St. Chad’s Building Committee 3

Meeting # 28

05/04/2008

Revised

 

Attendees:  Paul Apodaca, Larry Babineaux, Merri Jean Jones, Bo Keith, Debra Kincaid, Jan Kingsbury, Eileen Simpson, Richard Simpson, and Father Brian Winter

 

Members Absent: Susan Carson, Bob Gough, and Rich Lehoucq

 

Handouts provided prior to meeting: 

            Agenda,

            Draft of financial information packet for the Vestry

 

 

1.   Richard Simpson, BC3 Vice Chair, opened the meeting.  Father Brian Winter led the prayer.

 

2.   Larry Babineaux moved the agenda be accepted.  The motion was seconded by Bo Keith and passed unanimously.

 

3.   Eileen Simpson presented corrections to the April 20 meeting minutes that had not been distributed to the committee.  Debra Kincaid moved the April 20 meeting minutes as revised be approved.  Larry Babineaux seconded the motion.  The motion passed. 

 

4.   Paul Apodaca reported that because he had not received any updates from the Parish Treasurer there was no financial report to present at this meeting.  Bo Keith announced that not all BC3 members had paid for their polo shirts.  Bo will be collecting $20 per shirt prior to his submittal of the shirt funds/invoices to the Parish Treasurer. 

 

5.   Financial Strategy.

a. The BC3 discussed the draft financial package attachments prepared for the Vestry, which fulfill the April 13 Vestry request.  Richard Simpson pointed out changes to the working budget that had occurred since the last BC3 meeting.  The pledge campaign target has been increased from $250K to $300K and the bond sales target has been moved up from $350K to $400K.  These changes were made because of an error in the cost of an Associate Rector in 2013.  Once this expense was corrected in the spreadsheet calculations, the increase spiraled into the cumulative surplus/loss figures (also called cumulative net cash flow or CNCF), which in turn led to the adjustment of the pledge and bond targets.  The resulting scenario now shows nearly all positive numbers for the CNCF.  It must be noted that average percentages were used for the calculations and all amounts are projections, which by their very nature represent the unknown.  It was stated that the hump for CNCF is at its maximum during 2010 – 2011.  The mortgage decreases as a percent of the total budget after that period.  It was questioned if we as a group can take on the risk using the assumption of 10% growth year after year.  It was suggested that a more likely scenario is a surge of growth that would occur immediately after the building project is completed and then begin to level off, rather than having consistent growth every year.  It was noted that having a surge at the beginning is good in that it provides more of an impact early rather than later in the scenario; similar to the effect of compounding.  Pledge dollars may increase even when the number of pledge units level off, as occurred previously in St. Chad’s history.  A suggestion was made to change the percentage of growth to 15% for the first couple of years following building and then lower the percent to 8% after that surge.  It was noted that a variety of multiple changes could be made to the calculations, but the final affect would be the same; therefore we should send the packet to the Vestry for their approval because we have massaged the numbers all we can.

 

After discussing the financial attachments, the discussion turned to the 2-page report to which they were attached.  The report contains proposed decisions for the Vestry.  It was generally agreed that the content should be kept simple since the issue is complex and difficult to understand.  It was agreed that Vestry members need time prior to the Vestry meeting to study the content in order to fully understand it.  Arranging one-on-one conversations with Vestry members in order to answer questions and field concerns was recommended.  Richard Simpson agreed to contact Susan Carson to assist him and Debra Kincaid in making phone calls to selected Vestry members (Carl Henry, Nancy Hoeing, Phyllis Boyadjian, David Berkey, and Chuck Wernle), since the remaining Vestry members are also members of the BC3.  A separate discussion prior to the May 18 Vestry meeting will be arranged between Father Brian, Hal DeHoff, and Richard Simpson.  Paul Apodaca noted that the number of pledges to date (listed in the first paragraph of the cover letter) should be changed from 84 to 85.  The Vestry actions listed in the cover letter, if accepted, will provide a nod to the BC3 to go forward.  The phrase “substantially met”, in the sentence stating the BC3 would not continue unless “financial targets set for the capital campaign extension and the bond sales are substantially met”, was translated to mean that the BC3 does not have specific numbers to be targeted, but will re-run the spreadsheet again after the capital campaign and bond sales to see where we are and to satisfy us that the project is financially doable.

 

Jan Kingsbury moved the BC3 send the Building Project packet as prepared to the Vestry with follow up calls to Vestry members for any explanation and answers to questions that may be needed.  Debra Kincaid seconded the motion.  The motion passed unanimously.  Richard Simpson agreed to send the packet via email to all Vestry members and arrange the follow up calls.

 

b. Jan Kingsbury stated a firm plan has not been established for the “close the gap” second pledge campaign.  Jan, Father Brian Winter, Merri Jean Jones, Richard Simpson, and Bob Gough had met on Tuesday, April 29, to discuss the second campaign and the modification of the targets for the bond sales to $400K and pledges to $300K.  It was agreed by this sub-committee that outside assistance was needed for this additional pledge campaign.  The approach in this next phase will probably be personalized by having small groups meet in homes, although some parishioners may be approached individually.  Persons on limited or fixed incomes may not be targeted for the additional pledge campaign, since the desire is to not make anyone feel badly if they cannot respond.  These small groups can also be an opportunity to simultaneously introduce the bond program.  Jan noted the plan is a work in progress, especially until the Vestry has shown support. 

