2017

ACEC/PA ANNUAL MEETING

The Omni Bedford Springs Hotel June 5, 2017

WELCOME REMARKS

Matthew G. Cummings, P.E. 2016-2017 ACEC/PA President

2016-2017

ACEC/PA Board of Directors Executive Committee

Matthew Cummings, President Joseph O’Neil, President-Elect Perry Schweiss, Vice President

Eric Frary, Treasurer Troy Holloway, Secretary

Sean Henderson, Immediate Past President Christopher Borton, ACEC National Director

Gregory Lebo, Chair, Government Affairs, Ex-Officio Eric G. Madden, Executive Vice President, Ex-Officio

At-Large Directors

Eric Veydt, Director 2015-2017 Matthew Natale, Director 2015-2017

Matthew Marquardt, Director 2015-2017 Bill Gross, Director 2016-2018

Lea Nadler, Director 2016-2018 Roseline Bougher, Director 2016-2018

Chapters

Mark Markosky, Western Chapter President Edward Reese, Western Chapter Vice President

Michael Bougher, Central Chapter President Todd Morris, Central Chapter Vice President Yassmin Gramian, Eastern Chapter President

Jon Livingston, Eastern Chapter Vice President

INDUCTION OF THE

2017-2018

BOARD OF DIRECTORS

Sean M. Henderson, P.E. ACEC/PA Immediate Past President

2017-2018

Presidential Appointments

Western Chapter Officers Edward Reese, President

Derek Rogers, Vice President

Central Chapter Officers Todd Morris, President

Matt Natale, Vice President

Eastern Chapter Officers Jon Livingston, President

Matt Marquardt, Vice President

2017-2018

At-Large Directors

2016-2018 Bill Gross, Director (West)

Lea Nadler, Director (Central) Roseline Bougher, Director (East)

2017-2019*

Margaret Moore, Director (West) Michael Bougher, Director (Central)

Yassmin Gramian, Director (East)

*Newly elected as per the ACEC/PA Bylaws

2017-2018 Officers &

Executive Committee

Joseph O’Neil, President Perry Schweiss, President-Elect*

Eric Frary, Vice President* Troy Holloway, Treasurer*

Eric Veydt, Secretary* Matthew Cummings, Immediate Past President Christopher Borton, ACEC National Director*

Michael Girman, GAC Chair (Ex-Officio)

*Newly elected as per the ACEC/PA Bylaws

2016-2017

ACEC/PA PRESIDENT

FAREWELL ADDRESS

Matthew G. Cummings, P.E.

ACEC/PA

STATE OF THE COUNCIL

Eric G. Madden ACEC/PA Executive Vice President

2016-2018 Strategic Goals Vision ACEC/PA will be the go-to organization to promote and enhance the business interests of the consulting engineering industry in Pennsylvania.

Goals • Meet the ACEC PAC goal and the state PAC goal • Strongly advocate for infrastructure investment at the state

and national levels • Strengthen and increase membership • Enhance ACEC/PA’s brand, external communications and

promotions • Institute long-term association governance strategies to

bolster ACEC/PA

Goal: Meet the ACEC PAC Goal

and State PAC Goal

ACEC PAC (Federal)

PaCE PAC (State)

Goal $ Raised $ Spent

2017 (To-date) $33,958 $24,250 $10,000

2016 $33,958 $37,040 $51,000

2015 $33,262 $35,925 $32,500

2014 $36,778 $37,329 $44,000

Goal $ Raised $ Spent

2017 (To-date) $25,000 $9,300 $9,100

2016 $25,000 $28,055 $24,350

2015 $25,000 $15,550 $11,700

2014 $30,000 $18,730 $42,650

Goal: Strongly Advocate for

Infrastructure Investment at

State and National Levels

Pennsylvania (2016-2017) – DONE!

• Capped PA State Police funding from the Motor License Fund (MLF) at $802 million.

• Amended Act 60 Unemployment Compensation Insurance program

• Wage rate increases for construction inspectors and managers

• Authority to pursue toll-evaders on the turnpike

• One step closer to cash-less tolling on the Turnpike

Pennsylvania - What’s ahead

• Continue to monitor the driving down of PSP funding from the MLF to $500 million (annual)

• Automated camera speed enforcement in work zones

• Expedited relief from the Turnpike’s Act 44 payments to PennDOT ($450 million annually until 2022, drops to $50 million)

• Timely and sensible audits from the state comptroller’s office

• Revisit the $55 cap on old paper agreements

Federal (2016-2017) – DONE!

