11-17-1997 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS'
RETIREMENT BOARD MEETING
November 17, 1997
I. CALL TO ORDER
Chairperson Mike Reed called the meeting to order at
1:08 p.m. in the City Hall Commission Chambers Conference
Room. The roll was called and a quorum declared present.
PRESENT: Chairperson Reed, Secretary Ron Strosnider,
Members Nora Gledich and Bob Williams.
ABSENT: Member Tony Wilson.
II. ACCEPTANCE /APPROVAL OF MINUTES
The minutes of the August 6, 1997 board meeting were
discussed. Attorney Dehner requested that the following
corrections be made:
(1) Page 5, Number 4 should be corrected to read
Code Section 401(a)(4).
(2) The paragraph following Number 4 on Page 5
should read "Attorney Dehner" rather than
"Actuary Foster" and "Market Maker" rather than
"Market Wager."
Secretary Strosnider moved to approve the minutes of the
August 6, 1997 board meeting as corrected. The motion was
seconded by Member Gledich. The motion carried unanimously.
III. QUESTIONS /COMMENTS FROM AUDIENCE
There were no questions or comments from the audience.
IV. CERTIFICATION OF ELECTION
Chairman Reed announced that he was re- elected by
acclamation to another term on the board.
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V. REPORTS
A. REPORT FROM ACTUARY. Actuary Ward Foster
presented a report on the performance of the fund as
of October 1, 1997. The total required contribution is
$871,419. The City's cost is $547,000. There was a
reduction in the percentage of payroll cost. An
investment return of 12.2 % was recognized for funding
purposes. The actual market value return was over
20 %. The actuarial value of the fund is $3,685,000.
The actual value of the fund is $4,222,000. The amount
difference is being set aside to be used in a year when
the fund does not perform as well. The assets in the
fund currently cover all the benefits earned. The
minimum funding standards were exceeded. There was a
50% increase in state money between 1996 and 1997.
Member Williams moved the acceptance of the actuary
report dated October 1, 1997. The motion was seconded
by Secretary Strosnider. The motion carried
unanimously.
B. REPORT FROM MONEY MANAGER. Money Manager Michael
Aloian reported that the fiscal - year -to -date return was
22.86 %. During the period covering 9/30/96 to 9/30/97
cash flow grew from $2.8 million to $4.18 million. The
recent volatility of the market due to financial
instability in Asia was discussed. The interest rates
appear to be continuing downward. The next fiscal year
is expected to revert back to the mean of about 10 %.
The viability of investing in small capital funds was
discussed. A fact sheet will be submitted.
C. REPORT FROM PERFORMANCE MANAGER. Actuary Ward
Foster submitted a report covering two years and three
quarters showing growth of the fund from $1.5 million
to $4.2 million, more than achieving the actuarial
expectation by approximately $900,000. Three -year
performance figures will be presented next quarter.
There were no violations of the investment policy
guidelines and objectives at the end of the quarter.
VI. DISTRIBUTION OF MEMBER CERTIFICATES
Chairperson Reed advised that he would make a copy of the
certificates prior to distributing them. Attorney Dehner
explained that there is a special certificate for five
employees in the fund that have some service time with the
general police plan. It accounts for the period of time
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when these individuals were general employees. The five
employees are Conyers, Adams, Bennett, Kelly and Minnick.
VII. OTHER BUSINESS
A. Authorize /Ratify Disability Form. Attorney Dehner
advised that the proposed new form is the same as the
existing one with the addition of the requirement that
a plan member submit a physician's statement along with
the initial application.
Member Gledich moved the acceptance of the form for
disability retirement. Member Williams seconded the
motion. The motion carried unanimously.
B. Discuss /Set 1998 Meeting Dates. The following
dates were submitted by Chairperson Reed for the 1998
quarterly meetings: February 11, 1998; May 12, 1998;
August 13, 1998; and November 17, 1998. The meeting
time will be 1:00 p.m.
C. Authorize /Ratify Payment of Bills. Chairperson
Reed presented a list of bills for the period covering
August 7, 1997 through November 17, 1997. They are as
follows:
SunTrust $ 7,025.73
Foster & Foster $ 575.00
Christiansen & Dehner $ 892.44
Christiansen & Dehner $ 144.43
Member Williams moved that the payment of these bills be
authorized. The motion was seconded by Member Gledich. The
motion was passed unanimously.
D. Selection of Fifth Board Member. Chairperson Reed
submitted a letter from Ron Strosnider requesting
reappointment to the position of board member.
Member Gledich moved to reappoint Ron Strosnider to the
board. Member Williams seconded the motion. The
motion was carried unanimously.
E. Search for Recording Secretary. Louan Roe of
Verbatim Transcripts, Inc., a court reporting firm, was
hired by Chairperson Reed to report the November 17,
1997 meeting. Attorney Dehner advised that a verbatim
record was not necessary for purposes of the board and
that a summary of the actions of the board, or minutes,
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is what is required. Ms. Roe stated that the rates for
court reporting services were considerably higher than
what the board expected to pay for the services of a
recording secretary. There was discussion concerning
ideas for finding a replacement for the prior recording
secretary at a rate of $8.00 to $12.00 per hour. Ms.
Roe agreed to produce minutes, rather than a
transcript, of the November 17, 1997 meeting and for
future meetings until a recording secretary can be
found. However, an invoice for her per diem at the
rate of $50 for the first hour and $25 for each
additional hour would be submitted. Additional
discussion occurred reference the viability of
advertising for the position, checking with temporary
agencies, and asking acquaintances for references.
VIII. ATTORNEY COMMENTS
Attorney Dehner followed up on two items which had been
discussed at the previous meeting. The first, 415(C),
concerning liberalization of contribution limits, passed.
The second, 401(A)(4), concerning nondiscrimination, will
not apply to the Ocoee fund. Board members asked questions
about other state and federal legislation and were advised
that no impact on the Ocoee plan was expected.
IX. ADJOURNMENT
There was a motion by Secretary Strosnider which was
seconded by Member Gledich to adjourn the meeting at
2:35 p.m. The motion carried unanimously.
Respectfully submitted,
/LA d-C-1
L..an •oe, Acting Recording Secretary