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HomeMy WebLinkAboutApproved Minutes - 2007-10-18 City of Lake Oswego HISTORIC FURNACE RESTORATION TASK FORCE Historic Furnace Task Force Meeting Summary October 18, 2007, 2 p.m. Oswego Room, West End Building Present: John Gordon, Chair; Susanna Kuo; Corina Campbell-Sack; Sarah Neitzel Others Present: Jerry Knippel, Director of Special Projects; Jane McGarvin, Deputy City Recorder; and Barb Guthrie, Secretary to the City Manager Chair Gordon called the meeting to order at 2:05 p.m. in the Oswego Room, West End Building, 4101 Kruse Way. l. Overview of Project Status Chair Gordon summarized the project for the benefit of Ms. Guthrie as follows:  A design for stabilization and restoration of the furnace has been finalized, with a few more cosmetic items to be worked on that were not structural related.  The Task Force received information from Pioneer Masonry on the estimated costs on the restoration work.  Pioneer Masonry has some experience with the National Park Service and has the credentials to do this type of work. There are not many contractors with experience on restoring furnaces built at the turn of the century.  The Task Force has its preliminary budget, but the budget needs to be fine tuned to arrive at a supportable documented estimate for the fund raising campaign.  The Task Force, at its last meeting, talked about the need to find someone with experience and ability to guide the fund raising campaign. Mr. Knippel noted that two people (Nancy Headlee, Executive Director of the Oswego Heritage Council, and Stephanie Wagner, Executive Director of the Friends of Tryon Creek) were not present at this meeting but both have had a lot of experience in fund raising efforts. Ms. Kuo noted that both ladies probably would not be able to take a leadership role in a fund raising campaign, but might act in an advisory capacity. Ms. Headlee worked with Andrew Edwards at the Lakewood Center during their fundraising campaign for the Stagehouse, which was larger than this project. She has stated that it was an arduous process, with weekly meetings during which every person on the committee reported on their subcommittee’s work during the prior week. The committee chairs had to keep on top of their subcommittee to make sure they were making progress throughout the campaign. Chair Gordon stated he felt there were people who would be willing to contribute as well as serve as committee members and subcommittee members on a fund raising Historical Furnace Task Force Page 1 October 18, 2007 campaign. He was concerned that it took three years to get to this point, much longer than anyone expected, and he would not want to see the construction delayed because the fund raising took that that length of time. The Task Force needs someone who has experience in running a rather large fund raising campaign. Ms. Kuo and Ms. Campbell-Sack are scheduled to meet with Mayor Hammerstad about her thoughts and recommendations. The Task Force wants to identify large corporations who would be willing to give large sums of money, apply for grants, and get school children involved as well. There were a broad range of sources of funding. 2. Barb Guthrie regarding Grant application process. Ms. Guthrie explained she had been asked by Mr. Knippel about a year ago to do some research about possible grants for the furnace restoration. She explained that her back ground was working in art museums; in that capacity, she has written a number of grants. When contacted by Ms. Campbell-Sack, the first foundation she looked at was the Getty Foundation, which has a conservation/treatment grant program, which provides funds up to $250,000 per project. She feels the furnace restoration would fit nice into that program based on what her experience, as the Getty Foundation gives money for structures having historical significance. Ms. Guthrie explained the procedure with the Getty Foundation was to answer a list of questions, keeping the response to three pages, which was essentially asking to apply for a grant. Most of the questions have been answered and she was waiting for the archaeological report. From her experience of previously applying to the Getty Foundation, they like to know that research was already done and other work accomplished, because that appears there is more commitment to the project. The research part makes their ears stand up because that is what they do, as they are huge supporters of research and publishing. She was waiting for the last report before finalizing the document; Mr. Knippel had provided her with interim reports. Ms. Kuo noted the Oswego Heritage Council has a lot of viewer friendly archaeological information on their website. The problem with the interim report is that it does not address much about the furnace foundation. The report