Minutes

Of the 28^th Meeting of the

Montana Heritage Commission

June 12, 2001 – Virginia City, Montana

COMMISSION MEMBERS PRESENT:  Jeanette McKee, Bill Howell, Dale Mahlum, Mary Oliver, Maureen Averill, Marcella Sherfy (for Arnie Olsen), Jeff Safford, Diane Rice, John Lawton

OTHERS PRESENT: Jeff Tiberi, Karlee Smith, John Ellingsen, Karla Boyd, Julie Johnson, Dawn Hagedorn, Dan Thyer, Nancy Allen, Ken Sievert, Ed Chebul, Jay Russell, Jerry Fox, Debbie Leadbetter, Suzie Johnson, Richard Johnson, Pat Roath, Jim Jarvis, Spence Hegstead, Tom Sargent, Rod Gwaltney, Klaus Mackensen, Randy Kleindorfer, Jon Scott, Mick Welton, Bill Doyle

CALL TO ORDER, WELCOME, INTRODUCTIONS, APPROVE MINUTES, ADJUST AGENDA – JEANETTE MCKEE – Jeanette welcomed everyone and introduced Diane Rice, newly appointed commissioner, replacing Karl Ohs.  Karlee introduced Dan Thyer, newly hired Volunteer Coordinator for the Commission in Virginia City.

Motion:  Dale Mahlum made a motion to approve the minutes from the March 6, 2001 Commission meeting.  Maureen Averill seconded the motion and it was approved unanimously.

Diane Rice and Mary Oliver expressed interest in serving on the Management & Finance Committee.  Jeanette agreed we could add both to the committee.

COMMITTEE REPORTS

Executive Committee – Jeanette McKee – Jeanette reported that we received a letter from the Governor’s office reappointing John Lawton and Rosana Skelton to the Commission for a second term.  Both have agreed to accept the reappointment.

Election of Officers – Jeanette asked the Commission whether they wanted to discuss term limits for chair and vice chair positions.  She explained that she has been official the chair for one year, and that maybe we should consider limiting terms.  Jeff Tiberi explained that the history of the commission officers has been a very informal election process.  He has been asked if we should create a Nominating Committee, which could also serve to suggest new commission members when there is a vacancy.  There was discussion about what the nominating committee does, and would they also set terms?  It was agreed that a Nominating Committee would be a good idea and the Commission Chair would select the committee.  Jeanette asked Dale Mahlum if he would chair the committee along with Mary Oliver and Rosana Skelton.  Jeff Tiberi will contact Rosana to make sure she is willing to take on this assignment.  The Committee will bring nominations to the September Commission meeting and current officers will continue until that time. 

The Nominating Committee will also recommend people to fill Commission vacancies created by the Legislative changes made in SB 80.  Jeanette suggested that we consider more business representation.  Also, the Director of Commerce will appoint someone per SB 80 changes.  Commission members and the public are invited to submit any recommendations to Dale Mahlum.

Governance Committee – Jeff Tiberi

·        57^th Legislature – Jeff reported that we had a good strategy this session.  The first bill to go through the process was SB 30, which did not involve any money.  Discussion on this bill brought good will for MHC and VC among legislators, and it went through with few negative votes.  SB 80 was the 2^nd bill, which changed our enabling statute, giving us additional authority, some money involved, but it still went through fairly easily.  SB 263 passed next, giving us $400K for six more years.  HB 16 failed, which was a $40 million funding bill for heritage and historical sites across the state.  This bill would have brought $19 million for our project, but was killed fairly early in the process.  There was discussion about the value of tourism to Montana’s economy and the importance of working with Legislators to convince them of this.  Jeanette complimented Jeff for his work at the Legislature—for the ease, friendliness, and honesty he portrayed.  His slide shows about the projects we’re accomplishing in Virginia City were well received.  Jeanette said, and all agreed, that Jeff represented the Commission well.  Dale said the comments he received from other legislators were that Jeff really knows the tourism industry and is taking care of “our” resource well.  Dale also complimented John Ellingsen on his involvement with the legislative spouses tour.  They had nothing but good to say.

It was suggested that we plan a trip for legislators and families, either in May or late September with emphasis on families.  It was pointed out that we need some special event or performance to attract them and that early spring or late fall would be too late for the theatres.  It was suggested that maybe Stacey Gordon could bring a group in to do a performance.  Jeanette suggested doing an early legislative reenactment.  Jeff will work with Rosana to get something scheduled.

·        Volunteer Policy – Dan Thyer handed out copies of a draft volunteer policy and procedure that he has been working.  He explained that the volunteer policy is something that has been needed for a long time and that he has tried to cover all aspects in the draft.  Dan welcomed any suggestions to make it a better program.  Jeff Tiberi referred the policy to the Governance Committee for review.  Jeanette mentioned a place in California called Filoli with a great volunteer program that is very willing to share their information and have a volunteer board (www.filoli.org).  Marcella said she has some experience with them also, and that there are many other volunteer resources out there.  Jerry Fox said his mother volunteers for them.

