Manhattan Beach Education Foundation
Board of Directors - Regular Meeting
December 14, 2004 at 7:30 p.m.
MBUSD Office, 325 S. Peck Avenue, Manhattan Beach

Present:

Directors (19/30): Edie Babbe, Geoff Bremer, Webster Burns, Brian Currey, Michelle Erickson, Linda Figel, Nancy Hersman, Craig Kline, Carolyn Leserman, Diane Levitt, Anne McLaughlin, Cindy McMahon, John Oshiro, Ellen Rosenberg, Freddi Segal-Gidan, Jeff Thaler, Ida VanderPoorte, Tati Wennekamp, Pam Yarbrough

MBUSD Representatives: Steve McMahon

Business Partnerships: Sherry Kramer

MBEF Staff: Debbie Bowen

Guests: Tammy Choy, David Curry, Steve Gregg, Dennis Harris, Donna Harris, Marian Harris, Sherwin Kim, Ken Martello, Kevin Post, Muriel Savikas, Victor Savikas, Joseph Stassi, Jack Tarr, Margo Thole, Linda Wilson

Presiding: Carolyn Leserman, President

Recording: Anne McLaughlin, Secretary

Handouts: Agenda, Minutes, Financial Report, Draft of the Investment Policy

Recognition and Check Presentation:
Ms. Sherry Kramer introduced Mayor Linda Wilson and thanked her for making MBEF the primary recipient of the funds raised from the Mayor’s Golf Tournament. Mayor Wilson described the origin of the tournament and how it had exceeded her goals. She presented checks totaling $17,000 ($15,000 to MBEF and $2,000 to the Mira Costa High School boys’ and girls’ golf teams).

Ms. Kramer introduced Mr. David Curry, Chair of the Manhattan Beach Chamber Sports and Entertainment Committee, which has designated MBEF and MBAF as recipients of various fundraising events.

President’s Notes:
Ms. Leserman announced that the Foundation’s Annual Report is at the printer.

Ms. Leserman thanked Ms. Linda Figel and Ms. Diane Levitt for their work on School Notes, which will be distributed in January.

She stated that Mr. Ben Benya has volunteered to conduct a market research project on MBEF and that a committee will meet on Wednesday, December 15, to assist in this effort.

Ms. Leserman circulated letters from MBMS students thanking the Foundation for its support of the music program at the schools.

Minutes:
Upon motion duly made and seconded, the minutes of the meeting of November 9, 2004 were unanimously approved as presented.

Financial Report:
Ms. Ida VanderPoorte presented financial statements for the five months ended November 30, 2004. Ms. VanderPoorte said that under a new state law, SB1262, MBEF is required to have annual audits and form an Audit Committee

Mr. Geoff Bremer gave the report of the Investment Committee. He presented a draft of an Investment Policy prepared by the Committee, asked that Board members review the draft thoroughly, and forward any comments to him. He stated his plan to seek board approval of the Investment Policy at the January meeting. Mr. Bremer stated that the Committee had determined that an Endowment account be established at SmithBarney in order to segregate Endowment funds, and Ms. VanderPoorte said that $1.5 million is being segregated. Mr. Bremer stated that the Endowment fund was a long-term investment designed to grow to a level where it would generate substantial interest and dividends to support programs on a long-term basis. Mr. Bremer described the “prudent investor rule.” Mr. Thaler stated the need to invest Endowment funds in instruments other than fixed income securities that typically fail to beat inflation. Ms. Leserman expressed an interest in having the Investment Committee set goals for the Endowment’s size and determine the contributions that should be made to the Endowment from general fund activities. Mr. John Oshiro expressed an interest in having the Committee present its vision for the Endowment. Mr. Brian Currey stated that some of these issues may go beyond the scope of the Investment Committee and extended an invitation to other board members to participate in these discussions.

Business Education Partnership Report:
Ms. Sherry Kramer announced that we are awaiting final numbers on the promotions with L.A. Food Show and Sprout Children’s Store. She reminded board members of the Johnny Rockets’ promotion in January.

She announced that the Comedy & Magic Club event, benefiting MBEF, would take place on Tuesday, March 15, 2005. The Panzarella family will host a reception before the event. Maximum seating at the Comedy & Magic Club is 225.

The College and Career Expo will take place at MCHS on March 3, 2005.

Ms. Kramer announced that Platinum Capital, a mortgage brokerage firm, had proposed a promotion whereby Platinum would donate an amount per transaction to MBEF from those transactions generated by referrals from MBEF supporters. Mr. Ken Martello of Platinum Capital responded to questions regarding the promotion.

Superintendent’s Report:
Mr. Steve McMahon discussed the District’s interim budget report. He stated that the District was maintaining its required reserves, but that certain expense categories, particularly special education, had exceeded the original budget.

He announced that Dr. Gwen Gross had been named Superintendent of the Year by Pepperdine University.

Annual Appeal:
Ms. Linda Figel stated that the Annual Appeal is ending on Friday, December 17, 2004. She announced that $1.6 million had been raised, and she thanked PTAs and others for their contributions to the campaign. Mr. Oshiro inquired about the $1.9 million needed to fund MBEF’s existing commitments and expressed a desire to reinstate additional programs. A discussion ensued. Ms. Freddi Segal-Gidan stated the importance of communicating clearly with the public and utilizing community input to make decisions regarding the restoration of programs. It was suggested that Dr. Gross publish the results of the program priorities survey in her article in The Beach Reporter.

Ms. Edie Babbe stated that Grand View Elementary had designated its Gator Run as an MBEF fundraiser. Ms. Cindy McMahon stated Meadows Elementary School PTA’s desire to designate its Camp Expo as an MBEF fundraiser.

Ms. Figel raised the issue of corporations that will only match donations made directly to the schools, and a discussion took place regarding PTAs donating directly to MBEF.

Ms. Babbe suggested that the Annual Appeal conduct a “lessons learned” survey to assist in next year’s fundraising.

New Business/Old Business:
Ms. Erickson said that Pacific Elementary would like to host an MBEF meeting at its school. Ms. Leserman expressed concerns about changing meeting locations each month and suggested that, alternatively, MBEF directors attend PTA meetings on a scheduled basis.

Meeting Adjourned: 8:53 p.m.

Next Meeting: Tuesday, January 11, 2005, 7:30 p.m. at the District Office, 325 S. Peck Avenue