President Kinnaman opened the meeting at 9:23 a.m.

The minutes of the February 3, 2000 Executive Committee Meeting, the February 4, 2000 Board Meeting, and the May 6, 2000 Executive Committee Meeting were already approved by the Board via e-mail.

The consent agenda consisted of the following: Approval of the Minutes (Tab 1); Finance (Tab 2); President's Report (Tab 3); Immediate Past-President's Report (Tab 4); President-Elect's Report (Tab 5); Executive Vice President's Report (Tab 6); Vice President for Educational Programs (Tab 7); Vice President for Information Services (Tab 8); Vice President for Professional Affairs (Tab 9); and Reports of the Regions (Tab 10).

President Kinnaman added the consideration of a strategic alliance with the Association of University Directors of Estates (AUDE) to the consent agenda.

Motion (Besspiata): To accept the consent agenda as provided in the Board book. Seconded (Kish) The motion passed unanimously.

Recess

The Board reconvened the meeting at 10:36 a.m.

FINANCE - FY 1999-2000 YEAR END CLOSE

Lander Medlin provided a financial presentation on the year-end close statements and audit reports. APPA successfully closed the books with a $314,000 surplus. Perhaps, even more importantly, APPA was able to place a greater percentage of this final surplus balance in cash reserves, thereby achieving one-third of its targeted goal in just two short years.

APPA continues to do extremely well with net revenue against budget. Communications are on track. In terms of the annual meeting, there will be a shortfall in revenue. Originally, APPA projected $5100 in revenue from the annual meeting; however, registration is about 100 below its projections. Lander expressed some concern regarding the low ratio between attendees and exhibitors (almost 1:1).

Motion (Reynolds): To approve the fiscal year-end 1999-2000 audit report as provided in the Board book. Seconded (Kish). The motion was unanimously approved.

Lander reported that the other educational programs such as the Institute for Facilities Management should perform very well. The first PLC Academy incurred a financial loss; however, adjustments to the registration fee and food/beverage costs should minimize that situation in the future. APPA has negotiated good long-term contracts with Marriott. In addition, APPA will draw some of its peer associations to future the PLC Academies.

Earl Smith commented that the pricing breakdown for the PLC was very good and presented in a manner that was easy for business officers to understand.

Gary Reynolds requested that the Board defer discussions of the Annual Meeting until later in the meeting. The Board agreed to defer the discussion.

Further discussion ensued regarding a request for a retroactive (1999-2000 related) staff bonus amount of $30,000. There was some concern expressed about the content of the action item as presented in the Board book which seemed to emphasize the bottom line financial measures as the only justification for the requested bonus. These points were well taken and will be addressed in any future requests for staff bonuses.

Motion (Reynolds): To approve a $30,000 cash bonus amount for the staff to be taken from the 1999-2000 year-end surplus. Seconded (Cox). The motion passed (approved with one vote in opposition).

Appointment of Two At-Large Members
After distributing the revised proposal, President Kinnaman read the section of the by-laws related to At-Large Board members. APPA's Executive Committee may appoint up to two at large members to the Board and will do so; nonetheless, President Kinnaman wanted the Board to fully discuss the decision. President Kinnaman highlighted the resumes of the two proposed At-Large members - Eric Denna and Rod Rose - which were included in the Board book. President Kinnaman felt that Eric Denna would bring tremendous expertise in information technology and technology issues related to higher education to the Board, and Rod Rose would bring great planning expertise. Rod is also the author of one of APPA's recent publications, Charting a Course for Renewal.

Based upon his previous experience, Gary Reynolds stated that he saw significant value from the presence of At-Large members on the Board. He was impressed by the way previous At-Large members often helped the Board to focus or refocus, as well as their contributions of individual expertise. Eric Denna is at BYU and a colleague of Doug Christensen's. Eric has an excellent perspective on how information technology fits into higher education. Rod Rose is a member of SCUP, but is also very familiar with APPA. APPA brought in these two individuals to the Futures Planning/Scenario Session to broaden APPA's perspective. They understand APPA's mission and make up.

Eric Denna has also participated in the PLC Academy where he gave an information technology presentation in Track Three. His presentation was well received.

John Harrod commented that these men would bring a great global perspective to APPA's discussion. John also praised the work of SCUP (Society of College & University Planners) of which Rod Rose is an active member.

Chris Christofferson expressed his personal reservations over approving an At-Large member [Rod Rose} to the Board who may be actively soliciting work from APPA members as a consultant.

