Fort Walton Beach Council agenda — 01-13-09 regular agenda — reading text

Director, as Plan Administrator for the General Employees Pension Plan, to move the America Euro Pacific Growth mutual fund held by Merrill Lynch to Salem Trust Company. 64 SPECIAL COUNCIL 12/ 02/ 08 MOVE OF MUTUAL FUND ( CONT) The Finance Director explained that in June of 2008 the City and Merrill Lynch terminated their consulting ' services' agreement and the City retained the Bogdahn Group as their financial advisor.. As well as, formerly providing these consulting services, Merrill Lynch currently acts as custodian for the American Euro Pacific Growth, one of the City's mutual funds, and these funds are subject to fees. In the past, as part of the consulting services agreement, these fees were refunded to the City, but with termination of the consulting agreement, the City no longer receives a refund of the fees. Therefore, Staff and the financial advisor are recommending that the mutual fund be transferred to Salem Trust, the current custodian of the other fund assets, and the City would not be subject to the fees, which are approximately $ 7, 500. 00 a year. The Mayor asked for public input. There was none. Mr. Minich moved to authorize the Finance Director, as Plan Administrator for the General Employees' Pension Plan, to move the American Euro Pacific Growth 'mutual fund held by Merrill Lynch to Salem Trust Company, the custodian for the other investments held by the Plan. Mr. Reeves seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). INVESTMENT POLICY REVISIONS Consideration of adoption of the' revised investment plan for the General Employees Pension Plan nand if adopted, authorize Staff to file a copy of the Plan with the Florida Department of Management Services. The Finance Director reported that under review of the City's existing investment policy, it was determined that although the policy is consistent with Florida Statutes and the Plan Document, some changes were necessary. These changes include the removal of unnecessary language to Section A, Current Policy; changing the investments in Collateralized Mortgage Obligations from 25% to 15% in Section 3, Fixed Income Securities; decreasing the Equity Portfolio from 5% to 3% in Section 3, Equity Securities; and decreasing the Fixed Income portfolio for 10% to 3% in Section 2, Fixed Income Securities. The Finance Director explained these changes will help limit the City's exposure to investment risk. The Finance- Director informed she will bring forward at the December 9, 2008 Council meeting an amendment to the plan document as an ordinance change to bring the plan document in line with the investment policy. The Mayor asked for public input. There was none. Mr.Minich moved to revise the investment policy for the General Employee' s Pension Plan as follows: the removal of unnecessary language to Section A. Current Policy; changing the investments in Collateralized Mortgage Obligations from 25% to 15 % in Section 3, ; Fixed Income Securities; decreasing the Equity Portfolio from 5% to 3% in Section 3, Equity Securities; and decreasing the Fixed Income portfolio for 10% to 3% in Section 2, Fixed Income Securities, and to file a copy of the revised plan with the Florida Department of Management Services. Mr. Reeves seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor ( Miller absent). RFP FOR NEW INVESTMENT MANAGER Consideration_of a request to waive the bidding process to authorize Staff to work with the Bogdahn Group to issue an RFP for investment management services for the General Employees Pension Plan, and endorse having the General Employees' Pension Advisory Committee review the short list of the candidates and bring the final recommendation to City Council for approval.  rW SPECIAL COUNCIL 12/ 02/ 08 RFP FOR NEW INVESTMENT MANAGER (CONT1 The Finance Director explained that Alliance Bernstein has acted as the Plan' s investment manager for the Value Portfolio since March of 2001, but recently Staff has expressed concerns regarding their performance and ability to adequately manage the pension portfolio. Mr. Bogdahn continued that Alliance Bernstein has been underperforming and that as financial advisor, he is recommending that the General Employees' Pension Plan begin the process to search for a new investment manager for the portfolio, and that the Bogdahn Group issue the RFP for the City and begin the search process. Mr. Bogdahn continued that they will review the initial responses and short list the candidates, and a committee made up of members of the Pension Advisory Committee will rank the short list and forward a recommendation to Council for final approval. The Mayor asked for public input. Mr. Bogdahn Zane Bell, City retiree, questioned whether the City's pension plan is in trouble. explained that the City has a defined benefit plan, whereby the City contributes to the fund to ensure it is financially sound, and the bottom line is that the City's pension fund is financially sound. There was no other public input. Council questioned whether the ordinance or policies should