Meeting called to order by President Rich Thompson.

Board Members present: Jim Lee, Mark Peterson, Brad Colberg, Rich Thompson; Walt Kero.

Others: Chuk Denowh, Consul; Tim Ondrak, Assistant Magister; John Bennett, Chapter Advisor.

Chapter Grade Report - Chuk Denowh

According to UM’s report, the chapter’s Fall 2001 grades averaged 2.27 compared with the All Men's Average of 2.68 and the All Fraternity Average of 2.58. Besides the concern for Sigma Chi’s low academic standing and specific brothers whose grades fell way short of the chapter’s own standard of 2.75, the low GPA hampers the chapter from moving in badly needed Freshman Actives Spring 2002. Chuk indicated that there are legitimate additions and corrections to UM’s report that will increase Beta Delta’s average GPA to 2.74 or more which hopefully overcome the move in restriction.

The nine men who earned less than a 2.00 will be put on social probation, asked to attend study tables, and have periodic checks on their academic progress performed during Spring 2002 semester.

Chuk feels the big issue concerning academics is the quality of men the chapter is recruiting. This must be addressed in future pledging efforts.

Live In Report - Chuk reported that are 15 actives living in the House and 10 Actives living out. While some fraternities are struggling (like SAE and Phi Delts) Figis, Sigma Nu and SPEs all have much higher numbers than Sigma Chi. This indicates changes can be made that will correct Sigma Chi’s low numbers. 25 Live-Ins and 35 total Actives should be the minimum goal for the coming year.

Pledge Report Six pledges are going through Initiation Week and will activate on February 2. Three pledges will hold over, and there are six men reportedly interested in pledging. There are plans to hold recruiting activities during Spring semester, a dinner or other events, to formalize

Collection Report There is $7,000 in outstanding House Bills held over from Fall Semester. For the past several years, a bookkeeping service has been hired by House Corp to assist the Quaestor in various accounting and collection activities. Initially, it worked fairly well but was largely dependent on the Quaestor providing timely and accurate information to the bookkeeper. The system did not work well during the past year. It was agreed that the bookkeeping service should end and that Rich and Brad will work directly with the Quaestor on collection issues. The Quaestor will present an updated Delinquency Report along with historical notes to Rich and Brad by the 10^th of each month and the collection terms dictated in the Live In Agreement will be adhered to.

Collection Alternatives. Historically, collections by the Quaestor have been less than satisfactory due mostly to the brother to brother relationship. UM offers a collection service that might alleviate this traditional problem. UM has the ability to withhold grades and transcripts if House Bills are not paid. (At least they do for the dorms and food service operation.) Rich will explore the possibility of getting UM to do the same for Beta Delta. It will probably require that the Live In Agreement be modified to grant that specific authority to UM. If it is possible, that alternative will be implemented Fall 2002.

Unfortunately, even if this alternative comes to pass, the UM system will only work on brothers who intend to graduate or continue their studies. So, aggressive collection on some delinquencies will continue regardless. The real issue is stemming the delinquency early. The goal of Active Chapter and House Corp working together is to convey this message effectively and consistently. To that end, the Quaestor will need to strictly adhere to payment deadlines, late fees, interest and, when necessary, more radical actions like eviction and suspension and expulsion from the fraternity. The parents/guardians must also be kept informed about the delinquencies, deadlines and penalties.

This also points to the absolute need to discuss Live-In Agreement responsibilities, both financial and otherwise, with the each pledge. This is best done immediately during and after formal rush or whenever a man pledges so that none is taken by surprise. The discussion of responsibilities can also include the scholarship opportunities that are available to live-in brothers. In other words, with responsibility comes rewards.

Rich Thompson emphasized the need for the Active Chapter to have house bills prepared at least 30 days prior to the beginning of the semester. Invoices should be prepared and given to both the actives and parents/guardians with the expectation that money is to be paid either in full at the beginning of the semester or the monthly plan.

Kitchen Report. Due to low live-in numbers, the kitchen operation cannot afford a full-time cook. To adjust to cash flow realities, breakfast and lunch have gone to a "food made available and fix your own" plan and active Louie Marucheau has agreed to prepare evening meals in exchange for a House Bill credit. Louie spent a year working in the kitchen of a local restaurant so has the skills to provide a reasonable service. Reports from the brothers are positive.

