HomeMy WebLinkAbout11-02-2016 Minutes CITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, November 2, 2016, at 1 0 00AM
TRUSTEES PRESENT: Jean Grafton
Patricia Gleason
Robert Godek
Robert Briggs
Gequita Cowan
TRUSTEES ABSENT: None
OTHERS PRESENT: Ferrell Jenne, Foster&Foster
Tim Nash, The Bogdahn Group
Lee Dehner, Christiansen & Dehner
Russ Wagner, Plan Retiree
Jeanine Bittinger, Davidson, Jamieson &Cristini
Richard Cristini, Davidson, Jamieson& Cristini
Eugene Williford, Human Resource Department, City of Ocoee
Stefanie Wilson, Human Resource Department, City of Ocoee
1. Call to Order Robert Godek called the meeting to order at 10:05AM.
2. Roll Call As reflected above.
3. Public Comments None at this time.
4. Approval of Minutes
The minutes from the August 3. 2016. quarterly meeting were approved upon motion by
Jean Grafton and second by Robert Briggs, motion carried 5-0.
5. Consent Agenda
a. Warrant#22,#23, and#24 for ratification.
b. Warrant#25 for payment approval.
c. Retiree list from Fifth Third.
Ferrell Jenne briefly explained the items on the consent agenda. Ferrell commented that Foster&
Foster's invoice#9427 had a fee reduction of$100 for the late registration FPPTA fees that were
paid by the plan. Ferrell explained there was a mix-up at her office on getting some of the
trustees registered for the past FPPTA conference and apologized for any inconveniences. The
board had no questions.
The consent agenda was approved as presented upon motion by Robert Briggs and
second by Jean Grafton. motion carried 5-0.
6. New Business
a. Certification of election results for the member elected trustee seat.
i. Lee Dehner asked if Gequita Cowan filed her Form 1, Statement of
Financial Interests. Gequita confirmed that she had filed the form with
the supervisor of elections.
•The board voted to certify the election results for elected trustee Geauita Cowan. upon
motion by Jean Grafton and second by Robert Briags.motion carried 5-0.
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b. Proposed 2017 meeting dates
i. The board reviewed and discussed the proposed meeting dates of
February 1st, May 3rd, August 2nd, and November 1St
ii. Jean Grafton commented that the 1st quarter meeting date was also the
last day of the FPPTA Winter Trustee School. Ferrell Jenne stated she
would work with Lee Dehner's office to find an alternate date for the first
2017 quarterly meeting.
c. Quarterly fund activity report.
The board voted to approve the fund activity report for the auarter as presented. upon
motion by Jean Grafton and second by Geauita Cowan. motion carried 5-0.
d. Election of Officers.
i. Ferrell Jenne explained that since the Chairman left the board, a new
Chairman would need to be elected. Ferrell stated that depending on the
outcome of the Chairman election, a new Vice-Chairman may also need
to be elected.
ii. Jean Grafton commented she would like to see Robert Briggs as
Chairman since he was a CPA. Robert Briggs stated he would like to
remain just a trustee since he was new to the board and his term was the
shortest.
The board nominated Robert Godek as Chairman upon motion by Jean Grafton and
second by Robert Briaas. motion carried 5-0.
The board nominated Robert Briaas as Vice Chairman upon motion by Robert Godek and
second by Geauita Cowan. motion carried 5-0.
7. Old Business
a. Further discussion regarding Fifth Third.
i. Robert Briggs asked about the rebalancing issue. Tim Nash explained
they had a standing rebalancing letter and Fifth Third stated they will no
longer allow the standing letter, instead a dollar amount would be
needed. Tim commented Fifth Third was now allowing the rebalancing
( letter again.
ii. Robert Briggs asked if there were any other issues. Tim Nash
commented that the plan's auditors discovered that incorrect
contributions were made in the Police, Fire, and General accounts.
Richard Cristini stated that Fifth Third's platform was bulky and
everything was lumped into one bucket. Richard commented that his
staff was running into roadblocks when working with Fifth Third and there
were new GASB rules as of September 30, 2016, that required the
auditors to break out the different accounts.
iii. Tim Nash stated that operational functions had been moved to an
outside facility which caused service issues. Lee Dehner asked Tim what
service issues other plans had experienced with Fifth Third. Tim Nash
commented there had been errors with deposits.
iv. Jean Grafton asked if it would cost less to use a different custodian. Tim
Nash commented the bids were all higher than the current fees being
paid. Tim stated the reporting capital of the other custodians was more
robust. Tim Nash reviewed the fees of the other custodians.
v. Richard Cristini explained some other issues his firm had with trying to
track money leaving the fund to pay expenses and benefits.
vi. Robert Briggs asked if any custodians were local. Tim Nash commented
that Fiduciary Trust was based out of Miami and Salem Trust had an
office in Tampa.
vii. Tim Nash stated the Police and Fire Board would be conducting
interviews today for a new custodian. Their short list consisted of
Fiduciary Trust, Salem Trust, and PNC. Robert Briggs and Robert Godek
commented that they felt the board should interview new custodial firms.
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viii. Robert Briggs asked if electronic contributions could be made to other
custodial firms. Tim Nash stated he would need to check with the
custodian to see if this was an option.
By consensus,the board voted to invite Salem Trust. Fiduciary Trust, and PNC to the next
meeting for interviews.
ix. Lee Dehner reminded the board that if they attended the custodial
presentations at the other board meetings, they could not discuss the
presentations with each other. Tim Nash reviewed the interview times.
x. The board decided to hold a special meeting to interview custodial firms
prior to the end of the year, if possible.
8. Reports
a. Davidson, Jamieson, Cristini, Richard Cristini &Jeanine Bittinger, Auditors.
i. Presentation of the September 30, 2015, audit report.
