Volunteer Firefighter Relief Fund Committee

City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes Meeting # 99 The Volunteer Firefighters’ Relief Fund Committee held its ninety-ninth meeting on Monday, May 8, 2006 at 5:00 p.m. in room 209, City Hall, Norwich, Connecticut. 1. Roll Call Members present were: Richard Benoit, Taftville Thomas Quinley, Yantic Thomas Dawkins, Personnel Manager Joseph Kochanski, Laurel Hill Karen Mankowski, Occum Joshua Pothier, Deputy Comptroller Red McKeon, Occum/Past Chairman Joseph Ruffo, Comptroller/Treasurer John Crooks, guest Members absent were: Donald Leary, East Great Plain Robert Zarnestke, City Manager Dennis Davis, City Pension Board Member Richard Benoit called the meeting to order at 5:03 p.m. 1. Minutes a. Review of last meeting minutes (meeting 98): motion made by Red McKeon to accept review of minutes, seconded by Joseph Kochanski. Approved b. Review of the Special Investment Meeting minutes: motion made by Joseph Kochanski to accept the minutes as read, seconded by Karen Mankowski. Approved. 2. Reports a. Treasurer’s Report for February, March, and April were reviewed. Motion made by Thomas Quinley to accept the Treasurer’s Reports as read, seconded by Joseph Kochanski. Approved. b. Money that has been in People’s Bank has been moved to Citizen’s Bank effective April, 2006. c. The Savings Institute interest rates continue to rise and are currently paying 5%. 3. Communications None 4. Old Business a. Special Investment Review and Update – Review of financial advisors. i. Financial advisors Bruce Sabourin from North Pointe and Manly K. Church with James Noonan from Merrill Lynch made presentations. ii. Merrill Lynch representatives (Mr. Church and Mr. Noonan) presented the following: 1. Review of Goals: target return is 7.5% in the following distribution of funds – a. 1/3 of funds (`$400,000) in Certificates of Deposit (CDs): CDs at a rate of `5%, rotating into the best paying rate. Benefit – decreased administrative fees. (presented by Mr. Church) b. 1/3 of funds (`$400,000) in Mutual Funds: Loomis Sayles at 9.73% bond; Pioneer Cullen Value Fund at 12.13%; The Hartford Capital APP. Fund at 19.84%. Alternative potential funds: Gartmore Global; Henderson Global; and Morning Star. Large Cap Funds considered safer going forward. (Mr. Church) i. Fees for these type of investments can be calculated via the “breakpoint method” and/or “A Shares” if we go with three (3) funds. ii. If two (2) specialized funds are used for a slightly more aggressive investment approach, the “C Shares” would be used. c. 1/3 of fund in Discretionary Equity. Growth and Income Equity (presented by Mr. Noonan). i. Thirty percent (30%) Closed end funds (30% of $400,000) ii. Thirty percent (30%) Individual Preferred, expected yield 6.5% return.  iii. Forty percent (40%) Individual Equities (Sector Rotation, short term) Banking, finance, health care, industrial, etc. Here we are looking from top down, macro approach, technologies and industrials may become more attractive as the dollar weakens. iv. Costs are expected to be between 1.13% - 1.27% for the Internal Mutual Funds. It is important to get the right price, monthly wires could be set up for monthly deposits. Merrill Lynch presentation concluded at 1756 hours. iii. North Pointe presentation by Mr. Bruce Sabourin. 1. American Funds – is the 1st choice for more conservative approach. Fees at 0.68% with no extra fees. Provides a good foundation on which to build. 2. Are CDs part of the investment mix? No, however, fixed income investment could be part of the proposed portfolio. 3. Mr. Crooks discussed bond ratings and their importance. 4. What is the split of the $1.1 million dollar account for investment? No recommendation by Mr. Sabourin. North Pointe presentation ended at 1837 hours. b. Mr. Crooks and Committee Members agreed that we must develop an investment policy statement. 1. Things to consider include the amount of cash payouts held back. Typically 1-5 years of reserves are recommended. With the American Funds, the liquidity factor is fantastic, and asset allocation is the key, stated Mr. Crooks. c. Committee Members stated priority agenda items relate to Ordinance revision and amendment adoption and resolution of concerns as expressed by Corporation Council, Michael Driscoll prior to investment policy recommendations. 1. Key action item: get the Ordinance revisions to Council Members for review and adoption. 2. Schedule an additional Special Meeting of the Relief Fund Committee, to follow- up and resolve open items relating to 2006 revisions. Motion made to have a Special Meeting on May 15, 2006 at 1700 hours by Thomas Quinley, seconded by Joseph Kochanski. Approved.  3. Mr. Crooks to an action item – will discuss with Attorney Driscoll open items associated with the 2006 revision and provide feedback comments to the Committee through the Comptroller’s Office. Motion made to adjourn by Thomas Quinley, seconded by Josh Pothier, approved. Meeting adjourned at 1855 hrs. Respectfully Submitted, Thomas G. Quinley May 15, 2006