Pledging. The actives recognize that formal fall rush will not provide the number and quality of members that Sigma Chi needs to thrive. It was agreed that Active Chapter would host at least one pledging activity each semester (dinner or other event) to attract new pledges. The goal will be for each active to bring one prospect to each event. Also, it was agreed that the Alumni will host summer rush parties in Billings, Missoula, Great Falls, Helena for incoming Montana freshmen. Those events should be scheduled so Actives can participate. Rich will work with Active Chapter to produce a Spring Grizzly Sig newsletter which will include a request for names of incoming freshmen. The UM Greek Life office can facilitate an incoming freshmen mailing list as well.

Chuk suggested that consideration be given to a Pledging Scholarship. If such was circulated to Montana high schools soon, it could also attract a good number of summer rushees. The Scholarship Committee (Dan Cederberg, Walt Kero, Bob Rowe and Brad Colberg) will review the options.

ROOF PROJECT UPDATE - Rich Thompson

The work that has been done looks good but is as yet not finished because wrong style tile was delivered. Replacement tile is to be ordered for the ridges. The roofer is ready to finish project as soon as tile received, estimated at May 2002. Copper chimney caps will be installed to protect the chimneys. Copper gutters will be installed, where necessary, on the eaves of the house. Rich will work with the roofer on where, the gutters will be installed. The fire escape must be rebuilt for safety and to better restrict access to the roof. The estimated cost to finish the roof, fire escape, gutters and related is $36,000 which we have in the bank.

- 77% ($268,159) of the $350,000 goal has been pledged to date. We are 2/3 of the way through the three year fundraiser and ahead of schedule.

- 58% ($203,492) has been paid to date

- As the renovation is executed a reserve study will be developed to project major project and fund needs over the coming 30 years.

- Rich asked for a goal of completing all renovation work in time for Beta Delta’s 100th in 2006. Subject to reaching the Fundraiser Goal, this should not be a problem.

It was agreed that actives and alums would meet during the school year on the 3rd Friday of each month to discuss active chapter business. The meeting will take place at the House.

The Board approved a prioritized list of projects at an estimated $47,000.

1. Replace windows in all bedrooms, basement and selected Main Deck locations to enhance security and energy efficiency.
2. Repaint all the common areas
3. Renovate bedrooms (wall and trim repair, paint and carpet).
4. Repair backyard wall
5. Install firewall on garage side of Slant Shack and Back Shack; repair Slant Shack stairs.

1. Repairing the stainglass
2. Repair Library floor
3. Replace Breakfast Nook stairwell door
4. Add protective material (to be determined) to the new Sundeck membrane
5. Install window treatments to Library, Reception, Living/Pledge Room and Dining Room
6. Install new Kitchen Floor

Alums are needed to oversee the projects. Mark volunteered to oversee the Brick Wall repair. Rich will coordinate the window replacement, bedroom renovation and firewall installation.

Based on Walt’s recommendation, a $1 million scholarship endowment was approved at Homecoming 2001. In December, we received Beta Delta scholarship funds from Sigma Chi Foundation totaling $144,065. Combined with funds already on account, the current balance is $149,065 plus interest to date. Rich proposed investing part of the money by purchasing two mortgage notes which we are currently paying $1744/month on:

1. Sigma Chi Foundation note (estimated balance of $65,000 at 8%)

2. First Citizens Bank note (est. $54,000 at 5.25%)

Instead of making payments to others, payments will be made to the scholarship endowment and the interest will be available for scholarships. The balance of cash would be managed by UM Foundation along with University funds. Using UM Foundation is also a way to improve relations with the University.

Rich moved, and Jim Lee seconded, that the First Citizens Bank loan be paid off with money from the scholarship fund. It passed, three votes to two.

Walt Kero moved, and Mark Peterson seconded, that the Sigma Chi Foundation loan be paid off with money from the scholarship fund, unless the interest being paid on the note is accruing to Beta Delta's scholarship fund at Sigma Chi Foundation. This passed, five votes to zero. [NOTE: Subsequently to this meeting, Rich verified with Sigma Chi Foundation that the mortgage note actually belonged to Beta Delta so paying it off was unnecessary. Rich requested that the Sigma Chi Foundation formally transfer the note to Sigma Chi Building Foundation. Effectively, that increased the Beta Delta Scholarship Endowment’s cash by $65,000. The board will need to review and approve a revised proposal to place cash and note assets. This will take place via email.]

Rich moved, and Brad Colberg seconded, that the balance of the funds be invested with UM Foundation for their management. It passed five votes to zero.

Meeting adjourned.