Jack Colby explained how impressed he was with the use of At-Large members based upon his assignment on NACUBO Awards and Recognition Committee. He stated his full support for the proposed action.

President Kinnaman felt that so much could be enhanced through collaborative work with groups such as SCUP, NACUBO, and Educause. They bring a rich perspective to the table. Also, they will raise issues that higher education is facing. She thinks the Board will be very pleased.

John Harrod stated they serve on the same cycle as new Board members (July 2000 through July 2002).

APPA/AUDE Draft Strategic Alliance Agreement Margaret Kinnaman, APPA President, and Lander Medlin, Executive Vice President (July, 2000 Board Book - Tabs 3 and 18)

Lander Medlin summarized APPA's strategic alliances of which there are seven (ACUHO-I, CMD Group, CSI, DOE/Rebuild America, PGMS, and Vanderweil Facility Advisors). The importance of a formalized agreement with a strategic partner is that it provides depth and breadth across the profession and thereby, enhances the value of APPA's services to its members. RMS Means is APPA's one for profit strategic alliance partner.

President Kinnaman added that given APPA's vision to "become a global partner in learning," an international presence is essential. She described her involvement with the Association of University Directors of Estates (AUDE) and some of the potential collaborative projects. AUDE and the UK have agreed to submit a S.A.M. case study from the AUDE perspective. One of APPA's Strategic Plan's desired outcomes is collaborative relationships. The purpose is to take what is an informal process and make it more formal. There is the potential that APPA might some day have a new region that includes the United Kingdom.

President Kinnaman asked Robert Kelly to explain the growing relationship between AUDE and AAPPA. Robert went to the United Kingdom on a study tour. He found there to be good interest with APPA among the AUDE membership.

While AUDE has not yet seen the draft agreement, the timing of a strategic alliance is probably about a year.

President Kinnaman said that AUDE is equally enthusiastic and wants to formalize the relationship more fully.

Robert Kelly recommended that APPA move quickly to establish a strategic alliance because there are European organizations that are moving to recruit groups such as AUDE.

The consensus of the Board was to move forward with a draft agreement seeking AUDE's input and final approval.

A BPR was presented that would create a task force along with CSHEMA and EPA to address the compliance and enforcement requirements related to safety and environmental issues. The Northeast Region has had EPA officials visit, evaluate and fine a number of institutions. APPA wants to create something to help its members work with EPA. APPA wants them to come back with some deliverables for APPA members.

The issues are clean air, clean water, industrial hygiene, hazmat, underground storage, and record keeping/documentation.

John Harrod feels that this task force is a way to help APPA members more quickly sort out and legitimately deal with the huge array of rules and regulations.

Lander Medlin has talked with EPA representatives regarding the agency's willingness to collaborate. One problem is that the federal headquarters office does not determine for any and all regions how the regulations will be interpreted and therefore, enforced. For example, Region 1 (Northeast) is the most stringent. Earl Smith attested to this.

EPA has also given a number of presentations to college and university presidents related to environmental compliance issues. There are press releases from EPA regarding the institutions that EPA has fined. The loss of funds and the negative publicity are a reality. This problem is not going away in the foreseeable future.

Among some in EPA, there is a mentality that the universities have not taken these issues seriously. They perceive higher education as having an attitude that they are above the law. As they see it, higher education is slow to comply. Currently, the relationship between EPA and higher education is not good. APPA needs to work collaboratively.

Joe Kish felt APPA needed to proceed quickly with this idea and be very proactive.

John Harrod reitereated that this gives APPA an opportunity to work collaboratively with EPA and be educated by them and vice versa.

Jim Roberts said that APPA can provide a venue via its annual meeting and institutes where EPA could meet with and educate our members. APPA can consolidate the information that EPA brings to our meetings, create a white paper and put it on the APPA web site. APPA can help to protect its members by providing information on what EPA is looking for and what institutions need to do to meet compliance.

In addition, ServiceMaster has indicated a willingness to provide a venue for meetings of the proposed task force.

It was stressed that if APPA prepared a framework, it can be adopted to fit the needs of APPA's international members (such as AAPPA and Canadian members). APPA needs to be multicultural/multinational in its perspective.

In terms of individuals to serve on the task force, Bob Getz has volunteered to help. He has a relative who is an EPA director. Bob also posted a note on APPA's List/Serve soliciting members who are interested in meeting at the Annual Meeting.

Chris Christofferson suggested Gary Kent be part of the task force.

John Harrod agreed to take the lead on soliciting names and ultimately making appointment to the task force.

Motion (Reynolds): To approve the EPA/APPA/CSHEMA Task Force BPR. Seconded (Kish). The motion passed unanimously.

