Board Members Present: Ann Poulos, Vice-Chair and Acting Chair; Susan Olberding, Secretary; W. Linn Montgomery, Treasurer; Bill Beaver; Sam Henderson; Jack Metzger; Carl Phagan; Peter Pilles; Barbara Poley; Carolyn Shoemaker; Larry Stevens; and Miguel Vasquez.

Board Members Absent: Susan Garretson, Chair; Sheri Burnham; Susan Golightly; Leigh Kuwanwisiwma; Max Oelschlaeger; Wayne Ranney; Katrina Rogers; and Octaviana Trujillo.

Emeritus and Ex-Officio Members Present: Frances McAllister and Dick Wilson (p.m. only), Emeritus; and Chio Black, President-elect for the Muses.

Others Present: Congressman Rick Renzi (9:00 to 9:45 only); David Maurer, Director of the Flagstaff Chamber of Commerce (same times as Congressman Renzi); Robert Breunig, Director; Stefan Sommer, Roger Clark, Lynn Yeager and Ginger White, staff.

I. Call to Order
Acting Chair Poulos called the meeting to order at 9:30 a.m.

II. Visit by Congressman Rick Renzi
After Chio Black complimented the museum for having an article on the front page of Sedona Magazine, Congressman Rick Renzi was introduced to the board and visitors. He had been given a quick tour of the MNA anthropology collections and informed about some issues with collections management. Robert Breunig introduced the Congressman, stating that one of his top priorities was a new collections center on the MNA campus which could better house and care for MNA’s collections and federal collections in its care. His dream would be that a collections center endowment fund would be established, comprised of both public and federal funds. An anonymous, private donor has come forward with a serious commitment to provide $3 million to establish that collections center endowment and is negotiating a final agreement with Director Breunig. This gift demonstrates to the federal agencies the depth of MNA’s commitment to provide quality care for the natural and cultural history objects in its care. The Congressman assured the board that he understands the pressing need for a collections center, and the need for the federal government to support MNA’s stewardship of the collections of objects from federal lands. Congressman Renzi praised the museum for “going out of your way to protect federal property.” Congressman Renzi needed to leave at this time, and thanked the museum for providing him the opportunity to learn about the collections.

Robert introduced David Maurer, Director of the Flagstaff Chamber of Commerce, as someone who has understood the importance of this project and has been working with the museum to contact Congressman Renzi’s office. Mr. Maurer promised to continue to remind the Flagstaff business community of the important role the museum plays in the community.

The board took a short break. An article from the summer 1980 Arizona Arts & Lifestyle Magazine was distributed to the board. The article begins, “..the Museum of Northern Arizona…, would be making cuts in services and staff due to falling revenues…The museum’s financial situation has emerged as far more serious than first indicated (in a separate article printed in March 1980). Originally, research activity was to be ‘curtailed’ and ‘six to eight’ senior staff members would be terminated. Now Director Hermann Bleibtreu estimates, ‘We will be losing half our permanent staff.’” This 1980 article contained many similarities to more recent financial issues and challenges at MNA.

III. Approval of Minutes of Last Meeting
A motion was made to approve the minutes of the June 26, 2004 meeting. The motion was seconded and approved.

IV. Approval of the Consent Agenda
A motion was made to approve the items included in the consent agenda. The motion was moved and approved.

V. Report from the Chair
Ann asked Lynn Yeager, the controller, to explain the need to pass a resolution that would change the names of those able to conduct business for Robert W. Baird & Co. This company is one of two the museum uses when stocks are transferred from a private party or company to the museum. Robert Breunig and Lynn Yeager replace Marsha Tompkin as signers with Baird. A motion was made and seconded to approve updating the contact names for activities with Robert W. Baird & Co. The motion was approved unanimously.

VI. Report from the Director
Robert elaborated somewhat on the gift of $3 million to the museum, explaining that, as far as he knew, it was the largest single gift to MNA. The donors recognize that this gift will encourage others to give to the museum. They impressed upon Robert that this gift was intended to express their confidence the new Director and in the museum and its future. The donors stated that notice of the gift can be made public any time it is convenient for MNA, and that they would like to remain anonymous for now.

Robert reported that the Navajo Marketplace is taking place this weekend. The preview was last night, with Chair of the Navajo Nation, Joe Shirley, in attendance, as well as two World War II Navajo Code Talkers and Ms. Navajo. The preview was attended by almost 900 people – significantly more than attended last year. Shonto Begay is the featured artist, and has a number of pieces in the enduring creations gallery. Quarterly reports were sent to board members earlier this week, and Robert detailed some of the departmental highlights. The Hopi Marketplace that occurred over the Independence Day holiday weekend was successful according to the artists, although attendance was flat and sales in the MNA shops were significantly lower than those of last year. Despite sales and attendance, however, Robert feels that both the public and staff are more optimistic about the museum and its future. He would like to keep that positive momentum going and keep encouraging people to give to the museum.

