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HomeMy WebLinkAboutAgenda Packet - LB - 2008.11.18 51URLINGAME PUBLIC LIBRARY BClRLItyGAME Board of Trustees Agenda - _ November 18, 2008—5.30pm �e P 480 Primrose Road—Library Conference Room SUGGESTED ACTION I. CALL TO ORDER II. ROLL CALL III. Library Board of Trustees Minutes for October 21,2008 Appproval IV. CORRESPONDENCE AND INFORMATION Information A. State Budget Crisis B. Key Indicators Update C. Library Accomplishments to Council D. Website Statistics E. Monthly Statistics for October 2008 V. FROM THE FLOOR (Public Comments) VI. REPORTS A. City Librarian's Report—Escoffier Information B. Foundation Report Information �. UNFINISHED BUSINESS A. Centennial Event Winter Wonderland Discussion B. Employee Achievement Award Event Information C. Library Budget Information D. Duncan Trust Status Information VIII. NEW BUSINESS A. Draft of Library Mission Statement and Strategic Plan Discussion B. Close Library at 4:OOpm on Friday, December 12th Discussion/Approval IX. ANNOUNCEMENTS X. ADJOURNMENT Adjourn Any writings or documents provided to a majority of the Library Board of Trustees regarding any item on this agenda will be made available for public inspection at the Reference Desk of the Burlingame Public Library, 480 Primrose Road, Burlingame, California BURUMOAME. Library Board of Trustees Minutes �-' October 21, 2008 I. Call to Order President Brock called the meeting to order at 5:30pm. II. Roll Call Trustees Present: Nancy Brock, Deborah Griffith, Katie McCormack, Pat Toft, Sandy Towle Staff Present: Al Escoffier, City Librarian Sidney Poland, Recorder Foundation Board Member Stephen Hamilton III. Minutes of the Se-ptember 23, 2008 Trustee Meeting The Trustees unanimously approved the September 23, 2008 minutes. M/S/C (Griffith/Toft) IV. Correspondence and Attachments A. Live Homework-Help - The Trustees reviewed the summary of promotional efforts made this fall to encourage students to use "Live Homework Help". In the beginning, "Live Homework Help" was supplied to the Library as a grant. Currently, the program is paid for by the Library at a cost of$5,000 annually. B. Energy Demand Response Program - This is a program that the City has undertaken to-make all the City buildings more energy efficient. The Library received a rating of"Good". V. From the Floor - No one from the public attended. VI. Reports A. City Librarian's Report,- Highlights 1. Children's Mural- The Children's Centennial Mural was formally dedicated on October 19th at the Library's Centennial kickoff event. After the formal ceremony, guests were invited into the Library to meet Lynne Rutter, artist of the mural. 2. One Book One Community-- The event featuring Dave Eggers in conversation with Michael Krasny and special surprise guest Valentino Deng, the subject of Eggers'.novel "What is the What", attracted an audience of 1,400 people. Feedback was positive but there was some difficulty with the sound system. Next year's author has not yet been selected. 48o Primrose Road Burlingame•California 94010-4o83 Phone(650)558-7474'Fax(65o)342-6295'www.bu4ingame.org/library 3. Mini Renovation in Children's Room -This project was completed in time for the Centennial Kickoff Event. Private donors helped to make this project possible. 4. Library Budget Library managers have met and are in the process of developing an Alternative Service Model budget based on 5% ($192,680) and 10% ($385,360) reductions. It is likely that staffing of service desks will be reduced first in an effort to maintain current service hours for the public. This strategy will move the,Library towards a self service model. Reductions in all areas of the Library's Collection and closing at 5:00 on Friday could be on the horizon. The proposed budget will be submitted to the Library Trustees and then go to Council. B. Foundation Report Stephen Hamilton August Mailing- Donations from the mailing now total $17,620. The mural committee had a successful campaign raising $22,000. 216 donors responded to the August mailing 127 of which were new and 37 who were lapsed donors. The Foundation has reached this year's budgeted goal of providing $100,000 to the Library. , VII. , Unfinished Business A. Centennial Wrap Up -The opening event for the Library Centennial was well attended. Music was provided by the Burlingame High school band. Speakers included Burlingame Mayor, Rosalie O'Mahony; Town of Hillsborough Mayor, Kitty Mullooly; Deputy State Librarian, Stacey Aldrich; and Honorable Jackie Speier, U.S. House of Representatives. Roma Naveb submitted the winning names for the Lions "Wisdom and Wonder." B. Winter Wonderland - Staff is in the find stages of planning for this event which will be held December 12th from 7:Q0 - 9:00pm. There will be entertainment, food and drink, and many wonderful surprises. The Library will close early in order for staff to stage the event. C. Hillsborough Contract -The City Manager is continuing to work for a solution to this issue. Hillsborough has not made a payment to the City under its present contract since June of 2008. VIII. New Business A. Employee Achievement Awards The Trustees approved the motion of Trustee Griffith to give the individual award winners a check for $200. M/S/C (Griffith/Toft) Trustees McCormack and Towle will review the nominations and select the winners. Library Board of Trustee Minutes October 21,2008 2 B. Employee Achievement Award Dinner _ This year the Trustees decided to have an employee drawing for 3 gift packages. Trustee Griffith'and-Toft will oversee this project. C. Library Holiday Schedule The Trustees unanimously approved the Library Holiday Schedule. M/S/C (Griffith/Towle) - IX. Announcements Trustee Towle requested business cards that he could use when he visits other libraries. X. Adjournment The Trustees' meeting was adjourned at 6:20pm. M/S/C (Griffith/Toft) The next meeting of the Library Board of Trustees will be held November 18, 2008 at 5:30pm in the Library Conference Room. Respectfully Submitted, Ald H. 4Escor City Librarian Library Board of Trustee Minutes October 21,2008 3 2008 SPECIAL SESSION BRINGING CALIFORNIA'S REVENUE SYSTEM INTO THE 21sT CENTURY BI-PARTISAN COMMISSION WILL ADDRESS OUR CHRONIC BUDGET PROBLEMS BY MODERNIZING OUR STATE'S REVENUE LAWS Today Governor Schwarzenegger signed Executive Order S-12-08 to create the bipartisan Commission on the 21st Century Economy to re-examine and modernize California's out-of-date revenue-gathering laws that contribute to our feast-or-famine state budget cycles. This 12-member commission to be made up of legislative and gubernatorial appointees will suggest changes that will result in a revenue stream that is more stable and reflective of our economy. This is long-term action that will help avoid the extreme revenue swings that cause crippling deficits while maintaining a tax structure that will ensure our continued competitiveness and attraction to employers and workers. California's antiquated revenue system is a major contributor to our feast-or-famine budget cycles.Our tax system has not been restructured in over 80 years even though our economy has changed dramatically. ➢ 50 percent of California's personal income tax revenues come from just 1 percent of residents. That's fewer than 150,000 taxpayers, and much of their income is based on volatile investment income — so when their income