2013-02-04 General Meeting & General Fund Meetinge't7N,F
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CITY OF OKEECHOBEE/OKEECHOBEE UTILITY
AUTHORITY/POLICE/FIRE PENSION BOARDS
REGULAR MEETING MINUTES, FEBRUARY 4, 2013
CITY HALL, 55 SE THIRD AVENUE
OKEECHOBEE, FL 34974
TRUSTEE ATTENDANCE:
CITY OF OKEECHOBEE/OUA
Jamie Mullis, Chairperson
Daryl Roehm
Linda Tewksbury
POLICE: Chief Davis, Chairperson
Bill Bartlett
Russell Cale
FIRE:
OTHERS PRESENT:
Gary Ritter
Scott Christiansen, Attorney
Jack Evatt, Bogdahn Group
Janet McKinley, OUA Financial Liaison
Basil Coule, OUA Financial Liaison
Theora Braccialarghe, Actuary
Melissa Algayer, Actuary
CALL TO ORDER REGULAR MEETING: 5:00 p.m. by Jamie Mullis
Melisa Jahner, Secretary
Kevin Barbour
Bettye Taylor, Secretary
Ray Worley
Adam Crum
2. INVESTMENT REPORTS:
A. David Kelly of Bowen & Hanes was not present for a review, an investment summary was distributed.
B. Jack Evatt of the Bogdahn Group presented an overview for the quarter ending December 31, 2012. The Total
Fund Market Value as of 10/1/2012 was $8,139,554.00 and ended on 12/31/2012 with $8,072,091.00. The Total
Fund (Net) as of December 31, 2012, being 17.81% for October 2011 through September 2012. Mr. Evatt
informed the Boards of the concerns and disappointment with Bowen & Hanes performance and recommended
notifying them either written or verbal. It was the consensus of all three Boards for him to draft a letter stating the
concerns and disappointments.
C. Salem Trust — The Salem Trust Statements for the Receipt & Disbursement (R & D), Equity and Fixed Income
were distributed reflecting the activity for the months of October — December, 2012.
D. Theora Braccialarghe and Melissa Algayer, from Gabriel Roeder and Smith presented the Actuarial Valuation
Report as of October 1, 2012 for the Annual Employer Contribution for the year ending September 30, 2014. Ms.
Braccialarghe explained that the mortality rates were updated from the 1994 Group Annuity Mortality Tables for
Males and Females to the RP-2000 Combined Healthy Participant Mortality Table for Males and Females, using
projection scale AA to anticipate mortality improvements. The required City contribution increased by about
$61,000 as a result of the change. Attorney Christiansen recommended the Boards consider easing or smoothing
into the new mortality table to avoid the full force all at once.
3. ITEMS/REPORTS FROM BOARD ATTORNEY CHRISTIANSEN
The Summary Plan Descriptions for each board, dated February 1, 2013, were distributed. These are to be
delivered to the appropriate persons. He will present the IRC ordinances to maintain the tax qualification status of
the plans at the next meeting and then will be sent to City Council for review and adoption.
4. UNFINISHED BUSINESS TO DISCUSS IN OPEN SESSION.
5. NEW BUSINESS TO DISCUSS IN OPEN SESSION.
6 RECESS FROM OPEN SESSION AND CONVENE IN INDIVIDUAL SESSION at 6:45 P.M.
CITY GENERAUOUA PENSION BOARD OF TRUSTEE ITEMS:
A. Motion to dispense with the reading and approve the minutes for the November 5, 2012 meeting. Daryl Roehm moved
to approve the November 5, 2012 Minutes as presented; seconded by Jamie Mullis. Motion carded
unanimously.
B. Motion to approve the financial reports as presented by Basil Coule, Pension Financial Liaison: Jamie Mullis moved to
approve the financial reports 14 and 6-8 as presented on the agenda; seconded by Kevin Barbour. Motion
carried unanimously.
1. Investment summary dated January 4, 2013 from Bowen, Hanes & Company and Portfolio summary
as of December 31, 2012.
2. Check register from October through December, 2012.
3. Statements from Salem Trust that reflects activity for the General Pension Fund fiscal year (October
1, 2011-September 30, 2012).
4. Statements from Salem Trust that reflect activity for October through December, 2012 for the
following accounts: Receipt & Disbursement, Equity & Fixed income.
