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HomeMy WebLinkAbout2017 02 15 Board of Trustees Regular Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING FEBRUARY 15, 2017 (RESCHEDULED FROM FEBRUARY 14, 2017) CALL TO ORDER The Regular Meeting of Wednesday, February 15, 2017 (Rescheduled from Tuesday, February 14, 2017) of the Board of Trustees was called to Order by Chairperson Frank Mundo at 5:37 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Frank Mundo,present Vice-Chairperson Robin Paris, absent Board Member Cindy Sosa, present Board Member David Withee, present Assistant to the City Clerk Antonia Della Donna, present A moment of silence was held followed by the Pledge of Allegiance. No changes to the Agenda were mentioned. ❖❖ AGENDA NOTE: REGULAR AGENDA ITEMS — PART I "500" AND 11501" WERE ADDRESSED SIMULTANEOUSLY,AS DOCUMENTED. ❖❖ REGULAR AGENDA- PART I REGULAR 500. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Hold An Election For The Position Of Chairperson For Calendar Year 2016. REGULAR 501. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Hold An Election For The Position Of Vice-Chairperson For Calendar Year 2016. As a Board of Trustees Member was absent, it was suggested that the Elections for Chairperson and Vice-Chairperson be postponed until the next Regular Meeting. No objections were voiced. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 15,2017 (RESCHEDULED FROM FEBRUARY 14,2017) PAGE 2 OF 6 AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA INFORMATIONAL 200. Not Used PUBLIC INPUT Chairperson Mundo opened "Public Input". No one spoke. Chairperson Mundo closed "Public Input". CONSENT AGENDA CONSENT 300. Office Of The City Clerk The Office of the City Clerk Is Requesting The Board of Trustees Consider_And Approve The Thursday, November 17, 2016 (Rescheduled From Tuesday, November 8, 2016) Board Of Trustees Regular Meeting Minutes. "I WILL MAKE THAT MOTION TO APPROVE LAST BOARD MEETING'S MINUTES." MOTION BY BOARD MEMBER WITHEE. SECONDED BY CHAIRPERSON MUNDO. DISCUSSION. VOTE: BOARD MEMBER SOSA: AYE BOARD MEMBER WITHEE: AYE CHAIRPERSON MUNDO: AYE MOTION CARRIED. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 400. Not Used CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 15,2017 (RESCHEDULED FROM FEBRUARY 14,2017) PAGE 3 OF 6 REGULAR AGENDA- PART II REGULAR 502. Finance And Administration Services Department The Finance And Administrative Services Department Is Requesting The Board Of Trustees Receive From The Bogdahn Group The First Quarter Investment Return Report And To Enter Into Discussion. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: addressed the rebranding of The Bogdahn Group to AndCo Consulting and added, "This is an expression of the fact that we are an extension you. What I do, our resources, the company—client comes first." Next, Mr. West spoke of the reporting period and commented on post-election effects and interest rate increases. Referencing Page 2, Mr. West expanded on various major market Indexes and their performance and shifts in the economy under a new presidential administration. Mr. West noted, "We're hoping that this environment results in more positive contributions coming from active managers if the market returns to fundamentals again." Mr. West continued to review the Investment Return Report and remarked about net totals and touched on three (3), five (5), and ten (10) year numbers. Mr. West further commented on peer group rankings and said, "A number three (3) means that we're — actually in the top third percentile as far as our investment program goes when compared to very small to the multibillion dollar public pension systems across the country. So, excellent report, great quarter, great way to start the New Year." On a related point, Mr. West addressed equity, fixed income portfolio, benchmarks, additional peer group rankings, bonds, and Crescent Direct Lending Fund. Chairperson Mundo referenced a LIBOR (London Interbank Offered [Rate]) Rate and mentioned, "It is not only little duration risk, but it also allows it to participate on the upside on the income side as rates go up." Mr. West then commented about interest rates and loans. Furthermore, Mr. West explained, "As a matter of follow-up, we actually did have the Crescent [Direct Lending] folks in our office in January and they are opening another offering, and I was hoping to arrange their participation tonight — but I apologize, I couldn't get it coordinated and scheduled." Chairperson Mundo inquired if the Crescent Direct Lending representatives had new and/or different information than the last time they presented to the Board of Trustees. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 15,2017 (RESCHEDULED FROM FEBRUARY 14,2017) PAGE 4 OF 6 Mr. West indicated, "There are some differences to the fee structure which are — as it's being rolled out — should be slightly more favorable to the original offering." Mr. West briefly commented on the disassembly of the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as cash flow and investments. Chairperson Mundo asked about the application process to invest further with Crescent Direct Lending. Mr. West responded, "I would recommend continuing with the Crescent program and keeping some minimum asset allocation here in place. I think it's a very viable strategy— our research team has vetted the new offering. So, what I can do is two (2) things; first — we can try and get them scheduled to come. I think it would be good for everyone to hear from them." Chairperson Mundo expressed his concerns if the Board were to potentially miss an investment opportunity while waiting to meet with Crescent Direct Lending. Mr. West replied, "In the meantime, what I'll do is — we'll contact them — we'll get the application and the — capital pledge document." Mr. West added, "We can get that going." Board Member Withee commented on overexposure and inquired, "On Page 38, about the total distributions — is that a combination of capital return and interest?" Mr. West responded, "Yes." Brief remarks. Discussion followed on asset allocation percentage for investments. Mr. West recommended, "I guess first order would be R&D, then the extent we have to liquidate investments, the Vanguard Short-Term Bond, and then thirdly, as long as we don't drop below the minimum allocation, you know, I'd suggest we pull it from the Galliard Core Fixed Income." Much discussion ensued on investments, interest rates, market environments, federal funds, and procedure for approval to make such an investment. "I WILL MAKE A MOTION THAT WE GET IN LINE WITH THE FOLKS AT — CRESCENT TO PARTICIPATE THE TWO MILLION DOLLARS ($2,000,000.00) IN THE NEXT OFFERING AND THAT WE FUND IT IN THE WAY THAT WE HAVE DESCRIBED WHICH IS R&D FIRST, VANGUARD SHORT-TERM SECOND, AND GALLIARD CORE THIRD; AND ALSO THAT DAVE [WEST] DO HIS BEST TO GET THEM IN AS SOON AS POSSIBLE SO THAT ALL BOARD MEMBERS CAN FAMILIARIZE THEMSELVES WITH THE PROGRAM." MOTION BY CHAIRPERSON MUNDO. SECONDED BY BOARD MEMBER WITHEE. DISCUSSION. VOTE: CHAIRPERSON MUNDO: AYE BOARD MEMBER SOSA: AYE BOARD MEMBER WITHEE: AYE MOTION CARRIED. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 15,2017 (RESCHEDULED FROM FEBRUARY 14,2017) PAGE 5 OF 6 REGULAR 503. Finance And Administration Services Department The Bogdahn Group Is Requesting The Board Of Trustees To Consider The Proposed Consulting Fee Increase. Presenting the Agenda Item, Mr. Shawn Boyle, Director, Finance and Administrative Services Department indicated, "That organization is asking for basically a three (3) year contract with and they're looking for an escalator of three percent (3%) within that contract. Right now we're at — basically start at twenty-six thousand [dollars] ($26,000.00) and every year we would compound that by three percent(3%)." Discussion followed on the contract renewal. Chairperson Mundo inquired about the previous fee guarantee. Mr. Boyle remarked, "We were mid-twenty-five thousand [dollars] ($25,000.00) plus some change; it wasn't a big jump from where we were, but Dave [West] is just extending it out three (3) years and trying to put an escalator in there." Additional comments followed on the required City Commission approval. "I WILL MAKE A MOTION THAT WE RE-UP WITH — ANDCO [CONSULTING, INC] FOR THREE (3) YEARS ALONG WITH THEIR PROVISIONS FOR THEIR NEW CONTRACT." MOTION BY CHAIRPERSON MUNDO. SECONDED BY BOARD MEMBER WITHEE. DISCUSSION. VOTE: CHAIRPERSON MUNDO: AYE BOARD MEMBER SOSA: AYE BOARD MEMBER WITHEE: AYE MOTION CARRIED. Mr. West thanked the Board and noted, "And again, my privilege to work with everyone here and on behalf of my partners and my team—we appreciate the recommendation." 600. REPORTS No Reports were given. PUBLIC INPUT Chairperson Mundo opened "Public Input". No one spoke. Chairperson Mundo closed "Public Input". CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING—FEBRUARY 15,2017 (RESCHEDULED FROM FEBRUARY 14,2017) PAGE 6 OF 6 Chairperson Mundo commented on his tenure as a Board of Trustees Member and noted, "It has been a great pleasure, I have enjoyed working with everyone." Additional remarks. ADJOURNMENT Chairperson Mundo adjourned the Regular Meeting at 6:18 p.m. RESPECTFULLY SUBMITTED: r IA DE LA DONNA ASSISTANT TO THE CITY CLERK NOTE: These Minutes were Approved at the May 9,2017 Board of Trustees Regular Meeting.