1. Jeanine Bittinger commented there had been growth in the plan,
but the net appreciation was much less than 2014.
2. Jeanine Bittinger reminded the board that the dollar amount
shown for the DROP were actual checks that had been written. It
does not represent members who are currently in the DROP.
3. Jeanine Bittinger briefly reviewed the net increase in realized
and unrealized appreciation of investments.
4. Jeanine Bittinger reviewed the administrative expenses,
commenting the total net percentage was under 1% which was
within guidelines.
5. Jeanine Bittinger reviewed the net pension liability of the City
which was$1,425,442 under GASB 67.
6. Jeanine Bittinger commented that the funded status was 95.66%
which was on the high end when compared to other plans she
had audited.
7. Jeanine Bittinger reviewed the required supplementary
information and the schedule of investment returns for the last
three fiscal years.
The board voted to approve the September 30. 2015 audit report as presented.
upon motion by Gequita Oman and second by Patricia Gleason. motion carried 5-
O. C C�
8. Jeanine Bittinger reminded the board there would be GASB 72
footnotes in the September 30, 2016 audit report.
b. The Bogdahn Group, Tim Nash, Investment Consultant.
( i. Quarterly update as of September 30, 2016.
1. Tim Nash informed the board that his firm was rebranding and
would soon have a new name and logo to reflect an employee
owned company versus family owned. Tim assured the board
that no management changes were being made.
2. Tim Nash gave an overview of the market environment during
the quarter.
3. Market value of the fund as of September 30, 2016, was
$33,664,656.
4. Tim Nash reviewed the asset allocations and commented that no
rebalancing was needed at this time.
5. Tim Nash reviewed the financial reconciliation for the fiscal year.
6. Total net earnings for the quarter were 3.12%, underperforming
the policy benchmark of 3.37%. Fiscal YTD net earnings were
8.98%, underperforming the benchmark of 11.07%. Trailing
returns for the 1, 3, and 5 year periods were 8.98%, 6.49%, and
9.24%. Since inception (4/1/2004) net returns were 6.23%,
underperforming the policy benchmark of 6.52%.
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7. Tim Nash commented that passive management performed very
well for the fiscal year.
8. Tim Nash gave an update on Templeton Global Bond Fund,
stating they were up 4.27% for October. Tim stated he continued
to like Templeton and did not recommend any changes at this
time.
9. Tim Nash reminded the board there were 23 funds in the real
estate universe.
10. Tim Nash reminded the board that they were on a four year
smooth method.
The board voted to approve the Boadahn auarterly report as of September 30. 2016 as
Presented. upon motion by Jean Grafton and second by Geauita Cowan. motion carried 5-
0.
ii. Discussion of proposed fee increase.
1. Tim Nash reviewed the fee increase memo stating the current
fee had been in place for six years. Tim requested an annual fee
increase of$3,000, guaranteed for three years with an effective
date of January 1, 2017.
The board voted to approve the Boadahn fee increase of$3.000 effective January 1. 2017.
upon motion by Robert Briaas and second by Jean Grafton. motion carried 5-0.
c. Christiansen & Dehner, Lee Dehner, Attorney.
i. Legal update.
1. Lee Dehner informed the board that the next legislative session
will convene March —May, and there were no proposed bills that
would affect the plan.
ii. Discussion of Records Management Liaison Officer(RMLO).
1. Lee Dehner advised the board that they needed to designate a
new RMLO and adopt the GSL-1 Records Retention Schedule.
2. Jean Grafton commented that she had some original documents
that will most likely need to be scanned.
3. Robert Briggs commented that he reviewed the files that Sharon
Zink was keeping and they seemed very organized.
4. Ferrell Jenne stated that her firm had been keeping records
since November 1, 2014, and prior records would stay with the
City.
5. Robert Briggs commented that it made sense for the RMLO to
be at the City.
6. Robert Briggs stated that it would be great to scan in all the
records in accordance with retention policy.
7. Jean Grafton commented she would bring the files she had to
the City Clerk.
8. Robert Briggs stated that the board's tax exempt certificate
• should be received within the next couple of weeks.
9. The board discussed possibly acquiring a credit card in the
Plan's name.
10. The board tabled the discussion of an RMLO until the next
meeting.
9. Staff Reports. Discussion. and Action
a. FPPTA 2017 board membership renewal.
i. Ferrell Jenne informed the board that the annual membership renewal
fees for FPPTA were due.
The board voted to renew their 2017 FPPTA board membership. upon motion by Jean
Grafton and second by Geauita Cowan. motion carried 5-0.
b. Educational opportunities.
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i. Ferrell Jenne informed the board that the FPPTA Winter Trustee School
would be held in Orlando January 29—February 1, 2017.
1. Patricia Gleason, Robert Briggs, and Gequita Cowan stated they
would like to attend and asked to be registered.
ii. Ferrell Jenne informed the board that FPPTA would hold their Annual
Conference in Orlando, June 25-28, 2017.
iii. Robert Godek asked Ferrell Jenne to confirm that he was registered for
the Wall Street Program.
c. Fifth Third signature form.
i. Ferrell Jenne informed the board that the Fifth Third signature form
would need to be updated to reflect recent board trustee changes.
10. Trustee Reports. Discussion. and Action/City Liaison
a. Gequita Cowan asked if the plan ever considered paying the insurance
premiums for employees with thirty or more years of service with the City. Jean
Grafton commented the board had never considered this. Richard Cristini stated
this should be handled between the City and members, and a VEBA would need
to be set-up.
11. Adiournment The meeting adjourned at 12:00PM.
12. Next Meeting January 23, 2017 at 10:00AM.
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