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Home My WebLink AboutCOMM - Meeting Minutes - 167 - 10-30-1997 - RETIREMENTSold By IMF Limited Form 825 E41725=C 101 �1 1 1 Minute No. 167 Washington County Retirement Board Washington, Pa., October 30, 1997 The monthly meeting of the Washington County Retirement Board was held at approximately 11:00 a.m. on Thursday, October 30, 1997, in the Public Meeting Room, Courthouse Square Office Building, Washington, Pennsylvania, with the following members being present: Commissioners Diana L. Irey, J. Bracken Burns, Sr., Joseph A. Ford, Sr.; Treasurer Francis King, and Controller Paul Belcastro. Also being present: Michelle Miller, Chief Clerk; Bill McGowen, Director of Administration; Joe Smydo, Observer -Reporter; Kathy Thomas, Valley Independent; Chris Haines, Herald Standard; and Douglas Thompson, Schuykill Capital Management. LTD. Approval of Minutes Commissioner Irey entertained a motion to approve Minute No. 166 dated September 18, 1997. Moved by Mr. Belcastro, seconded by Mr. King, that Minute No. 166 dated September 18, 1997 be approved as written. Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. Treasurer's Report RETIREMENT ALLOWANCE REPORT Bank Balance as of September 1, 1997 $ 162,169.55 Deposits to Checking Account Transfers to Investment Account Less: Cancelled Checks Less: Transfers to Investment Account Bank Balance as of October 1, 1997 Less: Outstanding Checks Less: Retirement Check run as of September 30, 1997 Deposit Error Reconciled Balance as of October 30, 1997 186,316.33 200,670.64 222,832.27 192,266.06 $ 134,058.19 62,359.40 72,476.46 777.67 $ 0.00 102 Moved by Mr. Belcastro, seconded by Mr. Burns, that the Treasurer's Report be approved as submitted. Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. Requisitions Moved by Mr. Belcastro, seconded by Mr. Burns, that the following Requisitions be approved: Check No. Payee Amount 1753 Estate of Jess D. Costa $ 63.98 1754 Estate of Jean Kepic 162.60 1755 Darla Albera 151.45 1756 Elizabeth L. Felix 9,654.72 1757 Danielle L. McConnell 897.51 1758 David E. Neil 22,680.51 1759 James L. Palmer 2,937.99 1760 National City Bank as trustee of IRA of Stephen M. Rauch 7,075.04 1761 Douglas F. Sleva 240.38 1762 Patricia A. Verno 373.82 Transfer: PNC Bank 13,413.19 Transfer: Washington County Cash Disbursement 34,645.44 Transfer: Washington County Retirement Allowance 109,946.84 TOTAL TO BE TRANSFERRED $202,243.47 Roll call vote taken: Mr. Belcastro - Yes; Mr. King - Yes; Mr. Ford - Yes; Mr. Burns - Yes; Mrs. Irey - Yes. Motion carried unanimously. 103 Sold By !MR Limited Form 825 F417350 1 1 1 Old Business Discussion on RFP for the selection of an additional money manager. Mr. Belcastro led the discussion by reiterating he is not in favor of hiring additional money managers. He said that the County does not have the expertise to select the managers. Therefore, the Retirement Board should negotiate with Yanni- Bilkey to secure a revised price on search assistance. Frank Domiesen discussed the process that would be used to select money managers. He said Yanni-Bilkey has over 300 names in its data base. Mr. Domiesen told that the initial list of RFP's received would be reduced to 5 to 7 names before presentations would be made to the Board. He said the cost for Yanni-Bilkey's involvement in this process would be $17,500. Mr. King and Mr. Burns said they would entertain additional proposal ideas from Yanni-Bilkey. Mr. Domiesen said he would reduce Yanni-Bilkey's rate for assisting in the search from $17,500 to $15,000. The County would then be responsible for developing the initial screening list. Commissioner Ford stated that although he is in opposition to the concept of the adding additional money managers, he is okay to move forward with the process. Mr. Belcastro told the Retirement Board that the County does not have to advertise for the RFP. However, Commissioner Burns and Commissioner Irey expressed interest in advertising. Commissioner Irey asked the price Yanni-Bilkey would charge to perform only the initial qualification screening, after the County advertised for the RFP and reduced the list to five to seven names per sector. Mr. Domiesen told that this process would cost $10,000. Mr. Burns made a motion to adopt this method of selecting money managers, while Mr. King seconded the motion. Before the roll call, Commissioner Irey asked the present money managers what their response would be to an ad indicating an RFP for money managers. Norm Allen said he thought approximately five to twenty proposals would be received. Roll call taken Mr. Belcastro - no, Mr. King - yes, Mr. Ford yes, Mr. Burns - yes, Mrs. Irey - no. Motion carried. Mr. Belcastro then presented the 1998 budget for the Retirement Board. Mr. King commented that the only change in the budget