Lake Wales Firefighters Pension Board

LAKE WALES FIREFIGHTERS’ RETIREMENT PLAN PENSION BOARD MEETING MINUTES July 23, 2018 - 1:00 P.M. 1. Call to Order and Roll Call The meeting was called to order at 1:00 p.m. by the Chairman, Joe Jenkins. The following members were present: Brian Patterson and Roy Wilkinson. Dennis Childress was excused and Jerry Brown has resigned from the Board. The following service providers were present: Steve Stack, Investment Manager; Chris Rafool and Ron Snyder, Investment Consultants and Susy Pita, Plan Administrator. Pedro Herrera attended via conference call. 2. Approval of Minutes A motion was made by Brian Patterson to approve the minutes from the regular meeting held April 23, 2018. Seconded by Roy Wilkinson, the motion carried unanimously. 3. Approval of Disbursements A motion was made by Roy Wilkinson to approve the disbursement report as presented. Seconded by Brian Patterson, the motion carried unanimously. 4. Advisor’s Reports (a) Highland Capital – Steve Stack reviewed the Investment Portfolio results. Ending value as of June 30, 2018 was $7,866,326 with an annualized return of 7.44%. (b) Wells Fargo – Chris Rafool presented the portfolio composition as of June 30, 2018 as follows: US Large Cap Equities-40.9%, US Mid Cap Equities-9.5%, US Small Cap Equities-1.0%, Developed Markets EX US-8.0%, Emerging Market Equities-0.4%, US Taxable Invest. Grade Fixed Income-31.8%, Developed Markets Fixed Income-3.1%, Public Real Estate-1.9%, Cash Alternatives-3.2%, and Other-0.2%. Ending market value of the plan was $8,383,923. Chris confirmed that the Plan does not have any investments with scrutinized companies and that they are also in compliance with PFIA. Chris then informed the Board that a decision has been made by the President of Wells Fargo to cut costs and, therefore; the Board’s current Investment Advisors (Chris Rafool and Ron Snyder) will be moving over to Raymond James by the end of August. Following a lengthy discussion, a decision was made by the Board to authorize the Attorney to issue an RFP for Investment Advisor Services and Custodial Services. A special meeting will be held to review the proposals on Monday, August 27, 2018. (c) Sugarman & Susskind – Pedro began his report to the Board by reminding the Trustees that their Financial Disclosure Forms were due on July 1st. He continued his report throughout the meeting under the agenda items requiring his input. 5. Experience Study Patrick Donlan will present the Foster & Foster Experience Study at the October meeting unless he is available to attend the August 27th Special Meeting. 6. Old Business There was none. 7. New Business (a) The Plan Administrator reviewed the Annual Budget Projection for the Fiscal Year ending 09/30/19. A motion was made by Roy Wilkinson to approve the proposed budget as presented. Page 2 of 2 Lake Wales Firefighters’ Pension Board July 23, 2018 Seconded by Brian Patterson, the motion carried unanimously. The Plan Administrator will see to the proper distribution. (b) The Member elected Trustee positions currently held by Joe Jenkins and Roy Wilkinson will expire at the end of September. Roy stated that he is interested in another 4-year term but Joe is not. The Plan Administrator will post the election announcements and coordinate and election if necessary. The Commission appointed position currently held by Dennis Childress will also expire at the end of September. The Plan Administrator will reach out to him to see if he is interested in another term. As stated earlier in the meeting, Trustee Jerry Brown has resigned and his term was also to end at the end of September and the City Clerk’s Office has already been notified and will seek a replacement. (c) The Chairman handed out a proposal detailing 3 options that he reviewed with the Board and led a discussion regarding pension caps. Following a lengthy discussion, a motion was made by Roy Wilkinson to authorize the Actuary to prepare a cost study analysis of the 3 proposed options at a not-to-exceed cost of $3,000. Seconded by Brian Beasley, the motion carried unanimously. 8. Public Comments There were none. 9. Next Meeting Date The next regular meeting will be on Monday, October 22, 2018 at 1:00 p.m. 10. Adjournment The meeting ended at 2:35 p.m. For the Board:___________________________