Board of Trustees Meeting Minutes Wednesday, October 9, 2013 Washington, DC

Transcription

1 Board of Trustees Meeting Minutes Wednesday, October 9, 2013 Washington, DC Trustees Present: Lawrie Lieberman, Chair Paul Kaleta Don Soderberg Leonard Lafrance, Secretary Gary Kvistad Stephen G. Wells Soraya Tabibi Aguirre John H.O. La Gatta John Worthington Mark Bruce Robert Lewis Roger Wittenberg Gayle Crowell Holger Liepmann Trustees Absent: Marybel Batjer, Co-Vice Chair Nazir Ansari Robb Smith Stephanie Tyler, Co-Vice Chair and Treasurer Keith Burrowes Steve Weber, Past Chair Joe Guild John Wojcik Connie Adair Al Massi Fellows Present: Michael Benjamin Warner North Amy Vernetti Michael Fagen Terry Van Noy Missy Young Tom E. Gallagher Guests and Staff Present: Allison Stephens, Regent, NSHE Board of Regents Stu Van Scoyoc, CEO, Van Scoyoc & Associates Ellie Oppenheim, Senior Vice President for Finance and Administration and COO Russel Kost, Vice President for Development Dawn Coots, Events and Special Projects Coordinator Jessica Moleworth, Van Scoyoc & Associates Dr. Alan Gertler, Vice President for Research Greg Bortolin, Director of Communications and Government Affairs Dr. Braimah Apambire, Director, CIWAS Justin Broglio, Public Information Officer Call to Order: Lawrie Lieberman called the meeting to order at 1:09 p.m. EST; a quorum had convened. Stephen Wells moved, Joseph Guild seconded, and the Board unanimously: Approved the minutes of the July 12, 2013 DRI Foundation Board of Trustees Meeting Executive Committee Lawrie Lieberman, Chair Chair Lieberman reviewed the agenda and business to be accomplished during the meeting. He advised the Board of changes to the schedule citing the impact of the government shutdown on the Foundation reception with Nevada s Congressional delegation. The Chair spoke of the forthcoming DRI Nevada Medal dinner and asked Trustees for their 100% participation in both table support and attendance. He reviewed the July Board meeting in Lake Tahoe and its focus on DRI s work in helping preserve lake clarity. He expressed the Board s appreciation to Trustee Leonard Lafrance and Sara Lafrance for opening their home for the Trustee dinner. Page 1 of 3 Minutes of the October 9, 2013 meeting of the DRI Foundation Board of Trustees (Draft)

2 The Chair discussed the proposed DRI Foundation Non-Discrimination Policy. He advised the Board that it mirrors current DRI and NSHE policy and is required by more grantor foundations to qualify for support. The Executive Committee has reviewed the draft policy and recommends its approval by the full Board. Following discussion, Holger Liepmann moved, Gary Kvisted seconded, and the Board unanimously: Approved the DRI Foundation Non-Discrimination Policy Chair Lieberman reviewed the meeting dates and locations of the DRI Foundation Board for 2014: January 16-17, 2014; Las Vegas June 12-13, 2014; Reno September 18-19, 2014; Incline Village The Chair asked Russ Kost to report on the DRI Foundation s Real Estate Advisory Work Group, chaired by Dan Barnett, and the value of the Yerington property. Russ cited the Work Group, Robert Lewis, Kathy Hone, and Joe Guild, and their collective expertise as extremely beneficial to the Foundation. He shared the results of the Work Group s site visit in Yerington on Aug 1, 2013 and their follow-up meeting (separate report attached). The Executive Committee, following the recommendations of the Work Group, authorized them to 1) appeal the 2014 property tax and attempt to get the assessed value adjusted to the current market; and 2) to identify a broker and list a single lot for sale, with final approval on any potential subject to approval by the entire Board of Trustees of the DRI Foundation. Audit Committee Don Soderberg, Chair Committee Chair Soderberg advised the Board that the DRI Foundation s Audit Committee had reviewed and recommend to the full board, approval of a contract with Kafoury, Armstrong & Co, CPA s, to provide audit and tax return preparation services for FY2014; said contract was approved by the full Board at the July 12, 2013 meeting. The Committee will review the Foundation s tax return prior to its filing and make any appropriate recommended changes. The value of the Yerington property will be adjusted on the DRI Foundation books in the current fiscal year (2014) following any adjustment to the assessed value by the City of Yerington. The Committee recommended acceptance of the audited financials; Stephen Wells moved, John La Gatta seconded, and the Board unanimously: Accepted the auditor s report of the DRI Foundation finances for fiscal year 2013 as performed by Cupit, Milligan, Ogden & Williams, CPA s Board Governance Committee Marybel Batjer, Chair Board Chair Lawrie Lieberman reported on behalf of Committee Chair Marybel Batjer. He reviewed and commended the work of the Committee and the background of the individuals recommended for appointment as Trustees: Mike Benjamin, Chuck Creigh, Ted Dake, Tom Gallagher, Ian Rogoff, and Missy Young. Following discussion on the merits of those prospective Trustees, Leonard Lafrance moved, Roger Wittenberg seconded, and the Board unanimously, Recommended Mike Benjamin, Chuck Creigh, Ted Dake, Tom Gallagher, Ian Rogoff, and Missy Young for an initial term of four years on the Board of Trustees, subject to their acceptance of the terms of service on the DRI Foundation Board of Trustees and the approval of the NSHE Board of Regents Development Committee Joe Guild, Chair Committee Chair Guild cited the board giving goal of $102,000 and the current board giving level of $14,349 (10% of the board; 13% of goal). He encouraged the board to make their own personal unrestricted gifts in support of the DRI Foundation. He cited the $297,000 goal for the 2014 DRI Nevada Medal dinner and asked Page 2 of 3 Minutes of the October 9, 2013 meeting of the DRI Foundation Board of Trustees (Draft)

