08-03-1993 - Special
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Edgewater Firefighters' Pension Fund
Minutes
Special Meeting
Tuesday, August 3, 1993
Fire Administration Office, Fire Station #1
6:34 P.M.
A Special Meeting of the Firefighters' Pension Fund was
called to Order by Chairman Al Gilbert on Tuesday, August
3, 1993 in the Fire Administration Office at Fire Station
#1, 1605 South Ridgewood Avenue at 6:34 p.m.
Roll Call: Members present were: Firefighter James
Cas tetter , Chief William C. Vola, Mr. Robert Morin, Mr.
Ben Wagner, and Chairman Al Gilbert. Also present was Mr.
Steve Burkhalter from Smith Barney Shearson and Recording
Secretary Lisa R. Warren.
Approval Of The Minutes: The minutes for the July 20, 1993
Regular Meeting were submitted for approval. Chief Vola
moved to accept the minutes as submitted. Chairman Gilbert
stated he wanted to make it clear that he didn't really
mean that the Board could make more money in overseas
investments as was stated in the minutes. He added that
the Board might be able to in the future, but he wanted to
make it clear that at this point they are not able to go
into overseas investments and as long as he's here he has
no intentions of doing so. Mr. Wagner seconded. Motion
CARRIED 5-0.
Investment Report: Mr. Steve Burkhalter stated Shearson
Lehman Bros. had merged with Smith Barney. The new name is
Smith Barney Shearson and the name change will in no way
affect the funds or the investments of the Board.
Mr. Burkhal ter stated the current balance in the cash
account is $52,500. He stated this amount was a result of
three things: 1) Return of principal from short term
investments. 2) $1,572 input from the members of the fund.
3) City contribution for 92/93 in the amount of $11,688.
The total amount in the Pension Plan is $113,000.
Mr. Burkhalter stated since there was now over $100,000 in
the Pension Plan and because half of that is in the cash
account, it might be time to look at doing business a
little differently. He added that it was time to start
thinking like the bigger funds who have professional
managers specializing in particular areas of investments.
These people usually manage minimum accounts from
$1,000,000 to $10,000,000. Mr. Burkhalter would like to
suggest how the Board could start turning toward this type
of investing as safely as possible. Mr. Burkhalter stated
this type of fund was generally more liquid than bonds; it
would only take seven working days to cash.
There was discussion regarding Mutual Funds. Smith Barney
Shears on has gone to professional money managers who
manage minimums running from $2,000,000 to $20,000,000 and
asked them to run a fund for their clients who do not have
the minimum amount but the minimums can be met
collectively from other clients and run it as a. pooled
account or mutual fund. Shears on has collected eleven of
the best managers and put them together in their TRAK
Portfolios. Shears on will monitor and evaluate quarterly
and make recommendations. They charge a consulting fee
which is one and a half percent annually on the value of
the assets you have in that program. It is figured at the
actual account value on a calendar quarter. Mr. Burkhalter
submitted a sample proposal at this time.
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Edgewater Firefighters' Pension Fund
Special Meeting
Tuesday, August 3, 1993
Page 2
Mr. Burkhalter stated he would like to defer any decisions
until this program could be run before the Board Attorney.
Chief Vola asked the minimum the Board could invest. Mr.
Burkhalter stated the amount would be $25,000 and the
Board would receive a quarterly monitoring on their TRAK
assets as well as their regular monthly statements on
their other assets. Chairman Gilbert asked Mr. Burkhalter
to send a copy of the TRAK portfolio to each of the Board
members. Mr. Burkhalter asked the Recording Secretary to
send a list of the Board members' addresses to his
secretary. There was discussion regarding the Board's
options.
Chairman Gilbert suggested they call another meeting
before the end of August to make a decision regarding the
investments. Chief Vola suggested waiting until the Board
got a response from Mr. Sugarman to set a date for the
meeting. Mr. Burkhal ter concluded his presentation and
left at this time.
Chairman Gilbert called for a break at 7:20 p.m. Meeting
resumed at 7:24 p.m.
Unfinished Business: Chairman Gilbert stated he received a
letter from Bill Finch requesting his money from the
pension fund. He stated he had received a letter from the
City stating Mr. Finch had paid $1,692.33 into the fund.
Mr. Morin moved to pay Bill Finch $1,692.33 from the fund
and to have the check come back to the Board for
disbursement. It would then be mailed to Mr. Finch with a
letter of explanation. There was discussion regarding the
amount. Chairman Gilbert stated he confirmed it with the
City three times. Mr. Wagner seconded. Motion CARRIED 5-0.
Hew Business: Chairman Gilbert stated there would be a
FPPTA school for pensions and pension investment with
basic and advanced information on September 20 - 22nd.
Chief Vola stated he would like to attend the advanced
session of this school if he schedule would permit it.
James Cas tetter stated he would also like to attend. Mr.
Wagner stated he would like to attend but was unsure of
being able to rearrange his schedule. Chairman Gilbert
suggested they OK three to go and whether Mr. Wagner went
or he himself went it would be approved. Mr. Wagner moved
to send three people to the pension school in Fort
Lauderdale. Mr. Morin seconded. Motion CARRIED 5-0.
Firefighter Michael Hayes stated at the last meeting the
subject was brought up about some of the membership buying
back some time. He has spoken with those of the membership
that it would affect. They would like the Board to look
into it and find out how much they would have to pay back
and in what period of time. This way they would know how
long it would take to get them caught up to the date they
were hired. As it stands they are six months short.
Adjournment.: There being no more business to come before
the Board at this time, Chief Vola moved to adjourn. Mr.
Morin seconded. Meeting adjourned at 7:44 p.m.
If any person decides ~o appeal any decision made by ~he pension Board of Trus~ees
wi~h respec~ ~o any ma~~er considered a~ ~he above mee~ing, ~ha~ person will need
a record of ~he proceedings and, for such purpose, may need ~o ensure ~ha~ a
verba~.ia record of ~he proceedings is made, which record includes ~he ~es~imony
and evidence upon which ~he appeal is ~o be based.
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