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2016-08-01 General Meetingr � • • 1. CALL TO ORDER ``�y.OF•aXfF�y > � Sw �. ,,..� `a� ~ �~ r p t ' ,� ;. , O 6 :��b -4_� r do CITY OF OKEECHOBEE/OKEECHOBEE UTILITY � 9t # AUTHORITY/POLICE/FIRE PENSION BOARDS REGULAR MEETING MINUTES, August 1, 2016 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 Jamie Mullis called a meeting of the Board of Trustees for the City of Okeechobee/Okeechobee Utility Authority/Police/Fire Pension Boards to order at 5:09 PM in the Conference Room at Station 83. Scott Baur called roll for the three Boards. TRUSTEES CITY OF OKEECHOBEE/OUA Jamie Mullis, Chairman Jackie Dunham, Secretary Robert Ellerbee Daryl Roehm Jose Santiago POLICE Denny Davis, Chairman Bill Bartlett Ray Worley Jack Boon FIRE Adam Cruz Michael Skipper, Secretary Glen Hodges 2. PUBLIC COMMENT There was no public comment. 3. REPORTS Dana Investment Advisors (Gre� Peters) OTHERS Scott Baur & Brittany Park, Resource Centers Scott Christiansen, Attorney Tony Kay &Jack Evatt Bogdahn Group Greg Peters, Dana Investment Advisors Mindy Johnson, Salem Trust Greg Peters introduced himself and reported on the performance for the quarter; 1.3% vs. the index at 2.46%. The index returns were positive for the second quarter and eight out of the ten sectors were positive for the quarter. He explained that Dana seeks to invest in higher quality companies. There has been an improvement in performance through May and June and the portfolio made 9 purchases which outperformed by 5.4% in the month of June. The overall performance was 5.2%. Mr. Peters believes that the market is expensive, but has faith in the current companies. He stated that is comfortable with the holdings in regards to the buyback and dividends. He advised that if the economy stays healthy the feds may raise rates but not anytime soon. � LJ Meeting August 1, 2016 Investment Consultant Report ITonv Kav& Jack Evatt) Page 2 of 4 lack Evatt introduced Tony Kay and advised that his role in the firm is changing and explained that he will be less available on a regular basis and Mr. Kay will take over as the lead consultant. Mr. Kay discussed Brexit and market sell offs which rallied back despite all of the volatility. The quarter was up 2.5% with more risk on trade and small caps were favored more and US stocks underperformed due to Brexit. Mr. Kay explained that there has been a lot of volatility in terms of where the return has been. It was tough for investment and active managers to perform in these volatile markets and challenging but there are gains out there. He discussed fixed income and that the bond market is saying not to expect the GDP to be greater than 1%. Rates have also come down since June 30, 2016. He additionally provided an update on the firm explaining there has been lots of growth with 71 employees, 34 of which are investment consultants. Mr. Kay discussed the asset breakdown and stated that all 3 plans increased in market quality and there were investment gains. The City plan was up $300k, the Police plan was up by $100K, and the Fire plan was up by $60K. 40% of the assets and large cap core were 33% and there were no issues with asset allocation. He reviewed the financial reconciliation and stated that there was good income appreciation performance and a good quarter and also the fiscal year to date, despite volatility. There was a 2% rate of return for a113 plans and Mr. Kay stated that he is happy with the overall performance. • Mr. Evatt advised that the fee has increased 5% since the end of this quarter and has been strong since then and equity markets are up by 4%. The election will create opportunity for an increase in volatility and there will be good news and bad news as far as the market is concerned. Salem Trust (MindvJohnson) Mindy Johnson was present to execute the Globe Tax documents. Mr. Christiansen clarified that this international tax opportunity to get back money because of subject to treaties and reminded the Board that there is no cost. Mr. Christiansen advised that he has reviewed the documents and made his corrections and he is ready to move forward. The Boards have already approved the documents at the prior Board meeting so they will just need to be signed today. Attornev Report (Scott Christiansen) Mr. Christiansen advised that they held a special meeting on July 18, 2016 