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HomeMy WebLinkAbout2015 05 12 Board of Trustees Regular Meeting Minutes CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING MAY 12, 2015 CALL TO ORDER The Regular Meeting of Tuesday, May 12, 2015 of the Board of Trustees was called to Order by 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 Barbara Watkins, present Vice-Chairperson Frank Mundo, present Board Member Brian Fricke, present Board Member Geoff Kendrick, present Board Member Robin Paris, present Assistant to the City Clerk Antonia Della Donna, present A brief moment of silence was followed by the Pledge of Allegiance. There were no changes to the Agenda. 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-MAY 12,2015 PAGE 2 OF 5 PUBLIC INPUT Chairperson Watkins opened "Public Input". No one addressed the Board of Trustees. Chairperson Watkins closed "Public Input". CONSENT AGENDA CONSENT 300. Finance And Administrative Services Department The Finance And Administrative Services Department Is Requesting The Board Of Trustees Approve A One Year Extension Of The Bogdahn Group Contract. "I WILL MAKE A MAKE A MOTION WE EXTEND THE BOGDAHN GROUP FOR ANOTHER YEAR." MOTION BY VICE-CHAIRPERSON MUNDO. SECONDED BY BOARD MEMBER PARIS. DISCUSSION. VOTE: BOARD MEMBER FRICKE: AYE CHAIRPERSON WATKINS: AYE VICE-CHAIRPERSON MUNDO: AYE BOARD MEMBER PARIS: AYE BOARD MEMBER KENDRICK: 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 Tuesday, February 10, 2015 Board Of Trustees Regular Meeting Minutes. REGARDING THE FEBRUARY 10, 2015 BOARD OF TRUSTEES REGULAR MEETING MINUTES, "I RECOMMEND THAT WE APPROVE THE MINUTES, AS STATED." MOTION BY CHAIRPERSON WATKINS. SECONDED BY BOARD MEMBER KENDRICK. DISCUSSION. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-MAY 12,2015 PAGE 3 OF 5 VOTE: VICE-CHAIRPERSON MUNDO: AYE BOARD MEMBER KENDRICK: AYE BOARD MEMBER PARIS: AYE CHAIRPERSON WATKINS: AYE BOARD MEMBER FRICKE: AYE MOTION CARRIED. 400. REPORTS No Reports were given. Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 500. Not Used REGULAR AGENDA REGULAR 600. Finance And Administration Services Department The Finance And Administrative Services Department Requesting The Board Of Trustees Receive From The Bogdahn Group The Second Quarter Investment Return Report, And To Enter Into Discussion. Mr. Dave West, Senior Consultant, The Bogdahn Group, 4901 Vineland Road, Suite 600, Orlando, Florida: referenced the "Investment Return Report" and summarized, "Everything is working here nicely in the program—Managers are delivering quite nicely all ends." Continuing, Mr. West then discussed the financial market's acclimation, local economic development, overall positive national growth, European government bonds, foreign equity markets, the appreciation of the U.S. Dollar, and the subsequent depreciation of the Euro. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-MAY 12,2015 PAGE 4 OF 5 Continuing his review, Mr. West pointed out, "Because of the currency change there was a fairly substantial money flow from foreign investors into US Treasuries. As a result of that, the demand for U.S. Treasuries drove prices up and interest rates down. So, we actually had a decline in interest rates during the quarter for— arguably for all the wrong reasons. But nevertheless, it occurred." Mr. West explained that it was because of the aforementioned circumstance that caused the Fixed Income portfolio to underperform. Mr. West then gave an overview of the quarter's performance, pointing out increases in indices such as MSCI Emerging Markets, S&P (Standard & Poor's 500), and Barclay's US Aggregate. Referencing page 22 of the "Investment Return Report", Mr. West indicated that the Total Fund Net of all Investment Manager Fees earned 2.23% for the quarter and noted, "Still a good quarter." Mr. West additionally commented on the Total Domestic Equity, noted the 1.81% increase for the quarter and stated, "No Manager issues to worry about there." Mr. West also discussed the Total Fixed Income and its increase of 1.46% for the Fiscal Year-to-Date and continued to comment on the Total Domestic Fixed Income. Furthermore, Mr. West stated, "Our Global Bond portfolio —the Templeton Global Bond Fund was actually up 0.25% for the quarter versus that Global Bond benchmark which was down 2.51% and again a lot of that in that benchmark was currency driven." Mr. West continued to reference material in the "Investment Return Report" and reviewed various funds while highlighting increases for the quarter, and commented on Galliard and Fixed Income. Mr. West continued, "American Corp Realty Fund had a really big quarter — about 4.46 versus the benchmark at 3.39. So, fiscal year to date — that fund is performing well — 6.3." Regarding Intercontinental and American Corp Realty, Mr. West mentioned, "Both those Real Estate funds are performing nicely." Further remarks followed on Crescent Direct Lending Fund. On page 20 of the "Investment Return Report", Mr. West pointed out cash flow and said the earnings that were generated were just under a million dollars ($1,000,000.00) for the quarter. Further comments followed that rebalancing was not required. In conclusion, Mr. West stated, "Nice report — glad to be the bearer of good news and hopefully we continue at this pace and, you know, we're — we've made nice inroads to that actuarial required rate of return already fiscal Year-to-Date." Board Member Geoff Kendrick inquired if the Bogdahn Group had a mitigation strategy given the event of a market crash. Mr. West acknowledged the importance of such questions and reviewed how catastrophic situations are handled. Mr. West explained that the Pension Liability is set up with a longer view point and mentioned the difficulty of anticipating unforeseen risks. Mr. West continued, "That being said, we have the process in place, per the policy, to be able to go in and dollar-cost average into those assets that were most affect." Mr. West then commented on a rebalancing mechanism. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING—MAY 12,2015 PAGE 5 OF 5 Lastly, Mr. West stated, "We have been very careful to make sure we leave enough high quality investment in the portfolio — mainly managed through the Galliard Bond portfolio." Further remarks followed on the purpose for the Galliard Bond in the portfolio and maintaining material allocations of global equity exposure and the avoidance of subjective market timing. PUBLIC INPUT Chairperson Watkins opened "Public Input". No one spoke. Chairperson Watkins closed "Public Input". ADJOURNMENT Chairperson Watkins adjourned the Regular Meeting at 5:55 p.m. RESPECTFULLY SUBMITTED: ANTONIA.DELLA DONNA ASSISTANT TO THE CITY CLERK NOTE: These Minutes were Approved at the August 18,2015 Board of Trustees Regular Meeting.