St. Mary's County, MD Sheriff's Office Retirement Planning Board for St. Mary's County, 28 Oct 2021

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From YouTube: 10/28/21 Sheriff's Office Retirement Planning Board for St. Mary's County

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Good afternoon and welcome to the sheriff's office retirement plan.

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Board meeting held on thursday october 28th at one o'clock in the afternoon, we are in the.

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Chesapeake building and baldridge street in leonard town public meetings are open to the.

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Public in lieu of in-person attendance citizens may listen to the meeting by calling 301-579-7236.

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Access code 963443, pound or view the meeting remotely on channel 95.

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And youtube for today's meeting, we'll open with a call to order.

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We are all present, I'm rebecca bridget, the county administrator to my left is jeanette.

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Cudmore chief finance officer and john walters, our citizen member to my right, is catherine pratzen.

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Our plan administrator and joining us on zoom is lieutenant sean moses with the sheriff's office.

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And lieutenant clay safford with the sheriff's office. Thank you, gentlemen. For joining us.

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Good afternoon.

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And thank you to our staff supporting the committee. Today is sheila smith plan.

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Coordinator and amy carter, our videographer, so with that I will move to item 2 for the roll.

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Call if you'll take a minute to look at today's meeting agenda, then I'll request approval of the.

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Meeting via motion please move to approve. We have a motion to approve the meeting today. The.

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Meeting agenda today is there second. Second, any discussion hearing, none all in favor, aye, aye, aye,.

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And lieutenant moses you're on mute. If you have a.

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Chance to unmute and give us a vote that'd be great.

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Great, it looks like he's not muted, now sheila. Is that correct? Okay, great uh so.

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We'll move on! Oh I'm, sorry! um We have. I heard all everyone vote, except for lieutenant moses, so.

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We, um the motion, carries any opposed.

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Thank you motion carries uh 2b is the approval of the september 23rd.

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2021 meeting minutes, if you take a minute to review those we'll entertain a motion to approve.

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I'll make a motion to approve the minutes. I will second, we have a motion and a second.

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To approve the minutes of september 23rd 2021, all those in favor aye, aye, aye, aye.

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Any opposed motion carries thank you and thank you lieutenant moses. We heard you that time.

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3A. Thank you. You're welcome. 3A is new business with the marquette associates and we will turn.

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It over to you for your discussion pat good afternoon, thanks for joining us, hey good.

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Afternoon, thank you, dr bridget, and good afternoon. Everyone it's great to see you again and to speak.

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With those of you online, so we have a fairly light agenda today, we'll start, if you would all just hop.

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Over in your book and turn behind exhibit one for those of you listening online. This.

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Is going to be on page number, four, as far as recommendations for considerations today,.

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So, on page four you can see it should be a fairly familiar table too. All by now the.

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Fund allocations, these values, I'll just note, were as of the close of business last thursday,.

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Since the materials were distributed on friday, but I'd just like to bring a couple of quick.

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Things to your attention before we get to the specific recommendation, if you could focus it.

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Towards the top of the page, the third row over, where you see the header header there that says.

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Total assets, that is, the total assets of the retirement fund, as of the close of business last.

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Thursday, so we're at just a shade over 136.2 million dollars. As of them, it's up about 1.5.

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Million dollars, since we last met a couple things driving that increase number one. We.

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Continue to receive some of the private market investment values as of the second quarter, but.

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The more important driver was that equity markets have been fairly strong over the past month.

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We saw some weakness in september where equities were down on the order of four to five percent.

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But in october so far we've seen equities recoup all of those losses and then some.

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So that really drove the bulk of the gain in assets that we've seen over the past month or so.

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The next item, I'd like to draw to your attention again, is: if you look at that.

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Bottom left table that smaller table again just a couple of quick comments. Around acid allocation.

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So you can see towards the left of the table. We're listing the asset classes there in black.

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And then, in the table itself, the black numbers are the current allocations.

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The targets in blue and then the difference is to the right of that in green or red, where.

