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Home My WebLink About02-18-1999 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS' RETIREMENT BOARD MEETING - February 18,1999 Chairman REED called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 1:05 p.m. in the Commission Chambers Conference Room of City Hall. The roll was called and a quorum declared present. PRESENT: Chairman Reed, Secretary Strosnider, Member Wilson and Member Williams. Also present were Patrick Donlan filling in for Actuary Foster, Attorney Delmer, Tim Nash filling in for Money Manager Senderowitz, and Recording Secretary Lewis. ABSENT: Members Gledich (excused). APPROVAL OF MINUTES Member Reed stated that the November Minutes stated that Phil Senderowitz was going to send something regarding the Y2K problem. On page 3 of the Minutes where it states the payroll paid 15.1% is this correct? A short discussion ensued. Secretary STROSNIDER, seconded by k libe Member WILLIAMS, moved to approve the Minutes of the November 17, 1998, meeting also, the January 25, 1999 Police Officers'/Firefighters Retirement Trust Fund meetings as presented. Motion carried 4 -0. QUESTIONS /COMMENTS FROM AUDIENCE None DISCUSSION AND APPROVAL OF SUMMARY PLAN DESCRIPTION Subsequent changes were to increase the benefit rate from 2 %2% to 3% and our member contribution from 5% to 7.6 %. A brief discussion ensued. Member WILLIAMS, seconded by Member STROSNIDER, moved to adopt the Summary Plan Description, with the additions on 3, paragraph 2 as presented. Motion carried 4 -0. DISCUSSION AND APPROVAL OF THE ACTUARY CONTRACT Patrick DONLAN, with Foster and Foster stated that there were no changes. OTHER BUSINESS AUTHORIZE /RATIFY PAYMENT OF BILLS Chairman REED asked for ratification of payment, and requested approval of the Board the bills that had been presented to present to SunTrust for payment and to Judy Lewis for secretarial services. Member WILSON, seconded by Member WILLIAMS, moved to authorize and k ikri ratify payment of the bills. Motion carried 4 -0. Police Officers' /Firefighters' Retirement Trust Fund `„ February 18, 1999 RECORDING SECRETARY Chairmen REED stated that Judie Lewis had taken a position with the City Manager's office `, and as a result of this, her time is limited. She solicited Pat Cornell to be the recording secretary and under the same agreement as Judie. Member WILSON, seconded by Member WILLIAMS, moved to approve the hiring of Pat Cornell as the recording Secretary. Motion carried 4 -0 Secretary Strosnider stated that there was a need for fire -proof cabinets and the cost would be approximately $2,500. A discussion ensued. Member WILLIAMS, seconded by Member WILSON moved to purchase a new fire -proof filing cabinet. Motion carried 4 -0. Member WILSON asked if a letter can be generated from the attorney to the City Manager asking if the City has "short- term/long- term" disability or whether it is just permanent disability. A discussion ensued. Member WILSON, seconded by Secretary STROSNIDER moved to have the attorney write a letter to the City Manager requesting an explanation regarding the disability policy of the City. Motion carried 4 -0. REPORTS MONEY MANAGER Tim Nash, filling in for Money Manager SENDEROWITZ, said that he was just a temporary person and that Mr. SENDEROWITZ would return for the next meeting. Tim NASH requested that someone get several copies of the Policy Statement so that it could be signed. Secretary STROSNIDER left. A brief intermission occurred. The meeting resumed and Tim NASH covered the performance for the quarter and stated that September of 1998, was a tough fiscal year . Under TAB #1; The market was down 20% and slow growth outside the United States. The 4 quarter was turned S &P 500 was up 21.28% for just that quarter. The Federal Reserve dropped interest rates two different times at a quarter % each time and basically corporate earnings came in better than expected. Using a monetary policy things look better for the market and investor confidence has returned. The lower interest rate environment, caused more mortgage refinancing which was a big push for the economy, which promoted strong retail sales and strong automobile sales. The top 50 stocks had a rate of return at 26% while the other 450 stocks had just a little under 3% rate of return for the year. 'to„ The total return for your plans were up 11.6 %, which converts to $633,300.00 increase for the quarter. At close -out on December 31, 1998, $6,155,756.00 value in the market plan. The equity assets are 56% of market, fixed assets 41 %, individual returns was up almost 34% for the ir.. 2 Police Officers' /Firefighters' Retirement Trust Fund February 18, 1999 year. The limited cap equity fund was up 3.17 %, this fund during the last quarter of the year was up 25.8% which was a good time to be getting into that fund which had a real strong quarter. Under TAB #2; One of the main changes was under the bond portfolio and the main difference was distribution by market sector. We have increased our exposure to mortgage fact assets from 6% to about 27% of the portfolio. A brief discussion ensued. ACTUARY Patrick Donlan, filling in for Actuary Foster, distributed the proponents monetary report from the quarter ending December 31, 1998. The numbers match the Suntrust report. Mr. Donlan related similar statistical information as previously stated by Mr. Nash. Mr. Nash stated that they will be backing out of the investment performance business and will invest in international securities and small to mid -cap securities. He stated that they will be presenting the evaluation annually instead of quarterly. 4 %w A discussion ensured ATTORNEY COMMENTS Attorney DEHNER stated a draft of the Policy Statement had been prepared based on the criteria that the Board has already adopted; equity limited to 50% and does allow under rated securities that would have limited cap funds of 10% at cost value. The Policy Statement was then executed by the Board. This document will be substituted for page 3. Secretary STROSNIDER, seconded by Member WILSON to approve the amendment to the Rules and Procedures as presented. Motion carried 4 -0. You will receive a Y2K letter in a couple of weeks and it will need guidance by DOL. Take the language that has been prepared and put it on your letterhead and send it to the Consultants, and include the City. A brief discussion ensued. SET NEXT AGENDA Agenda was pre -set for May 13, 1999, at 1:00 p.m. in November, 1998. Attorney DEHNER stated that in connection with the Drop Account the three issues are; credit only interest, plan for loses and allow (unable to understand) asked where was he to begin on the draft. A discussion issued. Nob. 3 Police Officers' /Firefighters' Retirement Trust Fund _ February 18, 1999 ADJOURNMENT Member WILLIAMS, seconded by Secretary STROSNIDER, moved to adjourn the meeting at 1:55 p.m.. Motion carried 4 -0. Respectfully submitted, Judie Lewis, Recording Secretary a: \MS Word \PF021899 -.M \jl 4