05-06-2015 Minutes CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES'
RETIREMENT TRUST FUND
BOARD OF TRUSTEES QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, May 6, 2015 at 10:OOAM
TRUSTEES PRESENT: Jean Grafton
Russ Wagner
David Wheeler
Patricia Gleason
Robert Godek
TRUSTEES ABSENT: None
OTHERS PRESENT: H. Lee Dehner, Board Attorney
Ferrell Jenne, Plan Administrator
Gene Williford, City Liaison
Tim Nash, Performance Evaluator
1. CaII to Order Russ Wagner called the meeting to order at 10:10AM.
2. Roll CaII As reflected above.
3, Public Comments Russ Wagner expressed the board's condolences to Pat Gleason
for the loss of her husband.
4. Approval of Minutes
The minutes from the February 4, 2015, quarterly meeting were approved upon motion by
Jean Grafton and second by David Wheeler, motion carried 5 -0.
5. Consent Agenda Russ Wagner directed Ferrell Jenne to include the signed warrants
for the invoices being ratified.
The consent agenda items were approved upon motion by David Wheeler and second by
Bob Godek, motion carried 5 -0.
6. New Business
a. Quarterly Retiree Activity Report.
i. Russ Wagner asked Ferrell Jenne to include a line on the report showing
PLOP amounts.
ii. Russ Wagner briefly reviewed the report with the board.
iii. The board had no questions.
Gene Williford arrived at 10:15AM.
7. Old Business- None.
8. Reports (Attorney /Consultants)
a. The Bogdahn Group, Performance Evaluator, Tim Nash.
i. Presentation of March 31, 2015, Quarterly Report.
1. Tim Nash gave a brief economic review. Investment returns
during the first quarter were positive across the board.
Domestically, small and mid -cap companies outperformed large
cap companies for the second consecutive quarter, due largely
to a strengthening US dollar.
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2. Total market value of assets as of March 31, 2015, were
approximately 33M.
3. Net earnings for the quarter were 3.13 %, outperforming the
policy benchmark of 1.95 %.
4. Since inception, the fund is at 6.74% (net), underperforming the
policy benchmark of 6.85 %.
5. Tim Nash stated that there was no need for rebalancing at this
time. Mr. Nash also stated that overall; it was a very good
quarter for the fund.
6. Russ Wagner asked about American Realty Fund's delay in
quarterly reporting. Tim Nash commented that they do a
separate evaluation of their properties and this takes 45 -60 days
after each quarter ends.
7. Tim Nash stated that Brown Advisory did well for the quarter,
and understands this manager has been a concern for the fund
due to poor performance in the past.
8. The board had no questions.
ii. Fifth Third Re- Balance Letter.
1. Tim Nash informed the board that Fifth Third is requiring money
amounts.
2. Legal council agreed to a letter drafted by The Bogdahn Group
which allows them to move money in- between accounts without
having to get the chairman's signature every month.
3. Russ Wagner expressed concerns and questioned if the auditor
will be acceptable with this process.
4. Jean Grafton asked if all custodians were following this process.
Tim Nash commented, it's only Fifth Third, however, fees are
very low with them and his firm can accommodate requests
without asking for a fee increase from the board as a result. Lee
Dehner made a request to review the proposed letter before any
action is taken.
b. Christiansen & Dehner, Board Attorney, Lee Dehner.
i. Legislative Updates.
1. Senate Bill 534, submittal of the financial report, with actuarial
disclosures to the State, must be done within sixty (60) days of
valuation approval and posted on the City's website. The
Division of Retirement just issued the format last week and the
actuary is working on completing this. The Division will only post
calculations pertaining to the statute on their website. The City
website can include all calculations. Russ Wagner stated he will
work with IT to see if he can make the report easier to access.
2. Senate Bill 242 (HB 1309), requires all local law plans to use the
FRS mortality table. This is a more conservative table and will
cause the plan to increase funding. This bill is on its way to the
Governor's office and is anticipated to become law.
3. Senate Bill 172, Lee Dehner gave a brief overview, but this Bill
does not affect the board since it deals with the allocation of
State monies.
4. Lee Dehner informed the board that he is currently working on
amending the plan for tax compliance.
5. Lee Dehner gave a brief overview of the IRS favorable
determination letter.
ii. Russ Wagner stated that a member went from part time to full time and
the City did not withdraw contributions, nor did they make contributions
for approximately 29 weeks. Russ asked what the options are for the
member to pay back contributions owed for the 29 weeks and what the
options are for date of entry. Mr. Wagner asked Lee Dehner if the
member's date of entry can start the day he started making contributions
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to the plan. Lee Dehner stated that the employee and employer
contributions must be paid back since the Ordinance requires
membership from the point full -time employment begins. Mr. Dehner
requested that he be sent the specifics so he can further review and
advise on the situation. Russ Wagner requested that the City reimburse
the fund for Lee's time spent on reviewing the situation.
9. Staff Reports, Discussion, and Action
a. Educational Opportunities.
i. Ferrell Jenne informed the board that the Division of Retirement
Conference is being held in Tallahassee from June 2 -4.
ii. Ferrell Jenne informed the board that the FPPTA will hold its annual
conference in Boca Raton from June 28 -July 1.
1. Pat Gleason expressed her interest in attending the conference
in Boca Raton. Ferrell Jenne stated that she will contact FPPTA
to see if she can get Ms. Gleason registered.
iii. Ferrell Jenne informed the board that she will register all Trustees for the
Trustee School in Naples, October 4 -7, as discussed at the last meeting.
Ferrell will also facilitate the payment for Bob Godek to take the
advanced class exam.
b. Dual Office Rule.
i. According to the dual office rule, Bob Godek can't serve on two boards
as an elected member. Bob stated that he would like to stay on the
pension board and will vacate his position on the code enforcement
board. Mr. Godek will confirm later in the year that this occurred.
c. Update on Retiree Letter, Form PF -11.
i. Ferrell Jenne gave the board an update and was directed to send
certified letters to those retirees who haven't responded, along with Lee
Dehner's follow -up letter.
d. Statement of Financial Interest.
i. Ferrell Jenne reminded the trustees to submit Form 1, Statement of
Financial Interest, no later than July 1, 2015 to avoid fines.
10. Adiournment The meeting adjourned at 11:35AM.
11. Next Meeting Wednesday, August 5, 2015 at 10:OOAM.
Respectfully sub fitted by: Ap ed by
L AAii
• rr 1 Jenne Name: Russ Wagner
Title: Plan Administrator Title: Chairman
Date Approved By the Pension Board: 0 Q0
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