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HomeMy WebLinkAbout11-17-1997 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS' RETIREMENT BOARD MEETING November 17, 1997 I. CALL TO ORDER Chairperson Mike Reed called the meeting to order at 1:08 p.m. in the City Hall Commission Chambers Conference Room. The roll was called and a quorum declared present. PRESENT: Chairperson Reed, Secretary Ron Strosnider, Members Nora Gledich and Bob Williams. ABSENT: Member Tony Wilson. II. ACCEPTANCE /APPROVAL OF MINUTES The minutes of the August 6, 1997 board meeting were discussed. Attorney Dehner requested that the following corrections be made: (1) Page 5, Number 4 should be corrected to read Code Section 401(a)(4). (2) The paragraph following Number 4 on Page 5 should read "Attorney Dehner" rather than "Actuary Foster" and "Market Maker" rather than "Market Wager." Secretary Strosnider moved to approve the minutes of the August 6, 1997 board meeting as corrected. The motion was seconded by Member Gledich. The motion carried unanimously. III. QUESTIONS /COMMENTS FROM AUDIENCE There were no questions or comments from the audience. IV. CERTIFICATION OF ELECTION Chairman Reed announced that he was re- elected by acclamation to another term on the board. 2 V. REPORTS A. REPORT FROM ACTUARY. Actuary Ward Foster presented a report on the performance of the fund as of October 1, 1997. The total required contribution is $871,419. The City's cost is $547,000. There was a reduction in the percentage of payroll cost. An investment return of 12.2 % was recognized for funding purposes. The actual market value return was over 20 %. The actuarial value of the fund is $3,685,000. The actual value of the fund is $4,222,000. The amount difference is being set aside to be used in a year when the fund does not perform as well. The assets in the fund currently cover all the benefits earned. The minimum funding standards were exceeded. There was a 50% increase in state money between 1996 and 1997. Member Williams moved the acceptance of the actuary report dated October 1, 1997. The motion was seconded by Secretary Strosnider. The motion carried unanimously. B. REPORT FROM MONEY MANAGER. Money Manager Michael Aloian reported that the fiscal - year -to -date return was 22.86 %. During the period covering 9/30/96 to 9/30/97 cash flow grew from $2.8 million to $4.18 million. The recent volatility of the market due to financial instability in Asia was discussed. The interest rates appear to be continuing downward. The next fiscal year is expected to revert back to the mean of about 10 %. The viability of investing in small capital funds was discussed. A fact sheet will be submitted. C. REPORT FROM PERFORMANCE MANAGER. Actuary Ward Foster submitted a report covering two years and three quarters showing growth of the fund from $1.5 million to $4.2 million, more than achieving the actuarial expectation by approximately $900,000. Three -year performance figures will be presented next quarter. There were no violations of the investment policy guidelines and objectives at the end of the quarter. VI. DISTRIBUTION OF MEMBER CERTIFICATES Chairperson Reed advised that he would make a copy of the certificates prior to distributing them. Attorney Dehner explained that there is a special certificate for five employees in the fund that have some service time with the general police plan. It accounts for the period of time 3 when these individuals were general employees. The five employees are Conyers, Adams, Bennett, Kelly and Minnick. VII. OTHER BUSINESS A. Authorize /Ratify Disability Form. Attorney Dehner advised that the proposed new form is the same as the existing one with the addition of the requirement that a plan member submit a physician's statement along with the initial application. Member Gledich moved the acceptance of the form for disability retirement. Member Williams seconded the motion. The motion carried unanimously. B. Discuss /Set 1998 Meeting Dates. The following dates were submitted by Chairperson Reed for the 1998 quarterly meetings: February 11, 1998; May 12, 1998; August 13, 1998; and November 17, 1998. The meeting time will be 1:00 p.m. C. Authorize /Ratify Payment of Bills. Chairperson Reed presented a list of bills for the period covering August 7, 1997 through November 17, 1997. They are as follows: SunTrust $ 7,025.73 Foster & Foster $ 575.00 Christiansen & Dehner $ 892.44 Christiansen & Dehner $ 144.43 Member Williams moved that the payment of these bills be authorized. The motion was seconded by Member Gledich. The motion was passed unanimously. D. Selection of Fifth Board Member. Chairperson Reed submitted a letter from Ron Strosnider requesting reappointment to the position of board member. Member Gledich moved to reappoint Ron Strosnider to the board. Member Williams seconded the motion. The motion was carried unanimously. E. Search for Recording Secretary. Louan Roe of Verbatim Transcripts, Inc., a court reporting firm, was hired by Chairperson Reed to report the November 17, 1997 meeting. Attorney Dehner advised that a verbatim record was not necessary for purposes of the board and that a summary of the actions of the board, or minutes, 4 is what is required. Ms. Roe stated that the rates for court reporting services were considerably higher than what the board expected to pay for the services of a recording secretary. There was discussion concerning ideas for finding a replacement for the prior recording secretary at a rate of $8.00 to $12.00 per hour. Ms. Roe agreed to produce minutes, rather than a transcript, of the November 17, 1997 meeting and for future meetings until a recording secretary can be found. However, an invoice for her per diem at the rate of $50 for the first hour and $25 for each additional hour would be submitted. Additional discussion occurred reference the viability of advertising for the position, checking with temporary agencies, and asking acquaintances for references. VIII. ATTORNEY COMMENTS Attorney Dehner followed up on two items which had been discussed at the previous meeting. The first, 415(C), concerning liberalization of contribution limits, passed. The second, 401(A)(4), concerning nondiscrimination, will not apply to the Ocoee fund. Board members asked questions about other state and federal legislation and were advised that no impact on the Ocoee plan was expected. IX. ADJOURNMENT There was a motion by Secretary Strosnider which was seconded by Member Gledich to adjourn the meeting at 2:35 p.m. The motion carried unanimously. Respectfully submitted, /LA d-C-1 L..an •oe, Acting Recording Secretary