dips the state's tax revenues fall too. ➢ When Wall Street sneezes,California catches a cold.Nearly 15 percent of our revenue comes from capital gains— meaning the turmoil on Wall Street brings pain straight to Main Street,California. In contrast, the state of Washin ton is projecting a revenue shortfall of less than 1% while our state may face a shortfall of nearly 10%. The difference is that our state's tax revenues reflect Wall Street's economy more than California's economy. This annual uncertainty makes it difficult to fund government operations year-to-year. Boom years produce more spending than can be sustained in bust years,putting state services in constant annual jeopardy. ➢ Such a volatile revenue stream is unacceptable for California's 38 million residents who rely on a stable funding for a host of state-funded programs. We need a revenue system as diverse as our economy. Unlike our budget system, California has one of the most diverse economies in the world.A tax system as diverse as our economy would produce stable revenue. ➢ An improved revenue-gathering system would decrease the pressure for future tax increases to address revenue shortfalls,which will continue to occur if the volatility of our tax system is not reduced. ➢ A tax structure that better reflects California's economic strengths could actually grow the economy. For example, reducing the corporate income tax would boost hiring,creating jobs. Executive Order S-12-08 immediately establishes this bipartisan Commission on the 21st Century Economy to modernize and decrease the volatility in the state's tax system. The Commission will make recommendations to bring our tax system into better alignment with our modern economy and to improve the state's economic competitiveness. ➢ The commission will have 12 members, six appointed by the Governor, three appointed by the Assembly Speaker and three appointed by the Senate Pro Tempore. ➢ The commission members will receive no compensation. ➢ They will create a road map toward a more reliable revenue stream that is more reflective of today's economy—to be unveiled on or before April 15,2009. Page 1 of 1 10/29/2008 11/10/2008 BURLINGAME 1VP'i'Il PUBLIC LIBRARY E5TAI3U5I1ED: OCTOBER 19, 1909 BUILDING DEDICATED: JULY 4,1931 CrNRr-DEDICATED Girl o IAL BuFGr11LDREN i MURAL OCTOBER 4, Girl Of BURLINGAMC LIBRARY FOUNDATION 1997 OCTOBER 19,2008 EASTON BRANcrt LIBRARY ORIGINAL CONSTRUCTION:1927 LIBRARY OPENED:1947 tx RE-oEoicprco:2004 "MI KEY SERVICE INDICATORS POPULATION SERVED • Collect statistics monthly • City of Burlingame • Report statistics monthly for Board of • 2/3 Town of Hillsborough Trustees,Staff measure workloads, • Total:36,801 self-service Initiatives — Burlingame serves 2/3 of Hillsborough under a contract which is adjusted annually, • Report statistics and key Indicators based on the average per annually to the City and the capita support of Peninsula State Library Library System libraries. 1 11/10/2008 3 YEAR CIRCULATION TRENDS MONTHLY 5NAP5f1OT Of USE FOR OCTOBER 2008 700,000 600,000 MAIN LIBRARY CIRCULATION - 49,649 500,000 »>UP 10%OVER PMVIOU5 YEAR 400,000 ❑Media 300,000 ■Childrens (:ASTON BRANCt1 LIBRARY 200,000 ■Total CIRCULATION - 6,688 100,000lu 6%increase in >>>UP 14%OV[R PRCVIOU3 Ytm 2005- 2006- 2007- 3 year period 2006 2007 2008 — PER CAPITA USE Of THE PATRON REGISTRATION LIBRARIES • CIRCULATION 17 items 2005-2006=32,000 per capita-Increase of 13% • 2006-2007=36,174 • RCrLRENC[up 2.5 questions per capita- 2007-2008=26,701** Increase of 4% • 76%of population served • CIRCULATION PFR .� CIIILD—22 items per —following database purge capita ` EACH PERSON IN BURLINGAME AND 1 11LLSBOROUGN CHECKS USE OF DATABASES & INTERNET OUT... • 2005-2006 =85,000 a • 2005-2006= 15.22 items • 2006-2007= 130,065 • • 2006-2007= 17.27 items • 2007-2008= 140,352 • 2007-2008= 17.50 items 2 11/10/2008 PROGRAM ATTENDANCE (ALL AGES) CHILDREN'S PROGRAMS 25,000 Programs for Toddlers • Programs for School Age 20'000 Programs for Teens 15,000 Holiday programs ,o,000 Poetry workshops " 5,000 Number of • Summer Reading Clubs _ 0 Programs • Visits to nurse schools, 2005-2006 2006.2007 2007.2008 2005-2008=395 nursery zoos-zoo?=azo day care centers 2007-2008=523 V151T5 TO CLASSROOMS CHILDREW5 STORY TIMES • Visits made to 8 schools in Burlingame • 477 programs-up 10% over last year &Hillsborough • 19,646 children-up 10% over last year • 2,500 students meet a librarian • 7 Story times per week • Summer program • New Baby Story time r VOLUMES ADDED EA5TON BRANal GROWTH 6o,000 16,000 70,000 14,000 60,000 12,000 50,000 10,000 40,000 8,000 30,000 6,000 20,000 4,000 10,000 2,000 0 0ftL 19994000 2007-2008 2005-2006 2006.2007 2007.2008 3 11/10/2008 RECENT ACCOMPLI5I1MENT5 MORE ACCOMPLI5MMENT5 • Increased network bandwidth by 10X by • CENTENNIAL KICK-OFF"PROGRAM installation of Fiber Optic cable • New databases:Heritage.com,Ancestry.com • WINTER WONDERLAND • Increased collection marketing,displays INTERGENERATIONAL EVENT • Next Reads Newsletter • LIBRARY COLLECTION RE-ORGANIZATION • Teen Newsletter • BRONZE LION5: W15DOM& WONDER, • Teen volunteer program GIFT OF DUNCAN TRUST • Expand outsourcing of cataloging& • GIrT OF FUNDS FOR COLLECTION FROM processing DUNCAN TRUST ONE BOOK, ONE COMMUNITY GOAL5 FOR TI`115 YEAR "WHAT 15 THE WHAT" Implement Strategic Plan DAVE EGGER5 Announce new Mission Statement IN CONVER5ATION WIT11 ' • Deal with budget realities MIC11AEL KRA5NY Expand outsourcing to non-fiction to -Over 20 programs system wide save Staff time -Focused on culture,politics,history of Sudan • Celebrate Centennial year -Author made personal appearance at Performing • Centennial Mural finished Art Center VOLUNTEER PROGRAM5 BURLINGAME LIBRARY • Outreach to shut-ins FOUNDATION • In house volunteers • The 14 year old Foundation to supports • Book sale and special event volunteers and supplements library services • Raised$ 1 M for Branch Library • Pledges to raise$ 100,000 per year for Over 2,000 hours per year! programming& PR • Support collections 4 a Major Library Accomplishments, FY 2007-2008 1) New Fiber Optic Cable Network for Library. Increased library network bandwidth 1OX for increased speed, downloading, etc. 2) Renovation of Library Children's Room. Paint, new seating, new upholstery, Children's Centennial Mural. Funded by the Library Foundation. 3) Library wins 7 Awards. Library won 7 national library awards for public relations (June 2008). 4) Library Use Statistics up 6%. As the recession deepens, monthly statistics for October exceed 10% at the main library and 15% at the Easton Branch. Easton circulation has tripled since 2004 opening. 