·        Personal Property Disposition Form – Jeff Tiberi requested that the Commission approve the form enclosed in their packets.  Any objects not intended for the permanent collection would use this form.  Jeff gave an example of the vehicles the Bovey estate gave us.  Many of them were junk vehicles (not historic) and surplus property didn’t want them.  The Montana Historical Society (MHS) asked for a better paper trail. The Commission asked that Jeff run the form past Pat and Sharon one more time before it is finalized. 

Motion:  Mary Oliver made a motion to approve the Personal Property Disposition Form contingent on Sharon and Pat’s input.  Maureen Averill seconded the motion and it passed unanimously.

Preservation and Interpretation Committee – Jeff Safford – Jeff gave many thanks to all the talented and dedicated P & I Committee members.

·        Kiskadden Barn Historic Structures Report Presentation – Ken Sievert – Ken showed some past and present photos of Kiskadden Barn.  He thanked MHC for the opportunity to do this work.  He said he has been very interested in the work, and that is has been challenging and humbling.  Ken explained that we have an enormous task ahead of us.  Ken singled out several individuals instrumental in preparing the report—the Preservation Team, especially Rod Gwaltney and Catherine Nemeth were a great help in the preparation.  Ken outlined the main goals of an HSR:  1) summarize history and recognize significance; 2) develop construction history of structure; 3) document condition; 4) develop a plan of action to remedy the identified problems with the structure.

Ken then showed series of photos of Kiskadden dating 1865, 1942, 1948 and 2000.  Ken pointed out differences in the photos, identifying when changes took place and what is now left of original façade.  Ken said they determined early on in measuring, that major structural problems exist causing a very dangerous situation.  There are three codes used in developing the HSR, one of which is the 1997 Code for Abatement of Dangerous Buildings, which is the code now used before a building is condemned.  The code has 18 criteria and Kiskadden failed on 6 of 18, so the building is condemnable right now—we need to get to work on it.  Ken’s recommendation is to deviate from “arrested decay” preservation in order to stabilize the basic structure of the building.  There are several questions we should ask ourselves:  Does MHC has a specific building in mind to tell the Vigilante Story?  Is this the correct place?  Ken said we could consider having the first floor available as exhibit space—there can be very limited/controlled access or none the to second floor (public access only with a number of major changes).  We could consider a remote camera, or allowing public upstairs just part way to view.  The area building inspector has been very cooperative in making exceptions for VC.  This building may require a special MOU with State of MT to meet exceptions.

The Preservation Crew plans to proceed with repairs as recommended using federal dollars.  Ken volunteered to work with appropriate language on an MOU.   The question was asked how much the Kiskadden project would cost.  Rod Gwaltney told the group this is a major preservation project, and that materials are estimated at $125,000.

·        Nevada City National Historic Register Nomination – Jeff Safford reported that the P & I Committee created an internal team to work on the nomination.  Mark Baumler, Director of the State Historic Preservation Office would also like to be involved.  Jeff explained that this nomination may be needed in order to qualify us to spend federal funding in Nevada City.  The process will probably take a full year to complete.  Bernie Weisgerber said to make sure to include Rod Wheaton from the National Park Service in the process, as he was very interested in getting Nevada City nominated.

·        Preservation & Interpretation Strategy Adoption – Marcella Sherfy reported that Kathy McKay’s work was completed before Christmas and was put on the web.  Public comment was sought through March 9—125 pages of written comments were received.  Marcella took comments and summarized them as part of Jeff Safford’s challenge to P & I Committee members to take on a special project.  Marcella identified about 12 issues that still need attention.  Marcella said the P & I Committee would like to recommend that the Commission endorse the strategy as a working document, minus the 12 issues identified for further work. 

Motion:  Jeff Safford made a motion to accept in principle Kathy’s document as a working guide, and that the Commission agree to endorse the document in full, minus the 12 issues still needing attention.  Marcella Sherfy seconded the motion and it passed unanimously.

·        Preservation Program Update – Jeff Safford said we should ideally be doing a Historic Site Report on every structure we own, but that’s not practical before we work on every building.  We have a new crew, hired to just do roofing to protect the buildings.   Jeff told the group that Bob Spude from NPS was in town yesterday.  Bob has set aside $6,000 in his budget for us to make a video on historic preservation that could be used with Senators Burns or Baucus or for any other fund raising issue.  Jeff asked if anyone had suggestions about where we can go privately to have a 5-6 minute video created.  We need to use the money before the end of the federal fiscal year, September 30.

