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Home My WebLink About2007-11-19 Police & Fire Pension Board Minutes City of Dania Beach Police and Fire Fighters Retirement System 113 S.W. 1 Street Dania Beach, Florida 33004 Phone: (954) 921-0404 Fax: (954) 921-1403 E-mail: PFPENS@bellsouth.net Page 1 of 5 MINUTES NOVEMBER 19, 2007 REGULAR MEETING I. CALL TO ORDER The meeting was called to order by Chairman Rogers Meeting began 7:40 PM MEMBERS PRESENT: MEMBERS ABSENT: Chairman Larry Rogers Commissioner John Bertino Secretary Beulah Lair Vice Chairman Vince Marlin John Williamson Carolyn Jones Wardell Lee Ted Spongross Roger Handevidt ALSO PRESENT: Attorney Robert Sugarman - Sugarman & Susskind, PA Attorney Pedro Herrera — Sugarman & Susskind, PA Mike Welker— Bogdahn Consulting Jack Farland —Voyageur Asset Management, Inc Mike Spencer—Voyageur Asset Management, Inc. II. APPROVAL OF MINUTES MOTION by Beulah Lair to accept the minutes from the October 15, 2007 meeting as submitted. SECOND by Ted Spongross PASSED UNANIMOUSLY November 19, 2007 Page 2 of 5 III. CONSENT AGENDA No items listed on the Consent Agenda IV. OLD BUSINESS 4.1 BERTUCCIO &ADAMS DROP Attorney Sugarman opened discussion with the Board concerning e-mails from the City and the retirement system and Attorney Sugarman. The matter of their employment status remains to be resolved by the City, the employees involved, and their union, although the city advises that they were separated. The Board decided: • While the grievances are pending, the System will continue to pay the pensions to the members; • If the grievances are resolved so as to permit the members to continue their employment, then pension payment will stop and the members must repay all monthly pension payments received; • If the grievances are resolved so as to uphold their separation from employment, pension payments will continue; • Bertuccio's self-directed DROP balance will be moved to money market account within ICMA as selected by Bogdahn; • If Bertuccio loses grievance, then he gets interest on DROP balance in money market account and can withdraw or roll over balance; • If Bertuccio wins grievance, then System keeps all interest earned by account and principal amount is frozen until Bertuccio separates; • Adams DROP balance held by System is frozen until he loses grievance or if he wins grievance, until he thereafter separates. November 19, 2007 Page 3 of 5 4.2 UPDATED SUMMARY PLAN DESCRIPTION Chairman Rogers opened discussion with the Board and Attorney Sugarman regarding the updated Summary Plan Description that now includes police descriptions as prepared by the systems actuary, Steve Palmquist of Gabriel, Roeder& Smith MOTION by Beulah Lair to approve the updated Summary Plan Description as submitted by the systems actuary and to distribute the copies. SECOND by Wardell Lee 4.3 DIVESTURE IN SUDAN &IRAN RESPONSES Chairman Rogers opened discussion with Attorney Sugarman regarding the responses received by the retirement systems office from letters sent from Attorney Sugarmans office requesting divesture of the systems investments in Sudan & Iran The system is still waiting for the response letter from ICC. Attorney Sugarman will send another letter with information about the divesture and the systems consultant, Mike Welker will also call ICC regarding the same. 4.4 MERRILL LYNCH Chairman Rogers opened discussion with Attorney Sugarman in reference to Merrill Lynch and an article in the Sun-Sentinel. Since Merrill Lynch was the Systems former consultant Attorney Sugarman reviewed the options available in recovering any losses or unauthorized compensation from Merrill Lynch through arbitration or court litigation. MOTION by Ted Spongross to authorize Attorney Sugarman to Prepare a Tolling Agreement and information request and send to Merrill Lynch SECOND by John Williamson November 19, 2007 Page 4 of 5 V. NEW BUSINESS 5.1 44th QUARTER PERFORMANCE SUMMARY— BOGDAHN CONSULTING Mike Welker of Bogdahn Consulting discussed with the Board the retirement systems performance for the quarter and year ending September 30, 2007 as prepared by Bogdahn Consulting, LLC and reports a gain for the quarter ending 9/30/07 and year ending 9/30/07. 5.2 41h QUARTER PERFORMANCE REPORT—VOYAGEUR ASSET MANAGEMENT, INC Mike Spencer of Voyageur Asset Management, Inc. discussed with the Board the systems performance for the quarter ending September 30, 2007 for that firm's portion of the Fund. 5.3 BOGDAHN CONSULTING, LLC Chairman Rogers opened discussion with the Board and Mike Welker of Bogdahn Consulting, LLC concerning a yearly increase in the firms fees of$5500.00. Mike has provided fees charged from other consulting firms for review. Mike Welker also discussed with the Board the pros and cons of moving 5% of the fund into TIPS- Treasury Inflation Protected Securities and that the move would provide a hedge for market volatility. MOTION by Ted Spongross to increase Bogdahn Consulting, LLC fees by $5500.00 yearly and move 5% of the fund into TIPS. SECOND by