AMERICAN COUNCIL OF ENGINEERING COMPANIES/MARYLAND EXECUTIVE COMMITTEE MEETING MARCH 19,2015
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1 AMERICAN COUNCIL OF ENGINEERING COMPANIES/MARYLAND EXECUTIVE COMMITTEE MEETING MARCH 19,2015 A meeting of the Executive Committee of the American Council of Engineering Companies/Maryland was called to order by D. Knight, President, at 8:05 A.M. on Thursday, March 19,2015 at the ACEC/MD Office, Baltimore, MD. IN ATTENDANCE; D. Knight, President; A. Barrett, Vice President; S. Robinson, Treasurer; J. Jannetti, Secretary; T. Frascarella, S. McCone, S. Taub, A. Straus, ACEC/MD Directors; L. Kriebel, ACEC Director; J. Moeller, ACEC Alternate Director, and J. Otradovec, Executive Director. MINUTES OF THE FEBRUARY 19 MEETING; A motion was duly moved and seconded that the minutes of the February 19,2015 meeting be approved. FINANCIAL REPORT; S. Robinson distributed copies of the Statement of Financial Condition for the Council as of February 28,2015, as follows: ASSETS: Cash checking T. Rowe Price Prime Reserve Fimd Accounts Receivable Dues Receivable Local National Affiliate Dues Receivable Joint Council Dues Receivable LIABILITIES: Accounts Payable NET WORTH: Beginning Balance 7/1/14 Total to Date $ 129, , , $ 121, , , , $ 353, $ 22, $ 236, $ 331, The Statement of Income and Expense, which is attached to the minutes, was reviewed for eight months ending February 28, S. Robinson reported that while dues payments continue to be slow, the budget is on target. Thanks to member firm sponsorships, the ACEC/MD Awards Banquet realized a small profit. The statement also reflects the contribution from ACEC/MW to help offset expenses associated with ACEC/MD's legislative efforts, contributions to JHU's Engineering Innovation program and travel reimbursements for the Fall ACEC Convention. After discussion, it was duly moved and seconded to accept the financial report as presented. 1
2 OLD BUSINESS; 1. SMART Goals D. Knight and J. Otradovec updated progress on achieving the following goals: Membership Growth Currently there has been a net increase of two of five regular members and the addition of two affiliate members as called for in the goals. Increased Legislative Support While not achieving the goal of 100 member firm representatives at the ACEC/MD Legislative Action Day, member firm attendance increased from 55 to 83. It is hoped that the goal of 1,000 member firm representatives responding to alerts can be achieved through a positive response to the three alerts that have been sent. Program Gannett Fleming's S. Gerlach has offered to assist in reaching out to potential speakers in the water/sewer arena, such as Baltimore City, Baltimore County and WSSC, who would discuss opportunities associated with the EPA consent decrees. The Executive Committee suggested that DC WASA also be considered. Also, as part of a program focused on the health care sector, S. McCone has reached out to the University of Maryland Medical Center to gauge interest in providing a speaker for a program that would be of interest to MEP firm representatives. Political Fundraising The CEP AC committee recently met to divide up member firms that have not made a pledge or contribution. Personal contacts will be made. A Minuteman logo costing $ 1.45 per piece has been located for badges. Dues Billing The plaques recognizing firms for dues payment have been assembled, and will be distributed to Executive Committee members at today's meeting. All firms represented on the Executive Committee and ACEC/MD committee chairs have achieved the goal of paying dues by the second quarter of the fiscal year (December 3 U*). 2. Liquidated Damages for MBE Compliance J. Otradovec reported that in spite of meetings over the past year with Sen. Conway, chair of the EHEA Committee, and GOMA to explain the unintentional negative consequence of the legislation on small MBE firms, the legislation was defeated in committee. Moving forward, it is hoped that with a more business friendly administration, GOMA can be neutralized and pressure can be put on the chair to reduce her opposition. 3. MES Competition J. Otradovec reported that a meeting is being scheduled with MES Director Harkins in early April. 4. Maryland Chamber Congressional Dinner (March 9*) J. Otradovec reported that the focus of the event revolved around recognizing Sen. Mikulski for her years of service. Somewhat surprisingly. Congressman Harris was given a featured speaking role at the event. 5. Job Placement J. Otradovec reported that responding to the expected influx in construction inspector candidates, the PR Chair is reviewing a process to incorporate a job board on ACEC/MD's website. 2
