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Home My WebLink About02-07-2007 Joint Meeting Minutes Minutes of the Joint Regular Meeting of the CITY OF OCOEE GENERAL EMPLOYEES’ PENSION BOARD AND POLICE OFFICERS’/FIREFIGHTERS’ PENSION BOARD Held on February 7, 2007 At 150 N. Lakeshore Drive Ocoee, FL 34761 AGENDA ITEM I. CALL TO ORDER – Chairman Wagner & Chairman Brown A. Chairman Russ Wagner & Chairman Brown called the joint meeting to order at 9:09 a.m. in the Commission Chambers in City Hall. The roll for the General Employees’ Pension Board was called and a quorum declared present. Present were Trustees Russ Wagner, Tom Hendrix, Jean Grafton, Terry Reed, and Wendy West. The roll for the Police Officers’/Firefighters’ Pension Board was called and a quorum was declared present once Trustee Strickland arrived (Trustee Ken Strickland arrived at 9:20 a.m.). Present were Trustees Charlie Brown, James Coschignano, Ken Strickland and Colby Julian. Absent was Trustee Nora Gledich. Also present were H. Lee Dehner, Attorney; Jim Carnicella, Human Resources Director/Plan Administrator; Brad Heinrichs, Consulting Actuary, Foster & Foster; Larry Cole, Monitor, Merrill Lynch; Mike Sebesta, Money Manager, Trusco Capital Management; and Dianne Garcia, Relationship Manager, SunTrust. B. Approval of Minutes from Regular Session dated November 8, 2006 Chairman Wagner called for review of the Minutes as stated. There being no additions or on motion made by Trustee Grafton, seconded by Trustee Hendrix, corrections, it was, unanimously RESOLVED that the Minutes of the Regular Session of the Board of Trustees of the General Employees’ Pension Board of November 8, 2006, be and are hereby approved. AGENDA ITEM II. NEW BUSINESS A. Money Managers Report – Michael Sebesta, Managing Director, Trusco Capital Michael Sebesta distributed Trusco Capital Management, Inc. 2006 Fourth Quarterly Report. He reviewed the report stating both the General Employees’ Pension Plan and the Police Officers’/Firefighters’ Pension Plan’s total equity are both up. Trustee Wagner had a few questions regarding the Investment Performance Comparisons referring to the Small Cap Growth Fund in which Michael clarified. The overall percentage for the FYTD quarter is 4.95%. There were no further questions. General Employees’ Pension Board And Police Officers’/Firefighters’ Pension Board Joint Quarterly Meeting, February 7, 2007 Page 2 of 5 B. Investment Consultant Report – Larry Cole, Merrill Lynch Mr. Cole went over the investment consultant reports that were handed out to the Board and st stated we have a pretty good start for the 2007 1 Quarter. He stated that the General Employees’ Pension Plan was up to $14,272,000 and the Police Officers’/Firefighters’ Pension Plan was up to $18,566,000. Trustee Wagner had a few questions regarding small cap and mid cap, clarification provided by Larry. Lee Dehner asked Larry to address the SCC settlement. Larry said it was last year and he was unfamiliar with the settlement. Larry asked if we had any documents and Plan Administrator Carnicella stated it was in the packet. Trustee BrownMotion to requested the Police Officers’/Firefighters’ minutes to be reviewed. approve was made by Trustee Strickland and seconded by Trustee Coschignano. Unanimously approved as presented. C.Money Manager Presentations/Introduction – Larry Cole, Merrill Lynch Mr. Larry Cole introduced to the Board the following Money Manager Firms: Mr. Ray Pinelli with Fred Alger and Company Incorporated, Ms. Ann Bradshaw with Evergreen Investments Institutional and Mr. David Kania with Transamerica Investment Management. Each Representative made an individual presentation introducing their company, firm overview, equity philosophy and process, concluded with performance and characteristics. After each presentation, Trustee Wagner asked if there were any questions, questions were presented and answered by the Representative. At the conclusion of the presentations, Trustee Wagner thanked the Firms for their presentations and would be in contact with them. Larry Cole advised the Board that the Firm Bernstein had dropped out and OFI had changed their minimums so no longer qualified. D.Discussion/Action/Alternatives and possible RFQ – H. Lee Dehner, Esq. a.Investment Consultant The Police Officers’/Firefighters’ and General Employees’ Pension Boards considered whether they would request proposals from Investment Consultants. Lee Dehner began by explaining to the Board the RFQ process. The discussion was then led by Trustee Wagner, as he inquired from each Board member if they thought it may be an appropriate time to put out an RFQ for other investment consultants to make presentations as to their investment strategies etc. as it compares with Merrill Lynch. After a lengthy discussion, the Police/Fire Board Members each stated they were satisfied with the services of Merrill Lynch and specifically Larry Cole. No action necessary at this time. Trustee Wagner asked the General Employees’ Board Members if there was a motion to proceed with an RFQ. The General Employees Board failed to create a motion and/or a second to approve an RFQ for Investment Consultants to respond. Trustee Wagner asked the Board if they wanted to make any decisions on the presentations. Plan Administrator Carnicella recommended they do. After a brief discussion and overview of the presentations Trustee Wagner recommended going with Transamerica Investment Management and Alger and Company Incorporated for the General Employees’ Pension. General Employees’ Pension Board And Police Officers’/Firefighters’ Pension Board Joint Quarterly Meeting, February 7, 2007 Page 3 of 5 On motion made by Trustee Reed, seconded by Trustee