2013-08-05 General Meeting & General Fund Meeting�J
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AUTHORITY/POLICE/FIRE PENSION BOARDS
REGULAR MEETING MINUTES, AUGUST 5, 2013
CITY HALL, 55 SE THIRD AVENUE
OKEECHOBEE, FL 34974
TRUSTEE ATTENDANCE:
CITY OF OKEECHOBEE/OUA
POLICE:
FIRE:
OTHERS PRESENT
Jamie Mullis, Chairperson
Daryl Roehm
Robbie Ellerbee (�sitor)
Denny Davis, Chairperson
Russ Cale
Mike Skipper, Secretary
Gary Ritter
Scott Christiansen, Attomey
Jack Evatt, Bogdahn Group
Janet McKinley, OUA Financial Liaison
Basil Coule, OUA Financial Liaison
1. CALL TO ORDER REGULAR MEETING: 5:10 p.m. by Jamie Mullis
Melisa Jahner, Secretary
Linda Tewksbury
Bettye Taylor, Secretary
Bill Bartlett
Adam Crum
2. INVESTMENT REPORTS:
A. BOWEN & HANES — No representative for review. There was no discussion on this matter.
B. THE BOGDAHN GROUP - Jack Evatt, of the Bogdahn Group, presented an overview for the quarter ending June
30, 2Q13. The Total Fund Quarterly to Date for the City General/0UA Fund beginning 4/1/13 $8,583,379.40 and
ending 6/30/2013 with $8,526,369.00. The Total Fund Year to Date as of 10/1/2012 $8,139,554.00 and ending
6/30/13 with $8,526,369.00. According to the compliance checklist as of 6130/13, the retum did equal or exceed
the actuarial earnings assumption rate of 7% over the trailing three year period, but did not for fhe trailing five year
period. The plan retum did not equal or exceed the benchmark for the three and five year period. The plan did not
rank within the top 40m percentile of its peer group over the trailing three or five year period. The total domestic
equity retums did not meet or exceed the benchmark over the trailing three or five year period, but the total equity
allocation was less than 60% of the total plan assets at cost and less than 70% of the assets at market. The total
foreign equity was less than 15% of the total plan assets at market. The total fixed income retums did not meet or
exceed the benchmark over the trailing three and five year periods, but 85% of all fixed income investments have
a minimum rating of investment grade or higher.
Mr. Evatt distributed to all boards for consideration: Manager Evaluation Domestic and Intemation Equity
proposals. Proposal One: All Active - with Ridgeworth at 33%, Wells Fargo at 33% and Vanguard Extended
� Market Index at 34%; Proposal Two: Active LC/Passive — Dana at 66% and Vanguard Extended Market Index at
34%; Proposal Three: Passive LC/Active SMID —Vanguard 500 Index at 66% and Eaton Vance Atlanta Capital at
34%. There was also an option for an All Passive approach with 100% for Vanguard Total Stock Market Index.
For ciafication, the managers that are Active focus on growth and take more risks by trying to beat the benchmark.
• They generaliy do better when the economy is better. The Passive managers use the value approach and are
less sensitive to changes in the economy. Their goal is to meet the benchmark. The best choice is to have a
balance of both.
The Intemational Equity choices were: American Funds EuroPacific Growth, Litman Gregory Masters
Intemational, Thomburg International and Vanguartl Total Intemational Stock Index.
ITEMS/REPORTS FROM BOARD ATTORNEY CHRISTIANSEN
The Fire Pension Board they still needed to submit and approve their minutes from the May meeting;
The Fire and Police Boards have expiring terms September 30, 2013.
Everyone was in good standing with their financial disclosure forms.
The appointment of Officers of each baard will be on the next agenda for the November meeting
The IRC Ordinances for all boards were adopted by the City Council and sent to Tallahassee.
4. UNFINISHED BUSINESS TO DISCUSS IN OPEN SESSION. There was discussion without the Monitor being
present between all boards regarding the proposals. The consensus was Proposal 2: (Active/Passive, Dana 66%
and Vanguard 34%). The American Funds EuroPacific Growth was the consensus for the International Market.
• Attomey Christiansen stated to each board they would have to vote individually.
5. NEW BUSINESS TO DISCUSS IN OPEN SESSION. — There was none.
6. RECESS FROM OPEN SESSION AND CONVENE IN INDIVIDUAL SESSIONS AT 7:15 P.M.
CITY GENERAUOUA PENSION BOARD OF TRUSTEE ITEMS:
A. Motion to dispense with the reading and approve the minutes for the Special Meeting held on June 20, 2013. Melisa
moved to aqprove the June 20, 2013 Sqecial Meetinq minutes as presented; seconded bv Linda. Motion carried
unanimouslv.
B. Motion to approve the financial reports as presented by Basil Coule, Pension Financial Liaison: Melisa moved to
approve the financial reports 1-4 as presented on the aQenda; seconded bv Daryl. Motion carried unanimouslv.
1. Check register from April 2013 through June 2013.
2. Statements from Salem Trust that reflect activity for the General Pension Fund for the months April
through May, 2013 for the following accounts: Receipt & Disbursement, Equity & Fixed Income.
3. Approve the list of inembers terminated and/or contributions refunded or rolled over from 4/1I2013 to
6/30/2013: Peggy Aaron —OUA.
4. New membe�s enrolled from 4/1/2013 to 6/30/2013: Carmen Gould-OUA.
C. Accept Kevin Barbour's resignation: (No resignation letter). Jamie explained that Kevin moved and Mr. Robert
Ellerbee was interested in the vacancy.
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D. Unfinished or New Items from Board Members. Melisa moved to accept the recommendation from the Consultant,
• Jack Evatt of the Boqdahn Group, for Proposal 2 for pomestic Equitv and American Funds
EuroPacific Growth for the Intemational Equitv, and to authorize Attomev Christiansen to draw up the
contract accordinqlv; seconded bv Jamie. Motion carried unanimaouslv.
E. ADJOURN MEETING: The meeting was adjourned at 7:25 p.m.
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Minutes prepared by: Melisa Jahner, Secretary