11-06-2019 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — November 6, 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.
Trustees Present: Chairman Charles Brown, Bryan Pace, Joe Moy and Trey Littlefield
Absent and Excused: William Maxwell
Others present:
Tim Nash of AndCo. Consulting, Board Attorney, David Robinson 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 from Regular Meeting dated 8/7/19
Chairman Brown asked the board if there were any corrections, deletions, or additions to the minutes.
Hearing and seeing none Trustee Moy moved to approve the 8/7/19 regular meeting minutes and Trustee
Pace seconded the motion and the motion passed.
Approval of Minutes from Special Meeting dated 10/3/19
Trustee Moy moved to approve the 10/3/19 special meeting minutes and Trustee Littlefield seconded the
motion and the motion passed.
Public Comments:
There were no public comments at this time.
Quarterly Investments Update: Q/E 9/30/19
Mr. Tim Nash addressed the board providing a brief report on the economy. Mr. Nash noted on page 20
of the report that the plan earned only 3.23% for the fiscal year noting that it was a tough year for the
stock market.
Mr. Nash noted that US small cap and international indices declined. large cap stocks outperformed small
cap equities during the quarter with the S&P 500 Index returning 1.7% versus a -2.4% return on the small
cap Russell 2000 Index. US equity returns for the 1 -year period were positive for large and mid -cap
stocks, returning 4.3% and 3.2% respectively, but small cap stocks declined -8.9%. International markets
posted negative returns for the 3rd quarter. Developed markets continued their outperformance relative to
emerging markets during the period with the MSCI EAFE Index declining -1.1% vs. the MSCI Emerging
Markets Index of -4.2%. Both developing and emerging markets were slightly down for the 1 -year period,
returning -1.3% and -2.0% respectively. Energy was the worst performer of the year. Mr. Nash reported
that Fixed income returns outperformed equities during the 3rd quarter. The Bloomberg Barclays
Aggregate Index gained 2.3% as interest rates fell following central bank stimulus from the Federal
Reserve. Bonds outperformed the equities for the 1 -year period with the Bloomberg Barclays Aggregate
posting a solid 10.3% return. Mr. Nash reported on the returns noting that the total fund returned 0.51%
for the quarter and 2.88% for the 1 -year period vs. the fund policy of 1.05% and 5.20% respectively. The
equity fund returned 0.06% and 1.72% vs. the equity policy of 0.45% and 2.04% respectively. Domestic
equity returned 0.39% and 1.91% vs. the domestic equity policy of 1.16& and 2.92% respectively.
GAMCO was down -0.02% and -1.67% vs. the Russell 3000 value of 1.23% and 3.10% respectively.
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Vanguard Total Stock Market Index returned 1.09% and 2.89% vs. the CRSP index of 1.11 % and 2.92%
respectively. Alger Capital was down -1.05% and 1.50% vs. the Russell 1000 Growth Index of 1.49% and
3.71% respectively. Mar Vista returnedl.55% and 8.03% vs. the Russell 1000 Growth index of 1.49%
and 3.71% respectively. American Funds Europacific Growth declined -1.59% and 1.14% vs. the MSCI
AC World ex USA index of -1.70% and -0.72% respectively. Total Fixed Income fund returned 1.65%
and 7.38% vs. the fixed income policy of 2.27% and 10.30% respectively. Domestic Fixed Income
returned 2.53% and 8.49% vs. the Domestic Fixed Income Policy 2.27% and 10.30% respectively.
Garcia Hamilton returned 2.53% and 8.49% vs. the Barclay's Aggregate of 2.27% and 8.49%
respectively. Templeton Global Bond declined -3.31% and 1.16% vs. the FTSE World Government Bond
Index 0.85% and 8.13% respectively. American Realty 1.44% and 6.81% vs. the NCREIF ODCE index of
1.38% and 6.16% respectively.
Mr. Nash suggested to the board that he bring in a search for a new value manager replacing GAMCO.
This will give them an extra quarter to turn the portfolio around.
