Volunteer Firefighter Relief Fund Committee

City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes Special Meeting August 7, 2006 The Volunteer Firefighters’ Relief Fund Committee held a special meeting on Tuesday, August 7, 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 Robert Zarnestke, City Manager Red McKeon, Occum/Past Chairman John Crooks, guest Alderman Members absent were: Dennis Davis, City Pension Board Member Joseph Ruffo, Comptroller/Treasurer Joshua Pothier, Deputy Comptroller Donald Leary, East Great Plain Richard Benoit called the meeting to order at 5:05 p.m. 1. Minutes a. Review of the hand written meeting minutes taken by Robert Zarnestke at the June 5, 2006 meeting will be postponed. These minutes will be formatted and submitted at the next scheduled meeting. b. Review of meeting minutes from the June 20 and July 5, 2006 special meetings. A motion made by Thomas Dawkins to accept the minutes as read, seconded by Thomas Quinley. Approved. 2. Reports: a. Treasurer’s Report – the Treasurer’s Report for June was reviewed. Motion made to accept the report as read by Thomas Quinley, seconded by Karen Mankowski. Approved. 3. Communications: None 4. Old Business a. Presentation by Investment Consultants: 1. Manly Church and James A. Noonan from Merrill Lynch: Presentation by Mr. Noonan, Mr. Church did not attend. Decisions relating to VFRF Policy Statement – questions include:  a. Does the Policy allow for Stocks/Preferred Equities outside of Mutual Funds? b. Overview – risk of the plan is extremely low as currently written. However the rate of return may not provide adequate protection against inflation. 160K deposited by the City of Norwich 120K paid out annually 12K received from Member Annual Contributions c. Risk: Interest rate risk and Risk of Principle decline. Short term CD rates may be dropping in the near term. d. Investment goals must match investment objectives i. Safety of principle is #1 priority – (a) Preservation of the Fund is 3-5%: question moderate growth with #1 priority being safety. (b) Current Income Target ~ 6%. – Income & Growth 7%, Growth & Income 8%, Quality Growth 9%, Aggressive Growth 11%. ii. Core inflation 2-2.5% iii. Non-Core Inflation ~ 4.6% iv. CD’s currently equal inflation + 0.5% v. Consider Quality Stocks – Sector concentrations vi. Notes from Section V. Suitable and Authorized Investments are ok. James Noonan to provide proposed enhancements to the existing Policy Statement, no structured recommendations were provided at this time. Presentation finished at 1756 hrs. 2. North Pointe Investment Partners, Bruce Sabourin – began presentation at 1759 hrs. a. Policy Statement is in good order. b. Discussion of fees/screening process and presentation of formal investment proposal: i. Section 1: equity based results in less risk; 10% in CDs and short term Money Market accounts. ii. Section 2: Geared more toward the Investment Policy Goals. iii. Either portfolio, 10% should be in CDs and short term Money Market accounts. Focus for these sectors are short term obligations. North Pointe, Mr. Sabourin, completed his presentation at 1820 hrs. b. Mr. Crooks summarized that the American Funds were very positive in his mind. The Committee also discussed a 10% amount for short term obligations versus a Committee concern of having a 2 year or approximate 25% of Reserve Capital to meet short term obligations.  c. Mr. Dawkins informed the Committee that Employee Assistance Program/ESI Police and Fire Departments are available. 1. He noted that a recent contract was initiated by EGP - $1500.00 annually. 2. Committee Members stated that CSID Teams are available for no charge to all Departments. d. Next meeting scheduled for September 12, 2006 at 5pm. Motion made to adjourn by Karen Mankowski, seconded by Joeseph Kochanski. Approved. Meeting adjourned at 1842 hrs. Respectfully Submitted, Thomas G. Quinley September 25, 2006