6. DiBartolomeo, McBee, Hartley & Barnes, P.A., audit has been performed.
7. Approve the list of members terminated and/or contributions refunded or rolled over from 10/01/2012
to 12/31/2012: Ignacio Gomez, Sherry Lanning, Joshua O'Berry, James Nathan Pippin, John Wilbur,
Matthew Yates
8. New members enrolled from 10/01/2012 to 12/31/2012: Cynthia Beeson, Tiffany Noel, Eric Ward.
B. 5 Christiansen & Dehner, P.A. proposed revised "Summary Plan Dscription" for review and approval.
Kevin Barbour moved to approve the Summary Plan Description dated February 1, 2013 with
"Exhibit B" provided by the Actuary; seconded by Jamie Mullis. Motion carried unanimously.
C. Unfinished or New Items from Board Members.
Jamie Mullis moved to instruct Mr. Jack Evatt of the Bogdahn Group to draft a notice to David Kelly of Bowen
& Hanes referencing the GeneraVOUA Boards dissatisfaction of their performance; seconded by Daryl
Roehm. Motion carried unanimously.
Jamie Mullis moved that based on Mr. Evatt's advice, the total expected annual rate of investment return for
our fund for the next year, the next several years and the long term thereafter shall be 7% net of the
investment related expenses; seconded by Daryl Roehm. Motion carried unanimously. A PL-1 notice will be
sent to the Bureau of Local Retirements.
Melisa Jahner moved to approve the Actuarial Valuation Report with a smooth -in adjustment from the 1994
Group Annuity Mortality Tables to the RP-2000 Combined Healthy Participant Tables; seconded by Jamie
Mullis. Motion carried unanimously.
D. ADJOURN MEETING: The meeting was adjourned at 7:00 p.m.
Minutes prepared by: Melisa Jahner, Secretary
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CITY OF OKEECHOBEE AND OKEECHOBEE UTILITY AUTHORITY
PENSION BOARD OFFICIAL AGENDA
FOR FEBRUARY 4 , 2013 - 5:00 P.M.
BOARD OF TRUSTEES FOR THE
CITY GENERAL EMPLOYEES & OUA EMPLOYEES RETIREMENT FUND
CITY FIREFIGHTERS RETIREMENT FUND AND
CITY POLICE OFFICERS RETIREMENT FUND
CITY GENERAUOUA MEMBERS POLICE OFFICERS MEMBERS FIREFIGHTERS MEMBERS
Jamie Mullis, Chair Denny Davis, Chair John Koepke, Chair,
Secretary, Melisa Jahner Bettye Taylor, Secretary Secretary
Linda Tewksbury Russ Cale Glen Hodges
Kevin Barbour Bill Barlett Gary Ritter
Daryl Roehm Ray Worley Michael Skipper
Call meeting to order - Chairperson
Investment Reports:
A. Bowen & Hanes
B. The Bogdahn Group; Will present their quarterly Investment Performance Review as of
December 31, 2012.
C.. Salem Trust;
D. Theora P. Braccialarghe from Gabriel Roeder and Smith will present the Actuarial
Valuation Report as of October 1, 2012.
Items/Reports from Board Attorney Christiansen
Unfinished Business to Discuss in Open Session.
New Business to Discuss in Open Session.
Recess from Open Session and Convene in Individual Session:
City General/OUA Pension Board of Trustees Items
A. Motion to dispense with the reading and approve the minutes for the November 5„
2012 Meeting.
B. Motion to approve the Financial Reports as presented by Basil Coule, Pension
Financial Liaison:
1) Investment summary dated January 4, 2013 from Bowen,Hanes & Company and
Portfolio Summary as of December 31, 2012
2) Check Register —October, 2012 — December, 2012.
3) Statements from Salem Trust that reflects activity for the General Pension Fund
fiscal year ( October 1, 2011- September 30, 2012)
4) Statements from Salem Trust that reflect activity for October 2012— December
2012 for the following accounts; Receipt & Disbursement, Equity, & Fixed
Income.
Note: Only one copy of the complete statement will be provided. All other
packages will have the balance sheet for each account for each month.
5) Christiansen & Dehner, P. A. proposed revised "Summary Plan Description" for
review and approval.
6) DiBartolomeo,McBee, Hartley,& Barnes, P.A. audit has been performed.
7) Approve the list of members terminated and/or contributions refunded or rolled
over from 10-01-2012 to 12-31-2012 : Ignacio Gomez, Sherry Lanning, Joshua
O'berry, James Nathan Pippin, John Wilbur, Matthew Yates
8) New members enrolled from 10-01-2012 to 12-31-2012 : Cynthia Beeson,
Tiffany Noel, Eric Ward
C. Unfinished or New Items from Board Members.
D. ADJOURN MEETING - Individual Board Chairpersons
NOTICE IS HEREBY GIVEN that if any person should decide to appeal any decision made at this
meeting of the Pension Board of Trustees, such person will need to insure that a verbatim record of
the proceedings is made,which includes the testimony and evidence upon which the appeal is based.