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Home My WebLink About08-02-2017 Minutes THE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT FUND BOARD MEETING—August 2,2017 Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 1:00 p.m. in the Commission Chambers of City Hall. The roll was called and a quorum declared present. PRESENT: Charles Brown,William Wagner,William Maxwell, Joe Moy and Bryan Pace Others present: Mr. Mr. Nash Nash of Bogdahn Consulting, Scott Christiansen Board Attorney attended by phone, and Pete Prior of Benefits USA. Inc. ABSENT and EXCUSED: CALL TO ORDER— Roll call and determination of quorum Roll call was taken and it was determined that there was a quorum. APPROVAL OF MINUTES Approval of Minutes from Regular Meeting dated February 1,2017.Trustee Wagner moved to approve the minutes as presented.Trustee Pace seconded the motion and the motion passed. PUBLIC COMMENTS There were no public comments. QUARTERLY INVESTMENT UPDATE: Period ending June 30,2017 AndCo Consulting Mr. Nash reported on the total portfolio noting the market is up 17%for the fiscal year and this plan is doing well.Mr.Nash noted that the indices were hard to beat this year. Garcia Hamilton was slightly negative for the quarter but did beat the index.Mr. Nash reviewed the returns for the quarter noting that the Fund had a net return of 2.38%vs.the Fund policy of 2.94%. The Equity Fund returned 3.24%vs. 3.76%. The Domestic Equity returned 2.82%vs.the policy of 3.02%. The Equity manager's returns were GAMCO 2.34%,Vanguard 3.03%and Sawgrass 2.56%vs. the indices of 1.29%; 3.04%and 4.67% respectively. For the International Equity,the American Funds Euro Pacific Fund returned 7.69% outperforming their index of 5.99%. The fixed income returned 0.98%vs. the policy of 1.45%. Garcia Hamilton returned 1.40%slightly under the benchmark of 1.45%. The Templeton Global Fixed Income returned-1.26%vs. the Citigroup World Gov Bond of 2.89%. American Realty returned 1.97%vs.the NCREIF-ODCE index of 1.79%. Mr.Nash the Sawgrass reported on the Sawgrass returns noting that although some of the returns are good,they are not beating their benchmark and stock selection has not been good.Mr.Nash recommended placing Sawgrass on watch for the next three quarters and will provide information on additional managers at the next meeting. Trustee Maxwell moved to put Sawgrass on watch and Trustee Wagner seconded the motion and the motion passed. Mr.Nash reported on the cash flows noting that the market value at the beginning of the quarter was $47,407,904;the Contributions totaled$512,061; the Distributions totaled-$506,243;the Management Fees totaled-$48,428 the Other Expenses totaled-$15,499;the Income totaled$310,705 and the Appreciation totaled$866,832 resulting in the ending market value as of June 30th of$48,525,333. Page I of 4 If Mr.Nash reviewed the compliance check list with the trustees regarding diversifying the portfolio. Mr. Nash said he spoke with Trustee Wagner about Private Equity with Black Rock. Mr.Nash said his firm has reviewed Black Rock and has approved them as an alternative investment vehicle for the Plan. Mr. Nash suggested taking some of the money from the bonds if the Board wanted to invest. The board reviewed the Tactical Asset Allocation suggestions provided by Mr.Nash noting the four companies that have been vetted by AndCo. The fees range from 54bps to 95bps. Trustee Maxwell asked how much money the board would invest. Mr.Nash suggested 5% from the bond portfolio and perhaps selecting two of the four managers and investing 1.5 million dollars in each. Mr.Nash suggested the PIMCO fund and Black Rock which is very different in their investment strategy offering diversity from domestic equity to foreign equity and emerging markets. All the funds are mutual funds. Mr. Christiansen noted that the Investment Policy Statement will need to be amended to include the Global Tactical Asset Allocation before investing in the funds.Mr.Nash said he can make all the recommendations for a special meeting or have it ready for the next regular meeting.Mr.Nash said he would send the Investment Policy Statement to the Plan Sponsor after the 31-day wait period. Trustee Wagner asked what the steps will be to invest in private equity. Mr.Nash noted that he will have to amend the Investment Policy Statement first and since the