AGENDA MEMORANDUM

Meeting Date:           July 26, 2010

From:                          Jay M. Evans, City Manager               

Subject:                      Ordinance amending the City of Leesburg Retirement Plan for General Employees

Staff Recommendation:

Staff recommends adoption of the proposed ordinance amending the City of Leesburg Retirement Plan for General Employees.

Analysis:

The Board of Trustees for the Retirement Plan for General Employees have recommended the attached ordinance be adopted amending Section 4, Finances and Management, subsection 6.C., to eliminate the word “independent” in reference to the consultant that is hired to review the performance of the plan’s investment managers.  The Board recognizes that there are situations where a consultant could be precluded from assisting the Board in investment manager evaluation due to a de minimis and ancillary relationship with one of the managers.  The Board believes that some situations may represent a very remote potential for conflict of interest, and that a greater benefit is derived from engaging these consultants.

The proposed language would eliminate the word “independent”, and would add a requirement that “The Board and the consultant shall make reasonable efforts to eliminate or minimize any potential or actual conflicts of interest that any such consultant retained by this Board may have”.

The ordinance was drafted and is approved by the Plan Attorney.

Options:

1.  Approve the Ordinance amending the Retirement Plan for General Employees; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The plan’s actuarial firm, Foster and Foster, has reviewed the proposed change and indicate there is no financial impact to the plan.

Submission Date and Time:    7/22/2010 10:41 AM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________