Volunteer Firefighter Relief Fund Committee

City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes Special Meeting, November 3, 2008 The Volunteer Firefighters’ Relief Fund Committee held a special meeting on Monday, November 3, 2008, at 5:00 p.m. in room 209, City Hall, Norwich, Connecticut. 1. Roll Call Members present were: Karen Mankowski, Occum Donald Leary, East Great Plain Joshua Pothier, Assistant Comptroller Thomas Quinley, Yantic Red McKeon, Occum/Past Chairman Joseph Kochanski, Laurel Hill Art Meizner, Hooker & Holcombe, Guest Thomas Dawkins, Personnel Manager Members absent were: Joseph Ruffo, Comptroller Richard Benoit, Taftville Brian Curtin, City Treasurer Frank Davis, Citizen Appointee Thomas Dawkins called the meeting to order at 5:05 p.m. A motion was made to suspend the rules to hear a presentation by Mr. Art Meizner by Thomas Quinley, seconded by Thomas Dawkins. Approved. Mr. Meizner from Hooker & Holcombe Investment Advisors, Inc., provided each of the Board Members with an Asset Allocation and Performance Report dated September 30, 2008 (with updates). The review is being performed quarterly due to the market volatility. Mr. Meizner stated: 1. The outflow of monies is from Mutual Funds. 2. Retail investors are getting out in droves. 3. October was all sellers with very few buyers. It was really a “perfect storm”. 4. S&P was down 33%. Mr. Meizner then took the Committee members through a brief market recap as detailed in the report, noting highlights as follows: Page 3: we lived through it. Over the last 10 years, zero return for stocks. Page 4: Bonds were down ½ point. Fixed income was down a couple of percentage points. The markets were negative.  Page 5: Value Market, International very volatile - no place to hide to weather the storm. Page 6: Sector Results – small regional banks were up. Page 7: Small Cap was up 5%, Treasuries were up 2%. Page 8: US Government Rescue efforts through 09/30/2008 – the Government purchased troubled assets worth approximately $700 billion. The Relief Fund needs liquidity. Page 9: Unemployment up to 5.9%. Page 10: The Consumer Price Index, oil prices dropped by half. Page 11: Earning yield – Treasuries down to 3.8%. Q-Ration – stocks are becoming attractively priced. Page 12: Treasuries – yields and inflation Page 13: Consumer sentiment is in the doghouse. Page 14: Historical Market perspective – 4 negative quarters. Page 15: Market crises and recoveries – the Market from 2000-2002 was down 49%. Page 16: Beat the odds by staying invested – don’t harvest the losses. Page 17: The Relief Fund has a very diversified portfolio – balance represents 60/40, it is more conservative. Handout sheet summarizes the weekly market recap as of November 3, 2008. the Federal Rate is now 1%. Looks like there may be a stimulus package before Christmas (potentially $600-1200). Problem with available credit – the banks are hording monies and not making loans. Page 19: Total portfolio worth as of 09/30/2008 - $1,245,605.68. Page 21: Off 9.53%, since February 29, 2008 it is down 10.89%. Page 24: Manager changes - Russell has made nine (9) changes. Page 25: Active managers did terribly. Internationals – 18%, more volatile. No passive in the Relief Fund’s portfolio and Hooker & Holcombe does not have any recommendations for change at this time. The Committee would like to meet again quarterly to review portfolio’s status. Target meeting for late February 2009, regular meetings are scheduled for January and February 2009. Thomas Quinley made a motion to return to the regular agenda, seconded by Donald Leary. Approved. 2. Minutes: Meeting minutes from September 8, 2008 were reviewed. Typographical errors were noted – Dennis Leary needed to be changed to Donald Leary. Motion made to approve with corrections was made by Thomas Quinley, seconded Thomas Dawkins. Approved. 3. Reports: Treasurer Report: Joshua Pothier stated that the Treasurer Reports would now be provided quarterly. It was noted that the City of Norwich’s contribution of $250,000 was deposited in the Relief Fund account. Thomas Quinley made a motion to accept the reports as read and with the recommendations, seconded by Thomas Dawkins. Approved. 4. Communications: None 5. Old Business: None. 6. New Business: None The next meeting is scheduled for December 8, 2008. Motion made to adjourn by Mr. Quinley and seconded by Donald Leary. Approved. Meeting adjourned 1755. Respectfully Submitted, Thomas G Quinley, Secretary December 8, 2008