Oil & Gas Investment Board

CITY OF MANISTEE OIL AND GAS INVESTMENT BOARD MEETING OF JANUARY 15, 2021 There will be a virtual meeting of the Oil and Gas Investment Board held on Friday, January 15, 2021 at noon. Join Zoom Meeting: https://us02web.zoom.us/j/81506602288?pwd=NlNUekZuSTJyVWpsVzhadXkyRHdPdz09 To Attend the Meeting by Phone: +1 646 558 8656 US (New York) Meeting ID: 815 0660 2288 Passcode: 671762 AGENDA I. ROLL CALL. II. OLD BUSINESS. a.) Aztec Producing / 2020 Royalties: See attached activity report III. NEW BUSINESS. a.) Approval of Minutes from October 16, 2020 b.) Investment Advisor Update and Commentary c.) Annual Spending Rule Calculation d.) Annual Review of Bylaws e.) Annual Review of Member Roster f.) Other IV. PUBLIC COMMENT. VI. ADJOURN.  OIL AND GAS INVESTMENT BOARD MINUTES OF OCTOBER 16, 2020 The City of Manistee Oil and Gas Investment Board held a regular meeting on Friday, October 16, 2020 in the Council Chambers, City Hall, 70 Maple Street, Manistee, Michigan 49660. Meeting was called to order by the Chair at 12:02 p.m. MEMBERS PRESENT: Roger Zielinski, Ed Bradford, Doug Parkes, Erin Martin Pontiac, Jeff Reau MEMBERS ABSENT: Thad Taylor, George Saylor OTHERS PRESENT: OLD BUSINESS Aztec Well Update – Royalties for January: $3,777.10; February $3,513.18; March: $3,808.73; April: $2,246.77; May: $0; June: $869.64; July: $566.96; August: $3069.75; September: $4207.07. NEW BUSINESS Minutes - Minutes from the July 17, 2020 meeting were reviewed. MOTION by Doug Parks, second by Jeff Reau to accept the minutes as presented. No discussion. With roll call this motion passed 5 to 0. Yes: Roger Zielinski, Ed Bradford, Doug Parks, Erin Martin-Pontiac, Jeff Reau No: None Investment Advisor Update and Commentary – Woody Uible and Troy Snider participated via conference call to present the Investment Update as of September 30, 2020. Discussion items: ➢ Market Assessment – huge government activity, Federal Reserve suppressing interest rates, lots of uncertainty. Includes positive trends but significant areas of caution due to virus. ➢ U.S. Leading Economic Index continues to be very volatile – recession territory. ➢ Discussed historic low interest rates. ➢ Valuations are above average. ➢ S&P 500 Index appears concentrated. ➢ Stock performance reflects huge disparity between top 5 stocks (tech companies) vs bottom 495. ➢ No correlation is shown between political party in power and performance of stock market. ➢ Asset Allocation – in line with target. ➢ Discussed characteristics of overall bond portfolio. OIL AND GAS BOARD MINUTES – OCTOBER 16, 2020 PAGE 1 ➢ Equity Sector Allocation – diversified, a bit overweight in healthcare. ➢ Portfolio Performance – bond returns have been exceptional in last year because of low interest rates but future fixed income returns will likely be much lower. ➢ 45% of bonds to mature within two years – will be redeploying funds into portfolio – will not overload short-term investments but seeking balance. ➢ Discussed reevaluating the Annual Spending Rule Calculation at the next meeting. Discussed bringing it down from 4% to 3-3.5% - possibly reducing in phases. Set Meeting Dates for 2021– MOTION by Doug Parks, second by Erin Martin-Pontiac to set the meeting dates for 2021 as Friday, January 15, Friday, April 16, Friday, July 16, and Friday, October 15, 2021 at 12:00 p.m. in the Council Chambers, City Hall. Voice vote – motion carried. PUBLIC COMMENTS None. NEXT MEETING / ADJOURNMENT Next regular meeting is scheduled for Friday, January 15, 2021 at 12:00 p.m. in the Council Chambers, City Hall. Call of the Chair to adjourn at 12:50 p.m. Kelly McColl Executive Secretary / Recording Secretary c. Manistee City Council Board Members Thad N. Taylor, City Manager George Saylor, City Attorney OIL AND GAS BOARD MINUTES – OCTOBER 16, 2020 PAGE 2  Oil and Gas Investment Board Spending Rule Calculation as of December 31, 2020 for fiscal year budget 2020-2021 Period Ending Total Schwab City Loan Quarter # 3/31/2018 $ 10,332,851 $ 9,999,261 $ 80,451 $ 253,139 1 6/30/2018 $ 10,529,035 $ 10,187,621 $ 88,276 $ 253,139 2 9/30/2018 $ 10,802,024 $ 10,444,575 $ 104,311 $ 253,139 3 12/31/2018 $ 9,996,872 $ 9,619,325 $ 163,629 $ 213,918 4 3/31/2019 $ 10,845,103 $ 10,454,333 $ 176,852 $ 213,918 5 6/30/2019 $ 10,997,568 $ 10,764,375 $ 19,275 $ 213,918 6 9/30/2019 $ 10,900,074 $ 10,656,754 $ 29,403 $ 213,918 7 12/31/2019 $ 11,511,972 $ 11,258,968 $ 79,907 $ 173,097 8 3/30/2020 $ 10,210,101 $ 9,967,639 $ 69,365 $ 173,097 9 6/30/2020 $ 11,393,103 $ 11,147,518 $ 72,488 $ 173,097 10 9/30/2020 $ 12,186,163 $ 11,932,734 $ 80,332 $ 173,097 11 12/31/2020 $ 12,451,498 $ 12,317,451 $ 2,595 $ 131,452 12 Twelve Quarter Average $ 11,013,030 4.0% Spending Rule $ 440,521 3.75% Spending Rule $ 412,989 3.50% Spending Rule $ 385,456 2019 Spending Rule Amount $ 421,722  Oil and Gas Investment Board Roster NAME PHONE ADDRESS TERM E-MAIL Roger Zielinski 989-329-3081 (m) 529 First Street Mayor rzielinski@manisteemi.gov Chair / Mayor Manistee MI 49660 12/21 Erin Martin Pontiac 231-510-3457 (m) 1003 Engelmann Street 12/21 epontiac@manisteemi.gov Council Representative Manistee MI 49660 Ed Bradford 398-2804 (w) City Hall 12/21 ebradford@manisteemi.gov Vice-Chair / Trustee Jeff Reau 723-3533 (w) 294 River Street 6/30/22 jreaufa@gmail.com 231-878-0540 (h) Manistee MI 49660 Doug Parkes 690-2225 (m) 724 Harbor Drive 6/30/24 dougaparkes@hotmail.com 723-8687 (h) Manistee MI 49660 Thad Taylor, City Manager 398-2801 (w) City Hall ttaylor@manisteemi.gov Ex-Officio (Non-Voting) George Saylor 723-8333 414 Water Street GSaylor@mikameyers.com City Attorney Manistee MI 49660 Kelly McColl 398-2801 City Hall kmccoll@manisteemi.gov Recording Secretary Updated: January 4, 2021