05-01-2019 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — May 1, 2019
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.
PRESENT: Chairman Charles Brown, William Maxwell, Joe Moy, Trey Littlefield and Bryan
Pace
ABSENT and EXCUSED:
Others present: Tim Nash and Zach Chichinski of AndCo. Consulting, Scott Christensen, Board
Attorney, Pedro Herrera of Sugarman and Susskind, and Fund Administrator Pete Prior.
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 01/30/2019
The Chairman asked the board if there were any corrections, deletions, or additions to the
minutes. Hearing and seeing none Trustee Littlefield moved to approve the minutes and Trustee
Moy seconded the motion and the motion passed.
Approval of Minutes from Special Meeting dated 01/30/2019
Trustee Maxwell moved to approve the special meeting minutes. Trustee Moy seconded the
motion and the motion passed.
PUBLIC COMMENTS:
There were no public comments at this time.
QUARTERLY INVESTMENT UPDATE: Q/E 3/31/19
Mr. Nash addressed the board introducing Zach Chichinski who provided a brief report on the
noting that after the end of the down quarter, the markets came back strongly during the first
quarter of 2019. The large cap S&P 500 Index returned 13.6% for the quarter, the Russell 2000
Small Cap Index returned 14.6% for the period. The S&P 500 returned 9.5%, the Russell 2000
posted a gain of 2.0%. The Russell 1000 returned 9.3% for the year. The Russell Mid Cap
Growth Index returned 19.6% for the quarter. The large cap and small cap value indices had the
lowest returns, both returning 11.9%. The international equity index returns ended the quarter
with MSCI ACWI ex US Index returning 10.3%. The MSCI EAFE Index and the MSCI
Emerging Markets Index returned 10.0% and 9.9% respectively. The sector performance was
strong within the Russell 1000 Index with 5 of the sectors outperforming the index return. Nine
of eleven sectors posted double digits. Technology, Industrials and Energy returned 20.7%,
17.1% and 16.5% respectively. REITs also had a strong performance returning 17.3% and
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financials and health care stocks were the worst performers returning 8.9% and 7.5%
respectively.
Mr. Nash reported on the comparative performance for the 5 year period noting the Fund's
returns of 8.73% for the quarter ranking in the 69th percentile -0.67% for the fiscal year to date
ranking in the 77th percentile, 5.10% for the 1 -year period ranking in the 34th percentile, 6.51%
for the 2 -year period ranking in the 68th percentile, 7.70% for the 3 -year period ranking in the
74th percentile; 5.72% for four years ranking in the 44th percentile and 6.59% for five years
ranking in the 9th percentile of the universe vs. the Fund Policy 8.83%, 0.56%, 5.46%, 7.84%,
8.83%, 6.79% and 7.02% respectively.
Mr. Nash reviewed the compliance checklist which has many negatives stated that he has
explained that earlier in his report. Mr. Nash also provided a handout regarding the attributions
of the plan regarding GAMCO. He stated the firm has not changed anything, have great names in
their portfolio and advised the trustees to stay the course because he feels GAMCO will bounce
back. Based on the performance of GAMCO and concerns of the trustees, Trey asked if it was
applicable to put on them watch for the next three quarters. Mr. Nash stated that we could put
them on watch as of today. Trustee Maxwell's concern is their performance over our time frame
and strategy and perhaps have a plan to replace them. Mr. Nash said he would bring in some
names for Value managers for the next meeting. Trustee Littlefield also asked about their fee as
they are 75 bps. Mr. Nash said the Board could get a similar manager at 60bps. Trustee Maxwell
said he would like to see a list of companies at the next meeting. The Chairman also asked the
Consultant include the Index for comparisons as well.
NEW BUSINESS
Ordinance Adoption
Attorney Christiansen spoke on the ordinance language and reviewed the changes noting that
Section 8, the disability is being amended to more clearly identify those individuals who may be
eligible to apply for a disability. Section 15 amended to provide limitations in the Internal
Revenue Code. Section 17 miscellaneous provisions, section 27 DROP amended to remove
subsection 6H, Section 29 amended the reemployment after retirement and Section 30 amended
the Supplemental Benefit Component.
