Custer Country tourism group tries to pick up the pieces after contract canceled

 Leaders for southeast Montana?s Custer Country tourism group spent hours Thursday discussing how to pitch a new, improved nonprofit organization to the same state officials who this week canceled a $400,000 contract with the entity.

Meanwhile, John Brewer, president of the Billings Chamber of Commerce and Convention and Visitors Bureau, said Billings tourism promoters are staying out of the situation for now ? although they have pledged to help the state promote tourism in the region.

Custer Country was one of six regional tourism-promotion nonprofit corporations contracted and overseen by the state to market the state to would-be tourists. Each group receives a share of the lodging-tax dollars raised within its boundaries.

Following an eight-month investigation, a state investigator this week concluded that Custer Country?s executive director, Jim Schaefer of Forsyth, had broken the law and conducted a ?sham? bidding process concerning public funds.

Specifically, Schaefer allowed Gloria Wester, a member of the group?s marketing committee and owner of a Laurel publishing company, to help write the request for proposals for printing Custer Country?s vacation guide, the state said.

Wester?s company, Outlook Publishing Inc., had been receiving the vacation guide printing contract in no-bid deals. Last year, a state auditor told Custer Country to open the work to a competitive bid.

Schaefer allowed Wester to participate in the writing of the new request and then later concealed this fact from both Custer Country board members and state investigators, the state said. Wester?s company then got the contract, worth almost $30,000.

The state investigation wrapped up Wednesday and Department of Commerce officials announced they were canceling their contract with Custer Country, and would no longer be dispersing tax dollars to the group. The agency will also be taking over Custer Country?s marketing duties until a replacement nonprofit organization can be found through a competitive bid process.

A special committee of Custer Country board members held an hourslong conference call Thursday to talk about the results of the state investigation.

The group, which included board president Renee Christiansen and vice president Tammy Brewer, cannot make decisions for Custer Country. It can make recommendations to the full board. Among the things they discussed was placing Schaefer on unpaid leave and potentially seeking his resignation or firing him. He has been on paid leave since April.

The Gazette State Bureau incorrectly reported Schaefer has been not been paid since he agreed to step down last month. One committee member asked if Schaefer was still an employee of the group, as it no longer has the money to pay him.

?There are no dollars to pay him,? Christiansen said. ?There?s nothing.?

Another committee member said she has already asked Schaefer to leave.

The group also will ask Wester to resign her seat from the board.

Schaefer could not be reached for comment Thursday.