HomeMy WebLinkAbout05-06-2020 Minutes
CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES’ RETIREMENT TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, May 6, 2020at 10:00AM
Governor Ron DeSantis signed Executive Order 20-69 which suspends all statutes that require a quorum
to be present in person or require a local government body to meet at a specific public place. It also provides
that local government bodies may utilize communications media technology, such as telephonic and video
conferencing, as provided in section 120.54(5)(b)2, Florida Statutes. Under Executive Order 20-69, the
board meeting was heldvia video conference using Zoom.
TRUSTEES PRESENT:Gequita Cowan, Chair(via phone)
Robert Briggs, Vice Chair(via phone)
Stefanie Wilson, Secretary(via phone)
PatriciaGleason(via phone)
Jean Grafton(via phone)
TRUSTEES ABSENT:None
OTHERS PRESENT:Tim Nash, AndCo Consulting(via phone)
Pedro Herrera, Sugarman & Susskind(via phone)
Kim Kilgore, Foster & Foster(via phone)
1.Call to Order–GequitaCowancalled the meeting to order at 10:02AM.
2.Roll Call–As reflected above.
3.Public Comments–None
Approval of Minutes
4.
TheBoard voted to approve the minutes from theFebruary 5, 2020,quarterly meeting,upon motion
by RobertBriggs and second byJean Grafton;motion carried 5-0.
5.Consent Agenda
a.Warrants #71, #72,#73, #74and#75for ratification.
b.Quarterly fund activity report for January 30, 2020to April 29, 2020.
The Board voted to approve the consent agenda as presented,upon motion byJean Grafton and
second by Robert Briggs;motion carried 5-0.
–None.
6.New Business
–None.
7.Old Business
Reports (Attorney/Consultants)
8.
a.AndCo Consulting, Investment Consultant, Tim Nash
i.Quarterly Report as ofMarch31, 2020
1.Tim Nash reviewed ahandoutdetailing drawdownsof greater than 5%
sincetheindex’spre-crisis peak of the S&P 500 total return.
2.Tim reviewed ahandoutregarding the bear marketsandshowing how
many trading days of decline from peak-to-troughsince 2000.
3.Tim reviewed ahandout regarding the percentage of positive versus
negative rollingperiodreturns of the S&P 500 total return index.
4.Tim reviewed the market environment during the past quarter.
5.The asset allocation as of March 31, 2020 were Domestic Equity at 52.6%,
Domestic Fixed Income at 22.6%, Real Estate at 13.2%, International
Equity at 6.0%, Global Fixed income at 4.4% and Cash at 1.2%.
6.Tim commented the asset allocation needed aminor adjustment in fixed
income to bring them back intocompliancewith the IPS.
7.Tim reviewed the financial reconciliation for the past quarter with a
beginning total market balance of $43,083,441and ending market value
of $36,528,146.
8.The total fund gross returns for the quarter were -14.38%. Trailing returns
for 1, 3, and 5-year periods were -6.16%, 2.92%, and 3.76%,respectively.
Since inception (4/1/04), gross returns were 6.02%.
9.Tim reviewed the real estate investor strategiesduring the pandemic.
10.Tim reviewed each investment manager’s performance for the past
quarter.Robert Briggs asked about the performance of Templeton
investments. Tim commented thiswas not a good quarter to judge
individual investmentmanager’s performance.
11.Timstated the market value of the fund as of May 5, 2020 was
$38,987,384.
12.Tim advised the board they could expect a challenging market over the
next few quarters.
b.Sugarman&Susskind, Board Attorney, Pedro Herrera
i.Audio-VideoTeleconferencingProposed Administrative Policy
1.Pedro Herrera reviewed the proposed administrative policy regarding the
use of audio-video or telephone conferencing to conduct virtual public
meetingsper the Governor’s executive order20-69.
2.Pedro stated this policy would remain in effect until the Governor’s order
expiredor was revoked.
3.Pedro commentedhe would provide acopy of the policy with a revised
signature line that includedonly the Chairand not the whole board.
The Board voted to approve the proposed Audio-Video Administrative Policy as presentedupon
motion by Stefanie Wilsonand second byJean Grafton; motion carried 5-0.
ii.FFCRAand CARE Acts
1.Pedro reviewed the federal emergency relief packages that were recently
enacted;the Families First Coronavirus Response Act (FFCRA) andthe
Coronavirus Aid, Relief and Economic Security Act (CARES).
