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Home My WebLink AboutCOMM - Meeting Minutes - 262 - 12-1-2016 - RETIREMENT395 Sold By IMR Limited Form 825 E00102204 Minute No. 262 Washington County Retirement Board Washington, PA December 1, 2016 The quarterly meeting of the Washington County Retirement Board was held at approximately 10:30 a.m. on December 1, 2016 in the Public Meeting Room with the following members being present: Commissioners Larry Maggi, Harlan Shober, and Diana Irey Vaughan, Controller Michael Namie, and Treasurer Francis L. King. Also present: Administrative Assistant Joyce Thornburg, Chief Clerk Cindy Griffin, Executive Secretary Randi Marodi, Solicitor Lynn DeHaven, Director of Finance Roger Metcalfe, Director of Human Resources Kathleen Bali, concerned citizen Frank Byrd, Barbara Miller representing the Observer -Reporter, Pat Cloonan representing the Herald Standard, Lee Martin, Ph.D. representing Peirce Park, and David Rice and George Matta representing Fusion Capital. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 261 dated August -18, 2016. The motion was moved by Mrs. Vaughan and seconded by Mr. Shober that the above mentioned minutes be approved as written. 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. Public Comment None. Treasurer's Report Mr. King stated that the Retirement Allowance Account was reconciled to zero for the months of August, September, and October 2016. It was moved by Mr. King and seconded by Mr. Namie that the report 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. Retirement Allowance Report Bank Balance as of August 1, 2016 $ 104,182.25 Add: ACH Credit 733,093.68 Add: Other Credits 84,711.18 Less: Cancelled Checks (189,332.91) Less: ACH Debits (607,734.83) Bank Balance as of August 31, 2016 $ 124,919.37 Less: Outstanding Checks (92,860.93) Less: Retirement Check Run (32,058.44) Reconciled Balance as of August 31, 2016 $ -0- 319 6 Bank Balance as of September 1, 2016 Add: ACH Credit Add: Other Credits Less: Cancelled Checks Less: ACH Debits Bank Balance as of September 30, 2016 Add: Transfers to Bank Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of September 30, 2016 $ 124,919.37 737,198.09 105,696.11 (167,008.49) (592,848.08) $ 207,957.00 41.45 (169,030.71) (38,967.74) $ -0- Bank Balance as of October 1, 2016 $ 207,957.00 Add: ACH Credit 736,342.87 Add: Other Credits 158,259.05 Less: Cancelled Checks (282,319.77) Less: ACH Debits (611,567.69) Bank Balance as of October 31, 2016 $ 208,671.46 Less: Outstanding Checks (175,982.14) Less: Retirement Check Run (32,689.32) Reconciled Balance as of October 31, 2016 $ -0- Repuisitions Mr. Namie stated that requisitions for the months of August, September, October, and November 2016 totaled $3,362,232.01. 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. Distributions August 2016 Check Payee Amount 1254 Mary Lee Herilatt $ 11,484.84 1255 Stephen Keranko 11,484.841, 1256 Matthew Keranko 11,484.84 1259 Cory Bish 760.58 1260 NFS Advisors LLC as trustee of IRA of Alexandra 4,861.001 Boyer a 1261 Teresa Denman 151.27 f J 1 RVIVA Sold By IMR Limited Form 825 E00102204 1262 Brian V. Gorman 47,909.47 1263 Sarah Miller 1,336.47 1264 Vanguard Fiduciary Trust Co. as trustee of IRA of 10,039.50 Jacob Oresick 1265 Megan Riggs 5,022.48 1266 Washington County Cash Disbursement Account 62,154.47 1267 Transfer Washington County Regular Payroll Escrow Account PNC Bank 15,299.35 63,928.46 Transfer Washington County Retirement Account 571,887.29 Total August 2016 Distributions $ 817.804.86 September 2016 Check Payee Amount 1268 Rohail Abid $ 1,636.52 1269 Sierra Bulgarelli 314.05 1270 Matrix Trust Co. FBO Abby L. Greer 11,357.87 1271 Heather Harris 3,956.29 1272 Rawl Harris 10,386.22 1273 Foresters Financial Services as trustee of IRA of 18,143.00 Kristen Kalamaras 1274 Marie Kautz 634.34 1275 Lafayette Life Ins Co. FBO Kathleen Lonick 93,390.74 1276 PNC Bank as trustee of IRA of Amanda L. Manko 1,582.71 1277 Michelle Myers 13,596.98 1278 GBU Financial Life as trustee of IRA of Sara A. Sichi 14,761.01 1279 Washington County Regular Payroll Escrow Account 14,936.94 1280 Washington County Cash Disbursement Account 23,019.66 Transfer PNC Bank 48,889.60 Transfer Washington County Retirement Account 571,392.68 Total September 2016 Distributions $ 827.998.61 October 2016 Check Payee Amount 1281 William P. Jessop Jr. $ 351.86 1282 April Appleby 237.76 1283 Carrie L. Batarie 1,964.39 1284 Amy Fish 3,601.25 1285 Samantha Fonner 187.23 1286 PNC Investment as trustee of IRA of Deborah Geisler 94,668.78 1287 Diana Haggerty 10,896.38 1288 Kristy Kindleberger 4,979.35 1289 Leane Merrill 13,926.50 1 3198 1290 Mary O'Rourke 6,418.89 1291 Morgan Puskarich 241.21 1292 Sheearla Satterfield 13,181.12 1293 Richelle Sawyers 3,376.00 1294 Jennifer Wolfe 17,310.89 1295 Washington County Regular Payroll Escrow Account 15,417.02 1296 Washington County Cash Disbursement Account 64,002.10 Transfer PNC Bank 61,385.44 Transfer Washington County Retirement Account 582,414.40 Total October 2016 Distributions $ 894.560.57 November 2016 Check Payee Amount 1299 Douglas Foster Jr. $ 246.93 1300 Alycia Jones 119.91 1301 Mark A. Matual 101,493.92 1302 Santino Napolitano 732.02 1303 Joshua St. Cry 1,464.24 1304 Courtney Taylor 4,994.04 1305 Washington County Regular Payroll Escrow Account 15,328.82 1306 Washington County Cash Disbursement Account 48,727.11 Transfer PNC Bank 69,323.35 Transfer Washington County Retirement Account 579,437.63 Total November 2016 Distributions $ 821.867.97 Old Business None. New Business Mr. Maggi entertained a motion for the approval of a request from Dianna Shymchyk to purchase unpaid leave of absence time dated from November 8, 2012 to January 22, 2013 in the amount of $1,159.62. The motion to approve was made by Mrs. Vaughan and seconded by Mr. Shober. 