5) Trustees Education Fund. Trustee establish a fund for continuing education for library staff, funded by the Trustees Special Fund. 6) Centennial Kick Off. October 19 signaled the kick-off of the Library's Centennial year. The bronze lions were named "Wisdom" and "Wonder." Alfred Escoffier City Librarian \" November 10, 2008 r ` s Webpage Title hits Sept. 1, 2008 - Oct. 31, 2008 Library Home 47377 Hours& Locations 1630 My Library Account 1511 Kids Page 872 Research Tools 782 Programs& Events 707 Homework Help 627 Kids Events&Story Time 541 Contact Us 317 Adult Events 309 Teens 298 Easton 291 Using the Library 277 Library History 219 About our Library 202 Music, Movies& More... 167 Get Involved 165 Just Baby and Me 145 Hits per day hits April 1 - May 31, 2008 Hits per day -� 777 24562 403 27 1701 28 25 1167 19 14 819 13 13 891 15 12 755 12 10 314 5 9 476 8 5 315 5 5 371 6 5 252 4 5 361 5 5 385 6 4 0 0 3 128 2 3 213 3 3 145 2 2 148 2 BURLINOAME M ra an s epo �.,. November 11, 2008 City Budget and Strategic Planning Proposed reductions to the Library budget at 5%would be: $ 192,680; at 10% it would be: $ 385,360. Those budget reductions may include: a) Close the Main Library at 5 PM on Fridays (2 hour savings) b) Close Easton all day Friday c) Cut book budget by 30% d) Drop Interlibrary loan service e) Close extra days around holidays In the 10% reduction module, we would be looking at closing earlier Monday- Thursday, at 8 PM instead of 9 PM, and beginning to lay off permanent staff. Reduction options will be vetted at the Department Head level, and sent to City Council. Action is not expected before January. Strategic Planning We thought this would be a good time to dust off our strategic planning skills and take a look at our mission statement. To date we have: a) Drafted a new Mission Statement; , b) Brainstormed the library of the future-2020; c) Looked at strengths, weaknesses;threats and opportunities; d) Shared with staff and sought their input on reductions. Carpet Project The carpet project is on permanently,on hold due to the budget issues. Carpet repairs will continue. Library Centennial We had tremendous volunteer efforts that made the Centennial event a great success. It was a great day for the Library and the City. I am very pleased at the turnout and the enthusiasm. The Lions are named: "Wisdom" and "Wonder." Appropriate plaques will be placed near them soon Upcoming Centennial programs There are a number of Centennial programs in the works for this year. Programs will include: a. Burt Newmark discussing his role in WWII, December 2nd; b. Winter Wonderland, December 12, 7pm-9pm; c. Centennial Children's Poetry month, January 2009; 1 480 Primrose Road•Burlingame-California 94010-4083 Phone(650)558-7474'Fax(650)342-6295'www.burlingame.org/library 4 d. Dan Stone Memorial Lecture and School visits featuring Elizabeth ,.,. Partridge, January 2009; e. Friday Family Films, February and April series; f. Author series featuring: Germaine Greer, Cara Black (mysteries); g. Tiffany Baker,.February 2009; h. Women authors of Mystery, Sue Grafton, Marcia Muller, Sara Paretsky, February 2009; i. History of Burlingame Library, Russ Cohen, March 2009; j. School age book Discussion Group, Fridays, February-May 2009; k. Children's Book Week,April 2009; 1. National Library'Week, April 2009; m. Turn off TV Week, April 2009. Not all dates and times are firm. We will be doing PR on our website and the marquee at the Circulation Desk. Printed posters and fliers will also be provided. Holiday Ornaments The blown glass holiday ornaments will be sold at the Circulation Desk for $ 65.00 plus tax. They may also be purchased online at the foundation site: www.burhngamelibraryfoundation.or . Proceeds will benefit the Trustee Special Fund. This Fund supports: collections and staff education. Hillsborough Library Services Contract The Library services contract has not yet been settled, though I may have more information for you at your meeting. Duncan Trust Funds Requested funds from the Duncan Trust were received. I will also be attending a meeting about the trust on November 12th. I will keep you informed of any changes in the trust. Alfred H. Escoffier - City Librarian I � 2 SILICON 1community VALLEY I foundation SERVING SAN MATEO AND SANTA CLARA COUNTIES October 17, 2008 Mr.Alfred H. Escoffier City Librarian Burlingame Public Library 480 Primrose Road Burlingame, CA 94010-4083 Dear Mr. Escoffier, We are pleased to enclose a check in the amount of$60,000,representing a grant from Silicon Valley Community Foundation on behalf of the Roger and Jean Hunt Duncan Fund, a fund of the community foundation. In accordance with the Roger and Jean Hunt Duncan Fund, this money must be used for the benefit of the library in supplement of the income the library receives from the City of Burlingame and not in replacement of any obligations that the City of Burlingame may have for the operating and maintenance of the library. This grant is to support the improvement and enrichment of the library's print and non-print collections. Please note that before any future request to the fund can be considered, the community foundation must receive a brief narrative report and full financial accounting of how these funds, being granted now,were spent. Please submit the report within 45 days of the expenditure of the funds or no later than November 30, 2009. We congratulate you and your staff on the outstanding services Burlingame Public Library provides to the community. Sincerely, Debbie Silveira Senior Director, Grants and Gifts Administration Grant#2008-05484 2440 West El Camino Real,Suite 300 1 Mountain View,California 94040-1498 1 tel: 650.450.5400 1 fax:650.450.5401 1 www.siliconvalleycf.org Page 1 of 1 SILICON I COYY1munity VALLEY foundation DonorConnect Home FUND SUMMARY Fund Summary Forms and Information Roger and Jean Hunt Duncan Fund (1012) Calendar of Events Current Gift and Grant Information as of October 27,2008 Investments Year-To-Date- Last Year-2007 Cumulative 2008 (since 1/1/2003) Contact Us Contributions 0.00 0.00 n/a Sign Off Non-Gifts 0.00 0.00 n/a Grants Paid $60,000.00 $35.000.00 $281,100.00 Grants Approved,Not Yet 0 Paid .00 Recommendations in Process 0.0�0 - Recommendation(s) Pending $0.00(0) Investment Activity $-182.610.44 $116.649.81 Support Fees&Other $- Expenses $-4,859.87 $-5,981.74 Balance Available for Grants $419.656.34 Current Fund Balance! $975.240.46 as of 10/27/2008 Select a range 07/01/2008-09/30/2008 * View fund statement' Fund Statement 0 Email fund statement to Get Statement 1 -Current Fund Balance is based on the balance calculated at the end of the previous business day, including daily gift and grant transactions. Investment returns and administrative fees are calculated and Fund Balances are updated by the 22nd of the month.To see a detailed view of the Fund Balance,click on the underlined balance. 2-Fund Advisors are notified via email when fund statements are available for review, approximately 22 days after the end of each quarter. Gift and grant transactions are updated nightly and account balances are updated monthly with the prior month's investment returns. Fundholders will be notified via email at the beginning of the quarter when their comprehensive fund activity statements in PDF form are available for review. Silicon Valley Community Foundation assesses reasonable fees for the costs associated with administering charitable funds.All fees are an annual percentage and are assessed monthly based on the fund balance at the beginning and end of the month. Funds must maintain a minimum balance of$1,000.The minimum annual fee for all fund types is$250. Adobe Acrobat is needed to view fund statements. 