 

Richard Simpson reminded the group that BC3 members will be leading the small group settings.  Hopefully Vestry members and others from the congregation will help the BC3 to lead the small groups, showing wide-spread support for the building project.  The reaction within the small groups should provide us information on where support is located and to what extent the congregation is engaged. 

 

c. Richard Simpson reviewed the latest proposal and contract from Terri Mathes from the Episcopal Church Foundation, for assistance on a limited basis.  The ECF fee is $1,500 per day plus expenses.  ECF would help analyze our fund-raising to this point and what we might expect for the second go-around.  ECF would also provide training, helping us to feel more comfortable in our presentations within the small group settings.  It is estimated that a total of four to five days of their time and two days of travel would result in fees of $5K - $6K.  Because the training may also help the Vestry members with their annual stewardship drive, the benefits extend beyond the Building Project.  The ECF evaluation of our fund-raising is less valuable than the training, since our intent is to go ahead with the second campaign to see where we stand financially.

 

A draft motion, written by Bob Gough and sent to Father Brian Winter and Merri Jean Jones, requests the Parish Treasurer release pledge information to the ECF through a member of the BC3.  The BC3 discussed the release of pledge information in light of our written acknowledgment that only the Parish Treasurer would know individual pledge amounts.  It was decided that since the ECF would not need names in order to perform their analysis, only money amounts would be provided.  Even though Hal DeHoff could provide that information only to us, if would be more valuable to have Terri Mathes’ experience when looking at pledge data.  Larry Babineaux moved the BC3 authorize $500 to be paid to the ECF, the required down payment on the contract, contingent on the May 18 Vestry meeting results.  Jan Kingsbury seconded the motion, which passed unanimously.  Richard Simpson agreed to talk with Terri, giving her a heads up about doing the analysis and training for BC3.

 

6.   Old Business.

a. Jan Kingsbury reported on the May flower fun-raiser.  Jan indicated this will not be a large money maker, but believes Sunday will be festive with all of the flowers.  The purpose of the event is to help keep the Building Project in the forefront of the congregation.  To date, there have been 55 flowers pre-sold; the orders split between corsages and the single stems.  There are plans to have extra flowers available for sale on Sunday.  The work party to put the flowers together is set for Saturday, May 10 at 1:00 pm in the Conference Room.  Jan asked for volunteers to assist with the distribution of the flowers on Sunday.  She will send email reminders to the volunteers. 

 

Jan Kingsbury presented the booklet, The Spirituality of Fund-Raising, written by Henri Nouwen.  She recommended everyone read it, suggesting it would take about 45 to 60 minutes total to read.  The booklet presents the idea that fund-raising is ministry, and the enthusiasm of the fund presenter is captured by the responder.  Jan also suggested that in response to the argument that we should build only what we have the money for, she believes God has provided us the people who have the money for what we need.

 

b.                Father Brian Winter indicated that no new items are on the Parish calendar.  He reminded everyone of the Parish Retreat in September.

 

c.                Items for the BC3 web site include updating the monthly newsletter article and the April 20 meeting minutes.

 

d.                There was no other Old Business.

 

7.   Status of Action Items.

a. Action Item 14-3 (Building Contractor Selection).  Larry Babineaux reported he had received an email response originally sent to Debra Kincaid from Geer Condon.  The contractor wrote of the building issue with Hope Episcopal Church, indicating that he had received limited information to provide an acceptable Guaranteed Maximum Price.

 

b.             Action Item 19-3 (Decide how to present Information about shirt sales and collect shirt orders using the web site).  Bo Keith stated he did not know whether the order form had been added to the web site.

 

c.             Action Item 23-2 (Plan golf tournament fund-raiser).  This action item was deferred due to the absence of Rich Lehoucq.

 

d.             Action Item 23-3 (Modify the new member letter to include Building Fund information).  Father Brian Winter reported that no action has been taken on this item, pending meeting with the Vestry Membership Committee.

 

e.             Action Item 23-6 (Determine installation or not of Altar Rail in sanctuary and/or chapel).  Father Brian Winter reported no action has been taken.

 

f.               Action Item 27-1 (Begin planning the second stage capital campaign.)  This action item was discussed in Section 5.b. of the agenda.

 

8.   New Business.

a.             Larry Babineaux read a letter he had previously sent to Bob Gough, BC3 Chair, tendering his resignation to the BC3 for personal reasons.  Richard Simpson expressed to Larry, on behalf of the entire committee, our thanks for the all the work Larry has done during the past year for the Building Project.

 

b.             Other.  There was no other New Business.

 

9.    The next BC3 meeting is scheduled for Tuesday, May 20 at 9:00 am, since the regularly scheduled meeting conflicts with the May 18 Vestry meeting. 

 

 

New Action Items

28-1.       Richard Simpson – Email the financial packet to all Vestry members, arrange follow up calls to non-BC3 Vestry members, and arrange a discussion between Father Brian Winter, Hal DeHoff, and himself prior to the May 18 Vestry meeting.

28-2.       Richard Simpson – Contact Terri Mathes of ECF to give her a heads up in regard to her providing assistance in pledge evaluation and training, contingent on Vestry support.

 

 

Respectfully submitted,

Eileen Simpson

5/05/2008