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Draft Minutes

The 51st Meeting of the
MONTANA HERITAGE COMMISSION

14th September 2005
St Paul's Church, Virginia City, Montana

MISSION

Manage, develop and operate Heritage Commission properties by preserving, stabilizing, rehabilitating, interpreting and exhibiting buildings and artifacts; oversee and operate profitable commercial enterprises while creating and maintaining credible relationships with all stakeholders and partners to protect historic character for the benefit and enjoyment of generations of Montanans and guests.

Commissioners present: Rosana Skelton, Judy McNally, Anne Cossitt, Diane Rice, Bill Howell, Mary Oliver, Doug Monger, Vicki Hucke, Leslie Schmidt, Mark Baumler, Pat Keim, Betsy Baumgart, Maureen Wicks and Bob Hawks. Later Tony Preite, Director of Commerce and Patty Keebler, from the Governor’s Office joined us.

Guests present: Karla Boyd, John Boles, Steve Weddle, Daisy Ferreras, Kerry Bronson, Sheri & Jim Jarvis, Colin Mathews, Billy Doyle, Dawn Hagedorn, Linda Hamilton, Nancy Allen, Sam Korsmoe, Amy Sullivan and Dick Johnson. Tom Sargent made a brief appearance impersonating territorial Governor Sidney Edgerton.

Staff present: Jeff Tiberi, Jim Carpita, Janna Hermanson (new Curator of Collections), Bill Peterson (new Curator of Interpretation), Karlee Smith, and Linda McClure. Jeff MacDonald, Jeff Cleverley, Cecile Gevock, Don Steeley and Mike Tornabene joined us late morning to be recognized and receive their award for a team nomination for the Governor's Award for Excellence.

Chairwoman Rosana Skelton called the meeting to order. She welcomed our new Commissioners and asked all Commissioners and visitors to introduce themselves. The new Commissioners gave a brief description of their backgrounds.

Representative Diane Rice motioned that the minutes of June 17th, 2005 be approved. Pat Keim seconded the motion and the motion passed.

Director's Report
Jeff Tiberi gave his Director's Report for the period ending 14th September 2005. The complete report can be accessed on our website at Director's Report September 2005 . The following report items were highlighted:

· Jeff spoke of the success of the September 13th plaque dedication to Lloyd Harkins. Lloyd is responsible for the restoration of the Case steam tractor now on display at the Train Barn in Nevada City.

· Information and reference binders for Commissioners were distributed to those interested.

· Jeff and Mark Baumler were appointed as ex-officio members of the newly formed Historic and Cultural Advisory Council. The seven-member Historic and Cultural Advisory Council is charged with studying the benefits of historic preservation and providing information and recommendations to the Governor and the 2007 Legislature. The Council will deal with the State of Montana's policy with respect to the preservation of publicly owned historic buildings. They will be identifying opportunities for communities to use historic preservation as an economic development tool. Members of the council were appointed by the Governor and will serve for 18 months. Jeff invited Commissioners to attend the meeting on November 14th in Helena.

· The Wallace Foundation was sent a letter from the Montana History Foundation asking them to sponsor a 10-week history summer camp with nation wide recruiting. The camps would focus on survival and social skills of the late 1800's.

· Jeff described the Rocky Mountain Cooperative Environmental Science Unit. He believes that it would be beneficial to us to be associated with them, as they do not charge administrative overhead for processing federal funds.

· Manager staff reports will be put on our website under News, Updates and Reports

· Rosana and Jeff asked the Nomination Committee for nominations to fill the vice-chair position. Commissioners were asked to volunteer for Committees.

· There were two findings from the recent financial audit conducted by the Legislative Auditor's Office: 1) A gift store inventory needs to completed at the end of fiscal year. 2) The failure to issue 1099's to staff that received housing as a part of their employment package. We will accept the findings and make the necessary adjustments.

· In 2007 we will celebrate ten years of the Heritage Commission. Jeff needs to create a ten-year report for legislator. Senator Bob Hawks suggested being ready with a report documenting what we have achieved.

· Jeff informed the Commission that Wells Fargo restaurant business is being offered for sale. We negotiated a 10-year lease four months ago. The Concessionaires have not contacted us regarding the sale or possible transfer of the lease.

