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HomeMy WebLinkAbout06-28-17 MinutesCITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF SPECIAL MEETING JUNE 28, 2017 Call to Order— Chairman Steve Marcinik called the meeting to order at 10:03 am. Present Board Members Steve Marcinik Rich Snell Ken Killgore Also Present Ken McDonough, PBA Representative Cindy Watson, Human Resources Director Susan Mann, Recording Consultant 2. Vote to Excuse Absent Board Member(s) Officer Marcinik stated that there are no Board Members to be excused, however there are two vacancies to be filled. Mr. Killgore responded that there are two candidates that will go before the City Council this evening for approval. 8. Public Comment — None Mr. Killgore stated that he has items that need to be added to the agenda. He explained, regarding the disability claim which deadline is very near, the attorney handling the case is requesting a 90 day extension. A motion to grant a 90 day extension was made by Officer Marcinik, seconded by Officer Snell and passed unanimously by voice vote. Mr. Killgore explained that at the last meeting a great deal of documents had to be signed to allow for the reorganization of the investments. He stated that there are still many documents that need signature to accomplish the diversification of the portfolio. He asked if the Board would authorize him to sign the necessary documents related to these changes. A motion to authorize Mr. Killgore to sign the documents necessary for the diversification of the portfolio was made by Officer Snell, seconded by Officer Marcinik and passed unanimously by voice vote. POLICE PENSION BOARD MINUTES OF SPECIAL MEETING JUNE 28, 2017 Page 2 6. Old Business A: Consider Ordinance for DROP, Cola and Buybacks Ken Killgore, Board Member Mr. Killgore stated that included in the agenda package is the draft of the Ordinance amending the Police Officer's Retirement System Ordinance. He offered to answer any questions. Officer Snell asked for clarification of Section (5)(c)(1) regarding the establishment of DROP account. He stated that in various places in the ordinance the DROP account is referred to as a separate account and a notional account. Officer Marcinik explained that the money is all in one account, not separate accounts for each individual. Officer Snell expressed concern about Section (10) Benefits Not Guaranteed by stating that it reads as though each account is separate. He apologized for bringing these questions to the Pension Board, but the meeting he planned with the representative of the Union did not take place. Mr. Killgore explained that the investments are all in one account, however the City keeps a ledger account for each officer which is called a notional account. Officer Snell stressed that he and others who read the Ordinance have concern about the fact the DROP account is referred to one place as a notional account and then in another place a separate asset account; the wording is very confusing. Officer Ken McDonough, PBA Representative, apologized for the confusion stating that he had just seen the final draft Ordinance on Monday. He agreed that there are some areas that require revision. As a result of an in-depth discussion regarding the frustration of the delays and wording it was agreed that the Ordinance requires review and revision by the attorney and a special meeting set for Board review and approval. Mr. Killgore suggested he draft a letter to Mr. Boettjer stating that at the Pension Board Meeting issues and changes were brought up which he will take to the Pension Board Attorney for revision of the draft Ordinance. There was an detailed discussion about which investment companies would agree to handle individual investment accounts. Mr. Killgore responded that he will do research to determine which of the established investment firms would agree to handle the individual accounts. Officer MacKenna stated that he will provide Mr. Killgore with the information he has regarding firms who would accept the individual accounts. POLICE PENSION BOARD MINUTES OF SPECIAL MEETING JUNE 28, 2017 Page 3 A motion to authorize himself to draft a letter to the Pension attorney to have an optional DROP account added and clarify the term notional account in the draft Ordinance; when the revised draft Ordinance is provided to bring it back to the Board for review and approval was made by Mr. Killgore, seconded by Officer Marcinik and passed unanimously by voice vote. Officer Marcinik noted that the Old Business is being postponed until a later date. 7. New Business A. Legal Updates — None B. Board Member Reports and Comments — None C. Next Quarterly Meeting: September 19, 2017 at 10:00 a.m. 12. Admiourn Chairman Marcinik called for any further business, hearing none he adjourned" meeting at 10:42 am. 0 Marcinik s/m