Board Executive Committee Meeting WEDNESDAY, FEBRUARY 1,

Transcription

1 E N T E R P R I S E F L O R I D A S Board Executive Committee Meeting WEDNESDAY, FEBRUARY 1,

2 Enterprise Outlook Florida Executive Committee Meeting Agenda Orlando, Florida February 1, 2017 (EST) KEY: (I) = Information (D) = Discussion (A) = Action CALL-IN NUMBER: (800) ACCESS CODE: # Welcome & Opening Statement Alan Becker, Vice Chairman (I) Statement of Public Notice Mike Grissom Approval of Minutes dated November 29, 2016 (Tab 1) Finance & Compensation Committee Report (Tab 2) Performance Management Plan Update Audit Committee Report Leader Liaison Reports Business Development Marketing/Team Florida Tourism Development Sports Development International Trade & Development Legislative Committee Space Military and Defense New Business (Tab 3) CEO Contract EFI Contract Disclosures Member Information Alan Becker (A) Jorge Gonzalez (I) Brian Lamb (I) Alan Becker (I) Brett Couch Eric Silagy Danny Gaekwad Blake Gable Brian Curtain Stan Connally/Joe York Jesse Biter Carol Craig Alan Becker Stan Connally (A) Scott Fennell (I) Alan Becker (D) Proposed Consent Agenda Items (Tab 4) Alan Becker (D,A) Finance and Compensation Committee Report Audit Committee Report Reinvestment Strategy Update Nathan Sparks Board Investor Renewals Mike Grissom New Board Investor Representative Mike Grissom Public Comment Reminders (Tab 5) Adjourn Alan Becker Alan Becker (I) Alan Becker (A) Enterprise Florida Board Executive Committee Meeting February 1, 2017

3 Minutes of a Regular Meeting of the EFI Board Executive Committee Minutes of a Regular Meeting of the Executive Committee of Enterprise Florida A regular meeting of the Enterprise Florida, Inc. Executive Committee was held on November 29, 2016 at the Hilton Sandestin Beach Resort in Miramar Beach, Florida. Members Present Alan Becker Jesse Biter Stan Connally Brian Curtin Belinda Keiser Danny Martell for Eric Silagy Governor Rick Scott Kelly Smallridge for Eric Silagy Nathan Sparks Staff Present Sharon Blake Mike Grissom Manny Mencia Phillip Rogers Heather Shubirg John Webb On the Phone Carol Craig Agenda I. Welcome & Opening Statement Statement of Public Notice II. Approval of Minutes III. CEO Succession IV. Proposed Consent Agenda Items Finance and Compensation Committee Report Audit Committee Report Reinvestment Strategy Update Target Industries Update 2017 Board Investor Renewals New Board Investor New Board Investor Representative V. Public Comment VI. New Business CFO Consultant Contract VII. Reminders VIII. Adjourn Enterprise Florida Board Executive Committee Meeting Minutes November 29,

