HomeMy WebLinkAbout2006 01 31 Board of Trustees Regular Minutes
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
BOARD OF TRUSTEES - PENSION PLAN
REGULAR MEETING
JANUARY 31, 2006
CALL TO ORDER
The Board of Trustees - Pension Plan Regular Meeting was called to order by Chairman
Robert Nippes on Tuesday, January 31, 2006 at 6:31 p.m. in the City Commission
Cha.n1bers of the Municipal Building (City Hall, 1126 East State Road 434, Winter
Springs, Florida 32708).
Roll Call:
Chairman Robert Nippes, present
Board Member Guy DeMaio, present
Board Member Byron Giltz, present
Board Member Vernon Rozelle, Jr., present
Board Member A. Mark Sardo, present
PUBLIC INPUT
No one spoke.
AWARDS AND PRESENTATIONS
AWARDS AND PRESENTATIONS
100. Office Of The City Clerk
ADD-ON
Presentation Of Advisory Board Orientation Packets.
Mrs. Debbie Franklin, Deputy City Clerk, reviewed the Orientation Packets with the
Advisory Board Members.
PUBLIC HEARINGS AGENDA
PUBLIC BEARINGS
200. None
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
BOARD OF TRUSTEES
REGULAR MEETING - JANUARY 31, 2006
PAGE 20F 7
.. AGENDA NOTE: THE FOLLOWING REGULAR AGENDA ITEMS
WERE DISCUSSED IN THE ORDER AS DOCUMENTED. ..
REGULAR AGENDA
REGULAR
303. Finance Department
Review Of TRsco Capital Management Financial Statements.
Ms. Diane Garcia, Trusco Capital Management Financial Representative, Trusco
Capital Management, 300 South Orange Avenue, Suite 1600, Orlando, Florida:
introduced herself to the Advisory Board Members.
Ms. Molly A. Balcom, Investment Ofjicer, Trusco Capital Management, 300 South
Orange Avenue, Suite 1600, Orlando, Florida: introduced herself to the Board Members
and gaye a summary of the Investment Review Booklets.
Board Member Byron Giltz said, "I would suspect - September 2004 and 2005 there
was some information for the recap fund for that year and the returns." Ms. Halcom
stated, "You would like to see the Performance information at the end of the fIScal
year?" Board Member Giltz added, "Yes, the last two (2) years."
Furthermore, Board Member Giltz said, "I do not care if it is done annually or
quarterly - just so that it ends at theflScal year." Ms. Halcom stilted, {{Certainly. 1 can
put it together and 1 usually communicate with Michelle [Greco, Director, Finance
Department}. Would that be okay if 1 sent it to you?" Board Member Giltz stated,
"Alright. Thank you." There were no objections noted by the Advisory Board
Members. '
Tape lISide B
Discussion.
REGULAR
302. Finance Department
ADD-ON
Board Training: Pension Investment Policy Statement Overview Presented By
Steven Alexander, Of Public Financial Management, Inc., Pension Investment
Advisor.
Mr. Steven Alexander, CCM, Pension Investment Advisor, Public Financial Management,
Inc., 201 South Orange Avenue, Suite 720, Orlando, Florida: presented information on
the Florida Statutes regarding the Guidelines for the Public Investments.
CITYOFwnITERSPIDNGS,noroDA
MINUTES
BOARD OF TRUSTEES
REGULAR MEETING-JANUARY 31, 2006
PAGE 3 OF7
Discussion ensued regarding protection of the Plan.
Regarding Continued Education, Mr. Alexander stated, "They have annual Seminars. I
am going to make a list for you and give it to Michelle [Greco]. I will have that list and I
will email it to her." Mr. Alexander added, "Always feel free to give me a call if you
have any questions. I know it was a brief overview, but if you have any questions, please
let me know."
Deputy Mayor Michael S. Blake introduced himself for the Record and stated, "In the
Investment Policy Statement it talks about measuring the performance based on some risk
and return model, but I did not see anything in there that would help the Board plug in a
tool to determine when it is time to go into a different direction. Could you address that?
Because from some of the questions that I have heard tonight and some of the numbers
that I have seen to my way of thinking, it might suggest that a closer look is necessary in
certain areas."
Mr. Alexander stated, "There are some models that would be helpful to look at as far as
what is a Performance doing for the various Portfolios regarding their individual
benchmarks." Discussion.