The Chairman asked for a motion to approve. Trustee Moy moved to approve the changes to the
ordinance. Trustee Littlefield seconded the motion and the motion passed. The Attorney noted
that he would send a copy to the city.
Legal Representation
The Chairman recognized the Attorney and commented on the loss of Lee Dehner, the Boards
Attorney for a very long time and how he will be missed. Attorney Christiansen stated that in the
past, his firm had downsized and since the passing of Lee, they are in the position again. Mr.
Christiansen reported that they are in a strategic alliance with the firm of Sugarman and Susskind
from Miami. Attorney Christiansen noted that this is not binding and the Board can go out to bid
for a new attorney if they so choose. During the transition, Attorney Christiansen said he would
be available for any assistance to the Board. The Chairman asked what kind of time frame the
Board has for the transition? Attorney Christiansen suggested a date of June 1 but on the outside
September 1, 2019.
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Attorney Christiansen introduced Mr. Pedro Herrera. Mr. Herrera thanked the Board for the
opportunity to provide legal services. Mr. Herrera gave a brief history of his work experience
with the Sugarman and Susskind firm noting that he has approximately 15 years of experience.
He graduated with honors from the University of Pennsylvania Law School and earned
accreditation in Business and Public Policy from Wharton School of Business. He received his
bachelor's degree with a double major earning honors from University of Miami in 2000. Mr.
Herrera was also selected to speak at the National Association of Public Pension Attorneys
(NAPPA) in June of 2017. His knowledge and expertise provide insight and ability to
successfully negotiate and secure service provided contracts, investments policies, investment
management agreements and he serves on the Board of Directors for the Coral Gables Bar
association. Mr. Herrera also volunteers his time working with Amigo for Kids an organization
providing opportunities for at risk and impoverished youth in the Miami community. That being
said, the Chairman said if the board does not have any further questions, he would entertain a
motion to accept the firm of Sugarman and Susskind for legal representation. Trustee Maxwell
moved to approve the recommendation of Attorney Christiansen and Trustee Pace seconded the
motion and the motion passed.
UNFINISHED BUSINESS:
Operating Rule and Procedures
Attorney Christiansen reviewed the Operating Rules and Procedures with underline and
strikeouts so the trustees can see the changes. The Chairman asked about the travel policy
regarding trustees staying in hotels for local conferences. It was noted that the board did make
the changes but they were not reflected in the procedures. After discussion, it was determined
that a new policy should be written and Attorney Christiansen will provide the exhibit A. After
reviewing the changes with the board, the Chairman asked the trustees for a motion to approve
the changes as amended. Trustee Maxwell moved to approve the Rules and Procedures as
amended. Trustee Littlefield seconded the motion and the motion passed.
