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HomeMy WebLinkAbout2013 02 21 Board of Trustees Regular (Rescheduled) Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING FEBRUARY 21, 2013 (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 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" WAS DISCUSSED NEXT,AS DOCUMENTED, FOLLOWED BY THE REST OF THE AGENDA+• REGULAR AGENDA- PART I REGULAR 600. Office Of The City Clerk Requesting An Election Of Chairperson Be Held For 2013. In reference to Agenda changes, 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." "I WOULD LIKE TO MAKE A MOTION THAT WE DEFER THE ELECTION OF CHAIRPERSON AND VICE CHAIRPERSON UNTIL THE NEXT MEETING." MOTION BY VICE CHAIRPERSON WATKINS. SECONDED BY BOARD MEMBER BURLON. DISCUSSION. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 PAGE 2 OF 8 VOTE: BOARD MEMBER WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER BURLON: AYE BOARD MEMBER MUNDO: AYE MOTION CARRIED. REGULAR 601. Office Of The City Clerk Requesting An Election Of Vice Chairperson Be Held For 2013. Was previously addressed under Agenda Item '600'. •+ 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 spoke on this Agenda Item; offered to supply the Board of Trustee Members with copies of individual invoices from the report; and that all of the figures were current. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 PAGE 3 OF 8 CONSENT AGENDA CONSENT 200. Office Of The City Clerk Requesting Approval Of The November 13, 2012 Board Of Trustees Regular Meeting Minutes. In 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 REGULAR MEETING-FEBRUARY 21,2013 PAGE 4 OF 8 400. REPORTS No reports were given. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used 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. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: gave the presentation to the Board of Trustees and mentioned an updated listing of assets as February 21, 2013. He further explained "The transition did occur in the first week of January, 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. 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 and in my conversations with CAPIS (Capital Institutional Services, Inc.), 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." 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 the custodian, because 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 (Revenue and Disbursement) account." Further comments. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 PAGE 5 OF 8 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?" to which Mr. West replied "Yes. The policy was presented, approved and that was also forwarded to council and approved." Subsequently, Vice Chairperson Watkins requested a copy from Mr. Boyle 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 o four ($421,604.00). Again, we are cash flow positive. This plan does take in more than it pays out in benefits and contributions. 'Management Fees' were sixty one thousand eight hundred and thirty two dollars ($61,832.00). 'Other expenses' for administration of the plan was sixteen thousand five hundred and forty three ($16,543.00). Investment Earnings broken down into 'Income' which we earned one hundred eighty six thousand six hundred and ninety five dollars ($186,695.00). There was modest 'Appreciation' for the period — three hundred and twenty one thousand five fifty four ($321,554.00). So, right around five hundred thousand ($500,000.00) of investment earnings gave us a twenty seven million five hundred and thirty five thousand and five hundred sixty dollar ($27,535,560.00) ending balance." Brief comments on the Annual Investment Return Report. Board Member 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 year yields go from 2% to 4%? Then, depending on what your answer is, what can we do to get ahead of that to protect ourselves?" 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 less exposure." Much discussion on Galliard and their role in the Bond Market; the Galliard TIPS fund; and the real estate markets. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 PAGE 6 OF 8 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? And do you have any opinion on those and 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. That would be an interesting area to look at." Continuing, Board Member Mundo "Am I able to suggest that maybe for our next meeting we can have a presentation on that? It seems to me that by the time rates start going up, if we decide to do something, it's too late." Mr. West answered "I need to check and make sure that the managers we are working with. It would be alternative wrappers, if you will. I need to make sure that we would qualify for minimums— funding for that. I'm not sure." Then, Board Member Mundo mentioned the possibility of purchasing indexed funds and Mr. West said "I would be happy to take that back to my research guys." Discussion. 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 be appropriate for the 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. Was covered under discussion of Agenda Item '602'. 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 presented the item. He noted that three official updates to the pension, or major changes to the benefit structure, had taken place in 2011 and 2012. Further explaining, Mr. Boyle said "Behind the pension, is about a hundred (100) page administrative guide that basically says here are the rules for the pension. We have 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. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 21,2013 PAGE 7 OF 8 So, I 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 it updated. We would be using Jim Lynn's firm to do so. It probably needs to be done fairly quickly." 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. As you may or may not know, we are not bound by that, because we are a government agency. It is causing a lot of complications. So, we want to rewrite the entire manual from scratch." Board Member Burlon asked if Mr. Boyle had a summary plan description and if it also needed to be updated to which Mr. Boyle replied "We do have a summary plan description" and concurred that it likewise needed to be updated. Next, discussion ensued on 175 and 180 Pension Plans; Attorney Jim Lynn assisting the City of Winter Springs, the Florida League of Cities, and other municipalities; and the fire fighters pension. Board Member Bur lon asked how quickly the guideline could be written and Mr. Boyle believed roughly 120 days or so. Lastly, Vice Chairperson Watkins asked for Motion. "I MOVE TO APPROVE SEVEN THOUSAND DOLLARS ($7000.00) FOR THE UPDATED PENSION MANUAL." MOTION BY BOARD MEMBER MUNDO. SECONDED BY BOARD MEMBER WATKINS. DISCUSSION. VOTE: BOARD MEMBER MUNDO: AYE VICE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE BOARD MEMBER BURLON: AYE MOTION CARRIED. Mr. Boyle mentioned to the Board of Trustees that in approximately 60 days he should receive the 2012 Actuarial Report and it will be distributed. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING—FEBRUARY 21,2013 PAGE 8 OF 8 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. I\ R4PECTFi(I�I,�,Y SOVMITTED• 1 111' 71----\ i 11,:t01 A' A 'T, DEPUTY CITY CLERK LiI j NOTE: These Minutes were Approved at the August 13,2013 Board of Trustees Regular Meeting.