08-03-2022 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — August 3, 2022
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 William Maxwell
Absent & Excused: Trey Littlefield
Others present:
Brad Hess of AndCo Consulting, Board Attorney Pedro Herrera of Sugarman Susskind Braswell & Herrera,
Doug Lozen of Foster and Foster, and Pete Prior of Benefits USA, Inc.
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 May 4, 2022
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 minutes and Trustee Pace seconded the
motion and the motion passed.
Public Comments:
Quarterly Investments Update: Q/E 6/30/2022
AndCo Consulting
Mr. Hess reported that as we all know, there is no good news for this quarter noting that the economy has
continued to slow down and banks tightened their monetary policy in order to fight inflation. The Federal
Reserve increased interest rates twice for a total of 1.25%. The US labor market strengthened with the
unemployment rate of 3.6% and job growth at 390,000. US Equities declined for the quarter with large
cap being the least negative at -12.2% and mid cap at 21.1 % the worst for the period. Bond market
performance was negative across all sectors for the quarter. TIPS underperformed the US Treasury Bonds
during the quarter as the future expectation for inflation declined.
Mr. Hess reported on the financial reconciliation noting that the market value at the beginning of the
quarter was $74,104,125, the contributions were $789,166, the distributions were-$900,555, the
management fees were $54,918, the other expenses were $48,371, the income was $354,282 and the
appreciation/depreciation was-$7,522,056 for a total ending market value at 6/30/2022 of $66,721,783.
Mr. Hess reported on the performance noting that the total fund net return for the quarter was -9.74% vs.
the fund policy of-10.84%. the total equity return was-15.24% vs. the equity policy of-15.91%; the
domestic equity fund returned-15.60% vs. the domestic equity policy of-16.70%; Brandywine and
DePrince returned-12.13% and -9.18% respectively vs. the Russell 1000 value index of-12.21%
Alger and Mar Vista returned-24.61% and-16.12% respectively vs. the Russell 1000 growth index of
-20.92%. Vanguard returned-16.84% vs. the CRSP total market index of-16.85%. The American Funds
Euro Pacific fund returned -14.65 vs. the MSCI AC World index of-13.54%. The Dodge and Cox return
was not available. The total fixed income return was -4.19% vs. the policy of-4.69%; Garcia Hamilton
returned 3.78% vs. the policy of-4.69%, the Global fixed income return was -6.22% vs. the policy of
-8.91 %; PIMCO Diversified returned -9.10% s. the Blmbg Global Credit index of-6.97%; PIMCO
Global Bond fund returned -3.39% vs. the Bloomberg Global Aggregate Index fund of-4.30%. American
Realty returned 4.84% vs. the NCREIF ODCE index of 4.55%.
Page 1 of 3
Mr. Hess reported that the American Realty portfolio is up 30% for the year and recommends a 700k
redemption to the fund. Trustee Moy moved to accept the Consultants' recommendation and Trustee Pace
moved seconded the motion and the motion passed. There was a brief discussion to move money to
another real estate firm but Mr. Hess stated that he did not recommend it at this time. Mr. Hess also
reported that Alger has not been performing well but we should hold on to them for now. When the
market rebounds and they do not rebound, then that would be the time to review them and perhaps
replace. Mr. Hess stated that Garcia Hamilton has done a great job for this portfolio being defensive on
the down turn, ranking in the 7"' percentile. That concluded the Consultants' report.
NEW BUSINESS:
2022-2023 Proposed Administrative Budget
Mr. Prior reviewed the proposed noting that $10,000 was added to this year's proposed budget for any
miscellaneous expenses for a total of $195,106. That being said, Trustee Pace moved to approve the
budget. Trustee Maxwell seconded the motion and the motion passed.
Firefighter DROP interest election
Attorney Herrera addressed the Board on the interest rate issue noting that the Firefighters Collective
Bargaining Agreement also has a clause that mirrors the Police agreement which states that the interest
rate calculated if there are losses will be 0 (zero). The effective date of the amendment will be retroactive
to October 1, 2021 for the Fire Members. After much discussion, Mr. Herrera noted that an impact
statement and ordinance will need to be prepared as well and he will have the Ordinance for Board
adoption for the next meeting.
