Loading...
HomeMy WebLinkAbout2013 08 13 Consent 200 Unapproved Minutes from the Regular (Rescheduled) Meeting on February 21, 2013 1=1 CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES CZ4 REGULAR MEETING FEBRUARY 21, 2013 .•=3 (RESCHEDULED FROM TUESDAY, FEBRUARY 12, 2013) CALL TO ORDER The Regular Meeting of Thursday, February 21, 2013 of the Board of Trustees was called to Order by Vice Chairperson Barbara Watkins at 5:31 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Maria Fair, absent Vice Chairperson Barbara Watkins, present Board Member Shelly Burlon, present Board Member Brian Fricke, present Board Member Frank M. Mundo, present Assistant to the City Clerk Sarah Hart, present A moment of silence was held, followed by the Pledge of Allegiance. AGENDA NOTE: "REGULAR AGENDA — PART I" (AGENDA ITEMS "600" AND "601" WERE DISCUSSED CONCURRENTLY, FOLLOWED BY THE REST OF THE AGENDA IN THE ORDER AS DOCUMENTED. •+ REGULAR AGENDA- PART I REGULAR 600. Office Of The City Clerk Requesting An Election Of Chairperson Be Held For 2013. REGULAR 601. Office Of The City Clerk Requesting An Election Of Vice Chairperson Be Held For 2013. Vice Chairperson Watkins said "I suggest that the Nominations or Elections of Officers — since Maria (Fair) is not here—that we defer that to the next meeting." CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES raQ REGULAR MEETING-FEBRUARY 21,2013 (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) C=O PAGE 2 OF 8 "I WOULD LIKE TO MAKE A MOTION THAT WE DEFER THE ELECTION C14 OF CHAIRPERSON AND VICE CHAIRPERSON UNTIL THE NEXT MEETING." MOTION BY VICE CHAIRPERSON WATKINS. SECONDED BY BOARD MEMBER BURLON. DISCUSSION. VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER BURLON: AYE BOARD MEMBER MUNDO: AYE MOTION CARRIED. ++ AGENDA NOTE: "PUBLIC INPUT" WAS OPENED NEXT, AS DOCUMENTED, FOLLOWED BY THE REST OF THE AGENDA++ PUBLIC INPUT Vice Chairperson Watkins opened "Public Input". No one spoke. Vice Chairperson Watkins closed "Public Input". INFORMATIONAL AGENDA INFORMATIONAL 100. Finance And Administrative Services Department Providing A Summary Of The Pension-Related Expenditures For The First Quarter Of Fiscal Year 2013. Mr. Shawn Boyle, Director of Finance and Administrative Services Department briefly introduced this Agenda Item and offered to supply the Board of Trustee Members with copies of individual invoices from the report and confirmed that all of the figures were current. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 C:=4 (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) carou PAGE 3 OF 8 1/111 C:=0 CONSENT AGENDA CONSENT M.4 1=Lari 200. Office Of The City Clerk rozn Requesting Approval Of The November 13, 2012 Board Of Trustees Regular Meeting Minutes. With regards to the November 13, 2012 Regular Meeting Minutes, Vice Chairperson Watkins asked"Do I have a Motion to accept them?" "SO MOVED." MOTION BY BOARD MEMBER FRICKE. SECONDED BY BOARD MEMBER MUNDO. DISCUSSION. VOTE: VICE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER BURLON: AYE BOARD MEMBER MUNDO: AYE MOTION CARRIED. CONSENT 201. Office Of The City Clerk Requesting Approval Of The December 4, 2012 Board Of Trustees Regular Meeting Minutes. Vice Chairperson Watkins requested a Motion to approve the December 4, 2012 Special Meeting Minutes. "I'LL MAKE THAT MOTION." MOTION BY BOARD MEMBER MUNDO. SECONDED BY BOARD MEMBER FRICKE. DISCUSSION. VOTE: VICE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER BURLON: AYE BOARD MEMBER MUNDO: AYE MOTION CARRIED. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 300. Not Used CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES 0=1 REGULAR MEETING-FEBRUARY 21,2013 Irar" (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) PAGE 4 OF 8 C=0 400. REPORTS No Reports were given. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used ++ AGENDA NOTE: "REGULAR AGENDA— PART II" (AGENDA ITEMS "602" AND "603" WERE DISCUSSED TOGETHER, FOLLOWED BY THE REST OF THE AGENDA IN THE ORDER AS DOCUMENTED. • •:* REGULAR AGENDA - PART II REGULAR 602. Finance And Administrative Services Department Requesting the Board of Trustees receive from The Bogdahn Group the Quarterly and Annual Investment Return Report, and to enter into discussion. REGULAR 603. Finance And Administration Services Department Requesting The Board of Trustees Receive From The Bogdahn Group The Domestic Equity Liquidation Report, And To Enter Into Discussion. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: gave the presentation to the Board of Trustees, mentioned an updated listing of assets as of February 21, 2013, and further explained that "The transition did occur in the first week of January, actually, I think it was completed January 9th, (2013). At the Special Meeting (December 4, 2012) of course, the Advisory Board and subsequently approved by Commission, that we will be removing or eliminating our Active Management of Domestic Equity; and we will be transitioning to a low cost — in this case the Vanguard Total Stock Index Fund. CAPIS (Capital Institutional Services, Inc.) was retained as the Transition Manager for this." Continuing, Mr. West noted that he had spoken with CAPIS (Capital Institutional Services, Inc.), "And they suggested that we do the transition once trading activity starts picking up in the first or second week of January. So, that's what we did and as a result everything moved over." CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 rT1 (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) Fey PAGE 5 OF 8 Continuing with the presentation, Mr. West noted the "DGHM (Dalton, Greiner, Hartman, Maher& Co. LLC) Portfolio does have some residual cash in it. I will get with 02.1+ the custodian, because in their direction, they were directed to close both the DGHM (Dalton, Greiner, Hartman, Maher & Co. LLC) and the Growth Manager, the Lateef (Asset Management Equity) account. So, they should be moving these dollars to the R&D (Revenues and Disbursements) account and closing that out. But basically, the Lateef account was closed out, so that's no longer there." Further comments. Vice Chairperson Watkins inquired "When did you do the transition?" Mr. West replied "The Mutual Funds settlement was January 9th (2013)." Next, Vice Chairperson Watkins asked, `Was the new Investment Policy presented at that meeting?" Mr. West responded, "Yes. The Policy was presented, approved, and that was also forwarded to Council and approved." Vice Chairperson Watkins requested a copy from Mr. Shawn Boyle, Director, Finance and Administrative Services Department who replied that he would forward her a copy. Next, Mr. West gave an update on the Quarterly Investment Return Report; referenced efforts made by the United States Treasury; and noted different performing funds. Mr. West then covered the cash flow of the Total Fund Portfolio on page 20 of the report and noted, "The Fund opened the fiscal year with twenty six million eight hundred and eighty-six thousand one hundred thirty-eight dollars ($26,886,138.00). The various rebalancing that took place during the period are under the `Net Transfer' line. `Contributions' for the period were six hundred and forty-one thousand one hundred and fifty-two dollars ($641,152.00). Pensioner `Distributions' were four hundred and twenty-one thousand six [hundred] four [dollars] ($421,604.00). Again, we are cash flow positive. This Plan does take in more than it pays out in benefits and contributions. `Investment Management Fees' were sixty-one thousand eight hundred and thirty-two dollars ($61,832.00). Other line item expenses for administration of the Plan was sixteen thousand five hundred and forty three [dollars] ($16,543.00). Investment Earnings broken down into `Income' which we earned one hundred and eighty-six thousand six hundred and ninety-five dollars ($186,695.00). Modest `Appreciation' for the period — three hundred and twenty one thousand five [hundred] fifty-four [dollars]. ($321,554.00). So, right around five hundred thousand [dollars] ($500,000.00) of investment earnings gave us a twenty-seven million five hundred and thirty five thousand and five hundred sixty dollars ($27,535,560.00) ending balance." With further comments, Mr. West summarized, "We have no change recommendations. We just made a big change; so, I wanted to make sure you were updated on that. Our recommendation is to let the Portfolio run as rebalanced." CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 rarm (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) PAGE b OF 8 Comments followed on the Bond Market, to which Board Member Frank Mundo inquired, "Where is our exposure in here, in terms of spreads widening and longer dated treasuries in particular, and then longer dated assets? How is this going to look if ten (10) year yields go from two to four percent(2-4%), let us just say; and, then - the second part is, depending on what your answer is, what can we do to maybe get ahead of that to protect ourselves a bit?" Mr. West answered, "The Galliard mandate is against the intermediate benchmark. So, since that has a shorter duration, no exposure to long dated thirty(30) year maturity securities, that is going to have obviously, it's going to have less exposure." Further discussion continued on Galliard and their role in the Bond Market, aggregate benchmarks, Bond exposure and the Galliard TIPS (Treasury Inflation Protection Securities) fund, and real estate markets. Next, Board Member Mundo asked Mr. West, "Do you have any experience with or in your arsenal or have you done any work with `Floating Rate Loan' funds? Do you have any opinion on those as perhaps a way to hedge some of this interest rate risk?" Mr. West replied, "Yes. We've got some alternative Managers that have been active - they're very informed. And that would be an interesting area to look at." Continuing, Board Member Mundo noted, "Am I able to suggest that maybe for our next meeting we can have a