Board Agenda 12-11-14CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUNDS
BOARD MEETING AGENDA FOR
December 11, 2014 at 6:30P.M.
Call to Order both boards
1. Courtesy of the Floor to Visitors
2. Approval of the Minutes for November 13 , 2014, Police Officers' quarterly board meeting -(1)
3. Approval of the Minutes for November 13 , 2014 , General Employees' quarterly board meeting
-(2)
4. To be discussed by Michael O 'Shields , Morgan Stanley Smith Barney:
a . Recap Investment Performance for the Police Officers ' for the period ended 11130/14
and subsequent activity since.
b. Recap Investment Performance for the General Employees' for the period ended
11130/14 and subsequent activity since.
5. RFP Consideration for the replacement of the current Financial Advisor.
6. Acceptance of2015 Quarterly Meeting dates -20 15 (3)
7. Any New Business
8. Adjournment -Police
9. Adjournment -General
CITY OF ATLANTIC BEACH
POLICE EMPLOYEES' PENSION BOARD OF TRUSTEES:
4 year term; no term limit
The board members are required to file Statement of Financial Interests
Business
Name and Address Position Phone
Employee Elected
Vic Gualillo Chair 247-5859
Atlantic Beach Police Department
850 Seminole Road
Atlantic Beach, FL 32233
vgualillo@coab. us
Employee Elected
David Cameron Member 247-5859
Atlantic Beach Police Department
850 Seminole Road
Atlantic Beach, FL 32233
dcameron@ coab. us
Civilian Appointed by Commission
William (Bill) T. Tomson Member
3 77 12th Street
Atlantic Beach, FL 32233
williamtomson@gmail.com
Civilian Appointed by Commission
John Wolfel Vice Chair
435 Inland Way
Atlantic Beach, FL 32233
John. Wolfel@comcast.net
Resident selected by Board, Confirmed by Commission
Tim Saggau Member
2032 Duna Vista Court
Atlantic Beach, FL 32233
Timsaggau@yahoo.com
Home
Phone
N/A
N/A
853-6985
699-8887
241-9800 (FAX)
838-3900
Term
Expiration
02/28118
08/01/17
12/31117
10 /11/17
6/10/17
CITY OF ATLANTIC BEACH
GENERAL EMPLOYEES' PENSION BOARD OF TRUSTEES:
4 year term; no term limit
The board members are required to tile Statement o(Financial Interests
Name and Address Position
Employee Elected
Tim Townsend Chair
902 Assisi Lane
Atlantic Beach, FL 32233
ttownsend@coab. us
Employee Elected
Timmy Johnson Member
716 Ocean Blvd
Atlantic Beach, FL 32233
tj ohnson@coab. us
Civilian Appointed by Commission
Ray Brandstaetter Member
254 Oceanwalk Dr. S.
Atlantic Beach, FL 32233
brandstaetter@comcast.net
Civilian Appointed by Commission-
Alan Gleit Secretary
10 Tenth Street #32
Atlantic Beach
agleit@hotmail.com
Business
Phone
(904) 247-5839
(904) 247-5828
(904) 206-2655
Resident se lected by Board, Confirmed by Commission
Gil Flores Vice Chair
271 Sailfish Drive E.
Atlantic Beach, FL 32233
gflores@coab. us
Home
Phone
Term
Expiration
02/16/18
09/24/18
(904) 247-2867 06/09/18
(904) 241-9966 10111115
(904) 613-4195 05/09/15
CfiY OF A1LANTIC BEACH
BOARD OF 'IRUSTEES OF TilE A1LANTIC BEACH PENSION FUND
POLICE EMPWYEFS' PENSION BOARD MEETING
MEETING MINUTES
November 13, 2014
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 , David Cameron, John Wolfel , and Bill
Tomson. Pension Plan Administrator Nelson VanLiere, Investment Advisor Michael O 'Shields , and
Pension Board Attorney Scott Christiansen of Christiansen & Dehner, P .A also attended.
2. Courtesy ofthe floor to visitors. No visitors
3. Announcement. Tim Saggau has notified Nelson Van Liere that he will be moving from the City
Atlantic Beach in 2015 and will no longer be of service to the board. Nelson will contact the City
Clerk for a list of possible replacements and keep the Board updated as to the progress.
