HomeMy WebLinkAbout11-01-2017 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — November 1, 2017
Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust
Fund to order at 1:10 p.m. in the Commission Chambers of City Hall.
PRESENT: Charles Brown, William Maxwell, Joe Moy and Bryan Pace
Others present: Tim Nash of AndCo Consulting, Lee Dehner Board Attorney
Retiree James Kelley, Plan Members David Ogletree and Trey Littlefield and Livia Giuliani of Benefits
USA. Inc.
ABSENT and EXCUSED: William Wagner
CALL TO ORDER —
Roll call and determination of quorum
The roll was called and a quorum declared present.
APPROVAL OF MINUTES
Approval of Minutes from Regular Meeting dated August 2, 2017. Trustee Maxwell moved to approve the
minutes as presented. Trustee Pace seconded the motion and the motion passed.
PUBLIC COMMENTS
Mr. James Kelley a retiree from the plan noted that the union Attorney told him that in order to get disability
from Social Security, that he had to retire from the Pension Plan. He said he applied for a disability from
Social Security but not the Pension. He asked if the Board could reclassify him from retired to disabled.
Attorney Dehner noted that in order for him to apply for a disability, he would have to be in active
employment status up until the time that the Board declared him disabled. The Ordinance states that if a
member is not in active status, he is not eligible for disability. The Board has to Administer the Plan
according to the Ordinance in effect at the time.
Officers David Ogletree and Trey Littlefield expressed their interest in becoming a Trustee. Chairman
Brown noted that they would need to submit an application to the City Clerk's office. Trustee Moy asked
that the Board to consider Lt. Wagner for his position if he is still interested in remaining on the Board.
That being said, it was noted that Benefits USA would contact Lt. Wagner and ask.
QUARTERLY INVESTMENT UPDATE: Period ending September 30, 2017
AndCo Consulting
Mr. Nash reported Returns were positive for the equity and fixed income indices for the 3rd quarter of
2017. Broad domestic and international equity market performance was largely fueled by continued
improvement in corporate earnings and macroeconomic data worldwide. Domestic equities trailed
international indices during the quarter. Small cap equities outperformed large cap stocks for the quarter
with the Russell 2000 Index returning 5.7% versus the S&P 50 Index of 4.5%. Small cap has been the
best performers over the last 12 months, returning over 20% and all U.S. core market capitalization
indices returned over 15% over the last year. The MSCI Emerging Market Index returned 7.9% for the
quarter and 22.5% for the 1 -year period. The developed market MSCI EAFE Index also posted robust
performance, returning 5.4% for the quarter and 19.1% for the 1 -year period. For the 1 -year period, the
Russell 2000 Value Index had a negative return of -0.13% return during IQ 2017. The Russell 2000
Small cap returned 20.7%vs. the Russell 1000 of 18.5%.
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The fixed income indices posted positive results the Bloomberg Barclays U.S. Aggregate Index returning
0.8% for the quarter and the Bloomberg Barclays U.S. Corporate Investment Grade Index returning 1.3%
and 2.2% over the quarter and 1 -year period respectively.
Mr. Nash reported that the total Fund return was 2.71% for the quarter and10.99% for the 1 -year period
vs. the Fund Policy 3.48% and 11.87% respectively. the Equity Fund 3.92% and 16.53 vs the Equity
Policy 4.99% and 19.14% respectively. The Domestic Equity Fund returned 3.49% and 15.93% vs. the
Domestic Equity Policy 4.57% and 18.71%. GAMCO returned 2.62% and 14.89% vs. the Russell 3000
Value of 3.27% and 15.53% respectively. Vanguard returned 4.54% and 18.64% vs. the CRSP U.S. Total
Market TR Index of 4.55% and 18.64% respectively. Sawgrass Growth returned 3.46% and 14.69% vs.
the Russell 1000 Growth of 5.90% and 21.94% respectively. The American Funds Europacific Growth
International Equity returned 6.86% and 20.63% vs. the MSCI AC World ex USA 6.25% and 20.15%
respectively. The Fixed Income Fund returned 0.62% and 2.23% respectively vs. the Fixed Income policy
of 0.85% and 0.07% respectively. Garcia Hamilton returned 0.51 and 0.43% vs. the Barclays Aggregate
Index of 0.85% and 0.07%. The Templeton Global Bond Fund returned 1.23% and 13.36% vs. the
Citigroup World Government Bond Index 1.81% and -2.69% respectively. American Realty returned
1.88% and 7.52% vs. the NCREIF Index of 1.88% and 7.80% respectively.
Mr. Nash reported that the market value at 7/1/17 was 48,525,333, the contributions totaled $1,228,304,
the distributions totaled -$651,699, the management fees totaled -$49,324, the other expenses totaled -
$16,381, the income totaled $236,412 and the appreciation totaled $1,132,209 resulting in an ending
market value at 9/30/17 of $50,404,854.
