BOARD OF TRUSTEES
August 30, 2010
The annual meeting of the Peninsula Endowment Board of Trustees was held in the Community room of the Northern California Unit RFB&D, 2445 Faber Place, Palo Alto on August 30, 2010. The meeting was called to order by President Westman at 11 am.
Present: Mmes.Bitting, Dunham and Westman; Messrs. Fowler, Hamel, Kohler and Waud.
Mrs. Westman announced that Mrs. Tedrow would be unable to attend due to a medical emergency. Hopes for a speedy recovery were voiced by all.
Treasurer’s Report: Treasurer Hamel referred the Board to the 5-year Plan, the check register, and the PE financial statements (as of the fiscal year ending May 31, 2010. Key points covered in his report included the following:
• The May 31, 2010, the value of the portfolio was approximately $3,522,000, which represents a 4% decline from the value as of the same date, 2009.
• The current value of the portfolio is approximately $3,456,000.
• We are currently positioned at 98% cash, which Hamel expects to be a fairly short-term position.
• The annual performance of the portfolio is -4%, versus +19% for the general market.
• Hamel cautioned that the portfolio could see futher declines, at least for a while, as he is forecasting a 5% outflow coupled with a 3% return.
• Tax returns for the Endowment should be completed by mid-September.
At this point, Minutes of the meeting held February 10, 2010, were approved.
Investment Sub-Committee Report: Mrs. Bitting delivered an update of the sub-committee’s work. She indicated that discussion of the Endowment’s long-term strategy would be postponed until a future meeting, but that the sub-committee (“Group”) thought it prudent to talk about the short-term investment strategy at this and upcoming meetings.
She said the Group had begun looking into alternatives to Legacy Management, with the thought that perhaps the same services could be performed by others at a lower cost. All members of the Group indicated that Legacy has performed well in the past, but that given our increased investment portfolio and the new support requirements for RFB&D/NCU it seemed an ideal time to look at all of our options going forward.
The first item of business was to establish the official terms of the support to be given by the Endowment to the local RFB&D studio. A motion was made and passed that the Peninsula Endowment will provide monetary support to the Unit of at least $12,000/month through the end of the current lease in 2014, to be paid quarterly.
Bitting then urged that at, or preferably before 2014, that the Board hold a discussion on the long-term mission of the Peninsula Endowment.
A proposal was then made by the Group that while the ongoing evaluation of investment management alternatives was taking place that our funds be withdrawn from Legacy and continue to be held by Schwab, without active management by Legacy or any other firm. Hamel disagreed, and a lengthy discussion ensued.
It was finally moved and carried that the Investment Sub-Committee would continue to gather information on alternatives and make a formal recommendation to the Board.
Northern California Unit Report: Mr. Kohler reported that the Unit has seen a busy six months. Among the highlights of the activities he reported:
• The Record-a-Thon was very successful, and included a reading by Steve Young along with a blinded veteran. Over $15,000 was raised at the event, and new volunteers are now being waitlisted (current total is 250).
• The volunteer recognition party, the first in three years, also took place.
• Learning-Through-Listening tours took place, which allowed the Unit to establish ties with other blindness-related organizations.
• The Unit was highlighted in several local print articles.
• Upcoming activities include Dream Builders brunch in Los Altos.
• Strategic Planning sessions will be taking place over the next few months, with an aim to enhancing services and advertising their services.
• The Organization website is to be updated to enhance user-friendliness.
Legacy Management called in and provided a summary of their activities on our behalf.
Meeting adjourned at 1:05 pm.
Submitted by: JoAnn Bitting (filling in for Mrs. Tedrow)