Chairman Bucci brought the meeting to order at 9:00 am. Roll call was taken.

Transcription

1 CITY OF FORT LAUDERDALE GENERAL EMPLOYEES RETIREMENT SYSTEM BOARD OF TRUSTEES MEETING 316 NE FOURTH STREET, SUITE 2, FORT LAUDERDALE, FL Thursday, July 7, :00 A.M. Page 1 of 7 Board s Communication to the City Commission Items Requiring City Commission Action None at this time Items That May Be Of Interest To The City Commission None at this time Items Submitted For City Commission Consideration None at this time Chairman Bucci brought the meeting to order at 9:00 am. Roll call was taken. Present: Absent: Also Present: John LeRoy Le Bucci, Chairman Mark Darmanin, Vice Chairman Sean Jones, Secretary Julie Cameron Darlene Pfeiffer Greg Slagle Dr. Bob Helmholdt Douglas Wood, Ex-Officio Lynda Flynn, Finance Alan Vordermeier, Vordermeier Mgmt. Company Robert Dunckel, Assistant City Attorney Ellen Schaffer, Public Pension Software Consultant Scott Baur, Pension Resource Center Sergio Giron, Pension Resource Center David Desmond, Pension Administrator Jane Dyar, Pension & Recording Secretary Chairman Bucci requested the Board review the minutes of the meeting for June 2, Mr. Darmanin made the motion to accept the minutes as presented. Dr. Helmholdt seconded the motion. The minutes were accepted unanimously. PENSION BENEFIT SOFTWARE PRESENTATION Chairman Bucci introduced Ellen Schaffer, Scott Baur, and Sergio Giron. Ms. Schaffer explained to the Board that she has been the GERS Pension software programmer since 1988, over twenty-three years. She added that Mr. Baur is CEO for the Pension Resource Center,

2 Page 2 of 7 whom she has been working with for the past fourteen years. Additionally, she introduced Mr. Giron, who is the website and IT manager for the company. She stated that they were here to address the concerns of the Board should something untimely happen to her, as she is a sole proprietor of her company. She said she has collaborated with Pension Resource Center and they support her software. She noted both companies were a natural fit together, that they addressed the legacy systems, and that some of her clients have already transitioned over to their system, Pension 21. Mr. Baur explained that initially his company was a client of Ms. Schaffer s, as a third party administrator to several public pension plans in Florida. Since then, they had grown to be one of the largest public plan administrators, and in turn one of her more dominant clients. He described the partnership as a natural progression. Mr. Baur detailed that over time his company added systems and developed additional specific programs. He continued that they were concerned with legacy systems and continuity of programs in relationship with Ms. Schaffer s clients. He reviewed the combination and evolution of their systems. Mr. Baur then presented the Board with information on the Pension 21 System, and the various options that would be open as an outsourced service, as well as the option of providing systems that would be the natural evolution to provide maintenance and survival of the Plan s current software. Mr. Baur added that the proposal they brought included concerns and costs that were requested from the Police and Fire Retirement Board. Mr. Darmanin questioned the listed costs versus what current costs run. Mr. Baur stated that the costs were listed for the complete outsourced system. He added that they could continue to support the existing legacy system, but forewarned that eventually when trying to update or replace the system, there would be a substantial cost. He believed there were areas where they could improve in functionality, specifically within programming that would attach information to member s files, which would assist in workflow and tracking. He went into further detail for the Trustees. Mr. Jones asked Ms. Schaffer to explain the relationship with her business. Ms. Schaffer stated that she was forming a partnership with Pension Resource Center and she was offering the services as an alternative to all her clients as a transition when she eventually retires. However, she noted that she is not contemplating retirement in the near future. Dr. Helmholdt asked if our current system was adequate. Ms Schaffer said it was, but should she decide to retire, this relationship would provide a seamless transition for her clients. She defined her purpose as wanting to give her clients reasonable comfort because she was a sole proprietor. Chairman Bucci asked if something were to unfortunately happen to Ms. Schaffer would the software she provided still be functional? Ms. Schaffer affirmed that Mr. Desmond would be able to operate it for quite sometime, at least until the time it needed to be modified due to an Ordinance change. Even then, she added, Mr. Desmond has a relationship with Microfocus Cobalt Company, through their annual support fee and licensing, so the system could run as long as necessary because it was a Windows based application. With no further questions, The Chair thanked Ms. Schaffer, Mr. Baur, and Mr. Giron for their information and presentation. REAL ESTATE SUB-COMMITTEE REPORT Mr. Darmanin asked the Board to review the minutes regarding the Sub-Committee RFP meeting. Ms. Cameron made a motion to approve the minutes. Mr. Jones seconded the motion. The minutes were accepted unanimously. Mr. Darmanin then reviewed new information on the 300 Property regarding the offer of $3.2 million. Dr. Helmholdt felt that the Board should hold steadfast on their offer and he explained his reasoning. Board consensus agreed. Mr. Darmanin asked that Mr. Dunckel reply to Mr. Ladd that there is continued interest at $3.2 million and add

