February 16, 2022

Bakersfield College Foundation
Finance & Investment Committee Meeting

Wednesday, February 16, 2022 – 4:00 pm
Zoom link for public attendance: https://cccconfer.zoom.us/webinar/register/WN_zJlLcGA5SBeCKAl5Yqjbwg

Meeting Minutes

Present:           Marko Zaninovich, Jeff Bell, Mike Giacomini, Rick Kreiser, Michael O’Doherty,                            Ken Byrum, Derek Yurosek, John Pitre

Absent:            Connie Perez-Andreesen

Staff:                Cheryl Scott, Susan Hubbell, Courtney Carter, Alyssa Cross

Guests:            Ira Cohen, Harlan Spinner

  1. Call to Order – The meeting was called to order by Chair, Marko Zaninovich, at 4:03 pm.

  2. Roll Call – Courtney Carter took roll and determined that quorum was present.

  3. Public Comments Statement – Marko Zaninovich read the public comments statement.  There were no public comments submitted to the secretary.

  4. Approval of Meeting Minutes from November 18, 2021 – Motion – Marko Zaninovich made sure everyone received a copy of the November 18, 2021 meeting minutes. There were no comments or rectifications to be made. Marko called for the meeting minutes from November 18, 2021, to be approved as presented. Mike Giacomini motioned for the meeting minutes to be approved. Jeff Bell seconded the motion. None opposed and all were in favor. The meeting minutes from November 18, 2021, are APPROVED.

  5. Investment Report from UBS team – Ira Cohen gave an update on the current market. He started by stating that 2021 ended on a positive note. It was the third straight year of good returns, but 2022 has brought more volatility, with inflation being the highest it has been in many years. The Russia and Ukraine war also continues to be a major concern. Ira personally thinks that the reason for so much volatility is that the market got ahead of itself. Harlan Spinner followed with the investment report, showing the client summary, current asset allocation, rates of return, and asset class performance. John Pitre asked how long cash usually sits before investing it. Harlan explained that they come up with a deployment schedule, depending on the market. Rick Kreiser stated that he is still concerned about the nation’s financial future. He asked for Harlan’s thoughts on asset classes that we aren’t currently in. Harlan explained that gold, for example, doesn’t pay a yield. Marko asked Harlan to give some indicators of when it might be a good time to step into those different investments. Harlan will think about it and come back to the next meeting with a response. 

  6. Financial Update – Mike Giacomini presented the financial report for the 2nd quarter results. Total revenue equaled to $5,659,545 – only $2,349,050 was budgeted. Total expenses came out to $1,728,505. Net Income totaled $3,931,040. Mike mentioned that the Student Emergency Fund applications from students hasn’t been as much this year because we still have Covid relief funds to distribute. The balance sheet showed $60,009,697 in liabilities and net assets. As of 2/15/22, the UBS portfolio is $56,823,950. Michael O’Doherty complimented that the unrestricted assets gained about $200,000.

  7. BC Foundation Banking Relationship – Cheryl stated that Valley Strong Credit Union has been a long-time financial supporter of the college, and they recently made a $2 million gift. She raised the idea of the BC Foundation moving it’s banking relationship to Valley Strong Credit Union. Cheryl asked the committee for their thoughts. Michael O’Doherty stated that he was the one who brought the relationship to Citizens Business Bank 13 years ago. He mentioned that Valley Strong is a credit union and not a bank, so they have to make sure there are no state regulations that oppose it. He thought it was a good idea to look at different banks being involved. Jeff Bell commented that the administrative cost will be relatively the same, but Valley Strong has proactively responded to the Foundation’s needs. Mike Giacomini shared that making a change can be a good thing, but more clarification is needed on the distinction between using a bank vs. a credit union.  The topic will be researched and it will be discussed again in the next finance committee meeting.

  8. Audit Update – Change in Auditor – Susan Hubbell shared that the last auditor decided to no longer conduct any Foundation type of audits. The new auditor for BC Foundation will be Abel Moreno. He will also be the auditor for the Cerro Coso and Porterville College Foundations.

  9. Executive Director’s Report – Cheryl presented the Sterling Silver revenue and expenses from 2014 to 2021. In 2021, the net profit came out to $38,904.03. The projected net profit for 2022 is $58,500.

  10. Renegade Innovation Fund Application Review & Approvals – Cheryl shared that there is still $61,000 available. $39,000 was given in the Fall.
     
    1. Anthropology – Motion – The Anthropology department requested $1,532 for adjunct faculty to attend the Culturally Responsive Educational Workshop. Marko Zaninovich called for a motion for this request to be approved. Rick Kreiser motioned for approval. Jeff Bell seconded. All were in favor, none opposed. The request from the Anthropology department for $1,532 is, APPROVED.

    2. Engineering – Motion – The Engineering department requested a minimum of $44,000 and a maximum of $48,000 for new lab equipment that is needed for a new course. Jeff Bell recognized that this would continue to impact future students. Marko Zaninovich called for a motion to move this request of $44,000 for full board approval. Jeff Bell motioned for approval. Michael O’Doherty seconded. All were in favor, none opposed. The request from the Engineering department for $44,000 is APPROVED to forward to BOD for full approval.

    3. Agriculture – Motion – The Agriculture department requested an amount of $2,800-$4,705 for an on-site germination of crops for a Regenerative Agriculture Farm. This project will include employment and education opportunities. Mike Giacomini shared that this would help kick-start the program. This request of $2,800 was moved forward to the approved category. ($4,705 will be considered if money is still left from the $61,000 in the fund.) Marko Zaninovich called for a motion for the request of $4,705 from the Agriculture department to be approved. Mike Giacomini motioned the approval. Rick Kreiser seconded. All were in favor, none opposed. The request from the Agriculture department for $4,705 is APPROVED.

    4. Child Development Center – The Child Development Center requested $72,400 for a new food preparation kitchen area. They would begin preparing meals for children instead of getting meals delivered by KCSOS. Marko asked if it was a need or an innovation. Marko asked to pass this request because it didn’t belong. Both Jeff Bell and Michael O’Doherty agreed. Marko Zaninovich called for a recommendation to not accept this request and not send it to the board (which is required of any requests for more than $10,000.) All were in favor, none opposed. The request from the Child Development Center for $72,400 is DENIED.

    5. Commercial Music – Motion – The Commercial Music Program has an audio podcast that they would like to start video recording (in addition to the audio). They requested $800-$1,000 to purchase video equipment and a subscription to a podcast hosting service. Rick Kreiser and Michael O’Doherty thought it was a good idea. Marko Zaninovich called for a motion to approve this request of $1,000. Michael O’Doherty motioned for approval. Jeff Bell seconded. All were in favor, none opposed. The request for $1,000 from the Commercial Music Program is APPROVED.


      Marko Zaninovich repeated all the requests and amounts. The total minimum is $49,400 and the total maximum is $55,305. Marko asked for recommendations on how to use the budgeted funds that will leave a surplus. Mike Giacomini suggested to increase the agriculture award to the maximum amount of $4,705. He also questioned if the amount left over will be used in the next year’s Renegade Innovation Fund. Everyone agreed that the leftover funds should roll over.

  11. Other Business / Adjournment of Meeting –  There was no other business brought forward. Marko thanked the committee for participating. He adjourned the meeting at 5:44 pm.