Board of Directors Meeting MinutesJuly 22-24, 2005

Saturday, July 23, 2005

Members Present:BG Robert TaylorMaj Gen (Ret) William LynchCOL Al FaberBrig Gen (Ret) Kenneth L. RossLTC Catherine CorkeryMG Frank VavalaMG Claude WilliamsBrig Gen (Ret) Ronald ShultzLt Col Murray HansenMG Tod BuntingLTC Darrell D. LoydMaj Gen Al WilkeningBrig Gen Frank RezacCOL Raymond JardineCOL (Ret) Don DeeringCol (Ret) Ray MagillCPT Darrin HussCW5 Larry MasseyCMSgt Ed BrownCol Andrew SalasMG Gus HargettMG Glenn RiethMaj Gen David PoythressCOL Bob FeldermanBrig Gen Brod VeillonBG Norman ArflackBrig Gen Robert Dutko

Members absent:LTC Steven JoyceCapt Mike TaylorMG Ed Wright

Also present were:MSG (Ret) Mike ClineLt Col Rick O’LearyGeneral Wick Searcy Maj Gen (Ret) Gordon StumpCol (Ret) Butch DowseMaj Gen Roger LempkeCOL (Ret) Tom KirkpatrickBrig Gen (Ret) William SpruanceMajor General James HughesBrig Gen Stephen KoperMr. Chris SmallMr. Bill WightMG (Ret) Ronald HarrisonMs. Hazell BookerMs. Pam BucklerMr. John Buckler

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1LT Frank BrognaLTC Wayne HuntMr. Sean FoertschMr. Andy VanlandinghamMs. Bernie PhelpsMs. Michele TraficanteJames PritzkerWarrant Officers CouncilMs. Loretta FillsBG (Ret) Marshall Kennemer General Taylor called the meeting call the meeting to order at 8am. General Hargett gave the invocation. General Ross was called upon to lead the pledge of allegiance. Colonel Faber called the roll and reported there was a quorum present.

General Taylor called for a motion to approve the minutes from the March 12-13, 2005 meeting. Colonel Felderman so moved. Colonel Deering seconded.General Taylor asked for corrections or additions to the minutes or discussion. No discussion, corrections or additions were noted. Motion passed.

General Taylor welcomed the newcomers, Chris Small, the new CAP Chair. He welcomed General Hughes back. General Taylor recognized General Harrison and General Stump, both past presidents. He asked Chief Massey to introduce the region warrant officers as follows, Region I, Howard Haider, Region II Amir Pishdad, Region IV, Joe Diaz, and Region IV, Rhea Pruitt. General welcomed them. General Taylor also welcomed Bill Wight, General Searcy and Mike Cline.

General Taylor proceeded with the Chairman’s report. He reported that the majority of the Associations time has been consumed since May with the BRAC announcement. General Taylor said that yesterday the Adjutants General met in the NGAUS building to discuss BRAC and Future Total Force led by General Lempke. He said the result was a concerted effort to speak with one voice.

General Taylor reported that the Association had lost Bill Goss and Paula Kougeas, and President Koper is presently working to replace those losses.

General Taylor reported that Industry efforts continued to go well. He said that there are only 20 booths left for the conference in Honolulu. He thanked Hazell for her efforts. General Taylor reported that Ron Johnson, the former CAP chairman had left and was replaced by Chris Small, the CEO of Aero Point.

General Taylor reported that Brigadier General (Ret) Reid Beveridge, who chaired the C4I Task Force had resigned so a new chair would have to be appointed. General Taylor said Luke Goodwin, from the Finance Committee, of Mississippi, resigned and Lieutenant Colonel Craig Jones has been appointed to fill his unexpired term.

General Taylor said there is the need this weekend to discuss the letter sent to President Koper on the approval for NGAUS to be recognized for Professional Development for the Annual Conference in Honolulu.

General Taylor reported that the direction came from the last Board of Directors meeting to send a letter from NGAUS and EANGUS. That letter was sent to OSD public affairs and they answered that correspondence on or about June 1, receiving approval from OSD public affairs to recognize the conference as well as our yearly Legislative Seminar as Professional Development. He said that a straw man agenda, to begin the process, was sent to the general counsel at NGB. A letter was recieved denying approval and further stated that approval of the Chief of the

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National Guard Bureau was needed. Therefore, that issue is still being worked with General Blum. General Taylor said EANGUS had received approval from NGB with a number of stipulations. General Taylor said they would spend time on that subject in the afternoon. General Taylor reported that a formal letter had been received from Iowa withdrawing from the 2008 conference in Des Moines., but there might be another state willing to come forward to host the 2008 conference.

General Taylor and General Koper met with the Company Grades, Captains Mike Taylor and Darrin Huss. General Taylor said he feels that the future of the Association lies with the company Grades. He said they are working diligently on the conference and other issues and he is proud to have the Company Grades as part of the team. General Taylor mentioned the Captain Huss will be deploying soon.

Auditors Report: (Please refer to the Audit Report Booklet)Bob Holder reported that this statement includes the NGAUS, the Insurance Trust, the Education Foundation, the partnership and the building corporation. He said the partnership turned over the building to NGAUS early in 2004. The Partnership was since dissolved and the Building Corporation is no longer active.

Mr. Holder reported that this is an unqualified opinion and referred to as a clean opinion. He said that the statement of financial position is comparable to a balance sheet in a commercial business. Mr. Holder said over the last year there was a change in investments due to increase in value as the market rose, totaling $1, 900, 000 increase in investments in 2004. He reported that property and equipment shows a decrease because of depreciation each year. Prepaid expenses showed a decrease because of cost that had been paid in anticipation of refinancing the mortgage.

Mr. Holder reported that under Liabilities, Mortgage payable, went up because of the new $26,000,000 mortgage and pay of the old mortgage. Total net assets, which is the net worth or equity in a business, went down because of the payment of the defeasance fee of $4 million on the old mortgage.

Mr. Holder reported on the consolidated statement of activities, (pages 3, 4, and 5) which is the same as an income statement for a business entity. He pointed out that membership annual dues decreased and experience-rating refunds shows a fluctuation from year to year. Mr. Holder reported that there was an increase in general conference due in large part to the exhibitor booths. General Conference expenses also went up. Mr. Holder said the most significant decreases in revenue are, under general net gain on investments and under Invested reserves, net gains on investments.

Mr. Holder reported that under expenses, the most significant change is salaries and related expenses, which were up. Pam Buckler said that a new credit card company was selected which shows a reduction in credit card fees.

Mr. Holder reported that the building expenses were very comparable to last year but down slightly. He reported the total expenses for the year were $9.8 million. Mr. Holder said that the change in net assets from operation is key; net income from operations, $3.4 million lower 2005 as opposed to $4.2 million in 2003, a decrease of $800,000. This fluctuation is due to gain on investments because of market conditions.

Mr. Holder reported that the loss of extinguishment of debt includes two numbers. He said the loss includes the defeasance fee of $3.9 million and $890,600 of deferred debt expenses that was amortized on the old mortgage over the life of the mortgage.

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Mr. Holder reported on consolidated statement of cash flows, which shows where the cash came from and where it went. He said that for the year cash increased by $826,000 as compared to 2003 where cash decreased by $970,000.

Mr. Holder encouraged the members to read pages seven through thirteen, which contained the notes to financial statement. He said that notes eleven and twelve are required disclosures. Mr. Holder said that pages fourteen through twenty-four are supplemental information to help to understand the report further.

Auditor Committee ReportColonel Darrell Loyd reported that the committee met yesterday afternoon with Robert Holder, Bill Malone and Leslie Pine, and they discussed some tax issues about the associate membership programs that are being worked on.