4 Minutes of a Regular Meeting of the EFI Board Executive Committee Welcome and Call to Order A quorum being present, Vice Chairman Alan Becker called the meeting to order at 4:01 p.m. Statement of Public Notice EFI EVP Mike Grissom read the statement of public notice, announcing that the meeting was being held in compliance with Florida s public record laws and was open to all who wished to attend. Approval of Minutes Vice Chairman Alan Becker called for a motion to approve the minutes from the September 28, 2016 meeting. Jesse Biter entered the motion and Belinda Keiser seconded. The motion passed unanimously. CEO Succession Vice Chair Becker introduced Stan Connally who headed up the CEO search committee. Stan reported that the committee allowed an additional candidate to be added to the selection process and list of finalists - Michael Finney and Richard Biter. That candidate is Chris Hart. Michael Finney requested to be removed from consideration as he accepted another position. Chris Hart spoke to each committee member individually. The Governor met with the candidates. EFI VP of Human Resources Sharon Blake called each committee member for their selection recommendation. All members unanimously selected Chris Hart to be the next President and CEO of Enterprise Florida. Stan Connally thanked all the candidates and on behalf of the selection committee submitted their recommendation that Chris Hart be the next EFI CEO. Pending this committee s approval, Stan Connally will recommend Chris Hart to the full board tomorrow. He will start January 3, There were no questions or comments. Vice Chair Becker asked for a motion for the Executive Committee to recommend to the full board tomorrow the selection of Chris Hart as the new President and CEO of Enterprise Florida. Stan Connally entered the motion and Brian Curtin seconded. The motion carried. As incoming Vice Chair, Stan Connally will negotiate the contract and present it to the Governor s office. Proposed Consent Agenda Items Finance and Compensation Committee Report Vice Chair Becker stated that the Finance and Compensation Committee met that morning. Mike Grissom reported that the meeting was chaired by Jorge Gonzalez in the absence of Alex Glenn. The first quarter financials were approved. Enterprise Florida is running at a surplus partially due to the reduced staff. The committee is looking at the compensation and bonus package but will wait until the new President and CEO is in place before bringing their recommendation to the committee for a vote. Audit Committee Report The Audit Committee met earlier that day. Brian Lamb called in to chair the meeting. EFI VP of Accounting Rodney Ownby reported that Cherry Bekaert wrapped up the EFI external audit on November 17. Ron Conrad presented their findings and unqualified opinion in today s meeting. He will give a presentation at the full board meeting the next day. The internal audit being performed by RSM is delayed about a week. They will present their findings to management at the end of next week. Reinvestment Strategy Update Vice Chair Becker reported that work on the reinvestment plan is in progress and will be ready to present at the next meeting. Enterprise Florida Board Executive Committee Meeting Minutes November 29,

5 Minutes of a Regular Meeting of the EFI Board Executive Committee Target Industries Update 2017 EFI SVP of Business Development Paul Marttila reported that every three years EFI and DEO are mandated by statute to review and agree on the eligibility of certain industries to be incentivized. For the current review minor edits are being made in the reporting document but no change to the list. The report is due on December 31 and will be sent to the Governor, President of the Senate and the Speaker of the House. Stan Connally asked what had changed. EFI VP of Competitive Intelligence and Research Heather Shubirg explained that they are working on the edits and back up material, but the list itself will not change. Belinda Keiser asked why Cyber Security is not on the list. Heather Shubirg explained that it is a subset of Information Technology at the six-digit NAICS code level. Data centers also fall under IT. Board Investor Renewals Mike Grissom reported four board renewals Craig Technologies, Florida Realtors, Kaplan, Inc. and Odebrecht Construction. New Board Investor Mike Grissom put forward Kirk Boylston, President of Lakewood Ranch Commercial Realty as a new board investor. New Board Investor Representative Mike Grissom also put forward Holly Borgmann as the new representative of ADT, LLC. Public Comment and Vote on Proposed Consent Agenda Items Prior to the vote being taken Vice Chairman Becker invited public comment on the proposed consent agenda items. There was none. Belinda Keiser offered a motion to approve the proposed consent agenda and advance it to the board for a vote by the full membership. Jesse Biter seconded and the motion carried. New Business CFO Consultant Contract - Disclosure Rodney Ownby explained that EFI lost accounting staff, so they contracted with CFO Strategic Partners, a firm that comes into distressed situations and cleans things up. For the time period of June through November, the cost was approximately $107, with another $10, of work needed to complete the assignment. Reminders The next board meeting will be February 1 and 2, 2017 in Orlando. Belinda Keiser reminded everyone about the Education & Workforce Talent Task Force meeting at 7:15 a.m. the next morning. Adjournment Having concluded committee matters Vice Chair Becker moved to adjourn the meeting. Stan Connally offered the second and the motion carried. The meeting was adjourned at 4:23 p.m. Enterprise Florida Board Executive Committee Meeting Minutes November 29,

