1997-05-28 Police Fund MeetingCITY OF OKEECHOBEE
POLICE PENSION FUND MEETING
MAY 28, 1997
TRUSTEE'S PRESENT: LARRY COONFARE, JOHN P. ZEIGLER, STEVE
PADGET, STEVE NELSON.
OTHERS PRESENT: ERNST MAHLERMIIITORI F SMITH BARNEY,
J.C. CAMPUZANO OF INVESCO, MONEY MANAGERS
SCOTT CHRISTIANSEN OF CHRISTIANSEN,DEHNER,
P.A., LEGAL COUNSEL
MEETING IS COMBINED WITH POLICE, FIRE, & GENERAL EMPLOYEES
BOARDS PRESENT.
EACH TRUSTEE PRESENT WAS GIVEN A COPY OF THE QUARTERLY
REPORT FROM INVESCO AND FROM SMITH BARNEY. TRUSTEES WERE
ADVISED BY J.C. CAMPUZANO THAT INVESCO HAS ADDED AN
ADDITIONAL PORTFOLIO MANAGER, BOB WALLACE. ERNST MAHLER
III OF SMITH BARNEY REVIEWED THE QUARTERLY REPORT AND
INFORMED THE TRUSTEES THAT THE FUND WAS DOING FINE.
SCOTT CHRISTIANSEN, LEGAL COUNSEL, INFORMED THE TRUSTEES
OF PENDING LITIGATION IN TALLAHASSEE WHICH MAY HAVE A
POSITIVE IMPACT FOR THE COMBINED FUNDS. THIS LITIGATION IS
IN THE FORM OF A CLASS ACTION SUIT INVOLVING IMPROPER
MANIPULATION OF FUNDS ON THE NASDAQ STOCK MARKET DURING
THE PERIOD OF 1988-1994. THE INFORMATION CONCERNING THE
CLASS ACTION SUIT WAS RECEIVED FROM THE STATE OF FLORIDA
ATTORNEY GENERAL'S OFFICE, WHICH INFORMATION INDICATED
THAT THE SUIT WAS DIRECTED AGAINST AT LEAST 35 DIFFERENT
BROKERS. SCOTT CHRISTIANSEN ADVISED THAT EACH TRUSTEE
BOARD CONSIDER FORMING A MOTION INSTRUCTING THE MONEY
MANAGER TO PROVIDE RECORDS FOR THE PERIOD OF 1988-1994 TO
LEGAL COUNSEL SO COUNSEL COULD REVIEW SUCH RECORDS TO SEE
IF ANY POLICE PENSION FUNDS WERE CONNECTED WITH THE
BROKERS NAMED IN THE SUIT. SCOTT CHRISTIANSEN CONCLUDED
WITH A BRIEF DISCUSSION ON THE ISSUE OF ETHICS.
TRUSTEE STEVE NELSON ARRIVES AT MEETING AT 8:18PM.
MOTION BY STEVE PADGET TO HAVE TRUSTEE BOARD INSTRUCT THE
MONEY MANAGERS TO PROVIDE NECESSARY INFORMATION,IF
AVAILABLE, TO LEGAL COUNSEL CONCERNING INFORMATION
RELATIVE TO THE PERIOD OF 1990-1994 IN CONNECTION WITH
THIS MATTER. MOTION WAS SECONDED BY JOHN P. ZEIGLER.
MOTION WAS UNANIMOUSLY CARRIED.
MOTION BY JOHN P. ZEIGLER TO AUTHORIZE LEGAL COUNSEL TO
SEND OUT REQUESTS FOR PROPOSALS IN SEARCH OF A NEW
CUSTODIAN FOR THE FUND. SECONDED BY STEVE PADGETT.
MOTION'CARRIED UNANIMOUSLY.
MOTION BY STEVE PADGETT TO APPROVE THE MINUTES OF THE
MARCH 25, 1997 MEETING. SECONDED BY JOHN P. ZEIGLER.
MOTION WAS UNANIMOUSLY CARRIED.
CITY OF OKEECHOBEE
POLICE PENSION FUND MEETING
MAY 28, 1997
MOTION BY STEVE NELSON TO APPROVE THE FOLLOWING
EXPENDITURES: $361.08 TO CHRISTIANSEN & DEHNER, $421.85 TO
DIBARTOLOMEO, MCBEE & SLOAN, $4,357.27 TO INVESCO.
$1,665.68 TO JANICE LEVIN, BENEFICIARY OF ALAN LEVIN.
SECONDED BY STEVE PADGETT. MOTION CARRIED UNANIMOUSLY.
LARRY COONFARE INFORMS THE TRUSTEES THAT THE 1996 ANNUAL
REPORT FOR THE OKEECHOBEE POLICE PENSION FUND WAS APPROVED
BY THE STATE OF FLORIDA DIVISION OF RETIREMENT.
MOTION BY STEVE PADGETT TO REMOVE FROM THE TABLE THE
DISCUSSION OF THE C.O.L.A. IMPLEMENTATION. SECONDED BY
JOHN P. ZEIGLER. MOTION WAS CARRIED UNANIMOUSLY AND
DISUSSION RESUMED.
STEVE PADGETT ASKED LEGAL COUNSEL WHAT LIABILITY DO THE
TRUSTEES INCUR IF THE FUND CANNOT SUSTAIN A 1.5% C.O.L.A.