included information about artifacts that had been found. She hoped the final report would address information about the furnace foundation itself. Mr. Knippel noted the City’s commitment can be demonstrated by the fact it has spent $100,000 on the research component so far. Ms. Guthrie stated Mr. Knippel had talked with her about the need to prepare a final budget, as it was necessary to prove you know what the whole project was going to cost. She can begin updating the information next week. This is the perfect time to submit the inquiry because they start the grant cycle in April. Most of the background information on the history has already been written, so it will be a matter of including numbers and more technical data that needs to be filled in. She thought she could work with Ms. Kuo and Mr. Knippel to get the additional information. Historical Furnace Task Force Page 2 October 18, 2007 The Task Force discussed whether the interpretation component would be included in the project. It was determined that the interpretation would be a component separate from the restoration piece. Ms. Guthrie explained Jane Heisler, Director of Public Affairs, had asked her to look into grants for interpretation. The grants she looked at wanted the restoration to either be well underway or completed before asking for money for the interpretation component. Several members expressed concern that they thought the Charge Statement to the Task Force included both restoration and interpretation. The Task Force discussed identifying items to be included in the Project Contingency. Mr. Knippel noted the contingency generally was for costs for inspections, or other costs that are totally unknown. Mr. Knippel noted they have the plan specifications and the final report would probably run 150 pages. Ms. Guthrie noted the initial request to apply for a grant will include a list of documents available documenting what has been done. The Getty Foundation receives hundreds of thousands requests, so they were very strict on the number of pages that is submitted. If we are lucky to be asked to apply for the grant, that is when we can provide additional information and show all the documents. The Task Force identified a number of sources that could be referred to, including the Oswego Heritage Council website, the archaeological reports, and Carla Cielo’s report. Ms. Kuo expressed concern there isn’t a fund raising campaign committee in place. The Oswego Heritage Council has been very tentative about it, and she didn’t think they would be willing to take the lead when filing for grants. Ms. Guthrie stated that for the Getty grant, the applicant did not have to be a 501(C)(3) non-profit organization. Her intention has always been to apply as the City of Lake Oswego. Other grants Ms. Kuo has identified required the non-profit status. Mr. Knippel and Ms. Guthrie discussed the need to formalize the formal understanding between the City and the Heritage Council, and also to involve members of the Finance Department and the City Attorney’s Office in this discussion. Mr. Knippel noted that all the expenditures for the project so far have been made by the City, and nothing has come from the Heritage Council or the Friends of the Furnace. Ms. Kuo said she has an application from the Collins Foundation which requires the applicant to have the 501(C)(3) designation. Ms. Guthrie stated she did some searches as well relating to large companies in the area that might be contacted to ask for donations, but the information was on her computer. Ms. Campbell-Sack noted Ms. Kuo is very concerned about the role of the Heritage Council, and asked what would happen if the project was a City project with a group of citizens overseeing the project, volunteering, etc. All of the financial support has come thus far from the City. Ms. Kuo explained that there is currently a Friends of the Historical Furnace Task Force Page 3 October 18, 2007 Furnace group under the umbrella of the Heritage Council, and asked if there could be a Friends group organized as part of the City. Mr. Knippel noted the Heritage Council got involved so funds could be received under their 501(C)(3) designation. The Task Force was created by the City Council. Ms. Kuo expressed concern that if the project were under the auspices of the City, whether applications could be made for grants from the Oregon Community Foundation, which requires applications be submitted by 501(C)(3) organizations. Mr. Knippel responded that the Heritage Council might still be able to apply for the funds, and if the grant is received, would forward the funds to the City for the project. This arrangement would need to be formalized. Ms. Guthrie agreed there needed to be a formal agreement between the City and the Oswego Heritage Council. The City is basically a non-profit, but does not