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Home My WebLink About11-07-2018 MinutesCITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND BOARD OF TRUSTEES QUARTERLY MEETING MINUTES City Hall, Commission Chambers Wednesday, November 7, 2018, at 10:OOAM TRUSTEES PRESENT: Gequita Cowan Robert Briggs Patricia Gleason Jean Grafton Stefanie Wilson TRUSTEES ABSENT: None OTHERS PRESENT: Drew Ballard, Foster & Foster Tim Nash, AndCo Consulting Lee Dehner, Christiansen & Dehner Kim Kilgore, Foster & Foster 1. Call to Order — Gequita Cowan called the meeting to order at 10:01 a.m. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes The board voted to approve the minutes from the September 11, 2018, quarterly meeting, upon motion by Jean Grafton, second by Robert Briggs; motion carried 5-0. 5. Consent Agenda a. Warrants #50 and #51 for ratification. b. Quarterly fund activity report for September 5, 2018 to October 31, 2018. The board voted to approve the consent agenda as presented, upon motion by Robert Briggs and second by Stefanie Wilson, motion carried 5-0. New Business a. Trustee term updates i. Gequita Cowan, Member Elected, reappointment ii. Robert Briggs, 5th Trustee, Council ratified appointment 1. Kim Kilgore stated that Gequita Cowan has been reappointed as the member elected trustee and Robert Briggs appointment as the 51h trustee has been ratified by the city council. b. Election of Officers The board voted to approve Gequita Cowan for chair, upon motion by Robert Briggs and second by Patricia Gleason, motion carried 5-0. The board voted to approve Robert Briggs for vice chair, upon motion by Patricia Gleason and second by Jean Grafton, motion carried 5-0. 1. Robert Briggs asked about the duties of the secretary. Jean Grafton explained her role as the board's secretary stating her main function was to verify the chair's approval on documents. The board voted to approve Stefanie Wilson for secretary, upon motion by Robert Briggs and second by Patricia Gleason. motion carried 5-0. Proposed 2019 Meeting Dates i. Kim Kilgore stated the date of February 61h falls during the FPPTA winter conference which will be attended by some board members. Kim Kilgore further stated that Lee Dehner s office gave alternate dates of January 30th or February 14th. Kim Kilgore stated the February 141h date will not work for her. Gequita Cowan asked the board if January 30th will be good for the board. ii. Tim Nash will not be able to attend January 30th, but he can send someone in his place. iii. By consensus the board approved the 2019 meeting dates as presented except for changing the February 61h date to January 301h. 7. Old Business a. Foster & Foster, Drew Ballard, Plan Actuary i. Demo presentation of the online portal 1. Gequita Cowan explained the online portal demo will be viewed in the conference room and to hold questions and comments until we return to council chambers since we are holding an official meeting. 10:23 a.m. - The board moved to conference room to observe the online portal demo presented by Drew Ballard with Foster & Foster. There will be no discussion/minutes until board returns to council chambers to continue the official board meeting. Returned to the meeting at 10:46 a.m. 2. Stefanie Wilson asked on an average year how many estimates are requested per year. Gequita Cowan stated since last quarter there were around four estimates. 3. Gequita Cowan stated she has had many conversations with the members, and they are all on board with the online portal. 4. Gequita Cowan shared an email from Debra Douglas in the Finance department stating that the data which would need to be provided on a biweekly basis will not impose any hardships or burden on their staff. 5. Robert Briggs asked if payroll data provided was in excel format for the upload and Drew Ballard confirmed that excel would work. 6. Drew Ballard stated there was a one-time set up fee of $10,000 and an annual fee to provide the membership with log -in capability of $15,000. Drew Ballard further stated any plan provision changes would be coded and updated along with any maintenance and upgrades at no additional cost. 7. Robert Briggs asked if Foster & Foster were having the same discussions with Police & Fire on purchasing the portal. Drew Ballard said not at this time, but plan to do soon. 8. Kim Kilgore stated the portal would be very helpful for the members with retirement planning because it would give them the ability to run an estimate at any time with no additional cost to the member. 9. Drew Ballard explained the timeframe would be around 60 days to roll out the portal to the members. 10. Jean Grafton asked if this would replace the green sheets currently provided by the actuary. Drew Ballard stated the green sheets are provided per agreement with actuary. Jean Grafton stated that the green sheets may not be needed since the information on the portal would be more current. 