GEB Minutes October 24,
GEB Minutes October 24, 2018 various state and local taxes. He advised the Board that on October 2016, the IUOE transferred title to the land in Crosby, Texas to the ITEC and advanced construction costs by way of a line of credit and secured loans between these two entities. He further noted that construction has now been completed, but the ITEC has incurred various start-up costs in order to become operational. He stated that these costs, which were reviewed by Chief Financial Officer John Loughry, include the purchase of equipment from various vendors and the costs relating to the transport and setup of large equipment such as cranes. In addition to start-up costs of more than ,000,000, the ITEC has experienced operational short falls in terms of revenue to cover the Training Center operations which have amounted to 5,000 for the first six months of operations. After a thorough discussion of this matter, it was regularly moved and unanimously carried: (1) that a line of credit between the IUOE and the ITEC to cover all reasonable start-up costs and operational short falls for the first year of operation beginning April 1, 2018 ending April, 2019 is approved; (2) that all cash advances from the IUOE to the ITEC be made by way of secured loans; and (3) that the General President is authorized to approve such loans and to execute the necessary loan documentation for these loans. Case No. 22(c) – ITEC Additional Land Purchase General Counsel Powers reviewed the proposed purchase of an additional 29.3 acres of land bordering the current ITEC property for the purpose of expanding the existing crane field with several new crane pads. He advised the Board that the ITEC has agreed to purchase this land at a price of 4,700. He stated that, in connection with this purchase, the ITEC will incur legal fees, title fees, brokerage fees, professional fees and title costs, due diligence costs including a wetlands delineation report and a phase 1 environmental report and soft costs concerning design, permitting, project management and engineering for a total project cost of approximately 9,700. Closing on this property is expected in December 2018. It was regularly moved and unanimously carried: (1) to approve a loan in the amount of 9,700 from the IUOE to the ITEC to cover the costs of purchase and initial development of these 29.3 acres; and (2) to authorize the General President to execute the necessary documents to effectuate this loan. Case No. 22(d) – ITEC and Newport Municipal Utility District General Counsel Powers reviewed the first amended Newport Municipal Utility District (MUD) Agreement that was signed by the ITEC on October 22, 2018. He advised the Board that the original MUD Agreement dated February 2016 provided that the MUD would provide water and sewer service for the Training Center, and that the original MUD Agreement was entered into by the MUD and the IUOE and then assigned to the ITEC. He further noted that the original MUD Agreement provided that if a property tax exemption was obtained for the Training Center property in Crosby Texas, the ITEC would pay the MUD a non-taxable entity tap fee in an amount calculated pursuant to the Agreement to pay for the costs incurred by the MUD. The First amended Agreement defers payment of the tap fee until such time as the temporary Harris County property tax exemption obtained by the ITEC becomes permanent and it fixes the amount of the tap fee at ,725,000. The contingent obligation to pay the tap fee is secured by a bank Letter of Credit. After a thorough discussion of this matter, it was regularly moved and unanimously carried: (1) for the IUOE to approve a ,725,000 loan from the IUOE to the ITEC necessary to pay amounts due under the terms of the Amended MUD Agreement once a regular property tax exemption is secured; and (2) to authorize the General President to execute all necessary documents in connection with the First Amended MUD Agreement, including but not limited to, all documents needed to obtain the bank Letter of Credit required by the terms of the Amended MUD Agreement. Case No. 22(e) – Amendments to the Operating Rules and Procedures to the IUOE Code of Ethics General Counsel Powers distributed copies of the Code of Ethics and the Operating Rules and Procedures for the Implementation and Enforcement of the Code to the Board. He reminded the Board that the Code and the Operating Rules had been adopted in 2008 with the proviso that they would be reviewed periodically to see if any changes were necessary. He stated that the Legal Department had recently met and consulted with the Ethics Officer Joe McCann who agreed that, while the Code of Ethics did not need to be changed, there were a number of recommended changes to the Operating Rules that should be presented to the Board. General Counsel changes streamline procedures, provide that complaints be filed in a timely fashion, and avoids duplicate proceedings arising from election protests, internal charges, or the filing of lawsuits relating to a cause or controversy that is the subject of an ethics complaint. In addition, under the amended Operating Rules, the General President will play a role in determining whether complaints have sufficient merit to warrant referral to the Ethics Officer. After thoroughly reviewing the proposed changes to the Operating Rules, it was regularly moved and unanimously carried to adopt the amended Operating Rules and Procedures effective December 1, 2018. Case No. 23 Appeals Associate General Counsel Andrew Bucci reported on an appeal to the General Executive Board of Robert L. Daniels, a member of Local Union No. 324, Bloomfield Township, Michigan from the decision of the Local 324 Executive Board to deny his protest to the Local 324 Election of Union Officers. International Vice President and Local 324 Business Manager Douglas Stockwell left the room and fully recused himself from both the discussion and the vote on this Appeal. Associate General Counsel Bucci reported that this appeal was heard by a panel earlier appointed pursuant to the provisions of Article V, Section 7 of the International Constitution. At this session of the meeting of the Board, the panel submitted a report containing its conclusions, findings of fact and recommendation. After consideration of the panel report and on motion duly made and seconded, the Board adopted the conclusions, findings of fact, and recommendation of the panel, ruling that: THAT, The Local complied with the applicable rule, Article XXIV, Subdivision 1 Section (b) of the International Constitution which states, “within five (5) days after the nominations have been concluded the Recording- Corresponding Secretary shall mail to each member nominated, at his last known home address, notice of his nomination and of the office to which he has been nominated.” THAT, Mr. Daniels failed to comply with Article XXIV, Subdivision 1 Section (b) of the International Constitution, requiring that an acceptance of nomination must be received by the Recording- Corresponding Secretary within 10 days of the date the candidate was notified of the nomination. THEREFORE, the Local has a sufficient basis for ruling that Mr. Daniels was ineligible to run for office. Accordingly, the appeal is denied. Upon the conclusion of the discussion, consideration, and vote on this appeal, Vice President Douglas Stockwell then rejoined the meeting. Case No. 24 General Secretary Treasurer’s Report General Secretary-Treasurer Brian Hickey reported that the International has completed the fieldwork for the mid-year review. He reported that the audit of the staff retirement plan has been completed. He reported that the AREA audit and the Worker’s Compensation audit are in progress. General Secretary-Treasurer Hickey then provided the Board with a report on various elections, including but financial support for candidates and communities. Case No. 25 2019 Meeting Locations General President Callahan advised the Board of the dates and locations for upcoming GEB meetings. Case No. 26 Good of the Order A variety of issues and subjects important to the welfare of the International Union were discussed. Case No. 27 Payment of Expenses in Holding Meeting It was regularly moved and seconded that the General Secretary-Treasurer be authorized to pay the expenses incurred in connection with this meeting of the General Executive Board. The motion was put to a vote and was unanimously carried. There being no further business to come before the General Executive Board, upon a motion made, seconded and carried, General President Callahan adjourned the meeting. I, Brian E. Hickey, General Secretary-Treasurer of the International Union of Operating Engineers, hereby certify that the foregoing is a true copy of the minutes of the General Executive Board Meeting on October 24, 2018. Fraternally yours, Brian E. Hickey General Secretary-Treasurer 26 INTERNATIONAL OPERATING ENGINEER SPRING 2019 27
