Loading...
HomeMy WebLinkAbout10-21-2008 Special Session Minutes Minutes of the Special Session of the CITY OF OCOEE GENERAL EMPLOYEES' PENSION BOARD Held on October 21, 2008 At 150 N. Lakeshore Drive Ocoee, FL 34761 AGENDA ITEM I. CALL TO ORDER- Chairman Wagner A. Chairman Russ Wagner called the meeting to order at 12:06 p.m. in the Commission Chambers in City Hall. The roll was called and a quorum declared present. Present were Trustees Terry Reed, Jean Grafton, Russ Wagner, Tom Hendrix and Wendy West. Also present were Jim Carnicella, Human Resources Director/Plan Administrator and Mike Welker, Bogdahn Consulting. B. Count ballots of the General Employees' Pension Board Trustee Election for the seat currently held by Terry Reed for the term beginning October 1, 2008 and ending September 30, 2010 The ballots from the election were delivered to the Board before the meeting, still in the ballot receptacle, which was unopened. Chairman Wagner called for an official counting of the ballots received and so the Board opened each ballot and began counting. There were two candidates: Terry Reed and David Wheeler. The ballots were counted and the number was verified against the total votes cast by checking the number of initialed names on the voting list. The total number of ballots counted and verified was 77. Chairman Wagner announced that David Wheeler received 41 votes and Terry Reed received 36 votes. The Board then thanked Trustee Reed for his service and congratulated David Wheeler for his election to the General Employees' Pension Board. C. Reorganization of the Board Chairman Wagner asked if this reorganization was just an election of the Board Officers. After a brief discussion, Plan Administrator Carnicella said the Board needed to first appoint the fifth Board Member since the term for that seat, which was held by Wendy West, had expired. Trustee Grafton asked for the Board's opinion but said she would like to nominate Wendy West. On motion made by Trustee Grafton, seconded by Trustee Hendrix, unanimously RESOLVED to approve the nomination and reappointment of Wendy West as the Fifth Trustee for the General Employees' Pension Board for the term beginning October 1, 2008 and ending September 30,2010. Trustee Grafton stated the appointment of Wendy West needed to be put on the next Commission Agenda. Trustee Grafton then asked what Officers they were suppose to be nominating. After a brief discussion, the Board moved on with the nominations for Officers of the General Employees' Pension Board. On motion made by Trustee Grafton, seconded by Trustee West, the Board unanimously appointed Russ Wagner as Chairman; on motion made by Trustee Hendrix, seconded by Trustee Wheeler, the Board unanimously General Employees Pension Board Special Session,October 21,2008 Page 2 of 3 appointed Wendy West as Vice Chairman; on motion made by Trustee West, seconded by Trustee Hendrix, the Board unanimously appointed Jean Grafton as Secretary. Trustee Grafton asked that the new list of Officers be sent to the Attorney. AGENDA ITEM II. NEW BUSINESS A. Investment Consultant Report& Future Strategy—Bogdahn Consulting,LLC Mike Welker handed out the Performance Review for the Third Quarter of 2008. He stated he wanted to have this meeting because there have been some questions regarding the recent market and what changes, if any, need to be made. He said from their perspective, unless we were talking about making changes to the Policy Statement or to the portfolio prior to what happened this quarter, they were not recommending any changes be made to our portfolio. He said the market will bottom and then rebound and we will be able to recoup our losses. Mr. Welker stated new money coming in to the fund is being allocated to 60% stocks and 40%bonds. Mike Welker said Lehman was in one of the bond portfolios we held with Agincourt and brought up the letter they sent to the Board to sign. He said he advised in an email the Board not sign any letter and went on to explain why. He advised the Board that indirectly ICC Capital had AIG in the portfolio but they were well diversified so it only hurt a little. Mr. Welker stated what really drove this market was deleveraging. He said we did not have any leverage in our portfolio so we were not exposed to that. Mr. Welker said eventually we do want to talk about further diversification and finished by asking if there were any questions. Trustee Wagner asked if there was some particular purpose to having this meeting other than the market situation, to which Mike Welker stated he was already scheduled here for a Police Officers' & Firefighters' Pension Board Meeting and just wanted to get this report to the Board now instead of waiting until the November Meeting. He said he also wanted to answer any of their questions face to face. Trustee Wagner asked if new money coming in to the fund was going to any particular asset class. Mike Welker responded that at the manager levels they are allocating it according to the percent they were allowed and went on to explain. In reference to the Agincourt letter, Trustee Grafton said she saw Mike Welker's response and said it was well done when he told them we would measure their worth to us by the way they got out of this situation. Mike Welker thanked Trustee Grafton and asked if there were any questions. He then continued going over the report. Mr. Welker spoke about what was driving the market. He said it was all about deleveraging and went on to explain. Trustee West asked if it meant there was a lot of margin out there, to which Mr. Welker said yes. Trustee West then asked if he thought there would be some restrictions imposed on the margins, to which Mike Welker answered yes and went on to explain. Mr. Welker continued going over the report. He moved on to the performance of the fund. He stated for the quarter our fund was down 6.44% but that the total fund benchmark was down 7.71%, so we outperformed the benchmark and it put us in the 23rd percentile. He said unfortunately the fund was down but said under the previous managers the fund would have probably been down around 7.2% so they preserved capital in the market much better. Mike Welker asked if there were any questions regarding the overall portfolio. General Employees Pension Board Special Session,October 21,2008 Page 3 of 3 Mr. Welker then moved on to the manager's performance. He said the two Equity Managers, ICC and Rockwood, on that part of the portfolio was down 6.48% for the quarter and went on to explain. Discussion ensued. Mr. Welker spoke about the International Index in the portfolio and said he believes Attorney Dehner finalized the side letter with Barings, so we will have both Voyageur and Barings on the International side. He continued speaking about the International Index and said as far as the International market was concerned procrastination on this has helped the fund. He moved on to Agincourt, explaining why they underperformed but said they still have a high quality portfolio and thinks it is a good fit for this plan going forward. Mr. Welker finished by going over what is referred to as the smoothing technique. Discussion ensued. Trustee Grafton said it appeared in the report that we started the year with 15 million but was now down to 14 million, to which Mike Welker confirmed. Brief discussion ensued. On motion made by Trustee Grafton, seconded by Trustee West, unanimously moved to accept the Performance Review for the Third Quarter of 2008 as presented by Bogdahn. Chairman Wagner thanked Mike Welker. The Board moved on to the next item on the agenda. AGENDA ITEM III. OTHER BUSINESS A. Payment of Invoices Invoices were included in the packet for the Board to approve. Trustee Grafton asked if the bills had been reviewed carefully. After a brief discussion Mike Welker was asked to look at the invoices for ICC Capital and Agincourt. Mr. Welker stated the invoices were correct based on the agreements. Brief discussion ensued. On motion made by Trustee Hendrix, seconded by Trustee Grafton, unanimously RESOLVED that the bills and other charges and fees be and are hereby approved for payment as presented. B. Meeting dates for next year The 2009 meeting dates were provided to the Board by Attorney Dehner's office. After a brief discussion and review of the dates presented, on motion made by Trustee Hendrix, seconded by Trustee Grafton, unanimously RESOLVED to approve the 2009 Quarterly Meeting dates of the General Employees' Pension Board as presented by Attorney Dehner (February 18, 2009, May 13, 2009,August 5, 2009 and November 4, 2009 at 10:00 a.m.) AGENDA ITEM IV. ADJOURN There being no other business, the meeting was adjourned at 1:21 p.m. Respectfully submitted by A r ved b : 6,5 Debbie Bertling — HR Analyst Russell B. Wagner, hairman