business meeting handout materials (3)€¦ · motion: a motion was made by jeff schwalen of hiway...

MnCUN Annual Meeting & Convention 2013 Business Meeting

1

Friday, May 17, 2013 –– 9 a.m.‐10:30 a.m. DoubleTree by Hilton Hotel, Bloomington

Order of Business

1) Call to Order

2) Pledge of Allegiance

3) Registration & Determination of Quorum, Adoption of Rules of Order

4) Agenda

5) Minutes of the 2012 Annual Meeting

6) MnCUN Board Chair & President’s Report Guest Speakers: Credit Union National Association Board Chair Pat Wesenberg, Central City Credit

Union, Wis. Minnesota Department of Commerce Commissioner Mike Rothman Mary Dunn, Credit Union National Association Senior Vice President & Deputy

General Counsel

7) MnCUN Board Secretary/Treasurer’s Report

8) Report of MnCUN Board Audit Committee

9) Report of the MnCUN Election Committee

10) MnCUN Bylaw Amendment Discussion & Vote

11) Committee & Organizational Reports CUNA Mutual Group Awards Committee MNAP Committee Credit Unions for Kids

Family Involvement Council Alloya Corporate Federal Credit Union Cooperative Network

12) Announcement of MnCUN Bylaw Amendment Results

13) Old Business

14) New Business

15) Adjournment


2

Business Meeting Rules of Order

1) Roberts Rules of Order Revised shall govern the meeting unless inconsistent with Articles & Bylaws.

2) The Elections Committee shall conduct all elections and prescribe the procedure

thereof. It shall report results at the meeting.

3) Only voting representatives shall be entitled to the privilege of the floor. All others must obtain consent of the meeting body.

4) A voting representative desiring the floor shall address the Chair and state his/her name and credit union.

5) No person shall speak for more than five minutes or more than twice on the same question, and no person shall speak the second time on the same question until all others desiring the floor have been heard.

6) These rules shall remain in force except as amended or rescinded by a majority vote at this or any annual or special meeting.

7) A motion for the previous question (that is, to shut off debate) shall be supported by 50 votes cast by voting representatives.

8) A motion for a division of the house shall be supported by 50 votes cast by voting representatives.


3

MnCUN ANNUAL MEETING & CONVENTION BUSINESS MEETING MINUTES DoubleTree Hotel, Bloomington

April 13, 2012

The meeting was called to order by Network Board Chair Kyle Markland at 9:05 a.m. Markland thanked Katie Anderson for singing the National Anthem. Markland appointed Witt Fram of Peterson, Fram & Bergman as Parliamentarian. Mai Yang was appointed Recording Secretary. Markland declared a quorum based on the 73 credit unions represented. No additions were made to the agenda.

MOTION: A Motion was made by Jeff Schwalen of Hiway Federal Credit Union to adopt the Rules of Order as printed in the Annual Meeting handout and seconded by Kelly McDonough of First Alliance Credit Union. The motion passed.

MOTION: A Motion was made by Karen Fleming of HBI Employees Credit Union

to adopt the agenda as printed and seconded by Steve Ahlness of Greater Minnesota Credit Union. The motion passed.

MOTION: A Motion was made by Gail Krall of Minnesota Power Employees

Credit Union to accept the 2011 Annual Meeting Minutes as printed on pages 3‐12 of the Annual Meeting handout and to dispense with the reading of said minutes and seconded by Richard Nesvold of SouthPoint Federal Credit Union. The motion passed.

Board Chair & President’s Report Markland reported that in 2011 credit unions around the state and country were put into the financial services spotlight due to the social media campaign called Bank Transfer Day. This event urged consumers to do something about their discontent with their banks. Markland stressed that now is the time for credit unions to increase their marketing efforts to take advantage of the opportunity. Cummins reported that throughout 2011, the Network has been working to develop measurements for its success. Staff has determined that the best way to measure MnCUN’s effectiveness is to measure the growth in credit union market share. This focus has allowed the


