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Home My WebLink About1993 09 14 Board of Trustees Regular Minutes ~ BOARD OF TRUSTEES MEETING SEPTEMBER 14, 1993 The meeting was called to order at 7: 10 p.m. by Chairman Ferring. BOARD f"EMBERS: Art Hoffmann, Present Seyroour Berman, Absent John Ferring, Chairman, Present Will i an Jacobs, Present Willian Dickey, Absent Ci ty Manager John Govoruhk, Present Harry Mart in, Finance 0 i rector c~ty Attorney Tan Lang Kurt Wood, Asst. Vice President, Sun Bank Capital Management, N.A. Philip Roberts, Trust Investment Officer, Sun Bank Capital Management, N.A. Chairman Ferring said that he would 1 ike to have the mechanics and transition explained, what is going to happen inmediately and how do we reso 1 ve the di 1 emna of the Finance Director and what has to be done as far as the mechanics of the "ins and outs". Also wi 11 you be able to work with him on that on a fairly rapid schedule to get sanething set up as far as the "ins and outs" for the people caning and going into the system. Secondly we ~ would like to have if possible a recap of what you have been doing since we have given the agreement over to SUn Bank. Kurt Wood, Vice President, Sun Bank Capital Management, N.A., explained that Ph i 1 i p Roberts wi 11 be the I nvestment Off i cer and will be respons i b 1 e for camunicating investment performance and investment processes to you the Board of Trustees. Anytime we get a contribution fran the City, Roberts will invest that money according to the direction that we are going set up here ton i ght in th i s meet i ng. Th i s meet i ng was pr imar i 1 y set up to set investment objectives, because we have had this money for about 10-15 days and we want to invest it as soon as we can; we don't like it sitting in a money market fund at all and that is what it has been doing since we received it fran the Florida League of Cities. We want to get this money put to work and that is the primary reason for this meeti~g tonight is because the funds that we utilize, that we discussed in the first presentation, which are high grade funds which are exclusively for municipal pension funds are valued twice a month; the beginning of the month and the 15th of the month and tanorrow is va 1 ue time. Wood sa i d as far as the other person who is not here and her ro 1 e is kind of secondary as far as ton i ght 's meet i ng is Di anne Garc i a, Trust Off i cer, she is responsible for hand 1 ing the "ins and outs" as far as receiving funds, distributing funds, handling any kind of terminations that may occur. r' Wood also stated that there is a third person who wi 11 handle the record keeping side of it, that is really the nuts and bolts as far as handling the all ocat ions mak i ng sure each plan part ic i pant gets thei r allocated r- Board of Trustees Meeting September 14, 193 Page 2 POrt i on as far as the plan, the contr i but ions, the earn i ngs etc. and f i 1 es that report with the Board of Trustees on an annual basis, and that is Tim Helsel. Helsel and our record keeping group are kept in the office and that is all that they do. Wood said that Roberts will be the Board's primary contact because he will be the one report i ng the investment performance, to answer any quest ions that the Board may have as far as what is going on with the funds. Jacobs asked if the City has a separate analyst. Ferring said that yes we do and the ana 1 ys i s we have been us i ng is the firm of McDenrott, Dav i s and Leteria, under the guidance of Mr. Lang we got that firm and they have guided us through the period of transition that we are going through right naw as far as picking our investment manager. Ferring said that as we get into this with Sun Bank we wi 11 be then looking at whether or not we want to bring on another individual analysis to over see Sun Bank, if it is necessary. Philip Roberts, Trust Investment Officer, said that he would come out on a quarter 1 y bas i s or as often as the Board meets, your performance report and r- I ' 11 show you any bas i ca 11 y contr i but ions, d i str i but i ons , investment earn i ngs , investment i nca1ie and that trans 1 ates into a percentage figure. I'll give you benchmark indicies, how to CO'1l>are them; basically we use the S & P-SOO as our benchmark, against our fixed incane we use Sherson Lehman Goverrment Corporate Bond Index. We will be bringing you up numbers and you'll have a very good idea on how you stand, how we are prefonning and are we meeting your expectations in terms of the guide1 ines you have presented. We wi 11 be reporting to you as often as need be. Wood stated that you wi 11 have an opPOrtunity to evaluate us on your own and if at that po i nt in