LDDs if at all possible. Mr. Neff addressed the performance measurements to be completed by LDDs, which are to be mandatory in the future. The measurements help demonstrate the value of LDDs to parties such as the Office of Management and Budget. In addition, it helps the LDDs to inform as to accomplishments. He also indicated fiscal reports are due to ARC by the end of January; but by all means, submit them no later than the end of the first quarter. He also reported on staff changes. Greg Faulkner, who previously handled sustainability efforts, has relocated to Illinois, and Lauren Faber of the Program Operations Division is now with the Census Bureau. The staff remains at the person level, with very little turnover. This speaks to the mission and quality of programs at ARC and to Tom Hunter s leadership. Mr. Neff indicated we are facing uncertain times in many respects, and it is interesting to see how the Administration reacts regarding community and economic development programs. He and others will continue to monitor Congressional actions, and these will be reported in full at our Washington Conference to be held March 10 th - 12 th, After a break, a reception and dinner was held. Following dinner, Ms. Crickmar and Mr. McMullan made a presentation on the ARC/TVA Partnership. The presentation was well received and resulted in several questions and comments. MONDAY, DECEMBER 3, 2012 Following breakfast, the DDAA business meeting resumed at 8:30 a.m. STATES WASHINGTON OFFICE UPDATE Cameron Whitman, States Washington Representative, provided an update to the Board. Regarding the Appalachian Development Highway System (ADHS), she stated that Mr. Gohl has requested Governors to designate a high level person to work on efforts associated with MAP 21. A webinar regarding this will be held in January, and plans must be submitted to Congress in June. There is no requirement that ADHS funds must be spent on the ADHS. Regarding fiscal cliff issues, Ms. Whitman encouraged Board members and others to speak with congressional representatives. She briefly discussed the FY2014 Budget, and it is her feeling the President will base his budget recommendation on FY2013 numbers with an additional 5% cut. Finally, regarding ARC reauthorization, Ms. Whitman indicated she would be very surprised if it happens with all that is before Congress at this time.

4 TREASURER S REPORT Treasurer Pelissier addressed the Board and presented two handouts. The first (Attachment A) is the FY2013 DDAA Annual Budget. He invited attention to the Receivables as shown on Page 2. It is believed that the $45,000 shown as receivables is incorrect and should have included an additional $36,484. He is still reviewing this matter. It should be noted; however, that the $169, figure shown as Net Available is correct. Other highlights of the Budget are: the DDAA has slightly more than $168,023 in the bank as of today, and all LDD dues for FY2012 have been paid. He also discussed past years annual budgets and balance sheets from FY2005 forward. Mr. Pelissier indicated that we have $62,454 available in training funds, of which we must spend $17,454 by April. To assist with training efforts, Mr. Pelissier moved to amend the Budget by moving $25,000 from unallocated to training. The motion was seconded by Mr. Culver and passed unanimously. The FY2012 Conference Budget (Attachment B) was also discussed. Mr. Pelissier indicated that revenues exceeded expenses by approximately $6,600. In addition, revenues and expenditures for annual conferences from 2002 through 2011 were also presented. It was further indicated that discussions with Vicki Glass of NADO would be taking place regarding the 2013 Conference. There was a motion by Mr. Bridges and a second by Ms. Reid to accept the financial report (Attachment C) as submitted. The motion was unanimously approved. Further, there was a motion by Mr. Dove and a second by Rick Herndon to commend Mr. Pelissier for efforts since assuming the position of Treasurer. In other business, President Lewis briefly mentioned the need to change the signatory from Treasurer to President on proposed contracts with NADO. There was a motion by Ms. McDavid and a second by Mr. Hemmings to request Mr. McKinney to facilitate that change. The motion passed unanimously DDAA CONFERENCE BRIEFING Ms. McDavid gave an overview of ongoing efforts related to the 2013 DDAA Conference. The theme is Proud Heritage, Bright Tomorrow. The Sunday agenda will vary little. She is still working on the evening entertainment, and encourages attendance at the Annual Meeting. Monday morning will begin with breakfast, followed by a General Session at 9:00 a.m. Officials from the Obama Administration will possibly be invited. Concurrent Sessions will be offered throughout the day, and the Awards Luncheon will be a highlight. Networking with NADO attendees will begin on Monday afternoon. A breakfast will be offered Tuesday morning and include briefings by Ms. Whitman and Guy Land. Following breakfast, the Joint Session with NADO begins. AWARDS UPDATE The Whisman, Humanitarian, and Congressional Awards were discussed. Ms. Reid advised that nominations for the Whisman Award are already being received.

