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HomeMy WebLinkAbout09122013 PRB Minutes1 Sebastian Police Pension Board Minutes September 17, 2013, 10:00 a.m. Sebastian City Council Chambers TYPE OF MEETING: Regularly Scheduled ATTENDEES: Board Members: Greg Witt, Chair Robert Zomok, Secretary Harry Tanner Debra Krueger Steve Marcinik EXCUSED: CONSULTANTS: Scott Owens, Graystone Consulting, Douglas Lozen, Foster & Foster Grant McMurry, ICC Capital Mgmt. (Portfolio Manager) Lee Dehner, Attorney SUBJECT CALL TO ORDER 10:00 a.m. There being a quorum present, Greg Witt, called the meeting to order. SUBJECT APPROVAL OF MINUTES 10:05 a.m. Debra Krueger motioned the minutes of the June 18, 2013 Board Meeting approved. Motioned seconded by Harry Tanner and passed unanimously without change, for both meetings. SUBJECT OLD BUSINESS Updated Plan Summary Revisions Collective Bargaining Agreement (CBA) The negotiated changes to Article 48 - Retirement were discussed by the Board. Lee Dehner pointed out that the date of July 1, 2011 in 2 paragraph 48.5C needed to be changed to October 1, 2011. Proposed Ordinance CBA Revisions The changes to the CBA and the writing of the new Ordinance are intertwined on a detailed basis. The addition of “no-cost” improvements has been an item of considerable discussion over the last year. These include: amendments to allow the Police Officer to purchase service for FMLA time, to purchase prior Police service, to purchase prior military service credits toward retirement calculation, add a DROP provision, and re- employment after retirement. After detailed discussion, Debra Krueger moved to prepare a re- stated Ordinance to include the tax changes dictated by the IRS Code amendments, CBA changes to Article 48 (if ratified), and expanded investment authority, and authorize Lee Dehner to prepare a second Ordinance to include the proposed “no-cost” items to purchase prior Police service, purchase prior military service and adding a DROP provision, to be presented to Sebastian City Council at the same time the new Ordinance is presented. A Special Meeting of the Board will be convened to review the updated first Ordinance and the language of the newly proposed second Ordinance. Asset Allocation Strategy and Investment Policy Statement Review These two items were tabled pending the adoption of the two (2) new Ordinances. SUBJECT NEW BUSINESS Experience Study Doug Lozen presented a detailed analysis of potential changes to the assumptions governing the Sebastian police Officers Pension Plan. Since the Plan has changed to one covered by Local Law statutes, the Board has the authority to change the assumptions. Doug asked the Board to respond to two questions following his presentation: Should some or all of the assumptions be changed? When should these changes take effect? At the end of a detailed discussion of each assumption, Debra Krueger 3 moved to adopt all recommendations presented by Doug Lozen except the one dealing with “normal retirement.” Bob Zomok seconded the motion. The motion passed unanimously. Trustee Member Term Expirations Police Appointees - Elections Steve Marcinik and Greg Witt will contact members of the Police Department to obtain nominations for Pension Board membership. (Debra pointed out that this is usually conducted via email) Council Appointees - Applications Harry Tanner has opted to retire from the Board Bob Zomok has submitted his application for continued participation. Anthony Francisco Death Benefit Procedure The process for next steps was discussed with input from Lee Dehner and Doug Lozen. Debra Krueger will receive information from Doug to finalize the processing. Quarterly Performance Summary Scott Owens provided a detailed review of the Plan’s performance over the last quarter. He touched on the performance of various sectors of the market and provided an analysis of the allocation of the Plan’s funds using Policy Index 1 and 2. Further, he presented Risk/Return Analyses cover 3, 5, and 10 year time periods. The Board congratulated Scott for achieving the CFA designation. Report on Sale of (2) Downgraded Bonds Grant McMurry reported that the Simon Properties bonds were sold at a profit. One more bond holding is to be sold. Fund Review Grant then discussed the performance of the markets with emphasis on this year-to-date. The Fund has made a gain of just over 13%with a value of $9,687, 932.00 as of June 30, 2013. He reported that as of close of business yesterday, the Fund had an ending value of over $10,000,000.00 for the first time in its history. The remainder of this year continues to track in an upward manner 4 even though the economy is anticipated to have slow growth. Some sectors of the market are anticipated to continue to provide double digit returns. ATTORNEY MATTERS Lee Dehner reported that we need to add a “Public Comments” section to our agenda. He counseled that we should consider adopting some rules governing “public comments” in the near future. These rules may include such items as a description of what the public may comment on and time limits for public comments. ACTION ITEMS ITEM RESPONSIBLE PERSON Finalizing Anthony Francisco Debra Krueger/Doug Lozen Death benefit processing Redrafting the Ordinance covering Lee Dehner Local Law Pension Plan Drafting the Second Ordinance Lee Dehner Covering the “no-cost” items Convening a Special Meeting Lee Dehner/Debra Krueger To review the revisions and the new Ordinance ADJOURNMENT 1:00 p.m. Having no further business for discussion, Chairman Greg Witt adjourned the meeting. Next regularly scheduled meeting is DECEMBER 17, 2013 at 10:00 a.m. in the City Council Chambers. Respectfully Submitted, _______________________________ Bob Zomok, Secretary.