6 Enterprise Florida Financial Report 6 Months Ended December 31, Unaudited The following financial information for the fiscal YTD period ending December 31, 2016 and 2015, is unaudited, and is derived from internally generated financial statements. This report is provided to the Board of Directors to assist in its understanding and analysis of EFI s financial performance and accountability. These statements have been generated by management. Statement of Financial Position (Attachment A) The Statement of Financial Position provides a comparison of the assets, liabilities and net assets of EFI as of December 31, 2016 and 2015, and is presented in a combined format on Attachment A-1. Operating funds are those directly related to the Company s agreement with the State of Florida Department of Economic Opportunity. Administered funds are those awarded by the State to various grantees, and subsequently administered by EFI. Corporate funding reflects investor activity and the related use of those funds. Restricted dollars represent funding earmarked for specific purposes exclusively for programs such as Base Protection, Florida Defense Support Task Force, Small Business Technology Growth Fund, State Small Business Credit Initiative, Rural Strategic Marketing, and Technology related initiatives. Statement of Activities (Attachment B) The Statement of Activities provides a comparison of EFI's revenues and expenses compared to the budget approved by the Board. Information for the prior year is also presented for comparative purposes. Information is presented for the 6 month period ending December 31, 2016 and 2015 on Attachment B-1. Revenues Revenues include state funding, investor contributions, program fees, and interest. The revenues are either collected or billed by year-end. For the period ending December 31, 2016, the first quarter revenue from the state has been recorded and is reflected in these financial statements. State Operating lines are tracking at or near budgeted amounts, with minor differences attributable largely to timing. Private Revenue from corporate contributions was budgeted at $1.8mm for FY 2016/17, which is just above the $1.6mm budgeted for FY 2015/16. Contributions are budgeted based on prior year timing, which is driven by the anniversary dates of the investors. Private revenue earned and collected through the end of December, 2016 was $654k versus a budgeted amount of $1.3mm. Approximately $400k of this variance is driven by a short fall in Team Florida private funding. Although lagging on a YTD basis, it is expected that contributions collected in the third and fourth quarters will bridge the overall gap in Private Revenue. Other Income is tracking $340k above budget YTD as a result of sports team license plate fees and other revenue collected through the Florida Sports Foundation. Expenses Through the end of Q2, FY 17, EFI incurred expenses of $12.7mm compared to $15.1mm in 2015 and is under budget from a year-to-date perspective. Overall expenses are only higher compared to the prior year due to TMFL expenditures of $3.8mm v. $210k in This is strictly related to the timing of last year s costs for this program relative to the current year. In general, all EFI expense lines are tracking lower than the prior fiscal year due to substantial cost reductions implemented in conjunction with DEO review and subsequent restructuring of the organization in May of Overall, Net Income is tracking favorably at $3.6mm in excess of budget. While this mid-year variance reflects a trajectory that would track well north of $6mm for the full year, it should be noted that the organization s expenditure tracking is not equally spread quarter to quarter due to a concentration of program and event costs that ramp up subsequent to mid-year. For additional information, contact: Rodney Ownby, Vice President, Finance and Accounting, or Amanda Zawadski, Director, Finance and Accounting T rownby@enterpriseflorida.com; T azawadski@enterpriseflorida.com

7 Enterprise Florida && Florida Sports Commissions Consolidated Balance Sheet For the Six Months Ending Saturday, December 31, 2016 Attachment A-1 ($s in Thousands) 2016/ /16 Annual Change Enterprise Florida Sports Total Enterprise Florida Sports Total Florida Foundation Florida Foundation $ % ASSETS Unrestricted Cash $4,806 $2,016 $6,822 $5,152 $1,027 $6, % Restricted Cash 37,743 2,381 40,124 53,237 2,602 55,839 (15,715) (39.2%) Escrow Restricted Cash 117, , , ,354 (12,981) (11.1%) Accounts Receivable 31, ,735 5, ,066 25, % Loans Receivable-FSBTGF % Investments-FSBTGF % Loans Receivable-SSBCI 26,909 26,909 19,900 19,900 7, % Prepaids % Leaseholds, Fixed Assets (188) (33.2%) TOTAL ASSETS 220,144 4, , ,717 4, ,240 4, % LIABILITIES Accounts & Grants Payable 238 2,614 2, ,800 3,283 (431) (15.1%) Accrued Liabilities (359) (88.6%) Escrow Payable 117, , , ,271 (12,975) (11.1%) Deferred Revenue 6,821 6,821 8,186 8,186 (1,365) (20.0%) TOTAL LIABILITIES 124,760 2, , ,704 2, ,504 (15,130) (11.9%) NET ASSETS Unrestricted 27,275 1,607 28,882 9, ,607 18, % Temporarily Restricted 66, ,364 66, , % Change in Net Assets / Net Income YTD 1, , , % TOTAL NET ASSETS 95,384 2,210 97,594 76,013 1,723 77,736 19, % TOTAL LIABILITIES & NET ASSETS 220,144 4, , ,717 4, ,240 4, %