VII. Report from the Finance and Investment Committee
Linn Montgomery explained that although the finance and investment committee usually meets a few days before the board meeting to approve the financial statements from the previous month, no quorum was available at their last meeting. Therefore, Linn asked the board to accept the financial statements without committee approval. A motion was made and seconded to approve the financial statements for the month of June. The motion was approved. Lynn explained that through the month of June the museum has spent $160,000 less than the budgeted amount for expenses. She did not know, however, if this meant that department heads did not intend to use their budgeted amounts, or if they intended to purchase supplies and equipment later in the year. She reminded the board that even if the museum met its budget, it would be still be negative by almost $400,000. Admissions were only 56% of the amount budgeted through June. Membership is ahead of budget: membership saw a significant increase at the beginning of the year, but that increase has lessened as the year progressed. Robert stated that attendance in June was 17% lower than last year, while May’s attendance decreased 35% from last year. Attendance is dropping in the busier, summer months, which Robert finds perplexing, as the museum is spending more on marketing. One factor might be that although attendance is up regionally, local visitation may be lower than last year. For example, travel to the Grand Canyon NP might be higher, while visitation to The Arboretum or Lowell Observatory might be lower. Their was some discussion on the need to attract more local visitors to MNA, and the fact that out of town visitors may not know about the museum. Robert explained that the public programs committee has been working on developing an exhibits philosophy and strategy which will soon be used to determine appropriate venues for exhibits and other public programs, and will hopefully increase visitation.

Linn noted that Larry Fester (non-board member of the finance and investment committee) requested that Lynn Yeager prepare a letter of engagement with the same auditors as used in 2003. The committee has been reviewing the investment policies and the donor bill of rights, and will present them to the board for approval at the October meeting.

VIII. Discussion of Fundraising and Endowments
This discussion was held as a part of the discussion on the proposed approach to next year’s budget. Robert narrated a PowerPoint presentation highlighting the direction he would like to take for the 2005 budget. He emphasized the need to utilize only sustainable revenue – that base revenue which the museum can reasonably count on each year (excluding extraordinary gifts, one-time grants, etc). Robert stated that he will not recommend a budget of more than $2.9 million for 2005, given the sustainable base of $2.6 million. There was a discussion on the impact to the budget made by each department, as well as some alternatives that could be explored to lower expenses and increase endowments and other funding in support of general operations and specific programs. A motion was made that the board supports the Director’s approach to the development of next year’s budget. After some discussion, the motion was amended to state, “It is the policy of the board that the Director will submit a 2005 budget that is sustainable and based on the current projection and will not exceed $2.9 million.” Both of the motions passed unanimously.

IX. Collections Center
This item was discussed immediately after lunch. Robert explained that he and the donors agreed the collections center should be architecturally pleasing and consistent with other MNA architecture; be environmentally sustainable and use green building principles; provide space for scholars, classrooms, and storage; be accessible to the public; and have the capability to be added on to in the future. The cost was estimated at $250 per square foot x 20,000 square feet for a minimum total of $5 million. Another $1 million was added for unforeseen costs. Discussion followed on the details of costs and needs to be met.

X. Report on the MOU with the Hopi Tribe
Carl Phagan explained that the committee met and has drafted a general Memorandum of Understanding (MOU) with the Hopi Tribe. It is anticipated that sub-MOU will be drafted to address specific projects (including the SW mural project) that will be acceptable to the Hopi Tribe, the museum, and to donors and grantors. It is anticipated that the general MOU will be presented to the Hopi Tribal Council for approval soon, and it will then move to the museum’s board of trustees for approval. Robert thanked Carl for his efforts and stated that the response to this MOU has been good.

The board recessed for lunch at 12:05 and resumed at 1:05.

XI. Public Programs
Robert introduced Stefan Sommer, the museum’s new deputy director for public programs. Dr. Sommer summarized his experience in educational public programs and grant writing. He stressed the importance of reaching out to our visitors, especially those who have been participating less over the last year or two. He noted that key to the success of public programming is an understanding of the audience. This can be determined by using appropriate language in surveys conducted before an exhibit opens (front-end evaluations), or during or after an exhibit to try to determine what stories the audience wants to hear. A strategic plan should be used to plan for exhibits that define core themes. Stefan described utilizing a central theme in each gallery which would contain both a core exhibit and related rotating exhibits.

Note: Agenda items XII, XIII, IX, and XV were discussed while a replacement projector could be found for Stefan’s PowerPoint presentation.

