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HomeMy WebLinkAbout1997 01 28 Board of Trustees Regular Minutes MINUTES BOARD OF TRUSTEES JANUARY 28, 1997 - REGULAR MEETING 1. Call to Order Manager McLemore called the meeting to order at 7:30 p.m. in the conference room, Municipal Building. 2. Roll Call Also present Ron Warble, present Robert Nippes, present Jim Ryan, present Vernon Rozelle, present Ralph Bowman, present Ron McLemore, City Manager Brian Ballew, SunTrust Representative Diane Garcia, SunTrust Representative 3. Approval of October 22.1996 Reeular Meetine Minutes The minutes of the Board of Trustees regular meeting of October 22, 1996 were approved as distributed. 4. Election of Chairman Moved, seconded and carried to elect Ralph Bowman for Chairperson of the Board of Trustees. 5. Election of Vice-Chairperson Moved, seconded and carried to elect Jim Ryan for Vice-Chairperson of the Board of Trustees. 6. Quarterlv Review of Trust Finances with Brian Ballew of STI Capital Manaeement Garcia works on the administrative side of the account. She keeps records of the pension plan, and is responsible for the trust statements. Ballew distributed portfolios, two charts, and copies of a Wall Street Journal article. Discussion included the Lipper Index, administration fees, International funds and exchange rates. Manager McLemore said that he is open to doing a small amount in the aggressive area. Ballew said he would put a book together on the small, mid, and International funds. Warble asked for the net offees. The capital management cash flow shows an accurate gross/gross. Garcia said that the billing at the end of the fiscal year (Sept 30th) shows the net. Garcia explained that the fee schedule is applied to the market value on a quarterly basis. It is 1 % (100 basis points) of the market value on the first one million dollars, then drops to 75 basis points MINUTES BOARD OF TRUSTEES JANUARY 28, 1997 - REGULAR MEETING PAGE20F2 from two million to either nine or ten million dollars. The city's plan was allocated annually with only one source of money (employer), but now accounts are evaluated every 6 months, and there are two sources of money (employer and employee). During 1997 the record fees will be approximately $1,826.00 for the first period and $2,739.00 for the second period plus the $1,000.00 fee. This is based on 215 participants. Now that questions to the amendments are worked out, the rest of the checks should be cut next week. Ballew requested a member list of the Board of Trustees. Garcia and Ballew exited the meeting at 8:25 p.m. 7. Pension Plan Imorovements The city's money purchase plan does not give employees investment options. Manager McLemore said that since employees are contributing now to the plan, it may be time for a change. The Commission gave direction to examine additional ways to improve the plan. A benefits consultant is reviewing the city's plan, and their recommendations will come before the Trustees for review. There are several points to ponder: the ability to chose investments, the vesting schedule, the waiting period, the amount of administrative support. Attorney Lang has a difficult time giving advice on the present plan. The plan as is doesn't make sense anymore because the dynamics of the work place have changed so much. It is very frustrating not being able to tell your employee what the plan is going to mean to them in their future. Within 90 to 120 days, the consultant should have their work done. Manager McLemore said that SunTrust does pretty good on the Trust side, but the planned administration side is very poor; however, some of the problems are related to the complex language in the plan and the eight amendments. Direct wire transfer should solve the delay in posting. The next time the board meets the city manager will be able to give them some good information. 8. Adjournment Chairperson Bowman adjourned the meeting at 8:55 p.m. Minutes submitted by: Martha Jenkins, Deputy City Clerk