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08-01-2018 MinutesTHE CITY OF OCOEE POLICE OFFICERS'/FIREFIGHTERS' RETIREMENT FUND BOARD MEETING — August 1, 2018 Chairman Brown called the meeting of the City of Ocoee Police Officers'/Firefighters' Retirement Trust Fund to order at 1:06 p.m. in the Commission Chambers of City Hall. CALL TO ORDER — Roll call and determination of quorum The roll was called and a quorum declared present. TRUSTEES PRESENT: Chairman Charles Brown, William Maxwell, Joe Moy, Trey Littlefield, Bryan Pace ABSENT and EXCUSED: OTHERS PRESENT: Mr. Nash of AndCo Consulting, Lee Delmer Board Attorney, Richard Cristini and Jeanine Bittinger of Davidson, Jamieson & Cristini and Pete Prior of Benefits USA. Inc. APPROVAL OF MINUTES: Approval of Minutes from Regular Meeting dated May 2, 2018. Trustee Pace moved to approve the minutes as presented. Trustee Littlefield seconded the motion and the motion passed. PUBLIC COMMENTS: There were no public comments at this time. NEW BUSINESS: Presentation of 9/30/17 Financial Statements Mr. Cristini presented the financial statements to the board. Mr. Cristini reported that the receivables at 9/30/17 were $144,115 a decrease from 2016 of $197,624. The Investments totals $50,678,411, an increase from 2016 of $45,221,733. The liabilities increased to $50,232 from 2016 of $45,329. Mr. Cristini reported that the Contributions from the Employer an Employees was $2,415,886 with $1,813,985 from the City and $601,901 from Employees respectively. The total state revenue was $564,099 and increase from 2016 of $557,160. The Chapter 175 tax revenue decreased to $265,931 from the 2016 amount of $281,152. The 185 tax revenue increased to $298,168 from the 2016 amount of $276,008. The investment income was $5,263,419 less investment expenses of $190,796 for a total net income of $5,072,623. The Benefits payments totaled $2,800,488 an increase from 2016 of $2,579,986. The administrative expenses decreased to $81,928 from the 2016 amount of $100,990. The net increase in the net position was $45,376,059 an increase from the 2016 amount of $41,581,764. The net position restricted for Pensions is $50,628,179. Mr. Cristini reported on the plan membership noting that there are 63 retirees and beneficiaries currently receiving benefits; 26 terminated employees, 116 active members, 53vested, and 63 non vested. Finally, Mr. Cristini reported on the Boards Investment returns for the last 4 years are as follow: 9/30/14, 10.95%, 9/30/15, 0.84%, 9/30/16, 8.41% and 9/30/17, 10.90%. Attorney Delmer reported that if the Board did not have any questions, that a motion was in order to approve the Financial Statements. Trustee Pace moved to approve the 9/30/17 Financial Statements and Trustee Moy seconded the motion and it passed. Ms. Bittinger distributed the Representation letter for signature, as well as the new contract for the next 3 years 2017-2019 noting the fees will be $16,000, $16,500, and $17,000 respectively. Trustee Pace moved to approve the audit contract as presented and Trustee Maxwell seconded the motion and it passed. Page I of 3 QUARTERLY INVESTMENT UPDATE: Quarter Ending 6/30/2018 AndCo Consulting Mr. Nash reported on the economy briefly and on the returns for the board. Mr. Nash reported that the bond market overall was down for the quarter. The fund earned 1.89% for the quarter versus the index of 1.39%. For the fiscal year to date the fund earned 4.14% versus the index of 4.97%. GAMCO returned 1.40% for the quarter and 9.59% for the 1 -year period vs. the Russell 3000 Value of 1.71% and 7.25% respectively. Vanguard returned 3.91% for the quarter and 14.82% for the 1 -year period outperforming the Russell 3000 of 3.89% and 14.78% respectively. Alger returned 6.60% and 22.90% and Mar Vista returned 2.58% and 15.46% vs. the Russell 1000 Growth index of 5.76% and 22.51% respectively. American Funds Euro Pacific returned -2.82% for the quarter and 9.30% for the 1 -year period vs. the MSCI-EAFE Growth index of 0.35% and 9.84%. Mr. Nash reported that the Fixed income earned .09% outperforming the index of -0.16. For one year the plan earned 6.97% versus the index of 8.62%. Five year returns earned 7.96% compared to the index of 5.75% and since inception 6.34% versus the index of 6.62%. Garcia Hamilton returned 0.51% for the quarter and 1.32% for the 1 -year period vs. the Bloomberg Barclay's Aggregate index of -0.16% and -.40% respectively. Templeton GI Bond A returned -2.62% and -2.12% vs. the FTSE Non US World Gov't Bond of -5.11 % and 3.22% respectively. Templeton Bond R6 returned -2.54% and -1.74% vs. the FTSE Non US World Gov't Bond of -5.11% and 3.22% respectively. American Realty returned 2.09% for the quarter and 8.16% for the 1 -year period outperforming the NCREIF Property index of 1.81% and 7.19% respectively. Mr. Nash noted that he is not making any recommendations at this time. Trustee Littlefield asked how this plan compares to other plans. Mr. Nash referred the trustees to page 20 that reflects how the plan performed to other plans. He noted that for the first quarter of 2018, all Public Pension Funds were negative -0.30. Mr. Nash reported on the compliance checklist noting a few negative reviews which Mr. Nash explained and what was done to correct the negative to positive going forward. Operating Procedures: This item was tabled to the next meeting. Proposed Administrative Budget Trustee Pace moved to approve the Administrative Budget and Trustee Littlefield seconded the motion and the motion passed. Attorney Dehner noted that the Budget is approved at this meeting and then the first meeting of the year, a detail of Administrative expenses is presented to the Board for actual expenses paid. He noted that the Budget should be filed with the City and the State. Pension Calculations (Chairman's Request) Chairman Brown reported that a terminated vested firefighter asked for additional calculations and the Administrator asked if the Board would pay for it. Attorney Delmer commented that the Board pays for 2 calculations. If the member falls within the parameters and unless the Board wants to pay for it, then the member would pay for the additional calculation. Pension Workshop (Chairman's Request) This workshop was discussed briefly but no action has been taken. It will be determined at a later date. UNFINISHED BUSINESS: There was no unfinished business at this meeting. CONSENT AGENDA For Approval: Warrant #166 Benefits USA, Inc. (Flat Monthly fee for August 2018; Invoice #08-2018) $2,100.00 Garcia Hamilton Assoc. (Q2-18 Mgmt. Fee -Invoice #29414 dated 7/6/18) $7,123.34 Page 2 of 3 GAMCO (Q2-18 Mgmt. Fee -Invoice #20180630-157-4967-A dated 7/13/18) Mar Vista Q2-18 Mgmt. Fee -Invoice #4744 dated 7/19/18) Total For Ratification: Warrants 9163-165 Christiansen & Delmer (Legal Fees -Inv #32115 & 32116 dated 4/30/18) Fiduciary Trust Co. Intl. (4"' (Xr. 17 Mgni Fee -GA MCO Irivoice dated 5/14/18) Fiduciary Trust Co. Intl. (4t"Qtr. 17 Mgmt Fee-GHA Invoice dated 5/14/18) Fiduciary Trust Co. Intl. (4"' Qtr. 17 Mgnit Fee -R&D Invoice (fated 5/14/�18) FPPTA (Annual Conference Registration for William Maxwell) Total Benefits USA, Inc. (Flat Monthly fee for June; Invoice #06-2018) Christiansen & Delmer (Legal Fees -Inv #32248 & 32249 dated 5/31/18) Davidson, Jamieson & Cristini (Audit Fee -FY 9/30/17; Inv #R7912 dated 6/4/18) Total AndCo (Q2-18 Consulting Fee -Invoice #25628 dated 6/29/18) Benefits USA, Inc. (Flat Monthly fee for July; Invoice #07-2018) Christiansen & Delmer (Legal Fees -Inv #32364 & 32365 dated 6/31/18) Foster & Foster (Services Rendered -Invoice #12705 dated 6/27/18) Total Pension Disbursements for Ratification: $18,488.00 $5,867.97 $33,579.31 $4,625.40 $1,207.00 $1,411.90 $2,666.46 $650.00 $10,560.91 $2,100.00 $3,718.74 $6,500.00 $12,318.74 $6,250.00 $2,100.00 $328.27 $1,480.00 $10,158.27 Eve Chandler (Beneficiary of Jimmy Chandler 66 2/3% effective 5/1/18) $489.43 Cooper Tisch (Refund of Contributions) $943.79 Trustee Pace moved to approve the consent agenda. Trustee Littlefield seconded the motion and the motion passed. Attorney' Report: Attorney Delmer asked the Board members if they filed their financial disclosures. It was noted that everyone has filed. Attorney Delmer also noted that the IRS has a new requirement and directed them to prepare an ordinance amendment. It won't affect funding and it won't affect Pension benefits just language and procedures. Attorney Delmer also noted that there are rules and procedures in the packet setting forth a procedure to follow when they can't find a retiree or a beneficiary. Trustees Comments: There were no comments from the Trustees. Next Regular Meeting date: November 7, 2018 at 1:00 pm,. Adjournment: The meeting adjourned at 2:11 pm. HEMAWASMOM ;'hai Clerk's Office to listen to an electronic copy of the complete minutes. Page 3 of 3