Flathead Valley Community College Foundation

Board Meeting

Thursday, November 9, 2006

3:30 PM, Blake Hall, Room 140

 

~ Minutes ~

 

Present:      FVCC Foundation Board of Directors - Kathy Barkus, Russ Barnes, Carol Blake, Henry Brown, Sally Elliman, Nancy Gordley, Pat LaTourelle, Leslie Mercord, Andy Miller, Diane Morton, Kippy Redman, Jarrod Shew, Paul Williams, Cheryl Wilson, and Pat Winkel,; FVCC Foundation Associate Members – Mary Gibson; A&A Member – Suzy Williams, Chair; Ex-Officio Members – Jane Karas and John Engebretson; and FVCC Staff and Administration – Ruth Ackroyd, Sue Evans, and Shelia Gestring.

 

Excused:     Lynn Bauer, John Bowdish, Donna Lawson, Aaron Mower, Margie Simpson, and Ralene Sliter. 

 

I.                APPROVAL OF MINUTES OF SEPTEMBER 7, 2006

                  Nancy Gordley motioned to approve the minutes of September 7, 2006.  Cheryl Wilson seconded the motion and it passed unanimously.

 

II.               TREASURER’S REPORT

                  Paul Williams reported on the Foundation’s Statement of Financial Position.  As of October 31, 2006, Foundation assets total $5,453,559.01.  Liabilities currently stand at $112,050.78, pending distribution for program and scholarship expenses in January, 2007.  Paul noted a significant increase in the Foundation’s support of programs and scholarships from as recent as October 2002 when the transfer amount was $45,486.44.

 

III.             COMMITTEE UPDATES

                 

                  Executive Committee

                  Paul Williams reported that the Executive Committee will meet with Tony Vanorny of Junkermier, Clark, Campanella, and Stevens to discuss the audit of the Foundation’s 2005 financial statements on Friday, December 1, 2006. The Executive Committee will then recommend approval of the audit to the full Board at the January 18, 2007 Board meeting.  Paul noted the in-kind contribution from the college to the Foundation representing salaries and benefits to staff the Foundation Office, as well as a significant portion of the Foundation’s operating expenses.  This in-kind contribution allows the Foundation to avoid charging administrative expenses to the individual funds so that 100% of all contributions are used for the purposes intended.

 

                  Finance & Stewardship Committee

                  The review of the Foundation’s accounts has been completed, and the terms and conditions of gifts to the Foundation have been verified.  Paul estimated that there is approximately $148,000 available to help with the Building for Success campaign including money in an unrestricted art fund, building fund, unrestricted general fund, and unrestricted technology fund.  The market value of the Foundation’s endowment fund has reached a milestone at over $2,000,000.  Year to date, the endowment fund has experienced a $103,000 growth in market value, reflecting a 6% return over the last 10 months and an annualized return of 7.2%.  55% of the Foundation’s portfolio is held in equities, with the balance in cash equivalents and fixed income obligations.  Paul noted that the Foundation’s portfolio is not managed as aggressively as some held at larger institutions, and the Foundation does not yet have the mass to invest in some of the alternative investments, such as hedge funds.

                  The Finance & Stewardship Committee met with Clint McGarvin, Portfolio Manager at First Interstate Bank in Billings, and Kirk Fulford, Trust Officer at First Interstate Bank in Kalispell, on October 17th.  Clint reported that over that past three months, the performance of the Foundation’s portfolio has equaled benchmark numbers at 2.2% after inflation.  Performance is slightly under benchmark for the year to date, with the benchmark being 2.4% and the Foundation’s portfolio at 2.1%.  First Interstate is looking at expanding client portfolios by purchasing alternative investments, or investments, other than traditional publicly traded stocks and bonds including real estate, private equity, hedge funds, and commodities.  Paul noted that there is no commitment on the part of First Interstate’s clients to purchase alternative investments, however, it will soon be feasible to do so.  The Finance & Stewardship Committee will be meeting to discuss investment ratios as set forth in the Finance & Investment policy.

