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2015-02-02 General Meeting & General Fund Meeting! t CITY OF OKEECHOBEE/OKEECHOBEE UTILITY AUTHORITY/POLICE/FIRE •• PENSION REGULAR MEETING MINUTES, FEBRUARY 2, 2015 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 TRUSTEE ATTENDANCE: CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson Daryl Roehm POLICE: Denny Davis, Chair Ray Worley Jack Boon FIRE: John Koepke, Chair Judy Douglas Adam Crum OTHERS PRESENT: Scott Christiansen, Attorney Jack Evatt, Bogdahn Group Janet McKinley, OUA Financial Liaison Basil Coule, OUA Financial Liaison Melisa Jahner, Secretary Robert Ellerbee Bettye Taylor, Secretary Bill Bartlett Mike Skipper, Secretary Glen Hodges CALL TO ORDER REGULAR MEETING: Jamie Mullis called the meeting to order at 5:04 p.m. 2. PUBLIC COMMENT: Jamie asked whether there were any comments from the public. There were none. 3. INVESTMENT REPORTS: The Bogdahn Group a) Mr. Jack Evatt, of the Bogdahn Group, presented an overview for the quarter ending December 31, 2014 as distributed. City General/OUA - The Total Fund Quarterly to Date: beginning 10/1/14 with $10,085,363.00 and ending 12/31/14 with $10,465,248.00. The Total Fund Year to Date: beginning 10/1/14 with $10,085,363.00 and ending 12/31/14 with $10,465,248.00. Police - The Total Fund Quarterly to Date: beginning 10/1/14 with $7,646,489.00 and ending 12/31/2014 with $7,871,219.00. The Total Fund Year to Date: beginning 10/1/2014 with $7,646,489.00 and ending 12/31/14 with $7,871,219.00. Fire - The Total Fund Quarterly to Date: beginning 10/1/14 with $3,228,162.00 and ending 12/31/2014 with $3,317,468.00. The Total Fund Year to Date: beginning 10/1/2014 with $3,228,162.00 and ending 12/31/14 with $3,317,468.00. Mr. Evatt informed that all three boards are well ahead and have exceeded the benchmark. It was discussed for informational purposes, a letter from The Bogdahn Group, dated January 12, 2015, regarding a change of internal control, in which Joe Bogdahn, the majority equity owner since inception in 2005, has passed the reigns to Mike Welker, CEO and President, who has acquired the majority of the firms's equity, and over the next several years plans to broaden the ownership of the firm against the employees, with the goal to be the firm will remain employee -owned and 100 percent independent. No action is necessary. 4. PORTFOLIO SUMMARY FROM DANA INVESTMENT ADVISORS INC, AS OF DECEMBER 31, 2014 Mr. John Hamil, was present to review the DANA portfolio's, in which overall all three boards are in good standing, DIBARTLOMEO, MCBEE, HARTLY & BARNES, P.A. ENGAGEMENT LETTER FOR AUDIT FEES FOR SEPTEMBER 30, 2014, FISCAL YEAR END OF $4,700.00 FROM $3,600.00 FOR SIGNATURE AND APPROVAL. Attorney Christiansen stated this is quite a significant increase, in which Janet explained the process is more involved with the GASB (Government Accounting Standard Board) regulations. It was discussed this item would be postponed until further determination and it was suggested the boards consider approving RFP's for new auditina services. SALEM TRUST RELATIONSHIP REVIEW OF CUSTODIAL FEE EFFECTIVE MARCH 31, 2015 A letter was distributed and dated November 7, 2014, regarding modifying their fee arrangement, in which the fee of 6bps will remain unchanged, and their minimum will be raised to $5,500 (from $4,000) to include the three accounts, and for three years. Discussion began with Janet explaining Salem Trust had multiple errors in their accounting process due to new staff and software. Even Jack remarked this is a top notch firm, and has just recently seen issues. Attorney Christiansen suggested to send the bills from DMHB to Salem since they were incurred due to their errors. It was discussed whether to search for a new custodian company, but was decided since their track record has been steady, and they have come forward with their errors, not at this time. ,, 400 6a. ADDED ITEM — OUA FINANCIAL LIAISON Jamie explained the load of pension responsibilities has increased causing Janet to spend more hours of her time or the OUA's time to complete the necessary tasks. They are asking for a stipend to cover her time. It was mentioned this service can be outsourced, but OUA has always been the custodian. Chief Davis remarked should the boards approve, not to be started until the next fiscal year 2015/2016. Attorney Christiansen stated the terms are reasonable, and suggested the fee be paid quarterly. There should also be an agreement stating the duties and responbilities. 7. ITEMS/REPORTS FROM ATTORNEY CHRISTIANSEN ✓ Summary Plan Descriptions for review and approval ✓ Each board will need to consider the suggested engagement letter and addendum for DMHB ✓ Each board will need to authorize the reimbursement from DMBH to Salem Trust for fees ✓ Each board will need to authorize Attorney Christiansen to draft an agreement for OUA Adminstrative Services UNFINISHED BUSINESS TO DISCUSS IN OPEN SESSION. None NEW BUSINESS TO DISCUSS IN OPEN SESSION. None RECESS FROM OPEN SESSION AND CONVENE IN INVIDUAL SESSION: 6:40 P.M. CITY GENERAUOUA PENSION BOARD OF TRUSTEE ITEMS February 2, 2015 ADDED ITEM TO AGENDA: Appoint Mr Jose Santiago as the 5th Member to the Board. Jamie moved to appoint Mr. Jose Santiago as the 5tm member to the City General/OUA Pension Board; seconded by Daryl. Motion carried unanimously. A. Motion to dispense with the reading and approve the minutes for November 3, 2014 meeting. Daryl moved to approve the November 3, 2014 minutes; seconded by Robbie. Motion carried unanimously. B. Motion to approve the financial reports as presented by Basil Coule, Pension Financial Liaison: Jamie moved to approve the financial reports 1-4 as presented on the agenda: seconded by Robbie. Motion carried unanimously. 1. Check register from October 2014 through September 2014 2. Statements from Salem Trust that reflect activity for General Pension Fund for the months October -December, 2014, for the following accounts: Rceipt & Disbursement, DANA Investments & Equity 3. Approve the list of members terminated and/or contributions refunded or rolled over from 10/l/2014-12/31/2014: David Tewksbury (City), Stephen White (OUA). 4. New members enrolled from 10/l/2014-12/31/2014: David Carter & Melissa Henry (City), Tina Carver (OUA). C. UNFINISHED OR NEW ITEMS: ✓ Robbie moved to approve the consent letter for DMHB services; seconded by Jamie. Motion carried unanimously. ✓ Jamie moved to postpone the Salem Trust Custodial Fee Review (Item No. 6 from General Session); seconded by Robbie. Motion carried unanimously. ✓ Robbie moved to authorize reimbursement from DMHB to Salem Trust for pending fees due to their error; seconded by Jamie. Motion carried unanimously. ✓ Jamie moved to authorize Attorney Christiansen to draft an agreement for QUA Administrative Services for the City General/OUA Board; seconded by Daryl. Motion carried unanaimously. ✓ Robbie moved to approve the Summary Plan Description, February 2015: seconded by Jamie. Motion carried unanimously. D. Adjourn meeting at 6:50 P.M.