Colonel Loyd reported that the auditors presented the draft audit report to the committee and they discussed the required communications. He said there were no special concerns and no weakness in internal control.

Colonel Loyd reported that they discussed audit adjustments and significant progress had been made in this area. This year 38 adjustments were made, mostly made by management. The remaining were normal adjustments.

The Audit Committee recommends the approval of the audit report after the final property tax adjustment is made. General Taylor called for a motion to accept the audit report. So moved General Arflack. General Hargett seconded. Motion passed.

Treasurers Report:General Ross offered comments on the audit report. He said that the building was doing fine, 100% occupied. General Ross reported there are no vacancies due for the next two years.

General Ross reported that after the difficult year of refinancing the result is that the monthly payments are lower. He said that the program of paying for the building in 15 years is live and well. He said that there is a note that has a balloon payment in 15 years but they have created a sinking fund that will take care of the balance due in the 15th year. General Ross reported that in fourteen and a half years the building would be paid for in full.

General Ross reminded the members that the second mortgage is due to be paid off in two years and NGAUS will have more money to spend and stay well within the business plan.

General Ross said they left Pentagon Federal credit card program because they proposed to charge our members 1% higher on a NGAUS credit card than if they came to the credit card company directly. General Ross said they opted to go with another credit card company, thus receiving a little lower rebate.

General Ross reported the growth rate on investments has slowed considerably. He said we are still doing quite well and he expects to stay in the 10% to 12% range. He reported they had met with the Finance Committee in Madison, Wisconsin at their facility and they were doing a great job in keeping on top of things. General Ross said they ran concentration checks to make sure they are staying within their investment policy.

Colonel Loyd said that he did not think that the Board has formally designated a sinking fund. He said that they had talked about setting aside $750,000 a year for the sinking fund.

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General Ross said that needed to be researched and they would take that on as a tasker. He said they would check with the auditors to see if they could call this a restricted fund based on what we have already. General Ross said that if the Auditors were uncomfortable with that he would ask that they designate a board-restricted sinking fund.

Colonel Loyd said the Auditors are researching to see if it needs to be added to this audit report.

Pam Buckler said the Auditors are currently researching the issue and they read the minutes and the fund had not that qualified. Pam said that if we could get it into the minutes worded that the funds is being set up this year and shown in the budget this year as a formality.

Colonel Loyd moved that we adopt and ratify the establishment of a Board of Directors’ restricted fund which will be a designated sinking fund dedicated to paying off any balance due (balloon payment) at the end of NGAUS’ fifteen year building mortgage note. The Treasured shall be authorized to ensure that NGAUS resources are transferred into this sinking fund at least annually in and amount to assure that the anticipated balloon balance will be available on the building note maturity date. General Dutko so moved. General Arflack seconded. Motion passed.

Mid-Year Budget Report:Pam Buckler reported that the overall budget did not change projected negative $25,000. She said revenues projections increased $95,450. Pam reported that life dues was increased $2500, state dues decreased by $2000,associate and annual category were adjusted to accrual that can be reflected, magazine subscriptions was decreased by $300,and advertising increase of $40,000.

Pam reported that under the general fund there is a projected increase of $21,700. She said that under miscellaneous there is a projected increase of $5000 due to increased Industry Day attendance in 2004.

Ms. Buckler reported the overall expenses increased $95,000. Salaries and related expenses decreased $37, 500. She said the funding for vacant positions was removed and the cost of medical insurance adjusted. She said that Communications lowered postage projections by $2000, furniture and fixtures projections increased $46, 500 and the expense for two additional Blackberries, technology upgrades and the accounting software. There was an increase in membership services of $13,000 due to early bird program. Vehicle expense decreased.

Pam reported an increase in general and administrative of $12,500 to provide for 2004 and 2005 credit card affinity payments to the states. She reported that travel and staff expenses decreased.

Pam reported an increase in public relations account due to the overhaul of the website. The Task Force account was decreased $5000, Legislation was increased $5000, magazine increased $17,000, General Conference increase of 34,300, general services increased $14,300, committee increased $1000, and Board of Directors increased $5000.

Building Report: Pam reported that the projected revenues for the building are increased $65,175. Pam said that total projected expenses increased $26, 000. Pam reported that John Hancock waived the amount that had to go into escrow by $34,000 in anticipation of the tax exemption. General Poythress asked the status of the $102,000 tax delay issue and has it been resolved. Pam said that the last word from the lawyer is that the tax-exempt status took effect May 5, 2005, which should be reflected on the next tax bill, which will be reflected for part of the year.

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General Ross said that on four occasions they have thought the tax-exempt status issue was resolved, but something else happens to delay it. There have been many problems with the DC government requirements.

Pam reported a projected net cash increase of $26, 000 for the building. She referred to the consolidated operating report on page 47, which shows the position of the cash needed for operations from outside sources.

General Ross commented on the budgets in general. He said of the $60,000 for building improvements, $50,000 is for wiring.

Pam mentioned that Pete Reneghan, the Finance Committee chairman, had a pacemaker inserted and was unable to attend the meeting. He and Mr. Kirven, the Building Committee Chairman, planned to attend the November meeting.

General Taylor said he would defer approving the budget until we heard from NGAUS staff.

Vice Chair, Army Report:General Williams reported that his goal, as vice chair of Army, is to bring together different committees and task forces in NGB and AGAUS. He said that some progress had been made. He said that the By-Laws of the AGAUS Strategic Planning committee were changed to include a member from the Armed Forces Reserve Policy Board as a member of that standing committee. General Williams said his goal is to get all the different task forces and committees to speak with one voice.

General Williams reported that there were too many meetings and he has asked his chief of COSAC to consolidate the meetings in an effort to cut down on the frequency of staff to be away from their states. General Williams reported that the number one priority for all should be full time support, which is critical to the missions in the Army Guard. He said in a briefing with the vice chief of the army, he has agreed to look at the requirements in the states. A study was done; “ the re-validation for full time support requirements”. The report found in all the states that were evaluated, at company level there is a need for additional administrative personnel, supply personnel and IT personnel. These findings were the same for the Guard and the reserve. This finding will be briefed to the Vice Chief of Staff of the Army in the next few months with plans to have it POMed in 06 for additional force structure.

General Williams said the some other issues are elimination of BAH1 and BAH2, recruiting and retention, the home ownership fund, army business fund, tax credit for employers, small business fund and the $15,000 bonus.

General Williams reported on the Title 11 issue, which is the active duty soldiers have been earmarked to train the Army National Guard. He said there is shortage in company grade officers, 6000 lieutenants short, and 105% in colonels, 5% over. ROTC is being looked at and doing automatic advancement to first lieutenants, just like private enlisted soldiers.

General Williams reported other new programs are; guaranteed graduate school, and AC/RC flexibility. He said there is a program where a soldier only has to fill out the 368 to advance active duty and not have the concurrence of the Adjutant General, which is still in the works. General Williams said there is a pilot program for warrant officers to address pay compression, which is a negative incentive. The issue of direct appointment for warrant officer is an ongoing problem. General Williams said that they are looking at alternate PT test to qualify soldiers to go to Warrant Officer training school. He said they have the Predictive Replacement System going well.

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General Williams reported that General Honore’, First Army, will speak at the Business session in Hawaii. General McNeil was invited, but he declined. General Williams asked for ideas for the break out sessions.

General Williams said that he had been remiss in formulating the NGAUS strategic plan, but will get the committee together before the end of the year.

