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2019-02-04 General Meeting & All Funds Individual MeetingsCITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, February 4, 2019 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 1. CALL TO ORDER Jackie Dunham called a meeting of the Board of Trustees for the City of Okeechobee General Employees, Police, and Firefighter Pension Boards to order at 5:00 PM in the Council Chamber at City Hall. Scott Baur called roll. Those persons present included: TRUSTEES OKEECHOBEE GENERAL Jackie Dunham — Secretary Willie Hall, Jr. Daryl Roeham TRUSTEES POLICE Bettye Taylor - Secretary Ray Worley 2. PUBLIC COMMENT OTHERS Kyle Tintle & Scott Baur, Resource Centers Lee Dehner, Attorney, Christiansen & Dehner John McCann, Investment Consultant, AndCo TRUSTEES FIREFIGHTERS Adam Crum, Secretary Glen Hodges Josh Sanders John Koepke It was noted that the Board of Trustees for the Okeechobee Police Officers Retirement System did not have a quorum. 3. REPORTS Investment Consultant Report (John McCann) Mr. McCann informed the Board that Mr. Leon Palandjian of Intercontinental Real Estate was unable to attend today's meeting but will attend a future meeting to answer questions. Mr. McCann suggested moving 10% of the fixed income (Dodge & Cox) to real estate investments, pending Ordinance changes and Board approvals at a later meeting. The Plans do not have the $5 million assets individually to participate however the firm has alternative products that could be considered. AndCo has retained a third party company to anonymously survey the Trustees to evaluate the performance and service provided by John McCann and the company. Mr. McCann began the quarterly report acknowledging the poor performance for the quarter ending December 31, 2018. He reminded the Boards that the past quarter was the first quarter of the new fiscal year leaving plenty of time for the markets to rebound. Mr. McCann reviewed the performance of the individual funds. The General Plan ended the quarter with $4,395,306 versus last quarter ending with a balance of $4,984,471 in assets; the Police Plan ended the quarter with $8,645,622 in assets versus last quarter's balance of $9,500,497 in assets; the Fire plan ended the quarter with assets of $3,843,233 versus the previous quarter's ending balance of $4,193,047. The numbers were: for the General Employees -9.79% versus the policy of -7.75% down -2.04%; Police -9.52% versus the policy of - 7.60% down -1.92%; and for Fire -9.42% versus the policy of -7.60%, a decrease of -1.82%. Mr. McCann reviewed the big picture of the fiscal year to date numbers, one year, three year, five year, and the returns since inception for each of the Plans. Mr. McCann has an unavoidable conflict for the next Meeting February 4, 2019 Page 2 of 4 quarterly meeting scheduled for May 6, 2019. However he will attend remotely by telephone. Mr. McCann will mail in advance of the meeting the Investment Performance Review booklets to Ms. Tintle to be brought to the meeting for distribution. Attorney Report (Lee Dehner) Mr. Dehner presented each Board with proposed ordinances. The proposed ordinances deals with the changes to the Internal Revenue Code (IRC) and recent litigation; the desire of the Boards to be able to invest in real estate if so desired; clarification of the language regarding disability; provisions for locating missing benefit recipients; and payment of Administrative expenses of the Share Plan. Mr. Dehner recommended that the City adopts the proposed Amendments to comply with the changes to the IRC. These general provisions outline what the Plans need to follow to comply. The Operating Rules and Procedures are step by step procedures to be followed with the incorporation of the Addendum. Jackie Dunham made a motion to recommend approving the changes to the Proposed Ordinance for the Okeechobee General Employees Retirement System and recommend to the City Council the Ordinance be adopted as amended. The motion received a second from Daryl Roehm, approved by the Trustees 3-0. Jackie Dunham made a motion to adopt Addendum to the Operating Rules and Procedures for the Okeechobee General Employees Retirement System. The motion received a second from Willie Hall, Jr., approved by the Trustees 3-0. Adam Crum made a motion to recommend approving the changes to the Proposed Ordinance for the Okeechobee Firefighters' Retirement System and recommend to the City Council the Ordinance be adopted as amended. The motion received a second from John Koepke, approved by the Trustees 3-0. Adam Crum made a motion to adopt Addendum to the Operating Rules and Procedures for the Okeechobee Firefighters' Retirement System. The motion received a second from John Koepke, approved by the Trustees 3-0. Mr. Dehner reminded the Trustees that it was time for them to complete and submit the Form 1 Statement of Financial Interests. The completed form must be submitted to the Supervisor of Elections in the county where they permanently resided. He reviewed on the