Loading...
HomeMy WebLinkAbout2008 04 29 Board of Trustees Regular MinutesCITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING APRIL 29, 2008 CALL TO ORDER The Board of Trustees Regular Meeting was called to Order by Chairman A. Mark Sardo on Tuesday, April 29, 2008 at 6:33 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairman A. Mark Sardo, present Vice Chairman Michael S. Blake, present Board Member Damon Basco, present Board Member David W. McLeod, absent Board Member Vernon Rozelle, Jr., present Chairman Sardo led the Pledge of Allegiance. A moment of silence followed. Next, Chairman Sardo inquired if there were any Agenda Changes. Assistant to the City Clerk Danielle Harker remarked that there were none. INFORMATIONAL AGENDA INFORMATIONAL 100. General Services Department General Services Director Providing A Summary Of Pension-Related Expenditures For The Quarter Ended March 31, 2008. Mr. Kevin Smith, Director, General Services Department, introduced this Agenda Item to the Board. CONSENT AGENDA CONSENT 200. Office Of The City Clerk Approval Of The January 29, 2008 Regular Meeting Minutes. Chairman Sardo commented, "I would like to Approve the Minutes." "MOVE APPROVAL." MOTION BY VICE CHAIRMAN BLAKE. SECONDED BY CHAIRMAN SARDO. DISCUSSION. CITY OF WINTER SPRINGS, FLORIDA MINUTES 60,4RD OF TRUSTEES REGULAR MEETING -APRIL 29, 2008 PAGE Z OF 8 VOTE: CHAIRMAN SARDO: AYE VICE CHAIRMAN BLAKE: AYE BOARD MEMBER BASCO: AYE BOARD MEMBER ROZELLE: AYE MOTION CARRIED. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 300. Not Used. 400. REPORTS Assistant to the City Clerk Harker asked the Board to update their contact information on the Memberlist. PUBLIC INPUT No one spoke. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used. REGULAR AGENDA REGULAR 600. General Services Department Presentation Of Investment Review Report For The Quarter Ended March 31, 2008. Mr. Dc~>>id West, CFA, Bogdahn Consulting, LLC, 340 West Central Avenue, Suite 300, Winter Haven, Florida: introduced this Agenda Item to the Board. Much discussion on this Agenda Item. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -APRIL 29, 2008 PAGE 3 OF H Regarding Snow Capital Management, LP, Chairman Sardo asked, "And what do you think, we are looking at another Quarter or two (2) on this, on Snow [Capital Management, LP]?" Mr. West replied, "I think short answer yes, I think we'd have to probably be looking at at least another Quarter, probably two (2) Quarters before - we see a work out in -the positions that they've staked." Discussion. Vice Chairman Michael S. Blake asked, "Are you aware of any changes through the month of April [2008]?" Vice Chairman Blake continued, "Any indication from Snow [Capital Management, LP] of any changes in their direction specifically as it relates to financials through the month of April [2008]?" Mr. West answered, "I would need to check that." Mr. West continued, "Short answer no. We would have to get an update for this month." Vice Chairman Blake stated, "I would be interested to know if they have made any -directional changes in the month of April [2008]." Mr. West commented, "We'd be happy to -forward..." Vice Chairperson Blake explained, "...It does not necessarily have to be specific, but especially when it comes down to this sector, I would like to know what they are thinking." Continuing on the same topic, Chairman Sardo asked, "When do you start feeling uncomfortable with Snow [Capital Management, LP]`?" Discussion. Mr. West replied, "They are under the microscope, frankly, from our perspective, so we are watching them closely, but I think we need to give them that -work out period." Further discussion. Mr. Smith said to Chairman Sardo, "I think I'm hearing the Board, obviously expressing concern about Snow's [Capital Management, LP] situation and I think I'm hearing that you all don't want to wait until the next Quarter to hear what's going on - is this something that maybe we need Dave (West) to give us some interim reports between our next Meeting - am I'm hearing that correctly?" Chairman Sardo responded by saying, "From my standpoint -yes." Vice Chairman Blake replied, "I would like to see monthly reports on Snow [Capital Management, LP]." Vice Chairman Blake continued, "I am a little concerned if we are still about atwenty-three percent (23%) exposure in the financial markets."' Continuing, Mr. Smith asked Mr. West, "Is that doable -maybe when you get back to the office, give a thirty (30) day update through April [2008]. Let's talk about it again at the end of May [2008] -the Board will have infornation when we come back to our next Meeting." Chairman Sardo added, "Or send it out to us -via email." Mr. West asked, "If it's agreeable to the Board, perhaps that's the best solution - we would be happy to send you the attribution. And that would be a couple days after month end. And we can put that out on