4

Network to view all of its strategic initiatives through this lens and has led to the development of several new initiatives. The main projects for 2012 include working with a public relations firm to develop a statewide consumer awareness campaign called Bankziety. This campaign is geared toward consumers ages 21‐35 years old and educates them on the benefits of credit unions. This initiative uses online channels to position credit unions as the cure to financial stress and frustration. Campaign components include an essay contest, website engagement contest and media relations activities. The website, which launched at the end of March, can be found at www.see‐you‐later‐bank.com. Markland added that in addition to the consumer awareness campaign, the Network is also providing credit unions guidance on how to attract and retain younger members. This year, the Network partnered with the Filene Research Institute to develop a research report that provides Minnesota credit unions with state‐specific research on Gen Y consumers. Both the consumer awareness campaign and the Filene research are being funded by the Network and through voluntary contributions to the Minnesota Network Advertising Program (MNAP). Cummins reported that the Network introduced several new products this past year, including the fee‐based Compliance Services Program. Through this cost‐effective program, credit unions can hire a trained compliance expert to come into their credit union on an ongoing basis or to help with specific projects. Also, through a subscription program with PolicyAid, credit unions can gain access to comprehensive online policy library. The Vice President of Network Services Corporation reported on the importance of Shared Branching. Bill Raker, President & CEO of US Federal Credit Union and chairman of the Board of CO‐OP Shared Branching also provided a report. He stated that Share Branching allows credit unions around the country to pool their resources to help each other more effectively and efficiently serve members. Members whose credit unions are part of Shared Branching can make deposits, withdrawals, loan payments, transfers and many other transactions at more than 4,500 locations across the country. Though Shared Branching, more than 43.8 million members have access to greater convenience and conduct 97.5 million transactions a year. Shared Branching ranks fourth amongst the most convenient financial institutions. Raker also noted that the Financial Service Center Cooperatives (FSCC) merger into CO‐OP Financial Services earlier this year allows for an even greater presence in the financial services marketplace. Markland reported that one of the many tools used to assist consumers in locating a credit union is on online website called aSmarterChoice.org. This website was launched in February of 2011 and serves as a tool to educate potential members and the media about the importance of credit unions. It features a comprehensive credit union locator, which includes membership information for credit unions in Minnesota and around the country. Mark Cummins served on this committee to help develop this site, and the Network’s Director of Communications Rachel Anderson served on the advisory committee for a Smarter Choice.


5

Special Guest, Bill Cheney, President & CEO of the Credit Union National Association recognized the Network Board for their service to Minnesota credit unions. He reported that credit unions fared better than banks during the financial crisis and came out strong. Credit unions saw an increase in membership growth from 2009 through 2011. Cheney reported that more than 193,000 consumers visited aSmarterChoice.org in 2011 and of that number, 185,000 searched to join a credit union. In the past, credit unions have let the banks set the tone but now the approach is to oppose banking legislations unless it makes sense to credit unions. Stressing that credit unions need legislative and regulatory relieve to better assist its members, he also emphasized how member business lending (MBL) legislation will help credit unions increase loans to small businesses. Due to the impact the passage of this legislation would have on credit unions' credibility and position on Capitol Hill, Cheney urged all credit unions to support the MBL legislation. Markland added that the importance of credit unions’ involvement in political advocacy cannot be overstated. This year, the Political Involvement Committee (PIC) set a goal of having 100 percent employee participation in the action alerts sent out by the Grassroots Education & Action Team (GREAT). He stressed that it is imperative to have full participation in GREAT. Another goal set by PIC is the Fair Share Fundraising Goals. This program asked everyone to contribute their fair share to political fundraising by raising $20 per credit union employee for the state or federal political action committees. Cummins reported that at the Governmental Affairs Conference (GAC) this year, the Network recognized Lynn Kothe of North Memorial Federal Credit Union and Russ Plunkett of Postal Credit Union by inducting them into the Credit Union House Hall of Leaders for their work and support in helping the Network achieve its political goals and initiatives. Kothe was presented with the CU Hall of Leaders plaque. Plunkett was not present to accept his plaque. Cummins also reported that over the past year, the Network worked with the IRS to resolve credit unions’ tax exempt status. The issue was caused by an error made by the IRS. After many months of working with the IRS, the Department of Commerce, CUNA and several accounting agencies, the issue has been resolved. In addition to working on legislative and tax exempt issues, the Network also focused on distinguishing credit unions by joining the celebration of the International Year of Cooperatives that kicked off on Oct. 31, 2011. Earlier this year, the Network developed a press release that highlighted credit unions that are actively involved in the cooperative movement. Within the next month, the Network will work with the Cooperative Network to develop a media exclusive focused on cooperatives. Markland and Cummins congratulated and recognized the following credit unions and individuals for awards received over the past year:

Kristina Wright, MnCUN, Vice President – Association Services was named as one of Finance & Commerce’s Top Women in Finance.


6

HomeTown Federal Credit Union opened the first student branch in Minnesota. Greater Minnesota Credit Union was recognized with two national financial literacy

awards, first place in the Desjardins Youth Financial Education Award and honorable mention in the Adult Financial Education Award.

Kyle Markland, President & CEO of Affinity Plus Federal Credit Union received the Credit Union Times’ Trailblazer CEO of the Year.

Kelly McDonough, President & CEO of First Alliance Credit Union was recognized as one of the Extraordinary Rochester Women for 2011.

Keith Malbrue, COO & CIO of Affinity Plus Federal Credit Union received the Minneapolis/St. Paul Business Journal’s 2011 CIO of the Year.