3 them to each purchase a table for the 2014 DRI Nevada Medal. He thanked Board members Mark Bruce and Tom Gallagher for assisting with DRI Nevada Medal Dinner sponsorship solicitations. Chair Guild reviewed the giving portion of the current Expectations of a Member of the Board of Trustees policy and the historical review that he constructed. There was extensive discussion about the appropriate level of support by individual board members and the focus of the board s fundraising priorities. Chair Guild expects the Board to discuss this over the course of the next two Board meetings and potentially come to a decision at the January 2014 Board meeting. A recommendation was made to refine the current giving policy to authorize the Executive Committee to review and consider restricted giving by Board members as part of the expectation. Following additional discussion regarding the funding priorities of DRI, Tom Gallagher offered to draft a board advisory regarding the Board s responsibility to support the DRI Foundation. Treasurer s Report Stephanie Tyler Senior Vice President Ellie Oppenheim reported on behalf of Treasurer Stephanie Tyler. She presented the financial summary for the first quarter of fiscal year The starting bank balance was $132,829; revenues in the first quarter were $15,049 with expenses of $68,706, resulting in a current ending balance of $79,172. The year has started slowly for revenue generation while some expenses are prepaid early in the year resulting in a decline of cash on hand. The final debt service payment has been made and the line of credit is paid off. Stephen Wells moved, Holger Liepmann seconded, and the Board unanimously: Accepted the Treasurer s Report to the DRI Foundation Board for October 9, 2013 President s Report Dr. Stephen Wells Dr. Stephen Wells cited the support of the DRI Foundation for facilitating the timely completion of the Maxey addition at DRI s Reno campus. The Foundation, through its securitizing an $800,000 loan and gifting the proceeds to DRI, made possible the completion of the microbiology labs and office space. To acknowledge that gift and the payoff of the loan, Dr. Wells and DRI dedicated the conference room in the Maxey Addition as the DRI Foundation Conference Room at the June 14 th DRI Convocation ceremony. He updated the Board on the presentation of the President s Medal to Steamboat Ski Corporation to acknowledge their support of DRI s Storm Peak Laboratory (SPL), a community forum in Steamboat Springs about SPL, and a Ribbon Cutting and Tour of the renovated SPL. Dr. Wells provided an overview of the Board of Regents meeting at which he presented a report on goals achieved among those in DRI s mission statement. He shared DRI s assistance in planning the upcoming Governor s Trade Mission to Israel and previewed a faculty research trip to Ghana in conjunction with DRI s work in Africa; and, he gave a status report on the Center of Excellence and the partnership with IBM. Dr. Wells advised the board that Nevada Medalist Nina Fedoroff gave half of her honorarium back to DRI in support of a GreenPower hydroponics teaching initiative at Wooster High School. Vice President for Development Report Russ Kost The VPD reported on the DRI Nevada Medal Dinner corporate sponsorships and advised the Board of his focus on the table sales and sponsorships and working with the Trustees to solicit table sales. He provided an update on three major gift solicitations of $100,000. Public Comment Regent Allison Stephens thanked the Board for the invitation and opportunity to attend the meeting and for their service. There being no other comments, the meeting adjourned at 3:20 p.m. EST. Page 3 of 3 Minutes of the October 9, 2013 meeting of the DRI Foundation Board of Trustees (Draft)

