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HomeMy WebLinkAbout10-04-2006 Joint Meeting Minutes Minutes of the Joint Workshop of the CITY OF OCOEE GENERAL EMPLOYEES’ PENSION BOARD AND POLICE OFFICERS’/FIREFIGHTERS’ PENSION BOARD Held on October 4, 2006 At 150 N. Lakeshore Drive Ocoee, FL 34761 AGENDA ITEM I. CALL TO ORDER – Vice Chairman Wagner A. Vice Chairman Russ Wagner called the meeting to order at 9:34 a.m. in the Commission Chambers in City Hall. The roll was called and a quorum declared present. Present were Trustees Russ Wagner, Tom Hendrix, Jean Grafton, Terry Reed, Ken Strickland, James Coschignano, and Colby Julian. Absent were Trustees Charlie Brown and Nora Gledich. Also present were Jim Carnicella, Human Resources Director/Plan Administrator; and Larry Cole, Monitor, Merrill Lynch. B.Count and certify ballots for the General Employees’ Pension Board Election for the seat currently held by Terry Reed for the term beginning October 1, 2006 and ending September 30, 2008 The ballots from the election were delivered to the Board before the meeting began, still in the ballot receptacle which had been unopened. Trustee Grafton opened the receptacle and began the count. There were two candidates for the election: Terry Reed and Otis Patton. The ballots and initialed names on the list corresponded to the amount of votes cast. The total ballots cast was 55, Terry Reed received 37 of those votes and Otis Patton received 18. RESOLVED that the election of Terry Reed as General Employees’ Pension Board Member be and is hereby certified by the Board following verified election results of 37 votes for Terry Reed and 18 votes for Otis Patton. C. Count and certify ballots for the Police Officers’/Firefighters’ Pension Board Election for the police officer trustee seat currently held by Colby Julian, for the term beginning October 1, 2006 and ending September 30, 2008 The ballots from the election were delivered to the Board before the meeting began, still in the ballot receptacle which had been unopened. Trustee Strickland opened the receptacle and began the count. There were three candidates for the election: Ken Fisher, Colby Julian and Tom Maroney. The total ballots cast was 42, Ken Fisher received 18 of those votes, Colby Julian received 18 votes and Tom Maroney received 6 and it was determined that there would need to be a run off between Ken Fisher and Colby Julian. General Employees Pension Board And Police Officers’/Firefighters’ Pension Board Joint Workshop, October 4, 2006 Page 2 of 2 D. Discussion regarding other alternatives to managing the Pension Fund – Larry Cole, Merrill Lynch Larry Cole handed out a copy of the investment manager search report and the mutual fund summary report to both boards. Mr. Cole spoke about the investment manager search and how a change could affect the custody side of the business with SunTrust and stated that it was ten times more difficult to change the custodian than the investment manager. He also reminded the board that SunTrust owns Trusco and doing business with Trusco included the custody services. Mr. Cole said he asked SunTrust how much money would come out under Trusco before they would have to charge for the custody and he stated that there was no standard answer, that they would evaluate it on a case-by-case basis. After a brief discussion Mr. Cole stated that his best recommendation was to keep Trusco as the fixed income manager and possibly the international product they have and that would leave approximately 12.5 million under Trusco for both pension plans. Larry Cole suggested that he come back to the November meeting with what impact the change would have with SunTrust. Mr. Cole told the Board that SunTrust doesn’t want to do custody only but if they did they would charge a fee somewhere around 10 basis points. Mr. Cole stated that the Boards have basically three choices; 1. Don’t replace Trusco, 2. Replace just a portion, and 3. Replace Trusco completely and if that were the case the board may have to look for a new custodian. Larry Cole spoke about the investment manager searches and went over the documents in detail. Trustee Wagner asked how the Mutual Fund was doing now. Larry Cole said what he saw shows it in the top 22%, only up about 2%. Trustee Wagner asked Mr. Cole about the Fixed Funds. Mr. Cole said there was about 40% in that fund and that was the benchmark, so it is between 9.5 to 10 million between both plans. Larry Cole continued to go over the handouts and stated that if we are keeping anything with Trusco, Mutual Funds is where he would recommend it. Jim Carnicella stated that the boards need to decide if they want to be conservative or take on more risk. Trustee Coschignano asked Larry Cole to tell the board what the minimum would be that they would have to maintain with Trusco without SunTrust charging more money to keep them as custodian. Mr. Cole said he would ask SunTrust if they will do the custody if they keep Fixed Income and if they say no then he will ask them what it will take to keep them as custodian. Mr. Cole continued to go over the materials. Larry Cole said the problem with Trusco was the Large Cap, which has been taken care of and also the Large Cap Value. Mr. Cole suggested the Board leave the Fixed Income and International with Trusco. He said between now and the November meeting he will contact SunTrust and ask them the questions the board has concerning the custody and how much they would charge for their services. He will also find out how much they are charging now. Trustee Grafton asked Larry Cole if he could have alternatives for a custodian if SunTrust says they won’t do it. The Board discussed the vacant board seat and Trustee Hendrix asked to set a date for a special meeting to select someone. Jim Carnicella suggested the Board select the person before the November th 8 meeting and the Board agreed. AGENDA ITEM II. ADJOURN There being no other business, the meeting was adjourned at 12:22 p.m. Respectfully submitted by Approved by: Debbie Bertling ______________________________ HR Analyst Russell Wagner, Vice Chairman