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Home My WebLink About02-18-1999 Minutes MINUTES OF THE CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT tittre TRUST FUND MEETING HELD FEBRUARY 18, 1999 CALL TO ORDER Chairman Dabbs called the regular meeting to order at 10:30 a.m. in the Commission Chambers Conference Room and, upon calling the roll, declared a quorum present. He announced that Trustee Dan Murphy had submitted his resignation shortly after the last meeting and that the City Commission had appointed former mayor Tom Ison to serve as trustee in his place, and he welcomed Mr. Ison aboard. Present: Chairman Lester Dabbs, Trustees Donald Carter, Jean Grafton, Tom Ison, and Joyce Oliver(arrived at 11:00). Also present were Board Attorney Lee Denner, Actuary Patrick Donlan, STI Administrative Officer Dianne Garcia, and STI Trust Investment Officer Tim Nash. Absent: None APPROVAL OF MINUTES: (1) GENERAL EMPLOYEES'RETIREMENT TRUST FUND MEETING OF NOVEMBER 17, 1998,AND(2) BRIEF ON INFORMAL JOINT MEETING WITH POLICE/FIRE TRUSTEES, CITY MANAGER AND CONCERNED MEMBERS RE: EMPLOYEE CERTIFICATES. After a brief discussion regarding the followup on the requests made by the employees during the informal joint meeting, Trustee Carter, seconded by Trustee Ison, moved to approve the minutes as presented. Motion carried 4-0. Trustee Oliver was not present.) REPORTS Money Manager Mr. Tim Nash, with STI Capital, reported that Mr. Senderowitz was still the fund's investment officer but that he was unable to be present due to illness. Mr. Nash reviewed the contents of the General Employee Investment Performance Report for the quarter ending December 31, 1998, reporting a portfolio value of$5,114,313.78 and a return of 11.52% for the quarter with the funds allocated 56.67% in Equity Assets, 43.13% in Fixed Assets, and .20% in Cash Equivalent. The report indicated a 17.38%return for the past 12 months and 18.58% from inception to date. Actuary/Performance Monitor Mr. Patrick Donlan,representing Foster and Foster, distributed a letter advising that his firm would no longer be providing performance monitoring services effective the end of the next quarter. Trustee Grafton said that in her conversation with Mr. Foster earlier, he had said that he would provide a list of performance monitors, and that Mr. Denner could guide us in the Request for Proposals (RFP) for this board. Later in the meeting, the timing was set for the RFPs to be requested and reviewed during April so that a new Performance Monitor would be in place for the following quarter. Mr. Donlan reviewed the Investment Performance Report for the period ending December 31, 1998. He said the numbers in the STI report were basically the same as in his report, and that the City of Ocoee General Employees' Retirement Trust Fund Meeting February 18, 1999 average annual rate of return for this period was 18.7%, with a ranking in the 15th percentile of the Cadence Universe of investment managers for the one year period. Mr. Donlan noted that a correction should be made on item 2 on page 16 of the report because the 60%of Fund invested in stocks (Cost Value Basis) should be 50% instead of 60%. (This change was also noted by Mr. Foster in the last meeting.) OTHER BUSINESS Authorize/Ratify Payment of Bills and Terminated Employees' Contributions Returned Secretary Grafton reported the following for the record: Bills/Invoices received and paid: Christiansen & Dehner November 30, 1998 $1,265.13 (courtesy credit) December 30, 1998 - (180.00) January 31, 1999 601.92 $1,687.05 SunTrust- quarter ending December 31, 1998 $9,589.34 Expenses for Trustee School January 17-20, 1999 for Carter, Dabbs, Grafton, Oliver: FPPTA-Registration $225 (Carter) $ 225.00 (Registration for other 3 trustees from canceled Key West conference was brought forward to this session by FPPTA.) Indian River Plantation Marriott-4 x 3 days each @ $110 per day $1,320.00 Food/Gratuities for Sunday p.m. -Wednesday p.m. 4 @ $103.60 $ 414.40 Travel Donald Carter 300 miles @ $.325 per mile=$97.50 0 2 tolls @ $7.60 each = 15.20 $ 112.70 Travel Lester Dabbs (chauffeured Grafton and Oliver) 300 miles @ $ .325 per mile=$97.50 2 tolls @ $7.60 each 15.20 less cash left over from June conference -$50.00 $ 62.70 Employees who have terminated and requested a return of their contributions: 1. Fred C. Gardner- (February 4, 1998-November 6, 1998) $3,191.53 2. James C. Gunn - (August 1, 1996 -July 8, 1997) $ 481.35 3. Donald Householder-(February 25, 1985-January 13, 1999) $9,726.12 4. Noel Kerkhoff- (March 1, 1996 - December 2, 1998) $3,945.18 5. Kathleen Weatherly-(June 15, 1998 -January 8, 1999) $ 928.41 2 City of Ocoee General Employees' Retirement