time it does cane that you want to search out another independent analysis. Ferring stated that in the event that we do need one we can make that decision down the 1 ine. Wood said that they put together for the Board tonight different asset allocation roodels and what we would 1 ike to do is cane to a conclusion tonight to get a little bit of direction as far as what you as a Board are canfortab le with and what we recannend as the investment manager. We want to get input fran you and we wou 1 d 1 i ke to give our own input and cane to some CO'TtOOI"'l ground where you all are canfortab le with what we are doing and we are canfortab1e with what you would 1 ike to do. There was discussion on the different asset allocations. .r'" I"""'" Board of Trustees Meeting September 14, 193 Page 3 Ferring asked Attorney Lang if the Board is ready at this time to make any type of recannendation as far as our allocations. Attorney Lang said the Board can do it, right now there is rroney sitting in a rroney market account and what you can do is give them what your objectives are ton i ght as best as you understand and rev i sit them in two weeks to see if you have had any change of heart after you have reflected on it and advise them at that point; but give them sanething so they know what to do taoorrow wi th your rroney. otherwi se, given what was sa i d you wi 11 have another two weeks of minimal earnings on the rroney. Discussion. Hoffmann rroved that the Board goes with 55 - 45 with a 5% cap. Seconded by Jacobs. Discussion. Jacobs said that the cap is on the equity and that they are not instructed to have 55 - 45, the rrotion is to check the rroderate box and that has a cap of 55, they have the 1 at i tude to go up to 60 on equities. Ferring asked if there was any rrore discussion; he said that the rrot ion is to go with 55 - 45 wi th rrocIerate growth. Vote: A 11 aye. Mot i on carried. Ferring asked Wood they would be doing the calculations and it will be off ./"""" the City's shoulders. Wood said that is correct, they will be doing everything that is in the agreement. Attorney Lang stated that at this time the way the agreement reads is the Chairman is the only one that can give instructions to the bank. He said that for the record what he feels should be done is to designate the City Manager if the Chairman is not avai lable, the City Manager is capable of giving instructions to the bank on behalf of the Trustees if the Chairman is incapacitated. Discussion. Jacobs rroved to designate the City Manager to give the bank instructions if the Chairman is incapacitated. Seconded by Hoffmann. Vote: A 11 aye. Mot ion carr i ed. Ferring said that he would 1 ike Attorney Lang to work with Wood and Robert to have a written policy statement. Discussion. Wood asked that the policy statement be incorporated in with the trust provisions within the document. Attorney Lang said he wou 1 d rather have the po 1 icy statement be in a separate po 1 icy. A 11 were in agreement. Ferring said that if any of the Board of Trustees have any ideas that they would 1 ike to be entered into the pol icy statement to sul:mit them to the Chairman and in turn give the statements to the Attorney that he could incorporate into the statement then the Board can discuss it and act on it. All were in agreement. ,""""" ",....., Board of Trustee Meeting September 14, 1993 Page 4 The Board decided to meet again on October 12, 1993 at 7:00 p.m. Harry Mart in, Finance Director asked about the CaJl)lying 1 ists etc. on the EfT1) 1 oyees in the plan, and reports on the reve 11 ent date, and asked what do they consider the revellent date. Wood stated that would be the plan year end. Mart i n a 1 so asked what is the turn around time if saneone f i 1 es a termination. Wood said what ever the plan docl.l'Tlent says. Ferring said that the plan documents are on file in the City Clerk's office and if any of the Trustees want to read it they can go in and rev i ew it. Martin asked if the fees would be charged back to the plan or is the City going to be paying that in addition to the contributions. Wood said it can be done either way. Mart i n sa i d before it was charged back to the plan. Ferring said if that is the way you would 1 ike it done then we wi 11 do it ",....., that way. Wood was in agreement. Wood said that he has spoken with the City Manager and the Finance Director about same sort of resolution to appoint the City as named plan adninistrator. Attorney Lang said that he feels that at the next Cannission meeting to agenda it to designate the City Manager or his designee to be the plan adninistrator. The meeting was adjourned at 8:25 p.m. Respectfully Submitted, Margo Hopk ins Deputy City Clerk .,,-.-