HomeMy WebLinkAbout12-12-17 MinutesCITY OF SEBASTIAN
POLICE PENSION BOARD MEETING
DECEMBER 12, 2017
CITY HALL
1225 MAIN STREET
SEBASTIAN, FLORIDA 32958
IN ATTENDANCE:
RICH SNELL, CHAIRPERSON
JOHN (JASON) GILLETTE, BOARD MEMBER
PAUL WILLIAMSON, BOARD MEMBER
CHRISTINE VICARS, BOARD MEMBER
KENNETH W. KILLGORE, BOARD MEMBER
CYNTHIA WATSON, HR MANAGER
ALSO PRESENT:
BONNI SPATARA JENSEN, ESQUIRE
GRANT McMURRY, ICC CAPITAL MANAGEMENT
CHARLES H. MULFINGER, GRAYSTONE CONSULTING
SCOTT OWENS, GRAYSTONE CONSULTING
IN ATTENDANCE BY SPEAKERPHONE:
H. LEE DEHNER, ESQUIRE
VERO BEACH COURT REPORTERS
772-231-2231
2
1 AGENDA
2 CALL TO ORDER
3 (Whereupon, at 10:01 a.m. the meeting began.)
4 WELCOME TO NEW POLICE BOARD MEMBER JASON GILLETTE AND
5 CONGRATULATIONS TO RETURNING POLICE BOARD MEMBER
6 RICH SNELL VOTE TO EXCUSE ABSENT BOARD MEMBER(S)
7 CALL FOR NOMINATIONS FOR CHAIRMAN
8 CHAIRPERSON SNELL: Okay. I'm... in lieu of a
9 chairman not being reelected I'm going to call the meeting
to to order. And first thing, we're going to welcome new
11 police board member, Jason Gillette. Congratulations to
12 me for returning.
13 All right. Vote to excuse any absent board
14 members. We don't have any absent.
15 And then, the next call of business is to call for
16 a nomination for a chairman since Steve Marcinik did not get
17 reelected to the Board. So any nominations?
18 BOARD MEMBER KILLGORE: I would move that Rich
19 now will be chairperson.
20 CHAIRPERSON SNELL: Is there a second?
21 BOARD MEMBER WILLIAMSON: I second that.
22 BOARD MEMBER VICARS: I second.
23 CHAIRPERSON SNELL: All in favor? Aye.
24 (ALL MEMBERS ANSWERED AYE.)
25 APPROVAL OF MINUTES:
VERO BEACH COURT REPORTERS
772-231-2231
3
1 A. Regular Meeting September 19, 2017.
2 CHAIRPERSON SNELL: I guess I'll do it. Okay.
3 All right. So that's done. Okay. So we're going to do
4 for approval of minutes for the regular meeting of
5 September 19, 2017.
6 I will move to approve those minutes.
7 BOARD MEMBER KILLGORE: I would second that.
8 CHAIRPERSON SNELL: All in favor? Aye.
9 (ALL MEMBERS ANSWERED AYE.)
10 CHAIRPERSON SNELL: All against?
11 (NO RESPONSE.)
12 OLD BUSINESS
13 A. Approval of Payments:
14 a. Fiera Capital Inc. (July -September)
15 b. Center Coast Capital Advisors, LP (July -Sept)
16 c. Renaissance Investment Management (July -Sept)
17 d. Morgan Stanley Global Banking (July -September)
18 e. Christiansen & Dehner (September -October)
19 f. Municipal Code Corporation
20 g. Administrative Solutions
21 h. Travelers Insurance (Policy to November 1, 2018)
22 L Boston Partners (July -September)
23 j. Salem Trust (Quarter Ending June)
24 k. Salem Trust (Quarter Ending September)
25 I. Foster & Foster (Pending Reporting)
VERO BEACH COURT REPORTERS
772-231-2231
4
1 (Whereupon, Chairperson Snell asked if every one
2 had to be read out or as a whole.)
3 (Whereupon, Mr. Dehner answered they could be
4 read collectively and to pull out any that
5 members had a question on.)
6 BOARD MEMBER KILLGORE: Yeah. I would just
7 wanted to comment on a couple of 'um. We had... you know,
8 all the new players are additional investment managers so
9 I've got invoices from those entitles, plus, we had some
10 cost that we paid for out of city funds, I got reimbursed,
11 including the insurance policy so it is of note that we
12 did renew the police... the board member liability policy
13 for the next year.
