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CITY OF OKEECHOBEE/OKEECHOBEE UTILITY ' 91
AUTHORITY/POLICE/FIRE PENSION BOARDS
SPECIAL MEETING MINUTES, JUNE 20, 2013
CITY HALL, 55 SE THIRD AVENUE
OKEECHOBEE, FL 34974
TRUSTEE ATTENDANCE:
CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson Melisa Jahner, Secretary
Linda Tewksbury Kevin Barbour
POLICE: Denny Davis, Chairperson
Ray Worley
Russell Cale
FIRE:
Mike Skipper, Secretary
Gary Ritter
Bettye Taylor, Secretary
Bill Bartlett
Glen Hodges
OTHERS PRESENT: Scott Christiansen, Attorney
Janet McKinley, OUA Financial Liaison
Basil Coule, OUA Financial Liaison
City Council Members: Dowling Watford and Mike O'Connor
City Administrator Whitehall; City Employees: Clint Gould, Marvin Roberts,
and Eric Ward
CALL TO ORDER SPECIAL MEETING: 10:03 p.m. by Jamie Mullis
2. ITEMS TO DISCUSS IN OPEN SESSION WITH ATTORNEY SCOTT CHRISTIANSEN PRESENT:
a. BOGDAHN GROUP OPERATIONAL CONCERNS LETTER
All clients invested with Bowen Hanes & Company were sent a memorandum dated May 13, 2013, from the
Bogdahn Group, pointing out the matters of concern and giving a recommendation to review alternative
options for assets invested in Bowen Hanes & Company. The Bogdahn Group has contacted Bowen Hanes
on multiple occasions regarding the matters of concern and the Trustees have sent them notification relaying their
disappointment of their performance as well. Even though they have taken a defensive approach, they have
underperformed 3 out of the 4 years. The boards discussed the aggressive behaviour of Jack Evatt from the
Bogdahn Group. It has been brought to his attention, should there be no change with his disposition, the
boards will request another representative. Each board during their individual sessions will decide whether to
move forward with Requests for Proposals for the Manager position.
b. BOGDAHN GROUP YEARLY FEE INCREASE FROM $15,500 TO $25,000
Notification was received by trustees regarding an increase of fees and compensation from the Bogdahn
Group from $15,500 to $25,000.
Attorney Christian recessed the meeting from 10:45 a.m. until 10:53 a.m., to call the Bogdahn Group for
clarification. There is no fee increase, it will remain as contracted.
c. BOWEN HANES & COMPANY RESIGNATION LETTER
All trustees were sent a resignation letter dated May 312013, from Bowen, Hanes & Company. The letter
informed that regretfully, because of the aforementioned philosophical conflict with your consultant on a host
of issues, operational and otherwise, the best course of action at this point is to resign. We will continue to
manage your Fund in a manner consistent with both our approach and your investment policy statement and
contract until a suitable replacement is found. The concensus from the boards was that after evaluating
performance there has not been much change. Each board during their individual sessions will decide
whether to move forward with Requests for Proposals for the Consultant position.
d. FLORIDA STATUTE CONCERNINC GENERAL POWERS AND DUTIES OF BOARD OF TRUSTEES
Jamie Mullis informed that this information was being brought to our attention for review. Attorney
Christiansen explained that F.S. 175.071(6)(a), which states that at least once every 3 years, the board of
trustees shall retain a professionally qualified independent consultant who shall evaluate the performance of
any existing professional money manager and shall make recommendations to the board of trustees
regarding the selection of money managers for the next investment term. He suggested Bogdahn Group
does not need be present at every quarterly meeting, possibly at every other quarterly meeting, but to wait 3
years is too long and not prudent.
e. TWO LETTERS FROM OUR CUSTODIAN SALEM TRUST, ONE DATED JUNE 12, 2013 & THE OTHER
JUNE 14, 2013 CONCERNING STATUS OF TRANSITION TO NEW TRUST SYSTEM. The first letter
informed that the first phase of transition to SunGard Systems has been completed and converted. Through
the process there was an awareness that there are still brokers using the old trading instructions requiring
manual intervention to process their trades which has compromised the timely processing of security trades
and impacted the posting of these trades. Corrective action has been put in place. Letter two, gives an update
on the progress of the correct post -conversion issues showing a significant reduction of items effecting the
balancing and posting of dividends and interest for mutual and money market funds and incorrect trades.
Posting of trades are now available on Salem Trust online.
f. UNFINISHED OR NEW ITEMS TO DISCUSS IN OPEN SESSION
There was none.
3. RECESS FROM OPEN SESSION AND CONVENE IN INDIVIDUAL SESSIONS AT 10:57 A.M.
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CITY OF OKEECHOBEE
OKEECHOBEE UTILITY AUTHORITY
PENSION BOARD OF TRUSTEE SPECIAL MEETING
INDIVIDUAL SESSION MINUTES
JUNE 20, 2013
TRUSTEE ATTENDANCE:
CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairperson Melisa Jahner, Secretary
Linda Tewksbury Kevin Barbour
CITY GENERALIOUA PENSION BOARD OF TRUSTEES CONVENED IN INDIVIDUAL SESSION AT 10:57 A.M.
A. Motion to dispense with the reading and approve the minutes for the May 6, 2013 meeting. Jamie moved to aqqrove
the Mav 6, 2013 Minutes as presented; seconded bv Linda. Motion carried unanimouslv.
B. Unfinished or New Items from Board Members.
Kevin moved to authorize Jack Evatt from the Bopdahn Group to send out Request for Proposals for Fund Manaaer
and return them to the Board of Trustees for consideration: seconded bv Jamie. Motion carried unanimouslv.
C. ADJOURN MEETING: The meeting was adjourned at 11:00 A.M.
Minutes prepared by: Melisa Jahner, Secretary