8 Enterprise Florida & Florida Sports Commissions Consolidated Income Statement For the Six Months Ending Saturday, December 31, 2016 Attachment B-1 ($s in Thousands) Actual Budget YTD Difference Prior Year Difference Year To Date Year To Date Year To Date Revenue State Operating Assistance - EFI $7,520 $7,500 $20 $7,500 $20 State Operating Assistance - FSF 2,340 2, ,382 (432) State Operating Assistance - TMFL 4,959 4, ,959 Private Revenue 654 1,295 (641) 800 (146) Event Revenue (314) 633 (290) Management Fees Other Income (81) Total Revenue 16,352 15, ,886 4,094 Expenses Payroll 3,565 3,644 (79) 4,444 (646) General & Administrative 1,592 2,118 (526) 2,267 (675) Program Costs - EFI Program Costs - FSF 1,334 1,813 (480) 1,559 (226) Event Costs - TMFL 3,792 4,748 (955) 210 3,583 International Offices 941 1,025 (84) 1,034 (93) Professional Fees Advertising & Marketing (290) 184 (108) Travel (91) 382 (152) Total Expenses 12,740 15,085 (2,345) 11,099 1,874 Change in Net Assets 3, , ,220 Deduct: Diff in Temp Restricted (1,592) Change in Net Assets 2,020

9 Enterprise Florida Board Meeting Action Item CEO Contract February 1, 2016 Below is an item being considered for placement on the Agenda for the upcoming board meeting. Subsequent to your action today, it will be on the Agenda and voted on by the full Enterprise Florida membership. PROPOSED Action Item 1. Action Item: CEO Contract The Executive Committee is asked to send the CEO s Contract recommendation to the Board for approval. Enterprise Florida Board Executive Committee Meeting February 1, 2017

10 CEO Contract Placeholder Enterprise Florida Executive Committee Meeting February 1, 2017

11 Contract Disclosure Pursuant to EFI s corporate policy, all contracts for goods or services valued at more than $100,000 must be reported to the Executive Committee. In this fiscal quarter, EFI has entered into the following agreements. Leotta Location & Design LLC $300, This agreement will advance the Strategic Site Inventory (SSI) project initiated in Contractor will evaluate and identify potential high quality sites well-suited for heavy and light industrial projects; screen, evaluate and map those sites for inclusion in the inventory to better market Florida for expansion and relocation projects, with a particular emphasis on available sites in rural areas of opportunity. OCO Global Ltd. $117, OCO will serve as Florida s representative in the EFI s UK office, providing business development and program support for the remainder of fiscal year Enterprise Florida Executive Committee Meeting February 1, 2017

12 Enterprise Florida Board Meeting Proposed Consent Agenda February 2, 2016 Below is a list of items that are being considered for placement on the Consent Agenda for the upcoming board meeting. Subsequent to your action today, all approved items will be transferred to the Consent Agenda and voted on by the full Enterprise Florida membership. Board members are not allowed to vote on their own re-appointment or any issues for which they have a conflict of interest. Directors with an announced conflict of interest will be considered recused from these votes. PROPOSED CONSENT AGENDA 1. Action Item: Finance and Compensation Committee The Committee is asked to approve the recommendations of Finance and Compensation Committee. 2. Action Item: Investors Membership Renewals Subsequent to board ratification, the following companies will continue as At-Large Members of the Enterprise Florida Board of Directors for a one-year term: Bank of America Gulf Power Charter Communications 3. Action Item: New Company Representative Subject to an affirming vote by the board the following will become their company s representative on the Enterprise Florida Board. Jairo Flor, Interim CEO, Odebrecht Amy Growder, Vice President and General Manager, Lockheed Martin Rotary and Mission Systems (RMS)Training and Logistics Solutions, Lockheed Martin Harry Sideris, State President Florida, Duke Energy Enterprise Florida Board Executive Committee Meeting February 1, 2017

