The meeting was called to order by President Michele Martin. Also attending were Cynthia Daube, Ed Haskell, John Hunziker, Frank Iossi, Bill Jonason, Bill Kullback, Ann Larson, Jean Michaels, Joanne Swenson, Cecelia Szurszewski, and Dennis Wong.
Absent: Nancy Domaille, Ann Farnell, Phil Henoch, Leigh Johnson, Veena Nayar, and Dave Nelson.
Staff present: Audrey Betcher, Library Director; Kathy Olson, Administrative Assistant.
Others present: Steve Thornton, Rochester Area Foundation.
Cecelia Szurszewski reviewed the Treasurer's report for the third quarter.
Audrey stated that the Library Board has reviewed the organizational study report prepared by Himmel and Wilson. The Board is moving forward with several subcommittees to study how to implement the recommendations in the report. Ed Haskell added that the consultants did find areas for improvement but also indicated that RPL is very well run.
Michele introduced Steve Thornton from Rochester Area Foundation. Steve gave a brief history of the foundation and the advantages of placing funds with the foundation, such as long-term growth, increased visibility, improved fundraising efforts, increased diversification, and planned giving. All agency funds are included in mailings to donors. Agency funds range in size from $5,000 to $1.3 million.
Current asset allocation is 65% equities and 35% fixed. They use three firms to manage specific funds: Wells Fargo Investment, First Asset Management, and Resource Trust and Asset Management. Since it is important to RAF to maintain principal value, they take a fairly conservative approach on investments; their bond portfolio is A rated or better. Over the last five years, their rate of return has been 16.52%.
Technically any money invested by the Rochester Area Foundation becomes the property of RAF because of IRS and Treasury regulations. All funds of the foundation are assessed a prorated share of investment expense and a fee to RAF to offset expenses in terms of PR/communication, etc.; total fee is 1.25% per year.
Any agency funds would help RAF fully earn the challenge grant; they have until 2002 to fully earn the grant. Challenge grant funds do not go to any agency fund but directly to RAF.
It is up to each individual agency how they want to direct return on investments. However, if an agency wants to dip into principal amount, or have the entire principal amount returned, it is up to RAF Board to approve such a request.
The Investment Committee (Bill Jonason, Bill Kullback, Michele Martin) will investigate investment options and report back at a future meeting
A preliminary presentation to the Mayo Foundation is scheduled for December 11; Mayo representatives attending will be Carol Weigel, Ken Schneider and Dick Edwards. The final presentation will be sent to Board members.
Michele attended the last Friends Board meeting to address concerns they had regarding the Foundation. The meeting focused on communication between the Friends, Foundation Board, and Library Board.
There being no further business, the meeting adjourned.
Respectfully submitted,
Jean Michaels,
Secretary