MAY 10, 2006


PRESENT:  Don Deibert; Bob Granstra, Roy Green, Jim Huber, Linda Malekadeli


ABSENT:  Fred Johnson


ALSO PRESENT:  Melissa Barnard – Library Director; Brandi Pfohl – Recording Secretary


I.                     CALL To Order

By Malekadeli at 7pm


II.                   APPROVAL - of May 2, 2006 Minutes

Minutes approved as submitted.


III.                  PUBLIC Comments



IV.               OLD Business

1.      Budget Response Plan

Barnard reviewed what happened at the meeting of the City Council on Monday, May 8.  Citizens spoke on behalf of MCTV.  Council reaffirmed that they will be going forward with the one year payment of $106,100 to MCTV.  Final approval of the City’s budget will be Monday, May 22.


2.      Alternative Funding

A.     Friends of the Library

Barnard introduced JoAnn Taylor from the Friends of the Library.  Taylor explained the Friends are a 501C3 and also have a foundation.  Most organizations start out with a 501C3, it’s straight forward and easy to obtain.  The organization then has the ability to solicit and sell items for funding.  You can sell up to $5000 without paying sales tax; just have to keep track of what was sold. There is also a cap on income earned from investments.  Taylor also stated the Friends established a private foundation after receiving a donation from the Blake Estate because the income from investments was putting them over the limit.  This is a supporting foundation to the Friend’s 501C3.  She stated the advantage of being a foundation is there are no limits on investment income.  She also stated the Friends don’t have fund raising events; their income comes from the book sales, memberships and investments.  Malekadeli asked when was the Friends of the Library established.  Taylor stated in 1975, they had to reapply in 1999 due to missing paperwork.  Malekadeli questioned why they are their own 501C3 and not under the City of Midland’s.  Taylor stated it makes the Friends a separate legal entity. They have control over their money, without having to go through the library.  Barnard stated if the Friends were part of the City’s 501C3, they would have to follow the City’s rules and ordinances. On their own, they can make their own by-laws, and pick and choose what projects they want to fund for the Library.  Huber asked if the donation was given to the Friends under the terms of an endowment, where principal is not touched, just the interest.  Taylor stated the donation didn’t have any stipulations attached to it, just give it to the Friends of the Library.  Huber questioned what percentage of the Library’s budget is contributed to by the Friends.  Barnard stated not a lot.   The Friends funded the Teen Room, which was a large contribution.  Generally $20,000-30,000 a year for projects are funded by the Friends.  Malekadeli asked what year the foundation was established.  Taylor stated private foundation status in 2000-01, then supportive foundation status in 2003.  Huber questioned whether the supportive foundation status was in conjunction with any other foundations.  Taylor stated no, they were on their own.  Granstra asked how many staff members are involved.  Taylor stated one part-time person for phones, email, membership paperwork and book sale recruiting.  Barnard stated it is important to note that the Friends developed a mission statement defining how the money was to be spent.  When the Library presents the Friends with a project idea, the mission statement guides them to see if the project is within their idea of what the money is to be used for.  Granstra asked about the size of the board.  Taylor stated they now have 9 members, by-laws state the members for the foundation are picked by the Library Board.  So far they have picked members from the Friends Board to also serve on the Blake Foundation board.


B.  Non Profit Status Information

Deibert reviewed the process for filing for a 501C3.  Every organization that is tax exempt has a 501C3 status.  He stated it would be important to find out how the City Council wants the Friends of MCTV to operate.  Establish their own 501C3 or fall under the City’s. If they have their own it would remove any liability exposure for the City.  Deibert also asked Taylor for a copy of the Friends of the Library’s by-laws and registration papers.  He also stated the commission will need to put together a format for the Friends of MCTV on how much per year is needed.  That amount could change if the pending legislation passes.  Deibert also asked Taylor if the Friends used an attorney to set up 501C3.  Taylor stated at first no. When the Blake money came in, they used an attorney to set up the foundation.  Barnard stated again the Friends are completely free of any jurisdiction from the City and the library.  Malekadeli stated the sub-committee should get together to discuss the format.  Barnard stated if there is an interest for a Friends of MCTV, a couple of commissioners, people from the public, and MCTV access users should meet with Beacom to organize a Friends of MCTV.   Taylor informed the commission that it can take at least 6 months to be established as a 501C3.  Deibert stated he could draft the documents within 2 months.  Malekadeli stated the sub-committee of Green, Deibert and herself will meet with Beacom.  She also invited the public for input and participation.


3.   Commission Vacancies

Barnard stated the positions vacant on the Cable Commission are the Citizen at Large and Media Professional.  There have been no applicants for the Cable Commission.  She also encouraged anyone from the public to come forward and apply.  This is a vital time for MCTV and will need a full commission to move forward.  Huber asked how someone who is interested can apply. Barnard stated by calling the City Manager’s Office, through the City’s website, or calling MCTV. 


V.                 NEW Business

Barnard questioned if the commission wanted to hold a special meeting during the summer or keep to the regular schedule.  Malekadeli stated the sub-committee would be meeting this summer.  Huber stated if sub-committee feels the need for full commission meeting, one could be scheduled.




VI.               ANNOUNCEMENTS

Granstra stated MCTV staff did a great job in putting the ACM conference together.   Malekadeli agreed it was very informative and well organized. 


VII.              ADJOURNMENT – Next meeting, September 13, 2006

Deibert moved to adjourn.  Granstra seconded.  Meeting adjourned at 7:40pm




Respectfully Submitted,


Brandi Pfohl

Recording Secretary