02-03-2016 Minutes THE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS'
RETIREMENT FUND BOARD MEETING
150 N.Lakeshore Drive,Ocoee,FL
February 3,2016
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
was declared present.
PRESENT: Charles Brown,William Wagner and Joe Moy
ABSENT and EXCUSED: Bryan Pace and William Maxwell
Others Present: Lee Dehner, Board Attorney, Tim Nash of Bogdahn Consulting, Doug Lozen of Foster
and Foster and Livia Giuliani of Benefits USA.
CALL TO ORDER—
Roll call and determination of quorum
Roll call was taken and it was determined that there was a quorum.
Approval of Minutes from Regular Session dated November 4,2015
Trustee Wagner moved to approve the minutes as presented Trustee Moy seconded the motion and the
motion passed.
Approval of Minutes from Special Disability Hearing for Eric Collado dated November 4,2015
Trustee Moy moved to approve the special meeting minutes and Trustee Wagner seconded the motion.
The motion passed.
PUBLIC COMMENTS:
There were no public comments at this meeting.
QUARTERLY INVESTMENT UPDATE: Period ending 12/31/2015
Mr.Nash reported that the 4th quarter of 2015 saw broad equity markets recover some of the losses experienced
during the previous quarter.The majority of the 4th quarter's returns were generated during the month of October as
markets reacted positively to news that several major central banks,notably Europe and China,would inject
additional stimulus into their economies. Mr.Nash reported that,domestic equity market indices all posted positive
results for the 4'quarter. US fixed income indices were all negative for the 4th quarter.Performance for the 4th
quarter echoed throughout calendar year 2015 as both large cap and growth were the best performers over the
trailing one-year period. Similar to large cap, small cap posted positive returns with the exception of the consumer
discretionary and energy,posting negative returns of-3.1%and-8.0%respectively.However,in contrast with the
large cap benchmarks,only two sectors,health care and information technology,managed to post positive returns of
8.6%and 2.7%respectively.Mr.Nash reported that for the quarter,the Fund has a net return of 2.57%vs.the Fund
Policy of 3.51%. The total equity fund posted a positive return of 3.92%vs.the equity policy of 5.52%. The
Domestic Equity fund returned 4.06%vs.the Domestic Equity policy of 6.27%. GAMCO returned 2.72%vs.the
Russell 3000 Value index of 5.41%. The Vanguard Total Stock Market Index returned 6.26%vs.the CRSP U.S.
Total Market TR Index 6.25%. Sawgrass Growth Fund returned 3.62%vs.the Russell 1000 Growth index of
7.32%. The International Equity and Euro Pacific posted a 2.97%return vs.the International Equity policy and the
MSCI AC World ex USA of 3.30%. The total Fixed Income fund posted a positive 0.25%vs.the Fixed Income
policy of-0.27%.In the Domestic Fixed Income Fund Garcia Hamilton had a negative return of-0.10%vs.the
Domestic Fixed Income Policy of-0.57%. The Templeton Global Bond Fund posted a positive return of 2.29%vs.
the Total Global Fixed Income Policy-1.23%and American Realty returned 3.03%vs.the NCREIF ODCE of
3.34%.
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Mr.Nash reported that the market value at 10/1/15 was 41,525,643;the Contributions totaled 599,008;
the distributions were-963,875;the management fees were-42,057;the other expenses totaled-34,879;
the income generated was 360,749;and the appreciation/depreciation was 750,778 for a total market
value at 12/31/15 of$42,195,367. Mr. Nash reported that on the Compliance checklist noting that the
total fund beat or exceeded the Benchmark for the 3 and 5 year periods and ranked in the 40`h percentile
of the universe. The Fund also beat or exceeded the actuarial assumption in the 3-year period but not the
5-year period. The Equity Fund did not meet the benchmark for the 3 and 5-year period and did not rank
in the 40th percentile. The Equity allocation was in compliance with less than 70% of domestic equity and
less than 25%of foreign equity. The fixed income fund met or exceeded the benchmark and ranked in the
40th percentile for both the 3 and 5-year periods and 85%of the fixed income investments are investment
grade or higher.
NEW BUSINESS:
Presentation of 10/1/15 Actuarial Valuation
Mr. Lozen reported on the contribution requirements noting that the Total Required Contribution
%of Total Annual Payroll for fiscal year ends 2017 and 2016 are 37.71%37.28%respectively. The total
member contributions are 8% of annual payroll. The City may use up to$421,323.57 in State
Contributions for determining its minimum funding requirements. For budgeting purposes,the required
City and State Contribution is 29.71%of Pensionable Earnings for the fiscal year ending September 30,
2017. The actual City requirement for the year is this amount, less actual State Contributions(up to the
maximum$421,323.57). Mr. Lozen reported that the City has a prepaid contribution of$11,692.67 that
may be utilized for the fiscal year ending September 30,2016. The actual state contribution received was
approximately$517,000.
Mr. Lozen reported that the Plan experience during the last 12 months was more favorable than expected,
relative to the actuarial assumptions. This favorable experience was due a 10.11% investment return,
which exceeds the 8% assumption and increases in pensionable compensation These gains were partially
offset by lower than expected employee turnover. Mr.Lozen reported on the new legislation regarding the
state contributions noting that the City and Collective Bargaining must come to a mutual agreement on
how the money should be allocated. Mr. Lozen said$505,000 is the baseline and that the City will receive
50%and the remaining 50%will be used to fund a Share Plan. Attorney Dehner recommended a
separate document be prepared stating how the money should be split. Mr. Lozen stated that the Board
will have to authorize him to prepare a calculation for a Share plan. Trustee Wagner moved to authorize
the actuary to prepare a calculation for the Share Plan and Trustee Moy seconded the motion and it passed
3-0.
