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2021-02-01 General Meeting & All Funds Individual MeetingsCITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, FEBRUARY 1, 2021 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 ELECTRONIC MEETING 1. CALL TO ORDER Donna Howard called the meeting of the Board of Trustees for the City of Okeechobee General Employees, Police, and Firefighter Pension Boards to order at 4:42 p.m. in the Council Chamber at City Hall. Due to the lack of a quorum for the Okeechobee General Employees meeting, the meeting was postponed until Donna Howard called the meeting to order again upon the arrival of Trustee Willie Hall, JR., at 5:20 p.m. James Pickering called the Police Officers' Board to order at 5:32 PM. Those persons present included: TRUSTEES OKEECHOBEE GENERAL Donna Howard, Secretary Willie Hall, Jr. Michelle Clanton TRUSTEES POLICE James Pickering, Secretary Cody Daigneault Ryan Holroyd �THFRS Scott Baur; Alison Lichter &Kyle Tintle, Resource Centers At Christiansen, Christiansen & Dehner via Ring Central John McCann, AndCo via Ring Central Mindy Johnson, Salem Trust via Ring Central India Reidel, Finance Director, City of Okeechobee TRUSTEES FIREFIGHTERS Adam Crum, Secretary Glenn Hodges 2. Extraordinary Circumstances for Trustees Joining Electronically No trustees joined the meeting electronically. 3. Approval of the Minutes The General Employees' Retirement System Trustees reviewed the Minutes for the November 2, 2020 Quarterly Meeting, Donna Howard made a motion to approve the Quarterly Meeting Minutes for the November 2, 2020. The motion received a second from Michelle Clanton, approved by the Trustees 3-0. 4. Custodian Report (Mindy Johnson Mindy Johnson appeared before the Boards to let them know the merger of Salem Trust with TMI Trust Company has been completed and all is well. The retirees will be receiving two 1099R forms for year 2020 due to the system merger. She advised the Boards the Salem staff is working remotely and are available to assist with any questions or issues that arise. 5. Attorney Report (Scott Christiansen) Mr. Christiansen reviewed the terms of the Trustees and officers for each Board. Mr. Christiansen verified Michelle Clanton completed and submitted her Form 1 to the Supervisor of Elections in her town of residence. He asked if Nathan Pippin submitted his Form 1F. Ms. Tintle will confirm with Nathan that he submitted his form as required. Mr. Christiansen reviewed the State requirement for the Boards to register with E -Verify. The Board's service providers must also register and use E -Verify Meeting February 1, 2021 Rage 2 of 3 when onboarding new employees. He reviewed a General Employees provision to be rehired by the City, prior to age 62; their pension benefits must be stopped. He is requesting authority to draft an ordinance in response to the IRS changes. Donna Howard made a motion to authorized Mr. Christiansen to draft an ordinance reflecting the IRS changes to the Plan. The motion received a second from Michelle Clanton, approved by the Trustees 3-0. 6. Investment Report (John McCann) Or. McCann began with an explanation of the role investment consultant for new Trustees. He explained the name of his company, "Client — AndCo" to represent it is a collaboration between the client and the company. The market value for this quarter for the General Employees Plan ended at $6,196,330 versus the previous quarter which closed at $5,552,776; a difference of $643,554. Mr. McCann reviewed the fiscal year to date for the General Employees' Plan: 11.71% against the benchmark of 9.26%, a difference of 2.45%; to finish in the top 4% of their peer group. He continued by reviewing the 1, 3, 5 year numbers: 1 -year: 18.63% versus 15.31% a difference of 3.32%; 3 -year: 11.13% versus 15.91% a difference of 0.78%; 5 -year 10.86% versus 10.68% a difference of 0.18%. Mr. McCann review the market value of the Police Officers' Retirement System for the quarter ending at $11,514,973 compared to last quarter at $10,468,136 an increase of $1,046,837. He reviewed the quarter up 11.01% versus the policy at 9.38% a difference of 1.63%. The Police Plans fiscal year to date numbers is 11.71% against the policy at 9.26%, a difference of 2.45%. Mr. McCann continued by reviewing the performance of each mutual fund's performance for each Plan. The Trustees held a brief discussion of the markets and impact of COVID on the economy. 7. Attorney Report (Scott Christiansen) Mr. Christiansen addressed the change to the Florida law that affects the Plan. All Florida public employers, their contractor, and subcontractors must register with E -Verify system to confirm all new hire are eligible to legally work in the United States after January 1, 2021. The pension boards are considered public employers. Apparently the City and the County have entered into an inter -local agreement regarding the Firefighters. The Board will need an ordinance to memorialize the merger. Or. Christiansen will prepare a proposed ordinance for the next quarterly meeting. He covered the letters addressed to the Police and Firefighters Plans from Robbins Geller Rudman & Dowd. The letter recommended the Plans received the generic reports rather than the portfolio monitoring reports as the portfolios are comprised of all mutual funds. He concluded by reviewing the trustee terms for Ray Worley and John Koepke whose terms ended on September 30, 2020. 8. Administrator Report (Scott Baur) Mr. Baur presented the Board a memo discussing the 2020 SSAE-18 SOC1 Audit Report. He explained the difference between a type 1 and a type 2 audit. The type 1 audit lists the controls and procedures, type 2 audits tests those controls and procedures. The audit, referred to as SOC1 type 2 is performed annually. The Resource Centers engages an outside auditor to review the controls and procedures and tests to identify any exceptions, a type 2 audit. This year, as in prior years, the auditors identified no exceptions, resulting in a completely clean audit. A brief discussion was held to determine the date and time of the Special Meeting to review the Audit and Actuarial Valuation. It was decided the Boards would meet at 5:30 PM on Monday, March 1, 2021. Meeting February 1, 2021 Page 3 of 3 Michelle Clanton made a motion to hold a Special Meeting on March 1, 2021 at 5:30 PM to review the Audit and the Actuarial Valuation. The motion received a second from Donna Howard. The motion was unanimously approved by the Trustees of the General Employee's Plan, 3-0. Michelle Clanton made a motion to ratify the February 1, 2021 Warrant. The motion received a second from Donna Howard. The motion was unanimously approved by the Trustees of the General Employee's Plan, 3-0. James Pickering made a motion to approve the Minutes for the November 2, 2020 meeting. The motion received a second from Cody Daigneault approved by the Trustees of the Police Officers' Plan, 3-0. James Pickering made a motion to ratify the Warrants presented for February 1, 2021. The motion received a second from Cody Daigneault approved by the Trustees 3-0. The Trustees received and will file the interim financials for the 15` quarter for both the General and the Police pension boards. PUBLIC COMMENT There were no public comments at this time. There being no further business, the General Employees' Board was adjourned at 6:09 PM and the Police Officers' Board was adjourned at 6:10 PM. Donna Howard made a motion to adjourn the meeting of the Okeechobee General Employees Retirement System. The motion received a second from Michelle Clanton, approved by the Trustees 3-0. r C�lraiP"` James Pickering made a motion to adjourn the meeting of the Okeechobee Police Officers' Retirement System. The motion received a second from Cody Daigneault approved by th�.Trustees 3-0.