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. Mr. Maggi entertained a motion for the approval of a request from Michael King to purchase per diem service time dated from January 3, 1995 to February 11, 1996 in the amount of $1,397.09. The motion to approve was made by Mrs. Vaughan and seconded by Mr. Shober. No discussion followed. Roll call vote taken: 1 u I�� 399 Sold By IMR Limited Form 825 E00102204 Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi - yes. Motion passed unanimously. Mr. Maggi entertained a motion for the approval of a request from Marsha Dykins to purchase unpaid leave of absence time dated from August 5, 1986 to September 8, 1986, May 7, 1988 to July 18, 1988, June 16, 1993 to July 12, 1993, May 2, 1994 to October 24, 1994, April 27, 1997 to August 11, 1997, February 15, 2002 to April 30, 2002, March 6, 2003 to March 24, 2003, September 16, 2004 to October 22, 2004, and June 20, 2005 to July 11, 2005 in the amount of $3,111.60. The motion to approve was made by Mrs. Vaughan and seconded by Mr. Namie. 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 highlights of the market environment. GDP came in higher than expected for the 3rd quarter, expanding about 2.9%, but driven by personal consumption for the second quarter in a row. The labor market was strong in the 3rd quarter with wage growth beginning in the 4th quarter. Globally, there is growth in the U.K. and Europe. International equities were up higher than U.S. equities for the quarter, 6.3% vs. 4.4%. Emerging market equities are up 16% for the year-to-date, a complete turnaround from 2014 and 2015. Lower quality fixed income was up as were Treasury Inflation Protected Securities (TIPS). Commodities, energy, and agricultural prices were down Tightly. Real Estate Investment Trusts (REITs) were down 1.2% for the quarter and down 7%-8% so far in the 4th quarter. Growth stocks, particularly technology, lid well for the quarter outperforming value by 4.5%. Defensive stocks that did well at the beginning of the year fell in the 3" quarter, and small cap outperformed urge cap, 9% vs. 3.8%. Turning to performance, the County's portfolio was up 3% in the 3rd 4uarter, a gain of $4.5 million. Over 7 years, the portfolio has gained $72.5 million with a net return of 8.8% and is in the top quartile of all public funds. Outperformance for the quarter came from Emerald, American Funds, Dodge & Cox, Vanguard Total International Index, and JP Morgan Strategic Property. Jnderperformance was seen from Twin Capital, Wellington, Acadian, Vanguard ?,EIT Index, and MFS. On the fixed income side, C.S. McKee was on benchmark For the quarter and Federated Investors slightly outperformed benchmark. Mr. Martin addressed the Board regarding the further diversification of the pension fund portfolio through a combination of timberland and farmland nvesting. Timberland investing is investment in the ownership and management �11 of forests. Returns are generated from the harvesting and selling of trees. Farmland investing is investment in the ownership and management of crops, land, and livestock. Returns are generated from the sale of crops and livestock and also from the changes in value of the crops, livestock, and land. The return patterns of both are vastly different than that of any other investment. Over the last 20 years, farmland has averaged a return of 12.7% and timberland a return of 7.6%. Timberland and farmland investments are usually long-term, but now there are vehicles that are open-ended. The benefits of farmland and timberland investing include attractive risk -adjusted returns, diversification, and the consistency, stability, and variety of returns. Risks include illiquidity, physical risks such as fire, drought, or disease, and leverage. Mr. Martin suggested that the Board bring in a few timberland and farmland managers for informational sessions before making a decision. At this time, Mr. King excused himself due to a prior commitment. Lastly, Mr. Martin discussed OPEB performance stating that the County gained $357,000 for the quarter, a 3.5% net return and right on benchmark. For the year to date, the return was 6.7% net, about 30 basis points above benchmark. Since inception, the fund has gained about $2 million with performance being in the top quartile net of fees. Of the 18 Pennsylvania counties with OPEB liability, Washington County is one of only three that is currently funding its OPEB. The meeting was adjourned at 11:32 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: l'LZ`�3R✓ 14 2017 ATTEST: 7 � 2 �� 1 iL 1