STAFF LIAISON: CEO Russell C. Salzman, CAE, IOM, RCE

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1 GOVERNING COUNCIL LEADERSHIP & LEGISLATIVE SUMMIT WASHINGTON, DC TUESDAY, APRIL 12, :30 AM - 10:30 AM PRESIDENT: Christopher E. Mellen, CPM, ARM PRESIDENT-ELECT: Michael T. Lanning, CPM SECRETARY/TREASURER: J. BENJAMIN MCGREW, CPM STAFF LIAISON: CEO Russell C. Salzman, CAE, IOM, RCE PURPOSE STATEMENT: 1. Serve as a resource for identifying member and industry issues for development of Institute strategy 2. Receive and act on recommendations from the Executive Committee 3. Final authority on decisions affecting Institute bylaws, policy, and budget matters TIME 8:30 am 8:35 am 8:45 am 8:55 am 9:05 am 9:15 am 9:25 am 9:35 am 10:20 am 10:25 am 10:30 am AGENDA ITEMS PRESENTER Welcome, Call to Order, Purpose of the Council Christopher E. Mellen, CPM, ARM [Chair] Introductions Christopher E. Mellen, CPM, ARM Consent Agenda Christopher E. Mellen, CPM, ARM International Activities Report Lori E. Burger, CPM [Chair, International Management Board] IREM Foundation Report Mary Wilken, CPM [IREM Foundation President] Financial Report J. Benjamin McGrew, CPM CEO Report Russell C. Salzman, CAE, IOM, RCE Standing Committee Reports J. Benjamin McGrew, CPM [Chair, Audit & Investment Committee] Debbie Santano, CPM [Chair, Membership & Credentialing Committee] Julie Yesnick, CPM [Chair, Education & Knowledge Products Committee] Aaron Bosshardt, CPM [Chair, Legislative & Public Policy Committee] Jason Falcetta, CPM, ACoM [Vice Chair, Ethics Committee] Michael T. Lanning, CPM [Chair, Regional Vice Presidents Committee] Christopher E. Mellen, CPM, ARM [Chair, Executive Committee] Lori E. Burger, CPM [Chair, Nominating Committee] Election of 2017 Regional Vice Presidents Lori E. Burger, CPM [Chair, Nominating Committee] Election of 2017 National Officers Lori E. Burger, CPM [Chair, Nominating Committee] Adjournment Christopher E. Mellen, CPM, ARM Pages 2-6 OBJECTIVE MATERIALS Slate of Nominees Page 7 Slate of Nominees Page 7

2 Item Number 1 Consent Agenda MOTION: To approve the minutes of the October 22, 2015 meeting of the Governing Council as distributed via the Governing Council Leadership Link (irem.org/governinglink) Audit & Investment Committee Chair: J. Benjamin McGrew, CPM MOTION 1: To accept the 2015 financial audit as performed by the auditing firm of Desmond & Ahern. 2 Background: The annual financial audit of IREM s accounting records was performed by the auditing firm of Desmond and Ahern being represented by Mr. Patrick Melvin, CPA. Mr. Melvin went through the process of how the audit was conducted and explained the various testing methods used in the audit. He concluded the financial statements referred to are presented fairly, in all materials respects, the financial position of the Institute of Real Estate Management as of December 31, MOTION 2: To accept and file the 2015 tax returns as presented by the auditing firm of Desmond & Ahern. Background: The annual information and tax returns were reviewed by the auditing firm of Desmond & Ahern and staff CFO, Ken Paul. Mr. Melvin explained how the returns were organized and explained various pertinent pieces of the returns. He explained why certain criteria s need to be fully addressed within the returns in order for IREM to maintain its exempt status. All questions which were asked were completed answered by either Mr. Melvin or Mr. Paul. Membership & Credentialing Committee Chair: Debbie Santano, CPM MOTION 1: To revise the CPM experience functions to align with the IREM Job Analysis findings, to be effective January 1, (Note: Portfolio requirements remain as is.) 3 Background: The current CPM experience requirement is defined as: have three years (36 months) of qualifying real estate management experience meeting a minimum portfolio and performing at least 19 of the 36 functions IREM uses to define a real estate manager s responsibilities. The functions are derived from an IREM Job Analysis that is conducted every five to seven years, which defines the critical practices and competencies of the profession. Having recently completed a Job Analysis, the task statements outlined in the Job Analysis were reviewed against the 36 CPM functions by the Membership and Credentialing Committee to assure that they are still relevant or if updates are necessary. A few modifications were identified. Article II. Membership Section 1: CERTIFIED PROPERTY MANAGER (CPM ) Program 1.8 Requirements to Earn the CPM Designation Have three years (36 months) of qualifying real estate management experience consisting of qualifying real estate job functions defined in Section (a) and qualifying portfolio defined in Section (b). (a) Perform 19 of the 36 real estate management functions listed below for any period of time in which the portfolio requirement is met: (1)Hire, manage, and evaluate site personnel and/or off-site management staff or contracted management firms, directly or through others. 2