The Professional Affairs Committee is about to roll out the new Award for Excellence (AFE) criteria. A tremendous effort by the APPA staff enabled this project to be produced in time for the Annual Meeting. It will be highlighted at the leadership breakfast. The committee will begin looking at the submissions on the new cycle.

APPA will begin to assemble FMEPs around the new criteria, develop training materials, and training for the teams. Things are going well and APPA hopes to transition later this year to the new model.

The Awards and Recognition Committee hopes to develop, finalize, and implement the new Innovative Practices Awards in the coming year. This works well with APPA's goals of recognizing work on campuses. Also, APPA has an opportunity to publicize on the CHEMA Effective Practices website. One of APPA's business partners has offered to provide the cash awards for the first five winners.

Jack Colby noted that the Board endorsed Duke University and the University of Southern California for the Award for Excellence. Jack reported that there has been a tremendous response from both of the institutions to receive the award.

Jack Colby explained the rationale for the BPR for continuing the meeting of the Awards and Recognition Committee on a regular basis. They feel they must meet together once a year. The committee has set an April meeting date so that it can deliver the award nominations to the Board before the Annual Meeting. He has requested these monies on an on-going basis as part of the budget.

Jack thinks that funding of the committee could be a potential item for corporate support.

Copies of the awards inventory will be made available at the July 19th Board meeting.

The Board requested that it be put on the web when the final revised awards inventory is completed which includes the new criteria.

Motion (Reynolds): To fund an annual meeting of the Awards and Recognition Committee on an on-going basis in the APPA budget. Seconded (Kish). The motion passed unanimously.

Recess for lunch

President Kinnaman reconvened the Board meeting.

CSI has very few strategic alliances, and selectively partners with groups that share their common goals. CSI's core purpose is to improve on the sustainable, built environment. They have a very large, building products show, and provide continuing education and technical information to their members. CSI sees APPA as one of the most strategic stewards and therefore, an important strategic partner. CSI has six strategic alliances. APPA is the newest; however, CSI feels that it has gone farther and fastest with APPA.

Jim Chaney also talked about the Emergent Building Technologies Conference that is focused on integrating technology into buildings and how we look at buildings in this way. As lead organizations, APPA and CSI have brought in much larger organizations such as The American Institute of Architects (AIA).

The Facilities Management Institute was very successful and was oversubscribed. It was the first time on line registration was available. There were some problems; however, those problems are being addressed and resolved. To maintain an optimum learning environment, the number of registrations needs to be capped at 480 - 490.

The PLC Academy met in Rancho Mirage, CA. This was the first delivery of the new model with three tracks at one location. All the altruistic goals were met. Registration fees were reduced and thus, it didn't fair well financially. The attendance goal was 120 and there were 100 attendees. At the future PLC Academies, APPA will most likely raise the registration fee by approximately $100. The brochure for the PLC Academy at Harbor Bay, Florida in January 2001is ready for distribution. It also looks like NACUBO will partner with APPA to do Track 3. ACUTA is very impressed and is thinking of partnering with us also. APPA will add an extra session/track offering if the demand dictates it.

Gary Reynolds talked about the need to look at how APPA chooses the location for the Annual Meeting. The current process is rotation based from region to region. The region provides a list of three cities where it would like the Annual Meeting held. APPA staff visits the cities, meets with hotel staff, and reports back to the Educational Programs Committee. The Committee recommends a site to the Board who approves the decision. There are several goals in the rotation model including the reducing of costs for some people by locating in close proximity and improving the relationship between the Board and the regions. The current process tries to insure there is proper review through the staff.

As APPA is moving towards the one roof/one hotel delivery model, there are some ramifications and nuances to be considered. The number one goal is to get APPA members to the Annual Meeting. If APPA doesn't succeed in getting its members to the meeting, they won't receive the benefits, and it does effect the bottom line. However, bottom line and member satisfaction are not mutually exclusive.

Gary Reynolds highlighted the Annual Meeting revenues and expenses as taken from the APPA Revenues and Expenses by Program Report. Typically, APPA feels reasonably good if the attendance of the Annual Meeting is over 520 members. Gary had a stated goal of trying to raise the attendance goal to 600. When the Annual Meeting was located in Orlando, Philadelphia, and Washington, D.C., the attendance was over 600. Gary's sense is that when APPA has its meetings at family oriented/historical destinations, the attendance is good.

