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Minutes of OPEB Trust Board Special Meeting, 04/12/2021

AGENDA: OPEB Trust Board Special Meeting

RECEIVED 04/27/2021 8:46am
Michele R. Grande – Redding Town Clerk

Town of Redding
Board of Finance Special Meeting
OPEB Trust Board
Monday, 4/12/2021
7:30PM Zoom

Filed subject to approval.

Present:
Jenifer Wyss, Chair; Dr. Kimberly Yonkers, Vice Chair; Ward Mazzucco; Rob Dean; Ed Miller; Jamie Barickman

Also Present:
Steve Gniadek, Finance Director; Wes Higgins, Treasurer; Chris Kachmar, Fiducient Advisors; First Selectwoman Julia Pemberton; Members of the Public

Vice Chair Yonkers called the meeting to order at 7:30PM.

1. To Elect a Chairperson and Vice Chairperson

MOTION:

Mr. Mazzucco made a motion to nominate Dr. Kimberly Yonkers as Chair of the OPEB Trust Board. Mr. Dean seconded the motion. Discussion followed concerning Dr. Yonkers request to be Vice Chair.

Mr. Mazzucco withdrew this motion.


MOTION:

Mr. Mazzucco made a motion to nominate Jenifer Wyss as Chair and Dr. Kimberly Yonkers as Vice Chair of the OPEB Trust Board. Mr. Dean seconded the motion. There were four yes votes (Yonkers, Wyss, Mazzucco, and Dean) and two abstentions (Barickman and Miller – they were absent). The motion carried.
Ed Miller and Jamie Barickman entered the meeting at 7:34PM.

MOTION:

Mr. Mazzucco made a motion to add the Investment Policy Statement to this meeting’s agenda. Vice Chair Yonkers seconded the motion. The vote was unanimous, and the motion carried.

2. Public Comment

Chair Wyss opened the floor to Public Comment.

There was no Public Comment.

3. Investment Policy Statement

Discussion followed concerning the Investment Policy Statement.

MOTION:
Mr. Mazzucco made a motion to adopt the Investment Policy as presented with two small changes. The first change is to replace “Chair Yonkers” with “Chair Wyss”. The second change is to replace the two mentions of the “Board of Finance” with “OPEB Trust Board”. Mr. Miller seconded the motion. Discussion followed concerning the location of these changes and other possible changes. There were five yes votes (Yonkers, Mazzucco, Dean, Miller, and Barickman) and one abstention (Wyss). The motion carried.

4. Advisory Agreement with Fiducient Advisors (Previously DiMeo Schneider)

Chris Kachmar of Fiducient Advisors addressed the BOF. He stated that the OPEB Trust Board will direct how Fiducient Advisors should make decisions concerning the Trust.

MOTION:
Mr. Mazzucco made a motion to adopt the advisory agreement as negotiated by Town Counsel and presented to the OPEB Trust Board tonight. The advisor is Fiducient Advisors (formerly DiMeo Schneider & Associates, L.L.C.). Vice Chair Yonkers seconded the motion. The vote was unanimous, and the motion carried.

5. Initial Funding – Amount, Source, and Town Approval

Chris Kachmar presented options the OPEB Trust Board has for establishing and maintaining Trust funds in a custodial account. Discussion followed concerning which custodial bank to use.

MOTION:
Mr. Mazzucco made a motion to use Charles Schwab as the custodial bank for the OPEB Trust. Vice Chair Yonkers seconded the motion. Discussion followed concerning the requirement for an RFP for the custodial bank. The vote was unanimous, and the motion carried.

Mr. Kachmar presented various starting asset allocations for OPEB trusts. Discussion followed concerning what asset allocation would be appropriate for the Town of Redding.

MOTION:
Mr. Mazzucco made a motion to adopt the moderate risk profile which was the recommendation of the OPEB Trust Board’s financial advisor. Mr. Miller seconded the motion. Discussion followed concerning which asset allocation is used for municipalities in starting their OPEB Trusts. There were 5 yes votes (Mazzucco, Miller, Barickman, Dean, and Wyss) and one no vote (Yonkers). The motion carried.

Discussion followed concerning the funding schedule for the OPEB Trust and the initial funding amount.

MOTION:
Mr. Mazzucco made a motion to transfer $1m from the Unassigned Fund Balance for the initial funding of the OPEB Trust to be deployed on a dollar-cost averaging basis at a frequency recommended by our financial advisor. Mr. Dean seconded the motion. Discussion followed concerning the amount of money to be initially transferred and future transfers.

Mr. Mazzucco withdrew this motion following the discussion.

MOTION:
Mr. Mazzucco made a motion to transfer $500,000 from the Unassigned Fund Balance for the initial funding of the OPEB Trust to be deployed on a dollar-cost averaging basis at a frequency recommended by our financial advisor. Mr. Dean seconded the motion. Discussion followed concerning how this funding could happen and if more funds should be requested.

Mr. Mazzucco made an amendment to the prior motion.

Mr. Mazzucco made a motion to make an initial investment in the OPEB Trust of $500,000 to be deployed on a dollar-cost averaging basis as recommended by our financial advisor with up to an additional $500,000 to be deployed at a future date upon authorization by the OPEB Trust board. Mr. Dean seconded the motion. Discussion followed concerning the current OPEB liability and whether the $500,000 initial deposit would be an adequate start. There were 5 yes votes (Mazzucco, Miller, Dean, Wyss, and Yonkers) and one no vote (Barickman). The motion carried.

6. Future Funding – Parameters for Amount and Sources

Discussion followed concerning the parameters for future funding amounts and sources.

7. Fiduciary Liability Insurance

Discussion followed concerning fiduciary liability insurance and if the OPEB Trust Board should purchase it.

MOTION:
Mr. Miller made a motion to recommend to the BOS to purchase the Fiduciary Liability Insurance that Mr. Gniadek described. Mr. Mazzucco seconded the motion. Discussion followed concerning a budget for the OPEB Trust Board. The vote was unanimous, and the motion carried.

8. Public Comment

Chair Wyss opened the floor for Public Comment.

There was no Public Comment.

MOTION:
Vice Chair Yonkers made a motion to adjourn. Mr. Mazzucco seconded the motion. The vote was unanimous, and the motion carried.

The meeting was adjourned at 9:15PM.

Submitted by,
Zachary Smith

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