2440 West EI Camino Real,Suite 300■Mountain View,California 94040-1498 1 tel:650.450.5400 1 fax:650.450.5401 1 info(asiliconvalleycf.ora privacy policy https://www.edonorcentral.com/fimd—history.asp 10/27/2008 SILICON, I communitysm VALLEY foundation : MWAG41A€O NJIFS Statement Period /1 July 1,2008 through September 30,2008 Fund Name Fund Number Roger and Jean Hunt Duncan Fund 1012 Philanthropy Manager: Michelle Fries 650.450.5504 mdfries@siliconvalleycf.org Statement Questions: Debbie Silveira 650.450.5454 dmsilveira@siliconvalleycf.org Important Information from Silicon Valley Community Foundation If you have any questions about your statement please contact Debbie Silveira. For any other questions about the fund you advise please contact your philanthropy manager listed above. Fund Activity Q-T-D Y-T-D Beginning Balance $ 1,137,012.73 $ 1,222,710.77 Gifts 0.00 0.00 Gain(Loss)on Gifted Assets 0.00 0.00 Interfund Gifts 0.00 0.00 Other Additions 0.00 0.00 Investment Returns Endowment Pool (99,865.33) (182,610.44) Grants Authorized 0.00 0.00 Interfund Grants 0.00 0.00 Support Fees (1,440.64) (4,393.57) Other Expenses 0.00 0.00 Ending Balance $ 1,035,706.76 $ 1,035,706.76 Fund Assets Investment Pools Target% Endowment Pool 100.00% 1,035,706.76 Assets to be Invested 0.00 Illiquid Assets 0.00 Receivables 0.00 Securities Being Liquidated 0.00 Total Fund Assets $1,035,706.76 Restricted Balance Accounts Payable 0.00 Grants Payable 0.00 Illiquid Assets 0.00 Receivables 0.00 Securities Being Liquidated 0.00 Permanently/Temporarily Restricted Assets 0.00 Total Restricted Balance $0.00 Balance Available for Grants $1,035,706.76 SILICON ( communityw VALLEY foundation TvAV).MNYACbMACOUNTIFS Statement Period July 1,2008 through September 30,2008 Fund Name Fund Number Roger and Jean Hunt Duncan Fund 1012 Investment Performance Quarter Y-T-D One Year Three Year Five Year Fund Returns' (8.79)% (14.97)% (14.28)% 2.51% 7.70% This Fund's Benchmark 0.00% 0.00% 0.00% 0.00% 0.00% About your Fund Statement GIFTS: Contributions/donations made to your fund. GAIN(LOSS) ON GIFTED ASSET: Difference in the value of property when donated and the value when liquidated. INTERFUND GIFTS: Transfers to your fund from another fund at Silicon Valley Community Foundation. OTHER ADDITIONS: Deposits to your fund that do not represent a gift,i.e.partnership income, dividends/interest earned on gifted securities,other assets recieved in exchange for goods or services. INVESTMENT RETURNS: Reflects the total return in the investment pool,net of investment management fees. GRANTS AUTHORIZED: Reflects all grants to qualified organizations that have been recommended by the donor and approved by Silicon Valley Community Foundation. If the grant is scheduled for payment on a future date the grant will also appear in the Restricted Assets section as a Grant Payable and reduces the balance available for granting. l INTERFUND GRANTS: Transfers from your fund to another fund at Silicon Valley Community Foundation. SUPPORT FEES:An allocation to the community foundation's operating fund to enable on-going work with donors and the nonprofit community.Fees are computed and paid on a monthly basis(1/12)per the stated fee rate schedule. OTHER EXPENSES: Administrative expenses paid from your fund,i.e.legal,consulting and credit card processing fees. TARGET%: Allocation to each investment pool. The fund is rebalanced back to this target each month for assets invested in pools offered by the community foundation. ASSETS TO BE INVESTED:Assets that have yet to be invested and will be by the beginning of the following month. ILLIQUID ASSETS:Donated property that has not been sold. RECEIVABLES:Assets in the form of obligations due from others. SECURITIES BEING LIQUIDATED:Gifted securites pending sale or settlement. ACCOUNTS PAYABLE:Expenses that have been approved,but are scheduled for payment on a future date. GRANTS PAYABLE:Grants that have been approved,but are scheduled for payment on a future date. RESTRICTED ASSETS:Assets that may not be used for granting purposes. Investment Information Fund returns are net of all fees and expenses.Benchmark returns are specific to the investment pools offered by the community foundation and are not applicable to funds with assets outside these pools. Comparison to the benchmark may not be appropriate if the fund's investment pool allocation changed during the performance period.Additional information on investments,performance and benchmarks are provided quarterly four weeks after quarter-end on DonorConnect.Investment allocations among the community foundation's investment pools can be changed once per year or upon a significant change in charitable goals and time horizon for depleting the fund.For more information,please contact your philanthropy manager. Asset Allocation LONG-TERM GROWTH:25%fixed income,30%domestic equity,20%foreign equity,25%alternative investments in hedged equity,absolute return and real asset fund of funds.Benchmark:75%S&P 500 Stock Index/ 25%Lehman Aggregate Bond Index. SOCIAL IMPACT:30%fixed income.50%domestic eouity and 20%foreien eouity. Benchmark: 70%S&P 500 SILICON I communitysw VA L L E Y foundation - Statement Period July 1,2008 through September 30,2008 Fund Name Fund Number Roger and Jean Hunt Duncan Fund 1012 Stock Index/30%Lehman Aggregate Bond Index. BALANCED:50%fixed income,25%domestic equity, 15%foreign equity and 10%alternative investments in absolute return and real asset fund of funds.Benchmark: 50%S&P 500 Stock Index/50%Lehman Aggregate Bond Index. SHORT-TERM:60%short term bonds,30%intermediate term bonds and 10%global bonds.Benchmark:Lehman 1-3 Year Government/Credit Index CAPITAL PRESERVATION: 100%institutional money market mutual funds and bank certificates of deposit. Benchmark:U.S.Treasury Bills. J L Burlingame Public Library Strategic Plan 2008 Summary Table of Contents 1. White Paper on the Burlingame Public Library, October 2008- City Librarian 2. Brainstorming the Library of the P uture: 2020- Managers 3. SWOT Exercise- Managers 4. Next Steps in the Planning Process- Managers 5. Towards a New Mission Statement- Managers 6. Strategic Plan Timeline- City Librarian Budget Planning 7. Looking at Alternative Library Service Models 8. Potential Budget Reductions r. White Paper on the Burlingame Public Library �-- October 23, 2008 The Burlingame Public Library is one of the most exciting and dynamic organizations in the City. It has become the "town square" for the community, with over 1,200 people a day using the collections, technology and building. It has grown from a few books on a shelf 100 years ago, to two architecturally significant buildings from which service is offered. In 1994, I wrote "The fiscal constraints of the City and the flat growth of the economy, will impact the library to the degree that it will not be able to grow as quickly or add staff to accomplish service objectives." Ironically, little has changed today from that statement 15 years ago. We are still facing a contracting budget and not enough staff to accomplish our service objectives. Service Objectives Burlingame has prided itself on providing excellent library public service over the years. The library has always had a very high per capita support, the highest in San Mateo County. The buildings are renovated and appealing. The collections are rich and deep. The staff is dedicated, sustaining a level of quality customer service increasingly not offered elsewhere. It is my belief that those service objectives should continue to be maintained despite threats to funding and opportunities offered by the almost daily changes seen in technology. Ubiquitous Technology There have been many technical innovations in the past 15 years, which have drastically changed the way libraries do business. Even in,the last two years, we have seen changes