Mr. Nash reviewed the Compliance report noting that Sawgrass once again did not beat the index and
recommended termination. He reviewed the report for the Large Cap Growth Search that was
previously sent prior to the meeting. Mr. Nash reported on the Large Cap growth search and gave a
brief report about on each of the mangers; Fred Alger; Mar Vista Investment Partners; Massachusetts
Financial Services; Polen Capital Management and Sawgrass. After his presentation, Trustee Pace moved
to approve the Sawgrass termination and engaging the services of Alger and Mar Vista and Trustee Moy
seconded the motion and it passed.
NEW BUSINESS:
Appointment of 5"' Trustee
A discussion ensued regarding Trustee Wagner's resignation from the Board. Trustee Moy stated that Lt.
Wagner contacted him to relay the message to the Board that he would be resigning his position. Trustee
Moy said if Lt. Wagner does wish to remain on the Board, he asked that the Board consider him for the
position.
Presentation of 9/30/16 Financial Statements
Ms. Jeanine Bittinger addressed the Board noting that they have audited financial statement for this fund
which comprise the statement of fiduciary net position as of September 30, 2016 and 2015 and the
changes in the fiduciary net position and the notes to the financial statements. Ms. Bittinger stated that
the Board of Trustees is responsible for the preparation and fair presentation of these financial statements
in accordance with the accounting standards generally accepted in the United States which includes
design, implementation, maintenance of internal controls and fair presentation that the financial
statements are from misstatement. The auditor's responsibility is to express an opinion on the financial
statements assure that these statements are free from misstatement. The internal control is relevant to the
preparation and fair presentation of the statements in order to design the audit procedures but not for the
purpose of expressing an opinion. Therefore, they expressed no such opinion on the internal controls
however the financial statements presented fairly in all material aspects.
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The State Chapter 175/185 revenue totaled $557,160 ($281,152 for Fire and $276,008 for Police). The
net investment income totaled $3,473,057. The deductions from the Plan totaled $2,579,986. The
increase in net position was $3,794,295. Mr. Cristini reported on the demographics of the Fund
membership noting that during the fiscal year ending September 30, 2016, the membership consists of 60
retirees receiving benefits, 25 terminated employees entitled to benefits but not receiving them; 47 vested
members and 67 non vested members for a total Plan membership of 114. Ms. Giuliani asked where the
DROP members were listed. Mr. Cristini noted that they are included in the retiree membership.
Mr. Cristini reported on the plan benefits noting that members may retire with normal benefits after
reaching age 55 with 10 years or more of service or 25 years of service. Normal retirement benefit
multiplier is 3.5% of the member's final average compensation times the number of years of credited
service. The final average earnings for purposes of calculating benefits is the highest 5 years out of the
last 10 years at the termination date. The maximum benefit amount is 91% of average final earnings if
hired on or after October 1, 2012. A member with 5 or more years of service is eligible for deferred
retirement beginning upon the date of application or after the member reaches age 45. This benefit is
calculated the same a normal retirement based on the member final average salary and credited service as
of the date of termination.
Finally, Mr. Cristini reported on the sensitivity of the net pension liability. This liability is calculated
using the discount rate of 7.95% as well as what the City's net pension liability would be if it were
calculated using a discount rate of 1% lower (6.95%) or 1% higher (8.95%). If using the current rate of
7.95%, the liability would be $7,905,084; 1% lower would increase the liability to $14,259,666 and 1%
higher would decrease the liability to $2,619,523. Mr. Cristini noted that the GASB 67 disclosures are
accounting measurements not actuarial measurements for the funding status and not used to determine the
City's contributions rates.
2018 Meeting dates
Ms. Giuliani reported on the proposed meeting dates from the attorney. The 2018 meetings are February
7, May 2, August 1 and November 7, 2018 all beginning at 1:00 PM.
2018 Membership Dues
Ms. Giuliani reported that the FPPTA membership is due on 12/31/17. Trustee Pace moved to approve
the FPPTA 2018 membership dues and Trustee Moy seconded the motion and the motion passed.
2017 Audit Contract
Ms. Giuliani reported that the 2017 audit contract for Davidson, Jamieson and Cristim is in the packet for
renewal. This contract is guaranteed for 3 years with the fees being $16,000 for 2017, $16,500
for 2018, and $17,000 for 2019.
Foster and Foster Fee Memo
Ms. Giuliani reported that the Division of Retirement activated their new online reporting portal for
pension plans. The new reporting system is intended to capture all of the actuarial data as well as
financial and key census data. This compliance reporting requires creating a comprehensive electronic file
that contains over 100 fields of information in the format stipulated by the Division of Retirement.
That being said the Trustees deferred approval of this item until the next meeting and asked the actuary be
invited to the next meeting for an explanation of the charges.
