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Home My WebLink About01-30-2019 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT FUND BOARD MEETING — January 30, 2019 Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 1:18 p.m. in the Commission Chambers of City Hall. PRESENT: Chairman Charles Brown, William Maxwell, Joe Moy, Trey Littlefield and Bryan Pace ABSENT and EXCUSED: Others present: Tim Nash of AndCo Consulting, Lee Dehner Fund Attorney, Fund Actuary Doug Lozen of Foster & Foster and Fund Administrator Pete Prior. CALL TO ORDER — Roll call and determination of quorum The roll was called and a quorum declared present. APPROVAL OF MINUTES Regular Meeting dated 11/7/18 The Chairman asked the board if there were any corrections, deletions, or additions to the minutes. Hearing and seeing none Trustee Moy moved to approve the minutes and Trustee Littlefield seconded the motion and the motion passed. Rodriguez Disability Continuance 11/19/18 The Chairman asked the board to make a motion regarding the special meeting minutes for applicant Rodriguez. Trustee Maxwell moved to approve the minutes as submitted and Trustee Littlefield seconded the motion and the motion passed. PUBLIC COMMENTS: QUARTERLY INVESTMENT UPDATE Mr. Nash addressed the board providing a brief report on his firm noting that the owner of the company, Mike Welker, instituted a new policy of granting ownership of the firm to members of the company. Mr. Nash noted that there are currently 5 partners in the firm all located in the Orlando headquarters. He also noted that a director of operations left their firm. Mr. Nash provided a brief report on the performance of the fund noting the quarter was down along with all the indices as indicated in the report. The good news is the plan rebounded earning 1.9 million dollars on January 29, 2019 or 3.94%. Mr. Nash reported on the returns noting that the total fund was down -8.72% vs. the fund policy of -7.60. The Equity fund was down -13.94% vs. the policy of -13.56%. The Domestic Equity was down -14.12% vs. the IM US Core index of -14.30%; GAMCO was down -13.71% vs. the all cap value index of -12.24%; Vanguard was down -14.26% in line with CRSP total stock market index; Alger and Mar Vista were down -15.86% and -12.50 respectively vs. the Russell 1000 index of -15.89%; American Funds Europacific was down -12.59% vs. the International Page 1 of 4 Large Cap index of -11.41%. The total Fixed income returned 1.19% vs. the policy of 1.64%. Garcia Hamilton returned 1.09% vs. the Aggregate index of 1.64%; Templeton Fund returned 1.75% in line with the Global Bond index. American Realty returned 1.94% vs. the NREIF ODCE index of 1.62%. Mr. Nash reported on the Compliance checklist noting that the total Fund and Equity compliance were mostly no and the Fixed income compliance was all yes. One of the trustee asked how Sawgrass has performed since they terminated them. Mr. Nash stated that they actually did well only losing half of what the market lost and posting a positive 3 percent gain for the year. NEW BUSINESS Presentation of 10-1-18 Valuation Mr. Lozen provided the board with a copy of the valuation. The Plan experience was favorable overall on the basis of the plan's actuarial assumptions. The primary source of favorable experience was an average salary increase of 1.72% which fell short of the 5.43% assumption. This gain was offset in part by a loss associated with an investment return of 6.91 % which fell short of the 7.90% assumption. There were no plan changes for this valuation period. The investment return assumption has been reduced from 7.90% to 7.85%, net of investment -related expenses. The Total Required Contribution $3,335,609; the City and State Requirement is $2,718,618. The actual contributions made were Members $616,991; City $2,265,107 and State $453,511 totaling the required contribution of $3,335,609. Mr. Lozen noted that due to the performance of the fund, the City contributions appear to be lowering over time. Mr. Lozen noted that the City made an additional $55,000 contribution to the fund. The funding status is quite high which is a good thing (89.8%) up from 86% the previous year. Mr. Lozen noted that he is not making any recommendations as the plan is doing very well but sometime next year an update to the Experience Study regarding the assumptions should be performed. Mr. Lozen noted that the City contribution will be reduced by over 1 million dollars. The Chairman commented that the union has a request for studies to be made but the board should move it to allow the actuary to work for the union and be responsible for payment to Foster & Foster. Trustee Pace moved to allow the fire and police unions to use the Fund actuary to perform studies on behalf of the Union and the cost can be split between the PBA and the IAFF for this collective bargaining period. Trustee Moy seconded the motion for discussion. The motion passed 4-1 with Trustee Maxwell declining. Trustee Moy moved to approve the 2018 valuation. Trustee Pace seconded the motion and the motion passed. Trustee Pace moved to approve the expected rate of return of 7.85% this year, next year and future years. Trustee Moy seconded the motion and the motion passed. Detail of administrative Expenses The Administrator reported that the Fund was over budget. This was due to the fact that there were no audit fees charged in 2017 and all audit fees were charged in 2018. It was determined that a special meeting should be scheduled to amend the 2018 fiscal year budget. Page 2 of 4 Fiduciary Liability Renewal The Administrator noted that the has the application needs to be signed to obtain a quote for the renewal. UNFINISHED BUSINESS There was no unfinished business at this meeting. CONSENT AGENDA For Approval: Warrant #175 Benefits USA, Inc. (Flat Monthly Fee for February 2019; Inv #02-2019 dated 2/1/19)$2,100.00 Fiduciary Trust (Q4-18 Custodian Fee-GAMCO; Invoice dated 1/17/19) $1,110.58 Fiduciary Trust (Q4-18 Custodian Fee-GHA Invoice dated 1/17/19) $1,431.94 Fiduciary Trust (Q4-18 Custodian Fee -Mar Vista Invoice datedl/17/19) $601.84 Fiduciary Trust (Q4-18 Custodian Fee -R&D Invoice dated 1/17/19) $2,633.44 FPPTA (Wall Street Registration for Joe Moy and Bryan Pace) $1,600.00 Garcia Hamilton (Q4-18 Mgmt Fee -Invoice #30006 dated 1/7/19) $7,181.40 Joe Moy (Hotel Reimbursement for FPPTA Wall Street) $1,503.51 Joe Moy (Airfare Reimbursement for FPPTA Wall Street) $262.71 Total $18,425.32 For Ratification: Warrants #171-174 Christiansen & Dehner (Legal Fees -Invoice #32773 & 32774 dated 10/31/18) $176.80 Dean, Morgan ETAL (Legal Fees Re: S Rodriguez Inv #157767 dtd 10/3/18) $351.80 William Maxwell (Expenses Incurred at FPPTA 2018 Annual Conference) $450.24 Total $978.84 Benefits USA, Inc. (Flat Monthly fee for December 2018) $2,100.00 FPPTA (2019 Annual Membership Dues) $600.00 FPPTA (2018 Re -Certification Fee for: Brown, Maxwell, Moy & Pace) $120.00 Total $2,820.00 ATTORNEY REPORT Attorney Delmer reported on pending legislation noting that a new bill in on the table regarding the complete meeting packet that is provided to the Trustees must be sent to the City. In addition, there must be 2 hard copies of all the meeting material present at the meeting. The Attorney reported that if this legislation passes it will be effective in July. Attorney Delmer reminded the Trustees to make sure to complete their financial disclosure forms in a timely manner. CORRESPONDENCE No action was needed. COMMENTS FROM TRUSTEES Trustee Moy thanked the board for the well wishes and is glad to be back. Page 3 of 4 Next Regular Meeting date: May 1, 2019 at 1:00 pm. Adjournment: The meeting adjourned at 2:57 pm. Respectfully submitted Chairman Contact the City Clerk's Office to listen to an electronic copy of the complete minutes. Page 4 of 4