BOARD OF TRUSTEES
June 3, 2009
A regular meeting of the Board of Trustees of Peninsula Endowment was held in the offices of Brown Adams, 2600 El Camino, Palo Alto on June 3, 2009. The meeting was called to order by President Westman at 11 am.
Present: Mmes.Dunham, Nessier, Tedrow, Westman; Messrs.Fowler, Hamel, Waud
Minutes of the meeting held February 27, 2009 were approved.
Mrs. Westman welcomed the group, noting the need for mutual understanding by the Endowment and NCU boards of the plan for the future discussed today.
Treasurer Hamel reported sale of the Charleston Road property to PAHC closed on 3-25-09, with a net of $2,812,421. As of 6-2-9 the Endowment’s assets now total $3,675,799 with 93% in cash. With current levels of market volatility and predicted turmoil, little investment activity is forecast in the foreseeable future. Supplemental reports were circulated for inspection and discussion.
In a conversation with Andrew Friedman, RFB&D Princeton CFO and director for the NCU’s relocation, Hamel learned that relocation is currently projected for 10-1-09 with expenses of $125 k. Friedman anticipates an annual Unit rent of $90-100 k for 2600 sq ft of studio and administrative space that would accommodate up to 10 booths and additional local /regional staff in Palo Alto.
A revised copy of the Peninsula Endowment Five Year Plan was presented by Hamel outlining how we will make and spend money in the future. To be determined today are the amount of money to disburse to NCU, when to transfer the funds, and identify where the checks should be sent. With 2010 projected income of $87 k and expenses of $184 k (he emphasized the speculative nature of the numbers) discussion focused on how much could be given to the Unit without jeopardizing the Endowment’s asset base.
It was moved, seconded and carried Peninsula Endowment shall send $36,000 quarterly to RFB&D, Northern California Unit in fiscal 2010.
Mrs. Nessier reported that after many potential areas had been visited by the Future Site Committee, a business park location in Palo Alto appears to serve the Unit’s needs best. The Northern California Unit will continue to have production staff at the new location and plans to add Development personnel. Headquarters has announced the appointment of Cindy Jackson to be Western Regional Executive Director beginning June 15. She will work from her home base in Sacramento and oversee the three California units which are called Northern California, Central California and Southern California. It is anticipated that there will be seven regions throughout the nation which will make up the RFB&D geographical areas; presently there are regional models working successfully in the East and Mid-West. Mrs. Nessier noted that borrowers are finding their ability to download books directly from the RFB&D library a most valuable improvement.
Jim McCarthy of Legacy Capital Management reported by phone that Legacy continues cautious, judging the current “ rally inside a bear market” brings risk not worth the return. They look for stability by mid-2010 when patience will be rewarded. They believe energy, industrials and healthcare are best positioned to benefit from a market rebound.
Meeting adjourned at 12:15.
Virginia V. Tedrow