• Killed weekly sick-time reporting (DOL)

• Killed blacklisting rule (DOL)

• Halted waters of U.S. rule (EPA)

Federal - What’s ahead

• Infrastructure Funding

– Transportation: Fix Highway Trust Fund

– FAA long-term reauthorization

– Water (WRDA appropriations)

– Energy (re-start energy bill)

• Tax Reform

– Lower rates

– Equal treatment (C corps, S corps, partnerships)

– Preserve cash accounting

Goal: Strengthen and Increase

Membership

• Membership has remained steady but growth is still a challenge

• Mergers and acquisitions have had a profound impact

• Expansion into new markets (energy/vertical) is a must

Assoc./Affiliate

Members

Full Members Index Numbers

2017-18 18 111 1145.1

2016-17 25 111 1129.5

2015-16 25 118 1149.9

2014-15 25 120 1162.7

2013-14 19 123 1185.1

Goal: Enhance ACEC/PA’s Brand,

External Communications &

Promotions Advocacy

• Testimony Presentations

– Senate Transportation Committee – Project Delivery (Feb. 6, 2016)

– House Transportation Committee – PSP Funding (Feb. 8, 2016)

– Senate Transportation Committee – PSP Funding (Feb. 16, 2016)

– Senate Transportation Committee – Environmental Permitting (Feb. 7, 2017)

– House PA Public School Building Construction & Reconstruction Advisory (PlanCon) Committee – School Construction (Feb.13, 2017)

Advocacy

• Newspaper quotes

– York Daily News (Feb. 7, 2016) – PSP Funding

– Reading Eagle (Feb. 20, 2016) – PSP Funding

– Tribune-Democrat (Feb. 25, 2016) – PSP Funding

– Meadville Tribune (Feb. 29, 2016) – PSP Funding

Publicity

• Scholarship

This is why we play!

What’s next

• New public relations firm under contract

• Re-invigorated public relations committee

• Greater media presence

• Greater presence among our industry (particularly non-members)

• Enhance the brand identity of ACEC/PA

Goal: Institute Long-Term

Association Governance Strategies

to Bolster ACEC/PA

President’s Task Force on Committee Structure & Diversity

• Review of the entire committee structure

• Give the association back to you, the members

• Defined structure of roles and responsibilities

• Opportunities for upward movement

• Focus on diversity

Networking at a Glance • 51 Committee Meetings (all year)

• 36 Separate PAC events (state and federal)

• 23 Government Affairs Breakfasts and Chapter Meetings (Sept-Nov, Jan-Mar)

• 2 ACEC/PA-PennDOT Co-Sponsored Winter Schools (January/February)

• 1 Diamond Awards for Engineering Excellence Gala (March)

• 1 ACEC National Convention & Legislative Summit in Washington, D.C. (April)

• 1 Annual Meeting (May/June)

• 2 ACEC/PA-PHIA Co-Sponsored Breakfasts (Summer)

• 1 Scholarship Golf Outing (September)

• 1 Government Affairs Legislative Reception (October)

• 1 ACEC National Fall Conference (October)

• 1 ACEC Bi-State (PA-NJ) or Tri-State (PA-NJ-NY) Meeting (Fall/Winter)

• 1 Fall Conference/ACEC/PA Day (November)

• 1 Pennsylvania Society Reception (December)

Rule of Life

The world is run by those who show up.

ACEC NATIONAL

STATE OF THE COUNCIL

John R. Nelson ACEC National Executive Committee

ACEC’s Strategic Plan Calls for Collaboration between National and State

Member Organizations on Six Strategic Goals – to Improve the Business Environment of Member Firms.

6/7/2017 26

ACEC PA has met PAC goal for 10 years Currently at 71% of 2017 goal

Active in national programs Stable membership despite economic

challenges You get it!

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Priorities:

More infrastructure funding

More contracting out

Expanded energy and

private client markets

Balanced tax reforms

Fewer burdensome

regulations

Repealed 3% Withholding Secured 9% tax deduction for A/E firms Removed 10% retainage on federal A/E contracts

Firm w/$10M government contracts preserves $300,000 in cash flow

Firm w/$10M taxable income saves $238,000

Firm w/$10M government contracts preserves up to $1M in cash flow

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Identify ways ACEC National can support State issues

Let ACEC provide assistance on QBS, liability, insourcing, and other issues

Respond to ACEC Congressional “Action Alerts”