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Green is indicative of an overweight and red vice versa and underweight.

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So if you look at the first three rows again, where we're looking at the equities always.

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Important to point out that, as we stand here today, they are within the permissible ranges.

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Per the current investment policy statement, which calls for plus or minus nine percentage points.

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Within that asset class and as you know, we've been uh sort of running that overweight for.

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Quite some time, because that's the direction that we're heading and then the corresponding.

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Underweight you can see to the second to last line. There is the in the alternatives bucket.

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The last thing I wanted to point out before moving on to the specific recommendation, if you notice.

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The cache line at the bottom of that table we're about a percentage point above cash, so there are.

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Two cash accounts, one at morgan, stanley to fulfill the capital, calls for the private investments. The.

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Distributions from those investments also go back to morgan stanley, so that's sort of a self-funding.

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Mechanism for those investments, but we also have about three million dollars in wells fargo at this.

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Time in cash, uh as you all I'm sure, well know we're going to have some upcoming cash needs.

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My understanding with the drop payouts starting next year, based on some of the information that.

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Miss patterson has provided that's about a half million dollars earlier in the year.

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And then a sizable one in the beginning of april of about one and a half million dollars, so we're.

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We're carrying a lot of cash now, mainly due to the reason that we know we're going to need it.

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In fairly short order- and that's really a conservative approach when we know we're going.

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To need the cash we don't want to put ourselves in a position where we'll have to sell something.

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At the wrong time to meet those needs, so we have plenty of it for that upcoming drop payment in the.

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Beginning of the year, but I suspect over the next few meetings we may look for opportunities to make.

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Maybe raise a little bit more cash in anticipation of that april. First, payment.

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Now, as far as the recommendation itself, if you look in the middle column on that table, up top.

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Underneath rebalancing towards the middle of the page, we are recommending.

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Basically, a rebalancing out of the developed non-us equity asset class into emerging markets.

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And a couple of quick comments for some additional color. So when you look at the develop non-us.

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Equity composite there, you can see three managers where there is a largest allocation in the middle.

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There to the fidelity index fund- that's just providing us broad exposure at a very low cost.

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To those markets, it's complemented by the manager on top schroeder's, who is an active international.

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Value manager and then the bottom manager that pgim jenison international opportunities fund is.

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The active international growth manager. But if you look at their respective allocations, which.

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Is right to the left of the rebalancing column, you can see that the active international growth.

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Manager has about a percentage point more than value at this time, and that's mainly due to the.

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Fact that over the past couple quarters, growth has done better than value in international markets.

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So this rebalancing is really accomplishing or is meant to accomplish two things.

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Number one to bring that growth value split within developed markets back in line and number two.

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Use those proceeds to add a little bit of funds to emerging markets, which you can see right now.

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Has a 4.4 percent allocation, which is about 25 percent or so below the target of 6 percent.

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Now, emerging markets actually have underperformed uh fairly drastically this year about 10.

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Percentage points below non-us equities and even further below u.s markets, so this is more of a.

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Rebalancing of just quite simply a sell, high sort of bilo type of approach so that emerging market.

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Allocation would still be about, you know, 10 below its target or so, but we think adding money to that.

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Asset class is an opportune time right now, since it has lagged so much during the current year.

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On page five, that recommendation is explicitly stated, so you can see we do recommend the board.

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Approve that rebalancing as outlined, which again would be an increase of 1.25 million dollars.

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To the emerging markets, index fund being sourced again from the active international international.

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Growth manager and just to comment quickly on the fees that index fund is obviously very.

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Very cheap at just eight basis, points where the active international growth manager is upwards.

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Of 80 85 basis points, so this would uh lower the fees marginally for the fund as a whole.

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So with all that said, let me pause here happy to answer any questions or or comments from the.

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Board at this time, I want to be sure I understand your comments about the cash and the future draws.

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Yes, do we between now and say the end of next year? Are we expecting only two.

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I would we have thank you. We have, um I want to say it's nine participants that are in the.

