09-11-2018 MinutesCITY OF OCOEE
MUNICIPAL GENERAL EMPLOYEES' RETIREMENT TRUST FUND
BOARD OF TRUSTEES
QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Tuesday, September 11, 2018, at 10:OOAM
TRUSTEES PRESENT: Gequita Cowan
Patricia Gleason
Jean Grafton
Stefanie Wilson
TRUSTEES ABSENT: None
OTHERS PRESENT: Drew Ballard, Foster & Foster
Jeanine Bittinger, Davidson, Jamieson & Cristini
Richard Cristini, Davidson, Jamieson & Cristini
Tim Nash, AndCo Consulting
Lee Dehner, Christiansen & Dehner
Ferrell Jenne, Foster & Foster
Kim Kilgore, Foster & Foster
Robert Briggs
1. Call to Order— Gequita Cowan called the meeting to order at 10:05 a.m.
2. Roll Call — As reflected above.
3. Public Comments — None.
4. Approval of Minutes
The board voted to approve the minutes from the May 2, 2018, quarterly meeting, upon
motion by Jean Grafton, second by Stefanie Wilson; motion carried 4-0.
5. Consent Agenda
a. Warrants #46, #47, and #48 for ratification.
b. Warrant #49 for payment approval.
The board voted to approve the consent agenda as presented, upon motion by Jean
Grafton and second by Stefanie Wilson; motion carried 4-0.
6. New Business
a. Certification of election results, Stefanie Wilson
i. Kim Kilgore reviewed the election results. With 66 votes casted, 30 votes
were for Gary Gleason and 36 votes were for Stefanie Wilson.
The board voted to certify the election results for the elected trustee as Stefanie Wilson,
upon motion by Jean Grafton and second by Pat Gleason; motion carried 4-0.
b. Discussion Ofboard vacancy, Robert GOdekresignation, 5mnl8Dlb8FpUSitk3O
i F8[ReU Jenne let the board know that Robert Briggs was interested in
serving OOthe board. Board discussed their interest iOhaving Robert serve
on the board.
The board voted to approve the appointment of Robert Briqqs as the fifth member of th
board of trustees, upon motion by Pat Gleason and second by Gequita Cowan� motio I n
carried 4-0.
C. Election UfOfficers
|. The Board discussed the election of officers which needed to take place,
ii. GeqUit8 Cowan stated that they would like to table the 9|eCtiOO of officers
until next meeting when the full board iSpresent,
d. Quarterly fund activity report for April 2O'2O18tOSeptember 4'2O18
i. Kim Kilgore briefly reviewed fund activity since the last meeting.
The board voted to approve the fund activity report as presented, upon motion bV Jean
Grafton and second by Stefanie Wilson, motion carried 4-0.
e. Trustee Term Expirations
i G8qUitB Cowan, t8nn expired SeotenlbHr3O, 2018. Member Appointed
1. FerFerrell�Jenne commented that nominations Of the position were
advertised with a deadline Of noon on September 12, 2018.
Gequ/ta Cowan stated she was interested in serving again.
ii. Patricia Gleason, term expired September 3O. 2018' City Appointed
1, Gequi18 Cowan stated that Patricia Gleason was reappointed as
one 0fthe Council appointed trustee aithe August 2'2O18.Council
meeting with a term ending September 3O`2O22.
7. Old Business —NOne.
8. Reports (Attorney/Consultants)
a. Davidson, Jamieson & Cristini, Plan Auditor, Jeanine Bittinger and Richard Cristini
i September 30.2017,audit
1. Richard CriGtiOi reviewed that the plan and Cat8QOhzBd its fair value
nle3SUrSDl8nt within the fair value hierarchy established by
generally -accepted 8CcOUOtinD principles. The Trust had the total
r8CU[[iOg fair V8|Ue Dl88SUreDlgntS as of 8epi8rDb8[ 30' 2017' Of
$37,142'807,and 8SOfSeptember 30'2U16,Of$33.575,445.
