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HomeMy WebLinkAbout03172015 PRB MinutesDRAFT Sebastian Police Pension Board Minutes March 17, 2015, 10:00 a.m. Sebastian City Council Chambers TYPE OF MEETING: Regular ATTENDEES: Board Members: Steve Marcinik, Chair Robert Zomok, Secretary Richard Snell Bruce Hoffman Ken Killgore, Administrative Services Director, City of Sebastian EXCUSED: CONSULTANTS: Grant McMurry, ICC Capital Mgmt. (Portfolio Manager) H. Lee Dehner, Attorney, Scott Owens (Morgan/Stanley) Doug Lozen, Foster & Foster SUBJECT CALL TO ORDER 10:05 a.m. There being a quorum present, Steve Marcinik, called the meeting to order. SUBJECT APPROVAL OF MINUTES 9:50 a.m. Bob Zomok motioned the minutes of the Regular Meeting on December 16, 2014 Board Meeting be approved. Motioned seconded by Bruce Hoffman and passed unanimously without change. Public Comment None Draft Minutes 3/17/2015 2 None SUBJECT OLD BUSINESS SUBJECT INVOICES Approval of Invoices Morgan Stanley $3,375.00 Salem Trust - $1,490.00 Foster & Foster - $13,076.00 Christiansen & Dehner — $1,902.70 Bob Zomok moved to direct payment of all invoices. Bruce Hoffman seconded the motion and it passed unanimously. SUBJECT NEW BUSINESS Review of Actuarial Valuation as of 10/1/2014 — Doug Lozen The cost of the Plan has dropped due to investment increases, good turnover, and new hires subject to the reduced contribution rate. A discussion ensued focusing on the possibility of reducing the cost to the City to a lesser amount (assuming an investment income target of 7.6% as opposed to using the current 7.75%. Doug Lozen will prepare a report showing the effect of the reduction. The Board is looking to "straight line" the anticipated funding needs. Bruce Hoffman moved to accept the Valuation as presented. The motion was seconded by Bob Zomok and passed unanimously. The Board directed Doug to prepare the above mention report. Bruce Hoffman moved to have the Expected Rate of Return Report prepared and sent to the State as is required once the Valuation is reviewed and accepted. Steve Marcinik seconded the motion and it passed unanimously. Draft Minutes 3/17/2015 3 Review of Investment Portfolio and Update on Asset Allocation Strategy Scott Owens presented the quarterly results. The Fund continues to be in solid financial condition in spite of the volatile market during the last quarter. The volatility was due in large measure to the "nervousness" of the stock market produced by the crisis in the Ukraine, the economic slowdown in Europe, ISIS crisis, and the dramatic reduction in oil prices. Scott also presented four possible approaches to Asset Allocation. The Board is to discuss both the proposed Investment Policy Statement and Asset Allocation. Fund Review Grant McMurry ICC Capital Management Grant supported the report given by Scott in terms of the Fund activity over the last quarter. In addition, he informed the Board that ICC Management Company had been acquired by Highland Capital whose parent company is Argent Capital. The acquisition will be effective April 1, 2015. Bob Zomok moved to have Chairperson Steve Marcinik sign the Acknowledgement and Consent Statement presented by Grant. This document reflects the fact that Grant did inform the Board of the acquisition. Bruce Hoffman seconded the motion and it passed unanimously. Salem Trust Ancillary to the discussion of the Fund performance, Lee Dehner stated that Salem Trust has received a qualified financial audit. Scott Owens has begun the due diligence investigation into this matter. As a matter of prudence, Bruce Hoffman moved to have Lee Dehner prepare and distribute a Request for Proposal to replace Salem Trust. Ken Killgore seconded the motion and it passed unanimously. Draft Minutes 3/17/2015 C! Legal/Legislative Update Lee Dehner Report on Adoption of Ordinance The Ordinance was passed by Sebastian City Council on February 25, 2015. Lee is preparing an updated Summary Plan Description based on and reflecting the changes in the recently passed Ordinance. Recommendations Regarding Ordinance 0-15-01, Section 58-66, Forfeiture of Pensions and Florida Statutes Section 112.3173 Lee reviewed the requirements for a possible pension forfeiture case that may come before the Board. Richard Snell and Steve Marcinik are to send Lee a copy of the Internal Affairs Report currently in motion on the former police officer involved. The former officer's personnel file is also to be sent to Lee. Lee will then determine if there is probable cause to convene a forfeiture hearing. The Board can conduct the hearing or request a Hearing Officer from the State. The Sebastian City Attorney may also be involved by preparing a case in support of the forfeiture. Lee updated the Board on the need to file the report required by SB 534. The Actuary will prepare the report; however, the State has yet to determine the format for the report. Lee is also monitoring SB 242, SB 224, and SB 172. SUBJECT ACTION ITEMS Ken Killgore is to prepare and send the Expected Rate of Return Report to the State. Lee Dehner is to prepare an updated Summary Plan Description. Doug Lozen is to prepare the request cost study (at a charge to the Plan not to exceed $1,250.00) Lee Dehner is to prepare and distribute the RFP to replace Salem Trust. Draft Minutes 3/17/2015 SUBJECT ADJOURNMENT 1:50 PM Having no further business for discussion, Chairman Steve Marcinik adjourned the meeting. Next regularly scheduled meeting is June 16, 2015, at 10:00 AM, in the Sebastian City Council Chambers. Respectfully submitted, Bob Zomok, Secretary Draft Minutes 3/17/2015