Board Executive Committee Meeting FRIDAY, AUGUST 22,

Transcription

1 E N T E R P R I S E F L O R I D A S Board Executive Committee Meeting FRIDAY, AUGUST 22,

2 Enterprise Florida Executive Committee Meeting Westin Fort Lauderdale Beach Resort Oceanside II 8:00 a.m. 9:00 a.m. (EST) August 22, 2017 CALL-IN NUMBER: (800) ACCESS CODE: # Executive Committee Agenda KEY: (I) = Information (D) = Discussion (A) = Action I. Welcome & Opening Statement Stan Connally, Vice-Chairman (I) II. Approval of Minutes dated July 6, 2017 and July 19, 2017 (Tab 1) Stan Connally, Vice Chairman (A) III. Finance & Compensation Committee Report (Tab 2) Holly Borgmann (I) IV. Audit Committee Report Julius Davis (I) V. Leader Liaison Reports Stan Connally (I) Business Development Brett Couch Marketing Vice Chair, Marva Johnson Tourism Development Danny Gaekwad Sports Development Angela Suggs International Trade & Development Brian Curtin Strategic Partnership & Policy Joe York Space Florida Belinda Keiser Military & Defense Amy Gowder VI. New Business VII. Proposed Consent Agenda Items (Tab 3) Stan Connally, Vice-Chairman (D,A) a. Board Investor Renewals b. New Board Appointees c. VISIT Florida Board Recommendations (Upon Receipt) VIII. Public Comment Stan Connally, Vice-Chairman (I) IX. Adjourn Stan Connally, Vice-Chairman (A) Save the Dates: November 29-30, 2017 Jacksonville, Florida Enterprise Florida Board Executive Committee Meeting August, 22, 2017

3 Minutes of a Special Meeting of the EFI Board Executive Committee Minutes of a Special Meeting of the Executive Committee of Enterprise Florida A special meeting of the Enterprise Florida, Inc. Executive Committee was held via conference call on July 6, Members on the Call Holly Borgmann Stan Connally Brett Couch Brian Curtin Julius Davis Danny Gaekwad Jeff Hendry Eric Silagy Joe York Staff on the Call Scott Fennell Mike Grissom Joe Hice Ken Lawson Katie Richardson Robert Schlotman Tim Vanderhoof Agenda I. Welcome & Opening Statement Statement of Public Notice II. Approval of Minutes III. Review of Executive Committee Charter IV. Enterprise Florida Proposed Budget for Fiscal Year 17/18 V. VISIT FLORIDA Proposed Budget for Fiscal Year 17/18 V. Adjourn Welcome and Opening Statement Vice Chairman Stan Connally called the meeting to order at 11:00 a.m. Katie Richardson called the roll and there was a quorum present. She also 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 listen. Contact Nate Edwards with any media questions. Vice Chair Connally thanked everyone for being on the call and explained that the purpose was to approve the fiscal year 17/18 budgets for EFI and VISIT FLORIDA. Approval of Minutes A motion to approve the minutes from June 1, 2017 was made by Brett Couch and seconded by Julius Davis. The motion carried. Enterprise Florida Board Executive Committee Meeting Minutes July 19,