4. Approval of the Minutes for October 9, 2014, Police Employees' board meeting. Motion to approve
was made by Bill Tomson and seconded by John Wolfel. The vote to approve was unanimous.
5. Approval ofthe Minutes for October 16, 2014, Special Police Employees' board meeting. Motion to
appro ve was made by Vic Gualillo and seconded by David Cameron. The vote to approve was
unanimous.
6. The Financial Expenditures through September 30, 2013 for the Police Employees' Pension Plan
were approved: The motion was made by Vic Gualillo and seconded by David Cameron. The vote
was unanimous to approve.
7. Michael O'Shields led the discussion on investment performance as of 11/12/14 including year to
date information.
a. Michael started the meeting with a review of market updates related to the
reallocation of assets stemming from the October 161h Special Pension Board
meeting. This reallocation added $340 ,686 or 4.3% of net investment returns to the
close of October. Michael recommended keeping things as they are now and re-
address in December.
b. Discussion related to current equity and bond investment allocation and rate of
return. The ending portfolio value of $8 ,178 ,839 represents an annualized return of
8.0% for the period 9/30111 to 9/30/14. Conversation also included the email and
information provided by Scott Christiansen (attached). The Board had questions
regarding the City 's ranking based on this information. Scott said the performance
of our portfolio was not good compared with other plans . He also challenged the
use of the "rolling 5 year" numbers , said the Trustees should look at the
performance of the fiscal year not the 5 year return , and stated that the last 2 year
performance results will lower that "5 year" net return.
c. The Board discussed further changes to the allocation of cash and the performance
of the mid-cap account Thompson Siegel & Walmsley. Bill Tomson made a
motion to move $654 ,000 from Cash and the balance of the Thompson Siegel &
Walmsley account $421,846 into Columbia Management. Vic Gualillo seconded
the motion and the vote to approve was unanimous.
8. Scott Christiansen, Pension Board Attorney provided updates:
a. Scott notified the Board they need to submit the plan assets to the Commission
using the formal letter provided in the pension plan documents.
b. Quarterly meeting dates have been provided to the Trustees through email for
the 2015 calendar year and will be included on the December agenda.
c. Discussed the importance of the impending decision in the alleged charges
against former Chief of Police Michael Classey relating to his pension holdings
and the possibility of forfeiture ofthose funds based on the outcome.
9. New business: John Wolfel asked Michael O'Shields to excuse himself so the members of both
Boards could discuss thoughts on retaining him as financial advisor. Michael said he would like
to stay to hear the issue. John said he would like the Board to consider the possibility of doing an
RFP to see what the options are. He is not happy with the performance and strategy and does not
like "picking stocks" (timing the market) as the best method for the integrity of the pension plan.
Vic Gualillo pointed out that when you have an RFP you will end up with sales pitches and
maybe the board should look at changing the approach and give Michael direction to manage the
plan in a different way. Nelson reminded the Board that they adopted the current strategy several
years ago and can redirect their efforts. Bill Tomson stated he would like to be able to move the
money around and not stay status quo. It was agreed this issue will be placed on the next agenda
for discussion.
10. Adjournment -Bill Tomson made a motion to adjourn the meeting at 7:35PM.
Vic Gualillo
Chair
David Cameron
Secretary
CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
GENERAL EMPLOYEES' PENSION BOARD MEETING
MEETING MINUTES
November 13,2014
1. The City of Atlantic Beach General Employees' Pension Board meeting was called to order at
6:30P.M. The members in attendance were trustees: Tim Townsend , Alan Gleit , Gil Flores , and
Ray Brand staetter. Pension Plan Administrator Nelson VanLiere, Investment Advisor Michael
O 'Shields , and Pension Board Attorney Scott Christiansen of Christiansen & Dehner, P.A also
attended.
2. Courtesy of the floor to visitors. No visitors
3. Approval of the Minutes for October 9, 2014, General Employees' board meeting. Motion to
appro ve was made by Gil Flores and seconded by Ray Brandstaetter. The vote to approve was
unammous.
