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2015-12-07 General Meeting & General Fund Meeting4R�,y.0FKIkp.t+S kDo- CITY OF OKEECHOBEE/OKEECHOBEE UTILITY " g' AUTHORITY/POLICE/FIRE PENSION BOARDS SPECIAL MEETING MINUTES, DECEMBER 7, 2015 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 TRUSTEE ATTENDANCE: CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson Robert Ellerbee POLICE: Denny Davis, Chairperson Bill Bartlett Ray Worley FIRE: Mike Skipper, Secretary Glen Hodges Melisa Jahner, Secretary Jose Santiago Bettye Taylor, Secretary Jack Boon Herb Smith OTHERS PRESENT: Scott Christiansen, Attorney Janet McKinley, OUA Financial Liaison Basil Coule, OUA Financial Liaison Marcos Montes De Oca, City Administrator John Hayford, OUA Executive Director India Riedel, City Finance Director Lane Gamiotea, City Clerk 1. CALL TO ORDER REGULAR MEETING: Jamie Mullis called the meeting to order at 2:08 p.m. 2. PUBLIC COMMENT: Jamie asked whether there were any comments from the public. There were none. 3. NEW BUSINESS — A. Presentation for the Pension Administration Proposals from the following: Pension Administration Services, LLC The Pension Resource Center, LLC Foster & Foster, Inc. B. Approve Contract for Administration Services. The Consensus of the three boards was to offer Foster and Foster, Inc. the position as the Pension Administrator. 4. OPEN DISCUSSION: 5. RECESS FROM OPEN SESSION AT 4:02 P.M. Adjourned at 4:02 P.M Prepared by Melisa Jahner s� $���: a.CITY OF OKEECHOBEEIOKEECHOBEE•''�..;.n• AUTHORITY•BOARD INDIVIDUAL SESSION SPECIAL MEETING MINUTES December 7, 2015 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 TRUSTEE ATTENDANCE: Jamie Mullis, Chairperson Melisa Jahner, Secretary Robert Ellerbee Jose Santiago INDIVIDUAL SESSION FOR CITY GENERAUOUA CONVENED AT 4:04 P.M. 1. Jay McBee, DiBartolomeo, McBee, Hartley & Barnes, P.A., was present to address any questions and explain the difference between Cost -Sharing Multiple -Employer vs. Agent Multiple -Employer Plan. He explained that up through September 30, 2014, as far as pension reporting requirements, the plan was deemed as a defined multiple employer pension plan. The reporting requirements of GASB 68, now has outlined two options, cost sharing multiple employer, or agent multiple employer plan. Currently, the plan is a single pot, everything is combined, which would best be defined as cost sharing. In an agent multiple employer plan, the assets and liabilities are segregated and allocated in pools based on the various employers. 2. Letters were distributed prior to the meeting from the City Council designating the Pension Plan as a Cost -Sharing Multiple Employer Plan, and the OUA requesting the pension plan be classified as an agent multiple -employer plan. The two type of plans are defined below: Cost -Sharing Multiple -Employer Plan, the pension benefits for both OUA and City employees would be paid out of the pension funds total pooled assets regardless of the origin of the funds held within the plan. Agent Mulitple-Employer Plan, would maintain separate accounting records so that each employer's share of the pooled asset is legally available to pay the benefits of only its employees. Attorney Christiansen informed the Board that the City is the sponsor of the plan giving them full authority and the only entity to approve changes, the OUA does not have this authority. The City has indicated their request to be designated as a cost sharing multiple employer plan. Also, to further concede with the City's recommendation, Attorney Christiansen expressed that by the definitions set out by GASB 68, the plan is deemed as a cost sharing multiple employer plan since there is only one pool. The OUA strongly indicated their desire to be designated as an agent multiple employer plan. Attomey Christiansen advised them they will have to meet with the City to have their option considered. 3. Vote on the description of the pension plan type for further reporting purposes: a) cost -sharing multiple employer, b) agent multiple employer plan. Jamied moved to designate the plan as a cost sharing plan as recommended by the City of Okeechobee and recommended by Attorney Christiansen; seconded by Melisa. Motion carried unanimously. Robbie moved that the QUA and the City colloborate to pursue the consideration of changing the plan to an agent multiplier plan; seconded by Jamie. Jose, Robbie, Jamie —Yes; Melisa — No. Motion carried. 