11. Jean Grafton asked if all employees were computer literate and had access to a computer. Gequita Cowan stated that members would be able to access the portal from a computer outside of work. 12. Drew Ballard commented the application would be tracking usage data for the board to evaluate. 13. Gequita Cowan recommended the board approve the purchase of the portal and to evaluate the application after using for one year. The board voted to approve the costs associated with Foster & Foster online membership portal, upon motion by Jean Grafton and second by Stefanie Wilson, motion carried 5-0. Reports (Attorney/Consultants) a. AndCo Consulting, Investment Consultant, Tim Nash i. Review of S&P 500 Total Return Index History 1. Tim Nash presented a chart of the S&P 500 total return index history since 10/9/2007 tracking when a 5% pullback happened. Tim Nash reviewed the best and worst days of the S&P 500 over 2,786 trading days and commented that ups and downs in the market are not uncommon. ii. Quarterly Report as of September 30, 2018 1. Tim Nash gave an overview of the market environment during the past quarter commenting the US economy is doing great although some analysts are worried about inflation. Tim Nash stated the federal interest rates are expected to increase once more before year end. 2. Tim Nash reviewed the asset allocation and funded value between September 2017 to September 2018 and stated the portfolio's asset allocations are all in compliance with the Investment Policy Statement. 3. Tim Nash recommended the need to bring real estate back up to 10% of the portfolio's allocation. Tim Nash advised the needed cash can be raised from selling stocks in which the fund is currently overweight. Tim Nash stated the American Core Realty fund only accepts purchases on the first business day of each quarter. The board approved allocating an additional $1,000,000 to American Core Realty Fund to rebalance real estate back to investment policy target, upon motion by Jean Grafton, second by Patricia Gleason, motion carried 5-0. 4. The market value of the fund as of September 30, 2018 was $40,738,579. The Total Fund Gross returns for the quarter were 4.16%, outperforming the benchmark of 3.46%. Trailing returns for 1, 3, and 5-year periods were 10.26%, 10.71% and 8.69% respectively. Since inception (4/1/04), gross returns were 7.21 % outperforming the benchmark of 7.03%. 5. The total fund net performance for the fiscal year was 9.97% which has beaten the plan's assumed rate of return. 6. Tim Nash commented the board has done a great job with their investment decisions this past fiscal year. 7. Tim Nash commented the total fund annual fees for investment management, custodial and consultant were 68 basis points or $277,916. Christiansen & Dehner, Board Attorney, Lee Dehner i. Legislative Update 1. Lee Dehner commented the first week of the legislative session will be in early March and advised he would provide an update at the next meeting of any pre -filed bills. ii. Avoidance of benefit overpayment 1. Lee Dehner reviewed the benefit overpayment memo and what constitutes a future stop date. Kim Kilgore commented the administrator has identified all future benefit changes and assured the board they have all been entered in Salem Trust's benefit payment system. Staff Reports, Discussion, and Action a. Foster & Foster, Kim Kilgore Plan Administrator a. Proposed administrative fees 1. Kim Kilgore advised there has not been an increase in fees since Foster & Foster was hired as the administrator in August of 2014. Kim Kilgore advised the board that the new fee arrangement would be guaranteed for three years beginning January 1, 2019. Kim Kilgore proposed a monthly retainer fee increase from $1,750 to $2,100 and an increase of $150 to $180 per hour for special projects. The board approved the proposed administrative fee changes, upon motion by Robert Briggs and second by Jean Grafton, motion carried 5-0. Update on proposed ordinance 1. Kim Kilgore stated the proposed ordinance amendment to incorporate Internal Revenue Code (IRC) changes will be presented for the first reading at the next city council meeting. Educational Opportunities 1. Kim Kilgore reviewed the following upcoming educational opportunities. a. FPPTA Winter Trustee School, Feb. 3-6, 2019, Orlando, FL. i. Gequita Cowan requested to be registered for the FPPT;; winter trustee school. 10. Trustees' Reports, Discussion, and Action — None. 11. Adjournment —The meeting adjourned at 11:42 a.m. 12. Next Meeting —Wednesday, January 30, 2019 @ 10:00 am, quarterly meeting. Res �pctfully syibmitted by: Na e: Kim Kilgore Title: Plan Administrator Approved by: i i� Name: Ge *a Cowan, Title: Chair