4. Approval of the Minutes for October 16, 2014, Special General Employees' board meeting.
Motion to approve was made by Tim Townsend and seconded by Ray Brandstaetter. The vote to
appro ve was unanimous .
5. The Financial Expenditures through September 30,2013 for the General Employees' Pension
Plan were approved: The motion was made by Tim Townsend and seconded by Gil Flores. The vote
was unanimous to approve.
6. Michael O'Shields led the discussion on investment performance as of 11/12/14 including year
to date information.
a. Michael started the meeting with a review of market updates related to the
reallocation of assets stemming from the October 16th Special Pension Board
meeting. This reallocation added $761 ,133 or 5.2% of net investment returns to th e
close of October. Michael recommended keeping things as they are now andre-
address in December.
b. Discussion related to current equity and bond investment allocation and rate of
return. The ending portfolio value of$15 ,344 ,503 represents an annualized return
of 8.8% for the period 9/30 /11 to 9/30/14 . Conversation also included the email
and information provided by Scott Christiansen (attached). The Board had
questions regarding the City 's ranking based on this information. Scott said the
performance of our portfolio was not good compared with other plans . He also
challenged the use of the "rolling 5 year" numbers , said the Trustees should look at
the performance of the fiscal year not the 5 year return , and stated that the last 2
year performance results will lower that "5 year" net return .
c. Alan Gleit discussed further changes to the allocation of cash and made a motion
to reduce cash by 8% or $1 ,227 ,000 and move it into equities ; specifically
Columbia Management. Ray Brandstaetter seconded the motion and the vote to
approve was unanimous. After further discussion regarding the performance of the
Thompson Siegel & Walmsley account Ray Brandstaetter made a motion to mo ve
l1)
the balance $791,234 from this account into Columbia Management. Tim
Townsend seconded the motion and the vote to approve was unanimous.
7. Scott Christiansen, Pension Board Attorney provided updates:
a. Scott notified the Board they need to submit the plan assets to the Commission
using the formal letter provided in the pension plan documents.
b. Quarterly meeting dates have been provided to the Trustees through email for
the 2015 calendar year and will be included on the December agenda.
c. As a follow up to the last quarterly meeting Nelson VanLiere updated
participants that there has been no progress on the distribution of funds from
Gail Baker's Pension Plan due to lack of activity from her family.
8. New business: John Wolfel from the Police Employees Pension Plan asked Michael O'Shields to
excuse himself so the members of both Boards could discuss thoughts on retaining him as
financial advisor. Michael said he would like to stay to hear the issue. John said he would like the
Board to consider the possibility of doing an RFP to see what the options are. He is not happy
with the performance and strategy and does not like "picking stocks" (timing the market) as the
best method for the integrity of the pension plan. Vic Gualillo pointed out that when you have an
RFP you will end up with sales pitches and maybe the board should look at changing the
approach and give Michael direction to manage the plan in a different way. Nelson reminded the
Board that they adopted the current strategy several years ago and can redirect their efforts. Bill
Tomson stated he would like to be able to move the money around and not stay status quo. It was
agreed this issue will be placed on the next agenda for discussion.
9. Adjournment -Tim Townsend made a motion to adjourn the meeting at 7:35PM.
Tim Townsend
Chair
Alan Gleit
Secretary
Law Offices
Christiansen & Dehner, P.A.
63 Sarasota Center Blvd. Suite 107 Sarasota, Florida 34240 • 941-377-2200 • I;ax 941-377-4848
MEMORANDUM
TO:
FROM:
City of Atlantic Beach General Employees' Retirement System
City of Atlantic Beach Police Offic~rs' Retirement System
Klistin Hill
RE:
DATE:
Proposed 2015 Meeting Dates
September 1, 2014
Listed below are the proposed 2015 meeting dates based on the previous year's schedules.
Should they meet with the Board's approval, please let us know and we will put them on our
calendar. Should there be any discrepancies with any of the dates and/or times, please do not hesitate
to contact Kristin at the office, via phone at 941-3 77-2200 or E-Mail at ktistin@cdpension.com, and
we will do the best we can to comply with your requests.
ALL MEETINGS WILL BE HELD AT 6:30PM:
February 19, 2015
May 14 , 2015
August 20, 2015
November 12,2015
Thank you.