3 6. ACEC Convention and Legislative Summit (April 1922, 2015) L. Kriebel and J. Otradovec reported the following: Early bird registration for the conference and the hotel block expires March 20*. The Leadership Breakfast and BOD meeting will be held Sunday, April 19*. Voting items on the agenda include: a) Eliminate reference to 2015, since the goal of achieving $2 M in the Minuteman Fund was reached years ago. b) Extend the target date for membership growth called for in the strategic plan from 2015 to c) Change the employeecounting method for dues calculation so it is based on the number of man (or woman)years worked by a firm armually. Also, expand the definition of "members" to include all employees and not just principals. d) Amend the present partial national dues cap to provide for a cap of 5,000 employees. (Expressing concern that the proposed change in dues calculation would be too complicated, the ACEC/MD Executive Committee expressed support for all voting items except for c). Congressional visitations will be scheduled on Wednesday, April 22, while the legislative briefing is scheduled for Tuesday morning. Issues to be addressed include: MAP 21 and FAA reauthorization, energy, and tax and regulatory reform. NEW BUSINESS; 1. Hogan Meeting D. Knight and J. Otradovec reported on the March 10* meeting with Gov. Hogan, as follows: As expected, the governor was very supportive of ACEC/MD's business agenda, and he emphasized that after the conclusion of the General Assembly session he would be ready to move forward on business friendly initiatives. ACEC/MD expressed concern about the liquidated damages provision in contracts. Appreciating ACEC/MD's concerns, the governor offered to arrange a meeting with GOMA Secretary Rhee. MES' competition with consultants was addressed. While he does not exercise direct control over MES, the governor offered to review the situation. ACEC/MD representatives emphasized the need to adequately fund infrastructure. The governor is aware that the procurement process is too slow. The governor expressed support for imiformity in MDOT Modal processes. As problem solvers, the governor expressed interest in having ACEC/MD representatives serve on a commission on regulations. Appointment Secretary Fielder will reach out to ACEC/MD. Also attending the meeting was Steve Crim, Director of Public Affairs. SPECIAL REPORTS; 1. ACEC Reports L. Kriebel and J. Otradovec reported the following: Representatives Hanna (RNY) and Hahn (DCA) have introduced the State Transportation & Infrastructure Financing Act that would reauthorize states to use federal highwayftmdsto capitalize state infrastructure banks through
4 By raising $835,000 ACEC/PAC set a new fundraising record in To achieve ACEC/MD's goal of raising over $22,000 a raffle will once again be held. Firms interested in sponsoring the raffle should contact the ACEC/MD office. Sen. Cardin is the lead cosponsor for a bill on procurement reforms, and ACEC is looking for ACECMD's support on this legislation. Contained in this legislation is a provision that would improve the D/B process by requiring agencies to reduce the list offinaliststo the five strongest teams, while preserving flexibility to add more teams when needed. Citing favorable D/B processes in states such as Florida, while the ACEC/MD Executive Committee supports the concept of this legislation, they expressed concern if the legislation went beyond federal projects to include state projects with federal funds. (Subsequently, following the meeting, ACEC's J. Salmoiraghi confirmed that the legislation would only apply to federal projects). The President's budget included Congressman Delaney's Infrastructure and Tax Reform framework. COMMITTEE REPORTS: 1. Nominating L. Kriebel reported that the committee has selected the following candidates for the open Executive Committee positions: Secretary S. Taub (Wallace Montgomery) Directors H. Patel (EBA) and V. Pielli (Urban Engineers) 2. Past Presidents Advisory/Bylaws/Fellows J. Otradovec reported that, at their June business meeting, the committee will be asked to address a bylaws revision to fully accommodate out of state firms providing allied services. In addition, the committee will be asked to change the bylaws to allow for to substitute for mail, when appropriate. 3. Federal Gov. Liaison/Corps of Engineers J. Otradovec reported on the February 24th internal committee meeting, as follows: A request was made to participate in upcoming ACEC/MW meetings with NAVFAC (Spring) and GSA (later in the year). TMDL Regional Permit is due out this Spring. The chair will reach out to Career Outreach Chair J. McCormack regarding providing assistance to USACE's outreach efforts. Coast Guard The committee is attempting to determine if any procurements are made at the Hawkins Point facility. SSA work is procured through GSA. FEMA Region 3 services are procured at Philadelphia. At the upcoming Congressional visitations, the committee would like to address the difficulty in getting work at local government facilities. The Federal Biz Ops are very difficult to utilize. 4. Baltimore City Liaison J. Otradovec reported that the chair continues to followup regarding the city's caps. Also, he was invited to once again participate in a meeting to address revamping the Boards and Commissions. 4