4 Minutes of a Special Meeting of the EFI Board Executive Committee Review of Executive Committee Charter Vice Chair Connally explained that the charter lays out the roles and responsibilities of the committee. He asked for input on ways to strengthen the charter and enhance the clarity of the purpose and mission. Thoughts and ideas can be sent to him, Mike Grissom or Scott Fennell. Enterprise Florida Proposed Budget for Fiscal Year 2018 There was a Finance and Compensation Committee call earlier in the day where the 2017/18 budget was presented and approved. EFI received a state appropriation of $16M which is a reduction in the amount received in the prior fiscal year. Vice Chair Connally explained that they didn t want to wait for the full board meeting in August because of this change. He added that the EFI team is working hard to operate within those means while maintaining effectiveness. He then turned the discussion over to the Finance and Compensation Committee chair Holly Borgmann. Holly thanked the team for putting together the budget and trying to make do with less. It is a conservative budget using zero-based budgeting. Private investment contributions are about $1M and $500,000 for Team Florida. Revenues include internal events and trade missions. Payroll includes the salaries of four open positions and the accrual for bonuses. Marketing is split in two between $2.9M for Team Florida marketing and general marketing for $723,000. Controller Robert Schlotman explained that instead of taking the appropriation and working up a budget, he used a zero-based approach and had the unit SVPs provide the events, sponsorships and travel they wanted to participate in to achieve their goals and then backed into the revenues accordingly. The revenues only reflect what is anticipated for the year. There is no carry forward from prior years. He added that he expects an excess reserve that is not reflected in the budget. Marketing had an actual $9.1M spend in fiscal year 16/17 which will be $2.9M for the upcoming year. Joe Hice s team has put a lot of money toward branding and promotional materials which can be used for the new fiscal year. The expense listed as Prof Fees Intl is for the foreign offices and comes out of the $6.6M state appropriation specifically for international programs. The Program Cost International item is for events and programs. Eric Silagy commended Joe and his team. The creative they have done in the past year will have to carry forward. Nothing will be spent for new creative. They will recycle what they have for next year. There will be a reduction in the number of websites they advertise on a 50% cut which will reduce the reach. Funding for the rural co-op program will be cut by 25%, and international marketing will be cut by 80%. He is comfortable moving ahead, but the campaign won t be as robust. Brett Couch commented that if the majority of money is spent on tourism and less on business, then companies will think of Florida as a state for vacations. Mike Grissom will keep a close watch on the budget. Eric advised to look for underruns and carry forward that can be put toward marketing. Mike Grissom will keep a close watch on the budget. Holly Borgmann added that bonus pay comes out of private contributions. Vice Chair Connally stated that the private investment contributions are budgeted conservatively. He advised the staff to stay on top of it. Mike and Katie Richardson are working on that and plan on an aggressive fundraising schedule. Mike confirmed that EFI will meet its statutory match requirement. Julius Davis asked about the line item for SSBCI that showed no budgeted amount. Scott Fennell clarified that the decision was made to maintain that program at EFI rather than transition it to the state. The program fits in the private sector world. EFI assists in the management of the program but doesn t fund it and doesn t receive funds to administer it. The staffing cost is part of EFI general operations. Enterprise Florida Board Executive Committee Meeting Minutes July 19,

5 Minutes of a Special Meeting of the EFI Board Executive Committee This activity is part of the EFI mission to grow small businesses that don t have access to capital. Vice Chair Connally stated that the budget will be put before the full board on August 22. Danny Gaekwad made a motion to approve the proposed 17/18 budget. Joe York seconded. The motion carried. VISIT FLORIDA Proposed Budget for Fiscal Year 2018 Vice Chair Connally explained that the VISIT FLORIDA budget technically needs to be approved by the EFI board. The VISIT FLORIDA finance committee and full board have already approved it. Ken Lawson highlighted that they have decreased sponsorships by $11M and reduced the overhead by 10% of the budget. This year they have put the most money ever into marketing focusing on the key metrics of ROI for their domestic and international markets. They are driven to ensure a good return on investment and transparency in what they do. Of the $76M appropriated by the legislature, $75M is for tourism marketing and $1M for the Florida is for Veterans program. They expect to bring in a creative agency. Salaries and benefits are budgeted at $13.2M. The 16/17 projected budget of $12.6 reflects 20 vacancies. The 17/18 budget will include filling all those vacancies. They plan to hire staff and restructure. They are evaluating their performance pay model and will hire a third party to make recommendations. The capital budget consists of $900,000 with projects for IT, visitor services and lobby renovation. Danny Gaekwad made a motion to approve the proposed VISIT FLORIDA 17/18 budget. Brett Couch seconded. The motion carried. There were no public comments. Adjournment Having concluded committee matters Vice Chair Connally adjourned the meeting at 11:30 a.m. Enterprise Florida Board Executive Committee Meeting Minutes July 19,