upcoming Florida Legislative session which will start the first week in March. Mr. Dehner had reported that nothing so far affects the Boards Administrator (Kyle Tintle) Ms. Tintle directed the Boards to review the actuarial impact statements included in their meeting packets that referred to proposed ordinances presented by Attorney Lee Dehner. She reviewed the upcoming conferences available for Trustee education. Ms. Tintle reviewed the most resent Salem Trust Service Report Summary. Ms. Tintle addressed the next item on the Agenda for discussion regarding notices and actions concerning reported member's deaths. Mr. Baur reviewed the steps taken when notification of a member's death is received. He also explained the various tools used to maintain proper records of pension members. In attempt to ensure continuation of benefits, Ms. Bettye Taylor, requested the Administrator contact someone on the Okeechobee Police Officers' Retirement System Board to verify the information. Meeting February 4, 2019 Page 3 of 4 There being no further business, the Boards adjourned the open session at 5:55 PM and the Trustees proceeded to their individual sessions. Ms. Tintle attended the Fire Board and Mr. Baur attended the General Board meeting. INDIVIDUAL SESSION: GENERAL EMPLOYEES The meeting began with a review of the November 5 & 9, 2018 meeting minutes. Jackie Dunham, who attended the meeting, recommended approval of the minutes. Daryl Roehm made a motion to accept the Quarterly Meeting Minutes for the November 5 and the November 9, 2018 meeting. The motion received a second from Willie Hall, Jr., approved by the Trustees 3-0. The Trustees held a discussion of a Special Meeting around April 1. The financial statements were received and filed. The quarterly expenses were reviewed by the Trustees. Jackie Dunham made a motion to approve the Warrants presented from November 19, December 19, January 15 & 23, 2019. The motion received a second from Willie Hall, Jr., approved by the Trustees 3- 0. Daryl Roehm made a motion to accept the New Employee Acknowledgement for Bret Johnson. The motion received a second from Jackie Dunham, approved by the Trustees 3-0. Daryl Roehm made a motion to approve the benefit approval for Donnie Robertson. The motion received a second from Willie Hall, Jr., approved by the Trustees 3-0. Chairman Nathan Pippin requested the Board table the discussion of the proposed ordinance of retirement age. The Board discussed Real Estate holdings, risk, and portfolio diversification. John McCann reviewed InterContinental's holdings and historical performance. He explained yield and appreciation. The addition of Real Estate as investment holdings is in a proposed ordinance with the normal retirement age being lowered to 62 from 65 years of age. Jackie Dunham made a motion to table the proposed Real Estate investment and lowering the retirement age from 65 to age 62 for the Okeechobee General Employees' Retirement System. The motion received a second from Daryl Roehm, approved by the Trustees 3-0. Jackie Dunham made a motion to recommend to the City Council to accept the proposed ordinance to allow real estate as an investment up to 10% as cost, The motion received a second from Daryl Roehm, approved by the Trustees 3-0. Mr. McCann and the representative from InterContinental will attend the April ft Special Meeting. There being no further business, the Board was adjourned at 6:42 PM. Meeting February 4, 2019 Page 4 of 4 INDIVIDUAL SESSION: FIRE BOARD Adam Crumb called the individual meeting of the City of Okeechobee Municipal Firefighters' Pension Fund to order. The Board reviewed the minutes from the Special Meeting which was held on November 5, 2018. The meeting was the Initial Disability Hearing to review the disability application and documentation for Phillip Conroy. Adam Crum made a motion to approve the Special Meeting Minutes held on November 5, 2018. The motion received a second by Josh Sanders, approved by the Trustees 4-0. The Board next reviewed the meeting minutes for the Quarterly Meeting held on November 5, 2018. Josh Sanders made a motion to approve the meeting minutes for the Quarterly Meeting held on November 5, 2018. The motion received a second by Adam Crum, approved by the Trustees 4-0. Ms. Tintle presented the December 2018 financial statements which were received by the Board. She presented Warrants and Invoices for the following dates: November 19 and 28, 2018; December 19, 2018; and January 24, 2019 for the Trustees to review. Adam Crum made a motion to approve the meeting Warrants for November 19 & 28, December 19, 2018, and January 24, 2019. The motion received a second by Josh Sanders, approved by the Trustees 4-0. Ms. Tintle presented the benefit approval for Phillip Conroy for the Trustees to review Adam Crum made a motion to approve the benefits for Phillip Conroy. The motion received a second by John Koepke, approved by the Trustees 4-0. Seeing there was no other business the Fire Board adjourned their individual session at 6:20 PM.