02-11-1998 Minutes THE CITY OF OCOEE POLICE OFFICERS '/FIREFIGHTERS'
RETIREMENT BOARD MEETING) - February 11, 1998
Chairman REED called the meeting of the City of Ocoee Police Officers'/Firefighters'
Retirement Trust Fund to order at 1:08 p.m. in the Commission Chambers Conference Room of
City Hall. The roll was called and a quorum declared present.
PRESENT: Chairman Reed, Members Strosnider, Williams (arrived late), and Wilson. Also
present were Actuary Foster, Attorney Christiansen, Money Manager Aloian, and
Recording Secretary Lewis.
ABSENT: Member Gledich (excused).
APPROVAL OF MINUTES
Member STROSNIDER, seconded by Member WILSON, moved to approve the Minutes of
the November 17, 1997 Police Officers' /Firefighters Retirement Trust Fund as presented. Motion
carried 3 -0.
QUESTIONS /COMMENTS FROM AUDIENCE
As he was planning to retire soon, James COSCHIGNANO expressed concern about a
November, 1997 Certificate that had shown a significant difference from a requested acturarial
work -up. Actuary FOSTER said that he would review the history and notify Chairman Reed of
the correct figures. Calculations had been made without using the five year salary history and
revised certificates for all Police/Fire employees would be mailed to Chairman Reed.
Member WILLIAMS arrived to the meeting at 1:18 p.m.
OTHER BUSINESS
AUTHORIZE /RATIFY PAYMENT OF BILLS
In response to Chairman REED about the month end statement from Christiansen & Dehner,
Attorney CHRISTIANSEN said that SunTrust had asked that they send the check back to
SunTrust. Chairman REED explained that the check to Christiansen & Dehner should be
$650.10 rather than $144.45. He asked for ratification of payment, and requested approval of the
Board to present to SunTrust for payment, the following bills:
1. Christiansen & Dehner $650.10
2. Foster & Foster
Acturarial Analysis & Report $1,265.00
Member WILSON, seconded by Member WILLIAMS, moved to authorize and ratify payment
of the bills. Motion carried 4 -0.
REPORTS
ACTUARY
Police Officers'/Firefighters' Retirement Trust Fund
r February 11, 1998
There was no Actuarial Report.
MONEY MANAGER
Money Manager Aloian announced that Baron's magazine had named SunTrust as No. 5 on the
list of all Mutual Fund families in the Country as far as performance and various sector where
they were: tax free bonds, taxable bonds, equity management, etc. He presented the Money
Manager Report, and said that they had a good, strong quarter ending December 31, 1997. It had
been a volatile yet positive period for the Plan.
Discussion ensued about the Plan opening to mid -cap fund, and Money Manager ALOIAN
presented a "Limited Cap Fund" information sheet on mid -cap fund that the Board might discuss
at its next meeting. He said that it might not be a good time for the Plan to proceed with this
until a clear rotation occurred yet it had 175 and 185 approval. SunTrust had done fairly well
with mid -cap even though there had not been a long track with it.
PERFORMANCE MONITOR
Actuary Foster presented an analysis of the investment performance of the Fund for the period
from January 1, 1995, through December 31, 1997, that had been completed. The average
annual rate of return for this period was 19.2 %. This rate of return failed to outperform the
composite index of market indicators (50% S &P 500 Composite Stock Index, 45% Lehman
Brothers Government/Corporate Bond Index, and 5% U.S. Treasury Bills) which averaged
annually a return of 20.0 %. The rate of return of the Total Fund outperformed the composite
index (21.1% vs. 20.7 %) and ranked in the 12 percentile of the Cadence Universe of investment
managers for the one year period ended December 31, 1997. The equity portion of the Fund
failed to outperform the S &P 500 over the trailing one year period (31.4% vs. 33.4 %). This
return ranked in the 21' percentile of the Cadence Universe of investment managers.
ATTORNEY COMMENTS
Attorney CHRISTIANSEN:
1. Announced that legislation pending in Tallahassee might make changes to 175 and 185 by
way of giving us more clear indication of what they were required to do or what they were
allowed to do with local law plans such as Ocoee's.
Clarification would be forth coming on what the Plan was allowed or required to do, and on
provision that says that the State money has to be used for extra benefits for Police Officers
and Firefighters. Over the years the language had been up in the air which had always been
interpreted to mean when compared to the General Employees of this City or the District.
Legislation would define that term in terms of what the General Employees of the City are
getting as a comparison in order to determine whether the State money was being used
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Police Officers'/Firefighters' Retirement Trust Fund
February 11, 1998
properly.
2. Announced that the NASDAQ litigation, a class action suit in federal court where the
brokers had allegedly manipulated stocks and stock prices on the NASDAQ exchange, had
settled the suit for nearly one billion dollars. He did not know how much this Plan would
receive from this action. The time period had been extended. The trades originally were
from between 1989 and 1994. The brokers insisted settling the case from the time period of
1989 to 1997 which was when they were informed by the SEC that they were doing
something improper. Attorney CHRISTIANSEN said that they should soon hear from the
Attorney General's office. A hearing to approve the settlement was scheduled for April, and
it has been projected that they will at least come up with a plan for distribution of the money
in September or October. He will keep the Board posted.
SET NEXT MEETING AGENDA
Chairman REED said that in order to get the meeting agendas out in a timely manner, he had
asked that this item be placed on the agenda. Member STROSNIDER, seconded by Member
WILSON, moved to accept the agenda for the May 12 meeting as presented. Motion carried 4-
0.
kieri Chairman REED announced that the State of Florida, Division of Retirement, had received the
City's Police Officers/Firefighters Retirement Trust Fund, October 1, 1997 Actuarial Valuation
Report, and that they were reviewing the material and would be contacting us when its analysis
was complete.
ADJOURNMENT
Member STROSNIDER, seconded by Member WILSON, moved to adjourn the meeting at
2:05 p.m.. Motion carried 4 -0.
Respectfully submitted,
lc& eki" aeg 4:4)
J die Lewis, Recording Secretary
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