5 5. Career Outreach J. McCormack reported that the chair requested that ACEC/MD consider contributing to Penn State's High School Leadership Conference. Since the event is being held in Pennsylvania, the Executive Committee declined the request. 6. Information Technology J. Otradovec reported that according to SHA's A. Smith, the ProjecfWise/CADD subcommittee meetings will commence once Design and Operations names their participants. 7. Educational Facilities J. Otradovec reported that a meeting is scheduled with Harford County Schools on April 7*. 8. DGS/Interprofessional J. Otradovec reported that there were only a couple of comments provided regarding the proposed changes to the DOS procedure manual. Also, the CanStruction competition is scheduled for April 7*. 9. Small Business Enterprise J. Otradovec reported that the committee's April 28* meeting will feature a presentation by member firm Rowles Associates' R. Grodzinsky on tax issues impacting engineering firms. Also, a committee member requested that the issue of primes preparing proposals for subs be addressed at the meeting. The Executive Committee expressed support for addressing this issue. 10. MDOT Liaison J. Otradovec reported the following: The next SHA Partnering meeting has been rescheduled for March 30*. SHA is looking for data to justify increasing the salary threshold beyond $80 per hour. In response to questions regarding a recent solicitation, SHA's N. Calvert promoted membership in ACEC/MD as a source for developing teaming arrangements. The Executive Committee requested that the partnering committee address commute mileage, profit on direct expenses, preengineering, and audit adjustments. 11. Construction Services J. Otradovec reported that an internal committee meeting will be held on April T^. 12. Business Finance J. Otradovec provided the following report on action items identified at the February meeting with SHA's J. Pasch: Mileage and field vs office overhead rate for onsite consultant activities policies to be finalized in short order (SHA) Regarding contract close outs and a timetable established to complete overhead adjustments on closed contracts, a proposal to be drafted (ACEC) Utilization of fixed overhead rates for the life of a contract for any firm, including primes, if so negotiated at time of contract execution (SHA to provide position) On a cost plus fixed fee contract, can a consultant choose to negotiate individual tasks under that contract on a lump sum basis? (SHA to provide position) Contract language to clarify that contract extensions will include the ability to review and adjust any fixed overhead rates initially negotiated in the original contract (SHA and ACEC) 5
6 15. Gov. Golf Outing Greystone Golf Course, White Hall (May 4, 2015) S. Taub reported that the chair is working on strategies to encourage more participation from government employees. Firms are encouraged to consider sponsorship opportunities and arranging their foursomes. 16. Human Resources S. Taub reported that the March 12* meeting featured a presentation on creating a culture of health at work. 17. QBS J. Otradovec reported that the chair has requested that QBS Council Executive Director R. Lepson consider working with: Harford, Calvert, Charles, and Anne Arundel Counties. 18. Awards & Recommendations J. Otradovec reported that four ACEC/MD representatives were submitted for consideration in the national Young Professional Award competition. 19. Environmental T. Frascarella reported on the March 10* committee meeting, as follows: ACEC/MW is hosting a TMDL Symposium on March 24*. Forty four jobs are at risk if Anne Arundel County repeals its storm water management fee. The committee chair is actively promoting participation at the April 22nd Congressional visitation day. Spring Forum Focus TMDL/Water Quality, Chesapeake Bay status Scheduled for May 19* New MDE Secretary Grumbles has been contacted about delivering keynote remarks. Other invited speakers include: SHA Sonal Sanghavi Inspections Amy Stevens, Montgomery County Regulatory Perspective from MDE/USACE Gary Setzer and Joe DaVia Private Industry and/or Legislative Wrap Up Chris Pomeroy, AquaLaw Next meeting April 14*. 20. Program/Annual Conference Kingsmill Resort, Williamsburg, VA (June 2426, 2015) T. Frascarella and J. Otradovec reported the following: ACEC/MD's 2015 Conference will be held at Kingsmill Resort in Williamsburg, VA, Wednesday June 24* to Friday June 26*. The resort has agreed to offer room rates beginning at a base price of $200. Room reservations can be made by calling Speakers from the Hampton Roads Sanitary District and NAVFAC's Oceana Runway project are being pursued. S. McCone and C. Fronheiser offered to assist in securing speakers. 21. Public Relations J. Otradovec reported that in addition to the job board, the chair has updated the website with the new EE A entries. 7