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Drop program that will be retiring to in january and seven in march, so I I think to um your. If I.

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Understood the question: it's these two and I think there's another nominal one, but not not next year.

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Well, I thought I did see one for jute first, but I could be mistaken.

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There as well- oh okay, I don't think so. Okay anyway, I can double check that this would be. This would.

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Be the bulk of it when I say nominal, I mean about two hundred thousand dollars, so it's either as we.

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Stated here around 2.1 or it could be maybe two and a quarter, but this is the vast majority of.

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Those cash requirements for the drop payouts and we have then those covered with cash on hand. Now.

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Yes, because at wells fargo, we have about, excuse me 2.9 million dollars and the the fund itself.

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Is cash flow positive right? So, yes, we do have it covered that we may just want to generate a.

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Little bit more cash to slowly build it back up to target. You know as appropriate once the monies are.

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On route to our next big draw, which is over the horizon at this point,.

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Okay, how would we do that by turning off reinvestments on something? Now I I you know.

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It would be our recommendation to to to do that via rebalancing. As I'm sure you all know, the.

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The reinvestment is a huge part of you know a long-term return, particularly among equities.

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You know reinvesting buying more shares over time, so I think we would, you know, advise tackling that.

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Through a rebalancing, you know seeing what's overweight and then maybe drawing that a.

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Little down to fund that cashfish's genova well, doesn't that get us back into your thing about.

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Selling we didn't want to sell, well it yes, and no so, depending on what the allocations look at that.

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Time if we are overweight equities, then equities have obviously generated pretty strong returns. So.

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We'd be selling high and if we do undergo some equity market weakness, then that's why we have.

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That core fixed income in the portfolio and we would look there. So it's something that.

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We would address you know when we get a little closer to it, depending on the acid allocation.

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How it stands then, okay, but for the time being we don't have to worry about either of those.

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Possibilities because we can cover our near-term obligations. Yes, sir. Okay, that's all I want to know.

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Any other questions from board members.

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And I move, we accept the recommendation to rebalance, as shown.

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We have a motion on the floor to accept the rebalancing. Is there a second a second any.

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Discussion hearing, none all those in favor, aye, aye aye any opposed motion carries thank you and.

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Item b on our agenda for new business is investment policy statement review pat.

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um I'm sorry, dr bridget, I think we have one more item in between that. Okay sure.

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As far as it relates to the millennium distribution- okay, great, let's jump back.

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And get to the millennium share class uh conversion. I guess that's under exhibit three.

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In our packet uh exhibit two, so it's the next exhibit. So if you flip over exhibit two. Oh, I see.

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Thank you, so this would be page number seven. Thank you. So there's a lot of verbiage on this page and.

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I'm gonna also attempt to give the the board some more background and I apologize if I'm telling.

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You all things that you already know through conversations with the previous advisor, but.

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Millennium is one of the remaining hedge funds within the portfolio. There are three two of them.

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One is hatteras and the other is a legacy. Morgan stanley, hedge fund, both of those.

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Are being liquidated over time, I think the aggregate value of them is only.

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About forty thousand dollars, so it's a very immaterial allocation and we're continuing to.

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Liquidate them and then get those proceeds back as appropriate and millennium. If you recall.

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Was a manager that we recommended the board keep uh their manager, that's really a best in breed, as.

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Far as within the hedge fund asset class. But if we look at this top few bullets and then I'll back up.

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And provide a little bit more background here, but since 2018 millennium has been returning investor.

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Capital or you know, their investment funds for those invested in a legacy share class, so.

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It's our understanding. The pension fund made their initial investment with millennium back in 2014.

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When they had only one share class in 2015 millennium launched a new share class.

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And I'll talk more about that in just a second, but at the end of each year, what millennium.

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Is doing is they're distributing funds from the legacy share class and then giving clients the up.

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The opportunity either to receive it as cash or to convert it into the new share class and then.

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As I note there, the only difference between the two are the liquidity terms and I'll hit on that.

