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Minute No. 215 SP
Washington County Retirement Board
Washington, PA August 25, 2006
The special meeting of the Washington County Retirement Board was held at
approximately 10:00 a.m. on Friday, August 25, 2006 in Room 704, Courthouse Square,
with the following members being present: Commissioners Larry Maggi, J. Bracken
Burns, Sr., and Diana L. Irey; Treasurer Francis King; and Controller Michael Namie.
Also present: Director of Administration Scott Fergus and Director of Finance Roger
Metcalfe.
The purpose of this special meeting was to hear presentations for an investment
consultant.
Presentations were given by the following:
Peirce Park Group — Mr. Michael Shone.
Morrison Fiduciary Advisors — Mr. Frank Burnette, Mr. Robert Bulas.
PFM Advisors — Mr. John Spagnola.
Yanni Partners - Ms. Theresa Scotti, Mr. James Gnecco, Mr. Frank Domeisen.
! presentation materials are available in the Office of the Controller for inspection.
meeting was adjourned at 4:10 p.m.
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
, 2006
ATTEST:
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Minute No. 216 SP
Washington County Retirement
Washington, PA October 20,
The special meeting of the Washington County Retirement Board was held at
approximately 11:04 a.m. on Thursday, October 19, 2006 in the Public Meeting Room 'With the
following members being present: Commissioners Larry Maggi, J. Bracken Burns, Sr.,jand Diana
L. Irey; Treasurer Francis King; and Controller Michael Namie. Also present: Director Of Finance
Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager i athy
Demarest; Solicitor Lynn DeHaven; Observer -Reporter representative Barbara Miller; Attorney
Mary Lyn Drewitz; Human Resources Director Tim McCullough; Ringgold High School student
Cory Young; and interested citizens Carl Maggi, Harry Sabatasse, and Robert DeBlanjl r.
Public Comment s'
Mr. Jim Gnecco of Yanni Partners expressed his disappointment in the Board's Oxpected
decision not to retain Yanni Partners as the County's Investment Consultant for the Wad hington
County Retirement Fund. He reminded the Board that not only did Yanni Partners havo more
staff than its competitor, but also that Yanni Partners' performance exceeded the actuaial
assumption for the past ten years and generated a 10% return over the last three year$ He also
stated that the competitor's fees were nearly triple than those charged by Yanni Partners.
Pt
New Business
Mr. Burns asked for a motion regarding the matter at hand
Mr. Namie stated that he would like to respond to Mr. Gnecco's comments. He explained that in
accordance with common business practice, the County submitted a Request For Propt sal for
investment consultants. Of the 11 respondents, the Board, along with the Director of
Administration and Director of Finance, narrowed the field to four to be interviewed. Inregard to
fees, the firm that they are recommending charges $50,000.00 in fees compared to Yanni
Partners' fees of $21,000.00. However, the $50,000.00 is an all-inclusive fee; Yanni P�rtners' fee
is not. Additionally, over the last 5 years, Washington County has averaged a 4.95% return on
their investment. Mr. Namie stated that the firm he is recommending to be hired has 7 bounties
across the State and has averaged a 6.67% return over the last 5 years. They have aloo
accomplished this return with less risk because the funds that they manage are tilted toward
value. While the additional 1.72% return is not guaranteed, if it had been, the County Retirement
Fund balance would be $7.5 million higher, thus substantially reducing the contribution that
County would have to make to the fund.
Mr. Namie made a motion to employ Peirce Park Group for a period of 3 years with a t4 ee-year
County option to renew year to year thereafter.
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Mr. Maggi seconded the motion.
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