AMERICAN COUNCIL OF ENGINEERING COMPANIES/MARYLAND EXECUTIVE COMMITTEE MEETING NOVEMBER 17, 2016 A meeting of the Executive Committee of the American Council of Engineering Companies/Maryland was called to order by S. Robinson, President, at 10:01 A.M. on Thursday, November 17, 2016 at the Garrett Jacobs Mansion, Baltimore, MD. IN ATTENDANCE: S. Robinson, President; S. Taub, Treasurer; T. Frascarella, M. Peters, H. Patel, S. McCone, ACEC/MD Directors; D. Knight, ACEC Director; and J. Otradovec, ACEC/MD Executive Director. MINUTES OF THE OCTOBER 13TH MEETING: A motion was duly moved and seconded that the minutes of the October 13, 2016 meeting be approved. FINANCIAL REPORT: S. Taub distributed copies of the Preliminary Statement of Financial Condition for the Council as of October 31, 2016, as follows: ASSETS: Cash - checking $ 192,638.77 T. Rowe Price Prime Reserve Fund 2,182.67 Accounts Receivable 97,493.25 Dues Receivable Local $ 178,466.19 National 54,040.26 232,506.45 Affiliate Dues Receivable 18,750.00 Joint Council Dues Receivable 450.00 $ 544,021.14 LIABILITIES: Accounts Payable $ 31,984.82 ACEC/PAC Raffle 3,600.00 $ 35,584.82 NET WORTH: Beginning Balance 7/1/16 $ 308,195.24 Total to Date 200,241.08 $ 390,756.45 The Statement of Income and Expense, which is attached to the minutes, was reviewed for four months ending October 31, 2016. S. Taub reported that outstanding dues payments have slowed down again. The statement reflects expenses associated with attending the ACEC Annual Conference. Firms are requested to pay all outstanding invoices by the end of the year. After discussion, it was duly moved and seconded to accept the financial report as presented. 1
OLD BUSINESS: 1. SMART Goals S. Robinson and J. Otradovec reported on the goals, as follows: Membership Growth/Retention One new Affiliate member has been added. Increased Legislative Support All firms are encouraged to send at least one representative to ACEC/MD s Legislative Action Day, being held January 19 th. Also, all ACEC/MD Leadership Class participants are expected to attend. Program The Utilities Committee will host a program at the end of March focusing on resiliency. Political Fundraising While ACEC/MD exceeded the goal for ACEC/PAC fundraising, only approximately $20,000 of the $25,000 CEPAC goal has been raised this year. This represents only 22% of the 40% member firm participation called for in the goals. Dues Billing With the exception of one firm, all member firms represented on the Executive Committee and as Committee Chairs have paid their dues in full. Career Outreach Seven out of twelve members of the Executive Committee have identified two or more individuals that would be involved in outreach efforts. Prime/Sub Interaction One of three roundtables has been held in the current fiscal year. 2. Governor s Procurement Commission J. Otradovec reported that Commissioner E. Straughan advised that draft legislation is being considered from recommendations from the commission s various committees. Other recommendations such as expanding the SBR program to more state agencies and placing larger contracts with small businesses do not require legislation. Other recommendations include: streamlining the MBE certification process; establishing standards to allow the state to obtain best value instead of lowest bid; regional v. statewide procurements; centralized procurement; and realigning sections of the RFP to create an efficient flow. 3. Entering Into Amicus Brief in Defense of the Economic Loss Rule J. Otradovec reported that oral arguments were heard on October 6 th. The Court of Appeals denied the request to file a late amicus brief made by AGC and other contractor groups. At issue is whether a contractor can sue a design firm for losses when there is no contract between the two entities. Both the lower court and the Court of Special Appeals ruled in favor of the Economic Loss Rule, while the Court of Appeals issued a Writ of Centorri. 4. ACEC/MD s 60 th Anniversary J. Otradovec reported that a polling site was established to gather ideas for celebrating ACEC/MD s 60 th anniversary, which is officially December 4, 2017. Preliminary recommendations are that the event not be a black tie affair and that there is a band. Spouses and guests would be invited. Based on a poll of Executive Committee members, the Baltimore Aquarium and the B&O RR Museum appear to be the favorite locations. 5. Bylaws Review S. Robinson commented that the only proposed change is that ACEC/MW members must join ACEC/MD as a Joint Council member to participate on a committee unless the committee is meeting with an agency that crosses jurisdictions. 2