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In just a second, but as a quick background, as you know why, why is millennium doing this so in 2008.

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They were down or experienced a negative return, pretty much.

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Like everybody did in the global financial crisis and their liquidity terms were pretty.

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Favorable relative to similar type of investments, so at that time, given they had pretty favorable.

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Liquidity, their investors, you know used them as a source of funds right to either.

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Rebalance back into equities as they got cheap or to not have to sell equities when they were down.

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By a bunch and used it, for you know, liquidity needs benefit payments, things of that nature.

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So at that time there was a huge drawdown in the assets under management at millennium, so in order.

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To mitigate the possibility of that occurring in the future, that's when they launched this new.

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Share class, so this gets back to the liquidity terms. So previously the legacy share class. You.

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An investor can essentially get all of their money back in about two years: the new share class. That's.

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Extended a little bit probably about to four years when you can get all your money back now, you can.

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Ask for it back on a quarterly basis, but they will not give it back to you all at once, and the reason.

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Behind that number, one is again not to experience a huge drawdown in their assets under management.

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Which would obviously impact the strength of the firm, but then importantly as an investor, if you, if.

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A different investor puts in a huge redemption, then the cost of fulfilling that redemption is.

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Borne by everyone right, because everybody's invested in uh in the same pool of assets so that.

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Was really the impetus for them? You know trying to move investors from the legacy share class into.

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The new one and it's something that they are going to do and have been doing over the past few years.

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So you can see in that second main bullet point. After speaking with millennium, given.

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Obviously we weren't working with you all at the time. Last year the distribution was converted into.

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The new share class, so that was confirmed by millennium and you can see below that.

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The current split of the investment is 75 in the old one and 25 in the new one.

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This year's distribution amount will be about 35 of the old share class. So a third of the 75.

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Would mean if the board chose to convert it into the new one, then we'd be about 50 50 and again.

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This is something that they're doing every year, eventually we'd be all in the new share class.

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But with all that said, we would recommend that the board, you know, approve what took place last year.

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Really, for a couple reasons number one like we talked about: this is pretty much the best in breed.

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Manager in the hedge fund space and given the newly approved asset allocation, the current.

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Allocation to millennium is about four percent, which is in line with the target. So in order to.

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Keep that allocation consistent with where we're going over the long term to us. It makes sense.

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uh At least from a recommendation perspective to have the board approve the conversion, as opposed.

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To receiving it as a distribution, so with all that said, let me pause again for any questions or.

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Comments from the board, so you you use, the word may request a redemption. Can they say? No? No. They.

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Will they will so if you, if we don't, uh approve it and send back the document, the money will come so.

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In order to receive, or in order to have it be converted, there is a document to sign.

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And submit to them to have it converted back so the default option is actually to send the money.

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Back to the investor? Okay, so it's it's not really a question. Are we asking for the money to come.

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We're asking it to be uh reinvested into a different share class. That is correct, which is.

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Totally liquid, so it is liquid in the sense that you can ask for your money back, but you can't get.

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It back all at one time so right now, if you wanted to fully redeem the allocation it would take about.

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Two years going forward, it's extended to about four years, for the reasons that I outlined earlier.

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From a millennium perspective and then also an existing investor perspective, I think it provides.

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More protection for both parties and is there anything in the master document that says no? We.

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We're all of y'all that want your money back on a redemption from the liquid side. You can't have it.

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No, that's why they have it on a schedule. Okay, on the schedule, as far as, if, basically you could say,.

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We want to fully redeem and then you will get paid out on that schedule. Just like everybody else. Okay,.

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Any other questions from the board members.

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We can change our vote on reinvest non-reinvest at any point, so this is a once a year. They're doing.

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This on an annual basis, so it's my understanding based on what my conversation with millennium.

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That, last year, the board did the reinvestment and that's why you see this split so this year.

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They reached out and said: if the board wants to reinvest, this document needs to be executed.