an email - or we can forward that to Kevin (Smith)." Discussion continued. CITY OF W INTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING- APRIL 29, 2008 PAGE 4 OF 8 Mr. West stated, "If we have any issues between now and any formally scheduled Meeting - we will be raising our hand and passing along communication -and if in our opinion requires attention, you will know about it and we'll be available to discuss and meet and take appropriate action." Chairman Sardo stated, "We would like to make sure that you are on the front line as opposed to us at this point; it should come to you first." Mr. West responded by saying, "We very much are." Mr. Smith asked, "Am I hearing a Consensus on that Mr. Chairman?" No objections were noted. Board Member Vernon Rozelle, Jr. clarified, "The beginning of May [2008], beginning of June [2008], we get an email on this, so we are not waiting at the end of -July [2008] for the final review?" Mr. West replied, "Yes, sir. And we'll continue that until you've seen enough information." Discussion continued. Regarding page 12 of 35, Mr. West said, "The hero, really of the Portfolio, again should be noted. The Board's decision to diversify into Treasury Inflation Protection Securities was an outstanding decision." Mr. West continued, "That was a nice piece of diversification and it worked out just - as hoped during a tough environment." Continuing on page 12 of 35, Mr. West noted, "The last piece of diversification in the portfolio which also helped out significantly was the Real Estate Investment. And now fully invested, not for the full Quarter, again remember the -final capital call look place during -the March [2008] Quarter, so there was a cash drag in there for a short period of time. But the American Realty Investment was up 1.19%." Mr. West continued, "Again, a good decision to diversify into institutional quality Real Estate Investment." Next, Mr. West, "Page 13 [of 35], shows for reference if you need to know what the fiscal year returns, we will always include those in there for your reference." Discussion. Regarding page 15 of 35, Mr. West stated, "This entire cash flow reconciliation is anything that's coming in or out of Fifth Third [Bank]. So, anything that might be being paid separately outside of that custodial arrangement, paid separately by the City, is not going to show up here." Mr. Smith asked Mr. West, "I think if the Board was to look at Informational Item `100' that I provided, it shows Investment Manager fees at about twenty-four thousand dollars ($24,000.00). You're showing twenty-six (26) [thousand dollars]; a little bit of a discrepancy there. If you look at -page 10 [of 35] at the top of the page - "Fees". Looks like 1 show eleven (11) and seven (7) which total eighteen (18) in the shaded area; and then two (2) in the shaded area and then four (4) below. That's twenty-four (24), not twenty-six (26)." Mr. West responded by saying, "Let me get the answer to that difference." Much discussion. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING- APRIL 29, 2008 PAGE S OF R Regarding the new format of the "Defined Benefit Plan & Trust for Employees of the City of Winter Springs ls` Quarter" packet, Vice Chairman Blake remarked, "I like it. It looks good." Mr. West commented, "We have total flexibility. This is what we chose to design and show to our clients based on feed back - we can manipulate and change the Report to show whatever you like." Continuing, Mr. West summarized, "As a matter of follow up, I will check on that cash flow discrepancy for the -fee issue there, number one (1), and number two (2) - we will circulate the attribution on Snow [Capital Management, LP] to the Board as -soon as we have it available, we'll forward that to Kevin (Smith) and continue to monitor the situation for the Board." Mr. Smith mentioned, "Based on the Board's previous direction, we've been providing certain information from Dave's (West) Report to the Commission. Previously that was pages 2 and 5. In light of the new format, any thoughts from the Board on continuing to provide that information and if so, which pages?" Chairman Sardo suggested, "(Page) 11 [of 35] and (page) 12 [of 35] look -probably, if you are going to take a snapshot of the entire Presentation, but Dave (West) - is all your information on there?'" Mr. West replied, "I agree." Discussion. Next, Mr. Smith asked Mr. West, "Previously you had provided narrative in your Report and I don't see that. I think that's important to help me put together an Agenda Item. Is there a possibility that you can give me a narrative summary of (page) 11 [of 35] and (page) 12 [of 35]?" Mr. West answered, "As always, we will -follow through and provide that short narrative." Continuing on the same discussion, Vice Chairman Blake added, "I think (page) 15 [of 35] and (page) 16 [of 35] would be good to include as well." Tape USide B Vice Chairman Blake continued, "I think it is important to give them a -good fair picture. And I think when you look at what is on (page) 11 [of 35] and (page) 12 [of 35], add in - (page) 15 [of 35] and (page) 16 [of 35], I think it does a better job of us disclosing then exactly what is going on." Mr. Smith reiterated, "So, (page) 11 [of 35], (page) 12 [of 35], (page) 15 [of 35], and (page) 16 [of 35]?'