Mr. Nash reported on the fees noting that the fees are 0.49% of the market value of $57,557,871 for an
estimated fee of $283,618. Mr. Nash further reported on the asset allocation noting that Equities are 63%
of the portfolio which is in line with the 60% allocated and includes the International Equity is 10.21%,
fixed income is 24.99%, which consists of domestic fixed income of 21.4% and global fixed income of
3.59°/x, real estate is 10.22% and cash and cash equivalents are 2.11%.
Finally, Mr. Nash reported on the compliance checklist noting that all managers with the exception of
GAMCO have exceeded their benchmark over the 3 -year period. He also noted that all managers except
GAMCO had less than 4 quarters of underperformance. The Fund is also PFIA compliant.
I�`I INi' : II.`Si►iDE.X`�
Ordinance Clarifying benefits & amending DROP language
The Attorney reviewed the changes in the ordinance with the board noting that changes were made to the
rights to credited service for any Member who leaves the employ of the Police or Fire Department for any
cause other than death or retirement prior to satisfying the requirements for Early or Normal Retirement,
shall be determined in accordance with Section 9; Firefighter hired prior to October 1, 2015, who has
fewer than five (5) years of Credited Service upon termination; Firefighter hired on or after October 1,
2015, who has fewer than seven (7) years of Credited Service upon termination; Police Officer hired prior
to May 16, 2017, who has fewer than five (5) years upon termination; Police Officer hired on or after
May 16, 2017, who has fewer than (7) years upon termination the Member may make a written request
for a refund of his or her Accumulated Contributions, or, pending the possibility of being re-employed as
a Police Officer or Firefighter, the Member may leave his or her Accumulated contributions in the System
for a period of up to five (5) years following the termination. The Member's Accumulated Contributions
shall be refunded upon written request, or upon the expiration of the five-year period, whichever is
earlier, provided that if the total of the Accumulated Contributions is greater than $1000, said
contributions shall be refunded only upon the written request of the Member, and upon the completion of
a written election to receive a cash lump sum or to rollover the lump sum amount on forms designated by
the Board.
The other change was made to the DROP section which was amended to say that after a Member
commences participation in the DROP, no changes to such Member's form of benefit election shall be
permitted. That being said, Trustee Moy moved to approve the Ordinance amendments and Trustee
Littlefield seconded the motion and it passed.
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Mr. Nash noted that the Board's attorney had discussed making some amendments to the Investment
Policy Statement. Mr. Nash said he will work with the attorney to revise the IPS. Trustee Pace moved to
authorize the Consultant to work with the Attorney to make the changes. Trustee Littlefield seconded the
motion and the motion passed.
FPPTA 2020 Membership Renewal
Mr. Prior reported that the annual membership is now $620 and is due by December 31. He noted that it
was on the Warrant for approval. Trustee Moy moved to accept the membership dues and Trustee
Littlefield seconded the motion.
2020 Meeting Dates
Mr. Prior reported on the 2020 meeting dates noting that the dates are 2/5, 5/6, 8/5 and 11/4/2020.
Trustee Pace moved to accept the meeting dates as presented and Trustee Littlefield seconded the motion
and it passed.
Hard copy file transfer
Mr. Prior reported that the previous attorney sent a letter asking if the Board wants to receive the files for
documents they have and any disabilities they have processed. They have provided the new Attorney with
the files. Attorney Robinson noted that he will contact the previous attorney and ask for the index of what
he has. Trustee Moy stated that there are members files at the fire station.
Unfinished Business:
Amended Operating Rules and Procedures (Attorney)
The Attorney spoke on the rules and procedures noting that the changes will be incorporated into these
procedures and the Board will need them at the next meeting.
Proposed Ordinance Amendment Ord #2010-019
Chief Brown noted that he has been inquiring about when this Ordinance will be passed but he has not
received a response.