14 MR. DEHNER: Okay. And that can all be
15 reimbursed with the exception of the amount of the premium
16 that is for labor recourse and trustees.
17 BOARD MEMBER KILLGORE: Yes. There was the
18 additional 100 -- the insurance company broke it out to be
19 $100 would be in the city's responsibility and not paid
20 out of the trust fund. So this is only the --
21 MR. DEHNER: Right.
22 BOARD MEMBER KILLGORE: -- it's only the amount
23 that was the basic policy.
24 MR. DEHNER: Yep. That sounds correct.
25 BOARD MEMBER KILLGORE: So other than that,
VERO BEACH COURT REPORTERS
772-231-2231
5
1 it... I think we should approve it.
2 CHAIRPERSON SNELL: Okay. I think everybody's
3 had a chance to review. I'm going to go ahead and make a
4 motion to approve Item A for the total payments that were
5 paid out to the various investment firms: Foster &
6 Foster, Salem Trust, Municipal Code Corporation,
7 Administrative Solutions, and Christiansen & Dehner,
8 Morgan Stanley, Resident (sic) Investment Management, and
9 Center Coast Capital Advisors.
to BOARD MEMBER KILLGORE: You need a motion?
11 CHAIRPERSON SNELL: Yeah, I motioned to approve.
12 BOARD MEMBER KILLGORE: Oh, okay. I would
13 second.
14 CHAIRPERSON SNELL: All in favor? Aye.
15 (ALL MEMBERS ANSWERED AYE.)
16 CHAIRPERSON SNELL: All against?
17 (NO RESPONSE.)
18 B. REVIEW OF ANNUAL CALENDAR OF BOARD ACTIVITIES
19 (Whereupon, Board Member Killgore recited the
20 annual calendar of board activities.)
21 C. REPORT ON LETTER FROM FLORIDA DIVISION OF
22 RETIREMENT
23 (Whereupon, Board Member Killgore stated that the
24 state wholly accepted the actuarial reports for
25 20141 '15, and '16 with no issues.)
VERO BEACH COURT REPORTERS
772-231-2231
t:
1 D. CONSIDERATION OF SUMMARY PLAN DESCRIPTION
2 (Whereupon, Mr. Dehner asked if there were any
3 questions or comments to make changes.)
4 (Whereupon, Chairperson Snell and Board Member
5 Killgore had none and no further response was
6 made from the remaining board members.)
7 MR. DEHNER: Okay. Very good. Now, it should
8 be approved by motion then.
9 BOARD MEMBER KILLGORE: I would move for
10 approval.
11 CHAIRPERSON SNELL: I'll second that. All in
12 favor? Aye.
13 (ALL MEMBERS ANSWERED AYE.)
14 CHAIRPERSON SNELL: All against?
15 (NO RESPONSE.)
16 NEW BUSINESS
17 A. REVIEW OF EXPENSES
18 (Whereupon, Board Member Killgore recited the
19 approved budget and Mr. Dehner gave instructions
20 on filing.)
21 MR. DEHNER: Ken, we should have two items under
22 that: One is the proposed budget for the fiscal year
23 ending September 30, '18 --
24 BOARD MEMBER KILLGORE: Uh-huh.
25 MR. DEHNER: -- which is not yet and needs to be
VERO BEACH COURT REPORTERS
772-231-2231
7
1 approved by the Board and if it wasn't done this year,
2 subsequently needs to be done and filed with the city and
3 the division before October 1st; the second document we
4 need is for the Board review is a review of the actual
5 expenses incurred through September 30, 2017 and then that
6 needs to be approved by the board and filed with the
7 division and the city.
8 BOARD MEMBER KILLGORE: Okay. Back in September
9 at September's meeting, Lee, we did approve the budget.
10 That's shown --
11 MR. DEHNER: Okay.
12 BOARD MEMBER KILLGORE: -- that's shown in the
13 first column of the report and --
14 MR. DEHNER: Okay.
i5 BOARD MEMBER KILLGORE: -- and this report also
16 shows the actual expenditures for last year, which I did
17 send an e-mail to the city council to inform them of what
18 our expenses were for that year. Is that sufficient?
19 MR. DEHNER: Yes. Yeah. Now, if you haven't
20 done it yet, it should be presented to the council and you
21 just said it was but also needs to be sent to the division
22 of retirement.