Vice Chair, Air:General Lynch began by saying he wanted to piggyback on what General Williams said about competing committees and priorities among NGB and Task Forces is critical. General Lynch concurred that it is difficult to get everyone on the same sheet of music.

General Lynch reported they are working on getting General Hester, the new PACAF commander , for the Air break out session.

General Lynch said the Air National Guard has been consumed with BRAC in the last couple of months. He said the Air Force recommendations have been devastating on the Air National Guard.

General Lynch said that he would defer his time to have a discussion on BRAC this weekend. He said that NGAUS website is the best source of information and we should use this BRAC issue to generate membership, as NGAUS is standing up for the Air National Guard on this issue.

General Taylor said that the BRAC issue would be added to the afternoons’ agenda.

General Williams said that the C4I Task Force chairman, Reed Beveridge, resigned and if anyone was interested or knew of someone who is interested in chairing that committee, to let him know. General Vavala offered the name of Brigade Commander, 261st Signal Brigade in Delaware, Brigadier General Hank McCann for consideration for that appointment.

General Taylor called for a break to reconvene at 10:00 am.

General Taylor called the meeting to order.

Presidents’ Report: General Koper began by sharing a message he received in reference to the Legislative Alert sent out on TRICARE a few days ago asking for assistance. He said there was immediate response on that from NGA of Kentucky. The message read, “President Koper, on behalf of the National Guard Association of Kentucky, I wrote to Senators McConnell and Bunting and forwarded to all AO’s in the Kentucky National Guard and wanted to let you know the NGAKY had replied”. General Koper sent back a note that replied “Dean we appreciate the help, see the attached victory message”. He responded again to say “ Sir, thanks for the good news, I’ll share it with the rest of our members in Kentucky and rest assure we will stay in touch with our elected officials until this victory is won. Best regards, CW5 Dean Stoops, KYARNG, NGAKY President, deployed to Kuwait”. General Koper said there are members and states out there getting job done and he said there are lots of other story like that one.

General Koper reported that the corporate membership issues have been properly addressed and he did not need to address that issue.

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General Koper asked members to refer to the Geppetto Catering packet. He reported that Geppetto is the firm who does our catering in the building. General Koper said they are professional and the owner is here on site when NGAUS has an event in the building.

General Koper said that we had been approached to consider making a business arrangement with Geppetto Catering as the ROA facility is currently under a one year gutting and renovation of their building. Geppetto Catering already has a working relationship with ROA, which involves catering in their building, as well as marketing rentable space in the ROA building to other outside agencies. We do that here at NGAUS on a limited basis using our own devices. While ROA is under renovation, Geppetto Catering is looking for space so that business will not be lost over the period of renovation.

General Koper reported that NGAUS was approached by Geppetto as a replacement for a one-year trial period to see if we would be interested in entering a defined relationship with Geppetto Catering to provide the same kind of services as with ROA.

General Koper referred to the Geppetto Catering proposal and noted the following concerns; NGAUS is not in the professional meeting hosting business. NGAUS presently rents to a select, limited number of people; the second concern is that the NGAUS facility was resigned to represent an impressive structure on Capitol Hill that reflects the feel of this organization.General Koper voiced another concern that the increased usage would add to wear and tear on the building.

General Koper reported Geppettos has produced a proposal that generates a significant amount of income and includes a reduction in cost to NGAUS and state associations if we enter into an agreement with them. General Koper said he suggests that any agreement be on a time-limited basis with no strings attached.

Colonel Loyd asked if this in fact becomes a rental operation that affects the tax-exempt portion of the building.

Discussion followed on the rental of the building and its status.

General Ross said the Hall of States had been rented out since the building opened. He said that the Geppetto proposal is an expansion on what we have been doing.

General Dutko said that renting the building is an excellent opportunity to educate the public and other organizations, to display the NGAUS museum as well as a great opportunity for NGAUS.

General Hargett said that it maybe an opportunity to come up with Legion De Lafayette members or corporate sponsors who are unaware that we exist.

General Schultz said that the proposal did not give him sufficient evidence to render an opinion.

General Koper said that when he came on board the rental process was already in place and he has no knowledge how it came about, but said he would have to get that to the Board members. Gen Koper reminded the members that the proposal is not a contract but an information paper.

Discussion followed on the frequency of rental of the building and how tax-exempt status would be affected.

Colonel Deering said it is a good idea but he is concerned about availability conflicts with states when they need to use their building.

General Koper assured members that the states take precedence over outside rentals, as NGAUS is not primarily in the rental business.

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Discussion followed as to how long the building has been being rented. Colonel Magill said he did not know.

General Schultz moved to authorize the staff to review the proposal and report to the board with a recommendation, and details to support the recommendation, for a one-year contract with Geppetto. General Vavala seconded.

General Taylor called for discussion. General Bunting questioned the timeline and how would that be handled. Colonel Faber said that could be done by not adjourning the meeting and voting by email or phone.General Hargett asked what the implications are if the rental were a donation to the Education Foundation, which is a tax-free organization.

Discussion followed between Colonel Loyd, Pam Buckler and other members.

General Taylor asked General Shultz to restate his motion.

General Shultz offered a restated motion to direct the staff to research a one-year contract with Geppetto for rental services and to provide a recommendation with supporting details and the vote could to be taken via email. General Vavala seconded. Motion passed.

General Koper said that there was no agreement between him and Geppetto that the test period had to be for a year. General Koper said that he had listed the concerns voiced which were, tax implications, legal concerns, and particularly liability. He asked if there were any more concerns. General Koper was asked to add conflict with the state associations to the list. General Koper said that he had relayed to Geppetto that we have the ultimate say on any renter and the members of this organization always take precedence over outsiders.

General Arflack said that a cut off date needed to be established.

Colonel Magill asked to have the By-laws reviewed to see if it is appropriate to have a meeting without a meeting, or a vote by email, or do you have to have a conference call.

General Vellion asked if the purpose of the agreement is for income to NGAUS or is Geppetto in a jam and we would like to help him out. General Koper said it is both and it would create a positive funding stream for us.

General Koper asked for discussion on the security concerns over and above these public spaces.

General Hughes said that slips and falls should be built in and everything they would indemnify NGAUS on.

General Taylor called for a vote on the motion. Motion passed. Colonel Magill opposed the motion because of a possible By-Laws conflict about email voting. General Hughes said that the motion authorized the email vote whether it is in the by laws or not. Communications Report:John Goheen reported that since May 5 they had given more that 40 interviews on BRAC with different publications across the country. He reported that on May 26, there was a press conference on Capitol Hill, that clearly stated that the Adjutants General had not be consulted on BRAC. It generated a lot of follow up coverage. John reported that there are 80 different BRAC documents on the website.

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John said that as reported at the last Board meeting they had started to explore some RFP’s for the overhaul of the website. John referred to the handout, which showed the homepage of the old website and the new website construction. The new website will be much more user friendly.

John reported that a new feature, NGAUS Notes, is an electronic newsletter which focus on items of general interest. NGAUS members will be able sign up for the NGAUS Notes on the new website.

General Lynch asked who gets the NGAUS Notes. John said that it is currently sent out to ED’s, corporate sponsors and a generated email list. General Lynch suggested that NGAUS Notes be sent to congressional offices also.

General Kennemer said that on Data-guard, the states could enter the email address and through NGEDA, they could request they do that. John said the new website would have connectivity to Data-guard.

General Poythress said that he has noticed a discernable improvement in the quality of the magazine over the last months. He said the volume of advertising and the quality of coverage has greatly improved. General Taylor said that he has heard the same comments.

General Shultz asked when the new website would be effective. John said the plan is to have it ready to unveil in Hawaii.

