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HomeMy WebLinkAbout06-26-2018 MinutesCITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR MEETING JUNE 26, 2018 1. Call to Order -- Acting Chairperson Christine Vicars called the meeting to order at 10:00 a.m. 2. Roll Call Present Board Members Christine Vicars Paul Williamson Randy Moyer Tim Wood Absent Jason Gillette -- Excused Also Present Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for Board of Trustees Ken Killgore, Plan Administrator Cynthia Watson, Human Resources Manager Scott Owens, Graystone Consulting Andy McIlvaine, Graystone Consulting Janet Graham, Technical Writer 3. Vote to Excuse Absent Board Member A motion to excuse the absence of Jason Gillette was made by Mr. Moyer and seconded by Mr. Wood. Motion carried unanimously by voice vote. 4. Approval of Minutes A. Regular Meeting of January 16, 2018 B. Special Meeting of February 9, 2018 to certify election results. C. Special Meeting of February 9, 2018 on Ken Johnson Disability. D. Regular Meeting of March 20, 2018. POLICE PENSION BOARD PAGE 2 MINUTES OF REGULAR MEETING JUNE 26, 2018 A motion to accept the Minutes of the four meetings listed above was made by Mr. Williamson and seconded by Mr. Moyer. Motion carried unanimously by voice vote. 5. Old Business A. Approval of Payments a. Klausner, Kaufman, Jensen & Levinson $ 11,499.88 b. Graystone Consulting 3,375.00 c. Klausner, Kaufman, Jensen & Levinson 467.50 d. City of Sebastian 1,344.00 e. City of Sebastian 48.00 f. City of Sebastian 64.00 B. Review of Annual Calendar of Board Activities Mr. Killgore reviewed the Calendar of Activities and Scope of Services -- SEE ATTACHED. 6. New Business A. Florida Retirement System Report Mr. Killgore informed the Board that the report had been filed as required by the State. Mr. Killgore reviewed the report -- SEE ATTACHED. B. Review of Expenses Mr. Killgore reviewed the Operating Expenses report -- SEE ATTACHED. He stated that at the next meeting he would bring any budget amendments to the Board C. Review from Investment Monitor Mr. Owens gave a review of the stock market, describing that there has been a lot of volatility in the market during the last quarter, but at the end of the quarter the market was down only about 1%. He stated that the market is very strong right now. He also reviewed the portfolio in detail -- SEE ATTACHED. POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING JUNE 26, 2018 Ms. Jensen inquired as to whether Intercontinental would be willing to come and make a presentation to the Board. Mr. Owens stated that could be arranged. He suggested that Center Coast be asked to make a presentation, and he stated he would make those arrangements. Ms. Jensen inquired about including fiscal year-to-date reports in the Breakdown of Returns. Mr. Owens stated he will see that they are included on future reports. Ms. Jensen reiterated that at the last meeting there was a discussion about the investment policy guidelines, and there were proposed investment policy guidelines, but it was not actually signed. Mr. Stack had the one from 2016, but there was a question as to if there was one for 2017. Mr. Owens stated he did not have a different one. So there is not another one to be signed or considered. Mr. Owens stated that at the last meeting there were concerns that the benchmark for fixed income that was being used was incorrect. Mr. Stack had said it should be Barclays Act, and that was changed. Mr. Owens thanked the group for their business and asked if there were any questions from the Board. Mr. Williamson asked Mr. Owens about how the tariffs just recently imposed on trade would affect the economy. Mr. Owens stated that it is his belief that in the long run the result will be positive. Ms. Vicars asked if there was anything that needed to be discussed regarding Highland Capital. Ms. Jensen stated part of the issue was keeping the assets in line with the target allocation. Mr. Owens stated Highland was making allocations that were outsi de of their purview, and the Board needed to make sure that they were managing it so that it was not an excessive risk. Ms. Jensen read an email that she had received regarding this subject which suggested that there be a letter on file with the bank that will allow a move up to 5% of the account assets to another one of their accounts. So if growth is underweight to value less than 5%, they could move assets to the growth account. Mr. Owens said he would follow up on that. Ms. Jensen said that if the as set allocation change would come to this Board, it would take action when the recommendation is made. Mr. Owens said that is the way it has been done in the past. Mr. Killgore asked if this was reviewed every quarter. Mr. Owens stated that right now the account is very close to the target, so they would make no recommendation. POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING JUNE 26, 2018 Mr. Killgore stated that correspondence was recently received, and he would like clarification whether it was proper to approve the change. Mr. Owens stated the change would be on BNY Mellon to Northern Trust. They want to make sure that Northern Trust has the same assets that BNY Mellon has so they can provide the same service. We should make this contingent on our approval and the Board's approval, and we would want to do it at the next meeting. Ms. Jensen stated the Board can approve it subject the Monitor (Morgan Stanley) and the Board working it out. Ms. Jensen said that Salem Trust would need to know that the back office is changing and Boston Partners cannot give that direction to Salem Trust; the client needs to do that. Ms. Vicars asked for a motion. Motion was made by Mr. Williamson and seconded by Mr. Moyer to approve the back-office change to Northern Trust pending Mr. Owens' and Ms. Jensen's approval. Motion passed unanimously by voice vote. D. Report from Investment Manager -- None. E. Legal Updates a. Ms. Jensen stated the Form 1s are due to be filed on July 1. Those forms must be filed annually, and they can be emailed. b. Ms. Jensen discussed new case law regarding the Sunshine Law and gave an overview and explained exactly what the Sunshine Law requires, including giving 24 hours' notice of any special meetings. She explained the reason for the Sunshine Law, that being so that the public can understand the reasoning behind the decisions that boards/committees are making and that the reasoning behind decisions made is part of the public record. She discussed email in regard to the Sunshine Law and that it is regarded the same as conversation between or among parties. So if discussion is not allowed about a subject, neither is email. Another item she discussed is social media. She provided the example that, if the City has a Facebook page which mentions a pension issue, the Board should not comment to one another in that feed about any discussions that they might have had at any meetings. The same rule applies to Twitter. She further stated that there cannot be a meeting unless a quorum is