HomeMy WebLinkAbout11-17-1998 Minutes MINUTES OF THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT
TRUST FUND MEETING HELD NOVEMBER 17, 1999
CALL TO ORDER
Chairman Dabbs called the regular meeting to order at 10:40 a.m. in the Commission Chambers
conference room, and upon calling the roll, declared a quorum present.
Present: Chairman Dabbs, Trustees Carter, Grafton and Oliver. Also present were Attorney
Denner, Actuary Foster, and STI Client Service Officer Philip Senderowitz.
Absent: Trustee Murphy.
APPROVAL OF GENERAL EMPLOYEES'RETIREMENT TRUST FUND MINUTES OF AUGUST 13,
1998 AND AUGUST 20, 1998.
Trustee Carter, seconded by Trustee Oliver, moved to approve the Minutes of the August 13,
1998, and August 20, 1998 Meetings as presented. Motion carried 4-0. Trustee Murphy was not
present.
REPORTS
MONEY MANAGER
Mr. Senderowitz reviewed the contents of the General Employee Investment Performance
Report for the quarter ending September 30, 1998, reporting a portfolio value on that date of
$4,437,405.90 and a return for the quarter of-4.75% with the funds allocated 57.64% in Equity
Assets, 41.71% in Fixed Assets, and .65% in Cash Equivalent. The report indicated a 7.69%
return for the past 12 months and 16.50% from inception to date.
Mr. Senderowitz said that much of the losses encountered during the quarter have been
recovered. He advised that he was under the mistaken impression that the Investment Policy
called for up to 60% of cost in equities but it is 50%. He asked for direction, since either he
needed to get back into compliance, or this Board could adopt a policy that would make him be
in compliance. He pointed out that the Ordinance permits 60%, but the Investment Policy does
not.
Mr. Dehner distributed a revised Investment Policy Statement, which included the changes
authorized by this Board in the August meeting, i.e. allowing up to 20% of the equity portfolio
not to meet the top three ranking criteria and to provide a restriction of the combination of the
international equity not to exceed 20%at cost of the allowable corporate equity securities limit.
Mr. Foster advised that it would be possible to minimize the effects of adjusting by going to
55%; however, if the comfort level for this Board was 50%, that would be in line with the
position taken by many other boards. Discussion ensued.
Trustee Grafton, seconded by Trustee Oliver, moved to reconfirm the Investment Policy
Statement and direct the money manager to bring the allocation into compliance in a prudent
manner with the Policy. Motion carried 3-1 with Chairman Dabbs voting no. Trustee Murphy
City of Ocoee General Employees' Retirement Trust Fund Meeting
tkiw November 17, 1998
was not present.
Mr. Dehner asked if this Board wished to place a limit at market price as well as at cost.
Consensus was reached to leave it as it was.
Mr. Senderowitz announced that there had been a change in management in high grade equity
funds. It is once again managed by Elliot Furney, who is also managing limited cap funds.
PERFORMANCE MONITOR
Mr. Foster reviewed the Performance Monitor Report for the period ending September 30,
1998, and said the numbers in the STI report are the same as those in his report. He said the fund
has $700,000.00 more than needed to meet their expectations. He said the fund at 7.69% did not
meet actuarial assumption (8%) for the year, but that STI was doing an outstanding job of
managing the funds.
Mr. Foster noted that a correction should be made on page 16 of the report because the 60%of
Fund invested in stocks (Cost Value Basis) should be 50%.
ACTUARY REPORT
Mr. Foster reported that in preparing the individual reports for this year, they discovered that the
reports prepared for 1997 had an error in the calculation. He said it appeared that in changing the
computer program to include the 2.5% multiplier, the program was also modified only to pick up
the current year's salary instead of a five-year average. This caused the reports to have an
overstated figure, so he provided replacement reports to be distributed to all employees. (Trustee
Grafton promised to distribute Mr. Foster's telephone number with the reports so that he could
respond to employees' questions about the lower figure.)
Mr. Foster advised that the Actuary Report presented the funding requirement for the City for
the year following the report for budgetary purposes. He noted that the City has paid more than
the amount projected each year, and Trustee Carter said that was because the Finance
Department paid a percentage of the salaries paid rather than the amount stated in the Actuary
Report in order to be sure the new employees are covered. Mr. Foster also reported a four-year
average return of 14.15% after the money manager, custodian and monitor fees are deducted.
Immediately prior to adjourning the meeting, it was noted that the motion to approve and
accept the Actuarial Report had not yet been made, so it was done at that time, but will be
included in the minutes here.
Trustee Oliver, seconded by Chairman Dabbs,moved to approve and accept the Actuarial
Report as presented. Motion carried 4-0. Trustee Murphy was not present.
OTHER BUSINESS
2
City of Ocoee General Employees' Retirement Trust Fund Meeting
November 17, 1998
AUTHORIZE/RATIFY PAYMENT OF BILLS AND TERMINATED EMPLOYEES' CONTRIBUTIONS
RETURNED.
Secretary Grafton reported that in addition to the bills included in the packet, a bill just
submitted by Foster and Foster in the amount of$5,000.00 should be considered, making the list
of bills and returns of contributions to be ratified as follows:
Christiansen& Dehner June 23, 1998 $ 90.00
August 31, 1998 691.00
September 22, 1998 90.00 $ 871.50
Foster and Foster, Inc.August 17, 1998 $1,150.00
October 30, 198 5,000.00 $6,150.00
FPPTA membership renewal $ 200.00
SunTrust for custodial services $8,320.14.