and we continue to look for technology "best practices" to make the services we offer fresh, attractive, and desirable by our public. Most library services are either delivered by technology (website, online catalog) or impacted by that technology (databases vs. paper indexes; online access to materials vs. print materials). Cell phone technology has given rise to greater communication options through voice and text messaging. Increasingly our files and records are being kept in electronic form, reducing the need for paper files. New media types have given rise to a rapid change in how entertainment and information is delivered. From Traditional Library Services to "something else" Traditional library services, delivered by trained library staff, have also changed considerably. There is much talk in the literature about the "death of the reference librarian."While I think this statement is a bit dramatic, it is true that the reference librarian as "question-answerer" has now morphed into the reference librarian as a coach for the user of the Internet, a reader's advisor, and an event planner to bring 1 more people into the library to access materials for home, work or play. I expect we will see that role continue to change in the coming years. Library Growth and Use Library use has never been stronger in our community. Circulation is the highest it has ever been (despite the Internet or maybe because of it); traffic in our buildings is nearly half a million a year; and use of our technology never seems to slow down necessitating increased bandwidth for our communications and increased numbers of computer devices and workstations. Funding Stability: General Fund Burlingame City growth in the general fund revenues since 2000-2001 has been only 5%. Over that same 8 year period our General Fund expenses have grown by over 30%. Employee costs have skyrocketed in recent years, with salaries going up an average of 3% a year; but employee benefits have increased more than 7% a year. Coupled with the anticipated problems from the current state of the economy (October 2008 meltdown of credit markets), general fund stability does not look good. Long range revenue enhancements may be possible through an increase in Transit Occupancy Tax, or perhaps the passage of a Storm Drain Initiative, so that the city does not have to pay for these very expensive repairs from general fund income. However, these measures are likely to help us "hold our finger in the dike" but may not be viable for a secure future. Funding Stability: Private Donors There is some good news. As Director, my role is to make the best use of the funds we have and the funds we can attract. Establishing the Burlingame Library Foundation in 1994 has led to a tremendous growth in private funding for the Library. Currently, we are the recipients of over $ 100,000 a year in funding from the Foundation for collections, programs and services. Fifteen years ago this figure was closer to $ 15,000 from the Friends of the Library. There is no doubt that a coordinated effort on the part of citizen volunteers makes a big difference in fundraising. Survival of the Fittest In a recent City Department Head retreat, a number of initiatives were explored regarding the future of city services for the public. The recant bankruptcy of the City of Vallejo is a reminder that the bankruptcy of a city is indeed possible. All bets are off on what services survive in that kind of environment. Employee labor contracts are voided and City services hang in the balance. How can we survive as the "fittest"? Some issues that were explored in the retreat are below: 1) Explore different means of providing services (e.g. : contract, partnering, re- engineering existing practices) 2) Develop a sustainable compensation strategy, including retirements, health plans, etc. 2 3) Secure new revenues 4) Educated employees and the community regarding the compelling case for moving forward differently. While some of these areas are outside the control of the library, some are within our control: exploring new service models, securing new revenues, education of the staff and the community about the ways we can move forward differently. Initiatives to Move forward The Library exists to serve the community. There is no other reason for the organization to exist. Whether we are offering a best seller to an enthusiastic reader, or helping a student with homework, those are the needs the community asks us to fill. Public service is the most important part of our job. If we don't serve the public with the best customer service we can, then we have failed. That said, how can we deliver that "best customer service" in a way that we can afford as an organization with diminishing resources? That is the challenge before us. Alfred H. Escoffier City Librarian October 28, 2008 3 r Library Strategic Plan 2008 Brainstorming Library of the Future:2020 • Expectation of high service levels maintained • Patrons need to be trained to help themselves;the model being: ATM's; pumping your own gas • Maybe patrons cannot get full service by phone; maybe served by email or other device? • Self service of all kinds will be the norm • Next generation of users will not need so much help;they will be more attuned to self-service • May be less expectation for personalized service as we see it today • Where do we stand with current use at 6%increase over last year;where do other libraries stand?Can we expect service/traffic to continue to increase? • We will have a different physical layout of our buildings to accommodate new technologies and self service options • Have an Accounts Desk; an Information Desk(like Mountain View) • Periodical Bound magazines will be dropped or greatly reduced,freeing up the Periodical storage room for a computer lab • Will be fewer staff and less individualized service • Reference Room collection will be greatly reduced • Reference Room will become "something else" • Library will continue its public service uses as an OFFICE for patrons;there are very few public places that can offer this • Library will continue and increase use as a QUIET ZONE for patrons; there are very few public places that can offer this • Inviting Study area will increase: study tables, white boards,etc. • People will be eager to "use the space" and technologies offered • Create a computer room, laptop area, laptop lab setting • Offer wireless printing • People can do whatever they need to do with the resources offered: building,technologies, furnishings, etc. • Library as a place to "hang out" • Library spaces to focus on ACTIVITY, rather than collections • Quiet space: no cell phones, other distractions • Cafe: food and beverage will be available and acceptable • More retail product to sell: office supplies, etc. Pick up where Hallmark store closing left off; make a profit to plough back into services • Kinko's model or mini-store: fax, copy machines, supplies to assist office and student use • Movies delivered to home or office • Programs of interest to the community Library Strategic Plan 2008 SWOT Exercise STRENGTHS • Personal service • Great collection • Great facilities, buildings • Long public hours • More funding than most libraries • Programs for families and children very strong • History of Community support • History of strong service model • High community expectations WEAKNESSES • Because of good