Consent Agenda:
For Approval: Warrant #187
AndCo (Q3-19 Consulting Fee -Invoice #33135 dated 9/27/19)
Benefits USA, Inc. (Flat Monthly Fee for October 2019)
Benefits USA, Inc. (Flat Monthly Fee for November 2019)
Fiduciary Trust (Q3-19 Custodian Fee-GAMCO Invoice dated 10/16/19)
Fiduciary Trust (Q3-19 Custodian Fee-GHA; Invoice dated 10/16/19)
Fiduciary Trust (Q3-19 Custodian Fee -Mar Vista Invoice dated 10/16/19)
Fiduciary Trust (Q3-19 Custodian Fee -R&D Invoice dated 10/16/19)
Foster & Foster (Service Rendered; Invoice #15597 dated 10/28/19)
FPPTA (2020 Annual Membership Renewal)
GAMCO (Q3-19 Mgmt Fee -Invoice #20190930-157-4967-A dated 10/11/19)
Garcia Hamilton (Q3-19 Mgmt Fee -Invoice #31038 dated 10/4/19)
Mar Vista (Q3-19 Mgmt Fee -Invoice #6190 dated 10/11/19)
Sugarman & Susskind (Legal Fees -Invoice #142496 dated 10/10/19)
Total
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$6,250.00
$2,100.00
$2,100.00
$1,258.08
$1,531.48
$740.76
$2,918.28
$1,660.00
$620.00
$18,871.00
$7,688.28
$6,689.98
$1,020.00
$53,447.86
For Ratification: Warrants #184-186
Davidson Jamieson & Cristini (Final Billing Re: 9/30/18) Audit)
$11,500.00
FPPTA (Fall Trustees School Registration for 5 Trustees)
$3,350.00
Charles Brown (Hotel Reimbursement & Per Diem for FTS)
$675.00
Trey Littlefield (Hotel Reimbursement & Per Diem for FTS)
$675.00
William Maxwell (Hotel and Per Diem for FTS)
$675.00
Joe Moy (Hotel Reimbursement & Per Diem for FTS)
$675.00
Bryan Pace (Hotel Reimbursement & Per Diem for FTS)
$675.00
Total
$18,225.00
Benefits USA, Inc. (Flat Monthly Fee for September 2019)
$2,100.00
Davidson Jamieson & Cristini (Remaining charge from Final Billing Inv #R8158)
$5,000.00
(Final billing should have been $16,500 but invoice only reflected $11,500)
$232,754.09
Sugarman & Susskind (Legal Fees -Invoice #140961 dated 8/12/19)
$1,445.00
Sugarman & Susskind (Travel Exp for Pension Board meeting Inv #141586 dtd 9/10/19)
$1,807.51
Total
$10,352.51
Charles Brown (Hotel Taxes for FPPTA Trustees School)
$73.29
William Maxwell (Hotel Tax and Mileage expenses for FPPTA Trustees School)
$301.71
Poinsett Littlefield Hotel Tax and Mileage expenses for FPPTA Trustees School)
$257.73
Joe Moy (Hotel Tax and Mileage expenses for FPPTA Trustees School)
$243.81
Total
$876.54
Pension Disbursements for Ratification:
Yancy Cleveland (DROP distribution)
$409,333.23
Steven Ellis (Monthly Benefit payments effective 11/1/19)
$6,921.04
Stephen McCosker (Monthly Benefit payments effective 10/1/19)
$6,510.76
William Richardson (Monthly Benefit payments effective 9/1/19)
$1,878.50
William Richardson (DROP distribution)
$77,611.32
William Richardson (Share Plan Distribution)
$3,264.07
Alan Savoie Refund of Contributions)
$2,971.41
Lee Stephens (Share Plan Distribution)
$5,690.83
David Stone (Monthly Benefit payments effective 10/1/19)
$995.19
Charles Weagraff (Refund of Contributions)
$9,843.15
Steven McCosker (DROP Distribution)
$232,754.09
Steven McCosker (Share Plan Distribution)
$7,491.31
Total
$525,019.50
Trustee Moy moved to approve the consent agenda and Trustee Pace seconded the motion and the motion
passed.
Attorney's Report:
The attorney had nothing further to report.
Administrator's Report:
Mr. Prior had nothing further to report.
Miscellaneous Correspondence:
No action required.
Comments from Trustees:
The Trustees had nothing further to discuss.
Next Regular Meeting date: February 5, 2020 at 1:00 pm.
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Adjournment: The meeting adjourned at 2:57 pm.
Respectfully s ipitted by,
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
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