2012-05-07 General Fund Meetingi
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CITI( �F OFCEECHO�EE A►ND OKEECHO�EE UTBLIYY
A�UT'HORITY PEiVSIOfd BOARD (ifBEETIAdG 6�dli�l3TES
�Day 7, 20'i 2
CITY H/�LL
55 SE THIRD AVEiVUE
. 09�CEECHO�EE, FL 34974
CALi. i0 ORDER: 5:03 P.M. by Jamie Mullis
TRUSTEEATTENDANCE Jamie Mullis, Chairpe�son Melisa Jahner, Secretary
Daryl Roehm Kevin Barbour
NOT IN ATTENDANCE: l.inda Tewksbury
OTHERS PRESENT
NOT 1N ATiENDANCE:
iNVESTMENT REPORTS
Scott Christiansen, Attomey
Jack Evatt, Bogdahn Group
David Kefly, Bowen Hanes
Janet McKinley, Financial Liaison
Basil Coule, Fnancial Liaison
A. David Kelly of Bowen Hanes r�viewed the portfolio summary forApril 30, 2012 being at 16.1% average retum
(9/30/2011 - 4130/2012), and showing the three year average retum at 1i.7% (5118/2009 - 413Q/2012). It has been a
good six months. ihe beginning market value as of 9I312011 was $6,6t1,809.11 with the ending market value on
4l3Q12012 being $7,652,OOD.71.
B. Jack Evatt of the Bo,gdahn Groap presented an overview for the quarfer ending March 31, 2012 stating the
maricet is healthier, it was a good quarter wifh nice gains. The Total Fund Market Value as of 1l1I2012 was
$7,236,274.00 and ended on 313112012 with $7,926,562.00 showing a gain of 1.01% di�erence far the quarter, and
1.74% for the fiscal year. He then reviewed the Compliance Checklist as follaws: 7otaJ �und Compliance: The Total
Pian retum equalled or exceeded the ac#uarial eamings assumption rate of 7°/a over the three year period but was not
applicable for the five year period; the retum did not equal or exceed fhe tatal plan benchmark over the trailing th�ee
year period and was not applicable far the five year, the Tofaf Plan tetum did not rank within the tap 40°i percentile of ifs
peer group over t�e trailing three year period and was not applicable for the f�ve year. Equity Compliance: The total
domestic equity retum did not meet or exceed the benchmark over the trailing t�ree year period, but did over the
trailing five year period; t�e total domestic equity �etums did not rank within the top 40°i percentiie of its peer group over
the traifing three and five year periods; the total equity allocation was less than fid% of the tatal plan assets at cost and
less than 70°/fl of the total plen assets at market; the total foreign equity was less than 15% of the total plan assets at
rriarket; Fviced lncome: Total fixed income re#ums did not meet or exceed #he benchmark over the trailing three and five
year periods; the total ficed income retums did not rank within the top 40'' percen6fe of ifs group over the trailing #hree
and ftve year periods; 85% of all fixed income investments have a minimum rating of investment grade or higher,
Manager Compliance: There was less than four consecutive quarters of under performance r�lative to the benchmark.
C. The Salem Trust Statements were reviewed reflecting the activity for the months of January - March, 2012 for
the foUowing: Receipf & Disbur�ement (R & D); Equity and Fixed (ncome.
A letter was distributed for the boards to review and approve ac6on, �egarcling direction for the management
of the R& D accounts by maintaining a target balance of $104,400.00 for the payment of t�e Plan's
obligations. Scott Christiansen, af Christiansen & Dehner, P.A., Fensian Atfomey, informed alf boards that a
motion to approve the letter was in o�der.
ITEMSIREPORTS FROM BOARDAT70RNEY CHR1SilANSEN
He reported that all the ordinances were approved by the City Council at fheir April 3, 2012 meeting, and were
• sent to the appropriate persons in Tallahassee. Reminded the Police Board about the safary changes for
officers, effective July 1, 2011. Financial Disclosure Forms must be submifted by July or a fine will be
enforced. Nothing was passed by legislafion at this fime.
Chief Davis and Secretary Taylor informed Attomey Christiansen that the City Council at their May 1, 2Q12
mee4ng, discussed their frustration and disappointment of not r�ceiving the actuaria! reports in a timely '
fashlon. Attomey Christiansen will get Request for Proposals for actuaries for the next scheduled
meeting, August 6, 2012, excluding Gabriel; Roeder, Smith & Co.
4. UNFINISHED BUSINESS TO DlSCUSS IN OPFN SESSION
Mr. Evatt distributed a portfolio for consideraiion of investor managers for bonds {fixed income), as was
directed from the February 13, 2012, meeting. Those included wer�: Bair� Aggregate Bond Fund; Dodge &
Cox lncome Fund; JP Morgan Core Bond Select Fund and PIMCO Total Retum Fund.
Mr. Kelly disfributed some information, on behalf of Bowen Hanes, showing their performance to be wifhin the
acceptable benchmaric.
5. NEW BUSINESS 70 DISCUSS IN OPEN SESSION.
There was none.
RECESS FROM OPEN SESSION AND CONVENE IN INQIVIDUAL SESSION.
CITY GENERAUOUA PENSION B�ARI} OF'fRUSFEE ITEMS:
A. �aryl Roehm moved fo approve the February 13, 2092 minutes as presented; seconded by Jamie Mullis.
• Motion carried.
B. Melisa Jahner moved to approve the financial reports,1-5 of the agenda; secanded by Kevin Barbour.
C. Jamie Muliis moved to approve the letter to Salem Trust Company, designating $100,000.00 be maintained to
be a target balance in the R& D account for the payment of the Plan's obligefions; seconded by Kevin Barbour. Motian
carried. •
Jamie Mullis moved to approve that A�omey Christiansen will bring forward to the board at the August 6,
2012 meeting, Requests for Proposals forActuaria( Seroices, excluding Gabriel, Roeder, Smith &
Co.; seconded by Melisa Jahner. Mo6an carried.
The Board discussed the maiter of considering a separate investor manager for bonds (fixed income). It was
decided fhat each member would da some research and review the matertals distrlbuted at the
meetinq, and a Sneciai MeetinQ will be cafled before the scheduled Auaust meetina to make a final
decision.
D. There being no further business, the meeting was adjoumed at 7:43 p.m.
Me(isa Jahner, Secretary
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