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HomeMy WebLinkAbout2012-03-15-RB-minMinutes of the March 15, 2012 Retirement Meeting Present: Robert Cunha, Rob Addelson, roe Foley, Alan Fields, Michael McNabb, Marguerite Oliva Bob Cunha called the meeting to order at 8:00 AM Attorney Michael Sacco was asked to be present by the Board to give legal counsel and direction regarding Laura Creedon, Charles Shannon and Financial Reporting. Another subpoena from Ms. Creedon has been received to appear in court on 3128112. After some discussion it was agreed for Mike and Maggie to appear in court on 3128112 with the intent to first file a motion to quash this complaint and then ask the court to stop her from filing future complaints and subpoenas. If the court doesn't grant the Board's request, then Mike should be prepared to make the court and Ms. Creedon aware that the Board will have no other choice but to take legal action against Ms. Creedon. The State Retirement Board continues to bill us for 3(8)(c) reimbursement for Charles Shannon. After some discussion it was agreed to have Mike Sacco draft a letter to the State Retirement Board informing them we are not paying as we believe the award to be in contravention of the law. If the State Retirement Board members are aggrieved by the Board's decision not to pay, they have the right to file an appeal with DALA and if they don't, they waive their rights. The State Retirement Board will have 15 days after the receipt of the letter to file the appeal. There was a discussion regarding the filing of the Statement of Financial Interest. Alan Fields and Mike McNabb strongly opposed completing the form and would be forced to resign if they are required to complete it. Alan feels that as a citizen volunteer the Board should only be required to sign a conflict of interest statement and strongly feels that the overwhelming issue relates to threatening citizen volunteer government which is at the heart of a town meeting participatory form of government. Mike felt that give the level of dissatisfaction with proposed requirements across the participating towns that the deadline might be extended until a more reasonable policy is established. Rob expressed that he would hate to lose either board member as they bring knowledge and experience that is valuable to the board and they couldn't be replaced. Bob expressed how important the integrity of the board is, keeping it intact is paramount to its financial success. The consensus of the Board is that they already abide by ethics and conflict of interest laws and are upset about the invasion of privacy and over reach by PERAC by asking about outside income, other governmental employment and the amount owed, borrowed or interest rate of your mortgage, none of which is required to be disclosed pursuant to the statute. The Board has contacted the Town Manager, Selectmen, Representative Kaufman and Senator Donnelly to express their concerns. Attorney Mike Sacco informed the Board that he doesn't expect any substantive changes to the legislation itself and that each Board member must make their own decision with respect to the filing. If any of the Board members refuse to file the SFI, PERAC will ask that they be removed from the Retirement Board. Mike Sacco recommends filing the SFI without the information sought by PERAC which is not required by the statute. If PERAC seeks the member's removal, the member will have a right to appeal to CRAB, which automatically stays a board member's removal from the retirement board. The board took his counsel under advisement without a decision being made. LouAnn and Henry from Meketa were present for the Global Infrastructure Manager Search interviews and provided manager evaluations criteria for the Board. The three finalists are RARE, Duff & Phelps and Wellington Management. David Paredes was present and Nick Langley, via conference call, presented RARE's proposal for the Infrastructure Global Value Fund. Barry Cope and Connie Luecke presented Duff and Phelps' proposal for the Virtus Global Infrastructure Fund. Wellington representative Scott Brink and Akin Greville were present and Tom Levering and Beth Piskorowski, via conference call, presented the proposal for the Enduring Asset Fund. All three presentations included organization, investment team, investment philosophy, investment process, investment performance and management fees as well as growth rate and top 10 holdings. After a discussion, there was a motion by Bob, seconded by Mike and voted unanimously to award the contract to Wellington Management. A discussion followed on potential funding sources. There was a motion by Bob second by Joe and voted unanimously to transfer five million from PIMCO All Asset to fund Wellington's Enduring Asset Fund. LouAnn will notify Scott that the PERAC investment forms needed for review have changed. Buyback requests for Linda Judkins and Blair Ruocco were tabled until the Board meeting on March 26, 2012 at Cary Memorial Library. Alan Fields requested remote participation for the March 26, 2012 board meeting due to being out of town. A motion was made, seconded and approved unanimously to adjourn the meeting at 11:30 AM. Robert W. Cunha, Chairman Michael McNabb, Appointed Member Robert Addelson, Ex Officio Member Joseph Foley, Elected Member Alan Fields, Appointed Member