·        Historic Preservation Training Program – Bernie Weisgerber reported that we are recruiting students nationwide for preservation training in historic masonry and roofs, using the Brewery building.  Two training weeks are scheduled for Sept. 10-14 and Sept. 17-21.  Tuition is set at $350 for one week, and their enrollment target is 20 people, 18 paying and 2 scholarships.  Another step might be Heritage Expeditions where a recreation component is tied to preservation training, e.g., raft trip, horse back riding tied together with log building workshops. 

·        Preservation Crew Abroad – Bernie also reported that NPS is looking at taking our Preservation Crew to a warm place (Hawaii, Channel Islands) to work for the winter.  NPS would foot the whole bill and the crew would get a new experience (training).

·        Architecture Model – Jeff Safford reported that the model arrived from MSU yesterday, with 15-20 structures still in progress.  The model still needs protection around it immediately (a Plexiglas cover is planned), as well as a stand.  Jeff said it’s still a work in progress.  Jeff said John Ellingsen has been the key to its perfection, examining each building, modification requests, etc.  John agreed it’s been a wonderful experience and will be a popular addition to the town.

·        Orientation Video – Jeff reported that we had the premiere of the new orientation video last Wednesday in Virginia City.  Jeff expressed many, many thanks to Ellen Baumler who wrote the script.  She is such a very valuable asset to our projects.  Jeff reported that the Bozeman PBS station will air the video along with one done by UM for Daly Mansion, sometime during the month of July. 

·        Music Machine Repairs – Arthur Reblitz has committed to come here the last week of July to assess and work on repairs for our machines.  Art Reblitz worked in his early 20s for Bovey on the machines.  John Ellingsen will work with Reblitz throughout that week. 

·        MSU Collegan Magazine Article – Jeff gave Commissioners a recent article on Virginia City that appeared in the MSU Collegian Magazine.  He pointed out that there is also a special article on John Ellingsen.

·        Frontier House – Bernie Weisgerber updated the group on the Frontier House project.  He said this is the largest PBS project this entire year.  Bernie explained that this is Reality TV, with PBSs twist. Where three families experience the homestead era of 1883 first hand.  The families are not acting the part of homesteaders, but are modern families experiencing and showing the differences.  Their cabins were built from scratch, gardens started from scratch—they will be living the part for five months.  The 6-part series will air sometime in January 2002.  It will also be shown in Great Britain and maybe Japan.  This is a unique opportunity for Virginia City because VC will be shown as itself, and will have about 2/3 of the 1^st hour special devoted to the training time spent here.  There are great publicity implications from this.  Vogue magazine has devoted their latest issue to Frontier House fashions (14 pages)—Bernie’s picture is in corner of one picture.  PBS has given Museum of the Rockies the right to replicate one of the cabins for a Frontier House display, and will house the artifacts used in the film.  The Museum will refer their visitors to us and vice versa.  We could possibly contract with one of the three families to come back next summer for an appearance.  PBS has given Montana PBS the rights to document the making of the film.  Montana PBS will air the making of Frontier House immediately after the series is shown.

Montana Historical Society Foundation – Debbie Leadbetter

·        Debbie Leadbetter gave handouts describing the Foundation’s new capital campaign.  Debbie reported that the Foundation met in Virginia City last September and realized they were in big trouble financially.  Over 50% of the board agreed to contribute a substantial amount of money to keep the board alive so Jay Russell could be hired.  The Commission is helping with Jay assistant, Bev’s, salary.  Debbie said that Tim Bartz, the new Foundation President, was able to take the figures and make some sense of them.  The Board now feels like they know where they’re going.  They have very generous people on their board who have given in the past and have pledged money for the next five years.  The Foundation Board is meeting once a month now.  Debbie stressed that the only reason they exist is for Virginia City, the Society, Moss Mansion and Daly Mansion—to raise money for us because we really believe in you.  She said several members are on the Board specifically because of VC.  They are working very hard now, have seen much change with a new director, new president, and now they need fees in order to operate.  There are 19 on the Board, with no top limit.  The question was asked whether it requires a financial contribution to be on Board?  Debbie responded that you should either be able to contribute financially or get some contributions in another way---each board member must be a fundraiser.

·        Jay Russell, Foundation Development Director, reported that they recently submitted a “Save America’s Treasures” grant in early April for:  1) rewire and bring to code 21 historic structures; 2) reduce the fire load around town; 3) install a fire alarm system—total grant request $1,238,000.  We should hear back in July, hopefully affirmative.  We would have a year or two to raise the matching funds which can be hard or soft monies.