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And then we'll be having the same conversation around this time next year. So my even little brain.

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Is going if we have that choice only once a year? Should we be thinking now about flipping back to a.

E

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I don't know that I understand that question, so let me try to answer it this way. If I, if I think I.

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Understand what you're getting at so say next year, this allocation is well above the target and they.

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Say it's time to distribute and convert, then we could say: okay distribute it and we get the cash.

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But that's only once a year, but in the interim we can ask for five percent of the investment back.

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At any point throughout the year, but it's paid out on a quarterly basis. Okay, so we we can take a bite.

E

When we want to yes, yes, I apologize yeah. Yes, that's exactly that's so then, if we wanted to go.

E

Cash distribution: we only have one opportunity per year to change our mind about that. Correct.

D

That's correct, which leads me to ask: should we be changing our mind about.

E

That now, knowing that we're going to have some cash withdrawals coming up sort of near term,.

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Well, if we think about the amount of money that we're going to get back from this at about 30.

D

So the amount invested in the old share class is about 3.3 million dollars or three and a quarter.

D

So we would get back about a million dollars if we flipped back to a cash distribution for.

D

At this specific period, yes, now that would leave us well south of the asset allocation.

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Target so when we think about you, know, raising money- and I talked a second ago about you- know.

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Raising it from places that are, you know doing the best, so we don't have to sell low, we'll have the.

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Option to submit a redemption quest each quarter for five percent of the investment, which would be.

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Roughly, you know two hundred thousand dollars a quarter roughly half correctly. Yes, it's great.

D

So if we got to back a million today in theory over the next year, we'd get back.

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Maybe eight hundred thousand dollars if we chose to ask for a partial reduction.

E

Okay, thank you. You're welcome.

A

Thank you. That was a good discussion, uh any other questions or comments from the board.

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I think we do have a proposed motion. uh It's motion number two under two. Oh sorry, three, a.

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For the millennium distributions, if anyone's ready to make the motion.

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I'll move to approve the converting upcoming.

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Millennium distributions to the new share class, as recommended by marquette, associates.

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We have a motion on the floor. Is there a second.

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Sean moses will second. Thank you lieutenant moses. We have a motion.

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I mean yes, we have a motion and a second any discussion, all those in favor aye, aye, aye.

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Aye any opposed motion carries. Thank you. Thank you. Okay, pat now, I think we're on to 3b the investment.

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Policy statement: yes, thank you, dr bridget, so if you please flip behind the next exhibit.

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What you'll find inserted behind that? First page, there is a stapled copy of the investment policy.

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Statement itself, so what this document has is reflects the track changes that were discussed at.

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The last meeting, so it shows all those respective changes throughout the document. It also reflects.

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The new attachments around the prohibited investments and the glossary of terms and then.

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The other material change that we discussed per lieutenant moses's request was the addition of the.

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Manager watch list and termination section, so at this time I just want to pause for a quick second.

D

uh I'm happy to walk through everything as far as these changes- or I don't know if the board had.

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Had a chance to review and and just wants to make some questions or comments, but happy to do either.

D

As you see fit, I don't think it would be take terribly long if I walk through the document.

A

So uh do any board members have any questions or comments on the document before we go kind of line.

A

By line, I'm not sure that's necessary in terms of we did that last time, and then these corrections.

A

Were made as a dis as part of our discussion, that's correct. As a result, um I had a question.

E

So when we're talking infrastructure.

E

Does what the infrastructure is determined, whether it's a debt or an equity? Let's say.

E

Somebody wants us to help them build a toll road, a private toll, road, paralleling.

E

The beltway okay: are we in that for equity reasons or for income reasons.

D

So let me answer this two ways. So an investment in infrastructure would be an equity.

D

Stake so much like, say, obviously, a mutual fund you're, you have the equity ownership of those.

D

Companies in an infrastructure investment, you would be an equity owner of the pool of assets.

D

That invest in infrastructure directly, so it would be equity, not debt. However, to your second question.