Additionally, APPA is already seeing the benefits of signing a multi-year contract with a national/international hotel chain. It is resulting in very good rates. Furthermore, there are other benefits accruing from this contractual relationship. When APPA needed assistance in Fort Worth, APPA's Marriott contact called the Renaissance Worthington Hotel that is owned by Marriott. The hotel has been very accommodating and has helped APPA considerably in the past several days.

Also, the location for the Institute for Facilities Management and the PLC Academy moves around geographically. Gary felt that, as an organization, we needed to think more broadly and push past the idea that the location of the APPA Annual Meeting has to rotate through the regions on a regular basis.

When convention centers are utilized for the Annual Meeting, this results in additional costs of $20,000 - $30,000 and sometimes even more. When everything is under one roof, the hotel is also more amenable to negotiate. It helps APPA to reduce costs and gain leverage that in turn results in greater added value for its members.

Therefore, Gary Reynolds proposed that if APPA wants to attract its membership, the association must offer good, saleable locations. Equally important, APPA must acknowledge that it doesn't want to lose the regional participation in the process. A list of tier one cities has been drawn up and APPA could move the Annual Meeting around according to the list. Since the Marriott Corporation has made the decision to draw large conventions, APPA could potentially lay out the schedule for ten years. A minimum of four years advance planning is needed; with July meeting dates in such high demand by APPA's colleagues in CHEMA, it is difficult securing a meeting location sometimes even five or six years in advance. Regional representation in deciding the Annual Meeting location would be through the Board of Directors.

A matrix/table was prepared which outlines the current agreement with Marriott for the Facilities Management Institute and the PLC Academy. Lander Medlin was charged by the Executive Committee to bring this to the Board for further discussion.

Lander Medlin emphasized the improvement in the linkage and relationship with the regions. The trust level has greatly improved. APPA's new strategic plan addresses the new and changing issues, as well as all the members' needs. APPA wants to meet its members' needs. APPA must be thinking about its target audience. APPA is only attracting one sixth of the directors of facilities to an international meeting. How can the association reach the broader base of membership? Plus, APPA is exploring international opportunities and collaborative opportunities (e.g., AUDE and NACUBO).

Gary Reynolds said that the Board doesn't need to make a decision today. This issue could be discussed by the boards at their regional meetings. Jim Roberts suggested that the regional educational representatives get back to him in December and he will bring to the Board at its February 2001 meeting.

Lander explained about how CAPPA is helping with speaker gifts, Habitat for Humanity, the host committee, and introductions for the speakers. They are taking a different role from many other conventions. They also built relationships with two local schools and the state and local chapters.

Earl Smith and Phil Cox agreed in going with the tier one cities, but APPA must formalize the process so that it insures linkage and participation by the regions.

Chris Christofferson said that APPA members are voting by their feet. If APPA gets its members to the meeting, the association is successful. If members don't come to the Annual Meeting, they don't benefit from the meeting.

As a point of clarification, Joe Rubertone indicated that the Educational Programs Committee recommends the location for the Annual Meeting to the Board of Directors who approve the decision. Joe also noted that the Educational Committee has regional representation.

Gary summarized the process. He would like the Board members to go back to their regions and discuss with their regions. If Board members have any questions, Gary suggested that they speak to him or Jim Roberts. Gary hopes that people can speak enthusiastically. The goal is to get APPA members to the meeting. The educational representatives can bring feedback from their regions to the November meeting. If it is sounding positive, then, a proposal can be brought to the February Board meeting.

In the meantime, there is pressure to pursue a site for APPA's 2004 and 2005 Annual Meetings. The Wardman Park Hotel in Washington, D.C. could accommodate APPA under the one roof/one location model in July 2004.

Motion (Reynolds): To approve the Wardman Park Marriott Hotel in Washington, D.C. for the APPA 2004 Annual Meeting and Educational Conference. Seconded (Christofferson). The motion passed.

Recess

President Kinnaman reconvened the meeting.

Gary Reynolds reported that a brand new Marriott hotel opens in Denver late in 2004. If you are one of the first groups to contract with a newly opened hotel, you tend to get better deals. Since the 2004 Annual Meeting is located on the East Coast and 2006 Annual Meeting is scheduled in Hawaii, Gary proposed that the Board consider Denver as the site for the 2005 Annual Meeting.

Motion (Christofferson): To authorize the APPA staff to look into 2005 in Denver. Seconded (Besspiata) The motion passed.

The committee will continue discussion on APPAnet. By streamlining the links, the web site continues to get better.

Facilities Manager magazine is the flagship for APPA. Joe commended magazine editor, Steve Glazner, for a high quality publication. The member articles are terrific.