ONCE IT IS IMPLEMENTED? SCOTT CHRISTIANSEN INFORMED THE
TRUSTEES THAT NO LIABILITY IS INCURRED BY THE TRUSTEES AE
THE CITY COUNCIL IS THE ONLY BODY WHO CAN ACTUALLY
IMPLEMENT THE C.O.L.A. THE TRUSTEE BOARD ONLY RECOMMENDS
THE C.O.L.A. TO THE CITY COUNCIL.
MOTION BY JOHN P. ZEIGLER TO DIRECT LEGAL COUNSEL TO
PREPARE AN ORDINANCE AND PRESENT IT TO THE CITY COUNCIL
,t„ RECOMMENDING THE IMPLEMENTATION OF A 1.5% C.O.L.A. WITH AN
EFFECTIVE DATE OF OCTOBER 1, 1997. THE PROVISIONS OF SUCH
ORDINANCE ARE TO BE RETROACTIVE IN NATURE TO INCLUDE ALL
"REGULAR RETIREES" AND "IN -LINE -OF -DUTY ONLY" DISABILITY
INCOME RECIPIENTS(OFF-DUTY DISABILITY INCOME RECIPIENTS
EXCEPTED). SECONDED BY STEVE NELSON. LARRY COONFARE
REFRAINED FROM VOTING ON THE MOTION. JOHN P. ZEIGLER VOTED
IN FAVOR OF THE MOTION. STEVE PADGETT VOTED IN FAVOR OF
THE MOTION. STEVE NELSON VOTED IN FAVOR OF THE MOTION.
MOTION WAS CARRIED BY THREE VOTES.
SCOTT CHRISTIANSEN INFORMED TRUSTEES OF LEGISLATION IN
TALLAHASSEE WHICH, IF PASSED INTO LAW, WOULD EASE THE
CURRENT INVESTMENT RESTRICTIONS OF PENSION FUNDS
ESTABLISHED BY THE STATE, THUS ALLOWING THE INVESTMENT OF
PENSION FUNDS IN OTHER BROADER AREAS THAN THOSE PREVIOUSLY
ALLOWED. HE ADVISED THAT THE LEGISLATION WHICH WAS BEING
CONSIDERED DID NOT PASS INTO LAW AT THIS RECENT
LEGISLATIVE SESSION BUT IS EXPECTED TO BE REINTRODUCED AND
PASSED AT A LATER TIME, POSSIBLY AT THE NEXT LEGISLATIVE
SESSION. SCOTT CHRISTIANSEN ADVISED THAT EACH TRUSTEE
BOARD CONSIDER FORMING A MOTION AUTHORIZING LEGAL COUNSEL
TO PREPARE AN ORDINANCE CHANGE, IN ANTICIPATION OF THE
CHANGE IN LAW AT THE STATE LEVEL, WHICH COULD BE PRESENTED
TO CITY COUNCIL AT THE SAME TIME AS THE PRESENTATION FOR
THE PROPOSED C.O.L.A. IMPLEMENTATION. SCOTT CHRISTIANSEN
INFORMED TRUSTEES THAT A CHANGE IN THE ORDINANCE ITSELF
x
i CITY OF OKEECHOBEE
POLICE PENSION FUND MEETING
MAY 28, 1997
WOULD NOT AUTOMATICALLY PERMIT THE ALTERING OF THE PRESENT
INVESTMENT POLICY ESTABLISHED BY THE TRUSTEE BOARD, ONLY
THAT A CHANGE IN THE ORDINANCE AT THIS TIME WOULD SPEED UP
THE PROCESS BY WHICH THE TRUSTEE BOARD COULD ACT SHOULD
SUCH LEGISLATION EVENTUALLY BECOME LAW. HE ADVISED THAT IF
THE LEGISLATION WAS ENACTED INTO LAW, AND IF THE ORDINANCE
WAS ALREADY CHANGED, THEN THE ONLY ACTION NEEDED BY THE
TRUSTEE BOARD WOULD BE TO MAKE NECESSARY CHANGES TO THE
INVESTMENT POLICY ITSELF, IF"DESIRED.
MOTION BY STEVE NELSON TO DIRECT LEGAL COUNSEL TO PREPARE
SUCH AN ORDINANCE CHANGE TO BE PRESENTED TO CITY COUNCIL
AT THE SAME TIME AS THE PROPOSED ORDINANCE FOR THE
C.O.L.A. IMPLEMENTATION. SECONDED BY LARRY COONFARE.
BRIEF DISCUSSION ON THE MOTION BY EVERYONE PRESENT.
MOTION PLACED TO A VOTE. STEVE PADGET VOTED AGAINST THE
MOTION, JOHN P. ZEIGLER VOTED AGAINST THE MOTION. STEVE
NELSON VOTED IN FAVOR OF THE MOTION. LARRY COONFARE VOTED
IN FAVOR OF THE MOTION. MOTION DID NOT PASS DUE TO A TIE
VOTE.
MOTION BY STEVE NELSON TO ADJOURN THE MEETING. SECONDED BY
STEVE PADGETT. MOTION WAS UNANIMOUSLY CARRIED.
MEETING ADJOURNED AT 9:18PM.
POLICE FUND CHAIRMAN
POLICE FUND SECRETARY
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