Stefan’s presentation encompassed the need for museums to be storytellers and the ways that information could be imparted to the audience using various techniques of communication. He explained that people come to museums for different reasons, and that various programs appeal to different audiences. He emphasized the need for front-end evaluations when attempting to get funding for a program (e.g., the NEH wants to know that our audience wants an exhibit on X, and that the museum has a firm understanding of how to best tell the story of X before they will grant funding for the project). He also emphasized the need for a strategic plan and an exhibits policy to assure that MNA will provide appropriate programs that adhere to our mission, can grow our membership, and can increase our storytelling abilities in the community. There was some discussion on a proposed exhibit on boats of the Grand Canyon that Roger, Stefan, and Robert are exploring with the Grand Canyon Association. Robert noted that this exhibit would be a good way to connect MNA with the local community, and could be done in conjunction with Plateau Journal articles, ventures tours, and other museum programs.

XII. Review of the Homestead Proposal
Robert reminded the board that the Wilsons had moved from the Homestead and were interested in assuring that the property would be cared for and used appropriately in the future. He emphasized the need to preserve the building and keep its historic integrity, as well as earn income from the building in an appropriate way. Roger Clark reminded the board that the Wilson Foundation was responsible for the removal of asbestos, and stabilization and renovation of the property. Based on discussions before the renovations were completed, the Wilsons anticipated that the Homestead would be used, after they moved out, as a small photo gallery and/or an eatery or small conference center. Roger Clark presented a proposal for use of the Homestead for a period of time until a long-range feasibility study could be completed. Dick Wilson stated that he and his wife, Jean, would like to see a business plan before any move is made into the Homestead. Susan Olberding said that the Homestead subcommittee will be looking into options.

XIII. Review of the AAM Accreditation Process
The process of accreditation was explained, with emphasis on the two major parts for submission. The application form, which is the shorter, less detailed document, will be sent to the AAM on December 3rd – the one-year anniversary of their revoking our accreditation. The second document is the self-study questionnaire which includes board approved copies of MNA’s bylaws and other policies, a strategic plan, staff resumes and job descriptions, photographs, collections policies and forms, facilities information, and numerous other reports, details, and documents. This will not be submitted for some time after the questionnaire, as the museum has one year to complete the questionnaire after receiving a ‘go ahead’ from the AAM. Robert would like to see the application finalized and the self-study questionnaire drafted for the November 6 board meeting.

XIV. Report from the Publications Subcommittee
Robert reported that the Plateau Journal will not be published in coordination with the Grand Canyon Association’s efforts, but that MNA looks forward to working with them on other projects in the future. One idea for the next two volumes would be to republish articles published previous in Plateau Journal as “Plateau Classics” although no idea was finalized by the committee.

XV. Report from the Contract Science Subcommittee
Documents for the separate operation of MNA Environmental Solutions (MNA ES) are being drafted by their board of directors. Articles of Incorporation have been drafted and sent to the Arizona Corporation Commission. MNA ES cannot operate independently from the museum until this document is reviewed and approved by the Corporation Commission – anticipated as several more weeks. The final draft of the bylaws has been competed and is ready for review by the MNA ES’s board of directors. The operational agreement is also under review by the MNA ES board of directors. The fourth document is a policy for determining which projects may or may not be appropriate for MNA ES. For example, the document will help MNA ES staff determine if/how the proposed project adheres to MNA’s mission statement. A conflict of interest document is also under preparation, as their may be board, staff, and others who are associated with both the museum and MNA ES.

XVI. Collections Committee Actions
Ann presented a list of three items offered as gifts to MNA, and asked the board to consider accepting them. Soonya McDavid, daughter of Richard and Jean Wilson, has offered an oriental rug to the MNA to replace the Navajo textile, previously donated by the Wilsons, recently removed from the floor of the BCDC living room for repair. Dr. David Elliott, NAU Geology Professor, recently transferred a paleontology research collection of Pennsylvanian aged fossils from the Naco Formation. As research continues on the Naco project additional material will be transferred. This scientifically documented collection contains at least four holotypes, ten paratypes, and many published & or illustrated specimens that compliment our already important collection of Naco Formation fauna. Helen Mackersie is offering a Navajo textile that was purchased by her father in 1939 from a trading post in Holbrook, AZ. Dr. Laurie Webster’s (MNA Navajo textile consultant) recommendation is that the MNA accept it. It is in good condition and is not a design that is already represented in the MNA collection. A motion was made to accept the items as presented. The motion passed unanimously.

EXECUTIVE SESSION

XVI. Other Business
There was a short discussion on the history of the courtyard and the plans for its future.

XVII. Adjournment
There being no further business, the meeting adjourned at 3:35 p.m.

Approved at October 2, 2004 meeting.

Respectfully submitted,

Susan Olberding
Secretary to the Board