Dennis Bauer, CFO of Postal Credit union was named a finalist of Minneapolis/St. Paul Business Journal’s 2011 CFO of the Year Awards.

Hometown Federal Credit Union was recognized by Minnesota Business Educators for its outstanding contribution to business education.

Postal Credit Union was named the Principle 10 Best Companies for Employees Financial Security by the Principle Financial Group.

SouthPoint Federal Credit Union was honored with the CUNA Operations, Sales & Service Council’s Best Practices Awards. They were also selected by Raddon Financial Group as one of the top 20 highest performing credit unions in 2010.

TopLine Federal Credit Union was honored with a direct mail Award from the Midwest Direct Marketing Association.

Mid‐Minnesota Federal Credit Union and Affinity Plus Federal Credit Union received Credit Union Executive Society’s Golden Mirror Awards.

Affinity Plus Federal Credit Union was the winner of the 2011 CUNA Technology Council’s Best Practices Awards.

Kyle Markland was named the 2011 Outstanding Professional of the Year. Kay and George Rossez of Minnesota Catholic Credit Union received the 2011 Volunteer

of the Year Award. 2012 Professional and Volunteer of the Year awards winners will be announced at the annual awards banquet. Markland recognized the following special guests: Commissioner Mike Rothman of the Department of Commerce and Credit Union Program Director Carl Schwartz. He thanked the sponsors of the conference, including the following Gold Level sponsors:

• AmeriCU Mortgage • Cachet Financial Solutions • CUNA Mutual Group • CO‐OP Financial Services • MnIPC

Markland encouraged attendees to take advantage of the conferences educational sessions, networking opportunities, and the tradeshow.


7

Secretary/Treasurer’s Report – Chuck Albrecht, Mid‐Minnesota Credit Union Albrecht reported that since the 2011 Annual Meeting, the Network Board of Directors met for six regular meetings and conducted a planning session in September 2011. The minutes of the meetings are filed at the Network office. The 2011 audits for the Minnesota Credit Union Network, Network Services Corporation and the Minnesota Credit Union Foundation were conducted by Peffer & Wallace, Ltd., certified public accountants. Copies of the consolidated balance sheet and statements of operations and combined budget of the MnCUN and NSC are included in the Annual Meeting handout and full audit report is available for review at the Network office.

MOTION: A Motion was made by Nick Meyer of Minnesota Valley Federal Credit Union to accept the 2011 audited financial statements, seconded by Jeff Schwalen of Hiway Federal Credit Union. The motion passed.

Audit Committee’s Report – Nick Meyer, Minnesota Valley Federal Credit Union Meyer reported that pages 13‐33 of the Annual Meeting handout contain the unqualified opinion of Peffer and Wallace, CPAs as to the financial statements of the Network and its subsidiaries. He noted that the financials reflect the Network’s acquisition of MnIPC. The Audit Committee consisted of Harry Carter of TopLine Federal Credit Union, Karen Fleming of HBI Employees Credit Union, Paul Knorr of Accentra Credit Union and Kelly McDonough of First Alliance Credit Union. Election Committee’s Report – Gail Krall, Minnesota Power ECU Krall reported that the Network Board of Directors had six seats up for elections in 2012. Following the official Call for Candidates in January, one declaration was received for each open seat. According to the Network Bylaws, uncontested nominees may be declared elected by general consent or acclamation at the Annual Meeting. Therefore, a mail ballot was not conducted in 2012. Markland declared all six nominees elected by general consent.

Pat Pierce of City & County Credit Union to represent credit unions within the seven‐county Metro Area for a three‐year term.

Chuck Albrecht of Mid‐Minnesota Federal Credit Union to represent credit unions outside of the seven‐county Metro Area for a three‐year term.

Nick Meyer of Minnesota Valley Federal Credit Union to represent credit unions outside of the seven‐county Metro Area, filling a vacancy.

Mary Hansen of Mayo Employees Credit Union to represent credit unions with greater than 10,000 members for a three‐year term.

Sandra Wiederholt of Ecolab Credit Union to represent credit unions with 2,001 to 10,000 members for a three‐year term.

Julia Havens of Riverview Credit Union to represent credit unions with 2,000 or fewer members for a three‐year term.


8

Gail thanked everyone for taking part in the election and thanked Clifton LarsonAllen for assistance in administering the election. Markland recognized and thanked the following board member who served on the Network Board 2011‐2012.

