BOARD OF TRUSTEES
February 27, 2009
The annual meeting of the Peninsula Endowment Board of Trustees was held in the offices of Brown Adams, 2600 El Camino, Palo Alto on February 27, 2009. The meeting was called to order by President Westman at 11 am.
Present: Mmes. Bitting, Dunham, Nessier, Tedrow and Westman; Messrs.Fowler
Hamel and Waud
Minutes of the meeting held November 21, 2008 were approved.
Officers and Trustees were elected to serve a one year term 2009-2010.
- President – Ray Westman
- Vice-President – Anne Dunham
- Treasurer – Steve Hamel
- Secretary – Virginia Tedrow
Members at Large: JoAnn Bitting, Greg Fowler, Cathy Nessier, Ben Waud, Mary
Anne Rodgers, RFB&D NorCal Chair
Treasurer Hamel reported that the annual Endowment disbursement, amounting to $30,044.00 will be made to the Northern California Unit of RFB&D.
The total value of the Endowment portfolio was $854,077 as of 2/24/09. The Endowments assets have declined about 15% since the start of our fiscal year, an annualized rate of about 22%. In the same period the Dow Jones Industrial Average has declined at about a 50% annual rate. Legacy’s investment management continues to be satisfactory.
He reported our real estate sales contract for 488 West Charleston is expected to close by the end of March. We will receive $2,850,000 which will be deposited directly into our Schwab account for immediate investment. The buyer says that in the interim they are willing to lease back the studio at $15 a day till demolition begins, probably by September. This will allow studio work to continue uninterrupted till the move to a new location is finalized.
Hamel distributed and reviewed a draft copy of a five year plan for the Endowment outlining how to make and spend money in future to ensure its financial stability. The sale of the Charleston property plus the current fund balance should total $3.6 million and produce a yearly income of $200,000. The 5% distribution amount will rise accordingly. Current market conditions have produced an oversupply of rental choices but there are important location considerations for volunteers and staff. Mrs. Nessier reported a recent visit by John Churchill, RFB&D Senior VP, Operations whose duties include planning/overseeing Unit facilities. With two members of the NorCal board he toured potential studio sites on the Peninsula.
A Relocation Budget Estimate was distributed by Hamel. Mrs. Nessier noted that new booths will be needed as the old ones would not survive the move to a new location; however, the $67,000 expense would provide fund-raising possibilities. Donors could be offered the opportunity to have their names on these new booths. Trustee Dunham offered to join the development people on their visits to donors; this would show a collaborative effort. The board approved the idea with warm thanks. Further discussion of the Estimate was deferred to a future date. While the Unit is still without an ED, a new office manager has been hired. Donations are up over last fall and volunteer ranks have increased 10% to 175. Craig’s list has proven a good recruiting tool.
Mr. Fowler observed that the audio access service which became available last August has been welcomed by borrowers as it makes information retrieval much quicker. It is possible to download a portion of or entire books from that current library of 50,000 titles as opposed to the usual 3-5 days.
Legacy Capital has requested PE Trustee email addresses so they can notify us of the availability of customized reports. Trustees authorized the secretary to supply the addresses to Legacy.
Joe Milam, Legacy president, provided by phone a review of market conditions and the Endowment’s performance. He speculates the market will bottom around 6000. Increased investment in bonds, “the capital preservation tool”, seems indicated. That may require re-examining the current Endowment allocation plan. When the equity market improves it could return to 10-12% of the portfolio holdings.
Meeting adjourned at 12:15 pm.