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Home My WebLink About09152009 PRB Sebastian Police Pension Board - DRAFT SEPTEMBER 15, 2009 1000 SEBASTIAN CITY COUNCIL CHAMBERS MEETING CALLED BY TYPE OF MEETING Regularly Scheduled FACILITATOR NOTE TAKER ! Bob Zomok TIMEKEEPER ATTENDEES Eric Wheeler, Richard Taracka, Robert Zomok, Debra Krueger Absent/Excused: Denis Hovasse Agenda topics TIME Subject ERIC WHEELER Call to Order DISCUSSION The meeting was called to order by Eric Wheeler.The minutes of the 6/9/2009 meeting were reviewed. CONCLUSIONS Motion to Approve the minutes made by D. Krueger Seconded by Richard Taracka ACTION ITEMS j PERSON RESPONSIBLE DEADLINE Motion passed TIME Subject Old Business ERIC WHEELER Report on update of Wells Fargo Contract(in process) Lee Dehner is working with Peter Goodridge to complete the contract revision. Peter has proposed a"hard dollar"arrangement at$12,500 per year. Lee is in agreement with this approach. Commissions paid in 2008 = $13,022 and in 2009 YTD = $9,000 Proposed Ordinance for compliance w/ Pension Protection Act of 2006 and subsequent regulations&guidance from IRS& State Law. Waiting cost analysis. CONCLUSIONS ACTION ITEMS PERSON RESPONSIBLE DEADLINE Check with Foster&Foster on cost analysis D. Krueger 12/15/2009 Update Investment Policy L. Dehner 12/15/2009 Arrange for educational presentation by Lee Dehner D. Krueger 12/15/2009 Review file of Anthony Francisco per his request for starting his D. Krueger 09/30/2009 pension payments 1 TIME Subject PETER GOODRIDGE Review of Port Folio The Fund had a return for the quarter ending June 30, 2009 of 7.09%. The current investment policy DISCUSSION weighted indexes had a return of 8.36% for the same quarter.The Fund underperformed the current investment policy weighted indexes for the current quarter due to being underweighted in both equities and fixed income and over-weighted in cash. Motion to accept the report made by B. Zomok Seconded by D. Krueger CONCLUSIONS Motion passed ACTION ITEMS PERSON RESPONSIBLE DEADLINE TIME Subject GRANT MCMURRY&BENNETT HARMON Fund Review Bennett presented two key elements. First,the Fund Balance was$5.3 million at the end of June. However,the Fund Balance was$5.8 million by the end of August. Second, this increase is due to an increasing appetite for risk among investors and a concomitant increase in confidence in the market. DISCUSSION Overall, these advances seem to a part of a sustainable rally. Grant presented ICC's American Deposit Receipt investments.These are non-US companies listed on the New York Stock Exchange. Based on earlier discussion relative to changes in State Statutes, the Fund may be able to invest up to 25%of its equities in foreign markets. Motion to accept the report made by D. Krueger Seconded by R.Taracka CONCLUSIONS Motion passed ACTION ITEMS PERSON RESPONSIBLE DEADLINE 2 TIME Subject Legal Update H. LEE DEHNER The IRS continues to be interested in auditing public plans.To date 20 Florida Plans have received the 66 question survey. Recent changes in Florida 185.06(7) requires Plan Board of Trustees to identify and report any holdings it may have in any scrutinized company and to sell, redeem,divest, or withdraw all . publicly traded securities it may have in that company beginning January 1, 2010. Such divestiture must DISCUSSION be completed by September 10, 2010 for 185 Plans."Scrutinized"companies are identified at www.sbafla.com/fsb/. A further change to precipitated by SB 538 expands the board of trustees'ability to invest in foreign securities fro 10 to 25 percent.Therefore, if a plan contains the reference to the current 10 percent restriction, it should be updated to 25 percent.Grant McMurry assured the Board that we have no investments in"scrutinized"companies. Motion to accept the report made by D. Krueger Seconded by B. Zomok CONCLUSIONS Motion passed ACTION ITEMS PERSON RESPONSIBLE DEADLINE Review and update current ordinance per legislative dictates 1 H. Lee Dehner 12/15/2009 TIME Subject BOB ZOMOK Next Meeting j DISCUSSION ' CONCLUSIONS Next Meeting is December 15, 2009 • ' ACTION ITEMS PERSON RESPONSIBLE ! DEADLINE OBSERVERS RESOURCE PERSONS H. Lee Dehner,Grant McMurry, Peter Goodrich, Bennett Harmon SPECIAL NOTES 3