funding,we have not had to cut services • Because of good funding,we have not had to introduce major efficiencies • Physical layout of building is not flexible or easy to change to a new service model • 3 Floors are hard to manage • Locked into the community's high expectations for service • We have done things the same way for a long time • Longevity of staff • We add more activities than we should because we enjoy our success and want to continue it with new programs • It is difficult to drop one program in favor of another � 1 OPPORTUNITIES s • Young people like services for free • Netflix model: no fines, no due dates • Minimize individual transactions • Raise the bar of technology with a Technology Lab (Laptop lab) • Reach out to the user outside the library walls • Provide a different type of service model • Pay fines online without staff intervention • PC Station in Lobby: "Check your account; pay your fines here" • Going green • RFID Technology with PLAN • 98%self-check @ Cupertino, other libraries • Plan a visit to Cupertino, Mountain View, Millbrae to observe service models • Library used as office for public • Consider retail office supplies; capitalize on office type uses by selling supplies • Have roving staff,front door greeters • People use the library for technology(Wifi, Internet,word processing);why not capitalize on this use? THREATS • Loss of funding due to other city obligations: police, fire, salaries, benefits, etc. • Vallejo type meltdown: could be a backlash of public against the cost of city services in general • The library makes partnerships and contracts seamless for the City and the public; it's hard for anyone to see how we do it • Staff does not like to see change �-- 2 • We will need staff input to make changes in the processes �-' • With loss of hourly staff, we will have less flexibility in scheduling, particularly for evenings and weekends • May be issues with unions regarding work week, hours, etc. �-- 3 Library Strategic Plan 2008 Next Steps in the Planning Process 1. Create user tools that lead to self-service; example: bookmarks that Kathy does helps the public do reader's advisory tasks by themselves. Posted to the website they reach more users. 2. Make staff a part of the planning process 3. Make boards a part of the planning process 4. Alert City Hall to planning process 5. Staff like to be involved, so include them 6. Make it clear at the local level why reductions in service need to be made: educate the staff and the public 7. If layoffs are authorized and necessary, how do we make the organization work? 8. Involve staff in areas they enjoy; or areas in which they learn something new that they enjoy (e.g.: development of the website with interested staff) 9. Explore the use of a telephone auto-attendant to help answer initial calls from the public and siphon off calls that don't need staff intervention 10. Look at auto-attendant models: Millbrae, Foster City 11. Barry to explore auto-attendant costs, set up with vendor 12. Consider no phone service at busy times:Sunday afternoon, so that staff can focus on the in- person public I. f T i -� I 7 g - �, 1 DRAFT `— Burlingame Library Mission Statement November 5, 2008 #1 The Burlingame Public Library is the community's cultural and learning center, offering a place to experience the joy and wonder of reading , the wisdom of ideas, and the power of lifelong learning. Service from our facilities include programs, activities, and events to preserve the past, serve the present and shape the future; beyond our walls the Library provides access and links to the world of people and information. P,r * v #2 The Burlingame Public Library is a cultural and learning center for the community• [Slif which encourages the joy and wonder of reading, the wisdom of ideas, and the power of lifelong learning. Inside our walls, we provide programs, activities and events to help preserve the past, serve the present and shape the future. Beyond our walls we provide access and links to people and the world of information. #3 The Burlingame Public Library is a cultural and learning center for the community encouraging the joy and wonder of reading and the printed word, the wisdom of ideas, and the power of lifelong learning. Inside our walls, we offer programs, activities and events to enhance the user's experience; beyond our walls we provide links to people and information to preserve the past, serve the present and shape the future. S Strategic Plan Timeline 5 November, Draft Mission Statement completed, 2:30 PM 13 November, City Mid-Manager meeting, 9 AM (Budget issues announced) 18 November, Draft Library Budget reduction due to Department Heads, 9:30 AM 18 November, Library Board Meeting, Presentation of Draft Strategic Plan, Draft Mission statement 20 November,All Library Staff Meeting,9 am (Strategic Plan, Budget issues) 8 January, Draft Mission/Plan to Foundation, 5:30 PM January 2009, Draft Goals for new year using the new Strategic Plan 20 January 2009, Draft Mission/Plan to Trustees, 5:30 PM 24 January 2009, City Council Goals session (have Plan ready) Date tentative Looking at Alternative Library Service Models �-- September 25, 2008 Draft Notes Service Model #1: Emphasize self service; Reduce Public Desk staffing; Maintain most service hours. Goal of this Model: Reduce costs,but maintain a visible, professional service model; Continue to provide access to the building, materials and the website as much as possible within budget guidelines to maximize service to the public while reducing the costs to deliver those services. Single staff service desks Have a mix of staff at various levels and classifications available during single staffing times that can be called to assist: • Librarian, Library Assistant, Aide, and Page. • Aides and Pages could be called to come to the desk to help out when busy. Service Model Requirements • Cross train Aides and Pages to help check out at circulation desk; • Cross train reference staff to do simple check-out, holds, etc., at circulation desk; ti • Implement campaign to raise awareness and actual use of Self-Check (currently at 60%; set a goal of 70%, then 80%); • Emphasize renewals on self-check; not widely used currently Reference Desk Example: • Single staff reference desk from 10 AM- 3 PM; • Implement "Book a Librarian" for those who need more time; • Limit question-answering in this model, we cannot do custom 30 minute question-answering; • We are already single staffing evenings and it works. Circulation Division Example: • Single staff circulation in evenings to begin with using a Library Assistant, Library Assistant would not leave the desk; • Aide/Page could assist at closing with money count4required by City) • Lower Level Example: Do not staff desk; • Do not take Internet reservations; Let SAM takes care of use; would an IT Aide help us here to bring the cost down from using Barry/Jeff? 1 �-- Children's Division Example: • Maintain single staffing in Children's; • Need coverage for the age group and for the square feet to cover in the building. Changes to Library Phone System: • Implement a phone triage system like Millbrae or Foster City: • Have an automated phone attendant with the 4 most used options: o Hours, o Renewal, o Use website to renew or get more information, and o "Stay on the line" for further assistance • Take no phone questions from the public on