West, it was unanimously RESOLVED that the new Money Mangers are Transamerica and Alger. Attorney Dehner stated this would be contingent upon successful contract negotiations. Trustee Brown recommends Evergreen Investments and Alger and Company Incorporated for the Police Officers’/Firefighters’ Pension. On motion made by Trustee Coschignano, seconded by Trustee Julian, it was unanimously RESOLVED that the new Money Mangers are Evergreen and Transamerica. Attorney Dehner stated this would be contingent upon successful contract negotiations. Larry Cole recommends one million for each plan. He will draft a sample letter to Trusco Capital advising them of the change. He will oversee the transition. Diane Garcia, Relationship Manager with SunTrust, addressed the Board regarding fee structure. Attorney Dehner asked Diane if she will continue to combine the two plans as far as fees. Diane said yes. Attorney Dehner said it should be done by motion to accept fees. On motion made by General Employees’ Trustee Grafton, seconded by Trustee Reed, it was unanimously RESOLVED to accept fees. On motion made by Police Officers’/Firefighters’ Trustee Julian, seconded by Trustee Strickland, it was unanimously RESOLVED to accept fees. b.Attorney c.Audit of the Pension Plan Subjects were not discussed. AGENDA ITEM III. OLD BUSINESS A.Summary regarding Daniel Dingman – Jim Carnicella, Plan Administrator Plan Administrator Carnicella spoke to the Board regarding Fire Inspector Daniel Dingman’s situation whether he remains in the General Pension or the Police/Fire Pension. He continued to state that he’s attempting to enter into an agreement with IAFF for Mr. Dingman to stay in the General Pension Fund. Attorney Dehner explained the heart of the issue regarding Fire Inspector duties should be under the Police/Fire Pension. Trustee Grafton asked for clarification since Mr. Dingman has contributed to both funds. Plan Administrator Carnicella deferred to Attorney Dehner who stated Brad Heinrichs, Consulting Actuary, can research and provide that information. B.Report on 3% Multiplier with 81% CAP – Jim Carnicella, Plan Administrator Subject not discussed. General Employees’ Pension Board And Police Officers’/Firefighters’ Pension Board Joint Quarterly Meeting, February 7, 2007 Page 4 of 5 C.Changes to the Pension Plan (i.e., elections, buy back, drop decision, windows) – Jim Carnicella, Plan Administrator Subject not discussed, moved to the next scheduled meeting. AGENDA ITEM IV. OTHER BUSINESS A.Payment of Invoices B.Reports and Correspondence – Jean Grafton, Trustee/Secretary Trustee Grafton advised the Board of two outstanding bills for Foster and Foster, one being the August 2006 invoice in the amount of $10,000 and the January 2007 invoice for both Boards. AGNEDA ITEM V. ATTORNEY COMMENTS – H. Lee Dehner, Esq. Attorney Dehner presented Legislative updates pertaining to both Boards. He also advised and explained the new DROP option available to the General Employees’ Pension called PLOP (partial lump sum option). The Board should think about it as it would have to be amended in our plan. A few questions were asked by the Board in which Brad Heinrichs, Consulting Actuary, clarified. Attorney Dehner approached the Board regarding his fees advising them he has not increased his fees since 2004. He advised the Board that they need to make a motion to On motion made by Trustee Coschignano, seconded by Trustee approve his fee increase. Julian, it was unanimously RESOLVED that the Police Officers’/Firefighters’ Pension Board accepted Attorney Dehner’s fee increase as presented. On motion made by Trustee Grafton, seconded by Trustee Reed, it was unanimously RESOLVED that the General Employees’ Pension Board accepted Attorney Dehner’s fee increase as presented. Trustee Brown asked if there are any comments, with no comments made he announced the next meeting of the Police Officers’/Firefighters’ Pension Board is scheduled for May 9, 2007 at 1:00 p.m. There being no other Police Officers’/Firefighters’ Pension business, they adjourned at 12:28 p.m. Attorney Dehner brought back to the Board the discussion regarding the 3% multiplier with 81% Cap, stating he didn’t get direction from the Board. Discussion ensued. Plan Administrator Carnicella advised that the City Commission had already approved the Ordinance. Further discussion was presented by Attorney Dehner and Trustee Wagner. Trustee Wagner motion the Board direct Attorney Dehner to make ordinance to incorporate the 81% Cap which was passed General Employees’ Pension Board And Police Officers’/Firefighters’ Pension Board Joint Quarterly Meeting, February 7, 2007 Page 5 of 5 On motion made by Trustee Grafton, seconded by Trustee West, by the City Commission. it was unanimously RESOLVED for Attorney Dehner to draft ordinance regarding the 3% multiplier with the 81% Cap. Trustee Grafton stated Attorney Dehner will need a copy of the Commission Meeting minutes. AGENDA ITEM VI. PLAN ADMINISTRATOR COMMENTS – Jim Carnicella None. AGENDA ITEM VII. COMMENTS FROM TRUSTEES Trustee Grafton reported some errors made on the report and have been corrected. Jean would like to add another line item, Audit of the Pension Plan, to the next meeting. AGNEDA ITEM VIII. SET AGENDA FOR NEXT MEETING Next meeting of the General Employees’ Pension Board is scheduled for May 9, 2007 at 10:00 a.m. AGENDA ITEM IX. ADJOURN There being no other business, the meeting was adjourned at 12:49 p.m. Respectfully submitted by Approved by: Debbie McDonald ______________________________ HR Analyst Russell Wagner, Chairman General Employees’ Pension Board Approved by: ______________________________ Charlie Brown, Chairman Police Officers’/Firefighters’ Pension Board