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HomeMy WebLinkAbout12-13-2016 MinutesDRAFT Sebastian Police Pension Board Minutes December 13, 2016,10:00 a.m. Sebastian City Council Chambers TYPE OF MEETING: Regularly Scheduled ATTENDEES: Board Members: Robert Zomok, Secretary Richard Snell Ken Killgore EXCUSED: Steve Marcinik, Chair RESIGNED: Bruce Hoffman (Ken Killgore notified the Board that Bruce Hoffman had submitted his resignation on or about Friday, December 4, 2016.) CONSULTANTS: Scott Owens and Charlie Mulfinger from Morgan Stanley, Grant McMurry, ICC Capital Mgmt. (Portfolio Manager), H. Lee Dehner, Attorney GUEST: Cindy Watson, Human Resources Director, City of Sebastian SUBJECT CALL TO ORDER Due to work scheduling conflicts, Steve Marcinik was unable to attend. Bob Zomok moved that Richard Snell Chair the meeting. Ken Killgore seconded the motion and it passed unanimously. 10:00 a.m. There being a quorum present, Richard Snell, called the meeting to order. SUBJECT PUBLIC COMMENT None Draft Minutes 12/13/2016 SUBJECT APPROVAL OF MINUTES 10:05 a.m. Ken Killgore motioned the minutes of the Regular Meeting on September 20, 2016, the minutes of the Initial Hearing Meeting of September 27, 2016, and the Special Meeting minutes of the September 27, 2016 Board be approved. Motion was seconded by Richard Snell and passed unanimously without change, for all meetings. SUBJECT OLD BUSINESS A. Approval of Payments a. Morgan Stanley $39375.00 b. Foster & Foster $ 744.00 c. Christiansen & Dehner $6,429.29 d. Salem Trust $1,250.00 Ken Killgore moved to approve the above expenditures. Bob Zomok seconded the motion and it passed unanimously. B. Actual Operating Expense for Year Ending 9/30/2016 Ken Killgore moved and Richard Snell seconded a motion to accept the Operating Expense report submitted by Bruce Hoffman. The motion passed unanimously. C. Discussion of Globe Tax Claims This initiative may result in recouping a small amount of funds from foreign investments. Lee Dehner reminded the Board that this is usually a long process. Scott Owens will Follow up. D. Review of Annual Calendar of Board Activities The Board reviewed the Annual Calendar of Board Activities prepared by Ken Killgore. Ken moved to accept the Calendar as presented. Richard Snell seconded the motion and it passed unanimously. The review of the monthly items for each quarter will be a standing agenda item under Old Business. Draft Minutes 12/13/2016 E. Consideration of Updated Operating Rules The draft of the updated Operating Rules prepared by Attorney Dehner was reviewed paragraph -by -paragraph using this draft and the one prepared by Ken Killgore. Lee Dehner will prepare a final draft to be reviewed by the Board at the next quarterly meeting. F. Consideration of Agreement for Pension Administrative Assistant, Including Exhibit A Calendar of Activities and Scope of Services Ken Killgore and Lee Dehner will review the draft prepared by Ken and present their recommendations at the next quarterly Board meeting. SUBJECT NEW BUSINESS A. Review of Actuarial Report Doug Lozen, Plan Actuary, was unable to attend this meeting; however, he had supplied the Board with a copy of the October 2015 Plan Valuation report. Doug will review the Valuation with the Board at the March 2017 quarterly meeting. B. Discussion of Asset Allocation and Investment Policy Charlie Mulfinger, Morgan Stanley representative, presented the analysis requested by the Board at our last meeting. The analysis was to show the results of using the "mix 3" asset allocation strategy in terms of potential outcomes using both risk and returns. The report also included Board requested variations in terms of combining Highlands with other managers and results of selecting other managers excluding Highlands. After extensive discussion, Ken Killgore moved to adopt the "mix 3" asset allocation strategy. Bob Zomok seconded the motion and it passed unanimously. As an aside, Bob emphasized that the Board still has final control over the selection of the manager for each of the "mix 3" categories. Bob Zomok then moved to accept the iteration of managers recommended by Morgan/Stanley and maintaining Highlands as one of the sector managers. Ken Killgore seconded the motion and it passed unanimously. Draft Minutes 12/13/2016 C. Fund Review Grant McMurry reviewed the status of the Fund noting the Fund had a positive gain during the past year. D. Approval of Expected Rate of Return The Board needs to review the Plan Valuation in order to approve an expected rate of return and submit it to the State. This will be an agenda item for the March 2017 quarterly meeting. E. Confirm Renewal of Liability Insurance Policy Ken Killgore noted that the policy had been renewed and the Board confirmed the renewal. F. Provide direction to Attorney to Draft Ordinance Changes This item issues from the meetings Ken Killgore and Cindy Watson have conducted over the past three (3) months with members of the Police Bargaining Unit. During negotiations in September 2016, these several items remained undefined with the understanding, through a Memorandum of Understanding, that a Committee would be formed to provide details for items as they were developed and defined. The funding for these items comes from funds "freed up" through a State reimbursement for improving benefits for our Police Officers. The next step is to have our actuaries develop an analysis (impact statement) showing the cost of each of the items. Once this is accomplished, the Board directed Attorney Dehner to prepare the necessary revisions to the Ordinance. Richard Snell moved to initiate the above actions. Bob Zomok seconded the motion and it passed unanimously. G. Legal Updates Attorney Delmer advised the Board that the Florida Legislature would be in session in March 2017. At the moment, there is no indication of legislative discussions/actions affecting pension plans. H. Board Member Reports and Comments None Draft Minutes 12/13/2016 I. Next Quarterly Meeting March 21, 2017 SUBJECT ADJOURNMENT 12:40 PM. Having no further business for discussion, Richard Snell adjourned the meeting. Respectfully submitted, Bob Zomok, Secretary Sebastian Police Pension Board. Draft Minutes 12/13/2016