6. Ruppersberger Fundraiser (October 26, 2016) - J. Otradovec reported that approximately $12,000 was raised at the event. The Congressman recommended that ACEC embark on a marketing program to convince the public of the need to encourage their elected officials to support infrastructure funding. SPECIAL REPORTS: 1. ACEC Reports D. Knight and J. Otradovec reported the following: ACEC s Fall Conference was held at the Broadmoor in Colorado Springs, October 19-22, 2016. The BOD meeting included an official welcome for ACEC s newest MO ACEC/RI, a discussion of the national contracting out study and threats to professional licensure. ACEC/MD was recognized at the conference as one of 12 MOs that achieved 2% firm growth and 3% employee growth during the past fiscal year, and for exceeding the ACEC/PAC goal by raising over $25,000. JMT s S. Kunkel and KCI s C. Philipps were honored as national Young Professional of the Year and Community Service award winners, respectively. Nationally, over $800,000 has been raised toward the $1 M ACEC/PAC goal. Some states are encountering situations where a third party is telling a government client that they can get money back from the designer under the 179D Energy Tax Credit. Sen. Cardin has sent a letter that this practice violates the intent of the law. Firms are requested to advise ACEC if they are encountering this situation. The WRDA bill has been approved by both houses of Congress, and it is now headed to a conference committee. ACEC is now offering a Pathway to Executive Leadership program that is designed for individuals that have graduated from MO leadership classes. ACEC was instrumental in defeating the proposed DOL weekly sick time reporting requirement. The Minuteman Fund, which has $ 2.3M to fight state issues with national significance, has an 85% success rate. COMMITTEE REPORTS: 1. Facilities No report. 2. DGS Liaison/Interprofessional J. Otradovec reported that there is a proposed regulation to replace the SF254 Form with the SF330 Form on DGS projects. The next liaison meeting is scheduled for December 6 th. 3. Utilities H. Patel reported that the committee will hold a forum in late March focusing on resiliency. Also, a meeting is scheduled with WSSC on December 7 th. The next committee meeting will be held December 8 th. 4. MDOT Liaison A. Straus and J. Otradovec reported the following: $80 per hour threshold Approximately two years ago, ACEC/MD provided survey information to SHA substantiating the large number of individuals that are near or exceeding the threshold. In practice, the threshold is being treated by MDOT 3
Business Units as a cap and not a threshold, and it is causing a tremendous problem for many firms. The Executive Committee was questioned on how aggressive they want to be in resolving the issue. Following discussion, it was decided that a meeting should be pursued with Secretary Rahn prior to the end of the calendar year. At that meeting, ACEC/MD should request that the threshold be abolished or at the least substantially increased. The next SHA Partnering Committee meeting is scheduled December 13 th. An Executive Committee member requested that charging time for oversight of onsite staff and retainage for engineers for D/B jobs be added to the agenda. Regarding the oversight fee, there is inconsistency throughout the MDOT Business Units. Also, it appears that the state could write a contract so that designer retainage is not required. IDQ Contracts Contrary to what was reported at the last SHA Partnering committee meeting, FHWA is not pushing states to get away from using IDQs. All they require is that there is documentation that the most qualified firm was selected. 5. Construction Services T. Frascarella and J. Otradovec reported on the November 2 nd meeting with representatives of SHA and MDTA, as follows: OOC CMI Contracts The selection for the statewide CMI contracts will occur after the first of the year. The NTP will not slip. Consultants questioned why firms need to submit the same information that SHA currently has on file. If the rates and classifications have not changed SHA will treat it like a transfer. MDTA Technical Proposal for CM Contracts There will be seven to eight contracts valued at $115M. The NTP is expected April 2017. SHA Replacement Claims Contracts will be advertised in mid-january. Different contracts can be used by different business units. Training - SHA Regional Training will be conducted mid-february to mid-march. It is designed for all classifications. Both the new construction manual and new electronic spec book will be discussed. S. Marciszewski will provide dates. - MDTA will send out invitations to their upcoming inspector training sessions. SBR - Both MDTA and SHA will not have