·        Membership program – Jay gave a presentation at last commission meeting where he was asked for more financial information.  Jay said that he gave that information to the Capital Development Committee who accepted and approved his proposal.  Jay then began working on the membership campaign.  Jay handed out a chart of business membership levels.  He explained that the individual campaign offers merchant coupons, so the business membership came about in conjunction with this.  Jay and Mary Oliver spent some time last week visiting businesses where they heard feedback from a number, obtained seven business members already and raised $1,900.  The Foundation has developed a logo for the Virginia City campaign, which Jay passed around for the Commission to see.  Maureen suggested getting vendors (larger corporations) who might partner with local businesses to provide assistance.  We could also get newspapers involved and highlight the preservation emphasis.  Jay said he has already been in contact with the Montana Newspaper Assn and will continue that.  He said that it’s very important to move to outer areas, people who are benefiting from the tourists here too.  Jay said that many local vendors are feeling heavily relied upon so outside communities—Ennis, Sheridan, even Bozeman would probably help.  The Capital Development Committee approved a three-year campaign, the program this year costing $17,500, $13,415 for 2002 and 8,875 for 2003.  Expenses will be taken from the revenue and the Foundation will receive 15% of the net for their operations.  Jay said their net estimates for the three years are:  $33,500, $42,272, and $62,199.  The program will include training in VC for employees in recruiting members and defining locations for membership information. 

Capital Campaign – Montana Historic Education Initiative – Jay reported that the initiative would apply to collections access (exhibits, publications, traveling programs, etc).  He asked if the Commission would review the priorities.  Jeff Safford was asked to provide Jay with a list of projects (handout) that would be appropriate.  Jay pointed out that this should be considered to be a thinking document only, with arbitrary figures.  Jeff asked P & I for some recommendations to be broken down in terms of dollars.  It was suggested that we create a Charles & Sue Bovey History Center in the NC Depot.   Jeff Safford mentioned that he sits on the MSU Music Advisory Council and they have resources that might help fund preservation of the music machines.  Jay expressed concern on the 3-year staffing cutoff, how to fund beyond that period of time.  Pat Roath expressed concern that the estimates are far too low, especially those associated with conservation of artifacts.  Jay requested that the Capital Development Committee work with him in the next couple of months to tweak the numbers and refine the last.  They are hoping to get a brochure out by September and would like to know the components (not necessarily the dollar amounts) by July 15.  It was suggested that we consider going to the Bovey estate or other donors and ask for help funding a Bovey History Center.  Jeff Safford said that community members approached Kirk Hansen in the last year or so and he was very receptive to the idea.  Another suggestion was to look into a visitor radio information system—i.e., tune in to 880, to hear about special events, etc.

Motion:     Mary Oliver made a motion that the intent of the priorities sheet be accepted with finalization deferred to the Capital Development Committee, then for prioritization and development to Management & Finance.  Maureen Averill seconded the motion and it passed unanimously. 

·        MOU – Jay referred the Foundation’s recent newsletter and reported that they have received $4,500 already.  Jay had previously e-mailed Commission the draft MOU with changes underlined.  Jay passed out the MOU with changes requested at the last meeting.  Jeff Safford referred to section 2 (1), and said that this may serve as a preventive for us to apply for our own 501(c) 3.  Jay said the intent is that it’s easier for one organization to be fund raising another, rather than two fundraising from the same individuals.  John Lawton suggest changing the wording to: MHC’s “general” fund raising efforts and activities be conducted through the Foundation with the exception of “special” fund raising “objectives,” as long as the goals and purposes of the MHC are being fully met.  Jeanette McKee suggested adding a one-year review factor.  It was asked whether this agreement was to exist in perpetuity?  It was suggested that we amend section V to add an annual review change “may be” reviewed to “shall be reviewed annually” and amended as needed.  Bill Howell asked why there was no mention of endowments.  Jay explained that all endowment information is included in Attachment A.

Motion:  Jeff Safford moved to approve the MOU as reworded and revised in section 2(1) and section V.  Mary Oliver seconded the motion and it passed unanimously.

Reference was made to Attachment A, regarding the costs of fund raising.  Concern was expressed about the 6% flat fee to be taken out—there may be several things including government grants, capital campaigns and special events that the Foundation is not involved in.  The comment was made that this is a reasonable cost for fundraising.  Jay provided a handout showing what the experts say.  Jay said another option could be to receive 3% for funds without Foundation involvement and 9% for those with direct Foundation involvement.

Motion:  Mary Oliver moved to approve Attachment A with the 6% pending Jay’s rewording and summation of the two.  Jeff Safford seconded the motion and it passed unanimously.

501 (c) 3 – Spence Hegstead – Jeff Tiberi introduced Spence who is from the Fish, Wildlife & Parks Foundation and formerly with FWP Commission.  Spence said that FWP has received more and more responsibilities that they have been required to take on, more pressures, but no funding to go with that.  They decided to develop a foundation to help fund these responsibilities.  The FWP Foundation was formed in 1999 to help pick up the slack.  Their Foundation is not funding something that is already being funded through traditional sources.  Spence outlined the steps required to develop a foundation:

1)      Must form a corporation through the Secretary of State which means creating bylaws, Articles of Incorporation (NOTE:  Articles of Incorporation are difficult to change, so make sure they are what you want, and put detailed rules in your bylaws, only basics in Articles.)