· Jeff met with staff from Governor Schweitzer's office and Colin and Paula Mathews about the Tamarack project. Colin and Paula received verbal support for the idea.

Site Manager's Report
Jim Carpita gave his Site Manager's Report for the period ending 14th September 2005. The complete report can be accessed on our website under News, Updates & Reports. The following items were highlighted:

· Jim introduced the newly hired Curator of Interpretation, Dr. Bill Peterson, and the new Curator of Collections, Janna Hermanson. Janna previously worked for us as a museum technician. Bill Peterson comes to us from a museum in Kalispell.

· Jim reported that Elderhostel had good things to say about their recent project, which was organized by Cecile Gevock, our Archaeologist. Her enthusiasm for the archaeology in Virginia City was very contagious.

· Jim read a letter from a history camper thanking us for her scholarship. He feels this program was very successful this year and needs to be expanded.

· Jim mentioned there was another sewer line collapse. This one is located at the Wells Fargo, and the line will have to be replaced. Earlier in the season there was a failed sewer line at the Bale of Hay/Opera House and one at the Bonanza Inn. Costs for these repairs will be listed as explainable variances.

· Security issues need to be addressed as we have had some break-in incidents this season. He would like to obtain a major grant for a new key and lock system. Sheri Jarvis said she would like to keep a separate security system for concessionaires. Jim said that the only things we have found missing are a blue shirt and a violin from Nevada City. Diane asked for immediate attention to this matter and to get a bid on costs. Jim said Sargent Lock has offered to help with a master lock system. Hiring full-time security would be cost prohibitive.

The Committee performed Jeff Tiberi's performance evaluation. Jeff received an excellent review and will receive the 3.5% state employee raise in October.

Representative Diane Rice motioned the Nov. 14 meeting scheduled in Helena be changed to December 6th. The motion passed unanimously. The meeting will start at 8:30 am. Senator Bob Hawks mentioned there was a good chance that the Legislature would be in special session. Rosana offer to have a Christmas party for Commissioners at her house the night before, December 5th.

Committee assignments
Rosana asked the new Commissioners to indicate those committees they would like to serve on. At the upcoming December meeting we need to revisit the Governance Plan to address procedure of filling the Chairman and Vice Chairman position if a vacancy should occur, as well as officer terms. Normally the fall meeting is when the election of new officers would take place. Jeff will draft the plan and run it by the Executive Committee prior to the meeting.

We also need to set a date for a Strategic Plan update and goal setting. A good date would be in April 2006. This planning meeting will be managed by a facilitator. Jeff has contacted Virginia Tribe who has worked with the Commission in the past, but does not yet have a commitment from her at this time.

Pat reported the railroad is the largest income generator, and the reduced schedule of the train is reflective not only on our income generation, but also on the town’s business. We should plan to spend 16 to 18 % of every earned dollar on maintenance of the train. Jim reminded the Commission that we have two trains to attend to. Pat recommended a reserve for annual maintenance and a strategic reserve for major repairs. A motion will be made during the budget portion of the meeting.

· Vicki Hucke suggested we use capital funds to replenish the maintenance reserve we have spent this year.

· Pat suggested that we explore grant funds for the railroad. Leslie agreed that there are possibly grants for operations and maintenance.

· Recruitment program for train volunteers needs to be emphasized by Jim over the winter months.

· Find other ways to increase riders, and look at limitations that are keeping us from doing so.

· David Copperfield update: Jeff reported the appraisal of the gypsy has not been done, as the conservation would not be completed until November. When the gypsy returns to Virginia City it will be located at the McFarland Curatorial Center exhibit area, at least temporarily. Staff from Mr. Copperfield’s offices asked for Commissioner contact information and this was provided to them.

· Pioneer Cabin update: The report to examine the possible acquisition of the Pioneer Cabin is about 40% completed. In addition, an Environmental Assessment and a Hazard Materials report need to be completed. Ellen Baumler is helping with the historical portion. Mark Baumler asked about the endowment – would it accompany the Cabin? Jeff replied that the endowment would be included in the property transfer.

· Helen Alton, a contractor we hired as a part of an IMLS grant, has promised again to return a doll that was sent to her for restoration. She said she could not find anyone to pack it for her. Jeff has told her if the doll is not returned soon legal avenues will be opened.

