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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.