5 Regarding the Humanitarian Award, the focus of this award has evolved from high profile recipients to persons in the region that have done something special. The need to obtain quality nominations was discussed. Finally, there was discussion regarding the Congressional Award. It is sometimes difficult to coordinate presentation with the schedule of the recipient. It was also mentioned that perhaps the award does not need to be presented annually. It was further discussed that if a worthy recipient is not identified, it might be appropriate to ask an ARC supporter such as Representative Hal Rogers to address the Conference. TRAINING COMMITTEE REPORT Misty Casto provided an in-depth presentation on the Training Program (Attachment D), which includes amounts expended and those budgeted. There was a motion by Mr. Bridges and a second by Mr. Patrick to approve the expenditure for the website move (Buckeye Hills will seek reimbursement). The motion passed unanimously. The Professional Development Conference estimated costs total $30,821.75, with $25,000 of that amount being derived from the DDAA Budget. A motion to approve the estimated costs was made by Mr. Culver and seconded by Ms. McDavid. The motion passed unanimously. Regarding the Economic Development Service Training Conference, Ms. Casto moved to sponsor up to 20 LDD participants, including three nights lodging. The motion was seconded by Mr. Hemmings, and passed unanimously. Relative to the GIS Users Group Meeting, Ms. Casto sought approval to execute a hotel contract. Such motion was made by Ms. Reid, seconded by Mr. Culver, and passed unanimously. The Rural Transportation Peer Learning Conference was also discussed, along with the Employment Law and Practices Training Seminar. The estimated budget for the latter totals $15,000, and a motion to approve this amount was made by Mr. Hemmings and seconded by Mr. Culver. The motion passed unanimously. CONNECT2COMPETE PRESENTATION Mark DeFalco and Sonja Murray made this presentation. Connect2Compete is a $4 billion non-cash public/private/non-profit partnership. The initiative focuses on broadband and how it resonates with economic development efforts and elected officials. Currently, 62 million Americans do not have Internet access. It is up to us to help create demand and to market the relevancy of the Internet. Forty-six percent of the poorest households do not have Internet, and minorities have lower rates of Internet access. This collaborative is committed to harnessing technology and ensuring that all Americans have access to technology. There are pilot projects in 23 states. A national ad campaign will soon be launched. It is important to get buy-in from the states and to identify schools with which to work. Ms. Murray will forward a PowerPoint presentation to each of us. GLOBAL APPALACHIA UPDATE Mr. Hemmings was unable to attend the ETAC Group meeting in November. Mr. Bridges is our liaison to Network Appalachia. He indicated that work of Network Appalachia is based on a report previously presented by Scott Hercik. Ongoing discussion concerns how proactive ARC should be in acting on some of those

6 recommendations. We need to take full advantage of global trade opportunities, including rail, inland ports, etc. He indicated that the group is made aware of activities and opportunities affecting the region. Amy Kessler of his staff represented Mr. Bridges at the last meeting. Mr. Hemmings advised that he was contacted regarding the possible appointment of an alternate to ETAC. The Board determined that an alternate is not needed at this time. Following these reports, lunch was served at the hotel. Later in the afternoon, the Board visited Ms. Reid s office, toured the facilities, and met staff. Following that, a reception and dinner was held at the Farmhouse Gallery and Gardens at Unicoi, Tennessee. TUESDAY, DECEMBER 4, 2012 Following breakfast, the DDAA business meeting resumed. BRIEFING FROM THE FEDERAL CO-CHAIR Federal Co-Chair Earl Gohl expressed appreciation to the Board for ongoing efforts. With the re-election of President Obama, he expects to remain in his current position for at least the next four years. He alluded to the challenges that lie ahead, especially in regard to the Budget. Mr. Gohl indicated, ARC will be fine. We were never zeroed out in the President s Budget, and we are supported by the Chairman of the House Appropriations Committee. He touched on issues such as Social Security, Medicare and Medicaid, and how changes would result in lost income to Appalachians. Mr. Gohl mentioned that he and staff are focusing on systemic changes. As an example, they have been working during the last year on capital credit issues, using the Appalachian brand. He has visited Wall Street, bylaws have been incorporated, and this, hopefully, will provide additional capital and create additional jobs. A study will be completed on the availability of capital in Appalachia as compared to the rest of the country, and it is hoped a development bank in Appalachia will be created. Mr. Gohl closed by saying that he is interested in our ideas and what we are doing together. EXECUTIVE DIRECTOR S REPORT ARC Executive Director Tom Hunter provided a report to the Board. He began by saying, efforts in Washington could break a number of ways. He mentioned also the support ARC has received from House Appropriations Chair Hal Rogers and newly appointed Transportation Chair Bill Shuster, along with friendly administrators. Mr. Hunter noted that ARC would observe its 50 th Anniversary in He stressed the importance of ARC s partnership with NADO and congratulated Mr. McKinney on his appointment. Mr. Hunter closed by saying we must stay together and be strong. NADO REPORT NADO Executive Director Joe McKinney began his presentation by expressing appreciation for the invitation to attend this meeting. He assumed his current position in October and has already visited several states. Regarding staffing, efforts are underway to fill the Legislative Director s position, formerly held by Deborah Cox. Mr.

7 McKinney will soon choose from two finalists for that position. In the interim, he is leaning heavily on NADO Consultants Jeff Gleason and Kathy Ruffalo. He recently met with the new OMB Examiner for EDA and ARC. Regarding budget matters, he is somewhat optimistic. Congressional staff continues to work behind the scenes, and it is hoped that something is done to avert the looming fiscal crisis. He closed by promoting the December 11 th NADO Webinar on fiscal issues. President Lewis closed the meeting by again thanking Ms. Reid for her hospitality, expressing appreciation to attendees, and announcing the next DDAA Board meeting will be held in March in conjunction with the Washington Conference. There being no further business, the meeting was adjourned.

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