· Mt. Washburn Special loan renewal – The horse drawn wagon, original from Yellowstone Park at Mt. Washburn has been on loan to the Yellowstone Museum in West Yellowstone. They are taking very good care of it and would like to renew the loan. Judy McNally motioned to renew this as a five-year loan, with annual reviews. Bill Howell seconded the motion, and it passed unanimously.

· Some businesses are experimenting with developing a broader shoulder season, such as Mike Verdon of the Follies.

· Resort taxes are down 7% to date this year, which equals $2,300. He thinks the price of gas may be a cause.

· Colin has asked for an ITRR research project concerning Yellowstone Park. We need to know the demographics of overnight stays in the Park and craft marketing ideas to bring more tourists from Yellowstone.

· Colin would like to utilize the U of M business students to develop our own demographic profile.

· 43% of Virginia City's resort tax collections are from MHC concessionaires and MHC operated businesses.

· The sewer project is at 165% of its debt service. They will probably lower the sewer rates.

· Bill Howell reported that Yellowstone Park visitation was down by 27,000 people to date. The monthly counts followed Virginia City’s pattern of fewer visitors.

· After three years the trails project is picking up speed. A Montana Conservation Corps crew scratched in a ½ mile long section called the Virginia City Campground Trail. This is the section that crosses over MHC property near the Bickford property. Jim would like to further improve that trail making it 5-6 ft wide and bring in gravel, and would like the Commission's approval. He asked how far would the MHC allow development without an agreement.

· Phase one, the Depot Trail which is located between the Virginia City Depot and the Nevada City Depot, needs to be further refined along the utility easement. The question was asked whether a letter of intent is enough, or if a formal easement is needed from the Land Board? National Park Service funding has been granted for this trail ($30,000.) Signage and interpretation is included in the grant.

· Phase 2 Heritage Loop Trail ties the downtown commercial area to Boot Hill and other historic areas throughout the town. A FWP grant is being sought for this. He said these trails are already being used by motorized vehicles. The intention was for pedestrian to use the trails.

· Several local boards in Virginia City are consolidating to form a Public Works Board. This board would include water, sewer, weed control and trails committee to oversee the maintenance of the trail. Jim asked for a representative from the Heritage Commission to sit on this board. Jim Carpita agreed to represent the Commission on these matters.

Judy asked about maintenance of the trails. Jim said the Town of Virginia would be responsible for the maintenance. Doug Monger asked if we had given a property easement for the VC-NC trail. Jeff said a letter of intent was signed. Jim Carpita said his understanding is that a formal easement needs to be written and brought before the State Land Board for approval. Jim Jarvis thought it could be an addendum to the existing utility easement. Rosana said she would like to go on record of supporting these trails in principle, with details to be worked out with Commission staff.

· Mary reported the two main events -- the 1864 and 1865 balls - were well attended. The food was wonderful and Sarah Bickford was in attendance for a week before the event.

· The weekly lecture series were not as well attended as in the past. VCPA might consider changing the location of the lectures for next year. This year they were held at the Community Center (Gym).

Jim reported there would be a Chamber meeting next week. Items to be discussed are the art show, active fund raising, events coordination, and welcoming new board members. The Chamber will be asked to take over the Christmas Socials, as the local service group would like to pass that event on.

Madison County Economic Development Council - Executive Director Sam Korsmoe

Sam gave a background report for the new Commissioners about the National Heritage Area project and the value added branded beef economic development plan he has been working on.

· Sam feels the proposed National Heritage Area will tell a compelling story about the American West. This area could be called the Alder Gulch National Heritage Area. It would start at Alder and go to Summit City, a 14-mile long and 5 mile-wide corridor.

· The Governor and other congressional representation have received information regarding this and have given support. Sen. Burns has also offered help as long as there is strong local support for the concept.

· Sam told the group that a National Heritage Area does not have control over private land and water rights.

· The funding that comes along with the NHA designation can be used for various things such as marketing, interpretation, building preservation and other things that will promote the area.

· The first public meeting will be held in Alder, November 6, 2005. There will be additional public meetings to bring together local support in order to move forward.

· A National Heritage Area would be automatically linked into the National Park System.

· In the next six months the feasibility study will be completed, then they will create a board and budget.

