2008-11-10 Police Fund Meeting• CITY OF OKEECHOBEE POLICE FIRE AND OKEECHOBEE
UTILITY AUTHORITY
PENSION BOARD MEETING MINUTES
November 10, 2008
CITY GENERAL/OUA, POLICE AND FIRE FUNDS
1. The meeting was held at City hall, 55 Southeast 3rd Avenue, Room 200,
Okeechobee, Florida, and was called to order by Mr. Mullis at 5:00 p.m.
CITY GENERAL/OUA MEMBERS
Jamie Mullis, Chair - Present
Robin Brock — Present
Basile Coule-Present
Jerry O'bannon-Present
Jess Manson-Present
POLICE OFFICERS MEMBERS
Denny Davis, Chair - Present
Bettye Taylor, Secretary-Present
Victoria Williams - Absent
Louise Chandler - Present
Bill Bartlett- Absent
FIREFIGHERS MEMBERS
• Bill Douglas, Secretary-Present
Brook Conway-Present
John Keopke-Present
Glen Hodges-Present
Meeting called to Order by Jamie Mullis at 5:00 PM.
Bo�ven Hanes
Bowen Hanes representative spoke first. He advised he was at the meeting to discuss the
Fixed Income side of the Portfolios. He advised that the Market was terrible for everyone
the whole month of October. He advised that the Sub prime Market was operating with
loans for people with no income verifcation. He advised that their company did not deal
in the real estate market so they did not pay much attention until the problems started to
affect Wall Street. Said their company does not think we are headed into a depression.
Said the Federal Reserve and Treasury are implementing every tool they have to turn this
volatile market around. Said the investment market has grounded to a halt. Said
commodity cost is down.
Said stock market is cheap right now. They are focused on companies with little or no
debt. Corporation's cash net worth has never been higher. The companies will start
spending again soon. Hedge funds collect money to invest then borrow again their loans.
• Said they are now having to sell and are losing a lot of money.
• Their company is total managers for a lot of funds. They feel with total control of the
fund they can have more mobility with when and how to invest money to get maximum
return. Said this has helped them in their investment strategies.
Said after considering everything they have agreed to handle the 3 funds as consolidated
fund for the flat fee of 50 basis points if they have total control of the whole fund. Said he
knew we were considering Vanguard Investments, which is a good fund, but it does not
have active management to move money when it needs to.
Said spread between Treasury Bonds and Corporation Bonds has widened. Said normally
they are close but this economy has widened the basis points between them. Said the
Treasury Bonds are losing value. Said with Trillion Dollars being pored into the economy
some felt like it might spike inflation. Said this means their investment managers have
started buying some corporate bonds, which have an inflation index, built into them.
Said the three plans will do well with the right mix of assets, which requires a total
manager.
Bogdahn Group
Timothy Nash from Bogdahn Group said Vanguard Investments is a passive management
account. Said we would have a more active manager if we allowed Bowen to take total
• account instead of dividing it up.
Said this had been a very difficult quarter for everyone. October was very bad. Market is
off by 1/3. With negotiating for lower fees and preserving capital will be able to get
through the losses. Our portfolios are better then most due to the stocks and bonds that
we had. Police had a total loss of 12.46%. We were in top of pack in investment. Bond
Managers at Trusco did a good job. Our Portfolio's did well in such a tough market. Each
of the boards has a 60% equity limit with 10% in foreign investments.
After searching the best deal for a custodian to replace Trusco the one with the best deal
and lowest fees is Salem Trust. They have an account minimum of $4000.00 and a fee of
6 basis points.
Attorney Scott Christiansen
Recommended the boards not sign the new contract with GRS, as he does not like some
of the items they have included in it.
Advised for Fiscal Year Letter #2 addressed to Okeechobee City Council via Mr.
Whitehall needs to be done by each board.
Advised Timothy Nash would be the point man for the transitions to Bowen Hanes and
• Salem Trust.
,
• Advised that Police Board needs to vote to appoint Chairman and Secretary.
Police Votes
Louise Chandler made motion, seconded by Bettye Taylor, approved by all for Bowen
Hanes to take over as Total Manager of Portfolio.
Louise Chandler made motion, seconded by Bettye Taylor, approved by all for Salem
Trust contracts to be signed to make Salem new custodian of Portfolio.
Louise Chandler made motion, seconded by Denny Davis, approved by all to accept
minutes from October 20, 2008.
Louise Chandler made motion, seconded by Bettye Taylor, approved by all to accept
expenditures for June 2008 through October 2008.
Bettye Taylor made motion to table GRS contract and give Scott Christiansen permission
to renegotiate contract. Seconded by Deruiy Davis, approved by all.
The board decided to wait for reappointment of Chairman and Secretary until we have a
full board at next meeting.
. Bettye Taylor made motion to adjourn meeting. Seconded by Denny Davis
Meeting adjourned at 6:50 PM.
Denny Davis
Chairman
Bettye Taylor
Secretary
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