13 New Investor Representative New Investor Representative Lockheed Martin Amy L. Gowder Vice President and General Manager, Lockheed Martin Rotary and Mission Systems Training and Logistics Solutions Amy L. Gowder is Vice President and General Manager for Lockheed Martin s Training and Logistics Solutions line of business within the Rotary and Mission Systems (RMS) business area. In this capacity, she is responsible for the execution and strategic growth of Lockheed Martin s mission readiness and sustainment programs with more than 5,400 employees around the globe. Prior to joining RMS, Ms. Gowder served as Vice President of Supply Chain Management for Lockheed Martin Aeronautics Company headquartered in Fort Worth, Texas. In this role, Ms. Gowder was responsible for developing and implementing acquisition policies and strategies for all Lockheed Martin Aeronautics Lines of Business and oversaw a procurement budget of approximately $10B annually. She previously served as President & General Manager of Lockheed Martin s Commercial Engine Solutions, with locations in San Antonio, Texas and Montreal, Canada. In this role, Ms. Gowder was responsible for the maintenance, repair, and overhaul of eleven engine product lines that powered more than 15 military and commercial aircraft. Prior to that, Ms. Gowder held many leadership roles within Lockheed Martin and has been responsible for multiple special projects in Supply Chain, Sustainment, Finance, and Operations. She was the Director of Affordability for Lockheed Martin Aeronautics and was responsible for all aspects of implementing overhead, product, process, and material cost efficiency. Ms. Gowder is a proven leader and in 2012, she was named a top 40 under 40 aviation executive by Aviation Week. In 2015, she was inducted into the San Antonio Women s Hall of Fame. In 2016, she was appointed to the Aerospace and Aviation Advisory Committee for the State of Texas. Ms. Gowder is a prestigious graduate of the Massachusetts Institute of Technology Sloan Fellows Program with a Masters of Business Administration and holds a Bachelor s of Science degree in Bioengineering from Arizona State University. Enterprise Florida Executive Committee Meeting February 1, 2017

14 New Investor Representative Odebrecht USA Jairo Flor Interim CEO Mr. Flor has been with Odebrecht USA for over 30 years most recently serving as Chief Financial Officer. Enterprise Florida Executive Committee Meeting February 1, 2017

15 New Investor Representative Duke Energy Harry K. Sideris State President Florida Harry Sideris is Duke Energy s state president in Florida, serving approximately 1.7 million electric retail customers in central Florida, including metropolitan St. Petersburg, Clearwater and the Greater Orlando area. He is responsible for the financial performance of Florida and managing state and local regulatory and government relations, and community affairs. He also has responsibility for advancing the company s rate and regulatory initiatives. Prior to assuming his current position in January 2017, Sideris served as senior vice president of environmental health and safety for Duke Energy. He led the groups responsible for developing and advancing corporate policies, programs and strategies to ensure the company s compliance with environmental health and safety laws and regulations. He served in this role since August Sideris has more than 20 years of experience in the energy industry. He joined Progress Energy (formerly Carolina Power & Light) in 1996 and served in numerous operations, maintenance, technical and leadership roles across Progress Energy s generation fleet in the Carolinas and Florida at both the plant and corporate levels. Following the merger between Duke Energy and Progress Energy in July 2012, Sideris served as vice president of power generation for Duke Energy s operations in the western portion of North Carolina and South Carolina. This region includes the Allen, Asheville, Cliffside, Lee and Marshall coal-fired plants; all hydro generation assets; and the Darlington, Lincoln and Mill Creek combustion turbine plants. Sideris earned a Bachelor of Science degree in chemical engineering from North Carolina State University and a Master of Business Administration degree from Campbell University. Sideris grew up in Asheville, N.C. He and his wife, Catinna, have two daughters. Enterprise Florida Executive Committee Meeting February 1, 2017