6 Minutes of a Special Meeting of the EFI Board Executive Committee Minutes of a Special Meeting of the Executive Committee of Enterprise Florida A special meeting of the Enterprise Florida, Inc. Executive Committee was held via conference call on July 19, Members on the Call Alan Becker Stan Connally Brett Couch Brian Curtin Danny Gaekwad Amy Gowder Jeff Hendry Belinda Keiser Governor Rick Scott Eric Silagy Staff on the Call Nate Edwards Mike Grissom Katie Richardson Welcome and Call to Order Katie Richardson called the roll and with a quorum present, Vice Chairman Stan Connally called the meeting to order at 4:30 p.m. The call was publically noticed. Statement of Public Notice Katie Richardson 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 listen. New Business Vice Chair Connally thanked everyone for being on the call and explained the purpose of the meeting which was to bring forward a recommendation for filling the President and CEO position. If the committee is in agreement, it will be brought to the full board for approval. Governor Scott expressed his appreciation for Mike who joined his campaign in Mike stepped up at EFI and does a great job despite having come in at a time when there were many issues. He accomplished a lot in that timeframe. Vice Chair Connally also recognized Mike Grissom for his hard work as interim saying that he had done a great job keeping the team motivated and moving forward. The EFI team has performed very well under Mike s leadership. Mike added that it was easy working with leaders like the Governor and Vice Chair Connally. Vice Chair Connally explained that Peter Antonacci expressed an interest in the position to the Governor s office who directed Pete to him as vice chair. A bio was sent to the committee members prior to the call. Pete is a Florida native with over three decades of service to the state in state government, local activities, finance and law most recently as Executive Director of the South Florida Water Management District. The district is roughly a 16 county region with 1,600 people and approximately an $800M budget. He has a great ability to get up to speed quickly with new information. Prior to that, he served as the Governor s general counsel from 2013 to He has spent time with leaders from EFI Enterprise Florida Board Executive Committee Meeting Minutes July 19,

7 Minutes of a Special Meeting of the EFI Board Executive Committee and DEO in that role making sure they were fulfilling their obligations and creating jobs. He is familiar with both organizations as well as legal and compliance requirements. Governor Scott remarked that Peter Antonacci had a key role as his general counsel and appreciated his advice on where things were going and helpful in dealing with issues that the Governor had never dealt with before. In his water management role he had to work through fights over the Everglades bringing people together and negotiating good deals. He was also a consensus builder in the attorney general s office. Governor Scott completely supports Vice Chair Connally s recommendation. Peter Antonacci will do a good job as President and CEO. Vice Chair Connally continued that he believes Pete to be someone who knows and understands the state and state government. He builds consensus and partnerships and believes in local engagement. EFI represents the state on economic development which doesn t happen without local partners. He is a quick study and will lean on the talent at EFI. He has the experience with DEO and EFI and will work to push forward the new Florida Job Growth Grant Fund. Vice Chair Connally has confidence in Pete s ability to do this job and would like to move forward quickly. Eric Silagy commented that he has worked with Peter Antonacci and that he is a strong choice with relevant experience and a leader who will step up. Brian Curtin asked if Peter has experience with the legislature. Vice Chair Connally answered that Peter served under one attorney general and in the Governor s office and had routine interactions with the legislative process. He has relevant experience will lean on Mike Grissom. Belinda Keiser added that she has had the opportunity to work with Peter and he is a thoughtful and effective leader. Alan Becker has also worked with Pete and describes him as smart, engaged and will do an outstanding job. He also thanked Mike for stepping up and doing a phenomenal job in the interim. Vice Chair Connally invited public comment. There was none. Alan Becker offered a motion to approve the nomination of Peter Antonacci as EFI President and CEO. Belinda Keiser seconded. The motion carried. Vice Chair Connally explained that the executive committee recommendation will be brought to the full board for approval. A call will be scheduled as quickly as possible. Any media with questions should contact Nate Edwards. Vice Chair Connally thanked everyone for being on the call and all will work to make a smooth transition. Adjournment Having concluded committee matters Vice Chair Connally adjourned the meeting at 4:47 p.m. Enterprise Florida Board Executive Committee Meeting Minutes July 19,