Registration for trustee School October 5-7, 1998,
for Dabbs, Grafton, and Oliver $ 675.00
(Hurricane Georges prevented the Trustees from attending Trustee School scheduled for October 5-7
and the expense checks for travel(3x$197.30=$591.90),food(3x$165.00=$496.50),and lodging
(3x3x$115.00=$1,035.00)have been returned to STI with the exception of this check to FPPTA,
which they will transfer to the school scheduled for January 18-20, 1999,at Indian River Plantation,
Hutchinson Island.)
Return of Contributions
1. Theresa T. Adams - (October 6, 1993-May 8, 1998) $5,016.97
2. Deborah Mixon- (February 1, 1998 -July 13, 1998) $ 591.31
Trustee Oliver, seconded by Trustee Carter, moved to approve and ratify the payment of the
bills and returns of contributions as enumerated in the memorandum dated November 13, 1998
and listed above. Motion carried 4-0.
APPOINTMENT OF FIFTH TRUSTEE
Chairman Dabbs, seconded by Trustee Carter, moved to reappoint Trustee Oliver to a new
term as Trustee. Motion carried 4-0. Mr. Denner noted for the record that Mrs. Oliver's
reappointment should be submitted to the City Commission to complete the appointment.
DISCUSSION/APPROVAL OF DISABILITY PROCEDURES AND SURVEILLANCE(RULES 16 & 17).
Mr. Dehner reviewed the proposed procedures he had distributed earlier and said, if the
procedures are adopted, he recommended (1) setting a date for review of all cases, (2) if a person
has recovered enough to return to some work, (determining whether a job is available) and (3)
sending that person, with a job description, for a medical check up to learn if he/she is able to
return to work.
Trustee Grafton, seconded by Trustee Oliver, moved to adopt the Disability Review
3
City of Ocoee General Employees' Retirement Trust Fund Meeting
November 17, 1998
Procedures and forms as presented and to review the disability benefit claims at the spring
meeting scheduled in May each year. Motion carried 4-0.
Mr. Dehner explained the surveillance procedure (Rule 17). Chairman Dabbs, seconded by
Trustee Oliver, moved to adopt the Surveillance Procedure as presented. Motion carried 4-0.
RECESS 11:50 A.M. TO 12:00 NOON
DISCUSSION/APPROVAL OF AMENDMENTS TO OPERATING RULES AND PROCEDURES.
In the review of the Operating Rules and Procedures:
• Trustee Carter noted that any reference to Personnel Department should be changed to
Human Resources, because the City has changed the name of that department officially.
• Trustee Grafton asked that chairperson and vice chairperson be changed to chairman and
vice chairman.
• Trustee Grafton raised a question(on page 4)regarding the timing of the appointment of the
fifth trustee by the other four seated trustees, because the term expires September 30, and this
board does not meet until November. After discussion, the following was agreed upon: The
fifth trustee will be chosen for a two year term every other year at the meeting next preceding
September 1'
• Chairman Dabbs asked that the last line on page 3 (regarding the elections procedure) be
changed to ...shall be sealed at that time and retained in a secure place by Human
Resources...
• Chairman Dabbs asked that the requirement on page 7 to review the rules and regulations
be changed to every other year.
Although no vote was taken on any of the above items, there was consensus to make the changes
as noted. Chairman Dabbs directed Mr. Denner to incorporate the changes as determined above
into the Operating Rules and Procedures. Mr. Dehner said he would, and the document would
be ready for adoption at the next meeting. Such adoption would pave the way for the changes to
the Selected Provisions document.
Mr. Dehner asked Mr. Senderowitz for the letter regarding Y2K compliance. He said SunTrust,
although not finished with the process, was on schedule, and he would send the letter.
Trustee Grafton addressed the question of the expiration of the contract with Foster and Foster,
Inc., since the fee guarantee was effective until August 1998. Mr. Foster said he would be
happy to do another three-year fee guarantee at $4,500.00, with hourly rate for special projects,
just as before. He said that at some time in the future, he would like to talk about being paid for
the expenses incurred as Monitor.
Trustee Grafton, seconded by Trustee Oliver, moved to renew the actuarial contract for three
4
City of Ocoee General Employees' Retirement Trust Fund Meeting
November 17, 1998
years with Foster and Foster, Inc. with the same terms as before. Motion carried 4-0.
DISCUSSION/APPROVAL OF AMENDMENTS TO SUMMARY PLAN DESCRIPTION.
The Summary Plan Description will be reviewed at the February meeting.
Trustee Grafton announced that Trustee Murphy had advised her that he may have to resign due
to time constraints resulting from his appointment as chief of staff for Orange County Chairman
Martinez.
DISCUSS/SET 1999 MEETING DATES.
The dates for the 1999 meeting were set as proposed by the Police Officers'/Firefighters Pension
Board as follows: February 18, May 13, August 11, and November 18 at 10:00 a.m.
ATTORNEY COMMENTS
Mr. Dehner had no comments.
DISRIBUTION OF MEMBERSHIP CERTIFICATES
Several employees had come in the room to pick up membership certificates for their
departments during the meeting. The rest were left to be distributed after the meeting.
tinw QUESTIONS/COMMENTS FROM AUDIENCE
No one was present to ask questions or make comments.
Attendance at the Institute in January was discussed, and all four members present said they
wished to attend. Secretary Grafton was authorized to make arrangements.
ADJOURNMENT
The meeting adjourned at 12:52 p.m.
•
Je 7 Grafton, Secre . if
5