have the 501(C)(3) designation. Ms. Kuo stated the Friends of the Furnace have received approximately $3,700 in donations. She explained that the Oswego Heritage Council was recently told they cannot keep those funds in a separate account that they have to be included in the regular books of the Heritage Council. It is a bookkeeping problem now as it is a separate account, and the Heritage Council Board and Treasurer were working to resolve the issue. Ms. Neitzel said she was concerned there could be problems if a foundation asked to audit the books of the Heritage House as they might not be able to track the funds. Mr. Knippel stated these were questions to ask Finance Director Richard Seals and Deputy City Attorney Evan Boone. Ms. Guthrie proposed drafting a memorandum of understanding between the City and the Oswego Heritage Council that would state that all money raised in the effort would be forwarded to the City for the expenses relating to the Historic Furnace Restoration. Ms. Neitzel asked if the Heritage Council could apply to foundations which require the 501(C)(3), or if the lack of this designation by the City would stop the group from applying for those grants. Ms. Kuo explained the Heritage Council’s treasurer is concerned about the separate account, and the funds not appearing on their income tax return. They are working to resolve this issue soon. She is concerned that the group does not miss the opportunity to file for grants. Chair Gordon noted it was time to figure out what the next steps are, as we don’t want to slow down the process. Ms. Guthrie stated she felt she could begin to finalize the Getty Foundation letter of interest. This is not a matching grant. It can be used as a match for other grants requiring a match. It is also excellent campaign material to say you have received a Getty Grant. She previously worked at OMSI which received money from Mr. Pamplin, as he likes to back winners. Historical Furnace Task Force Page 4 October 18, 2007 Ms. Guthrie explained she had talked with Mayor Hammerstad that she was going to be meeting with the Task Force, and that she had been working on the Getty Grant. Mayor Hammerstad thought that was a great idea and will be meeting with Ms. Kuo and Ms. Campbell-Sack next week. Ms. Kuo said one question she would have is whether Mayor Hammerstad could give names of people who might be willing to spear head the fund raising aspect as well as note the lack of members. Mr. Knippel suggested scheduling an update of Council to let them know the progress the Task Force has made on the project. Chair Gordon concurred the Task Force has a lot of successes to report. The next step is to figure out how to pay for the restoration project, which will include applying for grants and a fund raising project. The advice received from the experienced fund raising people is to develop a plan and have leadership. The project needs lots of community support and involvement, and the Task Force needs to take advantage of every opportunity possible. Ms. Kuo said she has not yet shared with others the material she had prepared for the 1772 Foundation grant. The letter of interest is limited to one page. She is still lacking the financial aspects. Chair Gordon suggested the group discuss the expenses that were provided by Gary Vonada from Pioneer Masonry, and other anticipated expenses. Mr. Vonada is a reputable contractor, as experienced as anyone in this kind of work, and the numbers can be broken down into five or six categories, such as grouting, drilling, scaffolding, etc. Other unknowns include the cost of the floor, a reasonable contingency that would cover escalation in the price of materials and labor. There may be other items that had not been identified. Ms. Kuo mentioned inspections and permits. She asked how quickly Mr. Vonada could provide a written estimate on the costs he talked about. Chair Gordon said he thought it would be less than a week. Mr. Knippel stated he thought the Task Force could generate the items to be included in contingency right now. Contingency is generally a percentage of the overall project costs. Ms. Kuo asked what the cost might be for the floor. Ms. Campbell-Sack recalled the Task Force talking about just putting gravel down. Chair Gordon stated he did not think the numbers were a stumbling block. The Task Force has the numbers it needed from Mr. Vonada, and this group could develop an estimated amount for contingency. He suggested asking Mr. Vonada from Pioneer Masonry to prepare a written list on their letterhead to be included to support the estimated expenses. Ms. Kuo stated that she would not include Mr. Vonada’s letter with the grant request as she would include the information in the body of her project description, but it would be on hand if someone asked to see where the numbers came