2009-02-09 Police Fund MeetingCJ
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CITY OF OKEECHOBEE GENERAL EMPLOYEES
OKEECHOBEE UTILITY AUTHORITY
POLICE AND FIREFIGHTERS
PENSION BOARD MINUTES
February 9, 2009
City General/OUA Members Police Officers Members Firefighters Members
Jamie Mullis, Chair-Present Denny Davis-Present John Koepke-Present
Jerry O'Bannon-present Bettye Taylor-Present Billy Douglas-Present
Jess Manson-present Victoria Williams-Absent Gary Ritter-Present
Linda Tewksbury-present Louise Chandler-Present Brook Conway-Present
Bette Clement Bill Bartlett-Present Glen Hodges-Absent
Meeting held at 55 SE 3`d Ave Room 200 Okeechobee Florida, was called to order at 5:10 by Jamie Mullis
for General Fund, Denny Davis for Police Fund and John Koepke for Firefighters Fund.
Basil Coule was present to represent the Bookkeeping side of the Pension Funds.
Attorney Scott Christiansen: Asked about the Salem Trust Contracts. Bettye Taylor asked if we did not
sign these forms back in the beginning? Christiansen advised we signed them and they were sent to
Salem and wanted to know if we received anything back. Bettye Taylor asked about an email received
from Janet McKinley at OUA referencing a request from David Frietas of Salem Trust for items needed to
complete transfer. Attorney Christiansen directed Joe Bogdahn to send an email to Salem requesting
that one original be sent to the Boards and one to him.
Christiansen advised a Money Manager would appear at every other meeting that Bogdahn will advise
us as to what is happening with our portfolios.
Christiansen questioned whether each board had completed the Social Security Letter to Tallahassee
that is required each year. Bettye Taylor advised that Janet at OUA had done the letters and sent them.
Christiansen questioned whether the Fiscal Year report had been done and sent to the City Council.
Bettye Taylor advised that these had been done.
Christiansen advised that the bill reference changes requested in the ways the investments can be
handled has been Pre-filed in Tallahassee. Said he will keep abreast of this and advise at next meeting.
Christiansen reminded Trustees to make sure their Form 1 Letters are filed with the Supervisor of
Elections in July.
Christiansen advised the Ordinance Updates were taken a little longer due to the amount of changes
having to be made to bring Pension's in to compliance with IRS rules. No cost associated just
housekeeping for the IRS rules.
• Basil Coule asked that everyone get their signature letters to Janet at OUA as soon as possible so the
transfer of money from SunTrust to Salem takes place.
Presentation by Joe Bogdahn of Bogdahn and Associates:
Major Market Performance for the Quarter everything is negative on equity side. US Gov is showing
some positive. In different economic markets the area that leads the recovery is the Corporate Bonds
side, followed by Stocks then economic data starts showing improvement. We were nine months in to a
recession before the economics would say we were in a recession. With job losses across the board on
the economics basis that is actually pretty good because the S&P then spikes up. Economic indicators
says sometime probably around September will start seeing a turn around. Lending is still tight and
rates are down.
As of 12/31/2008 short term rates are fallen but the long terms did not in the 10year and 30 year. But
now the long terms are fallen also. The problem on the credit market is the loan money is not being
spread around. A little sign of life is the Libor rate is up a little. Most commercial loans are tied to the
Libor rate. During the past year there was wide gap between the Ted Spread and Libor. Now they are
getting close again. Expects the 2"d quarter to be sluggish also.
Police Pension is down about 10.31 percent for the 1st quarter of this year. For the calendar year we
• were down 20.91 percent. Bonds did decent for the last year and the last quarter and stocks started
doing better. We have ended alright with Trusco. Bowen Hanes out performed about a couple hundred
basis points about 2 percent because of some bonds they had.
Asked that we get the signature pages in so they can get started on the transfer of moneys. Will not
move any investments until the transfer has taken place.
Louise Chandler asked if part of this quarter would still show part of Trusco Investments. They advised
yes and Scott Christiansen advised that Trusco had not hurt us in the end. He advised that we still had a
ways to go while the bad news pours out.
Discussed the letter from GRC (Actuary) asking to be paid to do a five year plan on the cost of this
recession on out pension plans. Discussed this was a needless expense at this time. After discuss with
Scott Christiansen and all three boards it was decided to table this discussion till the May Meeting to see
if there was need for this study. Discussed the letter received end of last year asking for a new contract
from GRC. Christiansen advised they were researching fiduciary responsibility for an Actuary so he
suggested we hold off until they have further information.
Bettye Taylor questioned Christiansen reference Chief larry Mobley received two different 1099's and
that Suntrust was saying it was because he had finally gotten to legal retirement age. Christiansen said
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• this was in error. Christiansen said for me to follow up and if I need to forward them to Christiansen for
clarification.
Bill Bartlett made motion to approve minutes from November 2008 meeting. Louise Chandler seconded
it. Motion passed with all in favor.
Bill Bartlett made motion to approve Expenditures:
Gabriel Roeder Smith $1450.00
Christiansen and Dehner $2364.92
LB Bryan Insurance $3306.74
Total of: $7104.01
Denny Davis questioned the expenditures to the retirees. These will show up on the last financial
statement of the Fiscal Year.
Discussion of allowing any members who want to attend the Pension Conference was conducted.
Denny Davis's advised he felt like they could attend the conference which is free but pay their own
• motel bills and per diem. He advised the board is required to attend training but the pension fund
should not incur the expense for people who just want training. He suggested they need to attend the
meetings to learn about the Pension Fund activities. Louise Chandler made motion, seconded by Bill
Bartlett to make the training at the members own expense if they are not at Trustee. Motion passed
with all in favor.
Louise Chandler made motion to adjourn seconded by Bill Bartlett with all in favor at 6:13PM.
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Denny Davis-Chairman
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Bettye Taylor-Secretary
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