08-05-2015 Minutes CITY OF OCOEE MUNICIPAL GENERAL EMPLOYEES'
RETIREMENT TRUST FUND
BOARD OF TRUSTEES QUARTERLY MEETING MINUTES
City Hall, Commission Chambers
Wednesday, August 5, 2015, at 10:OOAM
TRUSTEES PRESENT: Russ Wagner
Jean Grafton
David Wheeler
Patricia Gleason
Robert Godek
TRUSTEES ABSENT: None
OTHERS PRESENT: Ferrell Jenne, Foster & Foster, Plan Administrator
Tim Nash, The Bogdahn Group, Investment Consultant
1. Call to Order Russ Wagner called the meeting to order at 10:04AM.
2. Roll CaII As reflected above.
3. Public Comments None.
4. Approval of Minutes
a. Russ Wagner asked Tim Nash about the Fifth -Third re- balancing letter discussed
at the last meeting. Tim Nash stated special letters of direction will no longer be
needed.
The minutes from the May 6, 2015, quarterly meeting were approved upon motion by Jean
Grafton and second by David Wheeler, motion carried 5 -0.
5. Consent Agenda
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 briefly reviewed the retiree activity report with the board
and explained that Mr. Bell will receive a retro payment back to his
retirement date of October 1, 2014.
ii. Russ Wagner commented there were quite a few members requesting
benefit calculation estimates since the last meeting.
7. Old Business None.
8. Reports (Attorney /Consultants)
a. The Bogdahn Group, Tim Nash, Investment Consultant
i. Presentation of June 30, 2015, quarterly report and July 31, 2015
update.
1. Tim Nash stated everything looked good as of the fiscal year
halfway point and gave a brief overview of market index
performance. Tim noted the results were preliminary until
American Realty's return information is received in approximately
two weeks.
2. Fiscal- year -to -date market value of the fund was just over 33M.
3. Net earnings for the quarter were at 0.20 %, outperforming the
policy benchmark of 0.06 %.
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4. Fiscal- year -to -date net earnings were 6.84 %, outperforming the
benchmark of 4.54 %.
5. Since inception (April 1, 2004), net earnings were 6.60 %,
underperforming the policy benchmark of 6.70 %.
6. Tim Nash commented that the plan was in the 19t percentile for
the quarter and that no re- balancing was needed since the
portfolio was within ranges stated in the Investment Policy
Statement.
7. Russ Wagner asked what sector Eaton Vance Growth was in.
Tim Nash stated small /mid -cap stocks and that 2.5M was
invested in Eaton which comprised 7.5% of the portfolio.
8. Russ Wagner asked how new contributions were allocated. Tim
Nash stated the new money apportionment follows the
Investment Policy Statement; meaning money is added to
underweighted areas and distributed across all managers.
9. Tim Nash stated real estate has really helped the quarterly
returns, which were up 10.31% fiscal - year -to -date. Tim briefly
reviewed the real estate properties the portfolio was invested in.
10. Russ Wagner asked if the election year will affect the market and
how the board could prepare for these changes. Tim Nash stated
the Plan had a fully diversified portfolio with active management.
These managers should be building the portfolio around any
changes that occur.
11. Russ Wagner commented the City had produced their budget
and noticeable reductions were realized in each department due
in part to the choices the board had made which had resulted in
savings to the City.
12. Jean Grafton thanked Tim Nash for his work.
ii. Review of the Investment Policy Statement (IPS).
1. Tim Nash discussed changes to the IPS.
2. The actuarial assumption changed from 8.0% to 7.75 %, as
approved at the previous meeting.
3. Broad language was used in the IPS under the authorized
investments section. Tim Nash recommended adding additional
language that prohibits buying a building. The new language
stated that real estate investments should not exceed 10% of the
market value of the plan at time of purchase.
4. Tim Nash reviewed additional language added in the real estate
section of the IPS which included, investments shall be managed
by experienced real property managers; the board will seek to
diversify real estate investments by property type, location, size
and number; and these investments are intended to provide a
high level of income, low volatility of return, and low correlation to
other assets.
5. Russ Wagner asked Tim Nash if explicit language needed to be
added stating it's not the intent of the board to invest in individual
properties. Tim Nash stated the language could be problematic
since American Realty can currently invest in land. Tim Nash
suggested adding a line (e) with additional language stating, no
direct purchases of individual real estate properties by the fund,
but stated he would first like to discuss with Lee Dehner.
The board voted to approve the Investment Policy Statement (IPS) as presented
and to amend at a later date to include additional language regarding real estate
transactions upon motion by Jean Grafton and second by Bob Godek, motion
carried 5 -0.
b. Christiansen & Dehner, Lee Dehner, Board Attorney.
i. Lee Dehner was absent from the meeting due to illness. No report was
given.
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ii. Russ Wagner asked Ferrell Jenne if Senate Bill 534 calculations and
reports had been posted on the City's website. Ferrell stated that all
information had been posted and the board was in compliance.
iii. Russ Wagner asked if the 2016 board meeting dates had been
determined. Ferrell Jenne stated Christiansen & Dehner's office would
be sending out a memo of the proposed 2016 dates sometime in
September.
9. Staff Reports, Discussion, and Action
a. Educational Opportunities.
i. Ferrell Jenne informed the board that she would register all trustees for
the FPPTA Conference in Naples by Friday. Russ Wagner and Dave
Wheeler would also be registered for the retirement class.
ii. Russ Wagner stated he would work on getting a tax exempt certificate to
all board members for use when attending conferences.
b. Confirmation of Receipt of Benefits Update.
i. Ferrell Jenne gave an update on the PF -11 mail -out, stating there was
one outstanding retiree who remained unresponsive after two requests
were sent. The board directed Ferrell Jenne to attempt other means of
reaching out to the retiree before they decide to take action on stopping
her benefit.
10. Trustee Reports, Discussion, and Action
a. Discussion of educational opportunities.
i. Russ Wagner and Patricia Gleason commented on past FPPTA
conferences they had attended, stating they were enjoyable and had
always felt like they were expanding their knowledge on public pension
plans.
ii. Russ Wagner mentioned having Foster & Foster conduct a retirement
seminar which would give retirees an education on plan provisions and
social security options. Ferrell Jenne reviewed possible topics for
discussion and offered to provide a fee proposal if there was an interest.
The board requested that Ferrell Jenne provide a fee proposal.
b. Auditor Report.
i. Russ Wagner stated the auditor report would be presented at the next
meeting.
c. Discussion of Board Equipment.
i. Russ Wagner commented that the board owned a computer and
scanner. Russ recommended selling the computer back to the City since
it was no longer being used. The scanner was still in use on behalf of the
board by Sharon Zink to transmit documents to Ferrell Jenne.
The board authorized Russ Wagner to work with the City regarding selling the computer
upon motion by Bob Godek and second by Patricia Gleason, motion carried 5-0.
11. Adiournment The meeting adjourned at 12:05PM.
12. Next Meeting November 4, 2015 at 10:OOAM.
L ctfull s mitted by: App v d by:
(r.....
. rrell Jenne Name: Russ Wagner
Title: Plan Administrator Title: Chairman
Date Approved By the Pension Board: NVvEm �E L i 1 a
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