Bob Hawks asked if the group had communicated with the State Economic Development Officer and the Department of Commerce. Sam answered yes. Diane asked about the management plans, as it is the tool that would give power over a person's land. Sam said he did not believe that a management plan would supersede a landowner's rights. She was also concerned the funding was no longer there, as there are already 27 Heritage Areas.

Tourism Advisory Council Update - Commissioners Vicki Hucke and Betsy Baumgart

Betsy reported the Tourism Advisory Council has several new members. Out of eighteen members ten are new. The Council's next meeting will be in October 2-4th, in Livingston. Betsy distributed a draft agenda.

· Jim Jarvis reported that Virginia City did not receive a CTAP grant. He suggested that the city might be able to use the new DNRC toilet funds to receive matching grants. Jim Carpita said the Department of Administration is in control of the funds at this point. Ken Sievert is our historic architect and has not yet responded to requests for restroom plans.

· John Boles commented that significant signage is needed before entering Nevada City. There was discussion on the issue of signage. Betsy Baumgart said CTAP funds could be used for signage.

· Amy reported that the Foundation received a $25,000 donation for Music Machines repairs. Possibly another $75,000 will be received by the end of the year. Mike Edwards from South Dakota has offered to come this fall to repair some of the player pianos. He is donating his time, and will help John Ellingsen develop a repair supply kit for regular maintenance of the pianos. He is well qualified, is also on the lecture circuit, and can do public relations work for us regarding the music machines.

· Amy knows of a hotel developer from Bozeman who may be interested in building a gas station/convenience store/hotel in Virginia City. Perhaps they would perform the feasibility study the Commission has discussed. Jeff was asked to follow-up with Amy on this.

· The Monte Dolack project was very successful. The original sold for $15,500 and another $10,000 of prints were sold. In the November/December issue of the Montana Magazine there will be a ¼ page ad. All of these proceeds from the Dolack project will be deposited in the Pioneer Fund. The Commission has access to interest from this fund for educational or interpretive projects.

Bob Hawks commented he would like to make sure there was interfacing between David Calendine and Mike Edwards in the repairing of the music machines. Jeff, Amy and Jim will follow up.

Betsy, as the Department of Commerce representative, presented the Governor's Award for Excellence in Performance to the Virginia City Preservation Crew. Jim Carpita introduced the Montana Heritage Commission Preservation Crew. Members are Jeff MacDonald, Lead Preservation Specialist; Don Steeley, Jeff Cleverley. Cecile Gevock (Archaeologist), and Mike Tornabene (Intern). Jack Frost, another member of the crew, was not present. Jim commented on the accomplishments of the team such as preservation work on many buildings, reinstating the Virginia City Institute, their work at Content's Corner, and Cecile's work with Elderhostel.

· Karlee will revisit her marketing plan using information gathered form the Virginia City Chamber of Commerce information cards that are filled out when people call the 800 phone line at the Visitor Center.

· Karlee passed around the advertising book (print advertising) from this calendar year.

· Karlee reported that the Moonlight Ride was very successful. We would like to see it run once a month. We partnered with the Bale of Hay Saloon for this event, and provided ticket holders with a drink and snacks at the Bale of Hay during the Virginia City layover.

· There have been a number of articles written about Virginia City and Nevada City in area newspapers as well as national magazines. Karlee passed around a folder with the articles.

· Karlee has been contacted by several travel writers. One writer seemed especially promising for an article. She was from Destinations Magazine and her article will focus on group tours, especially with the American Bus Association.

· The Virginia City Chamber of Commerce has done a great job of issuing press releases this year. We have received a lot of promotional articles in area newspapers as a result.

· Karlee will be working with Gold West Country to produce the 2006 travel guide

· Four people have responded to the book reviewers request in the last newsletter. The first book review is available on our website under What’s New.

· Website Exemption Proposal - Karlee reported that she will be working with the Dept. of Commerce to make changes on our website. The Governor has developed a new mt.gov website template that all state agencies will be required to use. Karlee showed the required state template. Karlee said that to more effectively market the towns, larger photos and the ability to customize our fonts and menus would be more appealing to potential visitors. The newly designed state website focuses on state services, as it should. However, we need a site that focuses on sales and promotion, as our revenues are from users and we need to be able to recruit those users via the web. Karlee asked that the Commission support an exemption to the State website format. There was positive discussion that recognized the services versus sales approach, and support for the exemption the exemption. Doug Monger made motion to apply for an exception, Mary seconded the motion and it passed unanimously.

