Oil & Gas Investment Board

OIL AND GAS INVESTMENT BOARD MINUTES OF JANUARY 16, 2015 The City of Manistee Oil and Gas Investment Board held a regular meeting on Friday, January 16, 2015 in the Second Floor Conference Room, City Hall, 70 Maple Street, Manistee, Michigan 49660. Meeting was called to order by Chair Colleen Kenny at 12:00 p.m. MEMBERS PRESENT: Colleen Kenny, Eric Gustad, Doug Parkes, Steve Brower, Mitch Deisch MEMBERS ABSENT: Ed Bradford OTHERS PRESENT: City Attorney George Saylor, Councilman Jim Smith MOTION by Doug Parkes, second by Steve Brower, to amend the agenda to add III. New Business f.) Annual Spending Rule Calculation. All in favor – motion carried. OLD BUSINESS None. NEW BUSINESS Minutes - Minutes from the October 10, 2014 meeting were reviewed. MOTION by Doug Parkes, second by Steve Brower to accept the minutes and place them on file. All in favor - motion carried. Investment Advisor Update and Commentary – Woody Uible and Troy Snider presented the Investment Update as of December 31, 2014 via conference call. Information in the report included Market Outlook, Trend Changes in Markets, Bull Market in Context, Fed Watch, International Fixed Income, Asset Allocation, Fixed Income Characteristics, Equity Sector Allocation, and Portfolio Performance. Discussion on oil prices, length of bull market, foreign markets, and rates. Questions and comments by board members were responded to. Memorandums of Understanding on Internal Loans – As requested by the Oil and Gas Investment Board the City Attorney and Finance Director prepared two Memorandums of Understanding to document the internal loans to the Municipal Marina and the Arthur Street Boat Launch. MOTION by Doug Parkes, second by Steve Brower to approve Memorandums of Understanding to document the Oil and Gas Board internal loans to the Municipal Marina and OIL AND GAS BOARD MINUTES – JANUARY 16, 2015 PAGE 1 the Arthur Street Boat Launch; and authorize the Mayor as Chair of the Oil and Gas Investment Board and the City Clerk to execute the documents. All in favor – Motion carried. Annual Review of Bylaws – Consensus that bylaws require no changes. Annual Review of Member Roster – No changes. Annual Spending Rule Calculation – City Manager updated the Board on current recommendations by the Ad Hoc Street Committee to the City Council to increase the spending rule from 4% to 4.5% for up to five years with approval by Council required every year. Mayor Kenny appreciated the Oil and Gas Investment Board’s focus on the intent of this fund and noted that pressures to access this fund will increase. Doug Parkes strongly advised that any funds in the budget set aside for streets be maintained. Secretary provided a comment from the Finance Director that the spending rule calculation increased from last year by $16,137. MOTION by Doug Parkes, second by Steve Brower to approve the annual spending rule calculation as of December 31, 2014 for the fiscal year budget 2015-2016; using the 4% spending rule in the amount of $374,680. All in favor – motion carried. PUBLIC COMMENTS None. ADJOURNMENT / NEXT MEETING Next regular meeting is scheduled for Friday, April 17, 2015 at 12 p.m. in the Second Floor Conference Room, City Hall. Following miscellaneous discussion, MOTION to adjourn by Doug Parkes, second by Steve Brower at 12:45 p.m. Cynthia Lokovich, CAP-OM Recording Secretary c. Manistee City Council Board Members Mitch Deisch, City Manager George Saylor, City Attorney OIL AND GAS BOARD MINUTES – JANUARY 16, 2015 PAGE 2