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HomeMy WebLinkAbout12152009 PRB Sebastian Police Pension Board Minutes — DRAFT December 15, 2009, 1000hrs Sebastian City Council Chambers TYPE OF MEETING: Regularly Scheduled NOTE TAKER: Harry Tanner ATTENDEES: Harry Tanner, Dan Acosta,Dennis Havasse, Debra Krueger Absent/Excused: Absent, Richard Taracka Agenda topics: TIME: 10 a.m. SUBJECT Call to order: The meeting was called to order by Debra Krueger at 10 a.m. TIME: 10 a.m. SUBJECT Administrative Business: Board members, Harry Tanner, Dan Acosta, and Dennis Havasse were introduced. The election results for Dan Acosta and Dennis Havasse was certified. An election for Board Elected Member was held. A Memorandum from Jeanette Williams, Board Coordinator, dated Nov.2, 2009, containing the press release for the Board opening, dated 10/02/2009, and the following applications and resumes of persons who applied for this position; John T. Barrett, Judy S. Bastian, Jeffery P. Battista Esq., Gary Helms, Debra Krueger, and, Robert S. Thibodeau, were distributed to the Board. 1 Debra Krueger was nominated to be the 5th Board member by Dennis Havasse, and seconded by Harry Tanner, voted in unanimously. An election was held for Board Chairman. Dennis Havasse was nominated by Debra Krueger, and seconded by Harry Tanner, voted in unanimously. An election was held for Board Secretary. Harry Tanner was nominated by Debra Krueger and seconded by Dennis Havasse, voted in unanimously. The minutes of the 9/15/2009 meetin g were reviewed and a motion to approve the minutes was made by Debra Kruger and seconded by Harry Tanner, minutes unanimously approved. Debra Krueger explained the requirement for education of Board members and said she would make the arrangements. Atty. Lee Dehner explained the law as it relates to the Sunshine Law, Public Records Law, and that the personal information of Police Officer's is not Public Record and is not to be disclosed. Debra Krueger and Atty. Lee Dehner advised the members that financial disclosure forms must be submitted by new members, and, thereafter by:July 1, for the prior calendar year. A member who leaves the board must also file a final disclosure form. Atty. Lee Dehner advised that an IRS Public Pension Plan Survey could be mailed to any member and if it is received it should immediately be forwarded to Debra Krueger for Lee's attention. If we get the survey it needs to be responded to within 90 days. TIME: 10:45 a.m. SUBJECT Attorneys Report Atty. Lee Dehner presented a draft of a proposed City Ordinance. 2 Items: 1,4,5,6,7,8,9,10,11,&12, are matters pertaining to Federal Law or Internal Revenue Code requirements. Item 2 is an amendment to increase the terms of office for the members of the Board from two to four years. Item 3 is an amendment to allow the Board to permit equity investment of up to 70% at market value of the fund's assets. This is an increase from the current 50%. Ordinance Discussion: Item 2. The purpose of the change in length of term was discussed and it was considered that due to the nature of the Boards work, the educational requirements, and the knowledge curve needed to perform the fiduciary duties, a four year term would better serve the interests of the funds participants and their beneficiaries. Item 3. In answer to a question; why change the equity investments from 50% to 70%, Steven Stack from ICC Capital Management stated; recent changes in Florida laws allowed a 25% investment in foreign equities, and this Ordinance change would provide the necessary leeway if such investments were to be made. INDEMNIFICATION A discussion was held regarding Indemnification of Board members by the City. What was discussed, was, since members have a fiduciary responsibility, this could open the door to a law suit that the board members could be responsible to pay should their be a complaint concerning fund losses. The attorney was asked to include language in the Ordinance to provide indemnification protection for the Board members. A vote was held to request the City Council to consider and approve the Ordinance including indemnification language. 3 A motion was made by Harry Tanner and seconded by Debra Krueger to forward this on to the City Council. The motion passed unanimously. TIME: 11:30 SUBJECT Wells Fargo Advisors Report Peter A. Goodridge presented and explained the Wells Fargo Investment Performance Analysis report for the period ending 09/30/2009. He confirmed the accuracy of the ICC Capital Management's Investment Review of the Sebastian Police Officer's Retirement Fund for the Quarter Ending, September 30, 2009. The fund had a return for the quarter ending 09/30/2009 of 8.6%. The fund outperformed the comparable weighted Indexes and underperformed the Policy for the 09/30/2009 quarter. The fund underperformed the Indexes and the Policy for the one year period ending 09/30/09 quarter. The fund underperformed the Indexes and the Policy for the three year period ending 09/30/2009 quarter. As of 09/30/09 the fund was allocated 43.9% in equities (stocks), 44.5% in fixed income (bonds), and 11.7% in cash equivalents (money markets). These figures are all at market value. The cash position declined by 3%, and the equity position increased by 3%, since the end of the last quarter. As of 09/30/09 the portfolio is fully compliant with the current investment policy. Motion to accept the report made by Debra Krueger seconded by Dennis Havasse, motion passed unanimously. 4 TIME: 12:05 SUBJECT Portfolio Managers Report Steven Stack presented ICC Capital Management's, Sebastian Police Officers' Retirement Fund Investment Review for the quarter ending 09/30/2009. Report Discussion: It was asked why the Portfolio cash was at 11.7%? That, that, seems a bit high? Steve Stack stated that the current amount since this report was prepared has been reduced to about 6% cash. Because the recent change was so recent he could not identify the investments just yet. But did state the cash position of the fund had been reduced to about half of what was reported for the Quarter ending 09/30/2009. Having no other questions a motion to approve the report was made by Debra Krueger and seconded by Harry Tanner. The motion passed unanimously. TIME: 12:30 SUBJECT 2010 Meeting Dates Atty. Lee Dehner reported the dates for Board Meeting for 2010 were as follows: 03/06/2010, 06/08/2010, 09/14/2010, 12/14/2010, at 10 a.m. ACTION ITEMS PERSON RESPONSIBLE Financial disclosure form for Dan Acosta. D. Krueger Education arrangements for new members. D. Krueger ADJOURNMENT Having no further business for discussion, Chairman, Dennis Havasse adjourned the meeting. Next meeting is 03/06/2010, at 10 a.m. 5