General Spruance made comments on the how to capture the number of hits to the NGAUS website. The new website will have a counter, General Koper said.

General Ross made comments on the members’ only login portion and how the Guard Muster is accessed on the website and suggested changes. General Dutko said the five-dollar rebate for signing on to the Guard Muster should also be published on the site.

COL Deering commented on the access to congressional sign-on and he would like to keep the same format. John said that would be incorporated into the Alerts section.

Industry Report:Hazell Booker reported that the corporate associate program is doing extremely well, to date there are 124 corporate partners, and of that number, 22 are brand new since January and we are and contributed about $30,000 in corporate funds. Hazell reported there 40 Platinum Level corporate members and to display their membership plaques the display wall had to be extended. Hazell reported that there are now three Legion De Lafayette’s since January and three will be honored this afternoon.

Hazell reported that approximately 637 booths have been sold with 20 left at the Hawaii conference site. She said that of those booths sold, 344 companies are represented, and of those only 57 are corporate members. Hazell said that NGAUS is one of the few companies who do not insist that exhibitors must be corporate members. Hazell reported that they are trying to revamp the corporate member program to make sure the incentives are right to bring in more corporate members.

General Taylor asked for an update on Industry Day. Hazell said that the brochures have been printed and would be massively distributed at the conference. There are already five companies signed up. There were 220 last year, with eight people turned away.

Col Salas asked if there was a reason why exhibitors were not asked to be corporate members.

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General Koper commented that Hazell raised some interesting statistics, and we could require the exhibitors to be corporate members, then they would have option of being a corporate member or not returning to the exhibit anymore. The exhibit is the income source, and you have to think about what their reactions would be and what we derive from exhibit income vs. corporate membership..

Discussion followed on the pros and cons of the above issue.

IT Report:Colonel Hunt reported that there were three areas of focus. Number one being the creation of a stable, secure and functional network. He said the second area is maintaining functional and relevant computer hardware including software. Colonel Hunt said the third aspect is audio/visual capability. He referenced the Adjutants General VTC that happened the day before.

Colonel Hunt said that we migrated to Windows 2000 operating system in January; we are also on the 2000 exchange server. He said that we currently have CAT 3 wiring and are operating on one server, and with another server for the Blackberries. He said that as of now there is no automatic backup to our system.

Colonel Hunt said that we now one partially functioning teleconferencing unit with all outdated parts. He said there are limited audio/visual capabilities in the Montgomery Room and the Hall of States with outdated portable equipment. Colonel Hunt said that the hub installed is currently just hanging on the wall. It needs to be relocated and installing a new server.

Colonel Hunt addressed the $45,000 in the budget, for chairs in the Hall of States, other pieces of furniture for offices and some computers in the building. He said that a tape recorder had to be purchased and the Polycom System in the Montgomery Room and the accounting software. Colonel Hunt said that some long-term projects; are replacing the Hall of States screen; a permanently mounted projector; the audio/visual in the Montgomery Room to include teleconferencing in the Montgomery Room; and upgrade and locating the digital cameras to a secure site in the building.

General Shultz asked whether lease versus purchase had been looked at and had we looked at manufacturers that make the equipment who might provide it for advertising. Colonel Hunt said that the Finance Committee had asked them to look at a wireless system.

Colonel Jardine said he knew some IT companies in the DC area that Colonel Hunt could consult with.

General Vellion moved to support the request to upgrade the infrastructure as briefed. General Dutko seconded. Motion passed.

General Ross made a motion to approve the mid-year budget as presented which will include the briefed items. General Arflack seconded. Motion Passed.

General Koper said that he has been interviewing viable candidates for the vacancies in the Legislation Department. He said that it is his intent to have the lead position either Army or Air with Guard experience and the deputy be the opposite service so that there is expertise in both services at the supervisory level. General Koper said he would like to have those positions filled within the next 30 days.

General Spruance offered some comments on our deployed soldiers.

Legislation Report:Andy Vanlandingham reported on what they are working on this legislative season. He said the Authorization Bill is on the floor and they hope to wrap that up before the August recess. Andy

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reported that the House has already marked up the Appropriations Bill and they are waiting for the Senate mark up. He said that they are waiting to see how the bills go to see how they can work with congressional staffs to let them know what our priorities are before the bills go to conference.

Andy reported that Senator Graham offered his amendment on TRICARE and it was approved. It will be included in the Senate Authorization Bill; the House Authorization Bill has no similar action. Andy said that it is incumbent upon NGAUS to get the message to our members to lobby the House to keep the TRICARE provision in the final, Authorization Bill. Andy said NGAUS had been contacted by Senator Landrieu office concerning offering of a tax credit to employers and he does not know what the outcome of that is yet.

Andy reported there was nothing new on reduced age for retirement; a slide on Air and Army equipment that is listed in the bills and are waiting the outcome, as well as full time manning.

General Lynch asked if there is an increase in technicians or full time people. Michele reported that the bill sustains the current ramp and thus an increase but the House Authorizers and Appropriators decided not to fund. The Senate Authorizers did increase the Army and full time manning ramp by 51members for Army National Guard, and 34 for Air National Guard.

General Taylor asked General Williams if, after completion of the study on transformation modular force the numbers increased significantly. General Williams said that remains to be seen, however the study will give them the money that is needed to fund the added numbers.

General Koper mentioned he had heard an unofficial discussion from NGB requesting improvement to the ramp and increase to manning levels based on requirements of transformation and reset. He suggested that we talk to General Blum and staff on the subject.

Andy attended a briefing on Future Total Force and reported that yesterday the BRAC commission had completed their hearings in the states. The BRAC commission plans a wrap up hearing and their public deliberations start in August. Those recommendations will go to the President on the September 8 and to Congress on September 23.

Andy introduced 1Lt Frank Brogna, who is here from the NJNG, working as a Legislative Analyst in the Legislation Department.

General Kennemer asked if a few lines could be included in the Legislative Alert on TRICARE to send out to members to get the word out to congress. Colonel Faber suggested that a fact sheet be included also.

Sean reported that a section has been included in LEGIT called “Talking Points” to use as a vehicle to get word out to members and the leadership. He said that any input from the field is helpful.

General Koper said that a letter will be included with each Alert that could be used as a guide or modified. A member would only have to select their congressional representative and send the letter.

Resolutions Chairman Report:General Searcy reported the assignments on who will handle the Resolutions at the conference; he and Michele will have Joint; Stephen Joyce and Sean will have Army; and Michael Morgan and Andy will have the Air Resolutions. Bernie will be logistical support. General Searcy said he needed help to recruit two parliamentarians, one Army and one Air.

General Searcy reported the status of resolutions; 22 draft resolutions went to the states and received 119 back. He said that the Army resolutions number was small but deals with a number

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of issues. He said a disc and packet was provided to each area. He said that an update would follow via email when the process is completed prior to the conference.

General Searcy pointed out two resolutions one of which is A52, which deals with the waiver of National Guard association dues for members who are deployed for longer than 180 days, which has been referred to the Finance Committee for consideration. He said the other resolution, C24, is the only one that comes close to dealing with the BRAC issue. He encouraged the members to get their states submit resolutions specific to BRAC.

General Searcy asked that the Board recommend and place as a block 118 draft resolutions rather than 119, as one had been referred to the Finance Committee, along with the host state thank you resolution for consideration by the Resolutions Committee at the general conference. General Poythress so moved. General Dutko seconded. Motion passed.