Trust Fund Meeting February 18, 1999 No employees have retired during this period. Secretary Grafton, seconded by Trustee Ison, moved to approve and ratify payment of the bills and returns of contributions as enumerated in the memorandum dated February 16, 1999 and listed above. Motion carried 4-0. Trustee Oliver was not present.) Secretary Grafton continued her report as follows: • Trustee Dan Murphy resigned effective immediately. • City Commission appointed former mayor Tom Ison to complete Mr. Murphy's two-year term. • City Commission reappointed Joyce Oliver for another two-year term. • The State of Florida Division of Retirement acknowledged receipt of the October 1, 1998 Actuarial Valuation Report. • The City Finance Department corrected with SunTrust a sum that had been credited to Police/Fire Pension Fund that belonged in General Employees' Pension Fund. • We received STI Capital Management Y2K project status. Attorney Dehner advised that he would prepare a Y2K letter for this board to send to all consultants for a response by June 1, 1999 and to the City as well. Adoption of Amendments to Operating Rules and Procedures Mr. Dehner reviewed the changes he had made in the Operating Rules and Regulations in accordance with the Board's discussion at the last meeting and said that, once approved, he would extract sections for the Selected Provisions. The changes were: • references to Personnel to Human Resources • chairperson to chairman, vice chairperson to vice chairman • changed the date of the 5th trustee appointment to the meeting next preceding September 1 • corrected some scrivener errors and changed the semantics in several places Trustee Grafton, seconded by Trustee Ison, moved to adopt the draft of the Operating Rules and Procedures as amended as presented by Mr. Denner. Motion carried 4-0 Discussion/Review of Amendments to Summary Plan Description Mr. Dehner distributed a draft working copy of the Summary Plan Description, noting that he had made the substantive changes already to include the change in the benefit rate from 2%to 2.5% and had added a section(on page 4 - H (2) for the "Buy Back"of time lost due to the Family and Medical Leave Act, etc. Further changes included bringing the list of those eligible for plan membership to reflect the current job titles; i.e.,Persenfiel-and Human RelatieEks Resources Director, Chief Building and Zoning Official, _ -•'•: . ' _ - _ '_: :' _- : ; , d changing the employee contributions from 5%to 7.4%. Mr. Denner said that he would take care of the changes and provide a complete set, including the current list of board members and the 3 City of Ocoee General Employees' Retirement Trust Fund Meeting February 18, 1999 appropriate report from Foster and Foster attached for Chairman Dabbs to execute for distribution through the Human Resources Department. Trustee Grafton, seconded by Trustee Ison,moved to adopt the Summary Plan Description as amended. Motion carried 4-0. Discussion on DROP Plan Mr. Dehner reviewed the pros and cons of this Plan which provides that, for an employee eligible to retire, the monthly benefits (based on the average salary, benefit rate at that time, and years of service) for that employee be calculated and irrevocably frozen at that time and credited to the employee's DROP account to be invested. The employee continues to work for a contracted period of time (not longer than five years), but contributions to the pension plan are no longer made by the employer or employee on the employee's behalf. Rather,the entire monthly benefit is invested and the earnings credited to the employees account with the total benefits plus the earnings to be withdrawn in a lump sum upon completion of the agreed upon length of service. Mr. Dehner described the downsides of the plan; i.e., (1) The employer may not wish to encourage older employees to stay on, (2) Well into the contracted period the employee may decide that a bad decision had been made due to not receiving the additional benefits of pay raises and/or improvements to the plan. During a lengthy discussion Mr. Dehner described several options for putting the plan together and said that he would send a copy of an article dealing with the DROP Plan and copies of several plans for this Board to review. ATTORNEY COMMENTS Mr. Dehner advised that he had provided the Investment Policy Statement for execution and distributed one original to STI, one to the Board and one for his file. Mr. Dehner presented for execution the contract for actuarial services with Foster& Foster(as directed at the last meeting) and handed it to Mr. Donlan to return to their office. ADJOURNMENT The meeting adjourned at 11:50 a.m. Jean Grafton, Secretary 4