Pension Board of Trustees

City of Wilton Manors General Employee & Police Pension Board of Trustees Minutes September 4, 2018 I. Pledge of Allegiance II. Call To Order Vice Chair Balistreri called the meeting of the Wilton Manors Pension Board of Trustees to order at 5:30p.m. Ill. Roll Call George Farrell, John Pilch and Vice Chair Biagio Balistreri. Barbara Bihus was out of town Others Present: John Small, Bob Mays, Joan Wall and Brian Vodicka IV. Comments from the Public Bob Mays said there were four (4) positions on the board up for appointment by the commissioner's. John Pilch and Biagio Balistreri City Appointees' and Barbara Bihus and new applicant Brian Vodicka. Brian Vodicka was present and approached the Board to introduce himself. He stated his name and his address 2601 NW 3 Ave., Wilton Manors, FL 33311. Mr. Vodicka said he is a former attorney and also a former certified public accountant, when he was with Arthur Anderson he audited all the gas companies, banks, public schools and universities, so he takes very seriously the fiduciary duty obligation especially when dealing and making decisions with other people's money. Attorney Levinson asked Mr. Vodicka where he was originally from and he said Oklahoma and also lived in Texas for 50+ years. He has been a resident for 2 years. V. Consent Agenda Vice Chair Balistreri asked for a motion to approve the consent agenda and also asked if anyone wanted any item pulled from the Consent Agenda for further discussion and if not he would like a motion to approve the Consent Agenda. Minutes: June 5, 2018 Trustee Farrell made a motion to approve the Consent Agenda, seconded by Trustee Pilch. Approved Unanimously Page 1 of 5 City of Wilton Manors GE & Police Pension Board of Trustees Minutes- September 4. 2018 Page 2 of 5 VI. Other Business 1. Southeastern Advisory Services Second Quarter- June 30, 2018 John Small was present to go over the 2nd quarter performance with the Board. • S&P 500 up 3.4% for the quarter, one year 14.4% • The EAFE Index -1.2% for the quarter, 6.8% for the one year • BbgBarc U.S. Aggregate -0.2% for the quarter, -0.4% for the one year • 91 Day Treasury Bills 0.5% for the quarter, 1.4% for the one year • CPI 1.0% for the quarter, 2.9% for the one year Portfolio Growth • Good quarter all managers had positive returns. Almost $650,000 gain for the quarter • $28,217,194 for the quarter ending 6/30/18 Performance Comparison Total Fund Analysis 2nd quarter 2.3%/10th- 1 year 9.0%/36th Equity Analysis 2nd Quarter • Vanguard Russell1000 3.5%/33rd very good quarter, strong one year number 14.5%41 51 *Vanguard Russell1000 was funded on June 16, 2016 • Vanguard Mid Cap Value 1.4%/83rd, one year 9.5%/571h good number *Vanguard Mid Cap Value was funded on June 14, 2016 • Eaton Vance SMID Cap 3.7%nOth, one year 18.4%/281h *Eaton Vance SMID Cap was funded on June 16, 2016 • Garcia Hamilton Fixed 0.5%/91h, one year 0.6% 9th very strong one year number • Vanguard Ultra Short Bond 0.5%/81h, one year 1.4%/11th Allocation of Assets for the Quarter Ending June 30, 2018 • Equity 63.0% - International 0.0% - Fixed Income 28.8% - Cash 8.2% City of Wilton Manors GE & Police Pension Board of Trustees Minutes -September 4. 2018 Page 3 of 5 Objectives and Policy Review • The total rate of return should equal or exceed the Consumer Price Index plus 5% over a rolling three-year period. Not Achieved 5.1% • The total rate of return should rank in the top half of the Wilshire Cooperative Public Fund Universe over a rolling three year period. Not Achieved 891h • Each security class to exceed the appropriate selected unmanaged market index over a rolling three year period. • Garcia Hamilton- Fixed- Achieved 2.1% • Percentile Rank of Manager in Appropriate Universe Must Exceed the Median (50th percentile) • Garcia Hamilton Fixed Income -Achieved 91h • Percentile Rank of Manager in Appropriate Universe Must Place Within the Top Third (33 1/3 