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2018-08-06 General Meeting & All Funds Indvidual MeetingsCITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, August 6, 2018 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 5:03 PM in the Council Chamber at City Hall, Those persons present included: TRUSTEES Nathan Pippin —Chairman Jackie Dunham - Secretary Melissa Henry Daryl Roehm Willie Hall, Jr POLICE lack Boon —Chairman Bettye Taylor - Secretary Ryan Holroyd Ray Worley FIRE Adam Crum Glen Hodges Josh Sanders OTHERS Kyle Tintle, Scott Baur, & Joah Freeman, Resource Centers Lee Delmer, Attorney, Christiansen & Delmer John McCann, Investment Consultant, AndCo MindyJohnson, Salem Trust There were no additional comments from the public. 3. REPORTS Investment Consultant Report (John McCannl Mr. McCann began the quarterly performance report by presenting an economic overview. The market returns were mixed for the quarter and fixed income returns were flat. Small caps stocks outperformed mid and large cap equities during the quarter. Mr. McCann reviewed the performance of the individual funds. The total fund numbers were: General Employees 1.84% beating the bench of 1.63% by 0.21%, Police 1.57% beating the bench of 1.32% by 0.25%, Fire 1.56% beating the bench of 1.32% by 0.24% for the quarter ending June 30, 2018, The General Plan ended the quarter with $4,869,243 in assets; the Police Plan ended the quarter with $9,255,664 in assets; the Fire plan ended the quarter with assets of $4,121,475. The fiscal year to date numbers were: for the General Employees 5.43% versus the policy of 4.5%; Police 5.24% versus the policy of 4.10%; and for Fire 5,20% versus the policy of 4.10%. Mr. McCann reviewed the individual returns and performance for the managers. He introduced the idea of investing in real estate as interest rates are going up and fixed income is going down. Mr. McCann discussed the type of real estate he was referring to was not a REIT (real estate investment trust) but actual property ownership. He asked if the Meeting August 6, 2018 Page 2 of 4 Boards would like to hear a presentation from one or two real estate managers. Mr. Delmer advised the City would have to change the ordinance in order for the Plans to add real estate to their portfolios. He recommended Mr. McCann provide additional information for the Boards to review and perhaps arrange for two or three real estate managers to present before the Board for educational purposes only. Mr. McCann will gather some information and send it to the Resource Centers for distribution. Adam Crum and Josh Sanders left the meeting at 5:10 PM to answer an emergency call. It was noted the Firefighters do not have a quorum. A lengthy discussion was held in reference to the financial statements. Several Board members noted that they previously received a detailed general ledger (GL) report, listing the receipts and disbursements. Mr. Baur will forward a quarterly detailed report to each of the three Boards from the Custodial Account. Josh Sanders returned to the meeting at 5:30 PM. Attornev Reoort (Lee Dehner) Mr. Dehner provided a letter to the Boards reiterating that his office will not be transitioning from the Okeechobee Plans. He reminded the Trustees that the Form 1 financial disclosures were due and beginning September V and fines will be assessed if they were not submitted. Mr. Delmer reported were no significant legislation from Tallahassee that would have an impact on the Plans. He is working on updating the language to comply with IRS changes which will result in an ordinance. The provisions to the Operating Rules and Procedures will have to be updated if a retiree or a beneficiary that is owed money cannot be found. The Police and Fire Plans, previously adopted their budgets must adopt their fiscal year end expense reports. Mr. Delmer explained to the Boards that an itemized report of investments must be filed with the City at the end of the fiscal year. Ms. Johnson will provide a fiscal year end list of the Plans assets to the Boards for filing with the City. The Firefighter Board has a pending disability claim for Mr. Conroy. The Firefighter Board will need a motion to extend the disability claim by 90 days. Custodian (Mindy Johnson) Ms. Johnson came before the Board to present the Salem Trust Quarterly Service Report. She assured the Trustees that Information Technology (IT) security is a priority for Salem Trust. Ms. Johnson referred to the handout included in the meeting packets: the Electronic Communication Acknowledgement, IT procedures and practices overview, and a copy of the Salem Trust Liability Insurance coverage. She noted that Salem Trust has added Cyber Liability coverage to their policy listed on the Schedule of Insurance. Ms. Johnson reviewed the employee electronic training and testing taking place at Salem Trust. She discussed the electronic transfer process between her office and the Resource Centers. There is a callback procedure in place for the electronic transfer of funds. Ms. Johnson reported that the Chicago Clearing House Corporation, the