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HomeMy WebLinkAbout2015 02 10 Board of Trustees Regular Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING FEBRUARY 10, 2015 CALL TO ORDER The Regular Meeting of Tuesday, February 10, 2015 of the Board of Trustees was called to Order by Chairperson Barbara Watkins at 5:30 p.m. in the Commission Chambers of the Municipal Building (City Hall, 1126 East State Road 434, Winter Springs, Florida 32708). Roll Call: Chairperson Barbara Watkins, present Vice-Chairperson Frank Mundo, present Board Member Brian Fricke, present Board Member Geoff Kendrick, present Board Member Robin Paris, arrived at 5:39 p.m. Assistant to the City Clerk Antonia Della Donna, present A moment of silence was followed by the Pledge of Allegiance. No changes to the Agenda were mentioned. REGULAR AGENDA- PART I REGULAR 600. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Hold An Election For The Position Of Chairperson For Calendar Year 2015. FOR THE POSITION OF CHAIRPERSON, "I WOULD LIKE TO NOMINATE BARBARA (WATKINS)." MOTION BY BOARD MEMBER FRICKE. SECONDED BY VICE-CHAIRPERSON MUNDO. DISCUSSION. Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 10,2015 PAGE 2 OF 7 VOTE: BOARD MEMBER FRICKE: AYE CHAIRPERSON WATKINS: AYE VICE-CHAIRPERSON MUNDO: AYE BOARD MEMBER KENDRICK: AYE MOTION CARRIED. REGULAR 601. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Hold An Election For The Position Of Vice-Chairperson For Calendar Year 2015. ON THE MATTER OF ELECTING A VICE-CHAIRPERSON, "I NOMINATE — (FRANK) MUNDO." MOTION BY BOARD MEMBER KENDRICK. SECONDED BY CHAIRPERSON WATKINS. DISCUSSION. Chairperson Watkins opened "Public Input". No one addressed the Board. Chairperson Watkins closed "Public Input". VOTE: VICE-CHAIRPERSON MUNDO: AYE BOARD MEMBER FRICKE: AYE CHAIRPERSON WATKINS: AYE BOARD MEMBER KENDRICK: AYE MOTION CARRIED. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA INFORMATIONAL 200. Not Used CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 10,2015 PAGE 3 OF 7 PUBLIC INPUT Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". CONSENT AGENDA CONSENT 300. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Review And Approve The Tuesday,May 13, 2014 Board Of Trustees Regular Meeting Minutes. "I WILL MAKE A MOTION THAT WE APPROVE THE MAY 13TH, 2014 MINUTES." MOTION BY VICE-CHAIRPERSON MUNDO. SECONDED BY CHAIRPERSON WATKINS. DISCUSSION. VOTE: CHAIRPERSON WATKINS: AYE BOARD MEMBER KENDRICK: AYE VICE-CHAIRPERSON MUNDO: AYE BOARD MEMBER FRICKE: AYE MOTION CARRIED. CONSENT 301. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Review And Approve The Wednesday, November 12, 2014 Board Of Trustees Special Meeting Minutes. "MOTION TO ACCEPT (NOVEMBER 12, 2014 BOARD OF TRUSTEES SPECIAL MEETING MINUTES)." MOTION BY CHAIRPERSON WATKINS. SECONDED BY BOARD MEMBER KENDRICK. DISCUSSION. VOTE: BOARD MEMBER KENDRICK: AYE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE VICE-CHAIRPERSON MUNDO: AYE MOTION CARRIED. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 10,2015 PAGE 4 OF 7 400. REPORTS No Reports were given. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used REGULAR AGENDA- PART II REGULAR 602. Finance And Administration Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The Fourth Quarter Investment Return Report, And To Enter Into Discussion. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: gave a brief overview of the Investment Returns for the Fourth Quarter and what had impacted them, including the price of oil, appreciating dollars, and declining interest rates. Mr. West noted, "We ended up with some pretty nice, positive Equity Returns and some positive Bond Market returns." Continuing, Mr. West went on to cover some high points regarding their investment spaces and mentioned the Developed Country Foreign Equity, emerging markets, the S&P (Standard & Poor's 500), and capitalization. Mr. West remarked, "The Barclays US Aggregate, our proxy for investment grade bonds, actually earned 1.8% which is considerably more than the coupon." On Page 20 of the "Investment Return Report", Mr. West pointed out that the Total Fund (Net) of all Investment Manager Fees earned 2.5% for the quarter and mentioned that the City has increased its Material Equity Exposure over the last few years. Related to this, Mr. West commented, "That's been a very favorable asset allocation to have in place." Mr. West continued to review the Investment Returns and regarding RBC Global (Voyageur) noted, "This Manager has just delivered a phenomenal level of incremental return." Board Member Robin Paris arrived at 5:39 p.m. Further comments followed on the Vanguard Total Stock Market (VITSX), Galliard Core Fixed Income, Vanguard Short Term Bond Index (VSCSX) and other investment managers, Templeton Global Bond