02-12-1997
~
w
u
r
.--..
Edgewater Firefighters' Pension Fund
Regular Meeting
VVednesday, February 12, 1997
6:34 p.m.
Call to Order: The Regular Meeting of the Firefighters Pension Board was called to
order on February 12, 1997 by Secretary Richards at 6:34 p.m. in the Fire Administration
Office. Members present were: Bill Vola, Fred Munoz, Jill Landreville and Secretary
Patricia Richards. Chairman Nancy Williams was absent. Also present were Mr. Steve
Burkhalter and Mr. Charlie Mulfinger from Smith Barney, and Lisa R. Miller, Recording
Secretary.
Minutes: The Minutes from the December 17, 1996 regular meeting were submitted for
approval. Mr. Vola moved to approve the minutes as submitted. Ms. Landreville seconded.
Motion CARRIED 4-0.
Old Business: Ordinance 95-0-13 was discussed. A draft response from the City
Attorney was presented for the Board's approval to respond to a letter from Mr. Charles
Slavin from the State. Mr. Vola moved to approve the City Attorney's letter to the State and
to thank her for taking care of this matter. Motion CARRIED 4-0.
A bill was presented from Attorney Robert Sugarman for giving the Board information on
the wording for a change in the investment assumption ratio. It was noted the board had
requested a quote on what it would cost to do this and Attorney Sugarman responded by
doing this assignment to save time, charged for one hour, and left the option open to the
Board to pay if they felt it was appropriate. It was noted the City Attorney would have to
rewrite it to fit into the City's format, but she would not be starting from scratch. Mr.
Munoz moved to pay Attorney Sugarman's bill in the amount of $160.00. Ms. Landreville
seconded. Motion CARRIED 4-0. Mr. Vola moved that this be forwarded to the City
Council through the City Attorney's Office and that the board wants to go forward with the
70/30 change in investment ratio. Mr. Munoz seconded. Motion CARRIED 4-0.
New Business: There was discussion regarding the Annual Report. Mr. Munoz stated
the Annual Audit will be ready on March 3. He gave a brief report. Mr. Vola moved to
accept the annual report with thanks to the Finance Department. Ms. Landreville seconded.
Motion CARRIED 4-0. Secretary Richards signed the Annual Report at this time and it was
noted Chairman Williams would come in to sign it at the office. Mr. Munoz stated there
was a management comment in the Annual Audit about exceeding 5% of their assets in any
one investment. They would not take that comment off as it was stated that way in the
Board's Statement of Investment Policy and Objectives. Mr. Steve Burkhalter and Mr.
Charlie Mulfinger from Smith Barney arrived at 6:50 p.m. Mr. Munoz stated that the
language needed to be changed so it is quite clear that they mean 5% of the total assets of
the plan, not 5% of the subdivision of assets. Mr. Munoz moved that roman numeral III in
the investment guidelines B Equities under item #1 to be taken out. Mr. Vola seconded.
Motion CARRIED 4-0.
Investment Report: Mr. Mulfinger gave the quarterly report. There was discussion
regarding the investment ratio from stocks to bonds and interest rates. The total portfolio at
the end of the quarter was $324,000. Mr. Mulfinger stated he had conversations with
LC.C. Capital Management about performance. He added the gentleman they had
originally contracted with, Fred Schockley who had established their performance record in
the past, was under contract. 1. C. C dropped his contract about a year ago. Mr. Mulfinger
added his replacement was David Cushner and he is now their value manager.
1
."
#
.
Q
u
.. ~
Firefighter Pension Fund
Regular Meeting 12/17/96
Page 2
He added their track record from when they first hired them doesn't mean anything because
when you change the invest manager that is responsible for generating the past
performance, you lose the track record. He added David managed the value and Andy
Riggs managed the growth and noted that Andy wasn't with them originally. Mr.
Mulfinger stated he would watch this very closely, as any time there are changes that are
significant. Mr. Mulfinger stated I.C.C. should have informed the board of any changes
this significant. The Board thanked Mr. Burkhalter and Mr. Mulfinger for their presentation
and they left at this time.
The bill from I.C.c. Capital Management was submitted at this time. Mr. Vola moved to
pay the ICC Capital Management bill in the amount of $115.61 and $286.84. Ms.
Landreville seconded. Motion CARRIED 4 - O.
A copy of Chairman Nancy Williams resignation was submitted for the Board's approval.
Mr. Vola moved to accept Nancy Williams resignation. Mr. Munoz seconded. Motion
CARRIED 4 - O. It was noted the Board would need to choose a new fifth member.
Applications would be submitted for review at the next meeting.
There being no more business to come before the Board at this time, Ms. Landreville
moved to adjourn. Mr. Munoz seconded. Meeting adjourned at 7:40 p.m.
Minutes respectfully submitted.
Lisa R. Miller
Recording Secretary.
2