3 Page 3 of 7 that the Plan could close on the property, without the necessity of financing, within 60 days. Mr. Slagle asked if there had been a risk analysis done regarding the property for anytime period of ten years. Mr. Darmanin stated no, however the consideration of an assemblage was discussed. A short discussion ensued. Mr. Darmanin next reviewed the construction in the 316 Building, saying it should be on time and within budget. Mr. Vordermeier interjected that he held an open house for the 4800 Building on June 30, 2011 with a large turnout and interest in the building. Mr. Vordermeier then brought up the subject of flood insurance for Suite 1 of the 316 building for the Board. He provided information as well as possible costs. A discussion was held. Mr. Darmanin announced, for the Board s information that while Mr. Vordermeier was returning from vacation with his wife, they were involved in a head-on collision. Mr. Vordermeier was happy to be able to attend the Board meeting and thanked trustees for their concern. Mr. Darmanin then asked about the status of the contractor s contract. Mr. Vordermeier stated he had not received it. Mr. Dunckel said that the contract was sent out on June 8, 2011 and that he resent it just before the meeting this morning. Mr. Vordermeier said he would check his when he returned to the office. Mr. Darmanin reviewed the RFP meeting and stated that the three firms were ranked as follows: 1) VMC 2) CPMG 3) Renaissance He stated that the Real Estate Sub-Committee will move forward and negotiate the contract with VMC, and should the negotiations fail, they would move to begin negotiations with the second place bidder. Ms. Cameron made a motion to allow the Real Estate Sub-Committee to begin negotiations on the contract. Mr. Jones seconded the motion. The motion was accepted unanimously. Chairman Bucci suggested that everyone use the current contract as a guideline and improve upon that. Mr. Darmanin noted several suggestions including some specific guidelines clarifying accounting format. A short discussion ensued. ATTORNEY S REPORT - Mr. Dunckel advised the Board that construction continues for Suite 1 at the 316 building. He apprised the Board of permit issues as well as a square footage change, however he did not feel anything would hold up the on-time completion. He agreed to keep the Board in the loop, noting most information had been covered with the Real Estate Sub-Committee report. - Mr. Dunckel received a letter from an attorney in reference to a Police Officer who was a previous member of GERS and had transferred the service to P&F. He reviewed and discussed the City Ordinance change at that time. Mr. Dunckel stated as the issue matured he would keep the Board up to date. - Mr. Dunckel handed out and explained a fact sheet regarding the Dodd Frank law. The paperwork was a simplified primer provided for the Trustees to review. Since there was a lot to digest, he would discuss it further at the next Board meeting. - Mr. Dunckel reviewed the Police and Fire annual report to the Commission for the Board s information. A short discussion ensued.