· We have three contracts that expire this fall: Virginia City Trading Co., Aunt Julia's and Daylight Village.

· The Montana Picture Gallery and the Variety Store have requested that we negotiate their existing contracts to replace them with long-term contracts. We are in discussions with these businesses concerning this change.

· The horseback-riding concessionaire left at the end of July without notice. Pat Keim asked about termination fees. Karlee responded that the contract did include termination fees and we are negotiating for the concessionaire to trade the improvements he made to MHC in exchange for us dropping the termination fees.

· Karlee will be writing Requests for Proposal (RFPs) for the horseback riding concession, Tent Village, the Virginia City Depot space, and possibly the open area near to the VC depot.

Karlee reported that staff have been discussing scaling back the Virginia City Depot gift store and moving it to the Nevada City Depot. We could then move the Visitor Information Center to the gift store side of the Virginia City Depot. The current Visitor Center side of the depot could then be leased out for another business. The plan would also include starting round trip train rides from Nevada City to Virginia City instead of just in Virginia City. Tickets would be sold at the Nevada City Depot as well as by the conductor in Virginia City. Round trip tickets could still be purchased and boarded from Virginia City.

1. The first and last train runs of the day are usually empty because no round trip tickets are sold from Nevada City. This change will hopefully eliminate two empty train trips between the towns and the need for shuttling train passengers at the end of the day.

2. We would scale down the gift store that is not making a profit. The gift store profit/loss was passed around. The report shows losses over several years, indicating that we need to consider doing something different.

3. The changes would hopefully encourage visitors to spend more time in Nevada City thus potentially increasing revenues at the Nevada City gate.

4. Better control and localization of money used for change. All monies will be centered in Nevada City.

5. We will be able to reduce staffing to cover breaks and transport change to the various operations that handle money.

Bill Howell expressed concern that visitors would not like the train to start in Nevada City, and suggested if we move the Gift Store/Depot to Nevada City, we need to install a large billboard sign (one that you can see ¼ mile away) near the entrance to Nevada City. Amy suggested that funding for signage could come from the Montana History Foundation. There was a lengthy discussion and comments were as follows:

· Perhaps using a sandwich board in Virginia City with events listed to direct visitors to Nevada City.

It was decided that Jim Carpita would follow up on this issue. He will bring to the December meeting a final gift store profit/loss for the 2005 calendar year, plus information and a location where we can install a billboard on Commission property.

There was discussion on raising our train fees and Nevada City Gate fees. The most common comment Karlee heard at the gate was we do not have a rate for children. It was suggested to raise the Nevada City weekend fee to $8 due to Living History events, and make the fee valid for two-days. Jim said that we already allow two days of entry for each ticket purchased. Karlee provided the Commission with a handout showing fee comparisons at other historic sites. Rosana asked for a motion. Doug suggested putting together a price matrix to help make a decision. There was lengthy discussion. Staff will study this more and make a presentation at the December meeting. No motion was made.

Expenses train repairs $14,246 (not final), FEMA $10,537,Utilities $4166, Sewer repairs $2,990(not final). Jeff said if we cannot cover these expenses in our operations budget, we will come back and ask for additional funding from reserves before the end of the year. He is especially concerned that the final costs for the sewer problems will be significant and not assumable in the current year’s budget.

CY06 Draft Budget - Finance & Management Committee recommendations to the Commission.

The Commission reviewed the CY 06 draft budget. Jeff said in December we will ask for final approval. He explained the report format and the proposed budget. Karlee explained the spreadsheet that shows the cash balances available and all income and expenses to the project since inception.

Pat Keim made a motion that we review the railroad expense budget and allocate funds equal to 15% of revenue from the railroad for annual maintenance repairs. This amount is to be not less that $10,000 per year. Diane seconded the motion. There was discussion and the motion passed.

Pat also motioned that we keep a minimum of $20,000 in reserve for emergency repairs to the train. If necessary these funds should come from capital reserves. Doug seconded the motion. There was discussion and the motion passed.