General Koper said the Finance Committee recommendation on the waiver of dues while deployed, states that “this resolution not be supported due to the cost to NGAUS and the difficulty in managing the program”. The issues taken into consideration were; deployment length for eligibility, deployed location, potential enormous impact on dues revenue and the inequity to previously deployed soldiers and airmen. Should the Board of Directors support the Kentucky dues resolution, at the very least, it is felt that members of deployment must be overseas and in support of the war effort.

Colonel Magill made a motion to non-recommend the resolution from the Board of Directors. General Taylor said it called for a question on the first motion.

General Searcy said the tracking sheets for Army are by issue and Air and Joint are the same as usual.

Colonel Loyd mentioned that some of the resolutions still have brand names. General Searcy said they would be removed as they go through them.

Colonel Felderman suggested a motion that the resolution committee be allowed to update information (dollars and numbers) as the see fit and eliminate brand names. General Wright seconded. Motion passed.

General Williams opposed. He said he did not see what the motion would do because the resolutions are submitted as drafts.

General Taylor and General Koper thanked General Searcy and the NGAUS staff for the work they do on the resolutions process.

Colonel Magill said that he thought that we needed to make a stand on A52.

Colonel Magill made a motion that the Board of Directors on advice of the Finance Committee opposes resolution A52 that deals with the dues waiver.General Hargett seconded. Motion carried.

General Ross suggested an amendment to the motion that we oppose and concur with the resolutions committee that this was not appropriate to the resolution process which will require a by laws change. Colonel Magill said it would not require a by laws change.

EANGUS Report:Chief Brown referred to his handout, which included a briefing from the Defense Advisory Committee on military compensation as well as the GAO report. The key issues of this report are health care cost shares, and change proposals for retirement for active and reserve component. In addition, in the packet is information on EANGUS professional development and the letter from

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NGB giving permission strictly for their Orlando conference and will expire in one year from the date.

The EANGUS Conference is August 21-24, 2005, in Orlando, Florida. AGAUS will have a meeting on that Tuesday. General Lempke will speak on Wednesday. Jason Hall will also be a speaker.

Chief Brown said that EANGUS has a soldiers and airmen emergency relief fund for families who have financial need.

Chief Brown said that EANGUS has been reporting BRAC and have not taken a stand yet and hopefully, in the near future, there would be a position by the Enlisted Association and that position would not be different from NGAUS or AGAUS.

Membership Committee Report:Colonel O’Leary reported that their mission is to provide tools for the state associations to support the growth of membership.

Colonel O’Leary mentioned that Doris Gruber, who is a member of the membership committee, has been diagnosed with brain cancer but would be attending the conference in Honolulu. Colonel O’Leary reported that membership strength is 2% less than last year at this time. He said 24 states showed and increase in membership and 20 states declined. Some outreach approaches are: additional dialogue with a survey, a one hour block at the conference, train the trainer overview, update the brochure and provide support for states in need.

Colonel Deering shared the idea Tennessee uses of giving out a 100% membership award to the commanders in Tennessee, Army and Air, and presenting them at the State Conference.

Colonel O’Leary referred to the strength report handouts.

General Taylor called a recess for lunch to reconvene at 12:45pm.

Company Grade Report:Captain Huss reported that Committee on Company Grade Initiatives is finalizing preparations for the Hawaii conference. They include; call for nominations, report-out list, a survey for feasibility study, confirmation of guest speaker. He also gave the Company Grade schedule of events for the conference.

General Spruance offered a challenge to the company grades to come up with a way to get more members into the Guard Muster. Captain Huss, after conferencing with the area reps came up with the idea that instead of entering individual names, they would enter the entire company.

Captain Huss reported that Captain Ciaramello has been approved to fill the resigned position of Captain Joe Sternisha. Captain Mike Cacciapaglia was promoted to major and that position will also be filled at conference. Other Company Grade positions up for elections are, Area I Army and Air, Area III Army and Area IV Air.

Captain Huss is asking for assistance from the NGAUS staff for a baseline measurement of membership (active, retired, life) of company grade officers. He said that they would distribute a CD and publish an article in the magazine. Captain Huss also asked the Board of Directors for permission to set up at the booth in Hawaii to get exposure.

Captain Huss reported company grades near-term projects include; conduct off-site meeting of CCGI officers to develop by-laws changes; to gain Board of Directors approval of company

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grades in NGAUS Task Forces, to improve communications, and for professional development at the conference in Hawaii.

Captain Huss said the long-term projects include; accomplish measurable increases in company grade membership and mature the process for resolving company grade.

General Taylor said that there is nothing to prohibit the company grades from being on a committee; it is up to the chairs of those committees. General Koper said there are two ways to get on a task force; one is the chair can call everyone who is an O1, O2, or O3 and ask if they are interested or the O1, O2, and O3 can call the chair if they are interested.Captain Huss asked if he needed to write the letter to the Board or the Education Foundation. General Koper suggested that he get with the Museum Advisory Board make sure everyone agrees.

Retired/Separated Report:Colonel Deering reported that his state has been very busy with BRAC. Colonel Deering mentioned that the retirement and TRICARE were in the authorization bill together, but has been split. He said he is hoping that an addendum will be added to that also.

Colonel Deering said that he plans to run for the retired Army position in Hawaii.

Colonel Deering said that he would like to go on record as saying that he has never been prouder of an organization than he is of NGAUS right now. He said that General Koper and staff have done a great job in the BRAC process. Colonel Deering asked General Koper to pass that on to members not in the room.

Colonel Magill added that the retirees’ luncheon would be held at noon after the first business session. The cost is $5 to retired NGAUS members and $25 to non-members. He said the election would take place at the luncheon. Colonel Magill thanked John Goheen for the article in the magazine on erosion of benefits.

Warrant Officer Report:Chief Massey reported that Area III, CW3 Bobby Kennedy, from Georgia, and CW4 Clarence Shockley, from Wyoming are both deployed. Chief Massey said the Warrant Officers had a meeting yesterday and discussed numerous issues. He said that the following issues are included in the legislative objectives for 2006; warrant office direct appointment, bonus, warrant officer pay, and retaining bonuses for everyone.

Chief Massey reported that the Warrant Officer Senior Advisory Council met in March and these are some of their issues: the CW5 warrant officer MOS255Z which is a combination of all the signal MOS’ into a cap at the joint force headquarters, warrant officer identification badge( the warrant officer eagle), protocol issues (housing, parking), professional development.

Chief Massey reported that Vice Chief General Cody asked a group of warrant officers to gather about recruiting and retaining warrant officers. He said the significant point is they are talking direct appointments, but calling it something else.

General Taylor asked Chief Massey to provide the list of invitees. They are as follows:Advisor to the CSA – CW5 Jerry DillardNGB CCWO – CW5 HaynesNGB WO Policy – CW5 ErnstWOSAC Chair – CW5 Sal GreenWO Career Center Deputy Commandant – CW5 WicklesworthWO Career Center NG Asst Commandant – CW5 GephartRecent returnees from Hazardous Duty Zone (Avn & Tech

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Insurance Trust Report:Ron Sutton reported on a portion of the ING report, which covers the cash flow of the Insurance Trust. He reported 2004 total revenue was $2,003,221 and for the first 6 months 2005, the total revenue is $899,314. Ron reported that marketing activities included, 2005 NGEDA conference, South Carolina and Tennessee conferences, and the NGAUS conference in Honolulu, open enrollments ( NH, CO, TN, DE, HI), special demobilized technician O/E (FL, CO, DE, TN, SC), NGAUS website and magazine advertisement for technician disability program.

Ron reported he would be in Florida next week at the EANGUS Conference and at more state conferences throughout the year. He said that because of an open enrollment in California, they received some 30 or more open enrollment forms.Ron said California has invited them back to do another open enrollment.