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UNFINISHED BUSINESS:
Share Plan Ordinance
Attorney Dehner reported that based on the adoption of the Share Plan Ordinance, his office will update the
Summary Plan Description accordingly with the recent changes and will have it completed for the next
meeting.
CONSENT AGENDA
For Approval: Warrant # #151
Benefits USA, Inc. (Flat Monthly Fee for November 2017) $2,100.00
Foster and Foster (Services Rendered -Invoice #11264 dated 10/23/17) $3,260.00
FPPTA (2018 Membership Dues) $600.00
Garcia Hamilton (3' Qtr. 17 Mgmt Fee -Inv #28540 dated 10/3/17) $7,080.54
Total $13,040.54
For Ratification: Warrants #148-150
Benefits USA, Inc. (Flat Monthly Fee for September 2017)
$2,100.00
Christiansen & Dehner (Legal Fees -Invoice #31112 dated 8/31/17)
$2,343.57
FPPTA (Trustee School Registration for 4 Trustees @ $500 each)
$2,000.00
Total
$6,443.57
Bryan Pace (Per Diem to attend FPPTA Fall Trustee School)
$ 163.00
Courtyard by Marriott Downtown (Hotel reservation for Bryan Pace)
$ 537.00
William Maxwell (Mileage & Per Diem to attend FPPTA Fall Trustee School)
$ 253.41
Courtyard by Marriott Downtown (Hotel reservation for William Maxwell)
$ 537.00
Joe Moy (Mileage & Per Diem to attend FPPTA Fall Trustee School)
$ 253.41
Courtyard by Marriott Downtown (Hotel reservation for Joe Moy)
$ 537.00
Total
$2,280.82
AndCo Consulting (3rd Qtr. 17 Consulting Fee -Invoice #23299 dated 9/22/17)
$6,250.00
Benefits USA, Inc. (Flat Monthly Fee for October 2017)
$2,100.00
Davidson, Jamieson & Cristini (Progress Billing -Invoice #R7744 dated 10/2/17)
$6,500.00
Fiduciary Trust Co. Intl. (1St Qtr. 17 Mgmt Fee -R&D; Invoice dated 5/26/17)
$686.86
Fiduciary Trust Co. Intl. (2"d Qtr. 17 Mgmt Fee -R&D Invoice dated 7/26/17)
$1,826.91
Fiduciary Trust Co. Intl. (2"d Qtr. 17 Mgmt Fee-GHA Invoice dated 7/26/17)
$1,404.33
Fiduciary Trust Co. Intl. (2nd Qtr. 17 Mgmt Fee-GAMCO Invoice dated 7/26/17)
$1,194.26
Fiduciary Trust Co. Intl. (2" d Qtr. 17 Mgmt Fee -SAW Invoice dated 7/26/17)
$1,174.70
Sawgrass Asset Management (3rd Qtr. 17 Mgmt Fee -Invoice dated 10/10/17)
$14,568.52
Total
$35,705.58
Pension Payments for Ratification:
Luis Ruiz (Monthly Benefit Payment Eff 11/1/17) $1,609.29
Luis Ruiz (DROP Distribution Rollover) $61,348.50
Robert Rivera (Monthly Benefit Payment Eff 11/1/17) $4,910.11
Robert Rivera (Partial DROP Distribution -Cash out) $62,500.00
Robert Rivera (DROP Distribution -Rollover) $367,196.58
Trustee Moy moved to approve the Consent Agenda and Trustee Pace seconded the motion. The motion
passed.
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Attorney' Report:
Mr. Dehner followed up on Chapter 119 of the Florida Statutes regarding the Public Records request. He
noted that Senate Bill 80 revised the bill which a court must assess and award the reasonable costs
against an agency in a civil action. This amendment prohibits the assessment and award of the
reasonable costs to any person who makes a public records request with the purpose of improper
use. He noted that the request must be made in writing.
Attorney Dehner further commented that the Public Records notice needs to be posted at the City. The
Chairman asked Ms. Giuliani to confirm that the notice was posted.
Letter dated 10/5/2017
Attorney Dehner reported that he and his partner Scott Christiansen have decided to begin the
transition to the next phase of our careers. As a result, they are reducing their workload as
and decided to reduce the number of pension plans that they represent. They have decided to
centralize the clients geographically in order to reduce travel time to still be able to serve as
many clients as possible. As they end their representation with some of their other clients,
they will continue to represent the City of Ocoee Police and Fire Pension Board of Trustees.
Trustees Comments:
Chairman Brown reported that he received a letter from the Chief Actuary Keith Brinkman noting that all
prior valuation reports and impact statements have been state accepted however there are a few items that
need to be addressed by the actuary with regards to the assumption rate and mortality tables. It was noted
that the actuary would be present at the next meeting.
Next Regular Meeting date: February 7, 2018 at 1:00 pm.
Adjournment: The meeting adjourned at 4:00 pm.
Respectfully submitted b
..
Chairman Char., ....._ �......
lie Brown
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
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