01/22/2002 (2)
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PENSION
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:;'(TRUSTEES).'
" ,Board' of Trustees of the: 'Employ~es'
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Pension Fund
'Minutes
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ACTION AGENDA
: , Board of Trustees of the Employees' Pension Fund
I 9:00 A.M.- Tuesday, ,January 22,2002, '
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Call to.Order ,9:19 a.m.
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2. , ': Approval of ~'Hnutes: 01/07/02 - A~proved as submitted
': 3. 'Terminate the contract with 3 Bridge Capital as a large cap Value equity manager. '
Approved' ' '
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. '4. ,: :, Approve ~n expenditure of not to exceed $5.000 (at $210 'per hour) to the'law firm of
, , ' Christiansen & Dehner for updating and modifying existing money management '
, ,contracts. Approved '
, 5. ' Other Business. .
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. 6; Adjourn' 9:24 a.m.
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TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
CITY OF CLEARWATER
January 22, 2002
Present:
Vice-Chair/Trustee
Trustee
Trustee
Trustee
Ed Hart
Whitney Gray
, Hoyt P. Hamilton
William C. Jonson
Absent: "
'Chair.
Brian J. Aungst
Also present:
William B. Horne II
Pamela K. Akin
Paul OIRourke
Cynthia E. Goudeau
Patricia O. Sullivan
City Manager
City Attorney
Human Resources Director
City Clerk
Board Reporter
The Chair called the meeting to order at 9: 19 a'.m. at City Hall.
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To provide continuity for rese'arch, items are in agenda order although not
necessarily discussed in that order.
ITEM #2 - Approval of Minutes:
A correction to the City Manager's title was noted.
Trustee Jonson moved to approve the minutes of the January 7, 2002, meeting, as
corrected. The motion was duly seconded and carried unanimously.
ITEM #3 - Terminate contract with 3 Brid~e Capital as a large cap value equity manager,
, For the year ending September 30, 2001, 3 Bridge has performance in the 99th
percentile with 98% of large capital value equity managers outperforming them. During
the last year, the Pension Investment Committee has been concerned about 3 Bridge
Ca'pital and has reduced the money they manage on three separate occasions. On
October'31, 20'01, 3 Bridge had $24,480,169 under management, down from
$85,23~,247 on October 31, 2000.
Earlier this year, the Trustees added large cap manager, Capital Guardian, with the
intention to terminate 3 Bridge Capital if they did not improve their performance. The
plan's financial advisors and Pension Investment Committee recommended termination of
, the contract with 3 Bridge Capital at this time. The contract with 3 Bridge Capital
requires the City to give 30 days written notice of termination, Staff recommends funds
from 3 Bridge Capital be divided between Ark Asset Management, deep discount large cap
value, and Capital Guardian, large cap relative value, such that after distribution Ark Asset
Management and Capital Guardian will have approximately the same amount of money
, under management. ,
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01/22/02."
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In response to a question, Cash and Investments M~nager Steve Moskun reviewed
the deliberate process followed when choosing or changing Pension Plan money
managers~
'. Trustee Gray moved to terminate the contract with 3 Bridge Capital as a large cap
value equity manager and that the appropriate officials be authorized to execute same.
The motton was duly seconded and carried unanimously.
ITEM #4 - Approve expenditure of not to exceed $5,000, at $210 per hour, to law firm
of Chtstiansen & Dehner for updatin~ and modifyin~ existin~ money mana~ement
contracts ,
,The Pension attorney should review the Employee's Pension Plan investment
contracts: 1) Money Managers: a) Aeltus Investment Manager; b) Ark Asset /Vlanagement;
c) Denver Investment Advisors; d) Invesr.o Global Asset Management: e) Putnam
Investments; f) EPW Investment Management; g) Sirach Capital Manager; and h)
Vanderbilt Capital Advisors; 2) Investment Advisory, Equity - EPW Investment
Management; 3) Performance Measurement - Callan Associates; and 4) Safekeeping: a)
Sun Trust and b) State Street.
While legal counsel has approved all of these contracts, some are more than 20 .
years old and need updating. Pension Attorney Lee Dehner believes he can update all of
these contracts for a fee of not to exceed $4,000. He would not review the 3 Bridge
Capital contact, which is being terminate, and Capital Guardian, which he already has
reviewed. The current $50,000 budget for legal services is sufficient to cover this
expenditure.
In response to a question, Mr. Moskun said changes are specific to each contract.
,Trustee Hamilton moved to approve an expenditure of not to exceed $5,000, at
$210 per hour, to the law firm of Christiansen & Dehn,er for updating and modifying
'. existing money managem~nt contracts, and that the appropriate officials be authorized t'o
, execute same. The motion was duly seconded and carried unanimously.
ITEM #5 - Other Business
Human Resources Director Paul O'Rourke expressed thanks, on behalf of his family,
for condolences they had received from the City.
ITEM #6 . Adjournment
The meeting adjourned at 9:24 a.m.
F.h~
C t ' Clerk ' , '
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01/22/02
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