any standalone projects, but SHA is getting a lot of pressure to advertise an SBE project. It will most likely be a district surveying contract. MBE and SBR will get counted for both. COLA No information will be available until the end of March, when the governor s budget is released. econstruction SHA is evaluating CCMS and AASHTOWare. They would like to pilot both products in the spring Consultant v. SHA Benefits Concern was expressed that SHA is not taking into account previously agreed upon company policies. SHA commented that company holidays are being considered in contracts and that their only concern is that the work is covered. Invoicing Procedures (Requiring PDF v. Original) SHA commented that PIF forms are required that need to be submitted to satisfy audits. They are requesting invoices in the same format. The Business Finance Committee will be requested to address the issue. 4
Employee Transfers Concern was expressed by SBE firms that SHA is requiring them to transfer employees to another firm rather than allowing the firm to assign them to another contract. SHA commented that the state should not be dictating that an individual has to switch firms. If there is a problem firms should contact Steve Marciszewski. Inspector Safety and PPE It is permissible for a firm s employee to wear SHA equipment if there is a designation that the individual is a consultant employee. Also, SHA will address the concern that consultant employees are being asked to work 60 hours per week by ensuring that projects are staffed appropriately. PM Being Required to Charge to OH The consensus of both SHA and consultants was that over time the cost will even out. OOC Communication It is incumbent on the prime that information be shared with subs. If this is not happening firms should contact Veronica Piskor or Steve Marciszewski. Spec Book Going Electronic Currently awaiting TSO approval. Will probably begin in 2017, and will be available via mobile, tablet and hard copy. Inspector Upgrade Time Frames SHA will shift staff to accommodate the wave of resumes that will occur. Firms should contact Steve Marciszewski if there is a problem. MDTA will be advertising the Canton Viaduct June 2017, and they need each firm to provide a PM resume. The individual would be on board in April. 6. Business Finance T. Frascarella provide the report from the chair, as follows: Cheryl Stambaugh and Eric Lomboy agreed to explore the possibility of publishing names of Organizations with S Corp waivers or revising the Organizational Consulting Form submitted with Price Proposals at contract onset to address this waiver. FAR Overhead training was held at KCI earlier this month sponsored by SHA. SHA had four auditors there for all four days. The latter two-day session was attended by MTA, MDTA, and Baltimore City as well as private firms and outside accountants. Based on the comments and questioning, unallowable travel will be a focus area for 2016 audits. SHA held a meeting last week specific to certain contracts to address various topics. Many primes and subs were there. Topics discussed included: - Fixed Fee Bill Out - Reallocations (Contract/Task) Labor, OH, FF & DE - S-Corp Contract Allowance - MBE Contract Participation Goal vs. Proposed Goal - Audit Adjustment (Negative Value Check) - Negative Invoice Line Item Value Corrections (Contract/Task) - Project Manager Project Tracking for EWO Purposes The next general Finance Committee meeting will be scheduled in January. 7. IT No report. 8. County/Municipal Government Liaison J. Otradovec reported on the October 25 th committee meeting, as follows: 5
Approximately 70 people attended the CEAM presentation. Procurement regulations in some jurisdictions prevent alternative delivery. It is hoped that this could become a regular presentation at the CEAM Conference and hopefully at MACO. Prince George s County officials may be interested in a separate meeting on the subject. St. Mary s County is seeking price proposals and there is concern about their indemnification language. Montgomery and Carroll Counties are competing task orders. Prince George s The individuals that stopped the recent solicitation have departed the county, and now would be a good time to pursue a meeting. Charles The county has reorganized and DPW now handles engineering. Anne Arundel Meeting on December 7 th. Next Meeting January 10 th. 9. Gov. Golf Outing Greystone Golf Course, White Hall (May 1, 2017) No report. 