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Home My WebLink AboutCOMM - Meeting Minutes - 253 - 12-4-2014 - RETIREMENT341 Sold By IMR Limited Form 825 E00102204 Minute No. 253 Washington County Retirement Board Washington, PA December 4, 2014 The quarterly meeting of the Washington County Retirement Board was held at pproximately 10:33 a.m. on Thursday, December 4, 2014 in the Public Meeting Room lith the following members being present: Commissioners Larry Maggi, Harlan hober, and Diana Vaughan, Controller Michael Namie, and Treasurer Francis L. King. lso present: Chief Clerk Mary Helicke, Secretary Joyce Thornburg, Financial Analyst likene Farabee, Solicitor Lynn DeHaven, concerned citizen Frank Byrd, Barbara Miller r ,presenting the Observer -Reporter, Jim Jefferson representing WJPA, and Lee Martin, I'h.D. representing Peirce Park. �Pproval of Minutes Mr. Maggi entertained a motion to approve Minute No. 252 dated September 4, 014. The motion was moved by Mrs. Vaughan and seconded by Mr. Namie that the a Bove mentioned minutes be approved as written. No discussion followed. I .oll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi — yes. Motion passed unanimously. Public Comment None. 7 reasurer's Report Mr. King stated that for August, September, and October 2014, the bank balance vus reconciled to zero. It was moved by Mr. King and seconded by Mr. Shober that the report be approved. No discussion followed. I'..oll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi — yes. Motion passed unanimously. Retirement Allowance Report Bank Balance as of August 1, 2014 $185,602.56 Add: Deposits to Checking Account 39.85 Add: ACH Credits 882,953.63 Less: Cancelled Checks (280,087.56) Less: Other Debits (162,042.92) 3 4 2 Less: ACH Debits Bank Balance as of August 31, 2014 Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of August 31, 2014 Bank Balance as of September 1, 2014 Add: Deposits to Checking Account Add: ACH Credits Less: Cancelled Checks Less: Other Debits Less: ACH Debits Bank Balance as of September 30, 2014 Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of September 30, 2014 Bank Balance as of October 1, 2014 Add: Deposits to Checking Account Add: ACH Credit Less: Cancelled Checks Less: Other Debits Less: ACH Debits Bank Balance as of October 31, 2014 Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of October 31, 2014 (498,983.48) $127,482.08 (97,625.22) (29,856.86) m $127,482.08 7,899.30 762,863.58 (154,499.71) (195,828.43) (489A56.78) $58,460.04 (40,751.41) (17,708.63) $-0- $58,460.04 2,555.18 763,046.80 (148,130.20) (70,490.23) (499,845,52) $105,596.07 (84,635.98) (20,960.09) Requisitions Mr. Namie stated that requisitions for the months of September, October, and November 2014 totaled $1,874,599.16. It was moved by Mr. Namie and seconded by Mr. King that the requisitions be approved. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi — yes. Motion passed unanimously. 1 1 343 Sold By IMR Limited Form 825 F00102204 Distributions September 2014 Check Payee Amount 940 Ashlea Allen $523.26 941 Kirstie Bruno 156.72 942 Darae Bush 1,030.96 943 Tracey L. Frost 14,113.17 944 Jacob France 5,255.95 945 Matthew Reese 1,600.00 946 Vanguard as trustee of IRA of Matthew Reese 16,475.90 947 Patricia Reese 3,085.78 948 Washington County Regular Payroll Escrow Account 7,750.34 949 Washington County Cash Disbursement Account 14,595.02 'Transfer PNC Bank 37,005.49 Transfer Washington County Retirement Account 472,693.53 Total September 2014 Distributions $574.286.12 October 2014 Check Payee Amount 950 Washington County Disbursement Account $83,541.73 951 Terrance D. Wilkins 14,567.79 952 Darlene Campbell 195.06 953 Charles Schwab & Co. Inc. as trustee of IRA of Gina 33,896.85 Coppula Bell 954 Robert C. Spencer 77.38 955 Patricia A. Edwards 6,138.80 956 Makaylah Exume 2,047.18 957 Travis Green 296.44 958 Kayla Gilbert 708.68 959 George M. Kissell 765.93 960 Transamerica as trustee of IRA of Patrick C. Leary 1,542.93 961 Katie Leeper 7,643.82 962 Kristi Marhefka 2,192.88 963 Melissa D. Rohland 335.01 964 Gregory M. Thomas 