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