HomeMy WebLinkAbout02-11-2003 Meeting
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JOINT FINANCE & PENSION COMMITTEE MEETING
TUESDAY, FEBRUARY 11, 2003
ROOM 802 MUNICIPAL BUILDING
3:00 P.M.
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AGENDA
I. Quarterly report.
a) pension plan performance
b) consider replacing fund manager
II. Presentation from Mr. Charlie Rothermel of Benmark. (10 min)
III. Status report on riverfront property.
IV. Selection of pension advisor.
I V. Report from Internal Auditor.
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JOINT FINANCE COMMITTEE &
PENSION COMMITTEE
COMNIISSION CHAMBERS -Feb. II, 2003
3:00 P. M.
PRESENT: Hons. Bob Young, Mayor; Colclough and Kolb, Pension Committee
members; Shepard, Finance Committee Chairman; Bridges and Williams, Finance
Committee members; Jim Wall, Attorney; Lena Bonner, Clerk of Commission.
ABSENT: Hon. Hankerson, Finance Committee Co-Chairman; Persaud, Finance
Director.
Also Present: Heidi Williams of The Augusta Chronicle and Hons. Kuhlke and
Beard, Commissioners.
2. Presentation from Mr. Charlie Rothermel of Benmark.
Mr. Rothermel reCOIlimended that Gartmore, Invesco and Strong be added as
additional options for the employees' investments in the 1998 Pension Plan.
Mr. Kolb: I'll so move.
Mr. Colclough: Second.
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Motion adopted unanimously.
1.
Quarterly report.
a) pension plan performance
b) consider replacing fund manager
Mr. Charlie May presented the quarterly report concerning the performance
for the 1949, 1945 and 1977 pension plans. He noted that part of their recommendation
would be to terminate Laurel Capital Advisors.
Mr. Shepard: I move that we terminate Laurel Capital Advisors as a pension fund
manager.
Mr. Colclough: Second.
Motion adopted unanimously.
At the time Mr. Ron Reich and Mr. Kenneth Revis of MDT Advisors and Mr.
Craig Steinberg of Atalanta Sosnoff made presentations.
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Mr. Shepard: I make a motion that we recommend to the full Commission that
the part of the portfolio that we just took away from the former manager be awarded
equally to these two managers and let's see what the future brings with these two in
charge of fifty percent each.
Mr. Kolb: I'll second it.
Mr. Colclough: I'll make a motion that we award the contract to Atalanta SosIloff
and let them manage the money.
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Motion dies for lack of a second.
Motion adopted with Mr. Colclough voting No.
3. Status report on riverfront property.
Mr. Wall: We went out for proposals for real estate brokers to market the
pension property on the riverfront. There were two proposals from Blanchard & Calhoun
and Graybill & Associates and the recommendation from the screening committee is that
both names be submitted to the Pension Committee and let them choose which one would
market the property.
Mr. Shepard: I put it in the form of a motion that the property be co-listed with
these two firms and recommend this to the Commission.
Mr. Kolb: I'll second it.
Motion adopted unanimously.
5.
Report from Internal Auditor.
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At this time Mr. J. T. Cosnahan made a report to the Committee on the audit
work.
Mr. Shepard: I move that we receive it as information.
Mr. Colclough: Second.
Motion adopted unanimously.
4. Selection of pension advisor.
The Clerk: The Joint Pension Committee received presentations from the
following fmancial consultant companies: Gray and Company, Salomon Smith Barney
and Scott and Stringfellow.
Mr. Stan Jackson appeared before the Committee representing the 1949
pensioners and requested on behalf of the pensioners that the firm of Salomon Smith
Barney be retained as the manager of the pension funds and that it be referred to the
Commission.
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Mr. Williams: I'm going to make a motion that we send this on to the full
Commission with no recommendation and let the full Commission vote on it.
Mr. Colclough: Second.
Mr. Shepard: My motion is that we put a full back up including the request from
Mr. Long, the work developed by the staff, the scoring that Mr. Williams was concerned
with and put that forward to back up the Commission's decision. My recommendation in
the form of a motion would be to retain Salomon, Smith Barney as the pension consultant
for the pension funds for the City of Augusta employees.
Mr. Bridges: Second it.
(Vote on substitute motion)
Mr. Bridges, Mr. Shepard and the Mayor vote Yes.
Mr. Williams, Mr. Colclough and Mr. Kolb vote No.
Motion ties 3-3.
(V ote on original motion)
Mr. Williams, Mr. Colclough, Mr. Kolb and the Mayor vote Yes.
Mr. Bridges and Mr. Shepard vote No.
Motion carries 4-2.
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ADJOURNMENT: There being no further business, the meeting was adjourned.
Lena J. Bonner
Clerk of Commission
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