3 (2) Identify staffing requirements and develop, or approve, job descriptions and/or develop and monitor, or approve, human resource policies and training and development plans, and diversity outreach initiatives. (3) Identify, implement and monitor, or approve, sustainable practices: including but not limited to energy use/conservation programs for the property and resident/tenant/employee communications and/or education. (4) Determine which items or services are to be purchased for the property, prepare specifications, solicit and evaluate bids for contract services, negotiate or approve contracts, and monitor contracts and approve payments. (5) Oversee operation of building systems, supervise employees or monitor contractors who perform routine maintenance and repair work, and/or oversee planning and construction of tenant improvements and interior design. (6) Design, implement and monitor, or approve routine and preventive maintenance programs for the property. (7) Establish or maintain/update, and enforce the property's operating policies and procedures and occupancy/usage guidelines. (8) Establish, maintain, and monitor adherence to, or approve, the property's record keeping system. (9) Identify, analyze, and/or prepare specifications or negotiate, and implement, or approve, capital improvement or replacement programs, including but not limited to maintenance or remodeling programs and resident/tenant improvements, and amenity enhancements. (10) Perform regular property inspections and take appropriate action in accordance with established policies and procedures. (11) Design and implement, or approve, resident/tenant retention, orientation and property familiarization programs. (12) Communicate routinely with occupants of the property concerning level of service and other management matters and/or investigate and resolve resident/tenant complaints. (13) Administer the leasing and lease renewal process and/or negotiate or approve leases, including assessing the financial impact of the lease. (14) Prepare, market and show leasable space. (15) Develop, implement, and monitor a marketing plan, and/or leasing plan for the property. (16) Analyze market conditions and recommend, or approve, the property's rental rates. (17) Design, implement or approve life-safety and emergency preparedness programs for the property. (18) Develop, implement or approve a risk management program for the property to mitigate the property s insurable risk and/or identify the property's insurable risks and recommend, secure and monitor insurance coverages. (19) Recommend and/or initiate legal actions for violations of leases, contracts or governing documents, including but not limited to evictions and filing of liens. (20) Ensure the property's compliance with government and environmental regulations. (21) Process and/or monitor, or approve, property payables. (22) Supervise property collections, including the handling of property receipts, journal entries, records of account, bank deposits, and delinquent accounts. (23) Prepare, present and implement annual property budgets, including capital expenditure budgets, or review, authorize and monitor such budgets prepared by others. (24) Prepare, analyze and/or approve the property's financial and operating statements and variance reports. (25) Approve major deviations from the budget, exclusive of emergencies. (26) Identify and analyze the property's financial requirements and financing options, and/or replacement reserve requirements, and recommend funding sources to the owner. 3

4 (27) Estimate and monitor the market value of the property and assess the implications that estimates of value have on the owner; determine the reasonableness of assessed value and insurable value. (28) Identify, analyze and propose alternate uses of the property and implement or approve a plan to change the property's use (e.g., converting a residential building to commercial use). (29) Identify, analyze, and propose property improvements relative to the future value and return on investment. (30) Establish or maintain management controls and analyze the property's performance. (31) Determine the goals and objectives of the property owner. (32) Evaluate real estate tax assessments and recommend an appeal strategy to the owner when appropriate. (33) Prepare a management plan for the property. (34) Identify and recommend, or approve, other sources of income for the property and implement programs accordingly. (35) Acquire new clients, and/or establish and maintain client relationship(s). (36) Fulfill the company s contractual obligations; including, recommending, implementing, and managing modifications for management contracts and/or governing documents. MOTION 2: To modify the CPM reinstatement requirements to allow IREM s online ethics course (ETH001) to satisfy the ethics education requirement in addition to the classroom ethics course (ETH800), to be effective immediately. Background: As of 1990, Ethics for Real Estate Managers (ETH800) IREM s classroom-only ethics course became a requirement to earn the CPM designation. Likewise, the completion of this course was also made a requirement for CPM reinstatement. A work group formed within the Membership and Credentialing Committee was charged with exploring whether IREM s online ethics course, Real Estate Management Ethics Online (ETH001), should also apply to the CPM program. Because ETH800 is typically offered only once a year in some chapters and not offered at all in other chapters, it was concluded that this deters former members from reinstating their CPM designation. The work group agreed that allowing ETH001 to qualify for the ethics education requirement for CPM reinstatement would help recruit more former CPMs (who were originally approved prior to 1990) to reinstate. Article II. Membership Section 1: CERTIFIED PROPERTY MANAGER (CPM ) Program 1.8 Reinstatement of CPM Membership If not previously completed Ethics for the Real Estate Manager (ETH800), complete one of two options: (a) attend and successfully complete, by passing the exam with a 70% or better score, the classroom course Ethics for the Real Estate Manager (ETH800) (b) successfully complete, by passing the exam with a 70% or better score, the online course Real Estate Management Ethics Online (ETH001) Note: All other reinstatement requirements must also be met: application and fees, NAR membership, real estate license or proof one is not needed. 4 Education & Knowledge Products Committee Chair: Julie Yesnick, CPM 4

