Attendees: Allan Affeldt, Sat Best, Robert Breunig, Ann Deegan, Susie Garrettson, David Gillette, Sam Henderson, Elaine Hughes, Marlene Lloyd, Susan Olberding, Stefan Sommer, Larry Stevens (minutes), Miguel Vasquez, Lynn Yeager, Tracy Anderson

Dates for next meetings were presented in 2005-2006. Meetings will be held at the Colton House unless otherwise mentioned.

The last IPC meeting minutes were discussed but not approved.

No comments were received on the Lord Report - we need more interaction on this topic, as it is an on-going process.

Ann D. and Ernie are working on the website, which should benefit the re-accreditation process.

The self-study packet (4 work books) has been received from AAM, and 26 September 2006 is when our materials must be submitted for re-accreditation. These will be on reserve in non-circulating books at the MNA Library after 20 October 2005, as well as the full Lord Report and other institution’s planning documents.

Dr. Breunig indicated that a Board meeting will be held this fall to update and engage the Board and get feedback on the re-accreditation process. We welcome key staff on the IPC, and expect to have staff meetings on the process as well. The website is the best avenue for taking public comments, and a meeting of the MNA membership will be held in January to present the process and solicit ideas.

The Lord Report contains a list of stakeholders and the draft MNA strategic goals and objectives. These goals were approved by the Board on 15 October 2001. The latter document will be re-distributed to those who have not gotten it, and it will be distributed to the Board. The 2003 AAM letter of (unmet) expectations will be distributed as well.

Ann Deegan presented a summary of possible MNA Strategic Issues (9 August 2005) to stimulate discussion, along with the Lord Report list of issues. Generally, the two documents identify the same issues.

Sat Best presented the City plan and neighborhood relations are important, as open space is fast disappearing. The Hwy. 180 corridor into Flagstaff is the last entrance to town that is not over-developed.

Re-zoning is underway of a parcel that is being annexed is/was commercial property.
House construction is being planned along Hwy 180. Mike Fox tried to promote a heritage corridor, but it failed. We must consider the “local built context” and being proactive with neighbors and the City. The “local built context” is an important issue for the IPC.

Katrina Rogers is the IPC Chair and will be out of town some of this Fall. A co-chair is needed, and Alan Affeldt was nominated by Katrina. Although he expressed concern that he did not well enough understand his responsibilities, he agreed to co-chair, particularly as Ann D. will be the lead for the AAM re-accreditation.

The IPC generally agreed on the strategic issues, and Dr. Breunig reiterated the need for MNA sustainability by creating an endowment of >$20 million. He queried the IPC on a time frame for a capital campaign.

The AAM’s critique of MNA centered on financial solvency and citing the sale of collections in 2002 as a short-term response to a long-term problem. To achieve re-accreditation, we must address the long-term issues.

Step 1 is to stop the bleeding and balance the budget. Step 2 is to find new funding sources, especially endowment, increased income, and keeping the budget under control.

Lynn Yeager – The budget was draining, prior to the present Board.

Sat Best - We are balancing the budget but we are not yet self-sustaining.

Sam Henderson – If we demonstrate sustainability, donors will be attracted, but the staff has taken the brunt of the financial blows thus far.

Robert Breunig – The endowment has not been built, in fact it has decreased over the past 40 yr by being raided. The endowment needs to be a rock-solid foundation of financial support for this institution, and requires institutional governance that we have not yet had.

Alan Affeldt – MNA Foundation will be developed to stabilize and build the endowment. This will help demonstrate to AAM and donors that we can operate with a balanced budget. Now is the time to approach donors for challenge grants and get commitments in writing. The MNA Foundation is to be initiated by the end of the year.

Achieving $20 million is likely a decadal process; $5 million is possible in Flagstaff, but additional funding will likely require a broader audience, in Phoenix and elsewhere.

The last capital campaign was about 1986. The Branigar/Chase donation was a single gift in the 1990’s.

We will need extra money for maintenance and endowed chairs. In all likelihood, a total gift of $35-40 million is needed as an unrestricted endowment.

At the next meeting we will discuss how to conduct and the potential returns of earned income from: admissions, shop sales, professional services, food services, contributions, membership drives, facility rental, and other sources.

End at 15:05.

Respectfully submitted,
Larry Stevens

Next IPC meeting: Thursday, October 27, 2005, 2:00-3:00 pm at the Colton House

Minutes approved by MNA Board, October 22, 2005