Fort Walton Beach Council agenda — 10-26-2010 Regular — reading text

the more than 545,000 active members of the Association, but all working women. NOW, THEREFORE, I, Mike Anderson, by virtue of the authority vested in me as Mayor of the City of Fort Walton Beach, do hereby proclaim September 22, 2010 as AMERICAN BUSINESS WOMEN' S DAY and urge all our citizens to salute the 57 million American businesswomen for their contributions to the private and public sectors of this country. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Fort Walton Beach to be affixed this 26th day of October 2010. ANDERSON, MAYOR 5 Y q  CITY COUNCIL MEETING October 26, 2010 Recognition ACE Award James Hayes, Fort Walton Beach High School Agenda Item Number: 5. 1  ClCl OO NN CC NN ii dd OO vv OO dd aa DD ss aa asas mm oo o NN aa ii dd 33 ii O QQ WW 0 O N 0 d s V N mc N Of N a S a 4A _= s c u ss a O y= o y 3 O LLI 3 Cmd li s O L V V  CITY COUNCIL MEETING October 26, 2010 Recognition ACE Award Joshua Paul Keeman Choctawhatchee High School Agenda Item Number: 5. 2  00 00 NN 00 NN LL dd OO VV OO dd tt aa 00 ss vv aa asas mm oo O NN aa aa O WW O G c V N • as 0O t a V 41.. N 40- o a y- u. N a O CA a O H i s a. . V C •_ 0 N d s _ ` ON i d V Cl. O y.. W 0 d O •_ li a s V u o Elm s V v O  CITY COUNCIL MEETING October 26, 2010 Presentation Presentation of Quarterly Reports for the General Employees; Pension Fund Synopsis: Joe Bogdahn, from the Bogdahn Group will update Council on pension status. Staff will askfor Council approval ofBogdahn recommendations Agenda Item Number: 6. 1  City ofFort Walton Beach Memorandum To: Bob Mearns, City Manager From: Brandy Wunker, Finance Director Subject: General Employees' Pension Plan Date: October 14. 2010 1. BACKGROUND: 1. 1. At the previous quarterly pension meeting, the City Council discussed several items that they desired to obtain recommendations on by the General Employees' Pension Plan Financial Advisor, Joe Bogdahn, who will be present at the October 26, 2010 City Council meeting. 1. 2. Those topics are briefly discussed below, and Mr. Bogdahn' s recommendations are also listed for the Council' s discussion and action. 2. DISCUSSION: 2. 1. Aletheia — Investment Manager — The Bogdahn Group has been closely monitoring the performance of this Manager for several cycles. Aletheia has brought unintentional volatility to the Plan. 2. 1. 1. Recommendation: Issue a competitive solicitation to move a portion of the assets managed by Aletheia to a less volatile Manager. A portion of the assets will remain with Aletheia, which will enable the Plan to capture the " up" side of Aletheia' s cycle, as the Plan has already captured the " down" side. 2. 1. 2. The City' s normal purchasing policies for competitive solicitation are requested to be waived in order to allow Mr. Bogdahn to review and recommend firms. 2. 1. 3. Once recommended, the firms will be interviewed and ranked by the General Employees' Pension Plan Advisory Committee. 2. 2. Actuarial Assumptions —the City has used the services of Actuarial Concepts since 1989 for the preparation of the Actuarial Report. 2. 2. 1. Recommendation: Issue an RFP for Actuarial Services, to include an evaluation of the current actuarial assumptions and cash flow' s affecting the Plan. 2. 2. 2. The City' s purchasing policies will apply and the evaluation committee will consist of the General Employees' Pension Plan Advisory Committee. 2. 3. General Employees' Pension Plan Advisory Committee — the current role of this committee, outside of special evaluation committee assignments, is limited to the approval of retirement applications and review of disability retiree information.  2. 4. The current Plan Document allows for the committee to perform " other functions and duties as directed by the Board of Trustees" ( City Council). 2. 4. 1. Recommendation: Task the Advisory Committee with a more active role in the administration and monitoring of the Plan to assist the Board of Trustees. Some additional items that could be performed by the Committee are quarterly meetings with the actuary, investment managers, and pension attorney, and the evaluation of cash flow needs. 2. 4. 2. If recommended by City Council, the Advisory Committee will meet with Joe Bogdahn to develop the additional tasks and present the items to the Board of Trustees at a later date. 3. FINANCIAL INFORMATION 3. 1. There is currently no financial impact to these recommendations. 4. RECOMMENDATION 4. 1. Staff respectfully requests City Council approve: 4. 1. 1.Utilizing the Bogdahn Group to assist the City with selecting an additional Investment Manager to receive a portion of Aletheia' s assets and waiving the City' s purchasing policies for this solicitation. 4. 1. 2. Issue an RFP for Actuarial Services. 4. 1. 3. Endorse exploring additional roles for the Advisory Committee. 5. SIGNATURE BLOCK it 5. 1. Submitted by: 10/ 14/ 10 Brand ker, Finance Director Date 5. 2. Reviewed for agenda: 10/ 19/ 10 bert T. Mearns, City Manager Date Docid: U: 1Agenda12010\20101026\ 1 a Pres, Proc, ACE1Staff Report—Pension Issues.doc  City of Fort Walton Beach MEMORANDUM Date: October 15, 2010 To: Robert Mearns, City Manager From: Brandy Wunker, Finance Director Subject: General Employees Pension Plan —Quarterly Report 1. BACKGROUND: 1. 1 The