Oil & Gas Investment Board

CITY OF MANISTEE OIL AND GAS INVESTMENT BOARD MEETING OF APRIL 16, 2021 There will be a virtual meeting of the Oil and Gas Investment Board held on Friday, April 16, 2021 at 12:00 p.m. Join Zoom Meeting: https://us02web.zoom.us/j/85826591621?pwd=eTlBaStxaGZLL2ZCVlRsemkzTWRTZz09 To Attend Meeting by Phone: +1 646 558 8656 Meeting ID: 858 2659 1621 Passcode: 606516 Members of the public with disabilities may participate in the meetings by dialing 711 and connecting with Michigan Relay, a communications system that allows hearing persons and Deaf, hard of hearing, or speech- impaired persons to communicate by telephone. You will have to provide them with the meeting information above. AGENDA I. ROLL CALL. II. OLD BUSINESS. a.) Aztec Producing / Royalties: January 2021 - $ 0 February 2021 - $ 3859.05 March 2021 - $ 2923.41 III. NEW BUSINESS. a.) Approval of Minutes from January 15, 2021 b.) Investment Advisor Update and Commentary c.) Other IV. PUBLIC COMMENT. VI. ADJOURN. c. Roger Zielinski, Chair Thad Taylor, City Manager Erin Martin Pontiac, Council Representative George Saylor, City Attorney Ed Bradford, Vice-Chair Woody Uible, Investment Advisor Doug Parkes Jeff Reau  OIL AND GAS INVESTMENT BOARD MINUTES OF JANUARY 15, 2021 The City of Manistee Oil and Gas Investment Board held a regular meeting on Friday, January 15, 2021 via ZOOM. Meeting was called to order by the Chair at 12:03 p.m. MEMBERS PRESENT: Roger Zielinski, Doug Parkes (12:16 p.m.), Thad Taylor, Erin Martin Pontiac, Ed Bradford MEMBERS ABSENT: Jeff Reau, George Saylor OTHERS PRESENT: Woody Uible, Troy Snider OLD BUSINESS 2020 Aztec Well Update – Royalties for January: $3,777.10; February $3,513.18; March: $3,808.73; April: $2,246.77; May: $0.00; June: $869.64; July: $566.96; August: $3,069.75; September: $4,207.07; October: $0.00; November: $2,263.24; December $2,194.47. NEW BUSINESS Minutes - Minutes from the October 16, 2020 meeting were reviewed. MOTION by Erin Martin Pontiac, second by Ed Bradford to accept the minutes as presented. No discussion. With Roll Call this motion passed 3 to 0. Yes: Roger Zielinski, Erin Martin Pontiac, Ed Bradford No: None Investment Advisor Update and Commentary – Woody Uible and Troy Snider present the Investment Update as of December 31, 2020. Discussion items:  Market Assessment – capital markets have stabilized but economic recovery uncertainties linger. Portfolio safeguards remain in place for protection and to capitalize on the volatility with high quality investments for long-term growth.  Interest rates are among lowest they have ever been – support for stock and bond prices.  Future tax policies will not be business friendly due to high debt.  2020 recession in practice but not technically, per the National Bureau of Economic Research criteria.  Treasury rates decreased since the end of 2019.  Concentrated market – 5 largest companies are close to 25% market value of public stock. OIL AND GAS BOARD MINUTES – JANUARY 15, 2021 PAGE 1  No correlation shown between political party in power and performance of stock market.  Asset allocation investments close to target of investment policy statement.  Fixed income portfolio yields have come down in the past year or so.  Defensive tilt to portfolio.  Discussed portfolio performance and prospects for returns in the future. Annual Spending Rule Calculation – Discussed the annual spending rule calculation. The annual spending rate needs to take into account projected investment returns and inflation to maintain the purchasing power of the fund and make it sustainable over the long term for future citizens of Manistee. Yields over the next 10 years will likely not look as good as they have during the past 10 years. Without adjustments, this could begin to erode purchasing power. A 3.5% spending rule would be recommended with these considerations in mind. MOTION by Ed Bradford, second by Erin Martin Pontiac to recommend to City Council to change the annual spending rule calculation by phasing in a decrease from 4.0% to 3.5% over two years. The December 31, 2020 calculation for fiscal year 2021-2022 would use a 3.75% spending rule; and the December 31, 2021 calculation for fiscal year 2022-2023 and beyond would use a 3.5% spending rule. With Roll Call this motion passed 4 to 0. Yes: Roger Zielinski, Doug Parkes, Erin Martin Pontiac, Ed Bradford No: None Ed Bradford will write up recommendation to present to City Council at a future City Council meeting. Annual Review of Bylaws – MOTION by Doug Parkes, second by Ed Bradford to accept the bylaws as presented; no changes are required. With Roll Call this motion passed 4 to 0. Yes: Roger Zielinski, Doug Parkes, Erin Martin Pontiac, Ed Bradford No: None Annual Review of Member Roster – MOTION by Erin Martin Pontiac, second by Doug Parkes to accept the member roster as presented; no changes are required. With Roll Call this motion passed 4 to 0. Yes: Roger Zielinski, Doug Parkes, Erin Martin Pontiac, Ed Bradford No: None PUBLIC COMMENTS None. OIL AND GAS BOARD MINUTES – JANUARY 15, 2021 PAGE 2  NEXT MEETING / ADJOURNMENT Next regular meeting is scheduled for Friday, April 16, 2021 at 12:00 p.m. Call of the Chair to adjourn at 12:44 p.m. DRAFT - km Kelly McColl c. Manistee City Council Board Members Thad N. Taylor, City Manager George Saylor, City Attorney OIL AND GAS BOARD MINUTES – JANUARY 15, 2021 PAGE 3