° No objections were noted. REGULAR 601. General Services Department Discussion Regarding Payment Of Investment Managers Invoices. Mr. Smith commented about reviewing Investment Manager invoices, verifying them for accuracy and not being able to obtain the level of audit that Staff would prefer. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -APRIL 29, 2008 PAGE 6 OF 8 Vice Chairman Blake asked Ms. Michelle Greco, Director, Finance Department, "Have you had any conversations wit11 our Auditors on how they may view this discrepancy between - of the statement going back and coming up with -whatever it happens to be discrepancy?" Ms. Greco replied, "Not yet. No, Sir. We wanted to get your opinion first." Further discussion. Vice Chairman Blake commented, "It's very standard -two (2) entities -calculating two (2) different ways, but they are both accepted in the marketplace." Chairman Sardo asked, "And this is acceptable accounting?" Mr. Smith replied, "Yes, Sir." Mr. Smith continued, "And upon my research and conversations with Dave (West), other entities, cities that do this type of thing. Yes, it's accepted and appears to be standard procedure." "I WOULD LIKE TO MAKE A MOTION TO THE -BOARD THAT WE RECOMMEND TO THE CITY COMMISSION THAT THEY DIRECT STAFF TO -APPROVE PAYMENT OF THE INVESTMENT MANAGER'S FUNDS PURSUANT TO THE STANDARD POLICY OF EITHER SETTLEMENT DATE OR TRADE DATE, IRRESPECTIVE - IT DOES NOT MATTER WHICH ONE, BUT AS LONG AS IT IS CONSISTENT. THAT WILL GIVE THE COMMISSION AN OPPORTUNITY TO MAKE A DIRECTIVE TO THE MANAGEMENT, SO THAT THEN WHEN THE AUDIT HAPPENS -THEY CAN GO BACK AND SAY IT IS A MATTER OF POLICY." MOTION BY VICE CHAIRMAN BLAKE. SECONDED BY BOARD MEMBER ROZELLE. DISCUSSION. VOTE: VICE CHAIRMAN BLAKE: AYE BOARD MEMBER BASCO: AYE BOARD MEMBER ROZELLE: AYE CHAIRMAN SARDO: AYE MOTION CARRIED. In other City business regarding Retirement Specialists Inc., Chairman Sardo asked if the Contract has ever been bid out. Discussion. Vice Chairman Blake noted that it has been ten (10) to eleven (1 1) years that the City has been working with Retirement Specialists, Inc. Chairman Sardo asked, "Is there -any desire on the Board to take a look at these and see - if we would like to pursue -this and take a look at other alternatives to the existing Vendor?" Further discussion. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -APRIL 29, 2008 PAGE 7 OF 8 "I WILL MAKE A MOTION THAT WE REQUEST RFP'S (REQUEST FOR PROPOSAL) FOR REVIEW OF - THE PROFESSIONAL SERVICES - ACTUARIAL AND THE -REQUESTS FOR QUALIFICATION -REGARDING OUR ACTUARIAL FEES AND OUR ACTUARIAL SERVICES THAT ARE RENDERED FOR -THE BOT (BOARD OF TRUSTEES)." MOTION BY BOARD MEMBER ROZELLE. SECONDED BY BOARD MEMBER BASCO. DISCUSSION. VOTE: BOARD MEMBER BASCO: AYE (VOICE VOTE AUDIBLE BY THE CLERK OF THE BOARD) BOARD MEMBER ROZELLE: AYE (VOICE VOTE AUDIBLE BY THE CLERK OF THE BOARD) CHAIRMAN SARDO: AYE VICE CHAIRMAN BLAKE: AYE MOTION CARRIED. Board Member Rozelle asked Mr. West, "Defensive positions, anything we need to recommend for -this summertime; anything you would recommend that we need to look at defensively here for the next three (3) months?" Mr. West replied, "We have no recommendations at this time. We think the current allocation and Portfolio structure is appropriate." Assistant to the City Clerk Harker informed the Board that the next regularly scheduled Board of Trustees Meeting would be on Tuesday, July 29, 2008. Discussion ensued on quorums. "I WILL MAKE A MOTION THAT WE REQUEST THAT THE CLERKS OFFICE, THAT THEY TAKE SPECIAL STEPS - TO DETERMINE WHETHER OR NOT A QUORUM WILL IN FACT WILL BE PRESENT FOR A SCHEDULED MEETING AND THEN IF THEY COULD COMMUNICATE THAT FACT TO THE BOARD MEMBERS, STAFF AND OUTSIDE CONSULTANTS SO THAT EVERYBODY WILL KNOW WHETHER OR NOT WE NEED TO GIVE MORE TIME TO ATTEND THE MEETING THAT MAY OR MAY NOT EXIST." MOTION BY VICE CHAIRMAN BLAKE. SECONDED BY BOARD MEMEBR BASCO. DISCUSSION. VOTE: BOARD MEMBER ROZELLE: AYE CHAIRMAN SARDO: AYE VICE CHAIRMAN BLAKE: AYE BOARD MEMBER BASCO: AYE MOTION CARRIED. CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING -APRIL 29, 2008 PAGE 8 OF 8 Regarding keeping the Meeting time at 6:30 p.m., Chairman Sardo asked, "Is this a good time?" No objections were noted. ADJOURNMENT Chairman Sardo adjourned the Regular Meeting at 7:38 p.m. RESPECTFULLY SUBMITTED: D IELLE HARKER ASSISTANT TO THE CITY CLERK NOTE: These Minutes were approved at the July 22, 2008 Board of Trustees Regular Rescheduled Meeting.