for the General and Utility Authority Board in regards to the separation of assets. Those minutes will be reviewed and approved at the meeting in November. Most of the Trustees will need to be reappointed every 4 years. Police Trustee Chief Dennis Davis is retiring on September 1, 2016 so his elective term needs to be replaced. The elections and appointments will need to be made prior to next meeting. For the Fire plan, Mr. Koepke's term is up and will need to be reappointed by city before the next meeting. Mr. Christiansen advised that the Okeechobee Utility Authority adopted the new plan effective October • 1, 2016 which will provide for a new Board of Trustees. He explained that he went through the current ordinance and pulled out references to the Utility Authority plan and the current board composition. Mr. Christiansen added a paragraph which will keep Jackie Dunham as the elected City appointed Meeting August 1, 2016 Page 3 of 4 • Trustee. Daryl Rohem is appointed and lose Santiago is the 5"' member on Utility Authority and agreed he will continue to serve until he is replaced. He specifically put that those 3 members will continue to serve until replaced which will keep 3 people for purposes of a quorum. Mr. Christiansen requested that Mr. Santiago continue to serve to September 1 until reconstitution of the plan and pending the City's decision. Both contemplate movement of liabilities of assets from the current plan to the new established plan. Mr. Christiansen suggested that the Utility Authority hold elections prior to the October 1 effective date that way there will be enough time to set up a meeting to select service providers. The City plan needs to do their election as well prior to October 1, 2016 of the new elected and appointed trustees. Mr. Christiansen recommends approving it based on the pending decision with the City at their council meeting on August 16' 2016. He advised that this has already been sent to the City clerk. . Mr. Mullis inquired with Mr. Christiansen specifically on what the Utility Authority Board members need to do. Mr. Christiansen advised they are still part of the Board until October 1, 2016 and after that date, will no longer be eligible to serve on the Board. The Police plan officers will need to be selected for the next Board meeting. Mr. Christiansen additionally advised that everyone filed their form 1 disclosures. All of the ordinances have been completed for all of the plans and the budgets will be presented today. The state money is also in route to come in for deposit. Administrator Report (Scott Baur) • Mr. Baur presented the Police and Fire Expense Report and Administrative Budgets and noted that the budget serves as a spending tool to operate the plan. If it is changed or gone over within the fiscal year, it needs to be refiled with the City. These are two separate requirements that are combined in one single document. Mr. Baur explained the various categories and what they are used for. It will need to be approved as amended then filed. Mr. Baur additionally discussed conferences and Trustee education and offered the Boards some opportunities. Mr. Christiansen advised that each Trustee is required to attend 1 time out of every 4 years serving term. Ray Worley from the Police Board made a motion to approve the expense report and budget as amended. Bill Bartlett seconded the motion, approved by the Trustees 4-0. Bill Bartlett from the Police Board made a motion to approve the expense warrant dated August 1, 2016. Jack Boon seconded the motion, approved by the Trustees 4-0. Jack Boon from the Police Board made a motion to approve the DROP entry for Robert Peterson. Bill Bartlett seconded the motion, approved by the Trustees 4-0. Adam Crum from the Fire Board made a motion to approve the expense report and budget as amended. Michael Skipper seconded the motion, approved by the Trustees 3-0. Adam Crum from the Fire Board made a motion to approve the expense warrant dated August 1, • 2016. Michael Skipper seconded the motion, approved by the Trustees 3-0. Meeting August 1, 2016 Page 4 of 4 • Jamie Mullis from the City and Utility Authority Board made a motion to approve the expense warrant dated August 1, 2016. Jackie Dunham seconded the motion, approved by the Trustees 5-0. 4. ADJOURNMENT There being no further business, the Trustees adjourned the meeting at 6 pm.