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Home My WebLink AboutCOMM - Meeting Minutes - 263 - 2-16-2017 - RETIREMENTMINUTE RETIREMENT BOARD BOOK WASHINGTON COUNTY, PENNSYLANIA IMR LIMITFn FiRn7Q9QI n Minute No. 263 February 16, 2017 The Washington County Commissioners met in regular session in the Public Meeting Room, The quarterly meeting of the Washington County Retirement Board was held at approximately 11:05 a.m. on February 16, 2017 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 Marie Trossman, Solicitor Lynn DeHaven, Director of Administration Scott Fergus, Director of Finance Joshua Hatfield, Deputy Controller Cathy Sams, concerned citizen Frank Byrd, Barbara Miller representing the Observer -Reporter, Pat Cloonan representing the Herald Standard, Lee Martin, Ph.D. representing Peirce Park, and Gene Natah, Jr. representing C.S. McKee. Approval of Minutes Mr. Maggi entertained a motion to approve Minute No. 262 dated December 1, 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 November 2016, December 2016, and January 2017. 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 November 1, 2016 $ 208,671.46 Add: ACH Credit 748,740.31 Add: Other Credits 73,965.23 Less: Cancelled Checks (257,986.81) Less: ACH Debits (626.019.15) Bank Balance as of November 30, 2016 $ 147,371.04 Less: Outstanding Checks (121,933.73) Less: Retirement Check Run (25.437.31) Reconciled Balance as of November 30, 2016 $ Q Bank Balance as of December 1, 2016 $ 147,371.04 2 MINUTE RETIREMENT BOARD [MR I IMITFII Firn7Q9QI n Add: Deposits to Checking Account Add: ACH Credit Less: Cancelled Checks Less: Other Debits Less: ACH Debits Bank Balance as of December 31, 2016 Less: Outstanding Checks Less: Retirement Check Run Reconciled Balance as of December 31, 2016 Bank Balance as of January 1, 2017 Add: ACH Credit Add: Other Credits Less: Cancelled Checks BOOK WASHINGTON COUNTY, PENNSYLANIA 4,508.69 1,045,763.97 (185,948.61) (337,457.98) (607.763.72) $ 66,473.39 (44,310.52) (22.162.87) $ Q $ 66,473.39 297,061.52 555,248.36 (133,371.19) Less: ACH Debits (614.396.55) Bank Balance as of January 31, 2017 $ 171,015.53 Less: Outstanding Checks (124,039.73) Less: Retirement Check Run (46.975.80) Reconciled Balance as of January 31, 2017 $ A Requisitions Mr. Namie stated that requisitions for the months of December 2016 and January 2017 totaled $1,564,331.21. It was moved by Mr. Nan -tie 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 December 2016 Check Payee Amount 1308 Shawn Beckner $ 12,247.79 1309 Melissa Cathcart 6,564.94 1310 Andrea Harton 576.74 1311 Brandon Heinzelman 316.87 1312 Mickey Marshall 667.83 1313 Kelly Milliken 6,489.75 1314 Angelo Sanpietro 234.26 1315 Sherri Undereiner 1,130.64 1316 Maddie Ware 3,199.03 1317 Washington County Regular Payroll Escrow Account 15,114.56 1318 Washington County Regular Payroll Escrow Account 2,576.83 1 1 3 MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IMR I IMITFn FiR079x41 n 1319 Washington County Cash Disbursement Account 28,046.78 Transfer PNC Bank 50,386.28 Transfer Washington County Retirement Account 585.262.38 Total December 2016 Distributions $ 712,814.68 January 2017 Check Payee Amount 1320 John T Mruk $ 72.38 1321 Marsha Bailey 2,433.73 1322 Brianna Cuevas 908.71 1323 Tiffanni Downey 3,136.35 1324 Kimberly A. Haskey 11,607.23 1325 UM Bank NA as trustee of IRA of Mary Horr 55,901.15 1326 Jessica L. Ingram 950.07 1327 Ashton Molinaro 18,529.71 1328 Mary Plezia 13.35 1329 Neighborhood Attorneys FBO Jessica Roberts 10,296.95 1330 PNC Bank as trustee of IRA of Rachel Marie Roney 15,479.79 1331 1332 Stacie Taylor Tom Webster 9,071.67 782.09 1333 Washington County Regular Payroll Escrow Account 15,710.52 1334 Washington County Cash Disbursement Account 54,846.68 Transfer PNC Bank 55,328.64 Transfer Washington County Retirement Account 596.447.51 Total January 2017 Distributions $ 851,516.53 Old Business None. New Business Mr. Maggi noted for the record an agreement with Ronald Catrain to purchase part-time service credit dated from June 15, 2009 to July 27, 2014 in the amount of $2,569.69. Mr. Maggi noted for the record an active military duty retirement contribution on behalf of Robert Vaughan for the period June 29, 2015 to October 2, 2016 in the amount of $3,810.51. Mr. Maggi entertained a motion for the approval of a request from Cheryl Garrett to purchase unpaid leave of absence time dated from September 16, 2010 to October 3, 2010 in the amount of $270.35. 