Beulah Lair PASSED UNANIMIOUSLY 5.4 CHIEF CASSANO REQUEST FOR FINANCIAL ADVICE Fire Chief Cassano has requested from the Board for the system to pay for financial advice for one time since he just entered the DROP. The ordinance does not provide for the payment of fees for financial advice. VI. CORRESPONDENCE VII. NEW EMPLOYEE APPLICATIONS 7.1 Luis Hernandez 7.2 Jared Martin MOTION by Beulah Lair to accept the two new fire fighters Luis Hernandez and Jared Martin into the retirement system. SECOND by Wardell Lee PASSED UNANIMIOUSLY November 19, 2007 Page 5 of 5 VIII. RETIREMENTS / TERMINATIONS IX. OPEN DISCUSSION AND INFORMATION 9.1 DECEMBER 17 BOARD OF TRUSTEES MEETING Chairman Rogers opened discussion with the Board in reference to the Board meeting on December 17, 2007 and to keep the meeting scheduled as the first draft of the retirement system's audit will be finished and ready to present at that meeting. 9.2 SCANNER FOR OFFICE Chairman Rogers opened discussion with the Board in reference to purchasing a Visioneer Scanner for the office in order to scan documents into the computer MOTION by Ted Spongross to purchase a Visionner Scanner for the officer not to exceed $600.00 in price. SECOND by Beulah Lair PASSED UNANIMIOUSLY 9.3 ADMINISTRATOR Beulah Lair opened discussion regarding the Administrator's salary. Discussion took place among the Board and the Attorney Sugarman in reference to making the Administrator an employee. The savings for no longer paying for the Administrators E &0 insurance would be about the same as paying for the social security as an employee. MOTION by Beulah Lair to give the Administrator a 12% raise as an employee and provide for worker's comp insurance effective January 1, 2008. SECOND by Ted Spongross, PASSED UNANIMIOUSLY X. ADJOURN MOTION by Ted Spongross to adjourn meeting SECOND by Beulah Lair Meeting adjourned at 9:45 PM CITY OF DANIA BEACH POLICE OFFICERS' & FIREFIGHTERS' RETIREMENT SYSTEM Addendum to Statement of Investment Policy For MBIA Capital Mannement MBIA Capital Management has been retained by the City of Dania Beach Police Officers' & Firefighters' Retirement System to manage a portfolio of treasury inflation protected securities (TIPS). MBIA Capital Management was retained for this assignment based on their qualifications and experience in managing TIPS portfolios. Addendum This addendum is a part of the City of Dania Beach Police Officers' & Firefighters' Retirement System's Investment Policy and is intended only to complement the objectives and guidelines outlined therein. By signing this addendum the investment manager understands and agrees to adhere to the guidelines, investment manager responsibilities,and other conditions therein. Guidelines Within the guidelines contained in the Statement of Investment Policy established for the City of Dania Beach Police Officers'& Firefighters', MBIA Capital Management may invest and reinvest the assets of the Plan in a diversified portfolio of: • Treasury Inflation Protected Securities • Cash equivalent securities In order to comply with the guidelines for the entire City of Dania Beach Police Officers'&Firefighters' Retirement System as outlined in the Statement of Investment Policy, the MBIA Capital Management investment portfolio shall comply with the following criteria: 1. All fixed income securities shall be treasury inflation protected securities. 2. Cash securities shall not exceed 10% of the market value of the total portfolio. 3. The TIPS characteristics should exhibit those of the respected index. Investment Objectives MBIA Capital Management has been retained as the sole TIPS manager. The assets of the Plan managed by MBIA Capital Management shall be invested with the following objectives: Total Portfolio: The primary objective of the MBIA Capital Management portfolio shall be to achieve a return over the longer term (3 to 5 years) in excess of a Target Index. The Target Index for the MBIA Capital Management TIPS Portfolio shall be the Lehman Brothers TIPS portfolio. The secondary objective of the MBIA Capital Management portfolio shall be to achieve a rate of return over the longer term Q to 5 years) which ranks above average (top 40%) when compared to a representative universe of other, similarly managed portfolios. The volatility of the Fund's total returns is expected to be similar to that of the target index and will be evaluated accordingly. Policy Review It is the intention of the Board of Trustees of the City of Dania Beach Police Officers' & Firefighters' to review the Statement of Investment Policy and this Addendum from time to time and to amend them if necessary to reflect any changes in philosophy or objectives. However, if at any time the investment manager believes that the specific objectives defined herein cannot be met, or that the guidelines unnecessarily constrict perf rmance, the rustees shall be so notified in writing. air an, Boa d o T st City of Dania each Police fficers' & Firefighters' Retirement Plan ✓ a-1701 Date B[A Capital Management D to