4 Page 4 of 7 AUDIT COMMITTEE REPORT Ms. Pfeiffer asked if the Chairman had executed the management audit contract with Marcum. Chairman Bucci affirmed it was signed June 29, She stated that Marcum has scheduled to begin the audit July 14, Ms. Pfeiffer noted that Marcum explained that if the necessary information was made available to them on a timely manner, they could have the report done by July 31, Ms. Pfeiffer concluded that the Sub-Committee members still had other areas that they were auditing. ADMINISTRATOR S REPORT - Mr. Desmond began by handing out a fact sheet reporting on six different state retirement plans and why they were considered well-funded retirement systems. - Mr. Desmond announced that Richard Wells had left DePrince Race and Zollo, that he was moving out of the Orlando area, and that he would be missed. - Mr. Desmond reported that Cohen Milstein recommended no action on any securities this month. - He explained that he spoke with Ray Edmondson at FPPTA regarding the Town Hall Meeting program that they offer. The Meeting could be tailored to discuss the specific aspects of the Fund or to educate the populace. He added that they explain only the defined benefit program and promote its aspects for public employees. Chairman Bucci interjected that he spoke with Fred Nesbitt and although it seemed to be a great program, there was very limited participation and attendance in previous meetings that they had held. Mr. Nesbitt explained to him that he felt it wouldn t be the right fit for GERS at this time. A short discussion ensued. Ms. Pfeiffer wanted it noted that she still felt that it was a good program especially with a new City Manager. She stated that citizens within Fort Lauderdale were more involved than in most other cities. She felt there would be good attendance if a program were held. There was a short discussion and the Board s consensus was to not hold a Town Hall Meeting at this time. - Mr. Desmond stated the Excel review of the benefit recipients was progressing slowly but surely. There were very few differences thus far resulting in amounts less than a dollar. - Mr. Desmond said he visited the 4800 Building and found that the a/c unit in the lobby was working properly. The grounds looked fine and there appeared to have been some work done in Suite 200. It appeared there was a light on, however the door was locked and he could not get in. - Mr. Desmond clarified for the Board that he met with the Chairman regarding a disagreement within the office staff. He stated he would hold a meeting and deal with the situation in-house. - Mr. Desmond explained that the City wide release of information regarding borrowing from the 457 Plans brought a higher than average number of phone calls for the week from employees asking to borrow funds from the Plan. BUSINESS IN PROCESS a) Managerial Audit - Chairman Bucci reviewed the updates on the managerial audit, which was still in progress. b) Request for Proposal Chairman Bucci stated that the Real Estate Sub-Committee was reviewing the request for proposal for a property manager. c) Town Hall Meeting Chairman Bucci noted that the Town Hall Meeting for pensions was covered earlier under the Administrators report. d) Retiree COLA - Chairman Bucci outlined the retiree COLA explaining that he sent a letter to the new City Manager welcoming him and giving him information. He

5 Page 5 of 7 received a response thanking him for the introduction. Additionally, he crafted a letter recommending the COLA to the Commissioners. e) Benefit Summary Spreadsheet - Chairman Bucci then affirmed that the benefit calculation spreadsheet was still under construction as Mr. Desmond covered in his report. f) Professional Contracts Pending - Chairman Bucci asked for the status of the professional contracts pending. Mr. Dunckel stated that he contacted Gabriel Roeder and was waiting to hear back from them. Mr. Desmond said that he met with Convergex at FPPTA and they would follow up shortly. Mr. Desmond also reminded the Attorney that a new Investment Consultant contract is needed. g) Disability Applications & Appeals - Chairman Bucci asked for an update on the disability appeal. Mr. Dunckel said he had not heard anything recently from Attorney Sicking. Mr. Desmond apprized the Board that a new disability was in process on a recently resigned employee and he was hoping to have it ready for the next Board meeting. h) Administrator s Review - Chairman Bucci discussed Mr. Desmond s annual review. He passed out a spreadsheet totaling the results of the Board s assessment and pointed out that the review put him in the satisfactory category. i) Dodd-Frank Act - Chairman Bucci stated the Dodd Frank information was appreciated and would be covered as noted in the attorney s report. j) Proxy Voting Chairman Bucci discussed the subject of proxy voting. Ms. Pfeiffer said that she felt the Board needed to create some parameters for proxy voting. Her understanding was that the custodial banks did most of the proxy voting. She added that if proxies were to come through with the say on pay provision or with certain provisions the Board would like to have brought before them, to instruct the bank to bring them before the Board. She stated she felt there would be time enough to alert the Board and present the proxies; then she gave an example. Chairman Bucci asked that the Audit Committee take the subject under consideration and bring their recommendations back to the Board. A short discussion ensued. Mr. Desmond suggested that Mr. Dahab could provide further insight during his presentation next month. MONTHLY FUND ASSET MIX Mr. Desmond said that May and June were down months but July was showing improvement. The equity portion was above the 75% maximum and the fixed income was a little below the 20% set in the policy. He noted that on July 1 st, he moved $1,200,000 from Aletheia to pay for the month s benefits. Mr. Darmanin clarified the percentages and asked if there was a cash call from RMK Timber. Mr. Desmond said he was following up but they were not ready for that call.