Vice Chairman Pat Pierce of City & County Credit Union Secretary/Treasurer Chuck Albrecht of Mid‐Minnesota Federal Credit Union Jim Carrier of Employees First Credit Union Harry Carter of TopLine Federal Credit Union Karen Fleming of HBI Employees Credit Union Paul Knorr of Accentra Credit Union Kelly McDonough of First Alliance Credit Union Nick Meyer of Minnesota Valley Federal Credit Union David Sawin of Minnesota Catholic credit Union Dan Stoltz of SPIRE Federal Credit Union Jeff Schwalen of Hiway Federal Credit Union

Cummins recognized Carter and Carrier who were elected to the Board in 2003 and have reached their term limit. Both received a framed painting of Minnesota’s state flower as a token of the Network’s appreciation and to thank them for their service to the credit unions they represented. Political Involvement Committee Report – Chuck Albrecht, Mid‐Minnesota FCU Albrecht stressed the importance of Members Business Lending legislation and asked that credit unions take action through GREAT. On the state political issues, the Network has been advocating for credit unions on a number of pieces of legislation including public deposits, which would allow public entities more flexibility as to where they deposit their funds. Initially, this bill was introduced to include only banks, but the Network succeeded in including credit unions. The Network is also working on developing the groundwork for legislation that would enable prize‐linked savings in Minnesota. This legislation would help individuals develop positive savings habits by earning chances to win a large cash prize. Credit unions were encouraged to attend the Saturday luncheon, which will feature former Minnesota governor Tim Pawlenty. Committee & Organizational Reports CUNA Mutual Group, Beth Zuehlke Zuehlke reported that this year CUNA Mutual Group paid more than $748 million in claims to credit union members nationally. CUNA Mutual also made significant and strategic investments to their products by investing $16 million to improve compliance, grow loan and increase credit union revenue. In 2012, CUNA Mutual plans to launch a new consumer website, strengthen cross‐selling efforts, and improve the consumer experience.


9

Foundation Report – Pat Brekken, Richfield/Bloomington Credit Union Brekken reported that the Foundation’s largest initiative is its financial education through a partnership with the University of Minnesota Extension (UME). The Foundation funded the development, delivery and documentation of a four‐part series of webinars that teach financial literacy. Other initiatives includes supporting the public TV series BizKid$, funding scholarships for students to attend a conference focused on cooperatives, and providing 25 grants for credit union professionals and volunteers to continue their education and sustain the credit union movement. Another major area of focus in 2011 was to increase the visibility and awareness of the foundation’s various fundraising avenues. Credit Unions for Kids – Steve Oien, Minnco CU Oien reported that the CU4kids Annual golf Tournament is scheduled for June 20. He thanked the committee and credit unions for their ongoing support, and Co‐op Financial Services for its matching grants. Family Involvement Council – Bridget Moeller, Greater Minnesota Credit Union, Chair Moeller reported that since 1997, the FIC has raised more than $126,000 for scholarships to credit union members and reviewed more than 10,900 applications. The FIC currently has nine committee members and is looking to recruit more committee members. Moeller encouraged everyone to stop by the FIC silent auction and to attend their general session called “Living Within Your Means.” Alloya Corporate Federal Credit Union, Mike Lee Lee reported that the last couple of years, Alloya had to deal with tough discussions and decisions. He reported that Alloys has $95 million in capital and more than 11,000 credit union members. He recognized Lynn Kothe of North Memorial FCU for serving on their board. Awards Committee – Gail Krall, Minnesota Power Employees Credit Union Krall reported that the Awards Committee solicited nominations for the 2012 Professional of the Year and Volunteer of the Year. Solicitations for the Dora Maxwell and Louise Herring Awards will begin in June. Krall also reminded attendees that the awards are judged through a reciprocal awards exchange with other leagues, allowing for fair, impartial judging to take place. Credit unions are encouraged to keep these awards in mind. Cooperative Network – Matt Hughes Hughes reported that he is Cooperative Network’s new Minnesota Managing Director. He highlighted some of Cooperative Network’s overarching government relation goals and said they remain aggressively engaged on the regulatory level. The organization continues to be actively involved with youth though their annual Youth Co‐op Leadership Conference. He said the relationship with Minnesota credit union cooperatives is valuable, and he thanked credit unions for their support.


10

MOTION: A Motion was made by Steve Ahlness of Greater Minnesota Credit Union to receive the reports, seconded by Pat Pierce of City & County Credit Union. The motion passed.

Old Businesses There was no old business to address. New Business There was no new business to address. Adjourn

MOTION: A Motion was made by David Sawin of Minnesota Catholic Credit Union to adjourn the Network Annual Business Meeting, and seconded by Jeff Schwalen of Hiway Federal Credit Union. The motion passed.

Markland adjourned the Minnesota Credit Union Network Business Meeting at 10:40 a.m. and asked that the Board members move to Atrium 7 to resume the Network Organization Meeting.


11


12


13


14


15


16


17


18


19


20


21


22


23


24


25

business meeting handout materials (3)€¦ · motion: a motion was made by jeff schwalen of hiway...

Documents