5 5 Legislative & Public Policy Committee Chair: Aaron Bosshardt, CPM 6 Ethics Committee Vice Chair: Jason Falcetta, CPM, ACoM Regional Vice President Committee Chair: Michael T. Lanning, CPM MOTION: To approve these amendments to Hampton Roads Virginia Chapter No. 39 bylaws. 7 Chapter Number Region Other -- Specific Amendments Made by Chapters -- by Article Numbers Hampton Roads Virginia 39 3 Amend Article VI. Officers, Section 6. Updated the description for Vice President for Communications. Executive Committee Chair: Christopher E. Mellen, CPM, ARM MOTION 1: To form a REME Advisory Board, per proposed Statement of Policy language, in order to sustain the REME Awards program. Article l: Organization Section 1: Governance and Volunteer Participation 1.4 IREM Implementation and Advisory Boards REME Awards Advisory Board (a) The purpose of the REME Awards Advisory Board shall be to: (1) Develop, promote and execute the annual IREM REME Awards program as a program that captures innovation, excellence and builds IREM s stature in the industry (2) Determine and implement modifications for the following year categories, submission guidelines, solicit participants, etc. (3) Judge REME Award submissions and select finalists and winners (4) Serve as ambassadors to increase participation and provide guidance for promotion and communications (b) The composition of the REME Award Advisory Board shall be: (1) Chair (2) Vice Chair (3) At least five other appointed by the president (c) The terms of REME Award Advisory Board members shall be: (1) Two-year renewable terms, on a staggered-term basis (d) Desired qualifications for REME Award Advisory Board members shall be: (1) Interest and experience in awards programs. (2) Passion for innovation and excellence in real estate management. 5

6 MOTION 2: To form a Sustainability Advisory Board per purposed Statement of Policy language. Article l: Organization Section 1: Governance and Volunteer Participation 1.4 IREM Implementation and Advisory Boards Sustainability Advisory Board (a) The purpose of the Sustainability Advisory Board shall be to: (1) Provide technical guidance in developing, modifying, implementing, and promoting the IREM Certified Sustainability Property certification program (2) Identify and recommend topics for knowledge products (e.g., webinars, courses and seminars, white papers, JPM articles, conference sessions, blog entries) related to sustainability (3) Provide guidance in identifying and implementing sustainability projects, collaborations and partnerships (b) The composition of the Sustainability Advisory Board shall be: (1) Chair (2) Vice chair (3) At least five other members appointed by the president; provided that any members who are not otherwise IREM members shall be provided complimentary Associate Membership during the term of their appointments (c) Desired qualifications for Sustainability Advisory Board members shall be: Recognized experience in and knowledge of sustainability. 9 Nominating Committee Chair: Lori E. Burger, CPM 6

7 2017 Officer and Regional Vice President Nominees Slated The IREM Nominating Committee has announced its slate of nominees for 2017 national officers to serve with 2017 President, Michael T. Lanning, CPM, Cushman & Wakefield, AMO, Kansas City, MO. They are: President-elect J. Benjamin McGrew, CPM, CCIM Managewest, Inc. Sacramento, CA Secretary/Treasurer Donald B. Wilkerson, CPM Gaston and Wilkerson Management Group, AMO Reno, NV The IREM Nominating Committee also submits the following nominations for regional vice presidents for the term: Region Nominee Regional Jurisdiction 2 Mary J. Scherer, CPM Delaware, New Jersey, New York, Union Real Estate Pennsylvania 5 Brian E. Estes, CPM The Estes Group, Inc. 6 Brunetta Harris, CPM Forest City Residential Management, Inc., AMO 8 Dwayne Alexander, CPM, ARM, ACoM Southern Nevada Regional Housing Authority 11 Michelle W.J. Wong, CPM, ARM Ideal Properties, Inc. 12 Barry G. Blanton, CPM Blanton Turner 13 Theodore Ted Rausch, CPM Colliers International, AMO 14 Ron J. Penner, CPM Globe General Agencies Alabama, Arkansas, Louisiana, Mississippi Indiana, Kentucky, Michigan, Ohio, West Virginia Arizona, Colorado, Nevada, New Mexico, Utah California, Hawaii Alaska, Idaho, Montana, Oregon, Washington, Wyoming North Carolina, South Carolina, Tennessee Canada The election will take place during the IREM Governing Council meeting on Tuesday, April 12, 2016, at the Omni Shoreham Hotel in Washington, DC. IREM bylaws provide for additional nominations for officer and regional vice president positions. Any additional nominations must be made by a petition signed by at least fifteen (15) members of the Governing Council delivered to the Executive Vice President at least ten (10) days in advance of the date set for the election. 7