07/16/1990 TRUSTEES OF THE EMPLOYEES' PENSION FUND MEETING
July 16, 1990
The City Commission, meeting as the Board of Trustees of the Employees Pension Fund, met in regular session at City Hall, Monday, July 16, 1990 at 9:06 A.M., with the following members
present:
Rita Garvey Chairperson
Lee Regulski Trustee
William Nunamaker Trustee
Richard Fitzgerald Trustee
Sue Berfield Trustee
Also Present were:
Ron H. Rabun City Manager
Milton A. Galbraith, Jr. City Attorney
Cynthia E. Goudeau City Clerk
ITEM #2 - Minutes:
Trustee Fitzgerald moved to approve the minutes of the June 4, 1990, meeting. The motion was duly seconded and carried unanimously.
ITEM #3 - Request for Acceptance into Membership:
The City Manager presented the recommendation of the Pension Advisory Committee to approve membership for the employee(s) listed below:
a) Arthur Vonderau
b) Donald Greene
c) Robert Blessing
d) Angela Hansen
Trustee Regulski moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #4 - Request for Pension:
The City Manager presented the recommendation of the Pension Advisory Committee that the employee(s) listed below be granted a regular pension under Section 26.34 and/or 26.37 of the
Employees' Pension Plan.
Jeanne M. Gates
Trustee Regulski moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
ITEM #5 - Other Business:
a) Appointment of Eickhoff, Pieper & Willoughby to serve as Equity Investment Advisor beginning 7/16/90 for an annual fee of $7,500.00 to Succeed First Union National
Bank
In 1984 and 1985, the Trustees approved two agreements with First Union, one to serve as Investment Manager for the fixed income portion of the pension fund assets, and a second to
serve as Equity Investment Advisor to assist in monitoring the performance of the two equity managers. Throughout this time, the individual at First Union responsible for both functions
was John P. Willoughby. Mr. Willoughby is now a part owner of Eickhoff, Pieper & Willoughby. Under the
proposed agreement, Mr. Willoughby would continue in his role as Investment Advisor with his new firm, and First Union would continue as Fixed Income Manager, with no overall increase
in fees.
Mr. Willoughby has been involved with the City's plan since 1978. It was Mr. Willoughby's recommendation that resulted in the liquidation of $10 million in equities in August of 1987,
two short months before the unprecedented market "crash" of October, 1987. This recommendation resulted in significant savings to the plan. Staff believes it is in the best interest
of the plan to keep Mr. Willoughby as an advisor.
In response to a question regarding the status of the funds that had been gained from the 1987 stock liquidation it was indicated those funds have been reinvested in stocks.
Trustee Fitzgerald moved to accept the recommendation of the Pension Advisory Committee. The motion was duly seconded and carried unanimously.
b) Investment Update on Pension Plan Assets
Regarding the activity of the pension plan for the quarter and the hear ending March 31, 1990, the pension plan assets total $129.6 million, an increase of $19.8 million over the preceding
year or a 22.4 percent gain.
Questions have been raised regarding the advisability of adding one or more additional investment managers. This would provide additional diversification which is probably warranted
for a plan of our current size. Mr. Deignan indicated he may be coming back to the Trustees regarding a recommendation on this issue.
Mr. Deignan indicated an estimate of cost for an additional manager is $36,000.00 in soft commissions. He indicated he would have to get back to the Trustees regarding current manager
costs.
The City Clerk requested direction from the Trustees regarding paying for the upcoming Pension Advisory Committee election. Direction was that the Pension Fund should pay these costs.
ITEM # 6 - Adjournment:
The meeting adjourned at 9:20 a.m.