Fund (FBNRX), investing in sovereign debt, currency reversals, and real estate investments CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 10,2015 PAGE 5 OF 7 The Intercontinental and Crescent Direct Lending Funds were addressed next, and Mr. West noted, "We did complete the Templeton and Class Share exchange —that was done on December 4th (2014), so that got us into that lower operating expense ratio share class for the Templeton Global Bond Fund (FBNRX)." Referring to the Real Estate Investments, Board Member Brian Fricke asked, "The Returns shown here, does include or exclude the — I am going to call it the dividend or the Cash Flow?" Mr. West replied, "That would be all inclusive." Remarks ensued on Net Transfers, Contributions, Distributions, Management Fees, Hedge Funds, rapid price movement, and market fluctuation. Regarding data on the "Current Allocation Sheet" provided by Mr. West, Vice- Chairperson Frank Mundo wondered about the 2.1% percent of cash. Mr. West pointed out, "The current cash allocation at 2.1%, seven hundred seventy-one thousand nine hundred eighty-one dollars ($771, 981.00), by our standing letter of direction to the Custodian. That cash should be getting swept at the end of the month and it will be invested—per the Target Allocations in the Investment Policy that were extracted and put into that standing letter. So, we'll monitor that to make sure it gets invested accordingly." Further comments followed. REGULAR 603. Finance And Administration Services Department Requesting The Board Of Trustees Receive Information About The Bogdahn Group Reorganization,And To Enter Into Discussion. Mr. West explained the restructuring of the Bogdahn Group, emphasizing that it was only an internal reform and stated, "Joe Bogdahn tendered his shares to Mike Welker, who was trying to bring his shares back into the company." Mr. West discussed the reasoning behind the reform, including a slow transition from Mr. Bogdahn to Mr. Welker as the primary Managing Partner of the company. Continuing, Mr. West assured the Board Members, "We just want to be very, very careful and manage the situation well in advance of— Joe's (Bogdahn) actual sun setting. So again, nothing's changed from the personnel delivery standpoint of responsibilities within the firm." Mr. West also mentioned another aspect of the transition was to bring the Equity Shares back into the firm and to develop an Equity Ownership Program; so, that all Bogdahn Group employees can have the opportunity to own shares in the company that they work for." Mr. West noted that the United States Securities and Exchange Commission requires that when there is a change of ownership within a firm that the involved parties must be notified. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-FEBRUARY 10,2015 PAGE 6 OF 7 Additionally, Mr. West requested a Consent letter be signed to acknowledge the City has received the information about the reorganization of the Bogdahn Group and to authorize to continue receiving services. Mr. West then said to the Board Members, "I want to emphasize: nothing has changed. We are still completely independent — the only Fees we receive are the hard dollar Fees that we bill you quarterly in arrears, there's no revenue sharing of any kind or other Fees received from any Vendors or products that we bring forward for your consideration here. Everything's the same, it's just an internal structure change." Mr. West also noted that the City's original agreement with the Bogdahn Group should not be altered by this reorganization. Chairperson Watkins asked if there were any objections. No objections were made. Chairperson Watkins noted that the Board of Trustees could only advise the City to accept the letter of Consent. "MOTION TO ADVISE —WHOEVER IS RESPONSIBLE IN THE CITY— THAT WE SUGGEST THAT WE SIGN THIS, THAT WE DO NOT HAVE A PROBLEM WITH IT." MOTION BY CHAIRPERSON WATKINS. SECONDED BY VICE- CHAIRPERSON MUNDO. DISCUSSION. Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". ASSISTANT TO THE CITY CLERK, ANTONIA DELLA DONNA ASKED FOR CLARIFICATION OF THE MOTION, STATING, "TO GO AHEAD AND ADVISE THE AUTHORIZATION OF THIS (CONSENT LETTER)?" CHAIRPERSON WATKINS AND VICE-CHAIRPERSON MUNDO NOTED THEIR AGREEMENT. VOTE: BOARD MEMBER FRICKE: AYE CHAIRPERSON WATKINS: AYE VICE-CHAIRPERSON MUNDO: AYE BOARD MEMBER PARIS: AYE BOARD MEMBER KENDRICK: AYE MOTION CARRIED. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING—FEBRUARY 10,2015 PAGE 7 OF 7 PUBLIC INPUT Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". ADJOURNMENT Chairperson Watkins adjourned the Regular Meeting at 6:04 p.m. RESPECTFULLY SUBMITTED: C - 410 ANTONIA DELLA DONNA ASSISTANT TO THE CITY CLERK NOTE: These Minutes were Approved at the May 12,2015 Board of Trustees Regular Meeting.