Committee Minutes

PENSION AND INSURANCE COMMITTEE
Monday, November 21, 2005
A101



The meeting was called to order at 2:05 p.m.


Committee Members Present: Mike Flannery, Gerald Hamerlik, Maureen Storstad.
Committee Members Absent: Curt Kreun, Mayor Brown.


Hamerlik announced that if anyone wishes to speak to any issue to please do so
before the vote is taken on that item by asking to be recognized by the chair,
coming to the front podium, and giving their name and address for the record.

Matter of Approval of Minutes from November 1, 2005 meeting.

Motion by Storstad, Second by Flannery to approve the minutes as submitted.
Aye: All. Motion Carried.

Matter of Recommendation from Subcommittee on DB Plan Money Manager.

Hamerlik gave a review of the selection process for the selection of a new
money manager. He stated that the trustee had narrowed the respondents to
three finalists, which the subcommittee interviewed on November 15. He stated
that the subcommittee then met on November 17 and again just prior to this
meeting to discuss the three finalists and come to a final recommendation.

The group discussed that the committee members present are all on the
subcommittee and whether further discussion should wait until the other two
committee members who are tied up at another meeting can join this meeting.
Schmisek stated that he could brief the other two committee members prior to
the COW meeting on Monday if the group present wanted to proceed.

Flannery made a motion to take the dollars that had been slated to be
transferred to a new managed investment firm to be redirected and be invested
in the Vanguard S & P 500 fund. Storstad seconded. Storstad inquired whether
Flannery was thinking of putting all of the funds of just a part of the funds
into the S&P. Flannery stated that he feels that if it is a good decision to
move over time toward having it all in the index fund then it would be just as
good an idea to just go to the index fund now. He continued that research has
shown that it is has had good returns and is currently up and that whether you
put in when up or down still seem to get most for your money which leads him to
think that sooner we put in the better. Upon call for the question, Aye:
Flannery – 1, Nay: Hamerlik, Storstad – 2. Motion Failed.

Motion by Storstad to recommend selection of Voyageur to manage the funds.
Second by Hamerlik. Hamerlik commented that in the subcommittee they discussed
that perhaps we should be looking at some of these alternative investment
options and rethinking our allocation of investment dollars and that should
have a separate motion to get research into all of these started. Schmisek
commented that it would be appropriate to have the trustee look at the full
allocation including the option of investing directly in the S&P index fund and
that research and discussion should begin soon. Hamerlik agreed and stated
that should be research and a discussion that occurs as soon as we can with the
full committee. Upon call for the question, Aye: All. Motion Carried.

Motion by Flannery to begin investigating whether any of our investment dollars
should be invested directly into the S&P index fund or any other distribution
of funds should be changed and asked for the trustee to work with the committee
on this matter. Second by Storstad. Aye: All. Motion carried.

The chair declared the meeting adjourned.

Respectfully submitted,


John M. Schmisek, CPA
Director of Finance and Administrative Services