Police & Fire Pension Board Meeting

Summary

Meeting Overview

The Lexington Fayette Urban County Government Police and Fire Retirement Fund Board convened on November 13, 2024. The board addressed three main agenda items during the session, focusing on quarterly reporting, real estate management, and internal audit matters.

The meeting included one informational presentation on the quarterly report, while the board took action on two items: approving updates to the real estate manager search process and approving internal audit suggestions and solutions. A total of five votes were recorded during the proceedings, indicating active deliberation on various matters beyond the three primary agenda items.

No public comments were received during the meeting, allowing the board to focus entirely on its administrative and oversight responsibilities for the police and fire retirement fund. The session demonstrated the board's ongoing commitment to prudent fund management through regular reporting, strategic real estate investment oversight, and implementation of internal audit recommendations to strengthen operational procedures.

Attendance

Present: Jim O'Connor, Steve, Tommy, Tim, Chad, Susan, Commissioner Hensley, Chief Weathers, Chief Wells

Absent: John

Late: None

The meeting had nine members in attendance with one absence recorded.

Votes and Decisions

The Board conducted five votes during the meeting, all by voice vote with unanimous or near-unanimous approval.

Transfer Letter and Report Approval 3:00 The Board voted to accept the transfer letter and approve the report. The motion passed by voice vote.

Ghost Time Purchases 5:00 The Board approved ghost time purchases for four individuals: James Cooper, Richard Rader, John Robinson, and Jason Walton. The motion passed by voice vote.

Widow's Annuities 6:00 The Board voted to approve widow's annuities for three recipients: Lou Ann Osborne, Helen Stevens, and Ada Williamson. The motion passed by voice vote.

Real Estate Manager Selection 7:00 Commissioner Tommy Peckett made a motion to hire LaSalle Property Fund as the real estate manager, which was seconded by another commissioner. The motion passed by voice vote.

NTIS Research Subscription 9:00 Commissioner Hensley motioned to approve an expense of up to $3,000 for an NTIS research subscription, with the motion receiving a second from another commissioner. Despite the motion passing overall, the vote recorded 2 nays, indicating some opposition to this expenditure.

All motions were conducted through voice votes rather than formal roll call votes, so individual commissioner positions were not recorded for most items. The meeting demonstrated efficient processing of routine pension board business, including benefit approvals, service purchases, and administrative decisions.

Budget and Financial Actions

The Board addressed one financial item during this meeting.

NTIS Research Subscription The Board considered a $3,000 subscription to NTIS (National Technical Information Service). This subscription-based service would provide the organization with access to technical research and information resources.

*Note: Specific resolution numbers and transcript timestamps were not available in the provided meeting materials for this financial action.*

Contested Items

The Board addressed two items that generated significant debate and resulted in split votes among members.

Real Estate Manager Search

The decision to hire LaSalle Property Fund as a real estate manager sparked considerable discussion and controversy. Board members expressed concerns about the broader implications of large organizations purchasing single-family homes, viewing this as a potentially problematic trend in the housing market. Despite these reservations, the motion ultimately passed, though not unanimously. The split vote reflected the Board's internal debate over balancing investment opportunities against concerns about corporate ownership of residential properties.

NTIS Subscription

The proposal to approve a subscription to the National Technical Information Service (NTIS) also faced opposition from some Board members, resulting in a divided vote. While specific details about the nature of the objections were not provided in the available materials, the split decision indicates there were substantive disagreements among members regarding the value or necessity of this subscription service. The final outcome of this vote was not clearly specified in the extracted data.

Both contested items highlight areas where Board members held differing views on policy and spending decisions, demonstrating the deliberative nature of the Board's decision-making process on matters that lack clear consensus.

*Note: Specific timestamp references and detailed vote counts were not available in the provided materials for this meeting.*

Quarterly Report

Jim O'Connor presented the quarterly report to the Board 1:00. The presentation focused on the organization's financial performance during the quarter, with O'Connor highlighting particularly strong results in both equity and bond markets.

The report covered several key areas of financial performance:

• Market Performance: O'Connor noted strong performance across equity and bond market investments during the quarter
• Asset Allocation: The presentation included discussion of current asset allocation strategies and positioning
• Cash Flows: Analysis of cash flow patterns and trends was presented as part of the quarterly review

This agenda item was structured as an informational presentation, with O'Connor serving as the primary speaker delivering the quarterly financial update to Board members. The report provided Board members with a comprehensive overview of the organization's financial position and investment performance for the reporting period.

The quarterly report served its intended purpose as a regular informational briefing, allowing the Board to stay informed about financial performance and market conditions affecting the organization's investments and overall financial health.

Real Estate Manager Search Update

7:00

Tommy Peckett provided an update on the committee's search for a new real estate manager. Following their evaluation process, the committee made the decision to hire LaSalle Property Fund as the organization's new real estate manager.

Peckett presented the committee's recommendation to the Board, explaining the selection of LaSalle Property Fund for this role. The discussion focused on the committee's decision-making process and the qualifications that led to LaSalle Property Fund being chosen over other candidates.

The Board approved the committee's recommendation to move forward with LaSalle Property Fund as the new real estate manager. This decision represents the conclusion of the search process that the committee had been conducting to fill this important position.

The selection of LaSalle Property Fund will provide the organization with professional real estate management services going forward, addressing the need that prompted the original search for a qualified manager in this area.

Internal Audit Suggestions and Solutions

8:00

Commissioner Hensley presented a recommendation from the internal audit department regarding the monitoring of retiree records. The audit team suggested that the organization subscribe to the National Technical Information Service (NTIS) to systematically check retiree records against death files.

This recommendation addresses the need for more accurate tracking of deceased retirees to ensure proper management of pension benefits and prevent potential overpayments. The NTIS service would provide the organization with access to death records that could be cross-referenced with their retiree database on a regular basis.

Commissioner Hensley explained the audit team's rationale for this subscription service, which would enhance the organization's internal controls and help maintain the integrity of the retirement system. The proposal represents a proactive approach to identifying deceased retirees who may not have been reported through other channels.

Following Commissioner Hensley's presentation of the internal audit recommendation, the Board approved the subscription to NTIS for checking retiree records against death files. This approval will allow the organization to implement the enhanced monitoring system as recommended by the internal audit team.