23 BOARD MEMBER KILLGORE: Okay. I'm not sure I
24 did that step but I will follow through on that.
25 MR. DEHNER: Okay.
VERO BEACH COURT REPORTERS
772-231-2231
I BOARD MEMBER KILLGORE: Should we have the board
2 then make a motion to approve the report subject to --
3 MR. DEHNER: Yes.
4 BOARD MEMBER KILLGORE: -- reporting to the city
5 council -- or division of retirement?
6 MR. DEHNER: Yeah. Just approve it and then you
7 can file it.
8 BOARD MEMBER KILLGORE: Okay. I move to approve
9 the report and have it filed with the division of
10 retirement.
11 CHAIRPERSON SNELL: I'll second that. All in
12 favor? Aye.
13 (ALL MEMBERS ANSWERED AYE.)
14 CHAIRPERSON SNELL: All against?
15 (NO RESPONSE.)
16 B. REPORT FROM INVESTMENT MONITOR
17 (Whereupon, Mr. Mulfinger went over his printed
18 report given to all board members related to the
19 account and managers.)
20 (Whereupon, Mr. Owens went over his printed
21 report given to all board members related to the
22 economy and earnings.)
23 (Whereupon, Mr. Mulfinger went over the
24 performance of the portfolio and individual
25 managers.)
VERO BEACH COURT REPORTERS
772-231-2231
W
1 (Whereupon, Mr. McMurry added that he was still
2 awaiting approval in reference to asset
3 allocation as the custodian has not released them
4 as of yet.)
5 BOARD MEMBER KILLGORE: Yeah. I had, I had a
6 note to bring that up for a decision by the board.
7 (Whereupon, Mr. Mulfinger continued his
8 presentation.)
9 (Whereupon, Board Member Williamson asked
10 questions concerning the type of real estate the
11 board is invested in.)
12 (Whereupon, Mr. Mulfinger answered the questions
13 asked concerning the investment portfolio.)
14 C. REPORT FROM INVESTMENT MANAGER
i5 (Whereupon, Mr. McMurry went through his history
16 for the new board members and then directed
17 attention to and presented his report submitted
1e to all board members.)
19 (Whereupon, Board Member Killgore asked about
20 Steven Stack wanting to split the money within
21 large -cap growth and core value.)
22 MR. McMURRY: Uh-huh. And that's what we agreed
23 to last time.
24 MS. JENSEN: So you wanted to open another
25 account up?
VERO BEACH COURT REPORTERS
772-231-2231
1 MR. McMURRY: It's been open but they wouldn't
2 let us make the transfer. The authority has to come from
3 the board according to -- We fought with them.
4 BOARD MEMBER KILLGORE: They thought it was
5 acted on at the last meeting and I don't know if --
6 MR. McMURRY: It was.
7 BOARD MEMBER KILLGORE: There was discussion
8 from the --
9 MR. McMURRY: But they said they need a letter
to
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
from you guys.
BOARD MEMBER KILLGORE: Well, it didn't get in
the minutes so I don't recall the discussion so I wasn't
comfortable in making the transfer.
MR. McMURRY: Gotcha. Okay. Okay. Okay.
BOARD MEMBER KILLGORE: So I think the board
members need to understood what we're doing here and say
it's okay to do this.
(Whereupon, further discussion of this matter was
had by the board.)
CHAIRPERSON SNELL: Do we need to do a motion on
it or...
BOARD MEMBER KILLGORE: Probably be best just to
make a motion, yeah, would be the easy -- fairest way.
CHAIRPERSON SNELL: I don't know exactly now how
to word that motion.
VERO BEACH COURT REPORTERS
772-231-2231
10
11
1 MR. MULFINGER: You approve rebalancing to your
2 policy in large -cap value and large -cap growth space,
3 that's all it is.
4 MS. JENSEN: Somebody could just say so moved.
5 CHAIRPERSON SNELL: Kindly repeat that for us.
6 MR, MULFINGER: Sure. You're approving
7 rebalancing to your policy for the large -cap
8 value/large-cap growth.
9 CHAIRPERSON SNELL: Whatever Charlie just said,
10 I make a motion to do that.
11 BOARD MEMBER KILLGORE: I would second that
12 motion.
13 CHAIRPERSON SNELL: All in favor? Aye.
14 (ALL MEMBERS ANSWERED AYE.)
