HomeMy WebLinkAbout03-21-17 MinutesII 7
Sebastian Police Pension Board Minutes
March 21, 2017,10:00 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
CONSULTANTS:
David Wheeler, Morgan Stanley, Grant McMurry, ICC Capital Mgmt.
(Portfolio Manager), H. Lee Dehner, Attorney, Doug Lozen, Actuary
GUEST: Cindy Watson, Human Resources Director, City of Sebastian
SUBJECT
CALL TO ORDER
Due to work scheduling conflicts, Steve Marcinik was unable to attend.
Richard Snell moved that Richard Snell Chair the meeting. Bob Zomok
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
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SUBJECT
APPROVAL OF MINUTES
10:05 a.m. Ken Killgore motioned the minutes of the Regular Meeting
on December 13, 2016. Motion was seconded by Richard Snell and
passed unanimously without change, for all meetings.
SUBJECT
OLD BUSINESS
A. Approval of Payments
a. Foster & Foster $119587.00
b. Christiansen & Dehner $ 29034.29
c. Highland Capital $ 44,745.46
d. ISU Jallad Insurance Services $ 3,021.05
e. Graystone Consulting $ 3,375.00
f. Christiansen & Delmer $ 29114.11
g. Salem Trust $19720.00
Richard Snell moved to approve the above expenditures. Bob
Zomok seconded the motion and it passed unanimously.
B. Year -to -Date Operating Expense for Year Ending
Richard Snell moved and Ken Killgore seconded a motion to
accept the Operating Expense report.
C. Discussion of Globe Tax Claims
(From 12/2016 meeting) This initiative may result in recouping a
small amount of funds from foreign investments. Lee Delmer
reminded the Board that this is usually a long process. Scott
Owens will Follow up.
David Wheeler and/or Scott Owens will follow up on this item. A
representative from Global will attend the June 2017 meeting.
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D. Review of Annual Calendar of Board Activities
The review of the monthly items for each quarter will be a
standing agenda item under Old Business. This item was covered
in the 3/21/2017 meeting.
E. Provide Direction to the Attorney to Draft Ordinance Changes
Ken Killgore requested that a draft be prepared by Attorney
Delmer within the next thirty (30) days. The draft will be an
Agenda item for the June 2017 meeting and a copy will be sent to
the Police Bargaining Association (PBA). Richard Snell moved to
approve and Bob Zomok seconded the motion. It passed
unanimously.
F. Consideration of Agreement for Pension Administrative Assistant,
Including Exhibit A Calendar of Activities and Scope of Services
Final recommendations/changes were made. Richard Snell moved
to approve the document as amended and Bob Zomok seconded
the motion. It passed unanimously.
G. Consideration of Updated Operating Rules
(The draft of the updated Operating Rules prepared by Attorney
Delmer was reviewed paragraph -by -paragraph using this draft
and the one prepared by Ken Killgore.
Lee Delmer will prepare a final draft to be reviewed by the Board
at the next quarterly meeting. From the 12/2016 meeting)
Ken Killgore moved to approve the final draft as amended and
Richard Snell seconded the motion. It passed unanimously.
SUBJECT
NEW BUSINESS
A. Review of Actuarial Report
Doug Lozen reviewed the actuarial report. For this year, the
required payment from the City of Sebastian will be 12.3%. For
next year, the requirement will be 15.8%. Doug then detailed the
reasons for the increase (found on page 7 of the report). They
include the change dictated by the State requiring the use of their
mortality tables, moving from an expected rate of return of 7.6%
to 7.45%, Further details are located on pages 8 and 10 in the
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report. Richard Snell moved to accept the Actuarial Report. The
motion was seconded by Ken Killgore and passed unanimously.
B. Report from Investment Monitor.
David Wheeler provided an overview of the current economy and
then reviewed the detailed report. The Fund performed positively
for the last quarter and for calendar year 2016.
C. Report from Investment Manager
Grant McMurry reported that the Fund had an increase of 3.36%
for the last quarter of 2016 and a 9.81% increase for calendar
year 2016.
D. Approval of Expected Rate of Return
The Board reviewed the Plan Valuation and approved an expected
rate of return of 7.45% as of 10/1/2016. Ken Killgore moved and
Bob Zomok seconded the acceptance of the 7.45% rate of return
and submit it to the State. The motion passed unanimously.
E. Submission of Annual Report to the State
Richard Snell moved to approve the completion of the Annual
report and submission of the report to the State. Bob Zomok
seconded the motion and it was approved unanimously.
F. Request to Update the Summary Plan Description
The Board agreed to wait until the revised Ordinance is approved
by the Sebastian City Council and the update the SPD. This is an
agenda item for the September 2017 regular meeting.
G. Legal Updates
Attorney Delmer noted the current State Legislature has nothing
on its upcoming agenda that would affect Police Pension Plans.
SB 306 is a current statute that requires Trustees to vote on each
issue present to the Board except where an individual board
member might receive a benefit from the issue presented.
SB 332 requires Police Pension Boards to forecast expected rates
of return for thirty (30) years into the future. This is a bill held
over from the last session and is not expected to pass.
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H. Board Member Reports and Comments
Bob Zomok submitted his resignation from the Sebastian Police
Pension Board due to highly probable relocation. The Board
members thanked Bob for his many years of service and
contributions to the Sebastian Police Pension Board.
I. Next Quarterly Meeting: June 20, 2017
SUBJECT
ADJOURNMENT
12:20 PM. Having no further business for discussion, Richard Snell
adjourned the meeting.
Respectfully submitted,
Bob Zomok, Secretary
Sebastian Police Pension Board.
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