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HomeMy WebLinkAbout06082010 PRBSebastian Police Pension Board Minutes - DRAFT June 08, 2010,1000hrs Sebastian City Council Chambers TYPE OF MEETING: Regularly Scheduled NOTE TAKER: Harry Tanner ATTENDEES: Board Members; Chairman Denis Hovasse, Harry Tanner, Dan Acosta, Debra Krueger. Richard Taracka. Excused Consultants: H. Lee Dehner, Attorney Peter Goodridge, Wells Fargo Advisor Grant McMurry, ICC Capital Mgmt. David Freitas, Salem Trust Co. Agenda topics: TIME: 10 a.m. SUBJECT CALL TO ORDER The meeting was called to order by Chairman Denis Hovasse at 10 a.m. TIME: 10 a.m. SUBJECT APPROVAL OF MINUTES: The minutes of the March 16, 2010 meeting were reviewed. Denis Hovasse made a motion to approve the minutes of the March 16, 2010, meeting, seconded by Dan Acosta, unanimously approved by the Board. 1 TIME: 10:10 a.m. SUBJECT OLD BUSINESS REVISED NEW CITY ORDINANCE Attorneys Report; Ordanance, agenda transmittal, and select Council date. Atty. Lee Dehner explained the new Ordinance is now ready to be presented to the City Council for their approval. Dates to be presented to the City for their Council agenda are, 1't reading, July 28, 2010, and, 2 °a reading, on August 11th, or 25th. Debra Krueger said she would follow -up with the City getting the Ordinance on the City Council calendar. TIME 10:20 a.m. INVESTMENT POLICY REVIEW Peter Goodridge said his review of the 2003 Investment Policy for suggested revisions has not been completed. TIME 10:20 a.m. SUBJECT NEW BUSINESS TIME 10:20 a.m. SALEM TRUST COMPANY FEE INCREASE David M. Freitas, CTFA, V.P./Relations Manager for Salem Trust presented information on the company and the services they have provided to the pension fund since 1999. They are the custodian of documents pertaining to the Fund. After explaining that the last increase for their services was in 2003, he stated increased costs over the past 7 years is the reason the company is seeking a fee increase from $2700 to $5000. A discussion was held with the advisors and attorney for the Fund and it was agreed the fee of $5000 for a fund our size is competitive in the industry. 2 Debra Krueger made a motion to accept the new Salem Trust Company Custodial Agreement with a schedule for `A la carte Services" and a new annual fee of $5000 for Salem Trusts services, seconded by Denis Hovasee, the motion passed unanimously. Lee Dehner said he would prepare a new Custodial Agreement to reflect the changes. TIME 10:50 a.m. CHRISTIANSEN & DEHNER, P.A. NEW FEE INCREASE. Lee Dehner proposed a new fee increase for his firm's services from an hourly fee of $290.00 to $325.00 and 1/2 the fee for travel time. He also proposed a future annual increase of 4% per year, rather than a larger increase every few years. The last adjustment increase with his firm was over three years ago. The Board considered the level of service provided to the Board by the firm. The firm was considered by the Board to have met all of our needs. Providing professional legal advice to all our questions, and keeping the Board advised of current legislation pertaining to police pension plans. A motion was made by Debra Krueger to accept the addendum to agreement for legal services between the Board of Trustees of the City of Sebastian Police Officers' Retirement System, and Christiansen & Dehner, P.A. Sec V- Compensation. Seconded by Harry Tanner, and unanimously approved by the Board. Lee Dehner offered an original copy of the addendum changes and it was signed by Chairman, Denis Hovasse, and attested to by Secretary, Harry Tanner. TIME 11:05 a.m. Florida Local Government Retirement Plan Survey Debra Krueger requested clarification on completing the survey. Lee Dehner confirmed the Chapter 185 Police Pension Plan that is sponsored by our local government entity is properly included on the list of monitored plans. k Debra Krueger will complete survey and forward to Division of Retirement. Lee Dehner went on to explain that Florida law section 112.661(2) requires that plan assets must be invested in accordance with written investment policy. The law also requires the Board provide expected rate of annual returns, long and short term, along with the Boards investment policy. This is to be filed promptly with the Department of Management Service. TIME: 11:20 a.m. SUBJECT REVIEW OF INVESTMENT PORTFOLIO Peter A. Goodridge, Wells Fargo Advisor, presented and explained the Wells Fargo Investment Performance Analysis report for the period ending 03/31/10. He confirmed the accuracy of the ICC Capital Management's Investment Review of the Sebastian Police Officer's Retirement Fund for the Quarter Ending, 03/31/10. A motion was made by Debra Krueger and seconded by Harry Tanner to accept the Wells Fargo report. It was unanimously approved by the Board. TIME: 11:30 a.m. SUBJECT ICC CAPITAL MANAGEMENT, PORTFOLIO MANAGERS REPORT Grant McMurry presented ICC Capital Management's, Sebastian Police Officers' Retirement Fund Investment Review for the quarter ending, 03/31/10. A discussion was held concerning the poor condition of the markets and did ICC have a plan to address these poor conditions. Grant stated they are working with strategies that include obtaining investments in smaller undervalued companies. L, A discussion was held concerning the assumptions used to calculate the expected returns. Was it based on a 7.5 -8 %? Yes. Are there issues being examined concerning the fact that this type of return, 8 %, has not been seen in a long time in safe investments? Yes. Grant and Peter Goodridge said they were aware of issues regarding examining this rate of return to see if it is realistic. A motion was made by Debra Krueger and seconded by Denis Hovasse to accept the ICC Capital Management report. It was unanimously approved by the Board. TIME: 11:55 a.m. SUBJECT ATTORNEY MATTERS Atty. Lee Dehner reminded the Board to continue to be on the lookout for the IRS survey. Lee also spoke about Florida House and Senate legislation HB1319 & 1543 and SB1902. He updated that none of these laws passed. We were reminded to file our financial disclosure forms before 7/1/10. A discussion was held concerning the notifications to retired Officer Anthony Francisco to complete his retirement paperwork so his retirement check can be issued. A number of attempts have been made with no results. It is believed the officer knows he has to complete his paperwork and may not be cooperating. Debra Krueger said she will send a new letter to him, certified mail. ACTION ITEMS New City Ordinance, calendar update. 2003 Investment Policy revision; update. PERSON RESPONSIBLE Debra Krueger Peter Goodridge New Agreement with Wells Fargo Peter Goodridge New Custodial Agreement with. Salem Trust New Custodial Agreement. Notification to Retired Officer, Update. TIME: 12:10 p.m. ADJOURNMENT David Freitas Lee Dehner Debra Krueger Having no further business for discussion, Chairman, Denis Hovasse adjourned the meeting. Next meeting is 09/14/2010, at 10 a.m. A-1