2)      Application to IRS for tax-exempt status is a detailed process.  It’s not difficult but time consuming.  It took Spence three months to respond with questions.  Be explicit about what you’re going to do—make sure to include all possible avenues for obtaining funds.  If your reporting shows funds from an undisclosed source in the application, problems arise.

3)      Consider the option of funneling funds through another foundation for donors to obtain tax benefit.  The downside to this would be that some foundations take a substantial administrative fee off the top (e.g., University Foundation takes 40%).   FWP has done this for as low as 5%.

4)      FWP has spent quite a few dollars to establish their foundation. Also, the FWP Foundation Board makes it’s own decisions about how funds are spent—FWP does not have input.  The FWP Foundation will look at their recommendations on an annual basis, but they aren’t tied to adopt their recommendations.

5)      Criteria to be on foundation board:  passion for the resource, give financially (important!)—must be willing and able to set an example, willing to give time (quarterly meetings).  The FWP Foundation asks their board members for $10,000 annually.  Members must also have the ability and willingness to network with director (Spence) to ask for their contacts.  They currently have five founding members with the intention to grow to 25.  The first five were planned to be all from Montana but beyond that they would go outside the state.

6)      Put together a board recruitment packet. Built a website.  Developed a logo (grizzly bear paw), create a brochure.  General promotional effort.

Spence then opened up for questions.  Is there anything that would preclude this commission from being the foundation, the same people?  Spence – some of same members would be OK, but it probably would not be a good idea to have all the same. 

How much did it cost to get you launched?   $154,000.  Maureen Averill said that our need is the ability to accept donations—not necessarily be the main fundraising arm.

Spence – the advantage for you would be the tax benefits for the donor.  Dale Mahlum – Do you have different membership levels with premiums?  Spence – not right now, but we will have soon.  We have talked about it, but don’t have in place.  We haven’t actually gone out on the street to try to raise any money yet.  Our first fundraiser begins July 28 with two major projects right now (bear dog program, and wild animal shelter—partnered with Mikal Kellner Foundation).  Spence said he doesn’t have any results to report yet, but is optimistic.  What are your goals?  Goal is to develop a $10M endowment.  Special projects will then be planned for on an annual basis. 

Jeanette reminded the group of the Strategic Planning process done last July when we explored the 501 (c) 3 with the agreement that we would continue to seek information.  She asked whether just working with the Foundation give us the greatest amount of flexibility?  Jeanette used the Daly Mansion example of visitors writing $10,000 checks right then and there.  Donors can still give to Foundation, but we need to be able to accept donations as tax deductible.

Maureen referred back to the Ginny Tribe planning results – Goal B, speaks of fiscal integrity, the Foundation is still the main fundraising arm, but the more avenues we have the better.  Maureen said that we could obtain a 501(c) 3 in just three weeks from application to OK.  John Lawton said we need to define what we’ll do with the tax-exempt status, know exactly why we’re doing it.  There are lots of fundraising techniques we still haven’t explored.

Marcella reported that Arnie’s concerns were to feel like the commission moves in a way that we groom our relationship with the foundation, not spreading ourselves so thin in terms of staffing and trying to help two separate organizations.  She said that through the Foundation individuals could still give to Virginia City Fund.  The last thing we want to do is dilute the beginning of a relationship with the Foundation.  Jay reported that a fund is being set up at Madison Valley Bank specifically for VC funds.

We also need to consider the ongoing costs of filing the status and tax returns and an annual audit ($6-8000/year).   We also need funds to administer the funds.  Jeff Safford said that since we have such strong support from the Foundation he’s convinced we need to energize that.

How much does foundation get if we are offered a check $100,000?  Jeanette said the Foundation still gets 3% even if they were not involved in recruiting/receiving the funds.

Marcella said that the Society has ability to assure donors of a tax deduction the same as if they give to the foundation.  She explained that other governmental agencies have that as well—we just need to explore the governmental ruling.  John Lawton said he has done some research, but the downside is that some donors won’t give to government.  Also the Legislature may not be likely to give any general fund money if we have contribution funds sitting in the bank.

Options:

1)      Don’t pursue tax exempt status

2)      Ask Jeff to fill out the paperwork and get our own 501 (c) 3

John Lawton suggested we take Spence’s information under advisement then later define what we’ll do with the status.  Jeanette suggested that we consider deferring a decision until we see what result we are receiving from the Foundation then decide whether to take action next spring.  Jeanette suggested we check with Moss and Daly to determine positives and negatives of having own tax-exempt status.  Jeanette agreed to contact Daly and Marcella will check with Moss.  Marcella will also check on the governmental status option.

Grant request, Burns update – Bill Howell – Bill reported that the change in party leadership might affect us some.  He still thinks we will be successful, but it may not be as easy.