Sale of Stagecoach - Dawn Hagedorn gave notification that she and Scott have sold their stagecoach business. She requested an official welcome to the new owners and support for their continued operation of the stagecoach. She said the new owners, B.J. and Lisa Morgan, were not able to attend this meeting. Dawn asked the Commissioners to sign a letter of support to be presented to the Town of Virginia City. The letter states that those signing are in favor of the continued operation of the Virginia City Overland Stage under new ownership in its currently licensed location under the shade tree in front the Wells Fargo and Assay office building, located at the lower end of Wallace Street in Virginia City, MT.

Jeff said we welcome the new owners and look forward to working with them. Dawn read the ordinance and explained she needed to have this statement signed today. Jeff said he would like to meet the new owners and have the opportunity to discuss their operation with them before we signed the letter of support. There was discussion. Rosana asked twice for a motion. No motion was made.

The conference phone was connected. Marty Tuttle, Marty Roos, Vivian Hammill and Barb Charlton joined the meeting from Helena.

Vivian Hammill works for the Governor's Office legal staff. She spoke about Administratively Attached Agencies. She said administratively attached boards have limited independence and authority in relationship to setting policies. Policies must be in accordance with the mission that the legislature has mandated. Hiring staff and salaries must stay within the parameters of State of Montana personnel policies. She reviewed statute 2-15-121, Montana Code Annotated (attached to these minutes) and explained the parameters to which the Commission can operate. She said that in the last 12 years of working with State Government, her duties included guiding attached agencies to remain within the parameters where they are statutorily empowered. She also said we are not our own corporation. Senator Bob Hawks asked about negotiating the 13.7% indirect administrative fee. Marty Tuttle, legal council for the Dept. of Commerce said there they did not have any negotiations of indirect rates outside of what is contained in law. The Heritage Commission might be a unique provision of the law since our statute specifically states that we can negotiate our indirect rate with the Dept. of Commerce. Bob said the Commission needs to have a discussion, and then communicate with the Department of Commerce. Director Tony Priete said the indirect rate was set straight across the board, and we can negotiate the rate, but it would most likely cost us more for services Commerce provides to MHC. It was also mentioned that a proposed raise increase in Jeff Tiberi's salary was an issue brought up and if he is eligible for the 3.5% statewide pay raise. Doug asked for a definition of overhead costs vs. indirect costs and do they cover items such as building expenses and heating. Bill Howell asked for a definition of fixed costs. Betsy answered that it includes insurance, then Barb Charlton added warrant writer, payroll service, legislative auditing, SABHRS, ITSD costs, insurance, mail and deadhead costs. Barb also added that indirect costs are also incurred from the Director's Office and Management Services Division. Karlee asked about the discrepancy of the insurance amount between what Risk Management Tort Claims quoted us, and what the Department of Commerce had billed MHC, but no answer was provided.

Marty Roos gave a presentation on transferring personnel from the 060 to the 020 pay plan.

Transition date will be 10/1/2005. Marty asked for a motion from the Commission. Doug Monger motioned to transition personnel from the 060 pay plan to the 020 pay plan. Leslie Schmidt seconded the motion. The motion passed.

Diane Rice reported that she knows a Sinclair dealer who has expressed an interest in performing a feasibility study and possibly opening a convenience store/gas station in or near Virginia City. Doug said this would be a good way to develop infrastructure and develop partnerships. Doug commented his intent of a feasibility study for a gas and hotel would be to promote the shoulder season. Rosana was concerned about the existing hotel and the possible addition of another hotel. Linda Hamilton said her accommodations are operating at 42% of occupancy. Betsy recommended that we still would need to consider a feasibility study so these issues could be examined.

Red Bluff Stage Stop Update - Bob Hawks said he contacted Jeff Jacobson, the head of the Department of Architecture in Bozeman. Jeff's is rotating off of the three-member board, so Bob met with the new administrator, Dr. Tom McNab. The outcome of the meeting was:

· Bob provided the Commission with background information, reporting that Connie Olind (neighbor to Red Bluff) contacted MHC with the hope of getting our help to preserve the building. She is also interested in using the space for a business location. Jeff Safford had provided history of the location at the last Commission meeting.

· Dr. McNab is interested in the building and said the Community Design Center offers a variety of services.