10. Human Resources J. Otradovec reported that the committee was scheduled to meet on November 16 th. 11. QBS J. Otradovec reported on the November 15 th committee meeting, as follows: The chair is requesting that firms provide RFPs from recent projects. Anne Arundel County The County requires very detailed technical proposals for all projects. They do not conduct interviews or offer any guidelines on their selection criteria. A committee member will participate in the next liaison meeting. The committee is requesting actual selection practices from jurisdictions. For non-qbs jurisdictions, a committee representative will attend liaison meetings and request the opportunity for a follow up meeting to discuss their selection procedure. Government officials will be asked to describe the strengths and weaknesses of their selection process. ACEC/MD representatives will outline the challenges they see with the process. 12. Awards & Recommendations M. Peters reported that the final judging for the EEA competition will be held December 7 th. Also, the deadline for the community service award is January 6 th. 13. Environmental M. Peters reported that the next committee meeting is scheduled December 13 th. Also, the Environmental Business Forum will be held May 16 th. 14. Public Relations M. Peters and J. Otradovec reported the following: ASCE is looking for ACEC/MD s support in publicizing and soliciting sponsorships for the February 17, 2017 premier at the Science Center of the film Dream Big. The film, being rolled out at the beginning of Engineers Week, emphasizes the important contribution that engineering makes to society. The event is envisioned to be a red carpet like opening, with a one-hour cocktail reception including heavy hors d oeuvres. Sponsorship levels would be $250/$500/$1,000. The governor, cabinet secretaries and DPW directors in surrounding counties would be invited to attend. The Executive Committee expressed interest in participating. 6
The calendar on the ACEC/MD website has been updated to provide more interactive features. Next committee meeting December 8th. 15. Career Outreach M. Peters and J. Otradovec reported the following: The ACEC/MD hosted STEM Fair at ESB was attended by approximately 130 students. Feedback was very positive. It appears that ESB could easily accommodate about five more stations and twice as many students. Firms are encouraged to support a fundraiser for Baltimore City s PLTW EDD symposium, being held December 2 nd. The chair is working with a student to accommodate a request for an interview with an engineer. 16. CEPAC S. McCone reported that, in addition to attending fundraisers for legislators, the committee members are making contacts with member firm representatives to encourage contributions to CEPAC. Currently, only 19% of ACEC/MD firms are contributing, resulting in less than $40,000 being raised toward the $50,000 goal. Also, in conjunction with the Legislative Committee, the committee will spearhead a fundraiser for Sen. EHEA Chair Conway. It was agreed that the Executive Committee would act as the host committee and contribute $200 and interested parties would contribute $100. The goal is to raise $5,000. 17. Legislative S. McCone reported on the following items that will be addressed in the 2017 General Assembly session: - Duty to Defend SB234/HB871 passed the General Assembly, which makes requiring the engineer, surveyor or contractor to pay the cost to defend a promisee for damages caused by the sole negligence of the promisee void and unenforceable. While the bill was a good first step, and was the only legislation that had a chance to pass. The committee will look to tighten the law in the upcoming session to address concern that the legislation does not include economic damages and is tied to sole negligence of the promise. - Procurement bill After passing the House with an amendment requiring a twoyear prohibition, HB195 sat in the Sen EHEA Committee, until the waning hours of the session. At that point the bill was amended to include a three-year prohibition, and the session expired before the House could act. The language will be modified for clarity and an effort will be made to work closely with Sen. EHEA Chair Conway. - A member firm was told that the Comptroller s office will seek to recover taxes for investigative services going back four years. Apparently, the Comptroller is behind this effort. The concern is that the Comptroller is equating services provided by an engineering firm with those provided by a private detective. At a hearing, the Comptroller s office confirmed their intentions and commented that they were looking at taxing any services that were not spelled out as engineering services. Due to the obvious ramifications, ACEC/MD is drafting legislation that could be introduced. 7
