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HomeMy WebLinkAbout09-19-17 MinutesCITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR QUARTERLY MEETING SEPTEMBER 19, 2017 1. Call to Order — Chairman Steve Marcinik called the meeting to order at 10:00 am. Present Board Members Steve Marcinik Rich Snell Paul Williamson Christine Vicars Ken Killgore Also Present Charlie Mulfinger, Greystone Consulting, Consultant Scott Owens, Greystone Consulting, Consultant Grant McMurray, Highland Capital Management, Consultant Mindy Thompson, Salem Trust, Consultant Lee Dehner, Christiansen & Dehner, Attorney Cindy Watson, Human Resources Director Susan Mann, Recording Consultant 2. Vote to Excuse Absent Board Member(s) — None 3. Public Comment— None 4. Approval of minutes A. Regular Meeting June 20, 2017 B. Special Meeting June 28, 2017 C. Special Meeting of July 20, 2017 A motion to approve the June 20, 2017, June 28, 2017 and July 20, 2017 minutes as presented was made by Officer Marcinik, seconded by Officer Snell and passed unanimously by voice vote. 5. Old Business A: Approval of Payments a. Christiansen & Dehner (June) $ 3,834.90 b. Foster & Foster $ 5.120.00 c. Christiansen & Dehner (July) $ 599.82 d. Foster & Foster $ 1,000.00 e. Salem Trust $ 2,640.00 Officer Marcinik read the Approval of Payments list for the record. Mr. Kilgore noted that there was a large invoice from Foster & Foster. A motion to accept the Approval of Payments was made by Officer Snell, seconded by Officer Marcinik and passed unanimously by voice vote. POLICE PENSION BOARD MINUTES OF REGULAR MEETING SEPTEMBER 19, 2017 Page 2 B. Report on Ordinance for DROP, Cola and Buybacks Mr. Killgore reported that the Ordinance had been adopted by the City Council. There was a detailed discussion concerning distribution of ballots for election to the Board and the procedure to establish terms. Mr. Dehner stated that the way to stager the terms would be for one member to step down prior to the end of their term and hold an election. That would make the new term staggered from the other term. It was agreed that ballots would be sent to all active members of the plan, not to retirees. C. Review of Annual Calendar of Board Activities Mr. Killgore explained that the Calendar is updated quarterly. He stated no action is required. D. Report on State Required Website Disclosures Mr. Killgore reported that he had addressed the required Website Disclosures. Officer Marcinik stated that there is an additional disclosure that will be addressed later. 7. New Business A. Review of Expenses and Approval of 2018 Annual Budget. Mr. Killgore stated that the Budget document is included in the Agenda Package. He reviewed the Budget in detail. Mr. Dehner stated that a final report needs to be generated after all the expenses are posted. A motion to approve the budget was made by Officer Snell, seconded by Officer Marcinik and passed unanimously by voice vote. B. Report from Investment Manager Transitions Ms. Johnson, Salem Trust, reported that the new managers and accounts are in place and the transition went smoothly. She responded to Mr. Killgore's comment that the statements are much larger than previously by stating that there are more managers and more accounts which generate more activity. She stated that although there are statements for each account there is one consolidated statement which may be more helpful. She offered to make adjustments to the format if that would be helpful. She stated that the fee schedule will not require any adjustment at this time even with the increase in managers and accounts. She explained that the only change to the fee is related to Class Action Suits which Salem has absorbed for their clients, but now that charge will be passed on to the client. She concluded by stating that Salem will continue to monitor the accounts and unless something develops to require a meeting she will return next September to make a presentation to the Board. POLICE PENSION BOARD MINUTES OF REGULAR MEETING SEPTEMBER 19, 2017 Page 3 C. Report from Investment Monitor Mr. Mulfinger, Morgan Stanley, reported that there was again in the 31d quarter. He stated that there will be some minor adjustments in the portfolio to bring it into line with the Investment Policy in place. Mr. Owens reported that the overall performance of the market was good during the 31d quarter. He provided details on the various indexes, unemployment rate, income levels, etc. He explained that earnings are up and provided a detailed explanation of how this impacts the market. He reviewed the Quarterly Performance Summary in detail. He explained the composition of the portfolio, how it compares to investment policy and the rates of return both current and historical. There was a discussion on the selection of managers, associated fees, investment strategies and the decisions made by the Board regarding the approach to be followed. D. Report from Investment Manager Mr. McMurray, Highland Capital Management, provided details on his background, his firm and his involvement with the Pension Fund. He noted that his company manages primarily union pension funds. He provided information on his investment and reporting approach. He discussed various securities and their rates of return. E. Legal Updates a. Report on Disability Cases b. Status of Summary Plan Descriptions c. Proposed Meeting Dates for 2018 Mr. Dehner provided information on legislative changes. He noted the one that applies to the City is the posting of a notice on the door in which the majority of pension business is conducted identifying it as the location where pension business is conducted and to identify the records management liaison and how they can be contacted. He stated that this information must be posted on the website. It was agreed that Council Chambers is the location and the notice would be posted on the bulletin board in the lobby and would be placed on the website. Mr. Dehner stated that a change in the law which protects the identity of both current and past police officers is being complied with by the City. He stated that the change in the law now applies to former firefighters. Mr. Dehner provided a brief update on Disability Cases. F. Board Member Reports and Comments — None C. Next Quarterly Meeting: December 12, 2017 12. Adiourn Chairman Marcinik called for any further business, hearing none he adjourned the meeting at 11:28 am. By: Steve Marcinik s/m