Sundays; emphasis will be on in building use of materials, collections, staff expertise. Public Hours Reduction: • Drop Fridays evening hours, close at 5 PM. This costs more than it looks like as we have to use hourly staff for a minimum of 4 hours. • Keep other hours. Programming to Encourage Lifelong Learning, reading: • Keep basic, highly popular programs such as children's; • Look at getting the best bang for the buck for adult programs. • Don't do programs that won't draw at least 40 people. Reduce Book/Materials Budget: • Could get additional funds from Foundation; • Could reduce overall expenditures of material budget by a percentage • Look at staff time to catalog/process • Consider CLS for non-fiction collections at this time Reduce Hidden Labor Costs: • Reduce hidden costs of doing business; materials are 10% of the budget, labor is 90%. • How much labor cost is involved in buying a new edition, moving the old edition to circulating, etc.? Look at reducing this sort of movement of inventory from one classification to the other. • Delete complex standing order systems; buy materials as needed • Printed reference materials on the wane 2 Salient Features of Cost Reduction: �— • Hourly staff will be reduced; • Benefitted staff will work more desk hours; • Back of House staff will work more desk hours; • Public service hours will only be minimally reduced, as this is our "bread and butter." • Reductions in labor will be service model/need based, emphasizing skills and talents needed to carry out the library service program to the community. Library Service Examples in our Community: • Visit and review what is being done in Foster City and Millbrae Branches for a look at smaller libraries; • Look at Redwood City for what is being done in a larger library. • Cost out above recommendations +++++++++++++++++++++++++++++++++++++ Model Service #2: Combine Service Desks; Eliminate Reference Desk and Lower Level Desk; Have a combined Circulation/Reference Desk (just "Service Desk"??), and Children's Desk. Options for this Model need further discussion +++++++++++++++++++++++++++++++++++ Next Steps: Model #1 Will be developed with cost figures to compute savings and look at scheduling implications. Al will work on cost implications with managers individually. We will then meet again to discuss. Al will bring more information from City Manager. Goal will be to meet the 5% savings and perhaps the 10% savings required. Further reductions will likely require a move to as yet undeveloped Service Model #2. Further Discussion with Managers: Model discussion is confidential for now, but managers will be thinking of further refinements. The City Manager will be offering more recommendations and guidance in October meetings. 3 3 4 5 6 7 8 9 {G $0 0.00SUBTOTAL0.00 0.00 Krvr�,r , Library Tier 4 Tier,5 Item Title Description Impact Statement Acct Total FTE Reductions No. Savings F PPT PTS 1 Close Main Library Friday Evenings Reduce public hours by 2 per week at Main Layoff 800 hours of part time staff;two less 67500 $24,808 0.38 Library service hours at main per week 2 Add Service Desk Hours to Frr:from 25-30 hours 2 F/T staff move from 25-30 hours on service Lay off 500 hours of part time staff 67500 $13,500 0.25 per week desk;move to single staffing;more queueing 3 Reduce Librarian Staff by total of 30 hours per PPT Librarians are reduced from 30 to 25 hours Layoff 1,560 hours of part time staff 67500 $51,602 0.75 week per week;reduced marketing,programming 4 Close Easton Branch all day on Fridays Current open hours are 3 hours on Friday from 2 Layoff 450 hours of part time staff 67500 $10,659 0.22 PM-5 PM;this would close library on Friday. 5 Cut Operating Budget:supplies,maintenance of Eliminates all binding;linits supplies;eliminates Will lead to drastic reduction in periodical 67500 $15,444 0.30 equipment,etc. all training budget collection backruns;also drops microfilm 6 Drop Interlibrary Loan Services Borrowing and Lending for the public to libraries Layoff 450 hours of part time staff 67500 $12,388 0.22 outside of PLS would cease 7 Reduce Book Budget by$37,684 or 20% Reduces additions to collection by 1,500 titles Book budget continues a downward spiral;will 67500 $37684 0.00 now be$148K;was$248K in 2002 8 Reduce cataloging by 20%or 10 hours Cataloger moves to Reference service desk, Layoff 400 hours of part time staff 67500 $14,284 0.20 displacing part time staff 9 Close Extra days around Holiday closures Holiday closures would go from one day to 3-4 Layoff 423 hours of part time staff 67500 $11,631 0.20 days;limiting access to facilties/materials 10 Book Budget Reduced by another$38,000 or Reduces purchasing by a total of 3,000 with this Boo budget continues downward spiril;will now be 67500 $38,000 0.00 20% reduction $110K;was$ 248K in 2002 11 Close main library at 8 PM instead of 9 PM, Alter library schedule to close 4 additional hours 4 fewer hours for library use,circulation,study 67500 $46,984 0.00 Monday-Thursday 12 Eliminate one Ppermanent Part time position Would further reduce public service staff Layoff 1,560 hours of part time staff;reduce 67500 $61,304 0.00 programs for children 13 Elimate one Full Time postion Would further reduce public service staff Layoff 2,080 hours of full time staff;eliminate all 67500 $89,105 0.00 programming,events,etc. 14 0.20 15 1.00 16 17 SILICONcommunity ■ VA L L E Y I foundation %fxv+n(,,un.u.+rrn air[)".%rn a area 4r o(INT11% •5e�16 San r. x�r S a Bruro:Mr1 ar n •Ifiurl:n}¢nrYYz San ateo• Imn C, alo Allo Ball V1 on H. • Pah A14r� h111»ta� •Mountain View Silicon Valley Community Foundation to,Ah.•Sunny"a" Sarva Clara••San �., M+grPkr � •C.rrnlrlx•U 1!� 1� •(r!f(id[�YU •A*,)tpn Mil: Nimintain View, California 94040 • •C lrcn, tcl: 650.450.5400 fax: 650.450.5401 r' A. Silicon • Foundationwww.siliconvalleycf.org Investment Briefing Mike Miller, Colonial Consulting November 11 , 2008 Silicon Valley Community Foundation www.siliconvalleycf.org SILICON I Community VALLEY foundation W&VAC t"MA UM SWU C1 AM CrAWMI ■ ■ Agenda • Role of Colonial Consulting • Pool Returns • Investment Philosophy • Market Conditions www.siliconvalleycf.org SILICON I community VA L L E Y foundation W%%VC LW MUMAND UWA CA"GMM182 ■ -,�COLONIAL Who is Colonial Consulting? Representative Client List: Location: New York, NY • Vermont Community Foundation Founded: 1980 • Council on Foundations Employees: 33 • Philadelphia Foundation Ownership: 100% employee • Medical College of Wisconsin Assets: $24 billion • University of Miami Clients: 91 total • Milwaukee Foundation 27 community foundations . Virginia Museum of Fine Arts • Minneapolis Foundation www.siliconvalieycf.org • Ak Performance Ending 9/30/08 Calendar Latest Latest Latest Latest Net Of Investment Management Fees YTD 1 Year 3 Years 5 Years 10 Years Lon Term Growth Pool -13.9% -14.5% 2.6% 7.0% 5.4% Social Impact Pool -15.601b -14.4010 0.601b 3.401b Balanced Pool -10.601b -10.2% 1.701b 4.401b Short Term Pool 0.20/a 2.901b 3.801b 3.801b Ca ital Preservation Pool 2.301b 3.501b 4.401b 3.501b 3.8% • a Morningstar Moderate Allocation -15.4% -16.6% 0.4% 4.3% 3.7%-- 0 0 0 SILICON I community VALLEY foundation SARM0 sw unre)AND UWA amu COWUH . ■ The Keys to Investment Success • Consistent Strategy • World Class Investment Managers • Rigorous Monitoring • Effective Investment Options www.siliconvalleycf.org SILICON I tommutifty VALLEY foundation IWWAICSM