15 CHAIRPERSON SNELL: All against?
16 (NO RESPONSE.)
17 D. CONSIDERATION OF REPLACEMENT FOR PENSION BOARD
18 ATTORNEY
19 (Whereupon, background was given by Mr. Dehner
20 and recommendations by board approval for
21 assignment of his remaining contract term to
22 Klausner, Kaufman, Jensen & Levinson as new
23 counsel.)
24 (Whereupon, Board Member Killgore asked where the
25 firm is located and is there a contract period.)
VERO BEACH COURT REPORTERS
772-231-2231
12
1 (Whereupon, Board Member Killgore's questions
2 were answered by Mr. Dehner & Ms. Jensen.)
3 (Whereupon, Board Member Killgore asked whether
4 the board needed to have a secretary nominated.)
5 (Whereupon, Mr. Dehner answered in the
6 affirmative as per the statute.)
7 BOARD MEMBER KILLGORE: So you want to take
8 nominations for secretary?
9 CHAIRPERSON SNELL: How about that? Anybody...
10 nominations for any secretaries? Anybody want to nominate
11 someone or interest in it?
12 MR. McMURRY: Chris, nobody's going to
13 volunteer, man.
14 (LAUGHS.)
15 CHAIRPERSON SNELL: All I know is it's not going
16 to be me, obviously.
17 BOARD MEMBER KILLGORE: I would volunteer.
18 CHAIRPERSON SNELL: Okay. Then, I will make
19 motion to nominate Ken Killgore for the secretary for the
20 pension board.
21 BOARD MEMBER VICARS: I'll second that.
22 CHAIRPERSON SNELL: All in favor? Aye.
23 (ALL MEMBERS ANSWERED AYE.)
24 CHAIRPERSON SNELL: All against?
25 (NO RESPONSE.)
VERO BEACH COURT REPORTERS
772-231-2231
13
2 MR. DEHNER: Okay. And I would also suggest
3 that you by motion designate a records' management officer
4 and if you do that we will prepare resolutions so
5 indicating that you've chosen someone for that position
6 and without records and pension Form GS1-SL and you'll be
7 in compliance with that portion of law and that will be
8 filed with the division of retirement.
9 So however you choose -- you've already chosen
10 your secretary. If you would like Ken to perform the duties
11 of records' manager, he's not an officer also, I would
12 recommend that you do that today and adopt that record and
13 pension schedule you mentioned and then we'll send a
14 resolution for... to be signed.
15 CHAIRPERSON SNELL: I would make a motion to
16 recommend Ken for that position.
17 BOARD MEMBER KILLGORE: I can retire from my
18 regular job.
19 (LAUGHS.)
20 BOARD MEMBER WILLIAMSON: I will second that.
21 CHAIRPERSON SNELL: All in favor? Aye.
22 (ALL MEMBERS ANSWERED AYE.)
23 CHAIRPERSON SNELL: Against?
24 (NO RESPONSE.)
25 (Whereupon, Ms. Jensen asked if anyone had
VERO BEACH COURT REPORTERS
772-231-2231
1
2
3
4
5
6
7
s
9
10
11
12
13
14
is
16
17
18
19
20
21
22
23
24
25
questions for her or would like to talk about
their work or experience.)
(Whereupon, Board Member Killgore asked questions
in reference to other clients of Ms. Jensen's in
the area and also for coordination of meetings.)
BOARD MEMBER KILLGORE: I would make the motion
to approve the...
MR. DEHNER: The assignment.
BOARD MEMBER KILLGORE: ... the consent to
assignment.
MR. DEHNER: Yes.
BOARD MEMBER KILLGORE: And employ then
Klausner, Kaufman, Jensen & Levinson.
MR. DEHNER: Yes.
CHAIRPERSON SNELL: I'll second that motion.
All in favor? Aye.
(ALL MEMBERS ANSWERED AYE.)
CHAIRPERSON SNELL: All against?
(NO RESPONSE.)
E. CONSIDERATION OF SPECIAL MEETING IN JANUARY TO
REVIEW ACTUARIAL REPORT
(Whereupon, this Item was skipped in order as
Mr. Dehner moved on to legal updates.)
F. LEGAL UPDATES
MR. DEHNER: Okay. Yeah. That's fine. Because
VERO BEACH COURT REPORTERS
772-231-2231
14
15
1 I only have a couple of other items. And we've talked
2 about these before. When it went through the legislature
3 earlier this year it was Senate delayed.