Fundraising Priorities – Mary Oliver – Mary has done much research and determined the top priorities for fundraising efforts:

#1        Fire protection, especially given the recent drought.  This includes electrical upgrades and rewiring, removing vegetation and other fire prevention efforts, communication equipment, fire protection training, hydrant systems, securing an adequate water source, a deluge system.  These cost estimates are in the $100s of thousands of dollars. 

#2        Building and object preservation – accept money from many sources to reach the goal.  Develop a quality brochure or flyer with history (older photos) of specific buildings, consider leasing buildings with tenant agreement to repair or restore in exchange for free or reduced rent and send to 6,000 mailing list.  Mary recommended that funds be allocated from the capital account or funds raised by brochure fundraising effort. 

#3        General Fund Raising – Mary recommended that at least two MHC members attend each Foundation meeting to keep communication lines open.  We should also invite Foundation members to a strategic planning session to brainstorm ideas.  Mary stressed that each MHC member is directly responsible for fund raising.  Mary challenged MHC members to choose a building from the list of priorities and one classification of objects and brainstorm ideas for fund raising.  Get back to Mary by July 15 with your choices.  Mary will then work through the list and work with Jeff Tiberi at the September meeting. 

Jeff Tiberi said that he realized this was a very difficult assignment, especially for a new Commissioner.  Jeff also said that Jeff Safford has prepared a priority list for mostly educational items.  Jeanette asked Jay Russell how he sees this interfacing with the Foundation.  Jay agreed that this could be a good joint project.  Jay referred to the Jeff Sheldon priority list of 25 buildings and said that we need photos of each.  We need an integrated list of buildings with priorities from all sides worked—political, interpretive, educational structural, safety.  Jeff Tiberi and Jeff Safford will work on this.  The group agreed to defer acceptance of three fundraising priorities until the September meeting.

Finance and Management Committee – Maureen Averill

CY 2001 Budget – Maureen referred the Commission the proposed budget and pointed out an error she found in the total cash remaining.  Karlee said that the final formula did not pull out the MHS overhead fee, so the total cash remaining figure would be $966,757.  Maureen reported that she had asked Jeff and Karlee to split out the funding sources into statutory and capital funds, and make the statutory budget for operations balance each year.

Maureen expressed concern that the capital funds were continually being depleted, and had suggested to the Management & Finance Committee that we come up with a bottom line figure to stay above for this fund.  Jeff Tiberi reminded the Commission of new sewer hookup fees we will be asked for soon—between $100-300K.  Jerry Fox estimated that our contribution wouldn’t be needed until 2003.  After discussion, the consensus was to keep between $350-400K for reserve.  When we’re getting close to this amount we’ll need to work extra hard to replenish to this level for opportunities and emergency capital improvements.

Maureen also pointed out that the advertising costs proposed ($30,000) is a very small amount considering what we need to promote.  Maureen said she had asked Jeff Tiberi to draft a position description for a business/marketing, business development person.  The position would probably have to be funded from capital funds, with a  $50-60K estimated salary.  Jeff Safford said he feels an on-site manager or a special projects coordinator may be more important than a business/marketing manager at this point in time.  Jeanette asked the Commission to approve the concept of a business/marketing manager and chain of command.  Jeanette recalled since very early on with Ginny Tribe a business/marketing person was suggested as a must.  After October 1 we have the ability to hire more positions. Finance and Management should work on the staffing issue in preparation for the September meeting.

Motion:  Maureen Averill made a motion to approve the proposed budget with correction to the bottom line cash available.  John Lawton seconded the motion and it passed unanimously.

Tourism Advisory Council – Gold West Country – Jeff Tiberi reported that the Tourism Advisory Council had questions about the $3,500 line item in the Gold West Country budget for Virginia City. Gold West had submitted the item for infrastructure and advertising and the item was cut.  Karlee will call Sarah and ask what she needs to do to clarify our intended usage.

Audit – Commissioners received a copy of the audit.  Jeff Tiberi said he will appear before the audit committee June 25.  He said the auditors made eight recommendations, of which three are completed, one is a will comply and four are in progress.  Jeff will write a letter to NPS re: interest on our $1 million grant.  If we’re required to pay back interest on $1M, Jeff will prepare legislation to get the money from the general fund since that’s where the interest went.