Colonel Kirkpatrick said that there was a resolution introduced at the Insurance Trust meeting yesterday to amend the Trust Agreement.

Presently the Insurance Trust Agreement does not specifically provide for the appointment of Special Committees. The Insurance Trust recommends that Pursuant to Article VIII, Section (1) of the Trust Agreement, NGAUS amend Article III of the Trust Agreement by adding an additional Section 8, which shall read as follows:Article III, Section 8. Appointment of Special Committees. The Chairman of the Insurance Trust shall have the authority to appoint such Special Committees as are necessary for conducting the business of the Insurance Trust. The effective date of this amendment is July 23, 2005.

Colonel Kirkpatrick said that way you can Motion passed. convert the Insurance Trust Advisory Committee that was set up last time to name them to be the Special Committee for the Insurance Trust and suggested someone move that this amendment be done at this meeting. Colonel Magill so moved. Chief Massey seconded. Motion passed.

Member Benefits: Ron reported that there had been over 200 hits for the NuTravel benefit and 10% resulted in bookings. Ron urged everyone to look at the website and use it.

Discussion followed on the NuTravel website and its benefits.Ron said that Hawaii has a contract with Northwest Airlines and Hazell has the contact information if needed.

General Taylor welcomed General Enslin, who is a NGAUS past president, to the meeting.

AGAUS Report:General Vavala reported that General Lempke was unable to attend due to his attendance at the funeral of a Nebraska soldier. General Vavala reported that at their Omaha, Nebraska spring conference, new officers were elected; General Lempke, President; General Vavala , Vice President; Major General Greg Wayt, Secretary; and Major General Mike Gorman, Treasurer. He said committees and chairmanship positions stayed the same.

General Vavala reported the goals General Lempke has set out; (1) to be constantly aware of the sense of the Adjutants General on various issues and to then communicate to NGB leadership, service leadership (2) to promote communicate with other leadership organizations, (3) to marshal resources, (4) TRICARE (5) End Strengths

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General Vavala said that General Lempke wanted to relay that since being elected that BRAC has consumed his time. He said that since having BRAC chairman Principi speak at their Omaha conference, the Adjutants General have continually pressed for change to the list of BRAC recommendations that will so drastically harm the Air National Guard.

General Vavala said that each week there is a VTC of the AGAUS Strategic Planning committee that help to keep the BRAC efforts on track. He said that because of a BRAC meeting in Atlanta eight Adjutants General organized compelling testimony that clearly made an impression on the BRAC commission.

General Vavala said the upcoming events for AGAUS are; EANGUS in late August, NGAUS in September, at AUSA in October and Senior Leadership Conference in December in Baltimore.

General Vavala thanked General Koper and NGAUS for all the efforts on BRAC. General Lempke wrote that he looked forward to bringing the full power of the AGAUS to the issues the National Guard will face in the upcoming months.

General Vavala said that there were 33 Adjutants General and 21 authorized representatives at the emergency AGAUS meeting held July 22 in the Montgomery Room.

General Vavala said that going into the meeting there was much concern about an excursion plan, authored by NGB and ANG did not have the blessings of the AGAUS. He said that there was concern that the plan would compromise the governors’ authority; the governor is required to consent to any force structure move in the ANG. BRAC appeared to be an illegal force structure plan under the guise of BRAC.

General Vavala said the AGAUS unanimously approved a straw man letter to Chairman Principi and that is the AGAUS plan. He read excerpts from the letter.He said the intent of the letter is to answer the challenge of Chairman Principi and let him know the AGAUS is willing to work with the BRAC commission and the Air Force to resolve the problem, but to work outside the BRAC process because Force Structure changes should not be within BRAC.

General Taylor said that it might be appropriate for the Board and NGAUS that once this letter becomes public to give 100% support from NGAUS to AGAUS.

General Ross said he thought the Board should adopt a resolution to support all the efforts surrounding BRAC.

Colonel Deering said he attended the BRAC meeting in Atlanta on June 30, and thanked the AGAUS for all their efforts.

General Ross restated his motion to have an official position of the Board of Directors and NGAUS in support of removing the Air Guard recommendations from the BRAC process. General Hargett seconded.

Discussion followed on the motion by the members.

General Spruance spoke out in opposition to supporting the AGAUS position because the Adjutants General are commanders and the alternative is for NGAUS and the Board to represent the total membership.

General Lynch said the BRAC law is all about excess infrastructure. He discussed how the BRAC process works. He said that the Air Force averted the effort to deal with Force Structure. General Lynch said that the BRAC law empowers the commissioners; the commission may change a recommendation where they find that the Secretary of Defense substantially deviated

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from the selection criterion or the force structure plan. General Lynch said that he agreed with the stated motion from General Ross.

General Ross said the Board should have a statement like the AGAUS; and should defer the issue and let the members write the position implementation then the motion can state the position to be published at the same time as the AGAUS letter.

General Vavala said that the AGAUS letter is a joint effort from many members of the AGAUS.

General Koper said that General Lempke and the AGAUS have been totally inclusive of him and General Taylor. He shared a word of caution that the BRAC is the most critical juncture for the Air National Guard in its history and it is very sensitive to the possibility that positions may have to change. General Koper suggested when drafting the position document, remember that we cannot afford to reconvene the Board to draft new position papers everyday. General Koper suggested that we not write a position statement that we cannot live with. General Lynch said that he would translate for the President, which meant that NGAUS Board should not take a position that cannot be backed up.General Koper said the BRAC process is serious business, and what ever is written must be carefully considered and flexible enough to move in a direction the would be best for the country and the Air National Guard.

Discussion followed on the excursion plan and the BRAC recommendations.

NGEDA Report:General Kennemer reported that NGEDA would support what the Company Grades are asking. General Kennemer reported that the NGEDA website would be updated next week with current state information. He said NGEDA would host a breakfast in Hawaii, Saturday, September 17, in the conference center. NGEDA executive committee will meet in Hawaii with NGAUS staff and Louisiana to plan the 2006 NGEDA conference from January 15-19, at the Astor Crown Plaza.

General Kennemer reported that he gets many positive responses from his deployed members and membership thanking NGAUS for what they do, but what is the status on TRICARE and Retirement Age. He said that we must continue to carry our message to congress on those two important issues.

CAP Committee Report:Chris Small reported that they had a CAP meeting on May 21st in conjunction with AGAUS and the main topic of discussion was corporate membership versus the status of non-cooperates. He said that on July 18 they had a Breakfast with the leader, with LTG Vaughan, Director of the Army National Guard. He said that there was a follow-on meeting with Hazell after that to discuss the conference CAP meeting and corporate membership.

Awards Committee Report:Colonel Felderman reported that the new company grade award would be submitted at the conference, approved and ready for next year. The members of the Awards committee are Colonel Murray Hansen, General Broomhall, Major Graybill, Major Jacobson, and Rich Arnold on the NGAUS staff.

Colonel Felderman reported the recommendations and considerations of the Committee are: For the Truman Award: Senator Lindsey Graham and Senator Richard LugerFor the Montgomery Award, Senator Mary Landrieu and Governor Kathleen Sebelius: General Taylor asked for counsel on how the procedure went last year. Colonel Faber said the vote was done in the executive session.

General Taylor suggested a motion to vote en bloc on the Charles Dick, Patrick Henry, Distinguished, Meritorious Service, Meritorious Certificate, and Valley Forge Cross for Heroism,

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Valley Forge Certificate and the Garde Nationale Trophy. COL Deering so moved. General Poythress seconded. Motion passed.

