Police Employee Pension Board Minutes 02-21-2013 - QuarterlyCITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
February 21, 2013
1. The City of Atlantic Beach Police Employees' Pension Board meeting was called to order at
6:30 P.M. The members in attendance were trustees: Vic Gualillo, Bill Toimson, and John Wolfel.
Harry McNally and Brannon Hicks were not present. Nelson Van Liere, Pension Plan
Administrator; & Michael O'Shields, Senior Vice President & Institutional Consultant, Morgan
Stanley was also in attendance. Pension Board Attorney Scott Christiansen of Christiansen &
Dehner, P.A. was not in attendance although available by phone if needed.
Discussion on board member attendance - After welcoming the new board member to the General
Board, both boards were informed by the Plan Administrator of the attendance policy with regard to
un- excused absences. As indicated on the excerpts of the pension ordinances under agenda item
number (9), the requirement for General and Police are different. The General plan has a provision
to remove a member with three absences. The police plan has no such provision. We have a Police
member with four absences. Without a provision to remove a member, the board will need to wait
until the term expires to resolve the issue.
Harry McNally term is up May 14, 2013. Harry is the Resident member that was selected by the
other board members. He is the current secretary. After many terms of serving on the board, Harry
has informed the Plan Administrator that he will not seek re- appointment.
2. The minutes for the November 15, 2012 Police Employees' Pension Board meeting were
approved: the motion was made by Vic Gualillo, seconded by Bill Tomson & unanimously
approved.
3. The following was presented by Michael O'Shields of Morgan Stanley Smith Barney:
Michael O'Shields gave a recap of the investment performance for the year ended December
31, 2012 and an update to January 31, 2013. He reported that the activity for the
quarter was basically flat. Michael gave information regarding the position of the
market relative to where we were when we cut our equity holdings in half. He
explained our position to protect the large gains and now it was time to address how
we would deploy the cash position of our portfolio. The board discussed the need to
be active and after a long discussion agreed to schedule meetings monthly on the
second Thursday of every month. Vic Gualillo made the motion and John Wolfel
seconded it. The motion was unanimously approved. Michael also discussed the
Morgan Stanley Global Investment Committee Hypothetical Economic and Financial
Scenario Analysis of 2013. Discussion regarding the boards views on more bullish to
more bearish outlook by the board resulted in a decision to keep funds where they are
right now.
Michael reported that the Morgan Stanley Long Term forecast report was not finished, but
would be soon.
4. The Financial Expenditures through December 31, 2012 for the Police Employees' Pension Plan
were approved: the motion was made by Vic Gualillo, seconded by John Wolfel & unanimously
approved.
5. The following was discussed by Pension Board Attorney Scott Christiansen of Christiansen &
Dehner, P.A.:
Scott was not in attendance but was available by phone if needed. The Plan administrator
passed on Scott's items which were the expiration of Harry McNally's Term, the required
paperwork for the new member, Michael Diaz — General Plan, and the status of the Ordinance.
After these items were discussed, the board agreed that getting Scott on the phone was not
necessary.
6. The Police Board approved Barrett Hatfield going into the DROP as of January 20, 2013 with
a motion by Vic Gualillo and a second by John Wolfel. The vote was unanimous.
7. There was no new business.
S. Adjournment — A motion to adjourn was made by John Wolfel at 7:58 PM.
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Vic Gualillo
Chair
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Harry cNally
Secretary