City of Meriden, CT - 09/09/2008

The Board reviewed the Minutes of the July 8, 2008 meeting and a motion to accept the Minutes as submitted was made by James Suzio, seconded by Gerard Adelman. Motion unanimous.

Board members reviewed the Financial Reports for July for City, Police and Fire. Carol Shade, Director of Accounting, presented the Board with information regarding investment portfolios for their review. A motion to accept the financial reports as submitted was made by Caroline Beitman, seconded by Brian Daniels. Motion unanimous.

The Board also reviewed the Financial Reports for August for City, Police and Fire. Carol Shade presented the Board with information regarding investment portfolios for their review. A motion to accept the financial reports as submitted was made by James Suzio, seconded by Gerard Adelman. Motion unanimous.

Gerard Adelman made a motion to move to executive session at 5:35 p.m., seconded by Brian Kogut. Motion unanimous. Brian Kogut made motion to come out of executive session at 5:39 p.m., seconded by Gerard Adelman. Motion unanimous.

A motion to accept Firefighter D’Addario’s application for disability retirement was made by Gerard Adelman, seconded by Brian Kogut. Chief Trainor spoke of Firefighter D’Addario’s many years of devoted service to the City and the department and that he would be sorely missed by all. The Chief commended his loyalty and dedication and wished him the best of luck. Motion unanimous

Ø Christine Ancona, City of Meriden, Public Health Nurse, normal retirement, normal form, effective date 8/30/08, monthly benefit $2,044.21. A motion to accept Ms. Ancona’s application as submitted was made by Gerard Adelman, Seconded by Brian Kogut. Motion unanimous.

Ø Kathleen McParland, Board of Education Custodian, normal retirement, normal form, effective date 9/2/08, monthly benefit $2568.51. A motion to accept Ms. McParland’s application as submitted was made by Gerard Adelman, seconded by Caroline Beitman. Motion unanimous.

Ø Mary H. Moore, Board of Education Cafeteria, normal retirement, normal form, effective date 8/27/08, monthly benefit $684.76. A motion to accept Ms. Moore’s application as submitted was made by Gerard Adelman, seconded by Brian Kogut. Motion unanimous.

Caroline Beitman explained to the Board that the Milliman Invoice for OPEB presentations and consulting services needed to be paid because the Finance Department requiring all old year invoices to be processed by the end of July 2008.

The Board reviewed the memo regarding IME costs. A discussion ensued among Board members regarding what if any efforts could be made in cutting some of the medical costs. The Board agreed in obtaining a legal opinion from Deborah Moore, City Attorney, on the possibility of selecting just several from the group of 8 rather than sending all for IME’s. Ms. Moore will present her findings at the next pension board meeting. A motion to table the IME exams awaiting legal advice from Ms. Moore was made by Caroline Beitman, seconded by James Suzio. Motion unanimous.

Caroline Beitman presented the Board with a letter from attorney Martin McQuillan (the former Police Chief Abbatematteo’s attorney) requesting a modification to the former Chief’s retirement benefits due to his recent SSA award. The Board agreed to retain the services of Floyd Dugas, the City’s Labor attorney, to represent the City. A motion was made to hire Attorney Dugas by Gerard Adelman, seconded by James Suzio. Motion unanimous.

Patrick Sheehan presented the Board with an overview of the pension funds and reported that Meriden’s retirement accounts closed FY’08 on June 30th with a composite value of $254,638,301 and an annual investment gain of +5.8%. The City Employees Retirement fund totaled $143,324,076 and posted a +5.1% return, while the combined Police/Fire Pension funds ended the fiscal year with a market value of $111,314,225 and returned +6.6%. During the fiscal year, the investment funds distributed $6,623,000 in cash to the City to support benefit payments to retirees. The average annual rate of return for the Meriden funds is +12.3% during the past three fiscal years, and +10.1% over the past five years. $141.6 million and the Police/Fire pension totaled $109.7 million.

Resolved, that the Meriden Retirement Board terminate its Private Advisor management contract with Lehman Brothers (formerly identified as Neuberger-Berman Intermediate Fixed income) and assign Lehman’s fixed income holdings to Madison Investment Advisors. The Board authorizes its chairman, John Ivers, to review and execute the documents required to transfer these management responsibilities, as it also engages Madison under the Select Advisor program.

Whereas, the Meriden Retirement Board has completed a year-long review of the fees, charges and costs of custodial, advisory, and management services for its investment accounts;

And whereas, the Board wishes to retain the services of its current managers and consulting team, but to reduce the pension fund’s overall administrative and investment expenses;

Be it hereby Resolved, that the Retirement Board agrees to extend its investment management and advisory relationship with Gerald Glass and Patrick Sheehan of A.G. Edwards for the period October 1, 2008, to September 30, 2011.

Be it further resolved that the Board wishes to replace its existing custodial, monitoring, and Private Advisor management contracts with the A.G. Edwards Select Advisor program, for the following External portfolio managers: Neuberger Berman, Templeton

Advisors, Anchor Capital Advisors, NWQ Tradewinds, Roxbury Capital, Louis Navellier and Company, Lehman Fixed Income, and Wentworth-Hauser-Violich. The Board understands that Select Advisor provides a Unified fee of 75 basis points for all management, custodial, and advisory services.

The Board acknowledges that any external portfolio managers that are not included on the A.G Edwards’ Reference List may require a separate management contract, and desires to retain the services of both Orrell Capital Management and Armstrong-Shaw Associates on terms no less favorable than the advisors engaged through the Select Advisor program. Further, the Board acknowledges that no asset-based fees will be charged to two specially designated accounts (City Employees M, and Police/Fire H) which will remain as Board-Directed accounts, paying separate fees or commissions on transaction activity.