2020-12-09 Special Meeting All FundsCITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS
SPECIAL MEETING MINUTES, DECEMBER 9, 2020
CITY HALL, 55 SE THIRD AVENUE
OKEECHOBEE, FL 34974
ELECTRONIC MEETING
1. CALL TO ORDER
Melissa Henry called the meeting of the Board of Trustees for the City of Okeechobee General
Employees, Police, and Firefighter Pension Boards to order at 5:07 PM in the Council Chamber at City
Hall. Those persons present included:
TRUSTEES
OKEECHOBEE GENERAL
Nathan Pippin, Chair
Melissa Henry, Secretary
Willie Hall
Donna Howard
TRUSTEES
POLICE (Workshop)
Bettye Taylor, Chair
James Pickering, Secretary
OTHERS
Kyle Tintle & Scott Baur, Resource Centers
At Christiansen, Christiansen & Dehner
John McCann, AnclCo
India Reidel, Finance Director, City of Okeechobee
Phillip Conroy, Retired Firefighter
TRUSTEES
FIREFIGHTERS
Herb Smith, Chair
Adam Crum, Secretary
Glenn Hodges
2. EXTRAORDINARY CIRCUMSTANCES FOR TRUSTEES JOINING ELECTRONICALLY
Mr. Baur reviewed the virtual meeting requirements due to COVID. The law requires a quorum in the
room, but a Trustee can participate remotely under extraordinary circumstances.
Melissa Henry made a motion to approve extraordinary circumstances for Trustees joining the
meeting electronically so Nathan Pippin may join the meeting electronically. The motion received a
second from Donna Howard, approved by the Trustees 3-0.
Melissa Henry made a motion to approve the Agenda as presented. The motion received a second
from Donra Howard, approved by the Trustees 4-0.
3. Nominations for Officers
Nathan Pippin made a motion to nominate Melissa Henry as the Chairperson of the Okeechobee
General Employees' Retirement System. The motion received a second from Donna Howard,
approved by the Trustees 4-0.
Melissa Henry made a motion to nominate Donna Howard as the Secretary of the Okeechobee
General Employees' Retirement System. The motion received a second from Nathan Pippin, approved
by the Trustees 4-0.
4. Investment Report (John McCann)
Mr. McCann began with a look at the big picture for the quarter ending September 30, 2020. He
reviewed the 1 -year numbers for the total fund gross 12.56% with a ranking of 10th versus the policy at
11.30% (21S). The fiscal year ended with a 12.56%, which is an excellent return, which was confirmed
Meeting December 9, 2020 Page 2 of 4
by Attorney Scott Christiansen. The market value for this quarter for the General Plan was $5,552,776
compared to the previous quarter at $5,225,694 a difference of $327,082. Mr. McCann reviewed the
managers starting with the Fiscal Year to Date (FYTD) numbers for Vanguard Equity -Income -2.77% (35)
against the policy at -5.03% (54); Vanguard 500 Index at 15.11% (37) compared to the policy at 15.15%
(36); MFS Growth Fund ended the FYTD at 32.47% versus the policy at 37.53%; International Equity
ended at 14.97% versus the policy at 3.45%; Dodge and Cox ended at 7.71% (25th) versus 6.98% (50th) for
the FYTD for the policy. Mr. McCann said all of the managers did well.
The next update will be out soon, and he is looking at rebalancing as Fixed Income as it is behind the
index to be more in line with the Summary Plan Description. Mr. McCann noted as of December 1, 2020
the market value was at 6.1 million and has made an additional 500,000. He would like to take a total of
80/
from 3 different equity funds to put into Dodge &Cox Fixed Income. He recommended taking
$180,000 (3%) from MFS large cap growth (MFEKX), $120,000 (2%) from Vanguard (VEINX), and
$180,000 (3%) from Vanguard Extended Market Index (VEXAX). The total of $480,000 to Dodge & Cox
would put in-line with the policy. Mr. Christiansen agreed that the rebalancing would be necessary to
have the targets matching the policy.
Nathan Pippin made a motion to rebalance the portfolio based on the recommendation of the
investment monitor to bring the portfolio in line with the policy. The motion received a second from
Melissa Henry, approved by the Trustees 4-0.
5. Attorney Report (Scott Christiansen)
Mr. Christiansen reviewed the memo explaining the IRS changes which resulted in the revision of the
administrative forms. He noted the Board received a resignation letter from Kay Matchett leaving a
vacancy and with the departure of Nathan Pippin at the end of the year; the City will need to appoint
another Trustee. He presented the meeting dates for 2021. A discussion was held on staggering the
meetings sequentially versus simultaneously. The discussion resulted in a motion.
Melissa Henry made a motion to hold the Okeechobee General Employees Board meetings at 4:30
PM, consecutive meetings rather than the 3 Boards meeting together. The motion received a second
from Donna Howard, approved by the Trustees 4-0.
Melissa Henry made a motion to approve the meeting dates for the 2021 calendar year. The motion
received a second from Donna Howard, approved by the Trustees 4-0.