6 Page 6 of 7 BENEFIT REVIEW July 2011 RETIREMENTS Name Date Service Time Type William Wilson 4/1/16 11y Vested Parks & Recreation Sallie Menefee 7/6/11 15y, 19d Normal Police Cara Jean Nielsen 7/18/11 9y, 1m, 23d Normal Public Works Linda Nigg Building Services 7/21/11 28y, 6m, 18d Normal DROP RETIREMENT Name Date Department Cynthia Stuart 9/1/11 City Manager s Office DROP TERMINATION Name Date Philip Skidmore 8/1/11 POST RETIREMENT DEATH Name Date Robert Fye 4/24/10 Thomas Noonan 5/13/11 Donna Florus 5/27/11 Virginia Hutchinson 5/29/11 Howard Lucas 6/09/11 BENEFIT REVIEW Dr. Helmholdt made the motion to accept the Benefit Review as presented. Mr. Darmanin seconded the motion. The Benefit Review was accepted unanimously. EDUCATIONAL CALENDAR Mr. Darmanin made a motion to approve the Educational Calendar and to allow Board members and staff, the Ex-Officio or his designee, who wish to attend, to do so in accordance with the Educational Travel Policy. Mr. Jones seconded the motion. The motion was passed unanimously.

7 Page 7 of 7 BILLS Mr. Darmanin made a motion to approve the bills as presented. Dr. Helmholdt seconded the motion. The motion passed unanimously. PLEASURE OF THE BOARD Chairman Bucci explained that Mr. Desmond had concerns regarding mileage reimbursement and travel policy. Chairman Bucci stated that he felt either the City s website calculator or an online site such as Travelocity or Mapquest would be acceptable for calculating mileage. He also felt the Board should make a motion to use with the IRS reimbursement rate and change the Educational Travel Policy to read that way. Mr. Darmanin stated that travel for conferences should not follow the policy for City Travel. Mr. Desmond suggested the motion read travel allowance to be designated by the IRS and the second motion to allow accepted mileage software be used to calculate actual mileage. A discussion ensued. Ms. Pfeiffer made the motion that the mileage rate is the current IRS rate as of the date of travel and that the mileage is the actual point to point mileage documented by an acceptable online website. Mr. Darmanin seconded the motion. The Board accepted the motion unanimously. Ms. Pfeiffer stated she wanted clarity on the daily $5 incidentals. She wanted the Board s direction whether it should be paid for each day or only when there is an overnight stay. Chairman Bucci stated the Board should use discretion and govern themselves accordingly. Chairman Bucci explained that Police and Fire Pension Plan gave a presentation to the City Commission and he outlined it for the Board. He reminded the Board that the next meeting had been moved to August 11, In addition, P&F and GERS would be holding their Annual Pre-Retirement Seminar on September 22 & 23, Chairman Bucci then explained the investment return announcement to the Commission was in the May 5, 2011 minutes. He noted that Mr. Dahab reported that for the quarter ending March 31, 2011, the portfolio returned 4.6%, which was ranked in the top 8% of all public and private pension plans nationwide. For the trailing twelve-month period, the portfolio returned 16.6%, which ranked in the top 3 % of all public and private pension funds nationwide. BOARD COMMUNICATIONS TO THE CITY COMMISSION There were no communications to the City Commission at this time. Dr. Helmholdt made a motion to adjourn. Mr. Jones seconded the motion. The meeting adjourned at 11:23am.