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HomeMy WebLinkAbout01262012 PRBDRAFT MINUTES — 2nd Revision JANUARY 26, 2012 Sebastian Police Pension Board Minutes: December 13, 2011, 10:00 a.m. TYPE OF MEETING: Regularly Scheduled Sebastian City Council Chambers NOTE TAKER: Harry Tanner ATTENDEES: Board Members: Harry - Tanner, Secretary Debra Krueger Steve Marcinik Greg Witt EXCUSED Robert Zomok (sick) CONSULTANTS: Peter Goodridge, Wells Fargo Advisor Grant Mc Murry, ICC Capital Mgmt. (Portfolio Manager) Lee Dehner, Attorney SUBJECT CALL TO ORDER 10:00 a.m. There being a quorum present, Debra Krueger, called the meeting to order. SUBJECT ELECTION OF NEW OFFICERS 10 :00 a.m. Harry Tanner made a motion to nominate Greg Witt, Board Chairman. Debra Krueger and unanimously passed by the Board. 10:00 a.m. Chairman Witt presided over a discussion of whether absent Board member, Robert Zomok, would be willing to take over the secretary duties? It was felt he would be willing. 10:05 a.m. A motion was made to nominate Robert Zomok as Board Secretary, Harry Tanner seconded the motion, and it was unanimously passed by the Board. Chairman Witt asked Harry Tanner take notes for today's meeting and it was agreed. SUBJECT APPROVAL OF MINUTES 10:05 a.m. Chairman Witt motioned the minutes of the: September 13, 2011 Board Meeting, and, the, Special Board meeting held October 18, 2011, be reviewed and approved. Motioned seconded by Debra Krueger and passed unanimously without change, for both meetings. SUBJECT OLD BUSINESS STATUS OF 1sT DRAFT OF LOCAL LAW ORDINANCE It should be noted that many Fund Members and Al Minner, City Manager was present for this portion of the meeting. 10:10 a.m. Lee Delmer, Pension attorney reports the ratified CBA agreement had not yet been received. Debbie Krueger left the meeting momentarily to provide a copy of the CBA for Mr. Delmer. 10:10 a.m. Chairman Witt delivered a Memorandum addressed to Greg Witt, City of Sebastian Police Pension Fund, dated 11/17/11, from Jason Mills, Sebastian PD CFPBA Unit Representative, subject: Union Interest in Additional Benefits. Al Minner asked to address the board regarding benefit changes. Mr. Minner noted that additional benefits can not be added to an enacting ordinance as only those benefits collectively negotiated between the City and the PBA are permitted. Chairman Witt inquired about the City of Sebastian Agenda transmittal dated for Council 12/14/11, Agenda No., 11.151. Mr. Minner clarified that these were two separate matters. One matter being the collectively agreed to pension modifications require an ordinance to be enacted and reviewed by the Pension board. This is for benefits that have been collectively negotiated between the City and the PBA. The second issue being Agenda No. 11.151 which was a legislative action that Council was considering for lobbying the State Legislature. That matter concerned proposed modifications to pension law. A discussion ensued between Lee Dehner, and Al Minner, concerning Mr. Minner's statement on the division. between a pension modification and Council considering a legislative position resolution. Mr. Dehner, stated he believes the idea of the items being only CBA items are arguable, and do apply for this stage of the Local Law Ordinance Plan. Chairman Greg Witt asked if any in attendance would like to speak to this matter. Fund member, stated the City Council is hearing from management on this Resolution (the Agenda Item) without any input from membership on the issue the Resolution addresses. Fund member, stated the City Council is hearing from management on this Resolution (the Agenda Item) without any input from membership on the issue the Resolution, and additionally that these benefits were free and the SPD is entitled to them. Fund member, questioned whether the proposed additional benefits requested by Mr. Mills memo would add additional costs to the pension changes desired. Lee Dehner responded as to what he believed an actuary would think had no costs involved. Mr. Dehner believed that, maybe, the Drop plan and Military Buy back would add costs. Al Minner responded that the City believed there would be costs associated with the additional benefit requests. Lee Dehner spoke of the process whereby the City and the Bargaining Agent waive their rights to Pension Benefits being collectively bargained and have the Fund provide the Pension Benefit function. Al Minner stated the City did not relinquish their right to negotiate pension benefits. With no one else wanting to speak, the Board resumed discussion. A motion was made by Debra Krueger for Lee Dehner to prepare one ordinance to include the reduction in accrual factor for new police officers that was ratified by the PBA and City. Council in October, and authorize Foster, & Foster to prepare a financial impact statement for other additional benefits requested by the PBA. The motion failed for lack of a Second. A Board discussion regarding addressing the City Council meeting and asking them not to vote on the Resolution in the consent agenda took place. Board member Steve Marcinik stated he would address the council if no one else did. Harry Tanner also said he would be there. 