General Koper asked for clarification on the Patrick Henry Award, as he was not sure all the names on the list belonged on there. Colonel Felderman explained that based on last years criterion that on guidance from the Board that retired members could fit into that category.

Board of Directors Forum:General Taylor reported on the Professional Development letter that EANGUS had received from Chief of NGB authorizing one enlisted member for every one thousand members of the Army and Air National Guard to the conference and other stipulations. He said the NGAUS had yet to receive a similar letter.

General Koper reported that this correspondence was after the packet that all members had received. He said in summary, application was made to DoD, they wanted NGAUS and EANGUS to make separate applications and they did and got a positive result. General Koper said when the application was sent, an agenda was not yet set so a straw man was used. General Koper said the purpose of the message that was sent out was to convey that there was no blanket authorization from DoD to do anything. He said that the Judge Advocates in the Guard Bureau sent out an all states JAG notice that said approval was required by the Chief of the Guard Bureau. General Koper said three days went by and when the Chief came to meet with him and General Lempke, he asked to meet with him. He said he asked the Chief if he would personally read the package with an eye toward a solution. General Koper said he offered, based on the fact, that Adjutants General were empowered to make decisions involving personnel and equipment, would he could not see his way clear to allow them to make a decision about sending soldiers and airmen to an appropriate educational endeavor and trust them to determine that they had sufficient funds in their budget. The Chief said he would read it. General Koper said that later that day he received a call from staffers at NGB that the Chief had suggested they come over right away and work out all the details. General Koper said that he did hear from the Chief a few days later and he asked him to send an agenda. He said that he decided t not to take action until he spoke with the Board. General Koper said we still do not have a set agenda ready yet.

General Koper said that the Chief has a minimum time standard involved before he will issue a waiver of policy on an individual event basis and that number is 4-6 instruction hours per day.

Discussion followed on the agenda and time constraints surrounding conference events.

Chief Brown said the he hoped that EANGUS had not set a precedence that we are stuck with, that was not the intent; they were responding the way the letter read to them.

Discussion followed among the members about the number of hour’s criterion. General Bunting said that at least they had the letter of approval from OSD and not to back off from what we are doing, but the first year just proceed carefully because of the scrutiny, but proceed and get better at it as the years come.

General Koper asked for direction from the Board. General Bunting suggested that since folks from NGB will be in Hawaii at the same time as the conference to set up the Professional Development to correspond with those hours and ask them to come do the training. General Hargett agreed.

Discussion followed on who has the authority to grant the requirements for conference Professional Development.

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General Poythress said he had two points; this conference will be a media event and we need to be very well prepared to respond; next point was getting approval to use mil air.

General Hargett asked why would we not ask the chief to develop seminars and the agenda for the young commanders.

General Koper said there is no problem with getting instructors, the problem is, the time.

General Taylor asked General Bunting to work through his Professional Development Committee to get something to the Chief Blum.

General Taylor called for Executive session.

General Blum Report:General Taylor asked General Blum about Professional Development. He said that EANGUS had sent an agenda that met the DoD criterion to be recognized as Professional Development, which included an allocation based on population so that all states were treated equally.

General Blum said that they needed an agenda from NGAUS, 6 hours in a 24 hour day, up front.

General Hargett suggested that there be an event sponsored by the ANG and the ARNG outside the NGAUS agenda that the junior officers could attend. General Blum said that he wanted to do that but said it appeared that he was trying to subsidize the conference.

General Blum said there is a disadvantage to NGAUS having the conference in a different state every year, and if NGAUS could come up with a model where every other year the conference would be in DC then he could subsidize it with federal funds.

General Blum said that now more than ever the strength of NGAUS and EANGUS is needed. He said that he wants to see that NGAUS and EANGUS get the same treatment as the Air Force.

Discussion followed between General Blum and members about the professional development issue. General Blum asked that members to look at the location and timing of the conferences and he will work with NGAUS down the road.

General Shultz asked General Blum if the l in 1000 subject to discussion. He said yes that was all he had funds to support this year. General Blum said that the Adjutants General should have total discretion.

General Taylor said the Board had the guidance it needed and to do something for the Hawaii conference it has to be soon.

General Lynch asked General Blum what is the next step for BRAC. He referred to General Vavala who referred to his earlier briefing.

General Blum said he thought AGAUS did the most effective thing they could do. He said there are others such as the governors and congress that all have different agenda and will engage. General Blum said that now is the time for NGAUS, EANGUS, AGAUS and the NGA might be effective in drawing up legislation that make this the last BRAC the National Guard participate in.

General Blum said that as the Chief of the Bureau he could do nothing.

More discussion followed on the BRAC process.General James said the DoD has to be forced to sit down with the ANG and the Adjutants General. He said DoD is in denial.

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General Blum said the Air Force could submit an amended list if DoD would allow them too. General Hargett said that DoD would not throw out the list.

General Blum said that they had gone to General Moseley and agreed they would set the PAA for the Air Guard. He said they had gone to the Air Force and gotten them to agree to an unlimited number of Guard associate units and active associate units. General Blum said that he made the commitment to the each governor that each state would have a flying unit.

General Blum and General James said they were not able to share information due to their title 10 status.

Discussion followed about the BRAC process issue.

General Lynch asked how they could make an input now in the process and the BRAC commission has the latitude to make changes if the see fit.

Discussion followed about how to proceed in the BRAC process.

Colonel Felderman asked what he saw as the linkage between Joint Force HQ’s and NORTHCOM as a possible training readiness oversight. General Young said it was good.

General Dutko said thank you for the ESGR person that General Blum gave them, and he asked if they would get the administrative support. General Blum said yes he would.

General Vaughn Report:General Vaughn was welcomed and began his report. General Vaughn said that this is a very critical time. He said that 71,106 soldiers are mobilized. General Vaughn said that the goal is to broaden the recruiting base to 300,000 part time soldiers and pay them for success. He said we need to go to a decentralized recruiting force. General Vaughn said we need to help the army to break down the culture of competition. He said they are going to insist the Army move more resources over on the other side of mobilization so we do not have revalidate all the time. General Vaughn said now is the opportunity to end up with the kind of Force Structure you want and to think through what we will look like in ten years.

General Taylor thanked the NGB staff for coming. He adjourned the meeting at 5:15 PM. The Legion de Lafayette was presented to Smith Detection, Massachusetts National Guard and Sikorsky Aircraft. There was also a reception to honor Col (Ret) Bill Goss and Colonel (Ret) Paula Kougeas who had recently resigned from the NGAUS staff.

Sunday, July 24, 2005

Members Present:BG Robert TaylorMaj Gen (Ret) William LynchCOL Al FaberBrig Gen (Ret) Kenneth L. RossLTC Catherine CorkeryMG Frank VavalaMG Claude WilliamsBrig Gen (Ret) Ronald ShultzLt Col Murray Hansen

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LTC Darrell D. LoydMaj Gen Al WilkeningBrig Gen Frank RezacCol Raymond JardineCOL (Ret) Don DeeringCol (Ret) Ray MagillCPT Darrin HussCW5 Larry MasseyCMSgt Ed Brown (Non-voting)BG (Ret) Marshall Kennemer (Non-voting)Colonel Andrew SalasMG Gus HargettMaj Gen David PoythressCOL Bob FeldermanBrig Gen Brod VeillonBG Norman ArflackBrig Gen (Ret) Robert Dutko

Members absent:LTC Steven JoyceCapt Mike TaylorMaj Gen Roger Lempke (Non-voting)MG Ed WrightMaj Gen Tod BuntingMG Glenn Rieth

Also present were:Maj Gen (Ret) Gordon StumpCol (Ret) Butch DowseCOL (Ret) Tom KirkpatrickBrig Gen (Ret) William SpruanceMG (Ret) James HughesBrig Gen (Ret) Stephen KoperMG (Ret) Ronald HarrisonCaptain Shelia NeidighMs. Hazell BookerMs. Pam BucklerMr. John BucklerFrank BrognaLTC Wayne HuntColonel (Ret) James PritzkerWarrant OfficersLoretta Fills

The Sunday morning meeting began with an Executive Session.