Several books are in the process of production.

Eric Ness from the Trades Staffing GuidelinesTask Force gave a brief synopsis of the progress and achievements. Originally, the task force planned to develop some guidelines for facilities managers to utilize or estimate their staffing needs. What they needed to develop was where they are going. They've developed the four categories of maintenance, defined the basic elements of maintenance, and developed a numerical and qualitative matrix. The bare bones of a book have been composed. They have also done an Alpha test of their data. They're generating an empirical model from which they will develop a mathematical model. However, some of their assumptions were wrong. They discovered that basically there are complex and non-complex buildings.

They are linking a member of the committee with the schools that are providing the data of the alpha test for clarification and accuracy of the data collected. The task force hopes to have the book completed by Spring 2001.

The question the task force has for the Board is, "How provocative does the Board want the book to be? Does the Board want to stimulate response or does it prefer for the book to be more conservative?

Ultimately, this is a guideline. Adjustments are made to fit the situation and the strategy. It will help to provide a common language from which to talk. The task force spent a lot of time on definitions.

Greg Fichter felt that the plan is on track. He stressed that they will receive feedback over the years. In three or four years, they will be able to adjust and produce a state of the art second edition.

Earl Smith feels this is plowing ground and is going to be a standard.

Johnny Torrez said that this work has great potential. The work of this task force should be applauded.

The committee also talked about the fact that APPA's definitions for the emeritus category are a little narrow. They felt that consideration should also be given to the member's contribution to the field or APPA.

Some questions have arisen about membership dues when the institution has multiple campuses. APPA will not allow memberships for groups of schools in the future.

The criteria for deciding a separate campus, and therefore, separate dues are: Does each campus have its own president? Is there one or more facilities manager for the campus? This is our internal way of dealing with these questions.

At its May 2000 meeting, a problem was presented to the Executive Committee that involves non-direct paid employees. The by-laws require that institutional representatives be direct-paid employees. Did APPA want to amend the by-laws? There wasn't much support for that idea. A middle ground recommendation might be to prohibit the non-direct paid employees from holding office although they could serve as the institutional rep.

Phil Cox said the group recommended polling our members to see how they feel about this.

APPA's parallel CHEMA member organizations do not have this clause. Yet, many members are concerned about losing control of the association to its business members.

Mike Besspiata reported that most of the items in the Senior Regional Representative's Report had been covered in the reports previously given by the association officers.

Mike Besspiata mentioned that the Award for Excellence should be more vigorously promoted at the Annual Meeting.

Mike Besspiata reported that the new Senior Regional Representative to the Board is Wayne White. Mike expressed his appreciation for the opportunity to serve as the Senior Regional Representative to the Executive Committee during the past year.

President Kinnaman stated that there was no report at this time. The task force is scheduled to meet Saturday and the Board might receive a report at its Wednesday, July 19th Board meeting.

Research Institute
Gary Reynolds, President-Elect

Gary Reynolds distributed his white paper related to research. He explained how research is being done in pieces. He wants the Board to consider creating a research institute that would be under the supervision of the Vice President of Information Services. This group would be responsible for funding opportunities, publishing the results of that research, etc. Gary believes that APPA needs to create bite size pieces of research as well as big chunks like S.A.M. research. We would have an arm within APPA to which members could go for research. With all these bit size chunks, we could get a lot more people involved in research. This would be a major commitment by APPA to formalize its research component. Maybe a region would sponsor a trip for research members within a region who are part of a research group. There is no action being requested at this time.

If the Research Institute seems to be appropriate, we need to figure out how to fund this and what way to go. This should be discussed at Wednesday's Board meeting. Gary would work with John Harrod on a BPR explaining costs. If approved by the February Board meeting, it would require a by-laws change. At its February meeting, the APPA By-Laws Committee could then work on the wording for the ballot.

Joe Rubertone, APPA's Vice President for Information Services, stated that he wholly supports the proposal. This is just a formalization of what APPA is already doing.

Board Feedback
President Kinnaman distributed the evaluation feedback from the February Board meeting. Overall, the Board achieved high marks. The importance of the tool is to utilize it as a base line for future reference.

President Kinnaman asked if the members had any comments.

Ed Rice thought that comments 7 and 11 are related. As the Board members spend more time together as a group, Ed felt that the differences will dissipate.

Annual Meeting in Fort Worth
Lander went over logistics for the evening and rest of the Annual Meeting. She also encouraged the Board members to make the first time attendees feel relaxed and welcome.

Mike Rueck encouraged Board members to attend the committee meetings.