4 After, it was adopted as the amendment to Chapter
5 119, which is the Public Record Statute, and it spun a
6 couple things that are significant for us: No. 1, it
7 provides if a civil suit for records as well as before they
8 file, the attorney would not be eligible for attorney's fees
9 for cost. Apparently, that has been abused quite a bit in
10 the state. That's the reason for that.
11 Next, you need to, if we haven't done it yet, post
12 on the door of the facility where most pension business is
13 conducted, the: No. 1, the fact that it is the facility;
14 and No. 2, you need to identify who should be contacted with
15 a public records' request, which I would think that would
16 probably be Ken; also, that same information, the location
17 where the pension business is going to be conducted, that
16 needs to go on the website as well as the individual who
19 needs to be contacted. Okay. Do you know if we've done
20 that yet?
21 BOARD MEMBER KILLGORE: We have not, Lee.
22 MR. DEHNER: Okay. Well, anytime now, the
23 sooner the better, and it should be done.
24 BOARD MEMBER KILLGORE: We will take care of it.
25 MR. DEHNER: Okay. And the last item since
VERO BEACH COURT REPORTERS
772-231-2231
1 we're having some activity with trustees, some leaving,
2 some coming on board, for trustees who've stepped down,
3 the Form 1F, final disclosure, needs to be filed. And for
4 a trustee who is newly on board, they need to file within
5 30 days a Form 1, just as you all have to do by July 1.
6 BOARD MEMBER KILLGORE: Yeah. I think our city
7 clerks helps particularly with new members to make sure
8 they get started off right but I will follow-up, like, on
9 Steve to make sure here's aware of that.
10 MR. DEHNER: Yeah that would be a good idea.
11 And has he had his official last day yet?
12 BOARD MEMBER KILLGORE: Yeah. He was off at the
13 end of October.
14 MR. DEHNER: Okay. Well, then, in his case you
15 just need the final disclosure. The person that steps
16 down from the board between January and July, they will
17 need to do two filings: IF, final disclosure and the Form
18 1 disclosure that you all file by July 1.
19 BOARD MEMBER KILLGORE: Right.
20 MR. DEHNER: And that's it.
21 (Whereupon, Chairperson moved back to Item E.)
22 (Whereupon, Board Member Killgore explained the
23 actuary report would not be ready until the end
24 of December 2017 and that a special meeting will
25 need to be held January 2018, date to be
VERO BEACH COURT REPORTERS
772-231-2231
17
1 determined.)
2 G. BOARD MEMBER REPORTS AND COMMENTS
3 (Whereupon, Board Member Williamson stated he
4 would be moving outside the city limits and would
5 have to resign from the board as it holds a
6 nonresident already.)
7 (Whereupon, Board Member Killgore asked to resign
8 so that the position could be held by Mr.
9 Williamson.)
10 (Whereupon, Ms. Jensen stated that a new
11 secretary needed to be appointed.)
12 (Whereupon, Board Member Gillette was appointed
13 secretary.)
14 (Whereupon, Board Member Vicars spoke about the
15 pension seminar that is a requirement and the
16 manual is available on the State Department Of
17 Pension's website.)
18 H. NEXT QUARTERLY MEETING: MARCH 20, 2018
19 (Whereupon, Chairperson Snell recited the date of
20 the next quarterly meeting, asked if there was
21 anything further, no response was given, and
22 adjourned the meeting.)
23 (Thereupon, at 11:27 a.m., the above -entitled
24 matter was concluded.)
25
VERO BEACH COURT REPORTERS
772-231-2231
1 STATE OF FLORIDA )
SS
2 COUNTY OF INDIAN RIVER )
3
d
5
6 MEETING CERTIFICATE
7
8
9 I, GREGORY CAMPBELL, Notary Public of the State of
10 Florida at large, certify that I was authorized to and did
11 stenographically report the foregoing proceedings and that
12 the transcript is an excerpt of my stenographic notes.
13 DATED this 22ND day of DECEMBER,_2017.
14
15
16
GREG RY,eAMPBELL, COURT REPORf''R
17 Commission No. EE 907742
My Commission Expires 8/6/2019
18
19
20
21
22
23
24
25
VERO BEACH COURT REPORTERS
772-231-2231
18