Lake Wales Police Officers Pension Board

LAKE WALES POLICE OFFICERS' RETIREMENT PLAN PENSION BOARD MEETING MINUTES October 22, 2018 - 1:00 P.M. 1. Call to Order and Roll Call The meeting was called to order at 1:05 p.m. by the Chairman, Bill Raebig. The following members were present: David Black, Joe Elrod, and Bob Plummer. The following service providers were present: Pedro Herrera, Attorney; Steve Stack, Investment Manager; Susy Pita, Plan Administrator; and Lee Blackwell and Rachell Lavasseur from Wells Fargo Advisors. 2. Approval of Minutes A motion was made by David Black to approve the minutes from the regular meeting held July 23, 2018 and the Special Meeting held on September 25, 2018. Seconded by Bob Plummer, the motion carried unanimously. 3. Aoproval of Disbursements A motion was made by Joe Elrod to approve the disbursement report as presented. Seconded by David Black, the motion carried unanimously. 4. Advisors Reoorts (a) Highland Capital - Steve Stack reviewed the I nvestment Portfolio results. Ending value as of September 30, 2018 was $14,454,072, with an annualized 5 year return of 7.24%. (b) Wells Fargo - Lee Blackwell and Rachell Lavasseur presented the portfolio composition as of September 30, 2018 as follows: US Large Cap Equities-42.79%, US Mid Cap Equities-7.38%, US Small Cap Equities-1.03%, Developed Markets EX US-8.53%, Emerging Market Equities- 0.45%, Special Equities-0.06%, US Taxable Investment Grade Fixed Income-30.76%, Developed Markets Fixed Income-3.09%, High Yield Fixed Income-0.16%, Public Real Estate- 1.72%, and Cash Alternatives-4.03%. Ending market value of the plan was $14,871,495.96. Both representatives discussed the chaos surrounding the departure of Chris Rafool and Ron Snyder and stated that a transition plan should have been in place to avoid the issues that Highland Capital is experiencing with trading. Steve Stack stated that his firm has not lbeen able to execute a trade since Chris' departure and he will be evaluating the issue and reporting any and all losses incurred by the Plan due to the lack of planning on the part of Wells Fargo. Lee Blackwell handed some forms to Pedro that he requested be executed immediately so that Highland Capital can begin trading again. Pedro briefly reviewed the documents and declined to allow execution because it was his understanding that letters were already executed by the Chairman and Administrator that were to remedy this issue several weeks ago. Following a very heated discussion the Wells Fargo representatives left the meeting. The Trustees expressed their extreme displeasure with the way Chris handled his departure and with the way Wells Fargo has handled it as well. (c) Sugarman & Susskind - Pedro provided his report throughout the meeting under the agenda items requiring his input. 5. Old Business There was none. Page 2 of 2 Lake Wales Police Officers' Pension Board October 22. 2018 6. New Business (a) The Plan Administrator reviewed the Annual Expense Report for the Fiscal Year ending 09/30/18. A motion was made by David Black to approve the Expense Report as presented and to provide it to the City for posting on the web site (as required). Seconded by Bob Plummer, the motion carried unanimously. The Plan Administrator will see to the proper distribution. (b) The City Commission has not yet appointed a replacement to fill the vacancy left by Tony Elrod. The Plan Administrator will continue to communicate the need to fill position as soon as possible with the City Clerk's Office. (c) The 2019 Meeting Schedule was reviewed and approved. 7. Public Comments There were none. 8. Next Meeting Date The next regular meeting will be on Monday, January 28, 2019 at 1:00 p.m. 9. Adjournment The meeting ended at 3:00 p.m.