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Home My WebLink About12-08-2022 Minutes w/AttachmentsCITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 8, 2022 Call to Order — Chairman Tim Wood called the meeting to order at 5:00 p.m. II. Roll Call Present: Board Members: Mr. Puscher Ms. Ring Captain Wood Mr. Reeves Detective McDonough — Late Arrival Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board of Trustees Ken Killgore, Plan Administrator Doug Lozen, Foster & Foster — Zoom Scott Owens, Graystone Consulting Mark Harrell, Fiera Capital Representative Barbara Brooke -Reese, MIS Manager Janet Graham, Technical Writer III. Vote to Excuse Absent Board Members There was a motion to excuse Detective McDonough by Mr. Puscher, seconded by Mr. Reeves, and approved unanimously via voice vote. A short time later Detective McDonough did appear and is noted above as a late arrival IV. ADDroval of Minutes -- September 8, 2022 Regular Quarterly Meeting There being no corrections or additions, a motion approving the Minutes of September 8, 2022 was made by Mr. Puscher, seconded by Mr. Reeves, and approved unanimously via voice vote. V. Old Business POLICE PENSION BOARD PAGE 2 MINUTES OF REGULAR MEETING SEPTEMBER 8, 2022 Approval of Payments: a. Highland Capital — July to September -Value, ADR $5,451.74 b. Highland Capital —July to September— Fixed Income 3,242.85 C. Boston Partners — July to September 5,555.27 d. Fiera Capital — July to September 2,578.51 e. Renaissance — July to September 2,063.02 f. Polen Capital — July to September 2,038.65 g. Graystone Consulting — July to September 3,375.00 h. Klausner, Kaufmann, Jensen & Levinson — August to October 7,499.95 i. Division of Administrative Hearings — William Grimmich 90.00 j. City of Sebastian - Administrative Services — October to December 6,000.00 k. City of Sebastian — Janet Graham 09-08-2022 Meeting 108.00 I. Travelers Insurance — November 1, 2022 Annual Policy 2,991.00 M. FPPTA 2023 Membership 750.00 n. Salem Trust — April to June 5,689.33 A motion approving the expenditures as set forth above was made by Mr. Puscher, seconded by Mr. Reeves, and approved unanimously via voice vote. 2. Consideration of Online Portal for Plan Members — Doug Lozen, Foster & Foster. This item was rescheduled until the next meeting. VI. New Business Presentation of October 1, 2022 Actuarial Report Mr. Lozen identified himself and noted that he was appearing via Zoom. He reviewed the actuarial report, after which there were questions/comments from the Board members. Chairman Wood called for a motion. A motion to accept the actuarial report as presented was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. Mr. Lozen then reviewed the Declaration of Returns, and questions/comments were presented by the Board members. A motion approving the Declaration of Returns at 7.1 % was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. POLICE PENSION BOARD PAGE 3 MINUTES OF REGULAR MEETING DECEMBER 8, 2022 2. Presentation by Fiera Capital -- Mark Harrell Mr. Harrell identified himself and reviewed the report as displayed on the monitor (SEE ATTACHED). He described the makeup of Fiera Capital and went through the report in depth following which there were questions/comments from the Board members. 3. Report from Investment Monitor — Scott Owens Mr. Owens discussed the manager search which is being done as well as the status of interest on money markets, etc., as well as the economy in general and how the markets are affected by the inflation. After Mr. Owens' presentation there were questionsicomments by the Board members. There was discussion regarding a new manager. A motion taking 5% of the income portion of the portfolio and moving It to a money market, leaving the remaining portion of the portfolio, and put half with Genterand leave half where it is, was made by Mr. Puscher, seconded by Mr. Reeves, and approved unanimously via voice vote. Before Mr. Owens finished his presentation, he requested a fee increase of $2,500.00 which would total $16,000.00 a year for the services they provide. Mr. Puscher described his interaction with Mr. Owens' firm as being very positive. Chairman Wood staled he also has no concerns with increasing their fee. A motion approving the increase of $2,600.00 in fees from Morgan Stanley was made by Mr. Puscher, seconded by Captain Wood, and approved unanimously via voice vole. VII. Leaal Locates: Klausner. Kaufman. Jensen & Levinson 1. Update and Consideration of Any Action Needed on Grimmich Forfeiture Process a. Order granting extension of time b. Notice of hearing by ZOOM conference/instructions C. Order of pre -hearing instructions Ms. Jensen updated the Board on what Is taking place. She stated that Ireland Grimmich has hired two attorneys who have entered a Notice of Appearance on her behalf. The hearing has been scheduled for February 16, 2023 at 9:30, and it will be available via Zoom. She recommended that as many Board members as possible attend via Zoom. Discussion was had regarding how everyone can attend via Zoom. 2. Public Safety Officer Support Act of 2022 POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING DECEMBER 8, 2022 Ms. Jensen stated that the public safety officer benefit has been updated to include PTSD as a job -related injury or reason for death. The benefit Is $422,000.00 now for a family of an officer who is killed in the line of duty. In order to be entitled to the PTSD benefit, the disability has to have occurred after January 1, 2019. The officer has to have been diagnosed with PTSD, have sought help for PTSD, or had a traumatic event which caused them to commit suicide where the suicide went wrong, and they are disabled as a result of it. 3. SEC Proxy Voting Disclosure Rules Ms. Jensen discussed some additional SEC proxy voting disclosure rules. Comingled funds also have to report their proxy voting online. It is actually now being required to be searchable. That information is available online. 4. Delaware Law Change Permits Companies to Insulate Corporate Officers from Liability for Reckless Conduct Ms. Jensen stated that everything is in order regarding Clearbridge. She described how corporations are treated in Delaware. She stated that the provision that has changed in Delaware law is that it allowed corporations which are incorporated in Delaware to add to their corporate charter a provision that would exempt their officers from personal liability for up to reckless conduct. There was a question of whether Clearbridge is incorporated in Delaware or Maryland. Ms. Jensen stated she would check on that. She further discussed this item and answered questionstcomments by the Board members. She asked that the Board give her firm authorization to write to Polen and the other companies that vote the Pension's proxies to let them know that they should vote against these provisions as they come forward, as she does not feel they are in the best interests of the Pension Fund. A motion authorizing Ms. Jenson to write to the companies that vote this Pension's proxies was made by Mr. Puscher, seconded by Captain Wood, and approved unanimously via voice vote. 5. Other Legal Matters Ms. Jensen said the only other legal matter is regarding the Foster & Foster addendum. She does not know whether that has been signed or not. Mr. Kilgore interjected that that is why Mr. Lozen wanted to defer that explanation to the next Board meeting. Vill. Plan Administrator Reports POLICE PENSION BOARD PAGE 5 MINUTES OF REGULAR MEETING DECEMBER S, 2022 1. Florida Department of Management Services Pension Conference (rescheduled) Mr. Killgore stated he will continue to do the next update on ruling which is scheduled for next week with the Florida Department of Management Services. 2. Budget vs. Actuals Report/Calendar of Board Activities/Other Administrative Matters Mr. Killgore stated he has given everyone the report on comparative budgets as well as the calendar of events that were needed to be overseen during December. Mr. Killgore also brought everyone up to date on the Francisco matter. IX. Next Scheduled Quarterly Meetinc: March 9, 2023 X. Adjournment There being no further business, Captain Wood adjourned the meeting at 7:20 p.m. Bv: -"t Date: 3/3/z3 A