D

Like we talked about, I think a little bit earlier this year, the composition of the infrastructure.

D

Returns are predominantly cash flow and income driven. So if we look at a breakdown of the.

D

Long-Term return from infrastructure, which has been on the order of say, eight to nine percent.

D

About two-thirds to seventy percent of that is income with the remainder of capital, appreciation.

E

In a way, is it like owning a growth in income stock or a growth in income mutual fund, but with.

E

More income than you would normally expect it's to some degree. I I think you know with.

D

A growth and income mutual fund, depending on the makeup of the underlying constituents, the.

D

Return composition, which would still be much more heavily weighted to capital appreciation.

D

But to some degree I mean the other, the other advantage for pension funds, as we see them, is that.

D

These are assets if you use a a private open-ended fund, which has quarterly liquidity. Is that the.

D

Assets and the fund itself is not daily traded right. So there's this smoothing effect, which.

D

We can have the discussion of, is it masking the volatility or not, but at the end of the day, if.

D

We can have a smooth return within the fund itself, then obviously, we have less volatility of assets.

D

More stable funded ratio, more stable contributions, so when you and your firm came on board with us.

E

I think you gave us kind of an eye-opening education on the pros and cons of private.

E

Investment would we be facing those same problems of tying up money waiting for a future call.

D

With with respect to infrastructure, yes again, I have the consultant answer yes, and no so.

D

When you make a an allocation to something like infrastructure, you make a commitment.

D

So it's similar to the private market investment, so you might wait for that money to be called by.

D

Maybe it maybe a year or something like that, but once that money is called and invested, you st.

D

You control the cash flows, so it's not like the private market, so you can redeem that pretty much.

D

Right away, so, unlike the private market investments, where you make the commitment and.

D

The manager controls when they get the money and when they send it back to you in this investment.

D

They control when they ask for it, because they're not going to ask for it and have it sit in cash if.

D

They're not ready to invest it, but subsequent to that you, as the investor control the cash flows.

D

In a couple ways number one: you can have those dividends, reinvested or returned to you so that.

D

You know, improves the liquidity profile a little bit, that's on a quarterly basis or again you can.

D

Ask for a redemption now, there's somewhat of a a grace period. Isn't the right word, but if you.

D

Ask for a redemption say today, before the end of the quarter, then you'll get the money back say on.

D

April 1st, so is there a blackout period before you can even raise your hand to ask for a redemption.

D

There's there's no blackout period now, depending on uh the managers themselves. You can I'm.

D

One you know I'm thinking of a couple of names in my head. uh One does not have any sort of blackout.

D

Period another one does not have a blackout period, but there could be um a little bit of a haircut if.

D

You ask for it back in the first three years, where you only get back 96 cents on the dollar and again.

D

That's just to protect the other shareholders right, because these managers and, like everybody,.

D

Wants sticky investments right, um sticky, money? You know long-term partnerships with long-term.

D

Investors, so it's there's a little bit of a divergence across the managers, but there's at.

D

Least a couple where there is no lock up. So when I hear the word infrastructure, I'm thinking about.

E

Bridges and maybe canals and highways, and I'm thinking about expanding cable access, all that.

E

Kind of stuff, all right, why wouldn't we just buy a um exchange-traded fund.

E

That deals with either the companies that are building that stuff, like a caterpillar or a.

E

Pack, car or some rail card builder, as opposed to going down this path where we have these.

E

Limitations, much like we went through with private debt, private equity, so.

D

I think you know a couple things number one. You can use them as complementary pieces right, so we.

D

Have a four percent target to infrastructure? We don't need to fund that whole private investment.

D

With a four percent, we can have another small sleeve within that to use as a liquidity.

D

Bucket within the asset class itself, and then it to answer your second question.

D

And back up your spot on about the right or the type of the investments, it's largely due to.

D

How those investments are valued relative to public securities that trade and have a lot of.

D

Volatility and high correlation, so this is more of a diversification plan again for a pension fund to.