8 ENTERPRISE FLORIDA, INC. Operations Goals FISCAL YEAR

9 GOALS WITH STANDARD PER UNIT EFI Operations Goals FY Unit Standard Results Proposed Standard Facilitate job growth EXEC 22,000 22,332 22,000 Secure private funding to match FY appropriation (in $ millions) 1 EXEC $28.45 $ $20.7 Full Compliance with state funding agreement EXEC 100% 100% 100% Board Member Retention EXEC 85% 97% 85% Staff satisfaction survey for: IT services and resources; HR services; Office services ADM 90% 96% 90% Deadlines achieved x% of the time for reports and financial obligations ADM 95% 100% 100% Established Projects BD Project leads referred to Partners BD Project-related capital investment (in $ millions) BD $1,800 $2,830 $2,000 Client consultations in target industry sectors 3 ITD 1,900 2,214 1,900 Contracted and expected export sales from target sectors over the FY (in $ millions) ITD $600 $ $600 Actual export sales as a share of total export sales attributable to the activities conducted by Enterprises Florida ITD 10% 9% 10% Total Impressions over all media of Florida s business brand and EFI MC 250,000, ,354, ,000,000 Positive messages across all news & trade media as a direct result of EFI efforts MC 700 7, Website traffic number of hits across all EFI websites MC 1,500,000 1,318,541 1,500,000 Assist in Florida regions with bidding and hosting 15 new positive ROI Florida Sports projects/events per quarter FS Private funding secured includes private sector contributions and additional sources of support as defined in Florida Statutes and Florida Statutes (9). 2 This number is tentative pending the issuance of Visit Florida financial statements to confirm full audited value of cooperative advertising dollars, which are included in EFI s private sector match obligation per section (2)(b)(6), Florida Statutes. 3 Unique consultations duplicate consultations with the same client are eliminated from the number reported

10 Standard Results Proposed Standard EFI Operations Goals FY Unit Produce ROI from three grant programs of at least $150:$1 in economic impact to the State of Florida. 4 FS $150:1 $196:1 $75:1 5 Produce Sports Tourism jobs from Grant related and Amateur Sports events based on the State of Florida s standard of 1 job per every 85 visitors. FS 4,000 9,674 4,000 Administer Defense Support Task Force: facilitate compliance with state, federal and EFI guidelines DEF 100% 100% 100% This Operations and Performance Plan was prepared for management of EFI by the Chief Operating Officer with additional support from EFI s Administration Division. Recommended by: Approved by Enterprise Florida Board of Directors on 2017 Stan Connally, Vice Chair 4 This ratio has been reduced to 75:1 for FY The Small Market grants are awarded on a 75:1 requirement, and other grants (SICA) are not awarded on this basis and rarely meet the threshold.

11 Budget Actual* Revenue: (Proposed) Revenue State Funds $ 16,000,000 $ 23,500,000 $ 23,500,000 Revenue State Funds DSTF 2,000,000 2,000,000 2,867,781 Event Revenue 958,000 1,000,000 1,105,866 Revenue In Kind Donations Revenue Management Fees 211, , ,000 Revenue Other Income 15, , ,276 Private Investment Contributions 1,500,000 2,400,000 1,500,000 Expenses: PROPOSED BUDGET: FY TOTAL REVENUE $ 20,684,000 $ 30,000,000 $ 29,737,923 Payroll Expense 5,009,499 6,925,000 6,139,626 Payroll Tax Expense 335,505 Payroll Other Empl Exp 1,133,624 Program Cost Defense Grants 2,000,000 2,000,000 4,099,072 Program Cost RSM 375,000 Program Cost SSBCI Program costs International 2,330,000 2,000,000 1,327,401 Program Costs Marketing 2,900,000 8,500,000 9,152,051 Program Costs BD 316, , ,338 Prof Fees Intl 2,023,900 2,050,000 1,688,297 Professional Fees 497, , ,877 GandA Insurance 107, ,000 74,438 GandA Board Expense 140, , ,465 GandA Depreciation Expense 172, , ,532 GandA Rent 969,256 1,200,000 1,145,228 GandA Expense corp OH 410, , ,000 GandA Expense Dept 563, , ,316 GandA Marketing and Promotion 723, , ,939 GandA Meetings 114, ,000 56,357 GandA Travel and Meals 212, , ,142 Capital Outlays 340, ,000 TOTAL EXPENSE $ 20,674,617 $ 26,456,000 $ 27,128,079 Change in Net Assets $ 9,383 $ 3,544,000 $ 2,609,844 *Actual results for are estimates until fiscal year end financial results are audited.