percentile). • Garcia Hamilton Fixed Income -Achieved 26th Asset Allocation - Actual - Quarter Ending 6/30/18 Equity- Within Range 63.0% - Fixed Income- Within Range 28.8% - Cash -Within Range 8.2% Everything within range and no violations of policy. Very strong quarter July up 2.2% and August numbers weren't in yet. S & P up around 3% John Small went over the Asset Allocation, he said this was to make sure we have enough money to pay distributions. This is just a rebalancing of what was set up. Vice Chair Balistreri asked for a motion, Attorney Levinson said the motion could be to rebalance to the policy consistent with the consultants recommendations. Trustee Pilch made the motion, seconded by Trustee Farrell. Approved Unanimously John Small said he would notify Regions bank about the reallocation. Attorney Levinson said he had a few questions for future discussion. On page 4 of the report there are no international holdings, at one time we did and asked John Small if this was a good decision to take money from international. The policy that was set a while ago says 13.5% international. Would like this to be discussed at a future meeting, at some point do we want to reallocate or not and if not we may want to remove international from the policy. This policy was set up with the past board but Attorney Levinson said we have a new board and this is something for future discussion. VII. Joan Wall, Administrator 1. Proposed Budget 9/30/19 Joan Wall said the budget was the same as last year $200,000.00. The actual2018 budget is well within budgeted amount $140,000.00. Some line items in the 2019 budget have been adjusted, but the bottom line amount of $200,000.00 remains the same. There was a brief discussion with the board. City of Wilton Manors GE & Police Pension Board of Trustees Minutes - September 4. 2018 Page 4 of 5 Bob Mays prepared a Pension Plan Expense comparison from FY10 to FY17. He wanted to show the board the history of the various kinds of expenditures the plan has had. Bob Mays said if the Board had any questions for him, they are free to call him anytime. Vice-Chair Balistreri asked for a motion to approve the proposed budget presented by Joan Wall. Trustee Pilch made a motion to approve the proposed budget from Joan Wall, seconded by Trustee Farrell. Approved Unanimously VIII. Attorney Report 1. Follow up that exiting Chair Joshua Kroon filed his Form 1F. 2. E-mail from Rita Sanz: Question: "As I understand the City's pension ordinance: At age 59 or under, with 15 years of service, I could take "early" retirement and receive 48% of my salary calculation, but at age 60 and over, with 15 years of service, I MUST take "normal" retirement and receive just 45% of my salary calculation. Please confirm that this is the case. If not, I would prefer to take "early" retirement. 3. Attorney Levinson's response to Rita Sanz question: Normal retirement is available: 1) at or after age 60 with 5 or more years of service, or 2) upon completion of 20 or more years of service, regardless of age. A member is never required by the Pension Board to retire. The member's actual retirement date is up to the member. Members who are eligible for normal retirement may retire at age 60, or may continue to work and earn additional service credit. Because the Pension Plan has a 3% multiplier, Ms. Sanz would earn an additional 3% for each year that she continues to work after normal retirement eligibility. Because Ms. Sanz is eligible for normal retirement, early retirement is not available. The response from Attorney Levinson was e-mailed to Ms. Sanz. 4. Trustee Pilch said she talked to him and she still thinks she would receive 48% if she had taken "early" retirement. Someone needs to explain this to her. 5. Bob Mays said he would gather the e-mail correspondence and sit down with Rita Sanz and try to explain it to her. There was a brief discussion with the Board and Attorney Levinson and