Gambling – Jeff Safford reported that the P & I Committee expressed concern about moving too quickly on the gambling issue.  P & I concerns included requesting a response from the Governor’s office (Bill Howell said that issue was covered), the need for public comment on the issue, the long-term image we want to project for these sites (Williamsburg of the West, not Deadwood), clarify our purpose, commitment to quality, historic preservation context, image may have everything to do with sustaining the VC we have now.  Gambling was historic, but what and how we do in this sense.   Dale said he doesn’t think the revenue would be enough remuneration to offset the bad publicity.  Diane said she sees this as one concessionaire asking to be in same arena as his competitor and that we can’t tie his hands.  One vendor wants to be able to compete.  He’s already behind because of limited season.  We need to be very open to helping concessionaires.  Jeff Safford – Without taking a position, thought it might be fantastic publicity to get into the controversy.  If we request the right to initiate gambling we’d get some real press.  Maureen – Historically we know it was here.  Marcella Sherfy– Barb Pahl would have some great information about other communities where the line has been drawn.  Jeanette said that we need to invite public comment, and plan a public meeting in VC, advertise in the papers, libraries, articles written for area and county.  Public comment period will be 30-45 days.

Public Comment made at meeting:

Lewis Headrick– Historically there was prostitution here too.

Suzie Johnson– It should be clarified that gambling can only exist where there’s a liquor license.  Wells Fargo could be changed from a fine dining experience to something totally different if another vendor took over.  We need to think of VC as the town and where it’s going.

Nancy Allen – Gold panning and searching for garnets could be considered the historic gambling of VC.

Pat Roath – We need to research what the real living history of gambling was in this area.

John Ellingsen - There was gambling, poker tables, and mechanical slot machines.  A few of those would be a living history and would be good, but limited.  Mechanical slots are illegal but Dale could work on a Legislation exception just for VC. 

Marcella Sherfy – Is it still a family experience?  Not risking Deadwood?

Jeanette McKee – This wouldn’t be a moneymaking opportunity as much as a chance to tell the story.

Jeff Tiberi – What about a hybrid—have a table with dealer, play with fake money. 

Jerry Fox – Bovey had gambling machines there with lights turned down and sound off.  We could put them in cabinets and tone it down.

VCPA Update – Suzie Johnson – Suzie reported that VCPA now has the Hangman’s Building open even thought it isn’t staffed full time—so people can come in and reflect.  They have books available with an honor box.  They are continuing to prepare grant applications for the building.  The money would be used for the back end of the building to develop an education center.  VCPA is looking at many events to be held at the Hangman’s building, art events, etc. 

The Wed night lectures started last week with the Premiere of Layers of Time.  Suzie will e-mail a list of this year’s schedule.  The Victorian Ball is scheduled for Aug 25, along with Heritage Days that same weekend.

Suzie as her project for the P & I Committee took a piece of Kathy McKay’s recommendations work on the oral history project.  VCPA is working with Jodie Foley, Oral Historian at MHS, and will be interviewing individuals in VC to tell their stories. 

VCPA is also planning Victorian gardens as another project.  Bernie suggested connecting with ALFAM to get historic plant ideas.  Jeanette also suggested the State Garden Club who recently took on the Daly Mansion.  Jeanette will get info to Suzie.  VCPA is also helping categorize the view sheds through the city planning board.  There are threats to historic sites not on state property, and VCPA wants to identify all these sites and find out what’s going on with them.

Jerry Fox

·         Wastewater Treatment Program – The city is applying for one additional grant.  If this one is successful (and it looks promising), the project will be fully funded.  They have been successful in two grants already.

·         Olsen Case – The case is now before the Montana Supreme Court.  The outcome should be decided in about 90 days.

·         City Street Ordinance – The city instituted a new ordinance stating that any business or individual utilizing city streets is required to have a minimum $2 million liability policy holding the city harmless.  This affects our stagecoach concession.

·         Advertising – Jerry said that we need to work hard to track where Chamber phone callers are getting our number.  This will really help us determine the effectiveness of our advertising.  Karlee will pass this request on to Julie Johnson so she can inform her staff.

·         Storytelling – Jerry said that Maryann Silvie, storyteller coming to Virginia City, is looking for stories.

·         Thanks to Commission – Jerry thanked the Commission for the donation of tickets and John Ellingsen’s time for tours for the Tommy Lee fundraiser.  The fundraiser was to raise money for Tommy’s medical expenses.  The tickets were used to put together a “getaway package” for the winner.

·         Design Review and Zoning – Jerry reported that John Benedict has moved a 1900s farmhouse from west of Sheridan to the northern view shed of town.  Jerry said the house is fitting for the view shed.

·         Face the State – Jerry will be on “Face the State” TV program this coming Sunday, to talk about local events with emphasis on the Bozeman Trail Celebration.

Bovey Estate Update – Dale Mahlum - Dale reported that John Corwin who works for the Sue Ford Bovey Trust has talked with Dale recently.  It’s still not clear which relative will be the recipient of the trust, but Dale has informed the attorneys that Dudley Garage is a liability, not an asset.  There are also some pieces of land behind the MHC office, including the door barn.  The attorney wants us to send a proposal, including an appraisal.  We could offer to split the costs of the appraisal.  John Ellingsen said there is a lot near the old substation on Cover Street, in the yard of the Bovey stone house (50 x 100 ft lot) surrounded by our property on all sides.  The Commission agreed to allow Dale to prepare a proposal and include a list of properties that we would like to include.

