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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.