2. Richard C[i81iOi stated that they identified risks through nlinUt8S and
industry and found nothing unusual.
3. Richard CriShnireviewed the statement Offinancial condition.
4. Richard CriGtiOifurther stated that they found n0illegal acts, nothing
not approved hythe board, and nOevidence Qfopposing minutes,
5. Richard {|riSbOi reviewed the p|8O'S investments appreciated/
depreciated value during the fiscal years 2O1Tand 2010.
8. Richard CriSUni stated that the total inflows and outflows were C|8OD
and total contributions were in line.
7. Richard ChSdOi [SVevv8d the investment and administrative
expenses stating the percentage Ofnet position went down, which
was good.
8. Richard ChstiDistated that the fund was iO8very good position and
that wise decisions were made on investments.
S. Richard [|hStini reviewed the dollars available tO [)F{(]P participants
were fully -funded.
10. Richard CriStiOi reviewed that the net pension liability of the City
vv8S$555,91O. The p|8O'Sfiduciary net position 8Sgpercentage Of
total pension liability was 98.53%.
11. Richard C[iStini reviewed the sensitivity Of the net pension liability
to changes in the discount rate for 1% higher and 1% lower than
the CU[[eDt rate [f7.75%.
1ZF<iCh8rd CriStini reviewed the changes in the City'S net pension
liability over the last five fiSC8| years.
13. Richard Cristini reviewed the schedule of investment returns for the
last five fiscal years.
14. Richard CriStini stated he did not find any problems with the plan.
ii Contract Renewal for auditing service
1. Jeanine BittiDge[reviewed the changes tOthe proposed contract
which She COrnnn8nt8d was highly discounted. Beginning in 2018`
their fee would bB$16'500'then 2O1S8t$17.000and 2020would
b8$17.500.
The board approved the contract as presented for auditing services to be provided bV
Davidson, Jamieson & Cristini, PA., upon motion by Jean Grafton and second by Stefanie
Wilson; motion carried 4-0.
b. AndCO Consulting, Investment Consultant, Tim Nash
i. Quarterly Report 8SOfJune 30.2018
1. Tim Nash gave an overview Of the market environment during the
p8S[ quarter. Tim COOlOOeO1ed that it was tough for iOte[D8tiOO8|
managers, while small cap managers outperformed.
2. Tim Nash c0DlDl8Dt8d that the emerging nl@A(8t8 were the VVOrSt
performers for the quarter, which make up 25% Of the fUnd'S
portfolio.
3. Tim Nash St8LBd the financial and industrial sectors were the
UOde[p8rfDrOle[S for the 2»u quarter. Tim further commented that
Dodge & Cox was 29% Overweight in the financials sector, giving
reason for them not performing well.
4. Tim Nash reviewed the asset allocations which were in line with the
5. Tim M8Sh reviewed the asset allocation and funded value between
June 2O17tOJune 2018.
0. Tim Nash reviewed the financial D@OCiG| reconciliation for the 2 quarter,
beginning with 8 [O8[het value of $38'340,941 and ending with
$39'110'958.
7. The TUL8| Fund G[OSS Returns for the quarter were 2.32%'
outperforming the benchmark Of 1.39%. Trailing returns for 1' 3,
and 5-year periods were 9.24%, 7.40% and 8.83% respectively.
Since inception (4/1/04), gross returns were 7.04% outperforming
the benchmark of 6.90%.
8. Tim Nash commented the returns for the quarter had very strong
results.
9. Tim Nash stated as of September 11, 2018, the fund had an annual
rate of return of 8.85%.
10. Tim Nash reviewed the returns for GAMCO for the 2 nd quarter. Tim
commented they were a little behind but have outperformed in the
month of July and August for the 3 d quarter.