· Dr. McNab suggested it could be a project for architects and engineering students in the summer.

· A representative group from MHC needs to meet with these people to look at plans and funding.

· Leslie Schmidt added that the Dean of Agriculture indicated that the Department of Facility Services, handling the review, said they are looking at possibilities for the building.

· Bob said there is a new emphasis in State government to recognize and work with local governments to preserve historical structures.

· Jeff said Amy Sullivan has also made contacts with MSU Foundation Board members concerning the property.

· Bob said to keep in mind we are not looking at an investment of Commission dollars or an administrative load. He will try to keep this project simple.

· Bob and Leslie will continue to work on this and update the Commission in December.

Jeff Tiberi requested permission from the Commission to write a letter to the Virginia City Town Council that states that we support the idea of a stagecoach in Virginia City and would like to meet the owners before we agree to locating the business in front of Commission properties. Jeff will work with Marty Tuttle on the exact wording before sending it. The Commission agreed to proceed in this manner. Rosana suggested we also write a welcome letter to the new owners.

Jeff gave a brief history of the Commission's interaction with the Trust. The Commission has been discussing the Trust issue since 1997, with the idea that we could possibly work out some sort of arraignment with Ford Bovey while he was alive. Additional information and details may be found in Commission meeting minutes. The Trust contains, among other assets, 17 real properties in and around Virginia City. Four of these properties have buildings. They include the Red House, Stonewall Hall, the Door Barn, and a small cabin near Nevada City. Jeff was told by a reliable source that it was the intention to include the properties with the sale of the Bovey holdings to the State of Montana in 1997. Somehow (probably because of time constraints) they fell through the cracks. The buildings are deteriorating quickly and there is no maintenance being performed. Because of the historic nature of the buildings and the relationship to the 1997 acquisition, the Commission has over the years expressed an interest in the preservation of the buildings and the properties in general. At one point the Trust asked us to appraise the buildings, as they were considering giving them or selling them to the Commission. Obviously, this never came to pass. In recent years Carl Nelson expressed interest in restoring Stonewall Hall to display his collection of cars. The Trust most recently said they could not do anything with the properties due to the litigation. Rocky Brown, a lawyer from Billings who is now a member of the Montana History Foundation, has asked to pursue this. He wrote a supportive cover letter to the lawyer for the beneficiaries that accompanied a short letter from the Commission expressing continued interest in the properties. The Land Board would have to approve any acquisition. Carl may still be interested in helping with the project, but he is losing his interest quickly.

Betsy Baumgart asked for a motion to accept the Department of Commerce's 13.7 % administrative indirect rate. Rosanna had concerns that we did not negotiate the rate as stated in law. Vicki Hucke motioned we accept the indirect rate for the remainder of this fiscal year. Maureen Wicks seconded the motion. The motion passed with one no vote by Representative Diane Rice. A matrix will be developed with Commerce's help comparing line item costs to the 13.7% rate for next year.

The Nominations Committee nominated Bill Howell to serve as Interim Vice Chairman. Mary Oliver seconded the nomination, and he was elected unanimously.

2-15-121. Allocation for administrative purposes only. (1) An agency allocated to a department for administrative purposes only in this chapter shall:

(a) exercise its quasi-judicial, quasi-legislative, licensing, and policymaking functions independently of the department and without approval or control of the department;

(2) The department to which an agency is allocated for administrative purposes only in this title shall:

(a) direct and supervise the budgeting, recordkeeping, reporting, and related administrative and clerical functions of the agency;

(c) collect all revenues for the agency and deposit them in the proper fund or account. Except as provided in 37-1-101, the department may not use or divert the revenues from the fund or account for purposes other than provided by law.

(d) provide staff for the agency. Unless otherwise indicated in this chapter, the agency may not hire its own personnel.

(e) print and disseminate for the agency any required notices, rules, or orders adopted, amended, or repealed by the agency.

(3) The department head of a department to which any agency is allocated for administrative purposes only in this chapter shall:

(b) allocate office space to the agency as necessary, subject to the approval of the department of administration.

History: En. 82A-108 by Sec. 1, Ch. 272, L. 1971; amd. Sec. 8, Ch. 358, L. 1973; R.C.M. 1947, 82A-108.