private capital is based on a Call Equity basis which could take up to three years he can provide the board with private equity companies at the next meeting. Trustee Wagner asked if they can invest in both,the Tactical Asset Allocation and the Private Equity at the same time. Mr.Nash said it was suggested to complete the Investment Policy Statement with both suggestions for the next quarterly meeting. NEW BUSINESS: Proposed Administrative Budget Mr. Prior reviewed the Proposed Budget with the Board noting that 2015 &2016 are actual expenses paid and that fiscal year 2017-2018 are proposed numbers. Trustee Moy moved to approve the Administrative budget as presented and Trustee Pace seconded the motion and the motion passed. UNFINISHED BUSINESS: There was no unfinished business discussed. CONSENT AGENDA For Approval:Warrant#147 Benefits USA,Inc. (Flat Monthly Fee for August-Invoice#08-2017 dated 7/6/17)$2,100.00 Foster and Foster(Services Rendered-Invoice#10803 dated 7/21/17) $5,725.00 GAMCO(2"d Qtr. 17 Mgmt Fee-Inv#20170630-157-4967-A dated 7/20/17) $17,914.00 Garcia Hamilton(2"d Qtr. 17 Mgmt Fee-Invoice#28237 dated 7/12/17) $7,046.42 Sawgrass Asset Management(2"d Qtr. 17 Mgmt Fee-Invoice dated 7/12/17) $14,102.35 Total $46,887.77 For Ratification: Warrants#144-146 Benefits USA, Inc. (Flat Monthly Fee for June 2017; Invoice#06-2017) $2,100.00 Christiansen&Dehner(Legal Fees-Invoice#30622 dated 5/31/17) $4,062.80 Fiduciary Trust Co Intl. (1ST Qtr. Custodian Fees-Invoice#22028 dated 4/25/17) $382.46 Fiduciary Trust Co Intl. (15`Qtr. Custodian Fees-Invoice#22029 dated 4/25/17) $389.79 Fiduciary Trust Co Intl. (151 Qtr. Custodian Fees-Invoice#22030 dated 4/25/17) $461.09 Total $7,396.14 William Maxwell (Mileage&Per Diem to attend FPPTA Annual Conference) $123.95 Total $123.95 Page2of4 AndCo Consulting(2"d Qtr. 17 Consulting Fee-Invoice#22282 dated 6/30/17) $6,250.00 Benefits USA, Inc. (Flat Monthly Fee for July-Invoice#07-2017 dated 7/6/17) $2,100.00 Christiansen and Dehner(Legal Fees-Invoice#30796 dated 6/30/17) $81.80 Total $8,431.80 Pension Payments for Ratification: James Kelley(Monthly Benefit Payment effective 7/1/17) $5,005.72 James Kelley(PLOP distribution) $127,357.98 Matthew Collins(Refund of Contributions) $8,696.30 Jonathan Godbee(Refund of Contributions) $1,145.39 Joseph Peterson(Refund of Contributions) $18,643.80 Trustee Wagner moved to approve the Consent Agenda and Trustee Moy seconded the motion.The motion passed. Attorney' Report: Scott Christiansen, Esq. Mr. Christiansen reported that no legislation passed regarding pensions but there is legislation regarding public records requests. Mr. Christiansen noted that this is due to the attorney abuse from the public filing for records requests and suing if not receiving the records in a timely manner and collecting attorney fees per statute. Mr. Christiansen also reported on Public Safety Ad Valorem Tax Exemption for Disabled retirees. This bill provides exemption from ad valorem taxation for certain first responders & surviving spouses of first responders who have died;this bill also specifies the required documentation needed in order to receive the exemption;provides criminal penalty for giving false information. He noted that the deadline for filing for this exemption is August 1 for the 2017 tax year. He reported on the Share plan for the Police Officers noting that this additional benefit would be funded solely by the 185 premium tax monies received. The Chairman noted that Section 3 is in question regarding the members in the previous fiscal year; service retirees,disability retirees and DROP members. The Chairman also noted that in Section 4,the vesting is now 7 years for police officers instead of 5 years. Mr. Christiansen suggested that the board send him the number to be completed on section 2 and he would amend the share plan Ordinance. He noted that the Board can vote on it today.Trustee Wagner moved to approve the share plan Ordinance as amended. Trustee Moy seconded the motion and the motion passed. Trustees Comments: The Trustees had nothing further to report. Next Regular Meeting date: November 1,2017 at 1:00 pm. Adjournment: The meeting adjourned at 2:30 pm. Page3of4 Respectfully submit Ajr, Airpr: 4111 ,4011.- 4110- Chairman Br• Contact the City Clerk's Office to listen to an electronic copy of the complete minutes. Page 4 of 4