HomeMy WebLinkAbout2003 07 29 Board of Trustees Regular Minutes
CITY OF WINTER SPRINGS
MINUTES
BOARD OF TRUSTEES - PENSION PLAN
REGULAR MEETING
JULY 29, 2003
I. CALL TO ORDER
The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman
Robert Nippes on Tuesday, July 29, 2003 at 7:30 p.m. in the Commission Chan1bers 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, present
Board Member Vincent Giannoni, arrived at 7:36 p.m.
Board Member Tim Pesut, present
Board Member Mark Queen, present
II. CONSENT
CONSENT
A. Approval Of The January 28, 2003 Regular Meeting Minutes.
"MOTION TO APPROVE THEM [MINUTES] AS WRITTEN." MOTION BY
VICE CHAIRMAN ROZELLE. SECONDED BY BOARD MEMBER QUEEN.
DISCUSSION. WITH CONSENSUS OF THE BOARD, THE MOTION WAS
APPROVED.
MOTION CARRIED.
III. REGULAR AGENDA
REGULAR
B. Review Of Trustco Capital Management Financial Statements With
Representative Mr. Tim Nash.
Mr. Blake My ton, Investment Officer, CCM, Trusco Capital Management, 300 South
Orange Avenue, Suite 1600, Orlando, Florida: introduced himself to the Board, then
summarized the performance of the City's portfolio over the last quarter.
Board Member Vincent Giannoni arrived at 7:36 p.m.
Discussion.
CITY OF WINTER SPRINGS
MINUTES
BOARD OF TRUSTEES - PENSION PLAN
REGULAR MEETING - JULY 29, 2003
PAGE20F3
Board Member Mark Queen asked, "Isn't our portfolio somehow supposed to mirror the
S and P [Standard and Poor]?" Mr. Myton advised, "We try to beat it, we do not try to
just mirror it, but yes." Board Member Queen stated, "But you have here - we still are
not performing as well as what the S and P [Standard and Poor] did." Mr. Myton said,
"For the six (6) months correct. But if we look at the longer term numbers, the three (3)
and the five (5) year, and again I would not argue that that is a more relevant time period
to see a full market cycle, not just one (1) quarter or two (2) quarters. Where our
particular earnings quality driven process was out of favor, the market did not favor that
for the last two (2) quarters, really the last three (3) quarters, but I think as we have seen
over a longer time period that the process does work and it has done a very good job of
protecting us on the down side." Board Member Queen asked the Board, "Does that
bother anybody besides me?" Vice Chairman Vernon Rozelle said, "That is a good point.
I am a little concerned about the equity. The fact that - not even being able to match
what the Sand P [Standard and Poor] is doing."
Discussion.
Board Member Queen said, "Well I agree. Over the last 115 months we can not
complain a lot. We can only go back and say look how good we did for so long. That is
why I say I am just concerned about it." Mr. Myton responded, "Again we have to live
with this under-performance, and it will start to creep into the longer time periods and
ultimately we will be graded against it. This next quarter and the quarter after that, if
things start to deteriorate, that three (3) year, that five (5) year number, that - market
cycle is going to start to deteriorate as well."
After discussion, Mr. Myton advised the Board that, "We do not think this is going to
continue going forward." Board Member Queen asked, "You do not think what is going
to continue?" Mr. Myton said, "The money, the investor confidence flowing into these
lower quality earnings and these smaller names. We do not think over time that that is
going to continue. We think they will come back to the more stable, stronger, more
financially sound companies."
Mr. Myton added, "Our philosophy and our catalyst is this economic recovery has not
changed in a year and a half, we have just gotten prolonged. We really think the key to
economic recovery is going to be business spending." Board Member Queen stated, "I
am concerned about the growth and the top of the line - I want to see some revenue
growth from some of these companies. I am not overly concerned, but I want you to
know that we are somewhat interested or concerned - we would not want the pattern to
continue to be - continue the difference between what the Dow is doing and what our
portfolio is doing to that spread to increase."
Discussion.
CITY OF WINTER SPRINGS
MINUTES
BOARD OF TRUSTEES - PENSION PLAN
REGULAR MEETING - JULY 29, 2003
PAGE30F3
IV. FUTURE AGENDA ITEMS
This Agenda Item was not discussed.
V. REPORTS
Vice Chairman Rozelle asked, "Are we supposed to be reviewing some sort of contract or
something that has been being processed, we discussed it two (2) Meetings ago in
January?" Ms. Louise Frangoul, Director, Finance Department said, "The Pension
documents - we still do not have legal plans yet. The Attorneys are working through
some additional language in the plan and the Actuaries are coming up with different
scenarios. I am hoping maybe in the next couple of months they will actually get
finalized. "
VI. ADJOURNMENT
"I MOVE THAT WE ADJOURN." MOTION BY BOARD MEMBER QUEEN.
SECONDED. DISCUSSION. WITH CONSENSUS OF THE BOARD, THE
MOTION WAS APPROVED.
MOTION CARRIED.
Chairman Nippes adjourned the Meeting at 8:10 p.m.
RESPECTFULLY SUBMITTED:
HOLLY N. PIERSTORFF,
ASSISTANT TO THE CITY CLERK
NOTE: These Minutes were approved at the
Mav 26
.2004 Board of Trustees (Pension Plan) Meeting.