presentation on that? Because it seems to me that by the time rates start going up, if we decide to do something, it is too late. If we have the knowledge in hand, we are able to act sooner." No objections were noted. Mr. West responded, "I need to check and make sure that the Managers that we're working with, because— there would be alternative wrappers (investments), if you will. I need to make sure that we would qualify for minimums funding for that. I'm not sure we would." Board Member Mundo added, "You mean in terms of the amount of money that we would move into one of those?" Mr. West then said, "Let's say we move a five percent total asset allocation or something like that, honestly, I'm not sure we would make minimums for that; but that's something.." Member Mundo suggested, "...But we could buy an ETO (Exchange Traded Fund)... Mr. West said, "...I'd be more than happy to check on." Board Member Mundo continued, "...Or we could buy an Index Fund without having to worry about that correct?" Mr. West remarked, "That is another avenue." Board Member Mundo stated, "So, maybe we can add that to the mix and if you find that we're not able to get an active Manager, then we can participate or at least look at participating." Mr. West noted, "I'd be happy to take that back to my research guys— and come back at the next meeting." Discussion. CITY OF WINTER SPRINGS,FLORIDA MINUTES C=I BOARD OF TRUSTEES REGULAR MEETING—FEBRUARY 21,2013 rs2= (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) I. PAGE 7 OF 8 C=0 Board Member Fricke inquired if the Board of Trustees could receive a presentation from Galliard. Mr. West replied "Absolutely. I will get Galliard to the next meeting. It would C=1.4 be appropriate for the discussion." REGULAR 604. Finance And Administration Services Department Requesting The Board of Trustees Receive An Update Regarding the Pension Administrative Policy Guidelines, And To Enter Into Discussion. Mr. Boyle began his presentation on this Agenda Item and noted that in 2011 and 2012, "We had some official updates to the Pension, we changed benefit structures. Sitting behind the Pension, is about a hundred (100)page administrative guide that basically says here are the rules for the Pension; and we've never updated that. So, we have a very stale administrative guide that currently doesn't include the new Ordinances and the new pension structure that we put in place. So, I just wanted to bring forward to all of you and basically ask permission to spend an approximate — three to seven thousand dollars ($3,000.00-$7,000.00) to have this document updated. We would be using Jim Linn's firm (Lewis, Longman & Walker, P.A.) to do so. And, it probably needs to be done fairly quickly." Further comments followed. Board Member Mundo asked why the wide range in cost to have the Policy Guideline updated. Mr. Boyle replied "There is a lot of `ERISA (Employee Retirement Income Security Act) Law' incorporated into our Pension. Well, as you may or may not know, we're not bound by that, because we're a government agency." Further, Mr. Boyle said that as agreed to by Mr. Linn, "We want to go ahead and kind of rewrite the entire manual from scratch." Board Member Burlon asked about the summary plan description, and if it also needed to be updated, to which Mr.. Boyle replied that it likewise needed to be updated. Next, with brief discussion on 175/185 Plans; Mr. Linn's expertise, and Firefighters , Mr. Boyle said to Board Member Burlon, "I can go back and give you some history about how the plan separated and I'll give you a little bit of history on that.". Comments followed on costs for the review and possible timeline. Mr. Boyle stated, "I would expect him to do it in the timeframe of about 120 days." "I MOVE TO APPROVE SEVEN THOUSAND DOLLARS ($7,000.00) FOR THE UPDATED PENSION MANUAL." MOTION BY BOARD MEMBER MUNDO. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES r=a REGULAR MEETING—FEBRUARY 21,2013 (RESCHEDULED FROM TUESDAY,FEBRUARY 12,2013) PAGE 8 OF 8 VOTE: BOARD MEMBER MUNDO: AYE giveti VICE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER BURLON: AYE MOTION CARRIED. Lastly, Mr. Boyle addressed the Board on the Actuarial Report and stated, "We're about sixty (60) days out from getting the 2012 Actuarial Report and at that meeting, when he completes it - I will distribute it to you and at that meeting, I will have Larry (Wilson, Gabriel Roeder Smith & Company), if it's your pleasure - I'll have Larry (Wilson) come in and go through the Actuarial Report, let you know where we stand overall, as far as funding. PUBLIC INPUT Vice Chairperson Watkins opened "Public Input". No one addressed the Board of Trustees. Vice Chairperson Watkins closed "Public Input". ADJOURNMENT Vice Chairperson Watkins adjourned the Regular Meeting 6:17 p.m. RESPECTFULLY SUBMITTED: ANDREA LORENZO-LUACES, MMC CITY CLERK AND SARAH I HART, DEPUTY CITY CLERK NOTE: These Minutes were Approved at the ,2013 Board of Trustees Regular Meeting.