Education Foundation Update:General Koper reported that General Ross had chaired the Friday meeting. General Koper gave the update as Jason Hall was on leave for the day.

General Koper reported: the audit report was presented and accepted by the board, fundraising update by General Dutko, museum and Normandy Monument update, and the OEF/OIF exhibit. The mid-year budget review was presented, and accepted with the addition of $5000 contingency fund. Museum improvements included alert signs, a recognition plaque, entrance and exit signage, and a new museum brochure.

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General Koper reported on the Fort Stevens event held on July 9 commemorating the battle of Fort Stevens. He thanked those who participated in the event.

General Koper said there are six new names that qualify for the Medal of Honor Gallery, and an addendum is being added to the wall to include those names.

General Koper reported there had been some problems with the company making the challenge coin that had caused a delay, but we hope to have the coin produced soon. He said the NGEF Newsletter is being worked on and will be ready for the NGAUS conference.

General Ross added there was discussion in the meeting yesterday about an advisory committee and the Trust Agreement was amended to include that change. He also wanted to point out that the Education Foundation continues to operate with a deficit.

General Taylor asked the Secretary to read into the record the actions taken in the executive session.

(1) Colonel Magill made a motion, seconded by Colonel Hansen and voted unanimously to not accept the flag coin fund raising program.

(2) Colonel Magill made a motion, seconded by General Hargett to accept the awards as voted on and presented by the committee and voted on by the members in the executive session which would award the Montgomery Medal to Senator Landrieu and the Truman Award to Senator Graham

(3) Colonel Felderman made a motion, seconded by General Poythress to award Senator

Lugar and Governor Sebelius the Charles Dick Medal of Merit

(4) The salary report recommendation was offered by Genera Dutko, and seconded by Colonel Loyd, and voted unanimously.

(5) The employee staff manual was offered by General Hargett, seconded by Colonel Felderman and accepted unanimously.

Conference Update:Pam reported on the draft sequence of events handed out to the members. (See website) She said the Conference Memorandum will be mailed and emailed to members on Monday.

Captain Huss asked a question about Professional Development sessions. General Koper said the Professional Development issue is yet to be worked out.

Pam reported the Conference Memorandum is the standard memo that is sent every year. The last day to request, a refund from the Hawaii Guard is July 29. Pam said the contact person for room refunds is Russ Kraus.

Pam said the Hawaii Guard will provide transportation on the 15th and 16th, two days before the conference, and one day following the conference on 20 September. Delegation secretaries are responsible for registration for the state delegations on the registration software, which the bus company will use to determine who needs transportation assistance. Robert’s Hawaii is the shuttle Bus Company.

Colonel Jardine mentioned that the attire for the conference in aloha wear.

Business Session Report:John Goheen reported the Business is still very fluid as to speakers. The Governor is expected at the first business session as well as there will be a cultural celebration.

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John said there have been 19 invitations for speakers and only one confirmed, Admiral Keating from NORTHCOM. He said General Abazaid wanted to speak, but his schedule did not permit him to do so.

General Taylor said the idea of getting deputies to speak is a good one. General Koper said he received a personal regret from General Mosley, but NGB is working to get him to change his mind.

General Taylor made recommendations for Conference Committee Chairmen: Committee on Nominations, Brig Gen Brod Vellion: Area II Caucus, LTC Catherine Corkery; Area V, Andy Salas; By-Laws, BG Harry Burchstead; Credentials and Rules and Parliamentarian, Colonel (Ret) Ray Magill; Finance Committee, Lt Col Craig Jones to replace Luke Goodwin; Colonel Ray Magill, Retiree Caucus and Company Grade Caucus, TBD. General Dutko made the motion, and was seconded by Colonel Loyd. Motion passed.

Colonel Loyd asked if the Building Committee/Finance Committee report needed to be accepted. He said there were some items that needed to be addressed.

General Ross moved to adopt the Finance Committee Report as provided to the council in writing. General Hargett seconded. Motion passed.

General Shultz asked in discussion if the IT upgrades are included in that report.General Ross said the IT portion was presented to the Finance Committee to comment on and the recommendation came from NGAUS staff and the Finance Committee recommended they look at a wireless system.

Colonel Kirkpatrick said he needed an authorization to put the sinking fund contribution into a separate Smith Barney account and a resolution authorizing that account to be opened and for the signatories on that account to be General Koper and Pam Buckler. So moved General Dutko. Seconded by General Arflack. Motion passed

Colonel Kirkpatrick said the second issue is the amendment to the healthcare plan for the NGAUS employees that allows a 90-day grace period for the employers to be able to file claims for medical expenditures they have made to be reimbursed by the plan. This addition to the plan requires a signature by General Koper. So moved by General Vellion. Colonel Magill seconded. Motion passed.

Colonel Felderman said that General Wilkening and General Rezac in Area V are not running for reelection and should be recognized by NGAUS for their time and dedication. All members unanimously agreed.

General Taylor called for a short recess after which there would be discussion on the position paper.

General Ross asked members to look at the position paper given them and to make any changes they might have. Discussion followed between members on the position paper and the changes to be made. Final Position paper can be found here. http://www.ngaus.org/BRAC/BOD%20BRAC%20Position%20Paper.pdf

Colonel Magill recommended approval of the position paper as amended. General Hargett seconded. Passed by unanimous vote.

General Lynch the BRAC Commission Legal Counsel legal opinion; “where the committee finds substantial deviation or legal bar it must act to amend the recommendation where possible to correct the substantial deviation or overcome the legal bar”. In re Title 10/32; “Where amendment

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to correct the substantial deviation or overcome the legal bar is not possible the commission must act to strike the recommendation from the list”.

Chief Brown said that EANGUS would mirror the NGAUS Position Paper along with a cover letter. He said that their letter would be ready by Tuesday.

General Lynch suggested that the timing of the publishing the letter be staggered for AGAUS, NGAUS, and EANGUS.

Discussion followed on what could be done to influence the BRAC commission.

General Koper suggested that the members give the parties we are asking time to do something.

General Lynch suggested that it is important for NGAUS to indicate to the members that we are taking a leadership role. General Koper said the position paper will be in NGAUS Notes and LEGIT.

More discussion followed on the timing of the publishing of the paper.

Chief Massey presented to the Board the shirts of one of his corporate sponsors with the NGAUS logo that are available for sale. He can be contacted by email at director@nga.net if anyone wants to buy one.

General Taylor thanked General Wilkening and General Rezac for their service. He also thanked Captain Huss who will be deploying soon.

General Taylor said the next Board of Directors meeting will be November 18-20, 2005.

General Koper gave an update on the Iowa conference withdrawal. He said that contact with Maryland Adjutant General Tuxill had been made and on August 11, Colonel Hunt, Pam and he will meet with Maryland representatives.

General Dutko said he would like to acknowledge a donation of $100 from Colonel Felderman for NGEF.General Ross said that he would like to express his appreciation to the Board for the Patrick Henry Award.

Colonel Faber suggested if anyone wanted to serve on the Strategic Planning Committee, to send him an email.

General Taylor called for a motion to adjourn. So moved General Arflack. Second Colonel Felderman. Motion passed. Meeting adjourned at 10:05 am.

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