11:00 a.m. the Board made a motion, and it was seconded to authorize Lee Dehner to draft an ordinance changing the pension benefits as collectively agreed with the requested additional benefits per the memo prepared by Jason Mills. The motion passed by the Board with a vote of 3 -1. Debbie Krueger voted against the motion. A discussion was held between the Board members and our Attorney regarding benefits and our role as a Board in assisting the Fund members in their effort to better their pensions, and, fund member's belief the Board should be helping. Lee Dehner said he would draft a document on what he believes are non -cost items. Lee suggested we arrange a special meeting to further discuss the Local Law Plan. It was decided that Lee would pick a date after January 18, 2012, for the special meeting and forward it to the Board for acceptance. WELLS FARGO CONTRACT UPDATE 11:20 a.m. Lee Dehner states the liability issue is still holding things up. Peter Goodridge said he has been trying to convince Wells Fargo lawyers that the standard Lee is seeking is in other contracts that Well Fargo has with other Florida municipalities. Lee said the way Wells Fargo wants the contract to read, Wells Fargo, will have less, rather than equal, fiduciary responsibilities. He said this is a significant issue. The matter will be updated at the next regular Board meeting. NEW BUSINESS SUBJECT FOSTER & FOSTER PRICE SHEET DISCUSS AND REVIEW. VALUATION 11:25 a.m. Debra Krueger asked the Boards permission to adjourn these matters to a later Agenda and permission to send out an RFP for the services we are looking for. The Board agreed and Debra will follow up and update the Board at a later meeting. Debra will also send out to Board members the most current actuarial statement available. SUBJECT PROXY VOTING STATEMENTS 11:30 a.m. Grand Mc Murry reports it is not possible to see the proxy statement before votes are cast because there is only one statement and it goes to the person or agent who is casting the vote. Basically a process whereby the agent would provide the information on the proxy statement to the Board before voting the proxy is not possible without creating a new complex time restricted system. SUBJECT WELLS FARGO ADVISORS REPORT 11:30 a.m. Peter Goodridge gave his investment performance report for the period ending Sept. 30, 2011. He provided a report dated Dec. 12, 2011. Except for four Bonds in the portfolio that currently do not meet the requirements of our investment policy, the Plan is in full compliance with written policies. SUBJECT PORTFOLIO MANAGERS INVESTMENT REVIEW REPORT 11:50 a.m. Grant Mc Murry provided statistics in book form for the last Quarter ending September 30, 2011. He stated it was a really bad quarter with the Fund return down - 8.91 %. Grant states the market is being driven by Hedge Funds, making the Regulated investments strategies of our Fund difficult to compete in these market conditions. A discussion was held as to what might be done to improve performance. Grant stated we are already performing much better in the fourth quarter. Grant will update on the 4 Bond issue at the March 2012 meeting. SUBJECT ATTORNEY MATTERS 12:30 p.m. Lee Dehner reports the pension issues under the new Local Law /Ordinance Plan will be discussed at a special Board meeting in January 2012. He will prepare draft of issues needed to be discussed. SUBJECT ACTION ITEMS ITEM RESPONSIBLE PERSON Special Meeting Date Lee Dehner Public Notice Special Meeting Debra Krueger Wells Fargo Contract Update Dehner /Goodridge Current Actuarial Statements Debra Krueger RFP for Actuarial Statements Lee Dehner Update on 4 Bonds Grant Mc Murry SUBJECT ADJOURNMENT 12:35 p.m. having no further business for discussion, Chairman Greg Witt adjourned the meeting. Next regularly scheduled meeting is March 20, 2012, at 10:00 a.m.