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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. 1 1513 Sold By IMR Limited Form 825 C001022C4 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: r�--' f< 15 4 it 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) 1 1