WIIIN}ANY UWA[LIRA MAW= 0 Issue # 1 — Use of a Consistent Strategy • Establish a Strategic Asset Allocation Which is Expected to Achieve Each Pool's Return Objectives • No Attempt Made to Market Time or Change Strategy Based on Current Conditions or Near Term Outlook • Diversify Portfolio by Asset Class and Strategy — Increases the Likelihood of Achieving Return Objectives Under Different Economic/Market Conditions www.siliconvalleycf.org SILICON I community ■ VALLEY foundation WMAC sw wnrr)MO swu atia MU423 ■ Issue # 2 — Effective Use of World Class Managers • Changes are infrequent and typically relate to organizational/strategy shifts • Due diligence is the same for managers doing well and those who are not • Portfolio is diversified by style to control relative risk but uses truly "active" managers • Results will not always exceed benchmarks www.siliconvalleycf.org SILICON I community VALLEY foundation ew.rc sw runwtmm suvrcrueakwrus Issue # 3 — Proper Monitoring • Careful attention to market conditions/trends • Monthly performance reporting/analysis • Quarterly collection of holdings/risk exposures • Regular review of all manager communications along with frequent due diligence meetings In aggregate, the objective is to maintain a portfolio consisting of attractively priced assets and to avoid decisions which are primarily reactive to performance results. www.siliconvalleycf.org SILICON I community VALLEY foundation MV#.C1wM4 )AmUWAC1AMC(XW= ■ ■ Issue #4 — Providing Effective Investment Options • The Community Foundation has five distinct investment pools which differ based on risk and return • Donors can use one or more pools based on their charitable objectives • Within each pool, the Keys to Investment Success will be applied www.siliconvalleycf.org SILICON I community VALLEY ( foundation 0 Investment Pools Pool Name Time Horizon Asset Mix Capital Preservation < 1 Year 100% Money Market Short-Term 1 — 3 Years 100% Fixed Income Balanced 3 — 7 Years 50% Equity, 50% Fixed Income With up to 10% Alternatives Long-Term Growth > 7 Years 75% Equity / 25% Fixed Income With up to 25% Alternatives Social Impact > 7 Years 70% Equity / 30% Fixed Income www.siliconvalleycf.org SILICON I Community VALLEY foundation ■ Each Pool Has A Different Risk/Return Profile 12.0% 10.0% tow C Tvm&swih i 8.0% POW I POW c 6.0% Q � 'v : #TSM P 4.0% .o Re"Oftow POO a 2.0% 0.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Projected Standard Deviation of Return (i.e. Risk) www.siliconvalleycf.org SILICON I Community VALLEY foundation !/lN X 14N NAIM(f AND UWA d ARA CNAWNS ■ Changes to Long-Term Growth Asset Mix 100% 90% ■ Real Assets 80% ■ Private Equity ❑ Direct Real Estate 70% ■ Long/Short Equity Hedge Funds 60 /o ° ■Absolute Return Hedge Funds o Cash 50% ❑ Global Bonds 40% ■ US Aggregate Bonds c ■ Non-US Emerging Equity 30% ■ Non-US Developed Equity 20% o US Small Cap Equity w US Mid Cap Equity 10% ■ US Large Cap Equity 0% Projected Expense Ratio: 0.69% Previous Strategy Current Strategy www.siliconvalleycf.org SILICON I community ■ VALLEY foundation ftTV^ 2"YAiR)ANSSAMA0A"C0Wf= ■ 0 Changes to Social Impact Asset Mix 100% 90% 80% - 70% - 0 0%70%0 60% ■ US Aggregate Bonds 50% ■ Non-US Developed Equity ❑ US Small Cap Equity NIC 40% ■ US Large Cap Equity 0 30% - 20% - 10% _ 0%20%10% 0% Projected Expense Ratio: 0.79% Previous Strategy Current Strategy www.siliconvalleycf.org SILICON I Community VA L L E Y foundation SI WACSWAGiN1AM)UWApARA0nUW= ■ Changes to Balanced Asset Mix 100% 90% 80% ■ Real Assets 70% ■Absolute Return Hedge Funds 0 ❑Cash 60% ❑Global Bonds 0 50% ■ US Aggregate Bonds d ■ Non-US Emerging Equity 40% ■Non-US Developed Equity ° ❑ US Small Cap Equity 30% ■ US Mid Cap Equity 20% ■ US Large Cap Equity 10% 0% Previous Strategy Current Strategy Projected Expense Ratio: 0.70% www.siliconvalleycf.org SILICON I community VALLEY foundation WVM C IM U400 AMD SAMA d ARA M WOOS ■ Changes to Short-Term Asset Mix 100% 90% 80% 70% 60% GGobal Bonds oShod Term Bonds 50% ■intemdiate Bonds 40% ■Aggregate Bonds 30% 20% 10% Projected Expense Ratio: 0.35% 0% Previous Strategy Current Strategy www.siliconvalleycf.org SILICON I community VALLEY foundation IMMMC S,W U4 ).4hM"WA CJARA CfX#aJU ■ ■ Why the Addition of Alternative Assets? • Improved Diversification — Pools can succeed under a wider array of market/economic conditions • Stronger Performance — Talented managers produce stronger returns when given greater latitude • Risk Control is Paramount — Investments are well diversified by strategy and manager and are the product of a highly selective process for choosing managers www.siliconvalleycf.org SILICON I cammunity VALLEY foundation WWAMC sw wnn mm s w A ares 0nUWUs ■ ■ Implemented by World Class Managers The following is a sample of the investment managers used by the community foundation: • Artisan Partners • Hall Capital • Cooke & Bieler • PIMCO • Colchester Global • Regiment Capital • Denham Capital • TIFF • Dimensional Fund • Tygh Capital Advisors • Vanguard • Forester Capital www.siliconvalleycf.org SILICON I community VALLEY foundation ■ Markets During the Credit Crisis • Liquidity Driven Selling — Spans public and private markets + a broad array of institutions. • Panic has created significant losses for virtually all investors • Time Horizon Arbitrage becoming more powerful www.siliconvalleycf.org SILICON I community VA L L E Y foundation ■ Losses Have Been Selectively Unprecedented Largest Drawdown Drawdown Asset Class 6/07-10/08 Prior to . 0 U5 Large Cap Equities - 36 . 1% -44. 7% Int'I Developed Mkts Equities -46 . 3% -47 . 5% Emerging Markets Equities - 56 . 2% - 56 . 0% Asset Backed Loans - 21 . 3% -0 . 4% Bank Loans* - 17 . 8% -4 . 4% Distressed Loans* - 29 . 9% -29 . 9% High Yield Bonds - 26 . 4% - 11 . 3% Municipal Bonds - 5 . 7% -8 . 3% Colonial Estimate www.siliconvalieycf.org SILICONcommunity VALLEY ( foundation Leverage/Complexity is One Culprit Notional Value of Outstanding Derivative Contracts June 30, 1998 to December 31, 2007 Source; Bank of International Settlements 800000 _ 700000 600000 _. 500000 400000 m vs 300000 200000 100000 O C" C` i ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti www.siliconvalleycf.org SILICON I community VALLEY foundation SFlIM4GSW MAIM AIdS SAMG gARA CdMIY3 ■ ■ Leading to Market Volatility Russell 3000 Index Volatility - 260 Day Moving Average December 31, 1979 to November 7, 2008 40 -- ------._.-- ------- -------. ..------- - ----- --- 35 35 ------ --- -- - - _. - - -- -—- .._ - --- ---- 30 ---- - 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VA L L E Y foundation W&VAW I""A L%V"WMaARAOCMAVTAt ■ ■ Implications of Current Conditions • Low prices are usually good news for long-term investors • Function of prospective economic/business conditions and liquidity driven selling. • High volatility leads to unusually large opportunities and risks. • Recovery period could be lengthy so patience, thorough forward- looking analysis and risk control are critical. www.siliconvalleycf.org SILICON I COmmunity ■ VALLEY foundation srnwuc sw�unin.um wvu a�u oanvius ■ Historic Perspective S&P 500 Price/Earnings Ratio vs. Subsequent 10 Year Returns 1945 to 1998 15.0 as 10.0 Q Lt ` ♦ A 0.0 A cc l A i . , A '«- -5.0 c A cw -10.0 a� m -15.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 Subsequent 10 Year Annualized Return - From Average www.siliconvalleycf.org