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HomeMy WebLinkAbout2023 02 09 Board of Trustees Regular Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING FEBRUARY 9, 2023 CALL TO ORDER Chairperson David Withee called the Regular Meeting of Thursday, February 9, 2023 of the Board of Trustees to order at S:3S pm in the Commission Chambers (City Hall,1126 East State Road 434,Winter Springs, Florida 32708). Roll Call: Board Member Michael Blake, present Board Member Arif Fareed, absent Board Member Marco Santoro, present Board Member Greg Smith, present Board Member David Withee, present City Clerk Christian Gowan, present Also present: City Manager Shawn Boyle Deputy City Manager Casey Howard Mr. Dave West, Senior Consultant,AnclCo Consulting, 4901 Vineland Road, Suite 600, Orlando, Florida A moment of silence was followed by the Pledge of Allegiance. REGULAR AGENDA - PART I 500) Election for Chairperson of the Board of Trustees for Calendar Year 2023 Board Member David Withee opened nominations for Chairperson. Brief discussion on interest among members to serve as Chair. "I NOMINATE GREG SMITH TO SERVE AS CHAIRPERSON." NOMINATION BY BOARD MEMBER BLAKE. No other nominations were made. VOTE: BLAKE (AYE); SANTORO (AYE);SMITH (AYE);WITHEE (AYE). MOTION CARRIED 4-0. Board Member Greg Smith was elected the Chairperson. 501) Election for Vice-Chairperson of the Board of Trustees for Calendar Year 2023 "I'D LIKE TO MAKE A MOTION TO NOMINATE MARCO SANTORO TO BE VICE-CHAIR FOR THE BOARD OF TRUSTEES." NOMINATED BY CHAIRPERSON WITHEE.SECONDED BY BOARD MEMBER FAREED. No other nominations were made. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 09,2023 PAGE 2OF4 VOTE: BLAKE (AYE);SANTORO (AYE); SMITH (AYE);WITHEE (AYE). MOTION CARRIED 4-0. Board Member Marco Santoro was elected the Vice-Chairperson. PUBLIC INPUT Board Member Withee opened Public Input. No one spoke. Board Member Withee closed Public Input. CONSENT AGENDA 300) Approval of the Thursday, December 14, 2021 Board of Trustees Regular Meeting Minutes Brief discussion on clarifying language related to a motion. "MOTION TO APPROVE THE MINUTES WITH THE NOTED CHANGES." MOTION BY CHAIRPERSON SMITH. SECONDED BY BOARD MEMBER BLAKE. DISCUSSION. VOTE: BLAKE (AYE); SANTORO (AYE); SMITH (AYE); WITHEE (AYE). MOTION CARRIED 4-0. REGULAR AGENDA - PART II 502) Actuarial Study for Interest Assumption Mr. Boyle reviewed previous discussions and recommended taking the assumption rate from 7.4 to 7.0 and noted an associated 6.4% increase in contribution from the City, or total of $930,S31.00. Mr. Boyle noted the change would have no material impact on budget, referenced the attached actuarial report based on an assumption of portfolio value at $72 million, and noted reassessing further reductions in six to eight months. Discussion followed on state recommendations, the variables to be considered, and moving towards a steady funding model. "I MAKE A MOTION THAT THE BOARD OF TRUSTEES RECOMMEND TO THE CITY COMMISSION TO REDUCE THE ACTUARIAL ASSUMPTION RATE FROM 7.4%TO 7.0%." MOTION BY BOARD MEMBER BLAKE. SECONDED BY BOARD MEMBER SANTORO. DISCUSSION. Brief discussion about impact on actuarial valuation. VOTE: BLAKE (AYE); SANTORO (AYE); SMITH (AYE);WITHEE (AYE). MOTION CARRIED 4-0. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 09,2023 PAGE 3OF4 503) Quarterly Investment Return Report from AndCO Consulting Mr.West noted that he would review a recent flash report and asked that a separate item be discussed related to AnclCo contract renewal. Mr. West discussed the investment environment over the last quarter and expanded on numbers for various funds, cash flow, and asset allocation. Mr. West specifically noted recent employment numbers, Fed actions, and related market reactions. Discussion followed on real estate investment performance. Mr. West recommended the Board take advantage of strong markets, pull the domestic equity allocation down by$2,000,000.00 (two million dollars), liquidate from the Vanguard total index, move more out of the inflation protection index, and move $600,000.00 (six hundred thousand dollars) to the Vanguard Short-Term Bond. Mr. west also noted a need to balance the operating fund. And suggested the Board move more money into short-term bonds and maximize available yield which would get the policy back to neutrality. Further discussion on the potential for more actions by the Federal Reserve, recession possibilities, and the recommendation from Mr.West. Mr. Boyle noted, in regards to the operating fund, that the City had one more month of budget to fund distributions and that subsequent distributions would be entirely on the portfolio. Brief discussion about reallocating funds from the short-term bond fund to make additional distributions as required. Mr. West provided an updated recommendation based on discussion and suggested the Board rebalance domestic equity by selling $2,000,000.00 (two million dollars) from the Vanguard Total to Vanguard Short-Term and move $600,000.00 (six hundred thousand dollars) from VANGUARD Inflation Protection Security Fund (TIPS) and use as needed for distributions. Discussion followed on the quarterly employee contributions and distributions as well as cash flow requirements. "MOTION TO MOVE $1,000,000.00 (ONE MILLION DOLLARS) FROM VANGUARD DOMESTIC FUND (TOTAL STOCK FUND) AND $1,000,000.00 (ONE MILLION DOLLARS) FROM RBC INTERNATIONAL TO VANGUARD SHORT-TERM BOND FUND AND MOVE $600,000 (SIX HUNDRED THOUSAND DOLLARS) FROM TIPS(INFLATION PROTECTION)TO MONEY MARKET FUND." MOTION BY BOARD MEMBER BLAKE. SECONDED BY CHAIRPERSON SMITH. VOTE: BLAKE (AYE); SANTORO (AYE); SMITH (AYE);WITHEE (AYE). MOTION CARRIED 4-0. 504) ADD-ON: Firm Update and AndCo Contract Extension Mr. West provided an annual firm update and then shared two proposals related to AnclCo's contract extension,one option with an annual fee and a cost of living adjustment (COLA) and the other a fixed fee with no COLA. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 09,2023 PAGE 4OF4 Discussion followed on RFP requirements,proposed recommendations,the need for legal review,and the value of the services provided by AndCo. "MOTION TO AGREE TO THE $38,000.00 (THIRTY-EIGHT THOUSAND DOLLAR) FEE ESCALATOR SUBJECT TO LEGAL REVIEW." MOTION BY BOARD MEMBER WITHEE. SECONDED BY CHAIRPERSON SMITH. DISCUSSION. VOTE: BLAKE (AYE); SANTORO (AYE); SMITH (AYE);WITHEE (AYE). MOTION CARRIED 4-0. PUBLIC INPUT Board Member Withee opened Public Input. No one spoke. Board Member Withee closed Public Input. REPORTS Board Member Withee thanked the Board for their work and offered best wishes to the new Chairperson. ADJOURNMENT Chairperson Withee adjourned the Regular Meeting at 6:59 p.m. RESPECTFULLY SUBMITTED: J11 CHRISTIAN D. GOWAN, MPA CITY CLERK NOTE: These Minutes were approved at the May 11,2023 Board of Trustees Regular Meeting.