from 1997 was the increase in the monitoring amount. Commissioner Burns made a motion to accept the 1998 budgetas ". presented. Mr. King seconded the motion. Roll call taken Mr. Belcastro - yes, Mr. King - yes, Mr. Ford - yes, Mr. Burns - yes, Mrs. Irey - yes. (Commissioner Ford left the meeting) WASHINGTON COUNTY RETIREMENT BOARD PROPOSED 1998 BUDGET PERSONAL SERVICES: Wages - Regular $ 240 FICA 18 TOTAL PERSONAL SERVICES $ 258 OTHER SERVICES: Telephone 100 Postage 1000 Copying/Printing 200 Contracted Services: Actuarial 21,500 Investment 232,000 Custodian 28,000 Auditing 2,500 Monitoring 25,000 TOTAL OTHER SERVICES 310,300 MATERIALS AND SUPPLIES Office Supplies 500 TOTAL MATERIALS AND SUPPLIES 500 TOTAL BUDGET - OPERATING 311,058 ESTIMATED COUNTY APPROPRIATION 70,000 TOTAL BUDGET REQUEST 381,058 New Business To Be Noted For The Record - CETA Employee Purchases The following active County employee who was originally hired under the Comprehensive Employment Training Act (CETA) program will purchase her service credit for the period of time that they were employed under the CETA program. 105 Sold By IMR Limited Form 825 E417350 1998 BUDGET Mr. Belcastro then presented the 1998 budget for the Retirement Board. Mr. King commented that the only change in the budget from 1997 was the increase in the monitoring amount. Commissioner Burns made a motion to accept the 1998 budge as presented. Mr. King seconded the motion. Roll call taken Mr. Belcastro - yes, Mr. King - yes, Mr. Ford - yes, Mr. Burns - yes, Mrs. Irey - yes. (Commissioner Ford left the meeting) WASHINGTON COUNTY RETIREMENT BOARD PROPOSED 1998 BUDGET PERSONAL SERVICES: Wages - Regular FICA TOTAL PERSONAL SERVICES OTHER SERVICES: Telephone Postage Copying/Printing Contracted Services: Actuarial Investment Custodian Auditing Monitoring TOTAL OTHER SERVICES MATERIALS AND SUPPLIES Office Supplies TOTAL MATERIALS AND SUPPLIES TOTAL BUDGET - OPERATING ESTIMATED COUNTY APPROPRIATION TOTAL BUDGET REQUEST New Business To Be Noted For The Record - CETA Employee Purchases 240 18 100 1000 200 21,500 232,000 28,000 2,500 25,000 $ 258 310,300 500 500 311,058 70,000 381,058 The following active County employee who was originally hired under the Comprehensive Employment Training Act (CETA) program will purchase her service credit for the period of time that they were employed under the CETA program. 106 Helen Barantovich service time to be purchased: 3/25/75 to 12/31/79 $1,910.22 lump sum payment on 9/23/97 Investment Management - 3rd Quarter Report Presentation RRZ Frank Burnette began his presentation by discussing the stock market. He said that there was a positive move in the asset allocation portion of the fund. Mr. Burnette told the Retirement Board that Malcolm Imic had recently been hired by RRZ in the fixed income division. Mr. Burnette said that the County's investment performance in the fixed income area was not as strong for the 3rd quarter as the previous quarters, but told that the total year to date had exceeded benchmarks. Additionally Mr. Burnette discussed that the asset allocation is underweighted by 1.51%. A brief discussion followed pertaining to tobacco stock. Mrs. Irey noted that Washington County was one of the first counties to exclude tobacco stock from their portfolio. CS McKee Norm Allen discussed that the market value of the County's portfolio has increased this year. He further stated that CS McKee has met their objectives because of quarterly capital gains. Mr. Allen said that the County's retirement fund showed strong results in the third quarter and in the year to date amounts. Mr. Burns inquired as to why the benchmarks for RRZ and CS McKee varied. He proposed that a uniform benchmark be used between the money managers. He further stated that Yanni-Bilkey should take the lead to establish the benchmark. (It is currently 45%, 50%, 5%). Mr. Burns made a motion to adopt the current benchmark until information is received from Yanni-Bilkey to the contrary. Mrs. Irey seconded the motion. Roll call Mr. Belcastro, Mr. King, Mr. Burns, Mrs. Irey Motion carried unanimously Frank Domiesen discussed the third quarter performance of both CS McKee and RRZ. He said that the combined position of the portfolio is consistent with the acceptable range for equities. He also stated that RRZ underperformed in the large cap exposure for the quarter, but has been consistent in the fixed income performance. 1 107 Sold By IMR Limited Form 825 E417350 He said that the total fund in regards to equity allocations for both CS McKee and RRZ over the past three years has been above the benchmark. Mr. Domiesen then entertained questions from the Retirement Board. There being no further business, Chairman Irey declared the meeting adjourned at approximately 12:15 a.m. THE FOREGOING MINUTES SUBMITTED FOR APPROVAL: 1997 SECRETARY 11 1