Use “State Legislative Resource Center” on ACEC website

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6/7/2017 31

SEI Class on Capitol Hill

“Best Practices” contracts,

books, seminars

Leadership and

management education

Online educational

management

Timely, Practical Webinars and Publications

Project Opportunities with U.S. Government Agencies

Managing Your FAR Overhead Rate

Negotiating Better Engineering Contracts

Achieving Record Sales and Profits in Competitive Markets

Leadership Programs

Senior Executive Institute (SEI) – Flagship program now in its

22nd year

Business of Design Consulting (BDC) – Offering business basics

New Pathways to Executive Leadership – Tailored for emerging

leaders; Class 1 began Oct 2016

Registered Continuing Education Program (RCEP)

More than 70,000 participants

138 institutional providers of instruction; collaboration with ASCE

Let us know what educational programs you want

Post your MO seminars on ACEC’s national calendar to increase visibility

Register as a RCEP provider to reach a wider audience

Promote national educational programs and share revenues

6/7/2017 33

Effective communications:

Last Word – weekly

Engineering, Inc. – bi-monthly

Twitter feed – daily

State-of-the-art ACEC website

ACEC YouTube Channel

InfrastructureUSA website

National recognition programs:

Engineering Excellence Awards

QBS Awards

Academic scholarships

Community service awards

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Awards

Engineering Inc. won five top 2016 MarCom international

awards for editorial and design excellence

Engineering Inc. won APEX 2016 Grand Award for excellence

Last Word won APEX 2016 Award for newsletter excellence

Engineering Business Index (EBI)

ACEC’s quarterly CEO survey highlights industry conditions,

hot sectors, trends, profitability, and backlog

"Striking spreads, crisp, interesting copy, and appealing photos combine to make this a magazine that industry professionals will actually read.“ - APEX Judges

Provide MO news for inclusion in Last Word and Engineering Inc.

Include national achievements in your newsletters

Add state officials to Engineering Inc. distribution

Advertise in Engineering Inc., Last Word, website to reach clients, lawmakers, members

6/7/2017 36

Top 3% of all federal PACs

Helps achieve ACEC’s advocacy agenda by

helping to elect pro-business candidates

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

Help elect

pro-business

candidates

Sustain

$1 Million

ACEC/PAC

Widen member

participation in

ACEC/PAC

Leads to legislation that

benefits member firms

Leads to increased ACEC

political clout

Deepens member

involvement with ACEC’s

advocacy programs

6/7/2017 38

Meet your state ACEC/PAC goal

Urge principals to donate and sign “prior approval” form so their employees can contribute

Include PAC updates in MO newsletters and meetings

Suggest candidates for Congress; coordinate check giving and help organize local fundraisers

Promote direct giving to ACEC/PAC supported candidates

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Supports state legislative and

legal initiatives of national

importance

$2.3 million war chest

44 states have received

grants

Major issues include:

Limitation of Liability

Infrastructure funding

Contracting out

Indemnification/duty to

defend obligations

Use the Minuteman Fund for key MO legal/ legislative actions

Go to ACEC website for Minuteman grant criteria

Establish Minuteman contribution check-off on your dues invoices, if not already done

Promote contributions to the Fund from all members

6/7/2017 41

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Grow number of member

firms by 2%/yr (now 5,351)

Grow member firm employee

strength by 3%/yr (now

580,095)

Recruit 90% of eligible ENR

500 design firms by 2020 (now

84.6%)

Extraordinarily High Retention Rate – 96% of Pay Directs Challenges – M&A and private client firms

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Make membership a top priority

Develop “war plan” for recruiting; use recruitment info on ACEC website

Coordinate with national for assistance in recruitment of large firms

Target less active members for “retention” efforts

6/7/2017 43

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Over 40 National Committees,15 Coalitions,

Councils and Forums

Cover breadth of engineering practices, markets

Get involved: Options described online at www.acec.org;

sign up online

Executive Committee candidates are sponsored by MOs

January-April each year; interviewed by national

Nominating Committee for a two-year term

Trusts offer “member only” services –Life/Health

Insurance, Business Insurance, Retirement

Programs.

Member “discount programs” offer special pricing

just for ACEC members on a wide range of

products and services.

Life/Health

Trust

Business

Insurance

Trust

Retirement

Trust

Annual premium savings

of $17,175 for 50 person

firm

Annual premium savings

of $9,000 for 50 person

firm

Annual retirement plan

fee savings of $9,500 for

50 person firm

6/7/2017 46

2017

ACEC/PA ANNUAL MEETING

The Omni Bedford Springs Hotel June 5, 2017

2017

ACEC/PA ANNUAL MEETING

OPENING SESSION

The Honorable Lloyd Smucker

U.S. Congressman (R-16)

Member, House Transportation & Infrastructure Committee

2017

ACEC/PA ANNUAL MEETING

The Omni Bedford Springs Hotel June 5, 2017