16 Executive Committee Charter Enterprise Florida, Inc. Executive Committee Charter Role Enterprise Florida (EFI), Florida s lead economic development organization is led by public and private leaders on its Board of Directors. Its mission is to aggressively develop and facilitate the growth of current and future jobs for Florida s citizens. The Board may establish committees or councils to help with the mission of EFI. A primary committee for the Board is the Executive Committee. The Board may establish other committees as needed. The Executive Committee (EC) provides information and recommendations to the EFI Board, supports the development of Board investors, reviews operations and management issues, monitors relationships with linked organizations and establishes the consent agenda for each board meeting. It may assume any function or role assigned by the Board except for the election of the Vice Chair-elect; selection or removal of the President; determining the compensation paid to the President; and adopting, amending or repealing the bylaws. Membership The EC is composed of no less than 5 and no more than 20 voting members. The membership is concurrent with the two year term of the Vice Chair. The incoming Vice Chair submits the list of EC issue experts or chairmen to the Board for approval at the first meeting of his/her term. The issue experts and issue chairmen roles are linked to the business and program functions of the organization. The EC is led by the Board Vice-chair and includes the Board chair or his designee, and the immediate past Vice Chair in year one, replaced by the Vice chair-elect for year two. Ten (10) EC members are responsible for reporting on EFI essential business issues as they relate to three areas: EFI operations 1. Education/Workforce Talent 2. International Trade & Development 3. Minority and Small Business, Entrepreneurship, Capital (MaSBEC) 4. Defense 5. Business Development 6. Sports Development 7. Strategic Partnerships 8. Team Florida Marketing Partnership (Reporting) EFI management and information 8. Finance and Compensation 9. Audit 10. Legislative Policy EFI responsibility with linked organizations 11. Tourism Marketing 12. Space Florida Additionally, ex-officio members include: President of Enterprise Florida, and Vice-chair of Stakeholders Council. The ex-officio members do not have a vote on the EC. A quorum consists of one more than half of the active number of Executive committee members. Enterprise Florida Board Executive Committee Meeting November 29, 2016

17 Executive Committee Charter Operations A meeting of the Executive Committee (EC) shall be held at least four times each fiscal year, either in person or by teleconference. The Committee may arrange for regional, special or other meetings as appropriate. Authority The authority of the Executive Committee is vested in the EFI By-laws (2011). All meeting rules that apply to the Board apply to the EC. The Vice Chair of the Board chairs the EC and he or she selects the Executive Committee leader-liaisons and issue chairs to serve during the Vice Chair s two year term. EC members may be re-appointed. Responsibilities Subject to applicable corporate governance laws, the principal responsibilities and functions of the EC are as follows: Review essential business reports of each member serving as liaisons for topics in Operations Issues, Management and Information Issues and Linked Organizations Complete the consent agenda for Board meetings, including essential business information reports Maintain Enterprise Florida s focus on its mission of business development through expansion, recruitment and creation Support the development of new Board investors Recommend new and renewals of at-large members for Board approval Identify essential business development issues for in depth review by the full Board The EC may act on behalf of the Board, except as noted in the Purpose statement above, when assigned by the Board. Unless the authority is assigned by the Board, all EC decisions are scheduled to be ratified at the next Board meeting. Staff Support The Executive Committee is assisted by the Strategic Partnership Division of Enterprise Florida. Mike Grissom, SVP External Affairs Phone: mgrissom@enterpriseflorida.com Enterprise Florida Board Executive Committee Meeting November 29, 2016

18 Executive Committee Members Members: Executive Committee Alan Becker Alex Glenn Eric Silagy Brian Curtin Jesse Biter Carol Craig Brian Lamb Julius Davis Brett Couch Belinda Keiser Stan Connally Danny Gaekwad Blake Gable Brett Couch Kevin Reilly Chris Hart IV (ex-officio) Nathan Sparks (ex-officio) Issue Responsibility Vice-Chair Finance & Compensation Chair Team Florida Marketing Partnership International Trade Space Defense and Military Retention Audit Committee Minority and Small Business, Entrepreneurship, Capital (MASBEC) Business Development Education/Workforce Talent Legislative Policy/Vice Chair Elect Tourism Sports Immediate Past Vice-chairman Governor s Designee EFI President & CEO Vice Chair of Stakeholder Council Enterprise Florida Executive Committee Staff Contacts: Business Development Paul Marttila Senior Vice President International Manny Mencia Senior Vice President Audit & Fin & Comp Scott Fennell Chief Operating Officer Marketing Joe Hice Senior Vice President & CMO External Affairs/Leg. Policy Mike Grissom Executive Vice President Military & Defense Bruce Grant Executive Director Stakeholders Council Jenna Simonetti Director Sports John Webb President & CEO Tourism Ken Lawson President & CEO Enterprise Florida Board Executive Committee Meeting November 29, 2016