04/29/2002 (2)
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PENSION
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','::(TRUSTEES)
~,'.:' ~~uird of rrrustees of the E~ployees'
Pension' Fund'
Minutes
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. ACTION AGENDA
. . Board of Trustees of the Employees' Pension Fund
" April 29t 2002 - 9:00 a.m. .
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Calf to Order - 9:05 8.m.
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, · 2. " . Approyal of Minutes: 04/15/02 - Approved
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'. Authorize staff to conduct a search for a custodian for the Employee Pension'..
Fund, authorize Callan & Associates to assist with the search, authorize the .
cost of the search, including staff travel of approximately $3,500 and Callan's fee ,
of up to $301000 to be paid from the pension fund. - \App rove d, , ' .,
4. i , Res #02-10 authorizing the conversion of 24,700 shares of Metro-Go'ldwyn-
Mayer; Inc. common stock from physical form to DepositorY Trust Corporation
, eligible electronic form, approve the "Irrevocable Stock/Bond Power" form, -
Approved, " "
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5,' Adjourn - 9:10 a',m.
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TRUSTEES OF THE EMPlOYEESt PENSION FUND MEETING
CITY OF CLEARWATER
April 29, 200~
Present:
Brian J. Aungst
Whitney Gray
Frank Hibbard
,William C. Jonson
Chair.
Vice-Chair/Trustee
Trustee
Trustee
Absent:
Hoyt P. Hamilton
Trustee. .
Also Present:
William B. Horne JJ
Pamela K. Akin
.Steve Moskun
Cynthia E. Goudeau
Brenda Moses
City Manager
City Attorney
Cash & Investments Manager.
City Clerk
Board Reporter .
The Chair called the meeting to order at 9:05 a.m. at City Hall.
.To provide continuity for rosearch, items are in agenda order although not
necessarily discussed In that order. '
ITEM #2 - Approval" of Minutes 4/15/02
Trustee Jonson moved to approve the minutes of the April 15, 2002, meeting, as
recorded and submitted in written summation by the City Clerk to each Trustee. The
motion was duly seconded and carried unanimously.
ITEM #3 - Authorize Staff to conduct a search for a custodian for the Emplovee Pension
Fund, authorize Callan & Associates to assist with the search, authorize the cost of the'
search, including staff travel of approximately $3,500 and Callan's fee of up to $30,000
. to be paid from the pension fund
Cash and Investments Manager Steve Moskun said the Employee's Pension 'Fund
uses a third party custodian for the safekeeping of the various securities/assets of the
pension fund.
At December 31, 2001 the Employee's Pension Fund had assets of $441,921,590.
Currently, SunTrust is our custodian for $307,508,467 or 70% 01 those assets.
State Street is the custodian 10r$60,050,193 or 14%. The remaining balance is in the
form of mutual funds held in trust by the corresponding money manager. The plan has
used SunTrust since 1985 and State Street since 1993 as custodians
Over the past year two separate problems have occurred at our custodian that have
cause staff major concerns. ,In rosearching what is industry standards on one of those
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4/29/02
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problems staff consulted with four of the leading providers of custodian services. During
those discussions staff has learned that the pension plan can obtain superior services to
what. we are currently receiving. One of the services that staff would like is the ability to
have online access to the custodial records. Currently staff must wait for three weeks to
. receive a printout in the mail. Online access would be a significant benefit to staff.
The Investment Committee unanimously recommends the search for a new
custodian.
The City contracts with Callan & Associates to provide performance measurement
and to provide information on investment managers. Callan has extensive knowledge and
, experience with all of the custodians.
Callan~s fee for the search will be $25;000 plus travel expenses not to exceed
$5,000. Up until now Callan's fees are paid by directing investment trades through a
selected broker. Our money managers use this selected broker only if they cannot get
better execl1tiorl someplace else. The pension plan may have to supplement these
directed trades if n,ecessary with a cash payment.
The cost of committee member travels to investigate/research the top ~anked
custodian (s) is estimated at $3,500. The actual amount will be aHected by the location
of the custodian(s) and the number of custodian(s) that need to' be researched, Staff may
also use the trip to visit money managers if the money managers are located in a city staff
is already visiting.
The Investment Committee will come back to'the Trustees in late summer or early
fall with the results of the search for approva\.
In response to a question, Commissioner Hibbard said he felt this expense is
. reasonable and that it is time for some due diligence.
Trustee Gray moved to authorize staff to conduct a search for a custodian for the
Employees Pension Fund, authorize Callan & Associates to assist with the search,
authorize the cost of the search, inclUding staff travel of approximately $3,500 and
Callan's fee of up to $30,000,to be paid from the pension fund. The motion was duly
seconded and c'arrled unanimously.
ITEM #4 - Resolution #02-' 0 authorizing the conversion of 24,700 shares of Metro-
. Goldwyn-Maver, Inc. common stock from physical form to Depository Trust Corporation
eligible electronic form, approve the "Irrevocable Stock/Bond Power" form
Mr. Moskun said on May 23, 2000, Denver Investment Advisors participated in a
Stock Purchase Program for Metro-Goldwyn-Mayer, Inc. fo'r 24,700. The shares were
delivered in physical form to our'safekeeping custodian in the name of the City of
. Clearwater. These shares should have been delivered in a' Depository Trust Corporation'
electronic format.
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4/29/02
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To convert from physical form to electronic form the Trustees need to approve
Resolution 02-' 0 and the Irrevocable Stock/Bond po'-:Ver form. ,
Without exception, all of the other stock th'e pension plan owns is in Depository
, Trust Corporation electronic format.
o"enver' Investment Advisors cannot trade this security while it is in physical form in .
, the name of the City.
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Trustee Jonson moved to authorize the conversion of conversion of 24,700 shares
of Metro-GoldWyn-Mayer, Inc. common stock from physical form to Depository Trust
Corporation eligible electronic form, approve the "Irrevocable Stock/Bond Power" form,
The motion was duly seconded and carried'unanimously, . ,
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'. City Clerk Cyndie Goudeau read Resolution #02-' 0 and read it by title only.
Commissioner Gray m'oved to pass and adopt Resolution #02~ 10 and authorize the
appropriate officials to execute same. The motion was duly seconded and carried
unanimously; ',' .
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ITEM #5 - Adjourn
. The meeting adjo,urned at 9: 1 0 a.m.,
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