2015 Congregational Mid-Year Meeting Welcome!

Agenda Call to OrderChair Steve Figgins Opening PrayerPastor Mark Krieger Approval of AgendaChair Steve Figgins Approval of Annual Meeting Minutes - December 8, 2014 New Members VotePastor Mark Krieger Financial UpdateTreasurer Brenda Kiely Facilities Master Plan UpdateElder Doug Smith Closing Prayer, AdjournmentChair Steve Figgins

New Members George Jaasma Marge Jaasma Nadine Mathews Joe Muratore Sandra Muratore Mary Navarrete Robert Santiago Rosa Santiago Jordan Seaman Carol Swope Jess Swope

2015 Mid-Year Financial Summary MCC General Fund Giving Trends and 2015 Position YTD

Momentum Project Update Mid-Year Congregational Meeting June 7, 2015

Momentum Project Update Master Plan Committee:  Rita Hearne  Scott Worthington  Darrell Champion  Gary Blom  Van Switzer  Pastor Mark Krieger  Doug Smith  Ed Martin  Steve Figgins  Tom Cosentino  Kris Helton

Momentum Project Update Master Plan Background / Timeline:  2010 – Master Plan Development Committee Findings  Need more teaching space – classrooms & sanctuary  Need more functional gathering spaces  Need better lighting, stage, & backstage storage  Need to preserve the grassy quad area  Desire for a prayer room / bride room  Hire a professional firm to create the Master Plan Design

Momentum Project Update Master Plan Background / Timeline:  Spring 2012 – Building God’s Way creates Master Plan  Fall 2012 – Master Plan discussions in Connections  Dec 2012 – Congregational vote to move forward  Dec 2012 – Master Plan Committee Formed  Incorporate Feedback into the Master Plan  Assemble Preliminary Cost Estimates  Investigate Financing & Fundraising Options  Develop an Implementation Strategy  Dec 2013 – Congregation votes 89% to proceed with the full 2- Phased Master Plan as designed

Momentum Project Update Master Plan Background / Timeline:  Aug 2014 – City of Modesto Board of Zoning grants approval for our Master Plan concept  Nov 2014 – Momentum Banquet held at Big Valley Church with 3 year pledges totaling $1.4MM  Feb 2015 – Phase 1A plan created to aligned with our Momentum pledges and our ability to finance  Feb 2015 – Campus Walk conducted with a group of MCC folks to create a list of R&M items for the campus  May 2015 – Engage local design-build contractors to determine our partner for the Phase 1A project

Building D (Remodel BR’s, Paint, Carpet, Mold, Etc.) Building C (Remodel BR’s, HVAC, Repairs, Etc) Phase 2 2-Story Youth Bldg Phase 2 Building D Rotate & Remodel Sanctuary 2- Story Classroom Building Phase 1A Phase 2No Change Front Parking Lot Upgrades 3 rd Space Phase 1B

Momentum Project Update  Frequently Asked Questions  Why include the Sanctuary and 3 rd Space in Phase 1A rather than buildings B or C?  How much will the Phase 1A project cost?  How will we pay for it?  Will our remodeled Sanctuary retain a true “Sanctuary” feel?  What about the repair needs of our other buildings?  When could we see construction getting started?  Where will we hold services during the Sanctuary remodel?  Will the new 3 rd space women’s bathroom really be bigger than the men’s bathroom?  YES !! (35% bigger – 8 vs 6)

Momentum Project Update Financial Update – Scott Worthington

Momentum Project Update National Covenant Properties:  Consult, guide and finance church building projects.  Master Plan Committee has on-going discussions with Rollie Persson, Vice President, RE Services - National Covenant Properties.  NCP has evaluation models that look at attendance trends, giving trends, mission’s giving and trended financial statements.  MCC has restructured financial accounting and reporting to comply with GAAP for Non-Profits.

Momentum Project Update National Covenant Properties:  “Rule of Thumb” guidance from NCP.  Like to see pledges of 1.5x annual budget.  For MCC this equals $1.3MM x 1.5 = $1.95MM; our pledges totaled $1.4MM  Like to see 20% of project cost in the bank as cash.  Multi Phase projects should start with the biggest impact on attendance which will aid in reaching the most people for Christ  Building God’s Way Dan Cook’s presentation on church construction and attendance trends: Millenial’s impact

Momentum Project Update Phase 1A Preliminary Cost Estimate and Giving-to-Date:  $2.5MM Cost Estimate  20% of $2.5MM = $.500MM NCP Rule of Thumb  Momentum Master Plan giving as of 5/27/15 = $.526MM NCP considers us in “good shape” and has initiated the loan application process.  Based on our pledges, attendance and giving patterns NCP said we could afford a project of $2.5 - $3.0MM. We are targeting the lower end of that range.  4.5% Adjustable, no index, NCP Board decision, adjustment history under review  Master Plan Committee is also evaluating local lending options. We will secure the lowest rates possible and work to pay off the loan as fast as possible.

Momentum Project Update Future loan payments will be part of MCC Annual General Fund Budget  Size of which will depend on total down payment and borrowed amount.  Faithful and continued giving will enable the largest down payment possible.  Also, once construction begins we will need to add the debt service to our annual budget.  Giving will need to come in two forms.  Complete the $1.4MM pledge totals.  Increase on-going giving to service the loan.

Momentum Project Update Master Plan Development Update – Van Switzer

Momentum Project Update Master Plan Development Sub-Committee:  Darrell Champion  Tom Cosentino  Kris Helton  Doug Smith  Van Switzer

Momentum Project Update Project Delivery Method – Design/Build  Request for Statement of Qualifications  Pre-Proposal Conf./Job Walk: May 29, 2015  Responses Due: June 12, 2015  Interviews: June 18, 22,23, 2015  Selection/Contract: July 21, 2015

Momentum Project Update Contractors Invited to Submit Proposals  Huff Construction Company, Modesto  Simile Construction Company, Modesto  Dellabarca Design and Build, Manteca **  Woodland Construction Company, Salida What About Building God’s Way (BGW)?

Momentum Project Update Contract Approach – 3 Phases  Preliminary Design  Approved Design Plan – Final Design Docs.  Cost Plus Fixed Fee/Guaranteed Maximum Price  Construction Time Table  Start Preliminary Design – Aug/Sept  Start Construction – Mid 2016?

Momentum Project Update Project Budget: $2.5 Million $2,000,000 – Phase 1A Construction :  Construction, Contingency, Design-Build Fees, General Conditions $375,000 – Other Project Costs:  Special Inspections, Materials Testing, Furnishings, Sound/Media/Acoustics/Lighting, Building Permit/Plan Check Fees, Utility Connection Fees, Owner Contingency for Unforeseen Items $125,000 – Upgrades to Existing Facilities

Momentum Project Update  Comments from Pastor Mark

Thank You!! Questions?