HomeMy WebLinkAbout08-03-2016 Minutes CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, August 3, 2016, at 10:00AM
TRUSTEES PRESENT: Jean Grafton
Patricia Gleason
Robert Godek
Robert Briggs
TRUSTEES ABSENT: David Wheeler
OTHERS PRESENT: Ferrell Jenne, Foster&Foster
Tim Nash, The Bogdahn Group
Lee Dehner, Christiansen & Dehner
Russ Wagner, Plan Retiree
1. Call to Order Robert Godek called the meeting to order at 10:03AM.
2. Roll Call As reflected above.
3. Public Comments None at this time.
4. Approval of Minutes
The minutes from the May 4, 2016, quarterly meeting were approved upon motion by
Robert Briggs and second by Jean Grafton, motion carried 4-0.
5. Consent Agenda
The consent agenda was approved as presented upon motion by Jean Grafton and second
by Robert Briggs,motion carried 4-0.
6. New Business
a. Fund activity report.
i. Robert Godek briefly reviewed the retiree activity report with the board.
ii. The board had no questions.
The board voted to approve the items listed on the fund activity report as presented upon
motion by Jean Grafton and second by Robert Briggs, motion carried 4-0.
b. Discussion of board vacancy.
i. Ferrell Jenne explained that on July 28, 2016 the City Clerk informed her
of a member who had expressed interest in serving on the board. Since
this member was the only one interested in filling the vacancy, no
election would be needed. The interested member is Gequita Cowan.
ii. Robert Briggs left the meeting to get Gequita Cowan. Robert informed
the board that Ms. Cowan was out of the office for the remainder of the
week.
The board voted to postpone the Trustee officer election until the new trustee was present,
upon motion by Jean Grafton and second by Robert Godek, motion carried 4-0.
7. Old Business- None.
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8. Reports
a. The Bogdahn Group, Tim Nash, Investment Consultant.
i. Quarterly update as of June 30, 2016.
1. Tim Nash gave a brief overview of the market environment
during the quarter.
2. Market value of assets as of March 31, 2016, was $32,175,267
and as of June 30, 2016, was$32,731,694.
3. Tim Nash stated that fund distributions were high in the last nine
months, totaling almost $1.5M. This caused the market value to
barely increase.
4. Net earnings for the quarter were 1.82%, underperforming the
policy benchmark of 2.07%. Fiscal-year-to-date earnings were
5.71%, underperforming the benchmark of 7.44%. Trailing
returns for the 1, 3, and 5 year periods were 0.43%, 7.04%, and
6.09%. Since inception (4/1/2004) net earnings were 6.09%
underperforming the policy benchmark of 6.37%.
5. Tim Nash briefly reviewed the performance of each manager.
6. Tim Nash reviewed the factors that caused Dodge & Cox to
perform poorly and stated he continued to have full confidence in
them and recommended no changes at this time.
7. Tim Nash reviewed the underperformance of Templeton Global
Bond and recommended making no changes at this time.
8. Tim Nash stated no rebalancing was needed and all asset
allocations were in-line with the IPS.
9. Tim Nash reviewed the compliance checklist.
ii. Custodial analysis.
1. Tim Nash presented a summary of fees for each firm that
responded to the RFI and the assumptions used.
2. Tim Nash commented that the plan was not his only plan
experiencing problems with Fifth Third.
3. Tim Nash recommended the board create a short list and
conduct interviews to understand the process of each custodian.
4. Tim Nash commented that Regions, whose response was not
given prior to the printing of the summary, had just responded
indicating their fees would be 4.75 basis points, all inclusive.
5. Tim Nash recommended Fiduciary Trust, Comerica Bank, Salem
Trust,Wells Fargo, and Keybank.
6. Robert Godek asked to review the issues with Fifth Third. Tim
Nash stated his issues with Fifth Third included problems with
rebalancing accounts, deposits being made into incorrect
accounts, and David Wheeler had expressed frustration with the
callback procedure.
7. Russ Wagner commented the fund had a longtime relationship
with Fifth Third and stated their fees were very low. Russ
recommended bringing Fifth Third in and giving them a chance
to address the issues.
8. Robert Briggs commented that Fifth Third had always been very
quick to fix any issues he had regarding deposits going into the
incorrect accounts.
9. Robert Godek stated he would like to invite Kim Kutlenios to the
next quarterly meeting. Jean Grafton suggested inviting
someone above Kim to the next meeting.
10. Tim Nash stated he had seen no issues with numerous firms that
responded to the RFI.
11. Jean Grafton asked how long the recommended firms had been
in business. Tim Nash stated all the firms had decades of
experience.
12. The board decided to table the discussion until the next meeting
when the new trustee could be present.
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b. Christiansen & Dehner, Lee Dehner, Attorney.
i. Legislative/legal update.
1. Lee Dehner asked about Senate Bill 534 and Ferrell Jenne
confirmed that all financial disclosures and reports had been
posted to the City's website.
2. Lee Dehner reminded the board the FRS mortality tables will
need to be utilized with the October 1, 2016,valuation report.
3. Lee Dehner reminded the board to file their Statement of
Financial Interests forms to avoid fines.
9. Staff Reports, Discussion, and Action
a. Educational opportunities.
i. Ferrell Jenne informed the board that FPPTA would be holding their Fall
Trustee School in Bonita Springs, September 25 — 28, 2016. Jean
Grafton, Robert Briggs, Robert Godek, and Patricia Gleason all stated
they would like to attend the Fall Trustee School. Robert Briggs stated he
would check with Gequita Cowan about any interest in attending.
ii. Ferrell Jenne informed the board about the FPPTA Winter Trustee
School in Orlando, January 29—February 1,2017.
b. Election results.
i. Lee Dehner stated the election results would need to be certified at the
next meeting and Gequita Cowan would then need to take office.
10. Trustee Reports, Discussion, and Action/City Liaison
a. Russ Wagner asked Robert Briggs what the funding requirement was for the
City. Robert Briggs stated he didn't know off the top of his head.
b. Russ Wagner reminded the board that DROP payouts were the benefit payments
that those retirees were depositing into the fund on a monthly basis and then
take the money when they terminate employment.
c. Russ Wagner reminded the board of their fiduciary responsibility.
d. Russ Wagner reminded the board that someone at the City needed to be the
liaison for the plan administrator and the board. Lee Dehner commented the
board voted to name Sharon Zink as the RMLO and adopt GS1-SL Schedule as
a result of the discussions. Lee commented he could make a change to the
Resolution, as needed.
11. Adjournment The meeting adjourned at 11:40AM.
12. Next Meeting November 2, 2016 at 10:00AM.
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