 

Copies of the minutes of the October 17th Finance & Stewardship meeting were distributed, and the history of the Foundation’s investment managers and the process by which First Interstate Bank was selected to manage the Foundation’s assets was discussed.

 

                  Resource Development Committee

Nancy Gordley reported that Darrell Worm has moved from the Foundation’s Board of Directors to the Associate level, and Steve Becker has resigned from the Board as his schedule makes it difficult for him to travel from Libby to Kalispell for Board meetings.  The Resource Development Committee is nominating Dan Vogel to fill one of the vacancies on the Board of Directors.  Born in Washington, Dan is the Wine Distribution Manager for Fun Beverage, Inc.  He has an extensive background in the hospitality industry and a comprehensive knowledge of all phases of wine marketing and wine education, working in Washington and Hawaii before moving with his family to Montana.  Dan graduated from Spokane Falls Community College where he served as Associated Student Government President.  He is a recent graduate of Leadership Flathead, Class of 2006, and is a National Ski Patrol, Medical Care and Mountain Rescue Instructor.  He writes the “Wine Life” section of Flathead and Missoula Living magazines.  Dan and his wife, April, reside in Whitefish and have four adult children.

 

Paul Williams motioned to approve Dan Vogel as a member of the FVCC Foundation Board of Directors.  Kippy Redman seconded the motion and it passed unanimously.

 

Nancy noted that the Resource Development Committee has identified other prospects for Board membership and at least one more person will be nominated to the Board of Directors.

 

IV.              FVCC AMBASSADORS & ALUMNI ASSOCIATION

                  Suzy Williams reported that members of the FVCC Ambassadors & Alumni Association will meet tomorrow, November 10th, at 10:00 AM in the Board room, and Foundation Board members are invited to attend.  Bill Roope, FVCC Director of the Northwest Montana Regional Tech Prep Consortium will update A&A members on new Occupational Trades programs offered at FVCC and a new pilot program being offered by FVCC for area high school students – the Dual Credit Career Cluster Project – A Vision for Montana’s Future.  Suzy noted that the Ambassadors & Alumni Association was formed two years ago as a group of friend-raisers who are “accurately informed” about the college, campus activities and more.  The Association meets twice a year.  Members pay $25 per year in dues and receive two tickets to a Flathead Valley Community Theatre production and a 20% discount on one Continuing Education class as a benefit of membership.

 

V.               PRESIDENT’S REPORT

                  FVCC President, Jane Karas, informed Board members that Carol Larson’s mother, Carmen Cobb Stufft, passed away on Sunday, November 5th.  Services are scheduled for Monday, November 20th at 10:00 AM at Christ Episcopal Church.

 

FVCC Culinary Arts students held their first showcase dinner at Red’s, Wines & Blues on Sunday, October 29th.  The dinner was sold out with 57 tickets sold at $100 each and silent and live auctions were held.   All food for the evening was donated, and Red’s donated the restaurant and their upstairs room, leaving wine as the only expense.  The dinner was a success, raising over $9,000 to support the Culinary Arts program.

 

The Board of Nursing conducted its second site visit and exit interview of FVCC’s proposed Licensed Practical Nurse program yesterday, November 8th.  After a few minor adjustments, the college will receive the green light to go ahead and the program will go back to the Board of Regents for approval.  The college plans to have the program up and running for the spring 2007 semester.  10 students will be accepted into the program for the first year, and the college hopes to expand the program thereafter.

 

FVCC’s new buildings are moving ahead as scheduled.  The Occupational Trades Building will be completed in mid-January 2007 for the spring semester, and the Arts & Technology Building will be completed in May and ready for the fall 2007 semester.  The bid for the Early Childhood Education & Care Center will go out on Friday, November 17th and will be due back mid-December.  The college hopes to begin construction of the Early Childhood Education and Care Center in January or February and have the building completed in August and ready for the fall 2007 semester.  All three buildings are scheduled to be completed in time for FVCC’s 40th anniversary celebration in the fall of 2007.

 

The Board of Regents will meet next week in Missoula, and FVCC’s Board of Trustees will meet Monday, November 27th at 3:45 PM in the Board Room in Blake Hall.

