HomeMy WebLinkAboutCOMM - Meeting Minutes - 216 SP - 10-20-2006 - RETIREMENT1511
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
sultant.
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.
1A;! presentation materials are available in the Office of the Controller for inspection.
IThe meeting was adjourned at 4:10 p.m.
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL:
'2006
ATTEST:
Minute No. 216 SP
Washington County Retirement Board
Washington, PA October 20, 2006
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.,?iand Diana
L. Irey; Treasurer Francis King; and Controller Michael Namie. Also present: Director 6f Finance
Roger Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy
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 DeBlandor.
Public Comment
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 WaWhington
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 actuarial
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.
of
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 Propj�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. In lregard 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 Partners' 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 alto
accomplished this return with less risk because the funds that they manage are tilted toljivard
value. While the additional 1.72% return is not guaranteed, if it had been, the County *tirement
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 tljree-year
County option to renew year to year thereafter.
Mr. Maggi seconded the motion.
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Ar. Burns asked for discussion on the motion. Mr. King stated that when he was
;lected Treasurer eleven years ago, the County pension fund was at $42 million and
)perating with two investment managers. A year later, the County hired Yanni Partners.
Vithin three years, the Fund had two additional investment managers, and within five
ears, the Fund was fully diversified and covered all facets of asset allocation. Mr. King
stated that because of Yanni Partners, the County now has a retirement fund totaling
almost $88 million. Although he does not agree with the change, he assured the Board
hat he is prepared and willing to work with the new consultants for the good of the fund.
I call vote taken:
es.
Mr. Namie — Yes; Mr. King — No; Mrs. Irey — Yes; Mr. Maggi — Yes; Mr. Burns —
n carried.
The meeting was adjourned at approximately 11:15 a.m.
THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL.:
ATTEST:
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15 4
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Minute No. 217
Washington County Retirement Board
Washington, PA November 2, 2006
The quarterly meeting of the Washington County Retirement Board was held at
approximately 11:00 a.m. on Thursday, November 2, 2006 in the Public Meeting Room
t
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; Director of Finance Roger
Metcalfe; Chief Clerk Mary Helicke; Secretary Joyce Thornburg; Audit Manager Kathy
Demarest; Solicitor Lynn DeHaven; Director of Human Resources Tim McCullough;
Observer -Reporter representative Barbara Miller; and interested citizen Harry
Sabatasse.
Approval of Minutes
Mr. Burns entertained a motion to approve Minute No. 214 dated August 17,
2006, Minute No. 215 SP dated August 25, 2006, and Minute No. 216 SP dated
October 19, 2006. Motion was moved by Mr. Maggi and seconded by Mrs. Irey that the
above mentioned minutes be approved as written.
No discussion followed. Those in favor signified by saying aye.
Motion carried unanimously.
Public Comment
None.
Treasurer's Report
Mr. King stated that from August 2006 through September 2006 the bank
balance was reconciled to zero. It was moved by Mr. Namie and seconded by Mrs. Irey
that the report be approved.
No discussion followed. Those in favor signified by saying aye.
Motion carried unanimously.
Retirement Allowance Report
Bank Balance as of August 1, 2006
Add: Deposits to Checking Account
Add: Transfers from Investment Accounts
Less: Cancelled Checks
Less: Transfers to Investment Account
Less: ACH Debits
Bank Balance as of August 31, 2006
Less: Investment Transfer
$97,312.85
500,752.90
343,575.99
(172,210.61)
(500,752.90)
($154,873.09)
$113,805.14
(1,041.47)
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