from. Historical Furnace Task Force Page 5 October 18, 2007 Ms. Guthrie noted a trick learned over the years was that in applying for grants in the range of $15,000 to $50,000, to have items ranging from $15,000 to $50,000 that a foundation could identify and say it wanted to provide funds for a specific item that costs $15,000, $25,000, $40,000 or $50,000. Ms. Kuo noted there were a couple of items costing less than $50,000, such as scaffolding or gates. Mr. Knippel stated the building permit fee and inspection costs would require an internal transfer from the project’s fund to the Building Department, as they are required to collect those fees. Chair Gordon requested Mr. Knippel to identify those fees and he would contact a special inspections company who would conduct the tests on the grout, and any other product/service requiring a test or inspection. Mr. Knippel noted the contingency fee is at least 15% of the total known project costs that will cover unknown costs and increases in labor and materials. Chair Gordon noted there was no standard percentage as the amount of the contingency is based on the kind of work, the familiarity of the work and the known’s and unknowns. It is standard procedure to include contingency in a construction budget. Ms. Kuo stated she was concerned that someone would question if the figure was just made up. She felt she would be more comfortable getting that figure from Pioneer Masonry. Chair Gordon stated Mr. Vonada provided an informal figure, but that he would be asking for a more formal written estimate, and the Task Force could ask Pioneer Masonry to include a 25% contingency in his quote. Mr. Knippel noted this is like remodeling an old house, you never know that you might find. Chair Gordon stated there would people who will ask how the numbers were arrived at, including the contingency. That is why we would get some documentation that would explain the components, and the estimated costs. Some people might say the figure was pulled out of a hat. Ms. Kuo stated if the figures were provided by someone in the masonry business, it would sound more legitimate than if we just came up with the number. Ms. Guthrie noted the final figures in a formal document were not required as part of the initial letter. Chair Gordon recapped the discussion indicating that Mr. Knippel would put the numbers together and then ask Pioneer Masonry to provide a written estimate on their letter. Mr. Knippel noted Pioneer Masonry would be asked to also include in their written documentation the costs for bonds, insurance, and that type of costs. Chair Gordon stated he would provide the information on the costs for the special inspections. This might be a guess from the laboratory because they might not have much experience providing inspection services on turn of the century iron furnaces. He explained that a special inspections laboratory would take samples of the grout in Historical Furnace Task Force Page 6 October 18, 2007 cylinders, break them open, and provide the results that the grout performs to specific design strength. They might also inspect the tightening rods and provide general observations. Mr. Knippel stated he thought those inspections would costs less than $5,000. Ms. Guthrie noted another trick she has learned about grants is that while they like to see the numbers, they also like to see that homework has been done first. They are also going to give you what they give you. If you go way over budget, they don’t care. However, the project amount needs to make sense. If they decide to give $50,000, it doesn’t matter the total project cost is $800,000, as an example. Chair Gordon stated he thought a budget could easily be arrived it that would not raise questions. Ms. Guthrie stated she has written grants where the Foundation was really interested and would ask you to include answers to specific questions such as why are doing this, did you think of that, what is your contingency if something happens, etc. However, the more project details that are provided initially will help the process along. She thought the whole project was in a much better condition than when she first started writing the grant proposal. 4. MINTUES OF SEPTEMBER 19 MEETING. Chair Gordon noted that several members made corrections. As no one had any further corrections, they were approved as corrected. 5. NEXT STEPS AND MEETING DATE Ms. Campbell-Sack noted she and Ms. Kuo would be meeting with Mayor Hammerstad. Regarding membership, Mr. Knippel stated he would talk with Kim Gilmer, Director of the Parks and Recreation Department, concerning a PRAB member. Next meeting will be on November 1 at 2 p.m. The Meeting was adjourned at 3 p.m. Summary prepared by: Jane McGarvin Administrative Assistant jmcgarvin@ci.oswego.or.us (503) 635-0236 Historical Furnace Task Force Page 7 October 18, 2007