11-19-1997
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Edgewater Firefighters' Pension Fund
Regular Meeting
Wednesday, November 19, 1997
6:32 p.m.
Call to Order: The Regular Meeting of the Firefighters Pension Board was called to
order Wednesday, November 19, 1997 by Chairman Vola at 6:32 p.m. in the Fire
Department Training Room. Members present were: Chairman Bill Vola, Secretary Patricia
Richards, Mr. Fred Munoz, and Mr. Gary Butt. Ms. Jill Landreville was absent. Also
present were Mr. Erick Bell from STI Capital Management, and Lisa R. Miller, Recording
Secretary.
Minutes: The Minutes from the September 11, 1997 Special Meeting were submitted for
approval. Mr. Butt moved to approve the minutes as submitted. Mr. Munoz seconded.
Motion CARRIED 4 to O.
Presentation: Mr. Erick Bell from STI Capital Management made a presentation before
the Board. There was discussion regarding the fee schedule and it was noted STI would
charge 75 basis points billed quarterly in arrears. For this fee the Board would have a
custodian and an investor for the funds with no trading fees. STI would also make any
disbursements to pay bills and for people receiving benefits including W -2' s, and yearly
statement of benefits for the membership. Mr. Munoz noted this would take away some of
the work from the Finance Department who had been tracking the purchase and sale of
individual investments for auditing purposes. Mr. Bell stated if the Board chose to go with
STI the funds would be invested as follows: 30% in a high grade equity fund, 30% in a
high grade equity income fund, and 40% in a high grade bond fund. There was discussion
regarding the necessity for the Board to have a checkbook and how disbursements for
Pension Board bills would be made. It was noted there did not need to be a checkbook and
that the process of paying bills by a letter of authorization signed by any two Board
members could continue. Mr. Bell stated there would be no penalty if the Board ever left
STI Capital Marketing. Mr. Bell provided the Board with a copy of contract for their
review. The Board thanked Mr. Bell for his presentation and he left at this time. Chairman
Vola stated the Board had three options before them 1) to stay with ICC Capital
Management, 2) to go with Smith Barney and the three different money managers, or 3) to
reconsider their earlier decision and go with STI. There was discussion regarding the
options before the Board. Mr. Munoz moved to hire STI Capital Management as the
custodian and investment manager and to rescind the earlier motion hiring Smith Barney to
retain three different money managers for the Board. Ms. Richards seconded. Motion
CARRIED 4 to O.
There was discussion regarding the contract with STI Capital Marketing. Ms. Richards
moved to send the STI Capital Marketing contract to Attorney Sugarman to review. Mr.
Butt seconded. Motion CARRIED 4 to O. It was noted that Smith Barney would continue
to be custodian until such time as the contract with STI was signed and that a letter would
be sent to Smith Barney advising them of the upcoming change.
Old Business: There was discussion regarding coming into compliance with State
requirements. It was noted the Board was waiting for the information that was to be
addressed by Attorney Sugarman and Foster and Foster.
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Firefighter Pension Fund
Regular Meeting 11119/97
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New Business: There was discussion regarding Attorney Sugarman's bill for the review
of the Smith Barney contracts. Mr. Munoz moved to pay Attorney Sugarman's bill for
reviewing the Smith Barney contract. Ms. Richards seconded. Motion CARRIED 4 to O.
Information was also given to the Board in the form of a letter from Mr. Sugarman stating
the federal Taxpayer relief Act of 1997 requires that any payment to a law firm must be
reported to the IRS. It was noted this letter should be forwarded to the investment firm
doing the disbursements for the Board.
There was discussion regarding the bill submitted by ICC Capital Marketing. Mr. Munoz
moved to pay the ICC Capital Marketing bill in the amount of $513.66. Ms. Richards
seconded. Motion CARRIED 4 to O.
There was discussion regarding the 1997 Actuarial valuation. It was noted the information
requested from Foster & Foster, the Board's Actuary, was sent by the Finance Department
and the Board is awaiting the completed valuation.
There was discussion regarding the annual dues for FPPT A. It was noted none of the
Board members had been able to attend any of the pension schools that had been held
recently due to conflicts in scheduling. Mr. Munoz moved to pay the FPPT A annual dues
in the amount of $200.00. Ms. Richards seconded. Motion CARRIED 4 to O.
It was noted Ms. Richards had been reappointed for another term by Council.
There was discussion regarding upcoming pension schools. It was noted the next time
someone went they should get as much information as they could regarding the DROP plan
that was discussed at an earlier meeting. Chairman Vola requested the Board members
check their schedules to see if they could attend upcoming pension schools as it would
benefit the Board.
There being no more business to come before the Board at this time, Mr. Butt moved to
adjourn. Ms. Richards seconded. Meeting adjourned at 7:35 p.m.
Minutes respectfully submitted.
Lisa R. Miller
Recording Secretary.
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