Legislative Breakfast Speaker Duane Carey, from MBRG, did a good job encouraging people to get involved in the political process and support business PACs. A primer on political activism will be held December 15 th immediately following the general membership meeting. Program for ACEC/MD s Legislative Action Day on January 19, 2017 To provide more representatives at visitations, the Executive Committee meeting will now be held following the luncheon. There will now be more teams to cover the appointments. To increase ACEC/MD s constituent data base, firm representatives are requested to provide the district of their firm and the districts of their employees. 18. Membership J. Otradovec presented an application from CTI for consideration for Affiliate membership. After discussion, a motion was duly made and seconded that: The application from CTI for Affiliate Membership be presented to the membership for acceptance in ACEC/MD. Motion approved. J. Otradovec reported that a meeting was held with Doug Allen from HNTB. Also, a list of prospects was reviewed and updated, including the following assignments: - ADCI M. Peters - Findling S. Taub - Hope Furrer SBE Chair M. Glueck agreed to contact the firm about joining - Bryant H. Patel - CEM D. Knight - Coastal D. Knight - Corman D. Knight - AB W. Barrett 19. Program/Annual Conference (Hyatt Regency, Newport RI, June 22-25, 2016) J. Otradovec reported the following: December 6 th Holiday Party December 15 th general membership meeting USACE Baltimore District Commander Chamberlayne will be the featured speaker. Immediately following the program, ACEC/MD s Legislative Counsel Chris Costello will make a presentation on political activism. The biannual ACEC/MD Leadership program will be offered in 2017 commencing in January. Based on recommendations from the Past Presidents/Fellows Committee an emphasis on state political activism has been incorporated into the program that includes a primer on the importance of political activism and participation at ACEC/MD s Legislative Action Day. 20. Federal Gov. Liaison/Corps of Engineers Liaison J. Otradovec reported that Col. Chamberlayne has agreed to be the featured speaker at the general membership meeting luncheon on December 15 th. At that time, the partnering agreement between ACEC/MD and USACE Baltimore District will be renewed. The next liaison meeting is scheduled November 22 nd. 8
21. Baltimore City Liaison J. Otradovec reported that a meeting was held November 1 st with Director Chow. He offered support for continuing the liaison meetings and agreed with the chair s approach to addressing administrative issues at a separate meeting. He suggested that a subcommittee be formed to address jobs creation. The next liaison meeting is scheduled November 22 nd. 22. EWC/ESBAC Liaison No report. 23. Small Business Enterprise J. Otradovec reported that MES contacted ACEC/MD about hosting program for SBEs. The next committee meeting is scheduled December 9 th. 24. Nominating No report. 25. Past Presidents Advisory/Bylaws/Fellows J. Otradovec reported that the committee will be asked to address the bylaws change regarding committee service. COMMUNICATIONS & ANNOUNCEMENTS: NEXT MEETING: 1. ACEC/MD Holiday Party (December 6, 2016) Baltimore Museum of Industry, Baltimore. 2. ACEC/MD Executive Committee Meeting (December 15, 2016) ESB, Baltimore. 3. ACEC/MD General Membership Luncheon Meeting (December 15, 2016) ESB, Baltimore. 4. ACEC/MD Political Activism Program (December 15, 2016) ESB, Baltimore. 5. ACEC/MD Legislative Action Day (January 19, 2017) Annapolis 6. CEPAC Luncheon (January 19, 2017) Governor Calvert House, Annapolis. 7. ACEC/MD Executive Committee Meeting (January 19, 2017) Governor Calvert House, Annapolis. 8. 24 th Annual MDQI Conference (January 25-26, 2017) Baltimore Convention Center. 9. MAE Winter Conference (February 9, 2017) Martins West, Baltimore. 10. ACEC/MD Executive Committee Meeting (February 16, 2017) ESB, Baltimore. 11. ACEC/MD General Membership Meeting & Awards Banquet (February 16, 2017) ESB, Baltimore. 12. ACEC/MD Executive Committee Meeting (March 16, 2017) ACEC/MD Office, Baltimore. 9
13. ACEC/MD Executive Committee Meeting (April 20, 2017) ACEC/MD Office, Baltimore. 14. ACEC Annual Convention & Legislative Summit (April 23-26, 2017) Marriott Wardman Park, Washington DC. 15. Governmental Golf Outing (May 1, 2017) Greystone Golf Course, White Hall. 16. ACEC/MD Executive Committee Meeting (May 18, 2017) ACEC/MD Office, Baltimore. 17. ACEC/MD Executive Committee Meeting (June 21, 2017) National Harbor. 18. ACEC/MD 29 th Annual Conference (June 21-23, 2017) National Harbor. There being no further business, the meeting was adjourned at 10:05 A.M. Respectfully submitted, J. Otradovec for C. Fronheiser, Secretary, American Council of Engineering Companies/Maryland 10