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HomeMy WebLinkAbout2001 08 30 Board of Trustees Regular Minutes CITY OF WINTER SPRINGS MINUTES BOARD OF TRUSTEES - PENSION PLAN REGULAR MEETING AUGUST 30, 2001 I. CALL TO ORDER The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman Robert Nippes, on Thursday, August 30,2001 at 6:00 p.m. in the West Conference Room of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call Chairman Robert Nippes, present Vice Chairman Vernon Rozelle, absent Board Member Vincent Giannoni, present Board Member Mark Queen, present Board Member Mark Sardo, absent II. REGULAR AGENDA REGULAR A. Review Of Draft Of Retirement Investment Policy With Consultants. Mr. Steven Alexander, CCM, Senior Managing Consultant, Public Financial Management, 201 South Orange Avenue, Suite 720, Orlando, Florida: spoke of the background of Florida Statute 112.265.; and of the State's new policy effective October 1, 2000. Mr. Alexander explained, "So, what we have here today is a draft that we have been working with Louise and other members of the City Staff in putting together a draft that complies with the State Statute. The Statute - if you go to the table of contents, this table of contents on page two (2) mirrors the paragraphs that are in the Statute." Mr. Alexander further stated, "What we have done is created paragraphs of that information based on other investment policies we seen around the State. We sort of blended this all together and then we worked with Staff to help customize it so it fits your specific needs and situation here in the City of Winter Springs." Ms. Louise Frangoul, Finance Department Director stated, "We also met with our Investment Manager Tim Nash, and our Actuary, Sandy [Turner] and got together as a group to review that it met the actuarial assumptions and some of the investment targets that we have." Ms. Frangoul suggested to the Board that "Comments need to be back as soon as possible. It needs to go before the Commission on September 10, to have the CITY OF WINTER SPRINGS AGENDA BOARD OF TRUSTEES SPECIAL MEETING - AUGUST 30, 2001 PAGE20F3 Commission's final approval on the policies that we would have to incorporate any changes that you feel needs to be done." The following items from the proposed policy were discussed: II. Investment Objectives Chairman Nippes stated, "Actually it's the first time 1 have ever heard anything tied to the CPI (Consumer Price Index). Is this something new? Sandy was always saying it was - seven percent (7%) or eight percent (8%) or something of that sort. It was always a fixed percentage, not tied to CPI." Ms. Frangoul replied, "That fixed percentage I think you are speaking about is that nine percent (9%) target rate and we have incorporated that into the - policy here. 1 think that's number IX on page eight (8), nine percent (9%), that we have to achieve in order to meet our obligations." Discussion. VII. Portfolio Composition Referring to number three (3), Chairman Nippes informed Mr. Alexander that the Board meets Quarterly and not Monthly as stated. Mr. Alexander noted the correction. IX. Expected Annual Rated of Return Mr. Alexander stated that reporting the expected rate of return and submitting the investment policy are required by the State. The Board discussed whether the current market would allow the expected rate of return as stated in the document. Discussion. X. Third-Party Custodial Agreements Mr. Alexander said, "The Statute requires that there is a custodial bank that has a contractual agreement with the Board that is actually going to hold the securities and keep those secure as a third party." Further added by Mr. Alexander was, "I think the problem we'll have is that all the mutual funds are SunTrust Mutual Funds. So, I need to actually then talk to the investment manager and see how we can structure that." Mr. Alexander briefly reviewed Mater Repurchase Agreement; Bid Requirements; Bid Requirements; and Internal Controls. XIV. Continuing Education The Board discussed the proposed Workshop scheduled for September 12, 2001. Ms. Frangoul spoke of arranging another Special Meeting. The Board agreed by consensus to have the Special Meeting held also on the night of September 12, 2001. CITY OF WINTER SPRINGS AGENDA BOARD OF TRUSTEES SPECIAL MEETING - AUGUST 30, 200] PAGE30F3 Board Member Mark Queen departed the Meeting at 6:44 p.m. III. ADJOURNMENT Chairman Nippes adjourned the Meeting at 6:45 p.m. RESPECTFULLY SUBMITTED: '~~l~~P DEBBIE GILLESPIE - DEPUTY CITY CLERK NOTE: These minutes were approved at the ~ '30 ,200 I Board of Trustees-Pension Plan Meeting. Docs\ Word\BOA RDS\ TRUSTEES\allI\MINUTES\200 1 \08300 I SPECIAL.doc