D

The extent that we can tolerate illiquidity those assets being smoothed over time should be helpful.

D

Again, from an actuarial perspective, a budgetary perspective, okay by answering your question.

E

To that question I will say: yes, if you ask me.

E

If I'm convinced we ought to go down that road, the answer is no.

A

Other questions or comments on the investment policy statement.

A

Lieutenant moses anything from your perspective.

D

uh No ma'am and I appreciate the changes that were incorporated reference. The watch.

B

List looks good to me great, thank you and lieutenant safford. Any comments.

B

uh No dr bridget, thank you thank you and ms cudmore. I think all the changes that have been.

A

Made look great, thank you right, thank you, uh and so uh do you need a motion at this.

A

Point if folks are satisfied, what's the well, I I think if I, if I may, dr bridget might be helpful. I.

D

Didn't know how the discussion was going to go. Obviously so.

D

um We meet in, I think three weeks, so at that time I can bring back a clean copy. Okay for the board.

D

um For signatures then- and we probably might make the most sense just to make it effective one. One.

D

Twenty two: just we have that clean calendar year break. So if the board is amenable to.

D

That I think that might be um the easiest path forward. Okay, great! That's a that's a.

A

Satisfactory procedure, for me, that's great, thank you in doing that, would you check? Let me see.

E

Hang on, I gotta find it.

E

Never can find it when you want to.

E

There was a spot in here where I still think we need a plural verb.

D

Oh, I know you're. No, I think I know where you're referring to uh mr walker, what we did was and.

D

Then I don't want to turn this into a grammar discussion again, because I, I think I'll lose.

D

But that was page: oh here we go so this is on page six under investment objectives and then.

D

Return objectives in the second bullet point, so what we did was we talked about the the.

D

Singular versus plural uh verb, noun combination there, and so that from was added after this.

D

After the end there, so it's obviously total net eternal annualized net investment returns, singular.

D

From all the investments of the trust from each asset class, that from was added so then.

D

The is is modifying return, which is singular. I still think it's hard, but I will pass on that.

A

Great thank you and, if any of the other board members, if you notice anything, clerical, we'll.

A

Pass that on to catherine, for any final, uh if we note anything, of course, not substantial.

A

So great, thank you very much and lastly, for for anything else for us today, you have some next.

A

Steps on page 10, I think yes and again we'll walk through this pretty quickly. This will be.

D

Will look pretty familiar to the board so at the next meeting, again, which I believe.

D

Is is three weeks from today we'll have that q3 investment performance report.

D

uh Any recommendations uh as typical and then obviously it says, policy review.

D

Update we will bring that clean document for for board signatures at that time.

D

And then the only other thing that I wanted to hit on below is the custody rfp updates just for.

D

uh The board's knowledge we've been making a lot of progress. There, miss pratzen, really.

D

Leading the way, with the help of brandon from procurement, that rfp has been posted.

D

I did receive confirmation from four custodial banks that they will be participating, including.

D

The three that we discussed earlier this year, including the incumbent and another larger bank,.

D

That's a a major player in institutional custody and trustee services in the mid-atlantic area,.

D

So we're going to have at least four solid responses. I imagine we will get some others, but as.

D

Far as the the timeline the proposals themselves are due in early november, I believe they will.

D

Be distributed to the evaluation committee before thanksgiving, along with some scoring.

D

Matrixes that again, myself and miss pratzen will will put together. Those evaluations are due in in.

D

Mid-December and then from there we will work to set up any short list for a presentation in early.

D

January with the hope that the award follows soon thereafter and then, hopefully, a transition period.

D

Probably in the second quarter, given again that the wells fargo principle transition is occurring.

D

In presidents day weekend, which is you all well know, is kind of in the mid to late february,.

D

So we're moving things ahead. You know excited about the process and I think we're going to.

D

Have some strong proposals, so I just wanted to bring that to the board's attention and that is.

D

All I have for today thank you very much anything else for pat this afternoon for the board members.