7 22. CEPAC Gov. Calvert House, Annapolis (January 22,2015) S. McCone reported that a meeting was held to divide up firms that have not pledged or contributed to CEPAC. Firms are also encouraged to provide silent auction items at the golf tournament. 23. Legislative S. McCone and J. Otradovec provided an update on the following legislation: Certificate of Merit (HB 40/SB 386) and Duty to Defend (HB 455/SB 387) The legislation passed almost unanimously in the House and has stalled in the Sen. JPR Committee. A meeting will be pursued with Sen. President Miller to request assistance in getting movement in the JPR committee. Liquidated Damages (HB 379/SB 324) The legislation received an unfavorable vote in the Sen. EHEA Committee. Ethics Bill (HB 738) The hearing in the House HGO Committee went well. Former well respected state procurement official W. Kahn testified on behalf of ACEC/MD. The legislation was amended to also address reducing the lifetime ban on an individual that previously developed specs for a project. 24. EWC/ESBAC J. Otradovec reported the following: ACEC/MD will be requested to once again pledge to contribute to the ESB Capital Campaign. The goal is to raise $1.2 M. ACEC/MD previously pledged to contribute $2,000 over five years. MSPE's Professional Engineers Awards Night is scheduled for March 26*. The keynote speaker is DLLR Secretary Schultz. Sponsorship opportunities are available. COMMUNICATIONS & ANNOUNCEMENT; 1. Letter of thanks from Kahl scholarship recipient Clinton Martin The letter expressed appreciation, and complemented ACEC/MD on the awards banquet. 2. Request for contribution to Century H.S Robotics Team A motion was approved to contribute $100 to help offset the expenses to participate in a national competition. 3. Request for sponsorship of MdQI Career Day A motion was approved to contribute $500 to the event. NEXT MEETING: 1. CEAM Conference (April 14,2015) Hunt Valley Inn, Hunt Valley. 2. ACEC/MD Executive Committee Meeting (April 16,2015) ACEC/MD Office, Baltimore. 3. ACEC Annual Convention & Legislative Summit (April 1922, 2015) Marriott Wardman Park, DC. 4. ACEC/MD Golf Outing (May 4,2015) Greystone Golf Course, White Hall. 5. ACEC/MD Environmental Business Forum (May 19,2015) The Engineers Club, Baltimore. 8
8 6. ACEC/MD Executive Committee Meeting (May 21,2015) ACEC/MD Office, Baltimore. 7. ACEC/MD Executive Committee Meeting (June 24,2015) Kingsmill Resort, Williamsburg, VA. 8. ACEC/MD 27* Annual Conference (June 2426, 2015) Kingsmill Resort, Williamsburg, VA. There being no further business, the meeting was adjourned at 9:55 A.M. Respectfully submitted, J. Jannetti, Secretary, American Council of Engineering Companies/Maryland 9
9 AMERICAN COUNCIL OF ENGINEERING COMPANIES/MARYLAND Statement of Income s Expense Eight Months Ended February 28, Year End Budget Current Month Year To Date INCOME: Local Dues $234,360 * $252,000 ** $ $258, Joint Council Dues Affiliate Dues 10,500 8,250 11, Golf Outing 17,989 22,000 Application Fees 900 Legislative Luncheon 4,310 6, 000 6, Leadership Program 35,000 MeetingsGen. Memb. 13,737 12,000 7, , SponsorshipEEA Banquet 8,150 8, 000 8, , Seminars 15,000 DOT Agencies 8,030 Environmental 3, 900 Educational Bus. Forum 2,610 Int. on Savings Int. on Del. Accts Ann. Mtg./Conf. 41,170 50,000 Holiday Party 15,200 11,000 17, Miscellaneous 1, 824 2, subtotal $362,813 $419,300 $15, $316, National Dues 83,579 82,000 72, $446,392 $501,300 $15, $391, EXPENSES: Exec. Dir. Operations $150,000 $160,000 $13, $106, Exec. Dir.Perfrm.Bonus 10,000 12,500 12, Leg. Cons. Fee 12,000 12,000 6, QBS Facilitator 3, 000 Dues & Subscriptions 1, 090 1, Golf Outing 16,788 22,000 Insurance Expense 2,743 2, Legislative Luncheon 6,456 6, 600 5, MeetingsGen. Memb. 11,088 12,000 10, , Credit Card Fees MeetingsCommittee 2,893 3, , MeetingsFellows 2,465 2, 500 4, Leadership Program 35, , Seminars 15,000 DOT Agencies 3,828 Environmental 1,766 Matchmaking Educational Bus. Forum 1,995 Office Expense 3, 043 3, , Postage 1, 685 1, , ACEC/MD Publications 2,114 2, Professional Fees Pub. Afrs./Leg.Afrs. 6,184 10,000 1, , PACont.FromACEC/MW (5,000) (5,000.00) (5,000.oo; Public Relations 8,590 10,000 6, , Scholarship 5, 000 6, 000 5, , Scholarship Res. Fd. 2, 000 3, 000 Schol.Fd.GO Proceeds 1,201 Telephone 1,798 1, , Travel 17,493 21,000 2, , Ann. Mtg./Conf. 39,997 50,000 7, Holiday Party 10,631 11,000 13, GarrettJacobsEnd.Fd. 2, 000 2, 000 Website 3,336 3, , CEim Recognition 400 Com. To Protect MD TTF 10, Misc. Expense For Reserve 37,946 5,150 subtotal $362,813 $419,300 $37, $223, National Dues 83,579 82,000 72, $446,392 $501,300 $37, $296, Net Profit (Loss) ($22,188.39) $ 94, * 744 Index $315; ** 800 Index $315; *** 820 Index $315
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