12 Investor Membership Renewals ADT Holly Borgmann Director, Government Affairs Embraer Gary Spulak President Harris Corporation Sheldon Fox President of DoD Programs Business Unit Publix Super Markets Jeff Chamberlain Vice President, Real Estate Enterprise Florida Board of Directors Meeting August 22, 2017

13 EFI Statutory Board Appointment Jimmy Patronis Chief Financial Officer, State of Florida Jimmy Patronis is a native Floridian born and raised in Panama City. He earned his associate degree in restaurant management from Gulf Coast Community College and a bachelor s degree in political science from Florida State University. He is a partner in a family-owned seafood restaurant called Captain Anderson s that will celebrate its 50th anniversary in His public service career began with experience as an intern in the Florida Senate and the United Kingdom s House of Commons. Following his college graduation, Governor Lawton Chiles appointed him to the Florida Elections Commission, and he was later reappointed by Governor Jeb Bush. He served in the Florida House of Representatives from 2006 to 2014, representing his hometown region in the Florida Panhandle. He was appointed to serve on Florida s Public Service Commission, as well as the Constitution Revision Commission, which meets once every twenty years to propose changes to the state constitution. He is recognized for outstanding leadership in his hometown of Panama City and throughout Florida. Committed to active civic engagement and business development, he has chaired the Greater Panama City Beach Chamber of Commerce s Economic Development Council, served on the board of the Bay County Economic Development Alliance, the Salvation Army Advisory Board, the Bay County Chapter of the Florida Restaurant and Lodging Association, and as national president for the Florida Vocational Industrial Clubs of America. He is a former trustee of the Gulf Coast Medical Center, and former director of the Bay Medical Center s Foundation and Gulf Coast Community College Foundation Board. He was instrumental in the establishment of the Northwest Florida Beaches International Airport in Panama City and has served as chairman and a board member of Bay County- Panama City International Airport and Industrial District. He and wife Katie are proud parents to two sons, Jimmy Theo III and John Michael. Enterprise Florida Board of Directors Meeting August 22, 2017

14 EFI Board Appointment Representative Jim Boyd Florida House of Representatives Profession - Partner/Shareholder at Boyd Insurance Group, Bradenton, FL State Representative, Florida House of Representatives, District 71 Current House Committee Assignments - Commerce Committee, Chair Prior House Committee Assignments for Term - Ways & Means Committee, Chair; Commerce Committee; Rules & Policy Committee Local Public Service - Palmetto City Council, Councilman, Vice-Mayor and Mayor Affiliations - Enterprise Florida Board of Directors; First America Bank, Board of Directors, Executive Committee, Chair; Florida Association of Insurance Agents, board member, , current member; Manatee County Independent Insurance Agents Association, current member; Manatee Memorial Hospital Board of Governors Personal - Born October 22, 1956, Bradenton, Florida; Wife: Sandy Boyd; Children: Austin and Ansley; Religion: Christian; Recreational interests: golf, quail hunting, reading, spending time in North Carolina with family, travel Education - Manatee Community College, A.A., 1976; Florida State University, B.S., 1978 Enterprise Florida Board of Directors Meeting August 22, 2017