A

Great, thank you very much. We appreciate it we'll see in three weeks. Thank you. uh Next, on our agenda.

A

Is uh for old business uh a is bolton, represent a presentation, a follow-up item, ms prattson.

A

Thank you, dr bridget, and this is um informational and I believe I sent an email to everybody already.

F

But wanted to follow up on a couple of the pending items that were raised last month when bolton.

F

Went through that extensive review of how benefit statements are calculated.

F

And you may recall that the military service, pre, 2008 and post 2008 is treated differently.

F

And we wanted to confirm that the online portal that the participants have available to them, that.

F

The math was included in that portal, so benefit estimates are taking that into consideration.

F

And bolton confirmed that they are that they are taking into the um the calculations. The.

F

Different military service in that break and then separately there was a discussion about sick leave.

F

And when the portal was originally created, there was a cap of 4 000 hours of sick leave.

F

And truly the cap was added with the idea that to prevent somebody from putting in an artificially.

F

High number and getting an artificially high benefit, and it was to just protect the the the.

F

User and the and the statement from that um it turns out that we have some um participants with.

F

More than four thousand hours of sick league, um so we in response to that bolton removed the cap.

F

And then they have asked us if we want to impose or add a cap, and it's really up to the board, to.

F

Decide I've had a number of people email back, saying that the proposed six thousand hour cap.

F

Makes sense so with the board's um consent, we will ask bolton to do that. So there is a motion on the.

A

Table to approve that in a formal way, just fyi, I'm sorry, can any employee earn more than six thousand.

F

I don't know, I didn't know that you could earn more than four um there's an unlimited.

F

Amount right, the sick leave is not capped, so it's only capped yeah. I would document.

B

I would say that 6 000 is highly unlikely and I think that's a safe number to go.

B

To go by that would not be exceeded. Oh thank you, um but truly the cap is only in this portal, so.

F

It's just for the purpose of getting a benefit estimate. It is totally disconnected from what's.

E

Going on on the hr side and correct and totally disconnected from when an actual benefit statement.

F

Is calculated- and you think six gives us enough wiggle room so that if there is a person who earns.

E

More we're not back here redoing it again, um so I think was that lieutenant stafford that just spoke.

F

I think that the sheriff's office feels that 6000 is a very reasonable number. Okay. Yes, that is me.

F

So so we have a motion. Yes, there's a motion. If someone would like to make the motion for the cap.

E

I'll move to adopt the six thousand hour proposal. Is there a second.

A

A second, this is a clay sapphire. Second, thank you. Is there any discussion.

A

Hearing none all those in favor aye any any opposed.

A

Motion carries. Thank you very much. Number five is committee reports with the administrators report.

A

And that goes to you sheila, okay, we received one invoice from bolton and it had two different.

G

um They addressed the calculation uh request that catherine had requested from them as.

G

Far as answering questions on the portal and stuff and then the second part of the invoice.

G

Was two retiree calculations for a total of one thousand three hundred and sixty.

G

Dollars great, thank you any questions on the administrator's report. Hearing none do we have.

A

A motion to approve I'll move to approve the report in the amount of one thousand.

E

Three hundred sixty dollars is there a second a second. We have a motion on the floor in a.

A

Second, to approve the administrator's report, uh all in favor aye, aye, aye,.

A

Any opposed motion carries.

A

Thank you very much. Next on our agenda is public comments. Do we have any public comments for today.

A

Hearing none, uh we need a motion to adjourn so moved. We have a motion to adjourn. Is there a.

A

Second I'll: second, we have a motion and a second to adjourn all those in favor.

A

Any opposed motion carries. Thank you all very much appreciate lieutenant.

E

Moses, before you go, can I ask you, did you receive that book? I dropped off.

B

I did mr walters is sitting on the corner of my desk and I'm preparing for my tax uh exam. Okay,.

E

That wasn't why I dropped it off, but I hope it answers the question you had. I it does and I'll.

A

Great. Thank you very much motions, adjourn meetings, adjourned.

A