4 makeorbreakexecution T H E C O R E O F S U C C E S S TM CEO/Owner, The Primavera Company International Speaker / Consultant October 8, 2013 Ad Hoc Real Estate Team Robert Lewis Kathy Hone Joe Guild (Chair) Report: Yerington Property The Ad Hoc Real Estate Team has met three times and has visited the property (August 1, 2013 accompanied by Steve Wells, Ellie Oppenheimer, and Russ Kost). In Yerington we met with the Mayor, the City Manager, the county planning department director, two realtors, Tim Dyhr the head of Nevada Copper (the new mine), the owner of an escrow company and had lunch with a city councilman and a long term local resident. What we learned fits during our site visit fits into the classic good news bad news story. I will start with the bad news: The property does not have a lot of value today. About 10 years ago Yerington was viewed as the next rural town to see rapid growth (expected to follow the huge growth curves of towns like Fernley, Dayton, and Gardnerville/Minden). This growth never happen Yerington is about the same size today as it was 20 years ago. But in anticipation of the expected boom a number of developers bought and developed property in Yerington. There are nearly 400 lots fully developed and ready for home building around Yerington. Since few of them have sold they are offered at very low prices (between $7,000 and $15,000). Today will such development would cost between $20 and $25,000. So until the other lots have sold off the market is saturated there is little demand for housing development. Our property (nearly 50 acres a very large lot in Yerington) was offered for sale by the previous owner at $150,000 with no takers (and we are told it sat on the market for a long time). As a result we assume today that the property is worth no more than $150,000. It is being taxed at a value of $469,314. Action to be taken (approved by DRIF Executive Committee 10/2/2013): 1. In January 2014 the Real Estate Team will appeal the 2014 property tax and attempt to get the assessed value adjusted to the current market (as supported by actual comparable sales hopefully less than $150,000).

5 makeorbreakexecution T H E C O R E O F S U C C E S S TM CEO/Owner, The Primavera Company International Speaker / Consultant 2. The property has two small commercial lots facing Main Street. One of the realtors (Bodenstein) thought we could sell one of the lots. It is less than 1 acre and could potentially be sold for $80,000 (there are commercial sales taking place in this range on Main Street). The Real Estate Team will contact the realtor and put one commercial lot up for sale. If we are able to sell this lot at that price it will cover our carrying costs (weeding and taxes) for more than 5 years. The good news: High potential for the property 1. Yerington actually does have the potential to grow rapidly over the next 5 years. It is all dependent upon the new copper mine. There is a rich high grade copper deposit in Yerington. Nevada Copper has cleared all the regulation hurdles and has opened a new mine in Yerington. They are drilling the core hole for a large underground copper mine (we visited the site and saw the actual drilling). Tim Dyhr from Nevada Copper explained that the underground mine will employ about 300 people creating around 450 jobs in the area (including support services). They also have plans for an open pit mine on the same site. The open pit mine will only go forward if congress approves a development grant for the City of Yerington. This grant is before congress and is supported by Harry Reed and all of Nevada s representatives. Most people expect it to eventually pass. But this is the congress of 2013 and who knows how long it will take. If the legislation passes, everything the mine needs is already approved (environmental, etc.) and they will start the open pit mine. This will add another 500 employees plus at least another 200 support jobs. The total impact on jobs with both the underground and open pit mines operating will be around 1,100 jobs. Yerington has a population of 3,800 so this is a game changer for the town. Demand for housing will rise dramatically which will affect the value of the DRI property. 2. In addition to the mine there is a meat packing plant that may open (everything is approved regulatorily but they are still raising capital so it is not as certain as the mine which is largely funded). They are talking about another 400 jobs. 3. Everybody we talked to in Yerington said our property s location is outstanding. It is better than the other 400 developed lots. We are in the city limits with city water. It is on the side of town near the mine, it is near the city center and it is a nice part of town sounded by farms on one side and a golf course (defunct today but could get redeveloped).

6 makeorbreakexecution T H E C O R E O F S U C C E S S TM CEO/Owner, The Primavera Company International Speaker / Consultant Action to be taken (approved by DRIF Executive Committee 10/2/2013): 1. Contact the realtor (Bodenstein). Let him know that we are interested in selling the rest of the property (aside from the one commercial lot) but do not want to put it on the market until we know more about the mine potential. However we want him to put a sign on the property indicating that the property is available. He can then contact the committee if anything comes up and we can consider our option at that time. My best,