Volunteer Firefighter Relief Fund Committee

City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes Meeting #110, September 8, 2008 The Volunteer Firefighters’ Relief Fund Committee held its 110th meeting on Monday, September 8, 2008, at 5:00 p.m. in room 209, City Hall, Norwich, Connecticut. 1. Roll Call Members present were: Richard Benoit, Taftville Karen Mankowski, Occum Donald Leary, East Great Plain Joshua Pothier, Assistant Comptroller Brian Curtin, City Treasurer Frank Davis, Citizen Appointee Thomas Quinley, Yantic Red McKeon, Occum/Past Chairman Joseph Kochanski, Laurel Hill Art Meizner, Hooker & Holcombe, Guest Members absent were: Joseph Ruffo, Comptroller Thomas Dawkins, Personnel Manager Richard Benoit called the meeting to order at 5:00 p.m. A motion was made to suspend the rules to hear a presentation by Mr. Art Meizner by Red McKeon, seconded by Donald Leary. Approved. Mr. Meizner from Hooker & Holcombe Investment Advisors, Inc., provided each of the Board Members with an Asset Allocation and Performance Report dated June 30, 2008 (with updates). Mr. Meizner then took the Committee members through a brief market recap as detailed in the 34-page report, noting highlights as follows: Page 9 – as of 06/30/08 looking backwards to 03/24/2000 the market was at a clear high, followed by a low beginning 10/09/2002 progressing to 06/30/08. For this time period the market was up 65%; however, price earnings were down to 18.9%. This June was one of the worst months we have seen thus far. Page 10 – the Stock Market is cheaper than 10-year Treasuries. Some analysts are saying that things will not resolve until 2009 or later. Currently, we are properly diversified. Page 11 – this page spotlights the world market versus US growth and is a good example of why it is good to have international funds for diversification. Page 12 – 70.8% consumption, confidence level is down, and one of the key market indicators – the Winnebago Index – clearly indicates less sales and a soft market.  Page 13 – this is a review of the GDP and S&P. Page 14 – 57% of US Treasuries are owned by foreign investors. Page 15 – Index Returns. Page 16 – Weekly Market Recap. Poorly diversified. Page 18 – we may look at a slight reduction in Global Bonds. We may not need 10% and a recommendation to decrease to 6% and move the 4% equally to the bond funds may be appropriate. Russell Fixed and Russell Multi-Strategy. A motion made by Joshua Pothier and seconded by Joseph Kochanski to allow Art Meizner to move resources as discussed was made. Approved. Art states that the Committee may want to meet again with him to discuss this issue in February 2009. Page 20 – the quarter to date is down for our funds approximately 0.53%. August was very rough. Page 21 – as of 08/29/08, performance is down 4.65%. Page 25 – Both funds performed better than the benchmark Russell 1000. Page 26 – up 2.92%. Page 27 – off 1.62%. Page 28 – off 1.39%. Page 29 – off 2.03%. Page 30 – up 0.11%. Page 31 – up 0.08%. Page 32 – up 0.39%. In summary, Mr. Meizner told the Committee members that “you can’t buy a loaf of bread with negative earnings”. We must keep the portfolio balanced and the current recommendation is to remain diligent and stay the course. The Committee members questioned the Comptroller’s Office regarding the amount of this year’s contribution to the Relief Fund and where best to allocate that money for maximum investment return. Joshua Pothier stated that the contribution was slightly over $200,000 and that both the Comptroller’s Office and the City Treasurer recommended that approximately $175,000 be held back to cover payroll and to look at investing in Fixed Income Funds while the Stock Market values are down. A motion was made by Thomas Quinley to hold back $175,000, seconded by Dennis Leary. Approved. The next financial meeting between the Relief Fund Board members and Hooker & Holcombe Investment Advisors (Art Meizner) is scheduled for 02/09/2009. Art concluded his presentation to the Committee members at 1740 hours. Frank Davis made a motion to return to the regular agenda, seconded by Thomas Quinley. Approved. 2. Minutes: Meeting minutes from May 12, 2008 were reviewed. Motion made to approve as written was made by Donald Leary, seconded Joseph Kochanski. Approved. 3. Reports: Treasurer Report: Joshua Pothier provided copies of the Treasurer’s Reports for months ending June 30, July 31 and August 31, 2008. Josh pointed out that the 2008 contribution to the Fund was $212,896 and that the Comptroller’s Office and the Treasurer would be holding back approximately a quarter’s worth of payroll and transfer approximately $140,000. Thomas Quinley made a motion to accept the reports as read and with the recommendations, seconded by Joseph Kochanski. Approved. 4. Communications: None 5. Old Business: a. Mr. Leary sent an email to Mr. Pothier and the Committee members asking when a retiree’s payments should begin – i.e. at the first of the month of the retiree’s birth month or on the first of the month following the retiree’s birth month. Mr. Benoit, Committee Chair, clarified to the Committee that discussions regarding this issue have taken place several times since the Plan was implemented; the practice has always been to begin payment in the birth month regardless of the birth date. The Committee agreed that going forward this is an item that could be more clearly defined in the Relief Fund Plan Review and Revision that is scheduled to be completed for 2010. Work on the next revision by the Committee members is scheduled to begin in February 2009. 6. New Business a. Mr. Leary provided the Committee for an application for Benefits for Joseph Winski Sr. As of January 1, 2008, EGP reflects that Mr. Winski has 31 years of credited service. Thomas Quinley made a motion to begin benefit payments in November 2008, in accordance to the request provided, seconded by Mr. Kochanski. Approved. b. Committee members question Mr. Pothier if Mr. Dawkins had made any headway regarding the open action item for non-firefighting related injuries and/or a draft Fitness-  for-Duty Policy. Mr. Pothier stated that he had not been provided with any update but would follow-up with him for the next meeting. c. Mr. Pothier stated to the Committee members that based on recent State of Connecticut legislation, effective October 1, 2008, Freedom of Information requirements stipulate that meeting minutes must be posted on the City website. More information and details will be provided at the next meeting. The next meeting is scheduled for December 8, 2008. Motion made to adjourn by Mr. Quinley and seconded by Donald Leary. Approved. Meeting adjourned 1756. Respectfully Submitted, Thomas G Quinley, Secretary November 3, 2008