CONSENT AGENDA
For Approval: Warrant #179
Benefits USA, Inc. (Administration Fee for May 2019)
$2,100.00
Fiduciary Trust (Q3-18 Custodian Fee-GHA; Invoice dated 4/16/19)
$1,464.39
Fiduciary Trust (Q3-18 Custodian Fee-GAMCO Invoice dated 4/16/19)
$1,231.51
Fiduciary Trust (Q3-18 Custodian Fee -Mar Vista Invoice dated 4/16/19)
$688.77
Fiduciary Trust (Q3-18 Custodian Fee -R&D Invoice dated 4/16/19)
$2,731.24
GAMCO (Q1-19 Mgmt. Fee -Inv #20190331-157-4967-A dated 4/11/19)
$18,473.00
Mar Vista (Q1-19 Mgmt. Fee -Inv #5253; a/c #41247 dated 4/11/19)
$6,201.39
Joe Moy (Taxi Fare at FPPTA Wall Street)
$116.50
Bryan Pace (Tolls, Parking & Baggage for FPPTA Wall Street)
$285.83
Total
$33,292.63
For Ratification: Warrants #176-178
Benefits USA, Inc. (Flat Monthly Fee for March 2019; Inv #03-2019) $2,100.00
Christiansen & Dehner (Legal Fees -Invoices #33017 & 28646 dated 1/31/19) $2,624.90
Professional Indemnity Insurance (Fiduciary Liability Renewal 3/19/19-3/19/20) $4,025.00
Total $8,749.90
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Bryan Pace (Hotel Reimbursement and Per Diem for FPPTA Wall Street)
Christiansen & Delmer (Legal Fees -Invoices #33091dated 2/28/19)
Foster and Foster (Services Rendered; Invoice #13912 dated 1/30/19)
GAMCO (Q4-18 Mgmt. Fee -Invoice #20181231-157-4967-A dated 1/22/19)
Joe Moy (Per Diem for FPPTA Wall Street)
Total
AndCo (1St Qtr. 19 Consulting Fee -Invoice #30266 dated 3/29/19)
Benefits USA, Inc. (Administration Fee for April 2019)
Foster and Foster (Services Rendered; Invoice #14301 dated 3/26/19)
Total
Pension Disbursements for Ratification:
Jonathan Joseph (Refund of Contributions)
Stanley Kuczinski (Refund of Contributions)
Lee Stephens (Monthly Benefit Payments effective 3/1/19)
Total
$2,028.11
$44.20
$16,877.00
$16,660.00
$300.00
$35,909.31
$6,250.00
$2,100.00
$1,297.00
$9,647.00
$20,103.04
$8,886.19
$4,204.32
$33.193.55
Trustee Maxwell moved to approve the Consent Agenda and Trustee Pace seconded the motion
and it passed.
ATTORNEY REPORT:
Mr. Christiansen reported that Senate Bill 426 passed the legislature and will be effective July 1,
2019. This Bill is the presumption of Cancer Bill noting that Firefighters will be granted certain
benefits upon receiving a diagnosis of cancer if certain conditions are met. This bill will be
requiring an employer to make certain disability payments to a firefighter in the event of a total
and permanent disability; providing for death benefits to a firefighter's beneficiary if a firefighter
dies as a result of cancer or cancer treatments and adjusting the allocation of funds to provide
line -of -duty death benefits for members of the Plan in the Florida Retirement System.
Attorney Christiansen reminded the trustees to file their form 1 financial disclosure forms by
June 30th to avoid a penalty.
ADMINIATRATOR'S REPORT:
Mr. Prior reported that there is one more item to discuss. There is a letter from GAMCO
requesting authorization to use their affiliated Broker-dealer G research for trading and asked
Mr. Nash if he would comment or explain this to the board. Mr. Nash reported that when a
money manager trades, the clearing broker will provide confirmations for each trade, quarterly
statements from GAMCO, a summary of all broker commissions presented on a monthly,
quarterly or annual basis and a report on commissions incurred and the annual turnover ratio for
the account. Mr. Nash said that the Board can terminate this service if they choose. Trustee Moy
moved to deny GAMCO the request and Trustee Littlefield seconded the motion. The motion
passed.
2018 AMENDED BUDGET:
Mr. Prior reported that the 2018 budget that was presented at the August 1, 2018 meeting was
$180,291. The actual expenses for that year were $187,591 which is an overage of $7,290. The
reason for the overage was due to a audit fee not being charged during the 2018 fiscal year.
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Asa result, the 2018 budget was amended to $196,291. That being said, the Chairman asked for
a motion. Trustee Moy moved to amend the 2018 budget and Trustees Maxwell seconded the
motion and it passed.
MISCELLANEOUS CORRESPONDENCE:
No action was needed.
COMMENTS FROM TRUSTEES
Next Regular Meeting date: August 7, 2019 at 1:00 pm.
Adjournment: The meeting adjourned at 2:57 pm..
RespectfU Ily-submi4tco by,
Chairman
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
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