Mr. Ronald W. McLemore, City Manager noted the Management Teams. Discussion.
REGULAR
300. Finance Department
Board Training: Pension Plan Overview Presented By Jim Linn, Of Lewis,
Longman & Walker, P.A., Pension Attorney For The City Of Winter Springs.
Sandra Turner Of Retirement Plan Specialists, Inc., Actuary And Consultant For
The City's Pension Plan, Will Also Assist.
Ms. Sandra R. Turner, CPC, QP A, Retirement Plan Specialist, Inc., 815 Eyrie Drive,
Suite 4, Oviedo, Florida: presented the History of the Actuarial Valuation and Annual
Report.
Ms. Turner stated she would provide the Advisory Board Members with a copy of the
last Actuary Study and stated, "Do you want the GASB (Gol1emment Accounting
Standards Board) Report and the Actuary Study, or both?" Board Member Byron
GUtz stated, "Both." There were no objections from the other Advisory Board.
Members.
Manager McLemore explained the History of the Pension Plan to the Advisory Board
Members.
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
BOARD OF TRUSTEES
REGULAR MEETING - JANUARY 31, 2006
PAGE40F7
Mr. James W. Linn, Attorney, Lewis, Longman & Walker, P.A. 125 South Gadsden Street,
Suite 300, Tallahassee, Florida: gave an overview of the Retirement Plan and stated, "I
think that your Plan is - too long and - too complicated and could be written a lot more
simply and with a lot fewer pages. 1 have made the recommendation to Mr. McLemore
that we do this Plan -the City of Winter Springs Plan, like most other Governmental
Plans, and try to update and more accurately reflect the intent of the City Commission.
Something, 1 think, is going to be happening here in the next few months."
Tape 21Side A
Discussion ensued regarding Conflicts of Interest and Fiduciary responsibilities.
Attorney Linn reviewed the "Public Pension Trustee Handbook".
Discussion.
REGULAR
301. Finance Department
Amendment To The Pension Plan Presented By Jim Linn, Of Lewis, Longman And
Walker, P.A., Pension Attorney, In Reference To Mandatory Pension Plan
Distributions.
Attorney Linn presented the Amendment to the Mandatory Pension Plan Distributions.
Discussion.
Deputy Mayor Blake stated, "Why don't you change it to one ~ousand [dollars]
($1,000.00)? Make it mandatory - one thousand dollars?" Discussion;
"I MAKE A MOTION TO REFLECT [MANDATORY PENSION PLAN
DISTRIBUTIONS] TO AMEND - TO REFLECT ONE THOUSAND [DOLLARS]
($1,000.00) AND THIRTY-FIVE HUNDRED [DOLLARS] (53,500.00)." MOTION
BY BOARD MEMBER SARDO. SECONDED. DISCUSSION. WITH
CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED.
MOTION CARRIED.
Manager McLemore stated, "Are we going to ask Jim [Linn} to come back to our next
Meeting?" No objections were noted by the Advisory Board Members.
Next, Manager McLemore explained the Plan Amendment recommendations.
CITY OF WINTER SPRINGS, FLORIDA
MINUTES
BOARD OF TRUSTEES
REGULAR MEETING - JANUARY 31, 2006
PAGE50F7
Tape 2ISide B
"I MOVE THAT WE OBTAIN JIM LINN AS OUR ATTORNEY TO UPDATE
THE PLAN DOCUMENTS." MOTION BY BOARD MEMBER GILTZ.
SECONDED BY BOARD MEMBER SARDO. DISCUSSION. WITH
CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED.
MOTION CARRIED.
Manager Mclemore stated, "He will come back to you and you will review with Jim
[Linn]. If you adopt the recommended changes, they will be forwarded to the [City]
Commission with the recommendation."
Attorney Linn stilted, "It will be about sixty (60) days - by your next quarterly Meeting
and I can have the document a couple of weeks ahead of time. " There were no
objections to meeting with Attorney Linn to go over the changes at the next scheduled
Meeting.
Discussion ensued regarding a "Third-Party, Investment Consultant".
"I MAKE A MOTION TO ENGAGE IN THE PROCESS - CARRY THE
SERVICES OF AN INVESTMENT ADVISOR OR A PENSION CONSULTANT
TO PROVIDE TmRD-PARTY REVIEW ON A QUARTERLY BASIS."
