HomeMy WebLinkAbout12-17-2012 Special Mtg Minutes of the Special Meeting of the
CITY OF OCOEE GENERAL EMPLOYEES' RETIREMENT TRUST FUND
BOARD OF TRUSTEES (GERB)
Held on December 17, 2012
At 150 N. Lakeshore Drive
Ocoee, FL 34761
CALL TO ORDER — Chairman Wagner
Chairman Russ Wagner called the meeting to order at 10:00 a.m. in Conference Room 109 at
City Hall.
A. Roll Call
Chairman Wagner called the roll. Present were Chairman Russ Wagner, Vice - chairman
David Wheeler, and Trustees Gleason, Godek, and Grafton. The recording clerk declared
that a quorum was present.
Also present was Mr. Tim Nash of Bogdahn Consulting, LLC, Human Resources Director
Gene Williford, Senior Administrative Assistant Sharon Zink, and GERB Recording Clerk
Stella M
B. Approval of Minutes
Chairman Wagner directed the board's attention to the minutes for the November 7, 2012
meeting (Exhibit #1). A motion having been made by Trustee Gleason and seconded by
Trustee Grafton, that the minutes be approved with a correction, and that motion having
carried unanimously, the board
RESOLVED to approve the November 7, 2012 meeting minutes.
DISCUSSION AND ACTION ON INVESTMENT MANAGERS - Tim Nash of The
Bogdahn Group
Mr. Nash presented to the board a written report (Exhibit #2) to inform the trustees as to what
their choices are with respect to changing money managers. He proceeded to review the contents
of that report with the trustees.
The report contained data about the money managers with respect to the board's desire to have a
money manager that gives a strong, steady yield with low volatility.
General Employees Retirement Board
December 17, 2012
Page 2 of 3
Based upon the requirements set forth by the board, Mr. Nash pointed out that the two choices
that most closely fit the board's requirements were: 1) Eaton Vance /Atlantic Capital Portfolio
and 2) Vanguard Extended Market Index.
Chairman Wagner said that the two managers presented by Mr. Nash appear to meet the
specifications that the board established. Mr. Nash said that the board could place 50% the
remaining cash funds in Atlantic and 50% in the index. The board would get the desired yield
from the active manager and the security from the index manager, Mr. Nash said.
Mr. Nash reported that ICC is up for sale. He said that Bogdahn is not overly fond of the firm
that is buying it. Bogdahn will probably recommend to their customers to change managers, so
Ocoee is a little ahead of the pack.
Chairman Wagner asked where the fund's money actually is. Mr. Nash replied that Fifth
Third (the plan's custodian) has the money and the plan's trades. There are laws against the
money managers holding the plan's money. When a trade is made, Mr. Nash continued, an
electronic notification is made to Fifth Third to confirm that the money is in its omnibus account.
Once the trade goes through, Fifth Third then has three days to wire that money to the money
manager's omnibus account. The omnibus accounts allow the two entities to trade back and
forth, but the money managers are never allowed to hold the pension fund's money.
The SEC has this protection in place for traditional investment. Private equity or private
placement is where it is harder to catch a `Bernie Madoff type character. Further discussion
ensued.
ICC will need a termination letter from Ocoee's fund. Mr. Nash will handle the matter. The
board will see the two new mutual funds on their December statement. Trustee Grafton asked
if any letters were required from the plan's attorney. Mr. Nash replied `no'. A motion having
been made by Trustee Gleason, and seconded by Trustee Wheeler, that the board divest itself of
ICC, and select Atlantic Capital and Vanguard Extended Market Index in ICC 's place, dividing
the resulting cash in a 50/50 split between the two new managers, and that motion having passed
unanimously, the board
RESOLVED to divest of ICC and select Atlantic Capital and Vanguard Extended Market Index
as replacements.
Mr. Nash reported that Atlantic Capital will be closing their fund to new investors within the
next two months to protect the fund's performance.
General Employees Retirement Board
December 1.7, 2012
Page 3 of 3
The chairman spoke about minor changes to the summary plan description, a finished copy of
which the trustees will receive at the next regular board meeting.
Chairman Wagner noted that the plan's actuary had yet to receive payroll information from the
City's finance department as of a week ago. The chairman spoke with Pam Boronski about the
matter. HR Director Williford said that he would help follow up with finance about this matter.
The delay in having this information sent to the actuary will delay the adoption of the updated
summary plan description.
Trustee Wheeler asked about whether nor not money from Merrill Lynch had been received.
The chairman answered that he had not received it, and that it had not shown up on any bank
statements.
Ms. Zink announced that she would be mailing CPPT checks to FPPTA today.
Further discussion ensued about FPPTA recordkeeping.
COMMENTS FROM PUBLIC
None.
ADJOURNMENT
There being no other business, the meeting was adjourned at 11: 21 a.m.
' espr ctfully submitted •y: Appr.v:• by:
/ ,/
ella McLeod, Municip.W - • ordinator Russell B. Wagner, GE' it Chairman
GERB Recording Clerk