Mr. Lozen reported on the participant data noting that as of 9/30/15 there are 113 active members; 36
service retirees, 1 beneficiary and 6 disabilities; 10 DROP retirees and 25 vested terminated members.
The Total Annual Payroll$7,431,245 a decrease from the 2014 amount of$7,712,990.
Mr. Lozen reported on the experience study noting that the mortality tables should be changed and that he
recommends that the Board adopt all the changes in the study. He stated that if all the changes are adopted
it will be a 5%increase to the City. Mr. Lozen said the Board did not have to make a decision at today's
meeting. It was determined that since there were only 3 trustees,this item be tabled until the next
meeting when there is a full Board.
That being said Attorney Dehner noted that a motion was in order to approve the 10/1/15 actuarial
valuation as presented. Trustee Moy moved to approve the valuation and Trustee Wagner seconded the
motion. The motion passed 3-0. Attorney Dehner further stated that a second motion needed to be made
to determine the annual rate of return of 8% for the current year and future years. Trustee Moy moved to
approve the rate of return and Trustee Wagner seconded the motion. The motion passed 3-0.
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UNFINISHED BUSINESS:
There was no unfinished business discussed.
CONSENT AGENDA:
For Approval: Warrant#118
Benefits USA,Inc. (Admin Fee for February 2016) $2,100.00
Fifth Third(4th Qtr. 15; Custodian Fee-Invoice#4699561 dated 1/7/16) $3,533.28
Foster&Foster(Services Rendered Invoice#8286 dated 1/27/16) $16,960.00
Garcia Hamilton (4th Qtr. 15 Mgmt Fee-Invoice#26540 dated 1/11/16) $6,669.15
Sawgrass Asset Management(4"'Qtr. 15;Mgmt Fee-Invoice dated 1/11/16) $12,245.00
Total $41,507.43
For Ratification: Warrants#115-117
Bryan Pace(Resort Fee Reimbursement from FPPTA Trustees School) $30.00
William Wagner(Resort Fee Reimbursement from FPPTA Trustees School) $30.00
Davidson,Jamieson &Cristini(Final Billing 9/30/14 Audit; Inv#R7449 dtd 10/19/15) $7,000.00
Fifth Third Bank(31d Qtr. 15 Custodian Fee-Inv#4642732 dated 10/7/15) $3,404.39
FPPTA(2015 Re-Certification Fee for Charles Brown; Invoice#18752 dtd 11/10/15) $30.00
FPPTA(2015 Re-Certification Fee for William Maxwell; Invoice#18684 dtd 11/10/15) $30.00
FPPTA (2015 Re-Certification Fee for Joy Moy; Invoice#18844 dtd 11/10/15) $30.00
FPPTA(2015 Re-Certification Fee for William Wagner; Invoice#18877 dtd 11/10/15) $30.00
Total $10,584.39
Benefits USA,Inc. (Admin Fee for December 2015) $2,100.00
Christiansen&Dehner(Legal Fees-Invoice#27453 dated 10/31/15) $434.13
FPPTA(Trustees School Registration for Wagner,Maxwell&Brown) $1,350.00
Total $3,884.13
Benefits USA, Inc. (Admin Fee for January 2016) $2,100.00
Bogdahn Group (4th Qtr. 15 Consulting Fees-Invoice#13255 dated 12/24/15) $5,500.00
Christiansen&Dehner(Legal Fees-Invoice#25777 dated 12/31/15) $1,794.15
William Maxwell (Mileage expense for FPPTA Trustees School) $47.52
Total $9,441.67
Pension Payments for Ratification:
Eric Collado(Disability benefit prorated portion 11/4/15 to 11/30/15) $2,019.35
Eric Collado(Disability benefit effective 12/1/15) $2,243.72
Brad Dreasher(Monthly Retirement Benefit Effective 11/1/15) $5,592.52
Brad Dreasher(PLOP benefit) $91,191.63
Total Pension Payments $101,047.22
Trustee Wagner moved to approve the Consent Agenda as presented and Trustee Moy seconded the
motion. The motion passed 3-0.
ATTORNEY'S REPORT:
Attorney Dehner reported that the GASB 67 should be sent to the City and the State: GASB 67 relates to
the Pension Board and GASB 68 relates to the City. Both reports should be posted on the City's website.
Attorney Dehner reported on Senate 456 which amends Chapter 112. This bill would establish a
presumption as to a firefighter's condition or impairment of health caused by cancer while in the
line of duty; prescribe requirements for the physical examination; authorize specified
governmental entities to negotiate policy contracts for life and disability insurance. Providing for
an employer contribution rate increase to fund changes made by the act.
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Attorney Dehner also reported on Senate bill 1186 which is the confidentiality request for Police Officers
and Firefighters. Public Records/Former Firefighters/Identification and Location Information;
Providing an exemption from public records requirements for certain identification and location'
information relating to former firefighters and their spouses and children; providing for future
legislative review and repeal of the exemption; providing a statement of public necessity.
TRUSTEE'S REPORT:
Trustee Moy said that he received his meeting packet in a timely manner and thanked Benefits USA.
NEXT MEETING DATE: May 4, 2016 at 1:00 pm.
ADJOURNMENT: The meeting was adjourned at 2:30 PM.
Respectfull .. ' ed by,
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Chi a owI'ttl rman William Wag ' Secretary
Contact the City Clerk's Office to listen to an electronic the complete minutes
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