11,333.35 965 Ronny Waters 2,512.42 966 Washington County Regular Payroll Escrow Account 7,355.48 Transfer PNC Bank 43,876.67 Transfer Washington County Retirement Account 476,063.35 Total October 2014 Distributions $695.091.75 i 3144 Check 967 968 969 970 971 972 973 974 Transfer Transfer Old Business None. November 2014 Payee Amount Estate of Lurrie Lynn Wilkins $18,210.78 Ashley M. Allen 607.55 Elizabeth Duff 217.85 Mary Johnson 9,520.56 Maryanne Macfarlene 18,612.52 Jennifer Roeper 1,590.27 Washington County Regular Payroll Escrow Account 7,575.03 Washington County Cash Disbursement Account 29,817.21 PNC Bank 40,796.42 Washington County Retirement Account 478,273.10 Total November 2014 Distributions S605.221.29 New Business Mr. Maggi noted for the record an agreement with David Garbutt to purchase service credit dated June 27, 1988 to July 29, 1988 and September 6, 1988 to June 19, 1989 in the amount of $885.57. Mr. Maggi entertained a motion for the approval of a request from Matthew Henderson to purchase per diem service time dated May 15, 1995 to April 14, 1996 in the amount of $1,625.33. The motion to approve was made by Mr. Namie and secondec by Mrs. Vaughan. No discussion followed. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi — yes. Motion passed unanimously. Presentations Peirce Park — Lee Martin, Ph.D. Mr. Martin began his presentation with an overview of the annual Pennsylvania Fund Report, stating that of the 44 reporting counties, Washington County was near the top in performance. Looking at performance over the trailing 5-year period, there is r only one county ahead of Washington County. Standardizing all the data from the reporting counties and using actual market value, Washington County's funding ratio is over 90%. 1 11 FI 345 Sold By IMP Limited Form 825 E00102204 Moving on to market environment, the slowdown that was expected to happen i i the U.S. has not occurred. Unemployment has continued to fall, consumer confidence and spending have increased, and gas and oil prices are down. Zuoinomically, other countries are still lagging behind the U.S. Looking at the indices, ty markets were flat in the U.S. and negative overseas. In fixed income, longer tl,rm bonds performed better than short-term and high yield. Overall, the County's performance in the third quarter was down a little over about right on benchmark. The year-to-date is still up about $6 million with a return of 4.5%. The fund ranks in the top quartile of all public funds. With the exception of C.S. McKee Value, every active manager has outperformed their index ince inception. Real estate has been a bonus this year, up 28% through November �014. Mr. Martin recommended to the Board that steps be taken to better manage volatility. Adding private core real estate to the County's portfolio can achieve this ),,dth the benefit of additional returns. Real estate is one of the largest investable areas ,.vailable and can be accessed indirectly through publicly traded securities such as h BITS, or directly, through private real estate funds. Private real estate is only valued once a quarter, so volatility is lower. There are three types of private real estate: core, alue-added, and opportunistic. Of the three, Mr. Martin recommended core as an c tion for the Board to consider. Core private real estate is the highest quality; the irestments are made in stable, well -maintained, blue chip properties in major metropolitan areas. Properties are only office, industrial, retail, and apartments, and must have at least a 90% occupancy rate. Because the return is primarily income - driven, the price point at entrance or exit is less important. Historically, returns are ,.pout 8%-9% and fees are about 1%. Mr. Martin advised the Board that a letter of intent must be submitted and that it c Auld take up to a year to enter a private core real estate investment fund. He recommended that the Board bring in at least two managers for presentations before a c ecision was made. The meeting was adjourned at 11:51 a.m THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2015 ATTEST: ;� t'.