6. Administrative Report (Scott Baur)
Mr. Baur presented the minutes from August 2, 2020 for review.
Melissa Henry made a motion to approve the meeting minutes for August 3, 2020. The motion
received a second from Donna Howard, approved by the Trustees 4-0.
The interim financial statements for the 2020 fiscal year end were reviewed and filed by the Board. Mr.
Baur presented the Trustees with the Warrant for November 2, 2020.
Melissa Henry made a motion to approve the expenses covered in the Warrant dated November 2,
2020. The motion received a second from Donna Howard, approved by the Trustees 4-0.
Meeting December 9, 2020 Page 3 of 4
As this is Nathan Pippin's final meeting, Mr. Christiansen voiced the sentiments of the Board thanking
him for his service. He reminded Nathan that he needs to submit a form F1 to the supervisor of
elections.
PUBLIC COMMENT
There were no public comments at this time.
There being no further business, the Board was adjourned at 5:34 PM.
Herb Smith entered the meeting at 5:38 PM.
The Okeechobee Firefighters' Pension Board has a quorum, Herb Smith called the individual meeting of
the City of Okeechobee Firefighters' Retirement System to order at 5:39 PM,
Herb Smith made a motion to approve the Agenda for the Okeechobee Firefighters' Retirement
System. The motion received a second by Glenn Hodges approved by the Trustees 3-0.
The Board reviewed the minutes from the Quarterly Meeting which was held on August 3, 2020.
Adam Crum made a motion to approve the minutes for the Okeechobee Firefighters' Retirement
System meeting of August 3, 2020. The motion received a second by Glenn Hodges approved by the
Trustees 3-0.
Mr. McCann discussed the big picture for the quarter ending September 30, 2020. He reviewed the 1 -
year numbers for the total fund gross 12.34% with a ranking of 13th versus the policy at 10.71% (29tH)
The fiscal year ended with a 12.34%, which is an excellent return. The market value for this quarter for
the Firefighter Plan was $4,843,802 compared to the previous quarter, at $4,533,721 a difference of
$310,081. Mr. McCann reviewed the managers starting with the Fiscal Year to Date (FYTD) numbers for
Vanguard Equity -Income -2.77% (35) against the policy at -5.03% (54); Vanguard 500 Index at 15.11%
(37) compared to the policy at 15.15% (36); MFS Growth Fund ended the FYTD at 32.47% versus the
policy at 37.53%; International Equity ended at 14.97% versus the policy at 3.45%; Dodge and Cox ended
at 7.70% (25th) versus 6.98% (501h) for the FYTD for the policy. Mr. McCann said all of the managers did
well.
Mr. McCann recommended rebalancing the portfolio before the next meeting to have the holding
reflect the target asset allocations. ,The Board discussed the rebalancing and asked Mr. McCann
questions. He recommended taking the excess from the Vanguard Extended Market Index (VEXAX) and
put it in the Dodge & Cox Income Fund (DODIX).
Glenn Hodges made a motion to approve the rebalancing recommendation to take $360,000 from
Vanguard Extended Market Index to put into Dodge & Cox Income fund. The motion received a
second by Adam Crum approved by the Trustees 3-0.
Meeting December 9, 2020
Mr. McCann exited the meeting at 5:50 PM
Page 4 of 4
7. Attorney Report (Scott Christiansen)
Or. Christiansen reviewed the Trustee terms; John Koepke's term was up on 9/30/2020. Glen Hodges
advised the Board John has been unavailable and he would follow-up with him. Mr. Christiansen asked
if Josh Sanders was reappointed; yes, the Trustees reappointed Josh at the last meeting. The officers
need to be elected at this meeting.
Adam Crum made a motion to appoint Herb Smith as the Chair person. The motion received a second
by Glenn Hodges approved by the Trustees 3-0.
Herb Smith made a motion to appoint Adam Crum as the Secretary. The motion received a second by
Glenn Hodges approved by the Trustees 3-0.
Mr. Christiansen presented the meeting dates for 2021 for the Board's review.
Adam Crum made a motion to approve the meeting dates for 2021, noting the Board will now meet at
5:30. The motion received a second by Glenn Hodges approved by the Trustees 3-0.
A discussion was held on the Interlocal Agreement proposal. -The Trustees had several questions for Mr.
Christiansen and Mr. Baur on the Plan Provisions and Policies.
8. Administrative Report (Scott Baur)
Or. Baur presented the Board with the Interim Financial Statements, The Trustees received the
financials, and they were accepted by consensus and filed.
The quarterly expenses for November 2, 2020 were reviewed by the Trustees.
Adam Crum made a motion to approve the warrant for November 2, 2020. The motion received a
second by Glenn Hodges approved by the Trustees 3-0.
Herb Smith made a motion to appoint Josh Sanders as the 5`h Trustee. The motion received a second
bY Glenn Hodges approved by the Trustees 4-0.
Other Business -None
Public Comment —There were no public comments at this time
There being no further business, the Board was adjourned at 6:00 PM.
Chair
Secretary