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HomeMy WebLinkAbout12142010 PRB Sebastian Police Pension Board Minutes December 14, 2010, 10 00 a.m. Sebastian City Council Chambers TYPE OF MEETING: Regularly Scheduled NOTE TAKER: Harry Tanner ATTENDEES: Board Members: Denis Hovasse, Chairman Harry Tanner, Recording Secretary Dan Acosta Debra Krueger Richard Taracka, Not Present Consultants: H. Lee Dehner, Attorney Peter Goodridge, Wells Fargo Advisor Grant McMurry, ICC Capital Mgmt. SUBJECT CALL TO ORDER TIME: 10:00 a.m. A quorum being present the meeting was called to order by Chairman, Denis Hovasse. SUBJECT APPROVAL OF MINUTES TIME: 10:00 a.m. The minutes of the September 14, 2010, meeting were reviewed. TIME: 10:05 a.m. Debra Krueger made a motion to approve the minutes of the September 14, 2010, meeting, seconded by Denis Hovasse, unanimously approved by the Board. 1 SUBJECT OLD BUSINESS BOARD MEMBER RICHARD TARACKA TIME: 10:05 a.m. Debra Krueger reports that Richard Taracka has resigned by letter, dated December 9, 2010. Debra will notify the City that one of the Funds City's appointees has resigned and notification has to be made to advertise the opening and put on the City Council Agenda for appointment approval. REVIEW OF THE NEW CITY ORDINANCE TIME: 10:10 a.m. Attorney. H. Lee Dehner said he reviewed the new City Ordinance and it contained an Indemnification clause. FUND MEMBER TIME: 10:15 a.m. Debra Krueger reports that is unable to attend this meeting. Attorney, H. Lee Dehner suggested that no discussion be had concerning request since he is not here. Debra Krueger said she would contact in an attempt to have him at our next scheduled meeting. STATUS OF THE REVISED INVESTMENT POLICY TIME: 10:17 a.m. Peter Goodridge, Wells Fargo Advisor, reports his review of the 2003 Investment Policy for suggested revisions has not been completed because of the City of Sebastian's new law permitting our Investment Policy to include investments in International Markets. 2 H. Lee Dehner discussed this with the Board and said a draft summary would be prepared of a revised Investment Policy Plan which would include the new International investment policy. SALEM TRUST CUSTODIAL AGREEMENT TIME: 10:25 a.m. H. Lee Dehner presented the new Salem Trust Agreement for signing. Chairman, Denis Hovasse, and, Secretary, Harry Tanner, signed the new Salem Trust contract, and returned it to Debra Krueger for our records. SUBJECT NEW BUSINESS IRS VOLUNTARY COMPLIANCE PROGRAM TIME: 10:30 a.m. H. Lee Dehner reported on this audit program and the Board discussed the idea of opting in or out of the Program, since we are not required to participate. Harry Tanner made a motion to not participate in the program, seconded by Debra Krueger and unanimously approved by the Board. PROXY VOTING POLICY STATEMENT TIME: 10:40 a.m. H. Lee Dehner, reports we use the proxy voting system. Grant McMurry, states he will provide the proxy voting statement at our next meeting. WELLS FARGO INVESTMENT REPORT TIME: 10:45 a.m. Peter Goodridge, Wells Fargo Advisor, provided a letter that summarized the performance evaluation of the Police Pension Fund. As of September 30, 2010, the Fund was fully compliant with the current Investment Policy. 3 PORTFOLIO MANAGERS REPORT TIME: 11:00 a.m. Grant McMurry, ICC Capital Mgmt. reported on our Fund's investment strategy based on information provided at the last meeting that we were going to be investing in smaller cap stocks, such as the Russell 2000 index of established companies, (the Russell index was only a suggestion for use as a benchmark suggested by Harry Tanner, Grant did not say this was the index they would necessarily be buying in). Grant stated we had poor performance on investments during this last quarter due to bad stock picking. He stated investments were in the right areas of companies but the companies selected were bad picks. However, Grant said against other indexes our investments were not all that bad. He suggested he is currently worried about our investments in Government Bonds. SUBJECT ATTORNEY MATTERS TIME: 11:35 a. m. Atty. Lee Dehner reported on the following: New Federal Health Legislation may have an effect on pensions and include a $3000 deduction. As of this meeting the legislation was in the House Ways and Means Committee. Lee will advise as new information is learned. At our next Board meeting we agreed to discuss ways to support passage of Legislation favorable to our members. Lee Dehner reported we are reviewing whether we are in compliance with laws restricting investments in outlawed companies and countries who's stocks we are not allowed to own. Grant McMurry reported the Portfolio is in compliance. Peter Goodridge said he would update our list of investments to demonstrate we are in compliance. 4 SUBJECT BOARD MEMBERS MATTERS TIME: 11:55 a.m. Chairman, Denis Hovasse, stated a fund member had requested information on why the retirement age can not be changed from 25 to a 20 year retirement? H. Lee Dehner said such a change would require more pension funding from the Funds participants. SUBJECT ACTION ITEMS ITEM RESPONSIBLE PERSON Agenda 3/15/11 discussion of ways to Debra Krueger support pension legislation. City Council agenda and Debra Krueger advertising for new Board member. Notify Anthony Francisco Debra Krueger of new meeting date. Proxy Voting Statement. Grant McMurry Federal Health Legislation. H. Lee Dehner Restricted investment update. Peter Goodridge SUBJECT ADJOURNMENT TIME: 12:00 p.m. Having no further business for discussion, Chairman, Denis Hovasse adjourned the meeting. The next meeting is 3/15/2011, at 10 a.m. 5