2.Pedro commented the FFCRA provided for employers to provide paid sick
leave for employees experiencing Coronavirusrelated illnesses.
3.Pedro stated the CARES Act allowed forcertain waivers of the 10%
penalty for early distributionstakenwithin the 2020 calendar year and
st
.Pedro furthercommented the taxation
wouldberetroactive to January 1
of a2020 distribution could be spread out over three years. Pedrostated
the suspension of the annual Required Minimum Distribution (RMD) was
not for governmental plans except for the two 457 plans during this
calendar year.
4.Pedroadvised the board if theywanted to enact any of the permissible
changesof the CARES Act, the standard procedures of an Ordinance
amendment would need to be done.
5.The boarddiscussed apossible amendment to the ordinancefor these
new laws. By consensus,the board agreed to not propose any ordinance
amendmentsat this time.
iii.Financial Disclosure Forms update
1.Pedro briefly reviewed the requirement to file the financial disclosure forms
and reminded the board they were due by July 1, 2020.Pedro commented
they should make sure to receiveconfirmation of receipt from the
Supervisor of Elections.
9.Staff Reports, Discussion, and Action
a.Foster & Foster, Kim Kilgore,Plan Administrator
i.FPPTA Annual conference
1.Kim Kilgorecommentedthe FPPTAconference had been rescheduled to
thth
through the 7in Orlando, Florida. Kim commentedanyone
October 4
attendingthe conference wouldreceive 10 continuing education credits.
2.Kim advised the board the FPPTA was hosting an online learning series
for membersthat will beginat the end of the month.
3.Pedro Herrera suggested the trustees wait to registerfor the conference
until they are closer to theevent date since there may be a delay in
receiving a refundof the registration fees in case the conference is
rescheduled again or cancelled.
ii.Member portal update
1.Kim advised the board that approximately half of their210 active members
have logged on to the member portal since it was rolled out last year. Kim
suggestedreaching out to the members who haveyetnot logged in.
2.Kim commentedover the past quarter approximately 90online portal
calculationswerecompleted bymembers.
3.Stefani Wilson asked how the newemployeesreceived logininformation.
Kim stated her office ran quarterly reportsthat identifynew employees and
welcome letterscontaining login instructions werethen sent to each
employee.
4.Stefani suggestedproviding new employeesahandout with information
for the member portal. Kimstated her office could generate a letter that
includes individuallogininstructions that could be providedat new
employee orientation meetings. Kim commented she would need the City
to provide employeenames ahead of timeand Stefani agreed to work with
her departmentto provide the needed information.
iii.Cybersecurity memo
1.Kim reviewed a memo prepared byCEOBrad Heinrichs that detailedthe
security measures taken by Foster & Foster to protect client data.
iv.Paperless meetings
1.Kim reviewed the OneDrivedocument storage application. Kim explained
each trusteewould receive login information to access all of the plan
documentsand meeting materials at any time.
2.By consensus the board agreed to try the OneDrivedocument storage
application. Kim stated she would send each of the trustees a link to
accessthe accountand set their passwords.
10.Trustees’ Reports, Discussion, and Action
a.Gequita Cowan would like the Operating Rules and Proceduresto be reviewedand
updated asneeded.
b.Gequitacommented the plan currently did not have a disability benefit and the board would
like to look at someoptionsfor providing that benefit to the membership.
c.Pedro Herrera stated he could show the board options that other plansprovided.
d.Stefani Wilson stated the City currently offered long-term and short-termdisability
insurance for employees to purchase.
e.Pedro commented he would contact the actuary about disability benefitsfor the plan.
f.Gequita stated the plan also did not have a Cost of Living Adjustment(COLA) and she
would like to see some of those optionsas well.
g.Gequitaasked if there would be a conflict of interest in providing benefit improvements
since four of the trustees on this board would benefit from them.Pedro stated there would
not be a conflict of interest for two reasons;the entire membership wouldreap thebenefit,
not just the trustees and the city councilis the entityadoptingthe amendments,not the
board.
h.Patricia Gleason commented she appreciates the COLA she receives on her pension
especially duringthesetimes
11.Adjournment – The meeting adjourned at 11:49AM.
12.Next Meeting – Wednesday, August 5, 2020at10:00AM, quarterly meeting.
Respectfully submitted by:Approved by:
____________________________________________________________
Kim Kilgore, Plan AdministratorGequita Cowan,Chair
Date Approved by the Pension Board: ________________________________________