05-06-2015 Minutes THE CITY OF OCOEE POLICE OFFICERS' /FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING — MAY 6, 2015
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. The roll
was called and a quorum declared present.
PRESENT: Charles Brown, Bill Wagner, Joe Moy, William Maxwell, and Mark Scalzo
Also present: Lee Dehner Board Attorney, Mr. Tim Nash of Bogdahn Consulting, and Pete Prior
of Benefits USA
ABSENT and EXCUSED:
CALL TO ORDER —
Roll call and determination of quorum
Roll call was taken and it was determined that there was a quorum.
Chairman Brown asked to have the board address the finance officer out of order. Trustee
Wagner moved to do so. Trustee Moy seconded the motion and the motion passed.
APPROVAL OF MINUTES
Approval of Minutes from Regular Meeting dated February 4, 2015. After seeing and hearing no
further changes, Trustee Moy moved to approve the minutes as amended. Trustee Wagner
seconded the motion and the motion passed.
PUBLIC COMMENTS
There were no public comments at this time.
QUARTERLY INVESTMENT UPDATE: Period ending 3/31/2015
Bogdahn Consulting
Mr. Nash provided a brief report on economy noting that Investment returns during the first
quarter of 2015 were positive across the board. Domestically, small and mid cap stocks
outperformed large cap stocks for the second consecutive quarter. International stocks had a
strong start versus domestic indices. Mr. Nash reported that the total fund return for the quarter
was 1.88% vs. the policy index of 1.97 %, for the fiscal year to date and the 1 year period, the
fund returned 5.80% and 9.86% outperforming the policy index of 4.50% and 7.92%
respectively. The total equity fund earned 1.84% for the quarter vs. the equity policy of 2.25 %;
for the fiscal year to date and 1 year period the equity fund earned 7.15% and 11.90%
outperforming the index of 5.25% and 9.04 %respectively. The Total Domestic Equity returned
1.82% for the quarter ranking in the 75` percentile and 8.80% for the fiscal year to date ranking
in the 32 percentile and 16.01 % ranking in the 2 percentile for the 1 year period vs. the index
of 1.80 %, 7.13% and 12.37% respectively. GAMCO 1.94% for the quarter ranking in the 44
percentile, 9.46 for the fiscal year to date ranking in the 13 percentile and 13.86% for the 1
year period ranking in the 14 percentile vs. the Russell 3000 index of - 0.51 %, 4.77% and
8.94% respectively.
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Sawgrass Growth earned 1.70% for the quarter ranking in the 89 percentile, 9.86 for the fiscal
year to date ranking in the 39` percentile and 15.42 for the 1 year period ranking in the 49
percentile vs. the Russell 1000 Growth Index 3.84 %, 8.81% and 16.09% respectively. The
Vanguard Total Stock Market Index returned 1.81% for the quarter ranking in the 56` percentile,
and 7.13% for the fiscal year to date ranking in the 44 vs. the CRSP U.S. Total Market TR
Index 1.81% and 7.14% respectively. Mr. Nash reported that the Total International Equity
returned 1.99 for the quarter ranking in the 94` percentile. And - 2.84% and -9.38% for the
fiscal year and 1 year period vs. the Total International Equity Policy 3.59% -0.36% and -
0.57% respectively. The M &N Overseas returned 1.99% for the quarter and ranked in the 94`
percentile; for the fiscal year to date and the 1 year period M &N was down -2.84% and -9.38%
vs. the MSCI AC World ex USA 3.59 %; - 0.36% and -0.57% respectively. The Total Fixed
Income earned 1.71% for the quarter, 3.69% and 6.45 for the fiscal year and 1 year periods vs.
the fixed income policy of 1.61 %, 3.43% and 5.72 %. Mr. Nash reported that the Templeton
Global Bond fund returned 0.26% for the quarter; -1.35% for the fiscal year and 1.42% for the 1
year period vs. the IM Global Fixed Income Median of 0.06 %, -1.34 % and -0.91 respectively.
American Realty earned 4.45 for the quarter; 6.32% and 12.97% for the fiscal year and 1 year
period vs. the NCREIF ODCE Index of 3.40 %, 6.77% and 13.46 %.
Mr. Nash reviewed the M &N report noting that in reviewing the compliance check list,
Manning and Napier have not performed well five out of the last six quarters and they did not
meet or beat the index in the three year period nor did they rank in the 40 percentile for the
same period. Mr. Nash reported that the CEO and COO changed. Mr. Nash recommended
making a change at this time and noted that he has prepared a document for the board to review
later in the meeting.
Mr. Nash reviewed the international mutual funds with the trustees noting that the WCM Fund is
a very concentrated fund holding 30 positions. Mr. Nash suggested if they do pick this fund, he
suggests an additional fund to offset some of the volatility that may occur. Lee asked Mr. Nash
what he would recommend. Mr. Nash suggested Europacific along with TSW which would
generate additional alpha. Review the fees on tape for the EP and WCM. The board recessed at
2:45pm. The board reconvened at 3:00 pm. Mr. Nash suggested using the WCM and EP for a
total of 79 bps. Bill moved to terminate M &N and move the money 50/50 to WCM and EP.
William seconded the motion and the motion passed.
Mr. Nash suggested reinvesting the dividend check from American Realty. Trustee Moy moved
to do so and Trustee Wagner seconded the motion and the motion passed.