UNFINISHED BUSINESS:
Statement of Policy (Actuary)
Mr. Lozen reported that at the last meeting the Board voted to approve amending the threshold amount
from $10,000 to $5,000 per cycle, per unit and this change has been updated.
Retirees with Social Security option (Administrator)
Mr. Prior reported that at the last the meeting, the Board instructed the Administrator to work with the
actuary to determine if there were more retirees affected by the Social Security option. He stated that
they contacted the actuary and discovered that all other retirees' benefits were adjusted properly.
CONSENT AGENDA:
For Approval: Warrant #229
Benefits USA, Inc. (Flat Monthly Fee for August 2022) $2,500.00
Brandywine Global (Q2-2022 Mgmt. Fee -Inv #BW6467 dated 7/20/2022) $6,456.36
Sugarman, Susskind ETAL (Legal Fees -Invoice #170744 dated 7/25/2022) $3,825.00
Total $12,781.36
For Ratification: Warrants #227 & 228
Benefits USA, Inc. (Flat Monthly Fee for June 2022)
$2,500.00
Brandywine Global (Q1-2022 Mgmt Fee -Inv #BW5990 dated 4/25/2022)
$6837.66
Fiduciary Trust (Q1-2022 Custodian Fee -Brandywine; Invoice dated 4/19/2022)
$763.33
Fiduciary Trust (Q1-2022 Custodian Fee-DRZ; Invoice dated 4/19/2022)
$823.70
Fiduciary Trust (Q 1-2022 Custodian Fee-GHA; Invoice dated 4/19/2022)
$2,352.90
Fiduciary Trust (Q 1-2022 Custodian Fee -Mar Vista Invoice dated 4/19/2022)
$709.29
Fiduciary Trust (QI-2022 Custodian Fee -R&D Invoice dated 4/19/2022)
$3,624.22
FPPTA (Annual Conference Registration for Charles Brown)
$875.00
FPPT A (Winter School Registration for Trey Littlefield)
$875.00
FPPT A (Winter School Registration for William Maxwell and Bryan Pace)
$1,750.00
Page 2 of 3
Charles Brown (Per Diem for FPPTA Annual Conference)
Trey Littlefield (Hotel & Per Diem for FPPTA Annual Conference)
William Maxwell (Per Diem for FPPTA Annual Conference)
Bryan Pace (Per Diem for FPPTA Annual Conference)
Sugarman, Susskind ETAL (Legal Fees -Invoice 4169136 dated 5/19/2022)
Total
AndCo (Q2-22 Consulting Fee -Invoice 441257 dated 6/15/2022)
Benefits USA, Inc. (Flat Monthly Fee for July 2022)
Charles Brown (Expenses incurred at FPPTA Annual Conference)
DePrince, Race & Zollo (Q2-2022 Mgmt. Fee -Inv #202202026 dated 7/7/2022)
Foster & Foster (Services Rendered; Invoice #24151 dated 7/8/2022)
MarVista Investment Partners (Q2-2022 Mgmt. Fee -Inv #1134 dated 7/6/2022)
Sugarman, Susskind ETAL (Legal Fees -Invoice # 169 870 dated 6/15/2022)
Total
Pension payments:
$135.00
$772.88
$135.00
$135.00
$446.25
$22,735.23
$7,750.00
$2,500.00
$60.24
$6,723.00
$34,205.00
$5,349.93
$3,315.00
$59,903.17
Sheila Coschignano (Beneficiary payment adjustment) $200.00
Mark BousqUet (Monthly Benefit payments effective 8/1/2022) $4,667.83
Trustee Maxwell moved to approve the consent agenda as presented and Trustee Moy seconded the
motion and the motion passed.
Attorney's Report:
Attorney Herrera had nothing to report at this time.
Administrator's Report:
Mr. Prior reported on FPPTA Trustees School was being held at the Renaissance Sea World on October
2-5, 2022. If anyone wants to attend to please contact the office.
Miscellaneous Correspondence:
No action was needed.
Comments from Trustees:
Next Regular Meeting date: Wednesday, November 2, 2022 at 1:00 pm.
Adjournment: The meeting adjourned at 2:45 pm.
Respectfully submitted by,
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
Page 3 of 3