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October 21, 2004 Page 2 7. DEFERRED MATTERS None 8. NEW ITEMS A. Approval To Implement Frazee "Rewards Program" And Report Results Of Program At End Of First Year Friedl provided background information, and briefly explained how the Rewards Program functions, noting that the proposed program works very much like the "Scrip" programs used by many Parent Teacher Associations (PTAs) as a way to raise additional funds. Friedl introduced Dave Anderson, of Frazee Paint and Wall Covering, who said that Frazee would donate five percent of the cost of consumer paint purchases to the District, if purchases exceed $100,000 in the first year, an additional five percent would be donated, the District would have no expenses associated with the non-exclusive program, the District would not advertise or endorse Frazee, staff would have an opportunity to review all program materials before they are distributed, Frazee would benefit by letting consumers know they support the District, and the District would benefit financially through Frazee's donation. Friedl said that, if approved, this would be the first time the District has engaged in such a program. Gibson said he had concerns and reservations about the program, and suggested more thought was needed. Jacobsen said that the Board had previously declined such endeavors, but if properly implemented, he would have less reservations now. Berger said he is very familiar with such programs, he has no reservations, and people are familiar with such programs and do not view them as endorsements. Holt concurred with Berger, and said, however, that the specifics of implementation must be considered. It was agreed that distribution issues need to be identified and discussed, more substantive information provided, and an implementation plan clarified.