Railroad Advisory Council – Dale Mahlum – Dale reported that some minor track repairs are needed caused by settling of the railroad bed.  Our crews will be able to make the repairs in house along with help from MCC.  Dale expressed thanks to Chris Hahn and Steve Meloy at Dept. of Commerce, for helping us put together SB 30, which passed the legislature.  The bill reduces the hours required for steam locomotive certification from   960 to 480 hrs (Oct 1).  This will really help us with the staffing needs on No. 12.  Dale said they have more people learning how to operate the train.  Jeff Safford suggested an honor board for people who have helped the towns.  Jeff suggested that the P & I Committee determine what the requirements for the board will be.

Dale reported that we had a minor derailment on opening weekend, where the track spread and one wheel fell inside the track.  The problem was fixed, and the crew had no problems this past weekend.  Dale is planning a Railroad Advisory Council meeting the end of June before the 4^th of July weekend.

PUBLIC COMMENT

Suzie Johnson – Suzie said she is happy to see that you’re going with Jay and the Foundation for the 6%.  It’s great to have someone out there making monies for the Commission.

Dawn Hagedorn – Asked whether the idea of hiring a professional on-site manager still being considered?  Jeanette responded that we would be discussing another job position at the next Management & Finance Committee meeting.

Suzie Johnson – Suzie asked about the logo contest that was sponsored jointly by the city, chamber, VCPA, Vigilance Club and MHC.  She wondered whether the logo Jay showed was the result of that contest.  Karlee responded no, that Jay’s logo would only be used for Virginia City fundraising through the Foundation.  She added that the logo contest only drew four entries, none of which met all the criteria the judges were looking for.  The plan is to use the $100 contributed by each of the five groups to come up with a logo.  Karlee will work with Bob Morgan who has volunteered to help develop some prototypes.

Jerry Fox – Jerry suggested that we consider fixing up one of our houses for legislators who want to come with their families to stay.  They could reserve days throughout the summer.  Bernie said that NPS has a beach cottage for that purpose and it works very well for NPS.

Director’s Report – Jeff Tiberi

·        River of Gold Brochure – Jeff told the group that the interpretive brochure for the River of Gold is still in draft form, but will be used as an interim for this year and will be refined for next year along with the signing at the site.

·        TAC meeting – Jeff reported that he had just attended the latest Tourism Advisory Council meeting in Whitefish.  There is a lot of interest in how the bed tax is being used. He thanked them for helping us during the session and said that we have a good working partnership with the tourism industry.

·        Mold, lead, asbestos – Jeff reported that we recently had the State do tests in a number of our buildings for mold, lead and asbestos.  Some mold problems were identified that can be alleviated by removing carpeting and improving ventilation in buildings.  The lead issue may be a concern, as it may accumulate in dust in the buildings where are employees are working and disturbing the dust.  All potentially affected employees will be tested for free.  There was no asbestos found in buildings tested.

·        History Camp – We will host two weeks of History Camp this summer, one for kids and one for teachers.  PBS will be filming a documentary on the camp. Virginia City will be seen on PBS at least four times in the next year (History Camp, Orientation Video, The Making of Frontier House, and Frontier House – the last two are national broadcasts)

·        BLM Grant – A grant for fire protection issues was awarded to MHC, along with several agencies that jointly applied for a matching grant.  The total project is over $100,000.

·        Pending Grants – Jeff referred to a handout listing all the grants we’re currently working on.  We presently have $12 million in grants pending.

·        Staff update – Jeff referred to a handout showing the latest VC staff update.

PUBLIC COMMENT

Dawn Hagedorn – Dawn asked if we could include the stagecoach in our advertising promotions for the train.  She said the stagecoach is being left out of our promotions.  Karlee and Jeff responded that we really haven’t done any advertising outside of what we’re doing with the Chamber, which has been pretty generic advertising promoting the whole town.

Lewis Headrick – Lewis agreed that we have to promote all of VC, despite who owns or leases from whom.  Lewis said he has business from each (private and state).  Lewis also said he would like to see more historic dress around town.

Mary Oliver – Mary said that Lloyd Harkins has offered to donate a flourmill to the Commission that was originally from Dillon.  He would like it to be in VC, but he has an offer from back east and would like an answer soon.  After discussion, it was agreed that the mill would be appropriate in Nevada City—there was a flour milling industry in Sheridan at one time.  The size of the mill and wood finish would require a building or shelter be built for it.

Motion:  Bill Howell made a motion to accept the flourmill, asking Lloyd to continue to house it until we have a building ready.  Maureen Averill seconded the motion and it passed 8 votes for, with Marcella Sherfy voting against the motion.

NEXT MEETING DATE – September 11, 2001, Virginia City

Task List from June 12, 2001 Commission Meeting