HomeMy WebLinkAbout05282015 PRB MinutesI
DRAFT
Sebastian Police Pension Board Minutes
May 28,2015 10:00 a.m.
Sebastian City Council Chambers
TYPE OF MEETING: Special
ATTENDEES: Board Members:
Steve Marcinik, Chair
Robert Zomok, Secretary
Bruce Hoffman
Ken Killgore
Richard Snell
EXCUSED:
CONSULTANTS:
SUBJECT
CALL TO ORDER
10:07 a.m. There being a quorum present, Steve Marcinik, called the
meeting to order.
Public Comment:
None
SUBJECT
APPROVAL OF MINUTES
10:05 a.m. Richard Snell motioned the minutes of the March 17, 2015
Board Meeting be approved. Motioned seconded by Bruce Hoffman and
passed unanimously.
SUBJECT
OLD BUSINESS
2
None
SUBJECT
NEW BUSINESS
Approval of Invoices:
Morgan Stanley $3,375.00
Salem Trust $2,275.00
Christiansen & Dehner $2,985.79
Bob Zomok motioned to approve payment of the above invoices. Bruce
Hoffman seconded the motion and it passed unanimously.
Review of 2014 Annual State Report
Some minor errors were found during a local review of the data as well
as a few found during the State Review. All errors have been corrected
and the report accepted by the State.
Review of Current Investment Policy/Discussion of possible changes to
Investment Policy Statement (IPS)
During the last quarterly meeting, the Board came to the conclusion
that we needed to discuss potential changes to the Plan since the time to
make some of the anticipated changes is when the Plan is financially
sound.
Two primary areas of consideration are lowering the investment return
target to 7.6% and re -writing the Investment Policy Statement. This
meeting was to develop a proposed plan of action to revise the IPS.
We have proposed revisions submitted by Scott Owens in March 2013.
The review of that document was postponed until the revised Ordinance
was passed by Sebastian City Council. The Ordinance was accepted.
Scott Owens has indicated that Greystone Company can do more than
continue in their current oversight role. Grant McMurry has indicated
that his company, ICC, has been sold to Highland Capital Management.
Our assumption is they may be able to better serve our Board if they
have direction from us.
After a significant discussion, we came to the conclusion that our first
priority is to revise the current IPS.
Once this is accomplished, we can charge ICC/Highland Management
with an expectation of improved performance vis-a-vis the target
investment return of 7.6%. Heretofore, they have consistently fallen
below our targets as demonstrated by the reports from Scott Owens.
We can also determine the Asset Allocation Strategy we want to use
moving forward.
The Board then determined the following actions:
Have a separate, special meeting with Scott Owens and the Board
to revise the IPS.
Once revised, determine our Asset Allocation Strategy.
At the next quarterly meeting, ask Grant if Highland Capital can
do both Value and Growth management.
Obtain a copy of the contract we have now with ICC/Highland
Capital. (Since this change is recent, we should entertain an
updated contract.)
As a side issue, the Board is unaware of any contractual
relationship with Christiansen & Dehner. We need to ask Lee
Dehner about this item.
Ken Killgore distributed copies of the Request For Proposal responses.
At the last quarterly meeting, the Board directed Lee Dehner to draft
and issue the RFP. The RFP was initiated via Salem Trust receiving a
"qualified" financial report. Scott Owens is doing "due diligence"
relative to this matter as well.
Board Members are to review the RFP for discussion at our June
meeting.
4
SUBJECT
ADJOURNMENT
11:45 AM Having no further business for discussion, Chairman Steve
Marcinik adjourned the meeting.
Next regularly scheduled meeting is June 16, 2015, at 10:00 a.m.
in the Sebastian City Council Chambers.
Respectfully submitted,
nob Gomok, Secretary