Volunteer Firefighter Relief Fund Committee

City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes 133rd Meeting November 17, 2014 The Volunteer Firefighters’ Relief Fund Committee held its 133rd meeting on Monday, November 17, 2014, at 5:00 p.m. in Room 209, City Hall, Norwich, Connecticut. 1. Roll Call a. Members Present: Thomas Quinley, Yantic Karen Mankowski, Occum Joshua Pothier, Comptroller Donald Leary, East Great Plain Red McKeon, Occum/Past Chairman John John, P&P Board Appointee Brigid Marks, City of Norwich Human Resources Robert Aldi, Citizen Appointee Joseph Kochanski, Laurel Hill Gary Evans, City Manager Designee Art Meizner, Hooker & Holcombe, guest b. Members Absent: Richard Benoit, Taftville Brigid Marks called the meeting to order at 5:02p.m. 2. Review of Investments: Art Meizner stated that Hooker & Holcombe had no changes to recommend. Review of Portfolio: a. Page 1: Third quarter 2014, most investment areas were negative, approximately 10%. This was the expected negative correction investors had been predicting. b. Page 2: Investments showing signs of a comeback. 1. Quarter to date shows Large Cap has increased 2 – 2.5%; Small Cap has increased 6.59%. Year-to-date shows Large Cap increased approximately 10% and Small Cap is up 2% - Small Cap was not the place to be. 2. Bonds are up approximately 1%. World Bond (WGBI) and Commodities are not doing so well. Best returns were in the US versus World or European markets. c. Page 3: Over all the portfolio was down 1.4% for the third quarter. d. Page 4: 1. Large Blend (our top 30%) up 0.93% 2. Small Blend down 7.56%, no place to hide 3. Emerging Markets down 4.24% 4. PIMCO down 13.51% e. Page 5: Bonds up 0.28% 1. Multi Sector down 0.02% 2. Non-Traditional up 0.15% 3. Russell Short-Term down 0.06%  City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes 133rd Meeting November 17, 2014 4. World Bonds down 3% 5. Portfolio down 1.4% for the third quarter. f. Page 6: Performance for the month of October: 1. Large Cap up 2.25% 2. Small Cap up 6.6% 3. International and Global still negative approximately 1.24% 4. Commodities down 0.78% g. Page 7: Bonds 1. Multi-Sector YTD up 6.25% 2. World Bond YTD at 2.18% 3. Portfolio YTD up 4.75% h. The funds have done what they were supposed to do by insulating investments from market down turns. No recommendations for change at this time. The Committee thanked Art for his review and summary report which was very nicely prepared. 3. Minutes: the November 3, 2014 special meeting minutes were reviewed. A motion to accept by Josh Pothier, seconded by Joe Kochanski. Approved. 4. Treasurer’s Report: Josh reported that $18,000 was transferred into the fund during the quarter. Approximately $93 in interest was recei9ved. Paid pension expenses of approximately $65,000. Motion made to approved the Treasurer’s Report by Thomas Quinley, seconded by Donald Leary. Approved. 5. New Business a. Refund Requests: None b. Bills: None c. New Member Applications: None d. Pre-discussion before Vote: 1. Yantic overview: Thomas Quinley provided Yantic’s view. Yantic supports the change in age from 24 to 18 years, the increase of payment from $18-22 and the change in maximum years of service for new members joining the Plan after 01/01/2015, from 40 to 30 years of service. Yantic is against the increase in the minimum years of service to collect proposed to increase from 20 to 25 years of service, and increase in age to collect from 55 to 60 years. 2. East Great Plain (EGP): Donald Leary provided EGP’s view. EGP agrees with Yantic. The members of the departments are not City employees, they are volunteers. This is the sole benefit afforded to those individuals for risking their lives. 3. Josh commented that for most towns, the volunteers do not contribute, benefit is paid at the end of the year of service or paid as a benefit per call. 4. Discussion about Relief Fund versus Pension; this Plan is not a “Pension” but rather a “Relief Fund” a. What other towns have to do to fill the gap in services (i.e. place paid firefighters in volunteer houses).  