NEW BUSINESS:
Vested Terminated Employee- Vernon Brown
Mr. Prior reported that Mr. Brown contacted our office inquiring about his pension. Mr. Prior said a
calculation had already been done for Mr. Brown when he terminated his employment in 1996 with
6.6767 years of service and eligible for a pension in 2016. This information was communicated to Mr.
Brown and he agreed to wait until 2016 to receive a monthly benefit as a life only or a 10 year certain and
life with benefits of $432.01 or $421.51 respectively.
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UNFINISHED BUSINESS:
Buyout procedure- Finance Department
Ms. Pam Brosonski addressed the board regarding the process of buyout for bargaining and non
bargaining employees. Ms. Brosonski noted that the legislature changed the format that for
pension purposes, the calculation uses base pay and up to 300 hours overtime. The issue at
question is the use of PTO cash in for the employee. Can the money cashed in prior to 2012 be
used as part of the employee pension calculation? Ms. Brosonski said that the money is not used
for credit. Trustee Wagner asked how this would apply to those employees who are not covered
by a CBA. Attorney Dehner said the provisions of the ordinance would cover all employees.
Regarding SB 534 and the posting of the actuarial data, there is a 60 day window to post the
information on the city website. The actuary will send the data to the state per the statute and
also to the pension board. The data contains the information required noting a 2% higher and
lower than the assumed rate of return. Ms. Brosonski asked to determine when the actuary will
provide the data. Chairman Brown directed Benefits USA to contact the actuary to determine the
availability of the report. Some of the information may still be at the fire station. Trustees Moy
and Wagner will go through the files to see if he is in the files.
Discussion of Experience Study being done by actuary
The board reviewed the applicability of the experience study. Trustee Wagner moved to do the
experience study not to exceed $8,000 and Trustee Moy seconded the motion and the motion
passed.
CONSENT AGENDA
For Approval: Warrant #103
Benefits USA, Inc. (Flat Monthly Fee for May 2015 plus postage) $2,108.66
FPPTA (Annual conference registration for Wagner & Maxwell @$500 each) $1,000.00
Total $3,108.66
For Ratification: Warrants #98 -102
Christiansen & Dehner (Services rendered; Invoice #26066 dated 1/31/15) $342.08
Fifth Third Bank (4 Qtr. 14 Custodian Fee - Invoice #4406051 dated 1/8/15) $3,540.31
Garcia Hamilton & Assoc. (Inv #25240 dated 10/20/14) $5,774.37
Total $9,656.76
Benefits USA, Inc. (Flat Monthly Administration Fee - Invoice #03 -2015) $2,100.00
Bogdahn Group (1 Qtr. 15; Consulting Fee - Invoice #11871 dated 3/16/15) $5,500.00
Christiansen & Dehner (Legal Fees; Invoice #28260 dated 2/28/15) $1,766.80
Foster and Foster (Services Rendered Inv #6536 dated 10 /22 /14(never received) $3,621.00
Professional Indemnity Agency (Fiduciary Liability Renewal) $3,870.00
Total $16,857.80
Charles Brown (Expenses for 2015 FPPTA Wall Street) $851.99
Total 851.99
Benefits USA, Inc. (Flat monthly Administration Fee - Invoice #04 -2015) $2,100.00
Sawgrass Asset Management (4 Qtr. 14 Mgmt Fee - Invoice dated 1/9/15) $12,298.00
Sawgrass Asset Management (1 Qtr. 15 Mgmt Fee - Invoice dated 4/8/15) $12,506.00
Total $26,904.00
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Christiansen & Dehner, PA (Legal Fees; Invoice #26419 dated 3/31/15) $426.34
Fifth Third Bank (1 Qtr. 15 Custodian Fees - Invoice #4460928 dated 3/31/15) $3,645.44
Garcia Hamilton Assoc. (1 Qtr. 15 Mgmt Fee - Invoice 25669 dated 4/14/15) $6,741.23
Total $10,813.01
Retirement Benefits for Ratification:
Randell Conyers (Monthly Retirement Benefit effective 5/1/15) $4,514.44
Randell Conyers (DROP distribution - Rollover) $340,000.00
Randell Conyers (DROP distribution -Cash out) $109,257.37
Trustee Maxwell moved to approve the consent agenda as presented. Trustee Moy seconded the
motion and the motion passed.
ATTORNEY COMMENTS:
H. Lee Dehner, Esq.
Senate Bill 172 has now gone to the Governor for signature. This negates the Naples letter but it
may be vetoed. SB242/HB1309 is also in the governor's office stating the plans will have to use
the same discount rate as FRS.
Chairman's report:
Chairman Brown had nothing further to report.
Trustees
Trustee Wagner noted that he would like to know if Trustee Scalzo is going to attend any
educational classes. Trustee Scalzo commented that he is a small business owner and business
has picked up and it appears that he will not be attending any classes and will be submitting a
written resignation from the Board in the near future
NEXT REGULAR MEETING DATE: AUGUST 5, 2015 AT 1 :00 PM.
ADJOURNMENT:
The meeting was adjourned at 3:37 pm.
Respectfully submitted by,
,r
1 /� t
Chairman Ch es Bro n
Contact the City Clerk's Office to listen to an electronic copy of the complete minutes.
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