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2017-08-07 General Meeting & All Funds Individual MeetingsCITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, August 7, 2017 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 1. CALL TO ORDER Nathan Pippin called a meeting of the Board of Trustees for the City of Okeechobee General Employees/Police/Fire Pension Boards to order at 5:00 PM in the Council Chambers. It was noted that the Firefighters did not have a quorum. TRUSTEES OKEECHOBEE GENERAL Nathan Pippin - Chairman Jackie Dunham - Secretary Melissa Henry POLICE Jack Boon — Chairman - Absent Bettye Taylor — Secretary Ray Worley - Absent Bill Barlett Ryan Holroyd Fire Herby Smith — Chairman — Absent Michael Skipper —Secretary -Absent Adam Crum —Absent John Koepke - Absent Glen Hodges —Absent 2. PUBLIC COMMENT OTHERS Scott Baur & Kyle Tintle, Resource Centers Scott Christiansen, Attorney Tony Kay, AnclCo Consulting Willie Hall, Okeechobee General Employee There were no additional comments from the public. 3. REPORTS Investment Consultant Report (Tony Kay) Mr. Kay provided an overview of the market environment for the quarter ending June 30t". He reported that the market continued to provide strong results. Corporate earnings growth and unemployment remained strong throughout the quarter. Fixed income provided minimal results as interest rates increased. Equities have generated most of the returns needed to keep the Plans on target to meet their actuarial assumed rate. This is now the second longest bull market in history without a correction. Mr. Kay reviewed the returns for fixed income securities, noting that long term rates moderated providing evidence of low inflation expectations and future GDP growth. He noted that the Dodge & Cox Income Fund was doing well with a 1 year return of 3.24% versus fixed income index at-0.31%. Meeting August 7, 2017 Page 2 of 3 The fixed income manager strongly outperformed their benchmark as income on bonds offset losses on securities. At the end of the quarter the total assets of each plan are as follows: the General Employees Plan had $4,710,164.00; the Police Plan had $8,553,906.00; and the Firefighter's Plan was at $3,807,342. Mr. Kay continued reviewing the asset allocations for each Plan. The General Employees Plan return for the quarter for the quarter was 2.95% versus the bench at 2.68%. The Fiscal Year to date compared the Plan at 7.97% to the bench at 7.62%. The Police Plan return for the quarter was 3.18% versus 2.83% bench. The fiscal year to date had the Police Plan at 7.81% and 7.61% bench. The Firefighter's Plan return for the quarter was 3.17% compared to the bench at 2.83%. The Firefighter's fiscal year to date number was 8.33% against the bench at 7.61%. Mr. Kay reviewed the asset allocations for each Plan. He reviewed the investment performance for the equity managers for the quarter. Nathan Pippin questioned how funds are invested into the Plan's portfolio. Mr. Kay explained that the Custodial Bank, Salem Trust, has a standing rebalancing letter on file. Mr. Christiansen recommended updating the standing rebalancing instructions specifically to reference the City of Okeechobee General Employment System. Mr. Kay will update the instruction letter accordingly. Attorney Report (Scott Christiansen) Mr. Christiansen addressed the Auditor Engagement Letters for DiBartolomeo, McBee, Hartley & Barnes, requesting they be brought to the next meeting. He discussed the Trustee terms for the Boards that were expiring before the next meeting. The Financial Disclosure forms were filed by each of the Trustees from all three Boards. The Firefighters will need a special meeting to approve the Summary Plan Description and the Administrative Budget. Mr. Christiansen addressed the State money, stating that it comes in August but the list came out today. The Operating Rules & Procedures for the General Employees needs to be redone. The Police and Firefighters' Boards will need to authorize Mr. Christiansen to update their Operating Rules & Procedures, since they have not been updated since 2002. The Operating Rules will be placed on the next meeting Agenda for both Boards. There were no pension bills adopted in the last session, but Senate Bill 80 curtailed abusive practices for lawsuits for public records requests. The law included mandatory award of attorney's fees. The bill also gave the judge more discretion for awarding fees. There was discussion about the City posting the name of the Records Management Liaison officer to contact for records requests. Mr. Baur stated that the Resource Centers are the custodian of records for the Plans. Ms. Lane Gamiotea is the Records Management Liaison Officer for the City as the City Clerk. She should receive a copy of every item after every meeting. Ms. Gamiotea already posted notice on behalf of the General Employees' pension fund. Ms. Taylor felt that Ms. Gamiotea serve as the contact person. Mr. Baur explained the different roles of the records custodian and the Records Management Liaison Officer. He also requested that all three Boards are consistent in their decision. Ms. Dunham asked that the City hold all of the records. The Boards continued to discuss the different roles of record retention. An invitation will be extended to Ms. Gamiotea for the next Board meeting as the issue will be on the next Agenda. Mr. Christiansen presented information on House Bill 455 which provides as additional property tax exemption to public safety officers disabled in the line of duty and qualify for social security disability. Other Business The City updated the Beneficiary form PF-3 which is now one form for all three Plans with a checkbox for the appropriate Plan. The Boards and Mr. Christiansen have no issue with the updated form. The Boards adjourned the open session and proceeded into their individual sessions. Mr. Baur will go to the Police Board; Ms. Tintle will go to the General Board. Meeting August 7, 2017 Page 3of3 INDIVIDUAL SESSION: POLICE BOARD Betty Taylor called the individual meeting of the Police Trustees. The Trustees noted that Mr. Boon was absent. Mr. Holroyd made a motion to approve the Minutes from the May 1, 2017 meeting. The motion received a second by Ms. Taylor, approved by the Trustees 3-0. Ms. Taylor made a motion to approve the Administrative Budget. The motion received a second by Mr. Holroyd, approved 3-0. Mr. Holroyd made a motion to approve the Warrant dated August 7, 2017. The motion received a second by Ms. Taylor, approved 3-0. Ms. Taylor made a motion to authorized Mr. Christiansen to update the Operating Rules & Procedures. The motion received a second by Mr. Holroyd, approved 3-0. The Board discussed the death benefits in the Plan at length and considered a recommendation to change the Plan's death benefits. They would like to improve the line of duty death to match those of the Florida Retirement System. The Police Board adjourned their individual session at 6:25 pm. INDIVIDUAL SESSION: GENERAL BOARD Mr. Pippin called the individual meeting of the General Board Trustees to order. Mr. Christiansen presented the new agreements with the Resource Centers and Gabriel, Roeder, Smith & Company to be signed by the Board. The content of the contracts stayed the same but were solely to General Employees Plan and their service providers. Ms. Tintle reviewed the Interim Financial statements. Covering the Balance Sheet and the Income and Expense reports dated March 2017. Ms. Dunham made a motion to approve the Balance Sheet and the Income & Expense Report as presented. The motion received a second by Mr. Pippin, approved by the Trustees 3-0. Ms. Dunham made a motion to appoint Mr. Willie Hall as the 51" Trustee to complete the remainder of the term. The motion received a second by Ms. Henry, approved by the Trustees 3-0. The City Council needs to ratify the appointment. The General Board adjourned their individual session at 6:33 pm.