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. MINUTE RETIREMENT BOARD IMR I IM ITF:n Fi R( WPi n BOOK WASHINGTON COUNTY, PENNSYLANIA Mr. Maggi entertained a motion for the approval of a request from Clarissa Henry to purchase per diem service time dated from June 30, 2014 to December 11, 2014 in the amount of $2,521.16. 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 the 2017 Washington County Retirement Fund Budget. The motion to approve was made by Mr. Namie and seconded 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. Mr. Maggi entertained a motion for the purchase of Employee Benefit Statements from Korn Ferry Hay Group at a cost of $1.85 per statement for a total approximate cost of $2,001.70. The cost per statement remains unchanged from 2016. 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 contract addendum for the Peirce Park Asset Liability Study. The motion to approve was made by Mr. Namie and seconded by Mr. King. 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 with an overview of the market environment. For the first three quarters of 2016, GDP steadily increased. There was a slight slowdown in the 4`h quarter, primarily driven by the trade deficit. Unemployment fell to 4.7%, good news for the labor force. Globally, emerging markets are beginning to outpace developed markets in growth. For the period February 1, 2016 to January 31, 2017, markets in Russia were up 55% and Brazilian markets were up 99%. Looking at indices, U.S. equities were up 4.2% for the 4" quarter and 12.7% for the year. International equities were down 0.4%. The County's portfolio gained $1.5 million in the 4`h quarter and another $3.5 million to date in 2017 bringing the total fund value to $155 million. Total return for the year was 8.2%, 120 basis points above the assumed rate of return. Positive performance came from the global managers and private real estate. 5 MINUTE RETIREMENT BOARD IMR LIMITFn F1Rn7Q9Ql n BOOK WASHINGTON COUNTY, PENNSYLANIA Detractors were defensive equities and REITs. Over the last 7 years, the fund gained $66 million and averaged an 8.5% return. Highlighting some individual manager performance, outperformance came from Twin Capital, Emerald, Wellington, and Dodge & Cox. MFS underperformed for the quarter but was up for the year. C.S. McKee outperformed the benchmark by 30 basis points and Federated Investors was just about on benchmark. Mr. Martin presented the Board with portfolio options for adding timberland and farmland investments. After discussion among the Board, Mr. Maggi called for a motion to enter into an agreement with Hancock as the County's timberland and farmland investment manager and also to adopt the following portfolio mix: U.S. Equities 55% Fixed Income 27% International Equities 21 % Core Real Estate 5% Timberland/Farmland 3% REITs 0% Total 1 OD210 The motion to approve was made by Mrs. Vaughan and seconded by Mr. Shober. Roll call vote taken: Mr. Namie — yes; Mr. King — yes; Mr. Shober — yes; Mrs. Vaughan — yes; Mr. Maggi - yes. Motion passed unanimously. Mr. Martin concluded with a brief discussion on OPEB. The portfolio gained $100,000 in the 4`h quarter and another $350,000 to date in 2017. The total portfolio value is just over $11 million. C.S. McKee — Gene Natali. Jr. Mr. Natali briefly addressed the Board regarding fixed income and assured the Board that C.S. McKee will continue to strive for outperformance and provide high quality and good protection. The meeting was adjourned at 11:51 a.m. THE FOLLOWING MINUTES SUBMITTED FOR APPROVAL: 2017 41-, ATTEST: ;?� m MINUTE BOOK RETIREMENT BOARD WASHINGTON COUNTY, PENNSYLANIA IAR I IMITFII FlA07Q9QI n This page is blank. I