4. Approve Gabriel Roeder Smith & Company (GRS) percentage allocation for the distribution of valuation assets and the employers contribution rates for FY 2016. Jamie moved to accept the annual contribution rates results for the 2015/2016 fiscal year as developed by GRS being: 5.39% of payroll ($44,690.00) for the City, and 15.68% of payroll ($361,639.00) for the OUA; seconded by Robbie. Motion carried unanimously. Adjourn meeting at 5:19 P.M. Prepared by Melisa Jahner \t 9; CITY OF OKEECHOBEE10KEECHOBEE UTILITY ..ursrr AUTHORITY PENSION BOARD INDIVIDUAL SESSION SPECIAL MEETING MINUTES TRUSTEE ATTENDANCE: Jamie Mullis, Chairperson Robert Ellerbee December 7, 2015 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 Melisa Jahner, Secretary Jose Santiago INDIVIDUAL SESSION FOR CITY GENERAUOUA CONVENED AT 4:04 P.M. Jay McBee, DiBartolomeo, McBee, Hartley & Barnes, P.A., was present to address any questions and explain the difference between Cost -Sharing Multiple -Employer vs. Agent Multiple -Employer Plan. He explained that up through September 30, 2014, as far as pension reporting requirements, the plan was deemed as a defined multiple employer pension plan. The reporting requirements of GASB 68, now has outlined two options, cost sharing multiple employer, or agent multiple employer plan. Currently, the plan is a single pot, everything is combined, which would best be defined as cost sharing. In an agent multiple employer plan, the assets and liabilities are segregated and allocated in pools based on the various employers. 2. Letters were distributed prior to the meeting from the City Council designating the Pension Plan as a Cost -Sharing Multiple Employer Plan, and the OUA requesting the pension plan be classified as an agent multiple -employer plan. The two type of plans are defined below: Cost -Sharing Multiple -Employer Plan, the pension benefits for both OUA and City employees would be paid out of the pension funds total pooled assets regardless of the origin of the funds held within the plan. Agent Mulitple-Employer Plan, would maintain separate accounting records so that each employers share of the pooled asset is legally available to pay the benefits of only its employees. Attorney Christiansen informed the Board that the City is the sponsor of the plan giving them full authority and the only entity to approve changes, the OUA does not have this authority. The City has indicated their request to be designated as a cost sharing multiple employer plan. Also, to further concede with the Ciity's recommendation, Attorney Christiansen expressed that by the definitions set out by GASB 68, the plan is deemed as a cost sharing multiple employer plan since there is only one pool. The OUA strongly indicated their desire to be designated as an agent multiple employer plan. Attorney Christiansen advised them they will have to meet with the City to have their option considered. 3. Vote on the description of the pension plan type for further reporting purposes: a) cost -sharing multiple employer, b) agent multiple employer plan. *ftw Jamied moved to designate the plan as a cost sharing plan as recommended by the City of Okeechobee and recommended by Attorney Christiansen: seconded by Melisa. Motion carried unanimous. Robbie moved that the OUA and the City colloborate to pursue the consideration of changing the plan to an agent multiplier plan; seconded by Jamie. Jose, Robbie, Jamie Yes: Melisa — No. Motion carried. 4. Approve Gabriel Roeder Smith & Company (GRS) percentage allocation for the distribution of valuation assets and the employers contribution rates for FY 2016. Jamie moved to accept the annual contribution rates results for the 2015/2016 fiscal year as developed by GRS being: 5.39% of payroll ($44,690.00) for the City, and 15.68% of payroll ($361,639.00) for the OUA; seconded by Robbie. Motion carried unanimously. Adjourn meeting at 5:19 P.M. Prepared by Melisa Jahner D 0 CITY OF OKEECHOBEEIOKEECHOBEE UTILITY AUTHORITY/POLICE/FIRE PENSION BOARDS SPECIAL MEETING MINUTES, DECEMBER 7, 2015 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 TRUSTEE ATTENDANCE: CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson Robert Ellerbee POLICE: Denny Davis, Chairperson Bill Bartlett Ray Worley FIRE: Mike Skipper, Secretary Glen Hodges Melisa Jahner, Secretary Jose Santiago Bettye Taylor, Secretary Jack Boon Herb Smith OTHERS PRESENT: Scott Christiansen, Attorney Janet McKinley, OUA Financial Liaison Basil Coule, OUA Financial Liaison Marcos Montes De Oca, City Administrator John Hayford, OUA Executive Director India Riedel, City Finance Director Lane Gamiotea, City Clerk CALL TO ORDER REGULAR MEETING: Jamie Mullis called the meeting to order at 2:08 p.m. 2. PUBLIC COMMENT: Jamie asked whether there were any comments from the public. There were none. 3. NEW BUSINESS — A. Presentation for the Pension Administration Proposals from the following: Pension Administration Services, LLC The Pension Resource Center, LLC Foster & Foster, Inc. B. Approve Contract for Administration Services. The Consensus of the three boards was to offer Foster and Foster, Inc. the position as the Pension Administrator. 4. OPEN DISCUSSION: 5. RECESS FROM OPEN SESSION AT 4:02 P.M. Adjourned at 4:02 P.M Prepared by Melisa Jahner