MOTION BY BOARD MEMBER SARDO. SECONDED BY BOARD MEMBER
ROZELLE. DISCUSSION.
BOARD MEMBER SARDO STATED, "SHOULD ALSO BE ADVICE TO
WHICH MEASURE TO GO TOWARD - WHAT WE SHOULD BE DOING IN
COMPARISON."
BOARD MEMBER GILTZ STATED, "IT SHOULD BE ALL INCLUSIVE. I AM
SAYING THERE SHOULD BE A PENSION INVESTMENT CONSULTANT
WImOUT SPECIFYING ANY DUTY."
MANAGER McLEMORE STATED, "I WOULD BE CAREFUL WITH THAT. IT
IS TOO GENERAL. YOU CAN NOT PINPOINT WHAT YOU WANT. YOU
WANT TO MAKE RECOMMENDATIONS ON THE INVESTMENTS."
BOARD MEMBER ROZELLE STATED, "HAS TO HAVE EXPERTISE _
INTERACTING WITH ACTUARIAL." WITH CONSENSUS OF THE BOARD,
THE MOTION WAS APPROVED.
MOTION CARRIED.
CITY OF WINTER SPRINGS, FLORIDA
MINOTES
BOARD OF TRUSTEES
REGULAR MEETING - JANUARY 31, 2006
PAGE60F7
.. AGENDA NOTE: THE FOLLOWING CONSENT AGENDA ITEM WAS
DISCUSSED NEXT, AS DOCUMENTED. ..
CONSENT AGENDA
CONSENT
400. Office Of The City Clerk
Approval Of The October 25, 2005 Regular Meeting Minutes.
Regarding the Minutes from the October 25,2005 Meeting, Manager Mclemore stated,
"There are tapes available if there is a special need - if you would like to make copies of
that tape." Board Member A. Mark Sardo stated, "Was that the Meeting where they
discussed - International - higher number?" Chairman Nippes added, "That was the
previous Meeting."
CHAIRMAN NIPPES STATED, "IS THERE A CONSENSUS TO HAVE COPIES
OF TAPES MADE FROM THE LAST MEETING?"
"I MOVE THAT WE HAVE TAPES - PROVIDED TO THE MEMBERS."
MOTION BY BOARD MEMBER SARDO. SECONDED. DISCUSSION. WITH
CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED.
MOTION CARRIED.
.:..:. AGENDA NOTE: THE FOLLOWING REGULAR AGENDA ITEM WAS
DISCUSSED, AS DOCUMENTED, FOLLOWED BY THE REST OF THE
AGENDA. .:. .:.
REGULAR AGENDA
REGULAR
304. Office Of The City Clerk
Election Of Officers.
"I WOULD LIKE TO MAKE A MOTION TO KEEP OUR CHAIRMAN (ROBERT
NIPPES] FOR THE NEXT YEAR." MOTION BY BOARD MEMBER ROZELLE.
SECONDED BY BOARD MEMBER GILTZ. DISCUSSION. WITH CONSENSUS
OF THE BOARD, THE MOTION WAS APPROVED.
MOTION CARRIED.
CITY OF WlNTER SPRINGS, FLORIDA
MINUTES
BOARD OF TRUSTEES
REGULAR MEETING - JANUARY 31, 2006
PAGE70F7
"I MAKE A NOMINATION FOR MARK [SARDO] TO BE THE. VICE
CHAIRMAN." MOTION BY BOARD MEMBER ROZELLE. SECONDED BY
BOARD MEMBER GILTZ. WITH CONSENSUS OF THE BOARD, THE MOTION
WAS APPROVED.
MOTION CARRIED.
INFORMATIONAL AGENDA
INFORMATIONAL
500. None
600. REPORTS
No Reports were given.
FUTURE AGENDA ITEMS
None were noted.
ADJOURNMENT
"I MOVE THAT WE ADJOURN." MOTION. SECONDED. WITH
CONSENSUS OF THE BOARD, THE MOTION WAS APPROVED.
MOTION CARRIED.
Chairman Nippes adjourned the Meeting at approximately 9:13 p.m.
RESPECTFULLY SUBMI1TED:
~~
DEBBIE FRANKLIN
DEPUTY CITY CLERK
NOTE: These Minutes were approved at the
April 2S
,2006 Board of Trustees Regular Meeting.