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February 1, 2016 Quarterly MeetingCITY OF OKEECHOBEE AND OKEECHOBEE UTILITY AUTHORITY PENSION BOARD OFFICIAL AGENDA FOR February 1, 2016 - 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 Jamie Mullis, Chair Secretary, Melisa Jahner Daryl Roehm Robert Ellerbee Jose Santiago POLICE OFFICERS MEMBERS Denny Davis, Chair Bettye Taylor, Secretary Bill Bartlett Ray Worley Jack Boon FIREFIGHTERS MEMBERS John Koepke, Chair, Glen Hodges Judy Douglas Michael Skipper Adam Crum 1. Call meeting to order — Chairperson 2. Public Comment : 3. Mindy Johnson from Salem Trust Company, new plan relationship manager, will present the Global Tax Opportunity. 4. Investment Reports:The Bogdahn Group: 5. Portfolio summary from Dana Investment Advisors,lnc. as of December 31,2015. 6. Approve Engagement Letter from DiBartolomeo, McBee, Hartley & Barnes, P.A. for an audit fee not to exceed $4700. 7. Review Foster & Foster Administrative Contract. 8 Review and discuss invoices from Gabriel, Roeder & Smith & Company and Christiansen & Dehner, P.A. 9. OUA letter to Pension Board. 10. Items /Reports from Board Attorney Christiansen. 11. Unfinished Business to Discuss in Open Session 12. New Business to Discuss in Open Session. 13. 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 meetings on November 2, 2015 & December 7, 2015. B. Motion to approve the Financial Reports as presented by Basil Coule, Pension Financial Liaison: 1) Check Register, -Oct. 2015- Dec. 2015. 2) Statements from Salem Trust that reflect activity for the General Pension Fund for the months Oct. 2015 — Dec. 2015 for the following accounts; Receipt & Disbursement, Dana Investments. 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 and a copy of year end statements. 3) Approve the list of members terminated and /or contributions refunded or rolled over from 10 -1 -2015 to 12 -31 -2015: Michael Connah - Retired OUA, Lawrence Way -OUA, Lisa Dawn -OUA 4) New members enrolled from 10 -1 -2015 to 12 -31 -2015: Jacqueline Dunham -City, Marcos Montes De Oca -City, Patrick Anderson -OUA, Ben Burkes -OUA. 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. CITY OF OKEECHOBEE /OKEECHOBEE UTILITY AUTHORITY /POLICE /FIRE PENSION BOARDS REGULAR MEETING MINUTES, FEBRUARY 1, 2016 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 TRUSTEE ATTENDANCE: CITY OF OKEECHOBEE /OUA POLICE: FIRE: OTHERS PRESENT: Jamie Mullis, Chairperson Jose Santiago Denny Davis, Chair Ray Worley John Koepke, Chair Herb Smith Melisa Jahner, Secretary Robert Ellerbee Bettye Taylor, Secretary Bill Bartlett Mike Skipper, Secretary Scott Christiansen, Attorney Jack Evatt, Bogdahn Group Tim Kay, Bogdahn Group Mindy Johnson, Salem Trust Janet McKinley, OUA Financial Liaison Basil Coule, OUA Financial Liaison John Hayford, OUA Executive Director Marcos Montes De Oca, City Administrator Timmy Palmer, Firefighter 1. CALL TO ORDER REGULAR MEETING: Jamie Mullis called the meeting to order at 5:07 p.m. 2. PUBLIC COMMENT: Jamie asked whether there were any comments from the public. There were none. 3. SALEM TRUST COMPANY: Ms. Mindy Johnson (replacing Mrs. Mark Rhein), informed Salem Trust has partnered with Globe Tax, Relief, Recovery & Reporting Worldwide. This company specializes in the market for tax reclaims on American Depository Receipts (ADR's). When investors receive income (dividends /interest) from cross border (foreign) investments, they are often taxed at a high "statutory" withholding rate. Foreign tax authorities hold the money for a set period, two to seven years (statute of limitations). If not claimed, it is lost. They have thus far identified recoveries for the following plans: Gen /OUA, $4,200.00; Police, $3,700.00; and Fire, $1,300.00. The fees for this service are entirely contingent and payable only after money has been recovered at a rate of 20% to Globe Tax and 5% to Salem Trust. There will be no out of pocket expense for the Pension Funds. There is no contract, and Ms. Johnson will send through the Plan Administrator the necessary documentation for each Board to authorize recovery of the money. Attorney Christiansen has reviewed the documentation and company, with there being no downside, is recommending the boards consider approval at their individual sessions. 4. INVESTMENT REPORTS: The Bogdahn Group a) Mr. Jack Evatt, and Mr. Tony Kay, (new consultant) of the Bogdahn Group, presented an overview for the quarter ending December 31, 2015 as distributed. City General /OUA - The Total Fund Quarterly and Year to Date: beginning 10/1/15 with $10,169,498.00 and ending 12/31/15 with $10,490,227.00. Police - The Total Fund Quarterly and Year to Date: beginning 10/1/15 with $7,647,414.00 and ending 12/31/2015 with $7,831,770.00. Mr. Evatt informed that this quarter was not as promising as anticipated, but all three boards have reached their benchmarks. The first quarter has been uncertain due to weather and this being an election year. He did state that all plans are well positioned to move forward, and anticipates better returns next quarter. No action was necessary. 