firm hired to oversee the security class action claims filings, reduced their fees from 20% of the settlement amount to 12% of any recoveries. Mr. Crum returned to the meeting at 6:15 PM. Administrator (Scott Baur) Meeting August 6, 2018 Page 3 of 4 Mr. Baur discussed the Police and Firefighter Share Plan expenses. The Boards need to address the fees in their individual breakout sessions. He reviewed the conference registration procedures for the Trustees. There being no further business, the Boards adjourned the open session at 6:16 PM and the Trustees proceeded to their individual sessions. Ms. Tintle attended the Police and Fire Boards and Mr. Baur attend the General Board meeting. INDIVIDUAL SESSION: POLICE BOARD Bettye Taylor called the individual meeting of the Police Trustees to order. Ray Worley made a motion to approve the April 23, 2018 Special Meeting minutes and the May 5, 2018 Quarterly Meeting Minutes. The motion received a second by Ryan Holroyd, approved by the Trustees 4.0. The Plan financial reports were presented and received by the Board. Ryan Holroyd made a motion to accept the financial statements as presented. The motion received a second by Ray Worley, approved by the Trustees 4-0. Ray Worley made a motion to ratify the Warrants dated June 7, July 19 and 25, 2018. The motion received a second by Ryan Holroyd, approved by the Trustees 4.0. Ms. Tintle updated the Board on the retroactive benefit payments that were distributed. The Trustees discussed the Share Plan administrative expenses. Ryan Holroyd made a motion to have the Plan pay for the administrative expenses for the Share Plan. The motion received a second by Ray Worley, approved by the Trustees 4-0. Ms. Tintle presented the benefit approvals for Bettye Taylor to enter the DROP and a survivor benefit for Gail Farrenkopf. Bettye Taylor recused herself from the vote. Two new members joined the Plan: Jessica Francis and Jason Gavern. Their paperwork was signed and will be filed with the Administrator. Ray Worley made a motion to approve Bettye Taylor entering the DROP and a survivor's benefit for Gall Farrenkopf. The motion received a second by Ryan Holroyd, approved by the Trustees 3-0. The Trustees discussed the upcoming 481h Annual Police Officers and Firefighters Pension Trustee School being held in Kissimmee on November 14`h through 16`h. Ms. Taylor informed the Board that there is no fee to attend the program however they would need to make their hotel arrangements, in order for the Resource Centers to prepay for lodging. The Board voiced an interest in attending the program. Seeing there was no other business the Police Board adjourned their individual session at 6:20 PM. Meeting August 6, 2018 Page 4 of 4 INDIVIDUAL SESSION: GENERAL EMPLOYEES The meeting began with a discussion of the minutes. There was a question if there was ever a motion to approve the refund of contributions for Victoria DaVito that was tabled from the February meeting. This item will be put on the Agenda for the next meeting. Discussion followed regarding the financial statements and the warrants that are included in the meeting packets. Daryl Roehm made a motion to accept the financial statements as presented. The motion received a second by Jackie Dunham, approved by the Trustees 5.0. Daryl Roehm made a motion to accept the warrants for May 15, June 7, 190 25, 2018 as presented. The motion received a second by Jackie Dunham, approved by the Trustees 5.0. The Board discussed the new employee acknowledgements. Jackie Dunham made a motion to accept the new employees: Theodore Pattison, Kade Smith, and Savanna Smith into the Plan as presented. The motion received a second by Melissa Henry, approved by the Trustees 5.0. Mr. Baur presented the investment Policy Statement to Nathan Pippin to date as the document had been previously singed but not dated. Mr. Baur reviewed the benefit approvals for the Boards consideration. Melissa Henry made a motion to approve the refund of contribution for Mary Boecker. The motion received a second by Willie Hall, Jr., approved by the Trustees 5.0. Jackie Dunham made a motion to approve the retirement benefit for Michael O'Connor. The motion received a second by Melissa Henry, approved by the Trustees 5-0. Melissa Henry addressed the current normal retirement age of 65 and asked the Board to consider lowering the retirement age to 62. Discussion followed on the benefit for members to be able to retire or enter the DROP at 62. Melissa Henry made a motion to have the Actuary do a cost estimate of reducing the normal retirement age from 65 to 62. The cost of the study should not exceed $5,000. The motion received a second by Willie Hall, Jr., approved by the Trustees 5-0. Mr. Dehner discussed the proposal for a mini conference for all three Boards. He presented the idea of a legal mini conference where Boards from other municipalities would be invited. The Resource Centers will work with Mr. DehneCs office to coordinate the mini conference. There being no additional business, the General Employees Board adjourned their individual session at 7:01 PM. //