City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes 133rd Meeting November 17, 2014 b. Paid Firefighters add significant increased costs. c. Additional membership is actively recruited to bolster volunteer ranks. d. Allocated costs for Mutual Aid Services to the Town Consolidated District of 1.5% of paid department labor costs, which translates to approximately $99,000 for the most recent fiscal period. e. The five (5) Volunteer Fire Departments raised a question of ethics – Town Consolidated District via the general fund is effectively being billed for City Mutual Aid. Billing for mutual Aid Services provided to the town districts with no reciprocal consideration could be raised as an ethics question going forward. e. Items up for vote: 1. Change in payment from $18 to $22 per Year of Service effective January 1, 2015. 2. Change in Dependents Beneficiary age reduced from 24 to 18 years as of January 1, 2015. 3. Change in the maximum Years of Service reduced from 40 to 30 years for new members who join the Plan after January 1, 2015. 4. Change in the number of Years of Service needed to collect payment from 20 to 25 years for new members who join after January 1, 2015. 5. Increase in the age of a member to receive payment from 55 to 60 years (this would be in conjunction with the minimum of 25 Years of Service), for new members who join the Plan after January 1, 2015. f. Vote: 1. Item 1- Change in payment: John John made a motion to approve, seconded by Donald Leary. Approved 6 to 3. Following members voted for: Yantic, EGP, Occum, Laurel Hill, John John, and Josh Pothier. Following members voted against; Gary Evans, Brigid Marks and Robert Aldi. 2. Item 2 – Change in beneficiary age, motion made by Tom Quinley, seconded by Donald Leary; Passed unanimously. 3. Item 3 – Change in maximum Years of Service from 40 to 30 years for members joining after January 1, 2015: motion made by Tom Quinley, seconded by Donald Leary; Passed unanimously. 4. Item 4 – Change in the number of Years of Service needed to collect payment from 20 to 25 years for new members who join after January 1, 2015. Motion made by Brigid Marks, seconded by Robert Aldi. Passed 5 to 4. Members voting for: Josh Pothier, Gary Evans, Brigid Marks, Robert Aldi, John John. Members voting against: Tom Quinley, Donald Leary, Karen Mankowski, and Joseph Kochanski. 5. Item 5 – Increase in the age of a member to begin receiving payment from 55 to 60 years (this would be in conjunction with the minimum of 25 Years of Service), for new members who join after January 1, 2015. Motion made by Robert Aldi, seconded by Brigid Marks. Failed 4 to 5. Members voting for: Brigid Marks, Josh Pothier, Robert Aldi, John John. Members voting  City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes 133rd Meeting November 17, 2014 against: Tom Quinley, Donald Leary, Joseph Kochanski, Karen Mankowski and Gary Evans. 6. Hooker and Holcombe cost evaluation: Josh proposed that H&H provide a revised cost summary associated with the approved Plan revisions. This cost summary will be provided to the City Council for final adoption as an attachment to the Volunteer Firefighters’ Relief Fund Plan Revisions as approved by the Relief Fund Committee vote. This would enable review and comparison to the cost analysis performed at the beginning of 2014 in support of 5-year Plan revisions and improvements for the next five (5) year period through 2020. 7. Codification Update; Josh Pothier stated that Attorney Driscoll stated that aside from a few typos, the codification looked positive. Driscoll also tentatively approved the use of a qualifying statement which would allow for the return to the original ordinance if something was unclear in the codification document. Attorney Driscoll will review and recommend specific wording for the statement and provide final comments for the next regular meeting. 8. Tax Abatement wording is the same with regard to training requirements. Josh will ensure that the Tax Abatement will have the same wording as the Relief Fund so that the two plans clearly mirror each other. A motion was made by Thomas Quinley to adjourn the meeting, seconded by John John. Approved. Meeting adjourned at 1812 hrs. Respectfully submitted, Thomas G. Quinley, Secretary