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.
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Marcinik
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