15 EFI Board Appointment Kenneth Kahn President, LRP Publications Kenneth F. Kahn is the President of LRP Publications, a broad-based media company serving business and education professionals. Specializing in the fields of education administration, education law, education technology, federal employment, human resources, workers' compensation and disability, the company publishes hundreds of books, pamphlets, newsletters, videos and online resources. Additionally, LRP publishes two industry-leading magazines: Human Resources Executive and Risk & Insurance, plus delivers top-quality training and professional development with elearning, conferences and tradeshows including the Future of Education Technology (FETC), Ergonomics & ErgoExpo, Health & Benefits Leadership, HR in Hospitality, HR Technology, Recruiting Trends and Workers Compensation and Disability. Launched in 1977, LRP Publications now employs more than 400 employees in its South Florida, Pennsylvania, Tallahassee and Washington, D.C. offices. Headquartered in Palm Beach County since 1996, the company has more than $60 million in annual revenue. Kahn has received honors from the Business Development Board of Palm Beach County s Economic Development Leadership Award for his instrumental role in launching Behind the Gates and for initiating a second new project while serving as the co chair of the Branding and Marketing Education Taskforce. He is credited with creating the first ever comprehensive marketing strategy of its kind not only in Palm Beach County but in the state of Florida. With the creation of a new website and brochures, CEOs new to the area are now able to easily navigate school options for their children in elementary, middle and high schools. Kahn has received numerous honors including Cornell University s Groat Alumni Award, Northern Palm Beach County Chamber of Commerce s Community Leader of the Year Award, and the Sun Sentinel Co. s Excalibur Award. He is civically involved on several boards including Cornell University School of Industrial and Labor Relations, Enterprise Florida, Max Planck Florida Foundation, and the Alliance for Eating Disorder Awareness. Kahn also serves on the executive committees of the Business Development Board of Palm Beach County, Economic Council of Palm Beach County and Kravis Center Corporate Partners, plus is an active member of the Florida Council of 100. He is the former chairman of the Palm Beach County Education Commission. Kahn was born in Sioux City, Iowa and raised in New York City. Graduating from Cornell University with his Bachelor s degree in 1969, he obtained his law degree from Harvard Law School. Kahn has five children and currently resides in Palm Beach Gardens, Florida with his wife and two daughters. Enterprise Florida Board of Directors Meeting August 22, 2017

16 EFI Board Representative Crystal Stiles Director of Florida Power & Light Company s Office of Economic Development and Chair of the Florida Economic Development Council Crystal Stiles is the Director of Economic Development for Florida Power & Light Company (FPL). Crystal joined FPL in 2012 and she has served the company in various roles including Manager and Project Manager of Economic Development. She has a decade-long career in economic development and previously served as the co-executive director for the Business Development Board of Martin County. Since joining FPL, Crystal continues to lead and advance Florida s statewide economic development strategy and the visibility of the company's economic development program, both within Florida and nationwide. The program has been recognized for three consecutive years on Site Selection Magazine's list of Top Ten Utilities in Economic Development ( ). Under Crystal s leadership, FPL was named for the first time as one of The Best Utilities in Economic Development in the Southeast by Southern Business & Development Magazine. FPL was one of only five utilities bestowed with this recognition for its region. Most recently, Crystal received national honors as one of Development Counsellors International (DCI) s 40 under 40 in economic development. Crystal and her team enhance and support economic development efforts throughout Florida with incentive rates for growing businesses, capacity building community programs and resources to local and regional economic development organizations. The team supports business development projects throughout the state and is building a strong effort to attract data center investment, in addition to companies that fall within Florida s 11 targeted industry sectors. Crystal currently serves as chair for the Florida Economic Development Council (FEDC), as a board member for the Florida delegation of the Southeast U.S./Japan Association (SEUS/Japan) and the Utility Economic Development Association (UEDA), and serves as board chair for United Way of Martin County. Crystal holds a bachelor of arts in communication from Mary Baldwin College in Staunton, Virginia and resides in Palm City, FL. Enterprise Florida Board of Directors Meeting August 22, 2017

17 VISIT FLORIDA 2540 W. Executive Center Circle Suite 200 Tallahassee, Florida T (850) MEMORANDUM TO: Peter Antonacci, President and CEO, Enterprise Florida, Inc. FROM: Ken Lawson, President/CEO, VISITFLORIDA SUBJECT: VISIT FLORIDA Board of Directors Appointment DATE: August 2017 The following name is being presented to Enterprise Florida, Inc. for appointment to serve on the VISIT FLORIDA board of directors. The Official Tourism Marketing Corporation for the State of Florida