they agreed to have Bob Mays talk to Rita Sanz 6. GRS - 112.664 Florida Statutes Compliance Report 9/30/2017 -Attorney Levinson said if there were any questions about the report to discuss this with the actuary the next time they are at a board meeting. This report needs to be put on the City Web Site and Attorney Levinson thanked Bob Mays for taking care of this for the board. IX. Reports from Board Members Trustee Farrell asked John Small, "if this Board was not able to meet in any particular quarter, what would happen to the R & D"? John Small said there is a cushion and that we could go about 2 quarters. City of Wilton Manors GE & Police Pension Board of Trustees Minutes- September 4. 2018 Page 5 of 5 X. Participant Section None XI. Adjournment Vice Chair Balistreri adjourned the meeting at 6:29pm. Date: I  AGENDA WILTON MANORS GENERAL EMPLOYEE & POLICE PENSION BOARD OF TRUSTEES REGULAR MEETING Tuesday December 4, 2018 COMMISSION CHAMBERS 4:45 PM I. PLEDGE OF ALLIGENCE II. ELECTION OF BOARD 2018-2020 • NOMINATION OF sttt MEMBER • NOMINATION OF CHAIR • NOMINATION OF VICE-CHAIR • NOMINATION OF SECRETARY Ill. CALL TO ORDER IV. ROLL CALL V. ADDITIONS/DELETIONS VI. COMMENTS FROM THE PUBLIC Any member of the Public may speak on any issue for three (3) minutes VII. CONSENT AGENDA Items listed under Consent Agenda, Item VI, are viewed to be routine and One Motion will enact the recommendation in the form listed below. If discussion is desired, then the items(s) will be removed from the Consent Agenda and will be considered separately. Approval of Minutes: • September 4, 2018 Motion to Receive and File: Warrant 2018-022 • Hoekstra - Recording/Secretarial Services $1,000.00 Warrant 2018-023 • FPPTA School Registration $2,400.00 Warrant 2018-024 • FPPTA Fall School- Trustees Per Diem $ 816.00 Warrant 2018-025 • Klausner, Kaufman, Jensen & Levinson Invoice 8/31/2018 $1,275.00 Warrant 2018-026 • Gabriel Roeder Smith & Co. Invoice #441346 $4,600.00 Warrant 2018-027 • Garcia Hamilton & Associates Invoice #29602 $4,233.84 • Gabriel Roeder Smith & Co. Invoice #441987 $2,000.00 • Klausner Kaufman Jensen & Levinson Invoice 9/30/18 $ 650.00 • Southeastern Advisory Services quarter ending 9/30/18 $4,621.67 • NCPERS - Membership Renewal 2019 $ 250.00 Warrant 2018-028 • Trustees - Reimburse Hotel, tolls & fuel - FPPTA School $3,457.32  Klausner Kaufman Jensen & Levinson, Attorney Invoice 10/31/18 0 • 3018 Rate of Return is 4.40% Net of Fees • Fiscal Year September 30, 2018 11.10 Net of Fees • Garcia Hamilton & Associates OE 9/30/2018 • Saxena White 03 2018 Select Investor Monitoring Report • September 5, 2018 e-mail to Region from John Small, Southeastern Advisory authorizing changes • September 7, 2018 - Division of Retirement -Actuarial Valuations through October 1, 2016 • September 17, 2018 updated memo- Amendment 6 • Rita Sanz- Straight Life Annuity Benefit $2,221.29 monthly VIII. NEW BUSINESS • November 26, 2018 letter - Finance Director's Recommendations IX. OTHER BUSINESS • Southeastern Advisory Services OE 9/30/2018 • Asset Allocation X. JOAN WALL, ADMINISTRATOR XI. ATTORNEY REPORT • RMLO • Special Tax Notice XII. REPORT FROM BOARD MEMBERS • Trustee Brian Vodicka 10/31/18 e-mail request Review of our diversification investment strategy XIII. ADJOURNMENT Pursuant to FS 286.015, if a person decides to appeal any decision made by the Board, agency or commission with respect to any matter considered at such meeting, or hearing, he/she will need a record of the proceedings and that, for such purposes, he/she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. ANY PERSON REQUIRING AUXILIARY AIDS AND SERVICES FOR THIS MEETING MAY CALL THE ADA COORDINATOR AT 390-2122 AT LEAST TWO WORKING DAYS PRIOR TO THE MEETING. IF YOU ARE HEARING OR SPEECH IMPAIRED, PLEASE CONTACT THE FLORIDA RELAY SERVICE BY USING THE FOLLOWING 2 PHONE NUMBERS: 1-800-995-8770 (VOICE) 1-800-955-8771 (TOO) POST: City Hall Bulletin