 

FVCC’s annual report is at the printers and due back in two weeks.  The college is compiling a tri-fold fact sheet and will distribute copies to Foundation Board members once it is completed.

 

The Daily Inter Lake published an article on the success of FVCC’s Elderhostel program on September 28, 2006.  Jane noted that an out-of-state participant in one of the Elderhostel’s Women’s Only programs has made a significant contribution to help other women participating in the program which will be matched by her employer, Wells Fargo.

 

The Legislature will convene in January 2007 and will be addressing the issue of revising the funding formula for community colleges.  They will also be working on the details of the tuition cap announced by the Governor for the University System.  Jane noted that the tuition cap does not include community colleges.

 

VI.              BUILDING FOR SUCCESS CAMPAIGN UPDATE

                  Nancy Gordley, Campaign Chair, reported that several visits with potential donors have been made over the last few weeks with approximately $500,000 received in gifts in pledges.  Schellinger Construction, the Flathead Builders Association, and Columbia Falls Aluminum Company have each pledged $30,000 to name a shop bay in the Occupational Trades Building.  Nancy reported that to date, approximately $105,000 in cash and pledges have been designated for the Occupational Trades Building, $115,000 for the Arts & Technology Building, and $30,000 for the renovation of Ross Hall – Science & Technology Building.  An additional $70,000 in cash and pledges has been designated for the Early Childhood Education and Care Center.  Gifts received to date have been in the $5,000 to $50,000 range.  The campaign is still in the “quiet phase” and the campaign committee is working towards achieving $750,000 in gifts and pledges of the $3.5 million goal before going public.  In-kind contributions including cabinetry and doors are being considered by several potential donors.  The campaign committee will next be scheduling solicitation visits with the presidents of our local banking institutions.

 

VII.            DEVELOPMENT REPORT

                  Ruth Ackroyd congratulated Diane Morton on the recent arrival of her son, Zaden Ford.

 

                  The 2006 annual fund appeal is at the printers and scheduled to be mailed next week.

 

                  Board members are invited to attend an Association of Fundraising Professional’s webconference on Tuesday, December 5th from 11:00 AM to 12:30 PM in the Board Room in Blake Hall.  The webconference, entitled “What Fundraisers Need to Know About Budgets and Financial Statements,” will emphasize the funder’s perspective on all aspects of the financial management of the nonprofit organization.  The college is able to offer this webconference through funding received from the Sustainability Fund in support of the Nonprofit Development Partnership.  Notices will be mailed, and Board members are asked to R.S.V.P. to Sue Evans in the Foundation Office.

 

                  The Flathead Valley Community Theatre’s production of the family friendly play, The Curious Savage, opens Friday, November 10th.

 

                  Ruth congratulated FVCC Culinary Arts Instructor, Hillary Ginepra, and the Culinary Arts students on the success of their first showcase dinner.  Ruth noted that Hillary is interested in working with the Foundation on events that showcase the Culinary Arts program in the new kitchen in the Arts & Technology Building.

 

                  The college donated three gift baskets to the Flathead Boosters for their event to be held at Flathead High School on Saturday, November 11th.  Proceeds will benefit both Flathead High School and Glacier High School.

 

                  The Glacier Performing Arts Center has hired Andrea Goff as their new Director.  The committee met yesterday and is moving ahead with fundraising and planning efforts.

 

                  Flathead on the Move, with funding from the Surdna Foundation/Andrus Family Grant, will focus on water quality issues in the coming year.  Flathead on the Move seeks to provide a forum for civic dialogue to find ways of understanding and benefiting from growth and changes in the local economy.  Ruth will keep Board members informed of upcoming meetings.

 

                  Ruth attended the Council for Resource Development (CRD) annual conference in Washington D.C. last week.  While in Washington, she spent time on Capitol Hill visiting the staff of our Montana Senators.

 

                  Ruth reported that Leslie Mercord and Jarrod Shew have volunteered to serve on a new subcommittee of the Finance & Stewardship Committee to analyze which of the Foundation’s funds have assets available for spending and to make recommendations to the full Board on how those funds should be distributed.

 

                  There being no further business to discuss, the meeting was adjourned at 4:55 PM.