5. PORTFOLIO SUMMARY FROM DANA INVESTMENT ADVISORS INC, AS OF DECEMBER 31, 2015 This item was not discussed. 6. APPROVE ENGAGEMENT LETTER FROM DIBARTLOMEO, MCBEE, HARTLY & BARNES, P.A. FOR AUDIT FEES NOT TO EXCEED $4,700.00. Attorney Christiansen suggested the boards consider approving, subject to his review, the audit fee for the fiscal year ended September 30, 2015, and not to exceed $4,700.00. 7 REVIEW FOSTER & FOSTER ADMINISTRATIVE CONTRACT. Attorney Christiansen discussed there was a misunderstanding of the expected services to be rendered. Foster & Foster, and Jay McBee had a conference call to discuss the necessary services for proper audits. Foster & Foster concluded they can provide financial reports /statements for the three plans but for additional fees. Attorney Christiansen advised the boards can choose to stay with Foster & Foster and pay the additional fees, or terminate the contract and direct him to negotiate a contract with Pension Resource Centers excluding the 3% COLA during the initial three year rate guarantee period. 8. REVIEW AND DISCUSS INVOICES FROM GABRIEL, ROEDER, SMITH & COMPANY AND CHRISTIANSEN AND DEHNER, P.A. Copies of invoices were distributed from Gabriel, Roeder, Smith & Co., and Christiansen and Dehner, P.A. The invoices illustrated paid portions some by OUA and the Pension fund. The OUA is requesting compensation for what they paid since it was pension related. Attorney Christiansen explained they could be given a credit towards future expenses should the charges be deemed legit. 9. OUA LETTER TO PENSION BOARD. The letter was dated January 27, 2016, regarding the previous action taken at the December 7, 2015 meeting, concerning the decision of designating the General Employees Retirement System as a cost sharing multiple employer for the current year. This letter from the OUA formally requested the board recommend to City Council to reconsider the plan designation and change it to an agent multiple employer plan. Attorney Christiansen explained the plan could be changed with the authorization of the City Council to amend the ordinance to designate accordingly, but currently it is a cost sharing plan. 10. ITEMS /REPORTS FROM ATTORNEY CHRISTIANSEN ✓ Police, Fire and Gen /OUA Ordinances 1131, 1132, and 1133 to be approved by City Council and sent to the State along with the impact letter. ✓ General /OUA and Fire Boards to consider officers (every two years). UNFINISHED BUSINESS TO DISCUSS IN OPEN SESSION. None NEW BUSINESS TO DISCUSS IN OPEN SESSION. None RECESS FROM OPEN SESSION AND CONVENE IN INDIVIDUAL SESSION: 6:00 P.M. Minutes Prepared by Melisa Jahner CITY OF OKEECHOBEE /OKEECHOBEE UTILITY AUTHORITY/ PENSION BOARD INDIVIDUAL MEETING MINUTES FEBRUARY 1, 2016 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 A. Motion to dispense with the reading and approve the minutes for November 2, 2015, and December 7, 2015 meeting. Melisa moved to approve the above mentioned minutes; seconded by Jamie. 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 Melisa. Motion carried unanimously. 1. Check register from October 2015 through December 2015 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 10/1/2015- 12/31/2015: Michael Connah, (Retired OUA); Lawrence Way (OUA); Lisa Dawn (OUA). 4. New members enrolled from 10/1/2015- 12/31/2015: Jacqueline Dunham (City); Marcos MontesDeOca (City); Patrick Anderson (OUA); Ben Burkes (OUA). C. UNFINISHED OR NEW ITEMS: ✓ Robbie moved to authorize Globe Tax, Relief, Recovery & Reporting Worldwide to proceed with collecting the tax reclaims on the American Depository Receipts (ADR's); seconded by Jose. Motion carried unanimously. ✓ Jose moved to approve the engagement letter from DiBartolomeo, McBee, Hartley & barnes, P.A., for an audit not to exceed $4,700.00, upon review of Attorney Christiansen; seconded by Robbie. Motion carried unanimously. ✓ Jose moved to authorize Attorney Christiansen to terminate the Administrative Services contract with Foster and Foster and negotiate a contract with Pension Resource Centers, excluding the 3% COLA during the initial three year rate guarantee period; seconded by Jamie. Motion carried unanimously. ✓ Jamie moved to authorize the credit due to the OUA in relation to Gabriel, Roeder, & Smith Co., and Christiasen & Dehner, P.A., invoices according to the memo distributed at the meeting; seconded by Robbie. Motion carried unanimously. ✓ Jamie moved to recommend to the City Council to consider changing the designation of the General /OUA Pension plan from cost sharing to agent multiple; seconded by Robbie. Motion carried (3 to 1) Melisa voted No. ✓ Melisa moved to nominate Jamie Mullis as Chair, and Jackie Dunham as Secretary; seconded by Robbie. Motion carried unanimously. D. Adjourn meeting at 6:38 P.M. Minutes prepared by: Board Secretary Melisa Jahner