Police Employees Pension Board Minutes 11-13-14 CITY OF ATLANTIC BEACH
BOARD OF TRUSTEES OF THE ATLANTIC BEACH PENSION FUND
POLICE EMPLOYEES' 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 Van Liere, 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. 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 of the Minutes for October 16,2014, Special Police Employees' board meeting.
Motion to approve 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 16th 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 9/30/11 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. 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
1
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 of those 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
P pPY P gY
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 7:35 PM.
V- aCedi;
Vic Gualillo David Cameron
Chair Secretary
2