11. Tim Nash stated that bond managers were finding it difficult to have
positive returns in the US Market during the past quarter, and
further stated that Templeton was up in July to erase the negative
returns in the 2 nd quarter.
c, Christiansen & Dehner, Board Attorney, Lee Dehner
i. Operating Rules and Procedures for board approval
1. Lee Dehner reviewed the revision to the Operating Rules and
Procedures with the board. Lee stated that he would send the final
document to the board upon approval,
Proposed Ordinance due to IRC Changes for board approval
1. Lee Dehner presented the proposed ordinance and explained the
main changes were due to Internal Revenue Code amendments
and its associated regulations, as well as guidance from the
Internal Revenue Service,
The board voted to approve the proposed ordinance as presented, upon motion by Jean
Grafton .and second by Stefanie Wilson; motion carried 4-0.
iii. Lee Dehner reminded Robert Briggs to file the Form 1 and noted that
trustee Robert Godek would need to file the financial disclosure within 60
days of leaving the board.
Note: Tim Nash left at 11:20, a.m.
iv. Lee Dehner will prepare next year's board meeting dates to present at the
next quarterly meeting
d. Foster & Foster, Plan Actuary, Drew Ballard
i. Presentation of online calculator/web administration options.
1, Drew Ballard stated it was a web -based application with high-tech
security requiring no hardware installation.
2. Drew Ballard stated it was fully customizable to accommodate the
plan's provisions which Foster & Foster will maintain,
I Drew Ballard reviewed the features for the members and the
t[USt88S. Drew stated all estimated C@|CU|8boOS and green Sh68tS
would bHstored for members tOaccess.
4. Pat Gleason asked how many plans had purchased this
application. [}revu Ballard stated that five plans who had
purchased. G8quit8Cowan requested two references for the
board tOcontact.
5. Fe[[B|| Jenne stated the portal vv0U|d be used for estimates only
and that final calculations would still behandled hVthe plan
administrator.
6. [}[BVV B8||8[d stated 8 p8VrO|| feed from the City would need to be
provided for each pay run tO provide real-time online benefit
access for members.
7. Drew Ballard stated h8would attend the next board meeting tO
show how 10run 8retirement estimate Dnthe application since
there were technical issues during his presentation.
8. The costs Ofthe new online web portal would bg$15'0O0 aODU8Uy
with the City`Sbi-VV88h|ypayroll feeds D[$10'0O0annually using
the actuary's numbers with 8$1O'0OOset-up fee.
8. The board vvOU|d like tOtable the discussion until the next meeting
for further discussion.
1O.Robert Briggs stated they would need tOtalk tOthe finance
department 1Opresent what would beneeded and ifthey could
provide.
Staff Reports, Discussion, and Action
a. FOster& Foster, K]0 Kilgore/Ferrell Jenne. Plan Administrators
i Member pension workshop
1. K]nl Kilgore gave an overview of the DeOSiOO VvOrk8h0D presented
by Foster & Foster which was attended by Over 100 rn8rnb8nG.
G8qUit8 Cowan stated the rOe0be[8 were V8rV 8ppF8Ci8UVe of the
nl88tiDgs` especially explaining the annual green sheets. GeqUit8
Cowan commented she wanted tOmake this 8routine event for the
members. Pat Gleason requested that the board be notified of the
next meeting, SOthey could attend.
ii. Educational Opportunities
1. Kim Kilgore reviewed the fO||Ovving UpCOnninQ edUC8tiOO@|
opportunities.
a. FPPTAFall Trustee School, September 30,2018—October
2, 2018, Bonita Springs, Florida.
b. Division Of Retirement COnf8rSnC8, November 14 — 16'
2018, Orlando, Florida
11. Adjournment — The meeting adjourned at 12:05 p.m.
12. Next Meeting — Wednesday, November 7, 2018, quarterly meeting,
Repectfully submitted by:
Name: Kim Kilgore
Title: Plan Administrator
Approved by:
o
"N, ar e: Geguita Cowan
Tiife: Vice Chair