be changed if the bidding process will be waived on a continuing basis. The City Manager responded that the changing of the investment manager is reviewed periodically and that the City waives the bidding process only under certain circumstances and not on a regular basis; therefore, the policies do not need to be changed. Mr. Reeves moved to waive the bidding process to authorize Staff to work with the Bogdahn Group to issue an RFP for investment management services for the General Employees Pension Plan, and endorse having the General Employees' Pension Advisory Committee review the short list of the candidates and bring the final recommendation to City Council for approval. Mr. Minich seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). ADJOURNMENT As there was no further business, the meeting adjourned at 6: 12 pm. APPROVED: MAYOR: ATTEST: CITY CLERK Ive  N MINUTES OF THE REGULAR COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA DECEMBER 9, 2008 INTRODUCTION A regular meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, December 9, 2008, at 6: 00 p.m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Dennis Reeves, Bill Garvie, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich Absent: Virgil Miller Also Present: Joyce Shanahan, City Manager; Helen Spencer, City Clerk; Brandy Wunker, Finance Director; Toni Craig, City Attorney; Department Directors and Media. CALL TO ORDER The Mayor called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, then state his or her name and address for the record. INVOCATION /PLEDGE Councilman Hartwell gave the invocation and the Mayor led in the Pledge of Allegiance. STUDENT ACE AWARDS The Mayor presented a Student Ace Award to Thomas C. Fitzgerald of Choctawhatchee High School. APPROVAL OF AGENDA The Mayor advised that agenda item # 15 on . the presentation by the CRA and Chamber of Commerce regarding downtown vagrant issues has been withdrawn and requested that agenda item 6 on the RFP for Burial Services be removed from the Consent Agenda and moved to the Regular Agenda. Mr. Minich moved to approve the agenda as changed with the removal of Item #15 CRA and Chamber of Commerce presentation from the Regular Agenda and the removal of Item # 6 RFP on Burial Services from the Consent Agenda and moved to the Regular Agenda. Mr. Holmes seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent). CONSENT AGENDA Mr. Reeves moved to approve the Consent Agenda with the removal of the RFP on Burial Services from the Consent Agenda and moved to the Regular Agenda. Mr. Hartwell seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Pullen, Hartwell, and Minich in favor (Miller absent).  Regular Council 12 -9 -08 68 MINUTES Approval of the minutes of the Special Council Meeting of November 12, 2008, and the Regular Council Meeting of November 18, 2008. SIDE LOADER REFUSE TRUCK BID Award Bid 09 -101, Purchase of one side loader refuse truck, to the low, responsive, responsible bidder meeting bid specifications, Peterbilt of Montgomery, LLC, Montgomery, AL for the bid amount of $199, 834. ANNUAL HERBICIDE AND PESTICIDE BID Award Bid 09 -103, Annual Pesticide Bid to the lowest responsive, responsible bidders for the purchase of herbicide and pesticide on an as needed basis for the budgeted amount of $218, 545 to control the growth of undesirable plants, the spread of plant disease, and the proliferation of harmful insects in the maintenance of the City' s Golf Club fairways, greens, tees, and rough; the parks sports fields, sewer spray fields, and plant beds; and for the annual mole cricket injection treatment for the Golf Club and city sports fields. MEDICAL INSURANCE Waive section 4.01. 025 of the Purchasing Policies and Procedures and authorize staff to obtain informational quotes from local providers for the City' s Medical Insurance program. RES. 08 -54: ACCEPT FUNDING THROUGH FEMA FOR FIRE DEPARTMENT A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ACCEPTING FUNDING THROUGH THE FEDERAL EMERGENCY MANAGEMENT AGENCY FOR EQUIPMENT, PERSONAL PROTECTIVE EQUIPMENT, AND TRAINING; AUTHORIZING THE MAYOR TO EXECUTE GRANT DOCUMENTS; AUTHORIZING THE FIRE CHIEF TO OVERSEE THE PROJECT; AUTHORIZING A BUDGET AMENDMENT; AND SETTING AN EFFECTIVE DATE. RES. 08 -56: FUNDING THROUGH DEP FOR WATER REUSE SYSTEM A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, ACCEPTING FUNDING THROUGH THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION FOR THE GOLF CLUB WATER REUSE SYSTEM; AUTHORIZING THE CITY MANAGER TO EXECUTE THE GRANT ASSISTANCE AGREEMENT; AUTHORIZING THE UTILITY SERVICES DEPARTMENT TO OVERSEE THE PROJECT; AUTHORIZING A BUDGET AMENDMENT; AND SETTING AN EFFECTIVE DATE. SETTMENT IN CITY V. B &H EARTH MOVING CONTRACTORS Approval of a settlement regarding City of Fort Walton Beach v. B &H Earth Moving Contractors, Inc. et al, in the amount of $52, 500. RES. 08 -57: 08/ 09 BUDGET AMENDMENT A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, AMENDING THE FISCAL YEAR OCTOBER 1, 2008 THROUGH SEPTEMBER 30, 2009 BUDGET TO MAKE CERTAIN AMENDMENTS TO DESIGNATED APPROPRIATIONS OF CITY FUNDS