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2020-02-03 General & Fire Fund Meetings6 � CITY OF OKEECHOBEE GENERAL EMPLOYEES/POLICE/FIRE PENSION BOARDS � REGULAR MEETING MINUTES, February 3, 2Q20 CITY HALL, 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 1. CALLTO ORDER Melissa Henry called the meeting of the Board of Trustees for the City of Okeechobee General Empioyees, Police, and Fire�ghter Pension Boards to order at 5:12 PM in the Council Chamber at City Hail. Those persons present included: TRUSTEES OKEECHOBEE GENERAL Willie Hall, Jr. Kay Matchett Melissa Henry TRUSTEES POLICE Cody Daigneault 2. PUBLIC COMMENT There were no public comments at this time. OTHERS Kyle Tintle & Scott Baur, Resource Centers Scott Christiansen, Attorney, Christiansen & Dehner John McCann, AndCo India Reidel, Finance Director, City of Okeechobee Carlyn Kowalsky, Attorney, Nason Yeager Mindy lohnson, Salem Trust TRUSTEES FIREFIGHTERS Adam Crum, Secretary Glen Hodges John Koepke Josh Sanders It was noted that the Police Pension Board did not have a quorum and a Special Meeting will be scheduled later in this quarter. 3. REPOR7S Custodian Report (Mindv Johnson� Ms. Johnson began her report by apologizing to the Boards that she was unable to attend the quarter meeting due to illness. She announced the acquisition of Salem Trust as of April 1, 2020 to TMI Trust Company described as "Combined Synergies". Ms. Johnson assured the Board that there are no material changes to the interaction with Salem and described some of the strengths of TMI. She noted the account numbers would change; new instructions will be given to the Investment Managers to settle trades; the direct deposit notation will now change to US Bank; the Quarterly Service Report will have a different look; and as always they will be looking for opportunities for improvement. Ms. Johnson offered the FAQ's included in the meeting packet for the Board's review and answered questions. She reviewed the Service Report for the period ending December 31, 2019 and the Goldman Money Market Fund comparisons. Ms. Johnson thanked the Boards for the opportunity to serve them. Investment Report (lohn MKannl Mr. McCann presented a firm update for AndCo, as they celebrate the 20-year anniversary with 89 employees and $92 billion of client assets. He emphasized the firm's commitment to clients and employees; two new partners were promoted from within; nine new team members were added; and ceported AndCo is in the top 10% of money monitors. Mr. McCann provided the quarterly investment reports for each Board's review for the period ending December 31, 2019. Mr. McCann continued reviewing the performance of the portfolios for the Genera) • Employees', Firefighters' and Police Plans. The market value for this quarter for the General Plan was $5,271,315 versus the previous quarter at $4,996,240 a difference of $275,075; the Fire Plan ended the Meeting February 3, 2020 Page 2 of 4 � quarter with assets of $4,606,524 versus the previous quarters ending balance of $4,376,344 a difference of $230,180; the Police Plan ended the quarter with $10,161,001 in essets versus last quarter's balance of $9,627,356 in assets a difference of $533,645. Mr. McCann reviewed the asset allocations for each Plan. He continued with the numbers for the quarter: Generai Employees' 6.00% versus the policy of 5.47% a difference of 0.53%; Fire 5.87% versus the policy of 5.46%, a difference of 0.41%; and Police 6.02% versus the policy of 5.46% a difference of 0.56%. Mr. McCann reviewed the fiscal year to date numbers, one year, three-year, five year, and the returns since inception for each of the Plans. Mr. McCann noted that the domestic equity managers are doing quite well. The Dodge & Cox fund has done a good job in pre5erving the principle, they ranked in the 5`h percentile of their peers and 18�' for the quarter. He explained how things had turned around since the first quarter. The beginning of the fiscal year we were down 10% and now the market is going back up. Mr. McCann distributed the Intercontinental Real Estate brochures to have the Trustees familiarize themselves with the holdings of the firm. He was recommending a 10% investment in Real Estate with the funds coming from fixed income. Mr. McCa�n said that Real Estate is added to the portfolios for the long term not quick returns. It was suggested to table the discussion to the next meeting as some key board members that are interested in Real Estate were not in attendance. The topic will be added to the next regular quarterly meeting's agenda. Attornev Report (Scott Christiansen) Mr. Christiansen reported the Ordinances were modified to reflect the option to invest in Real Estate if the Boards so choose. He inquired if the investment performance for all th�ee Plans had been sent to the City. Mr. Baur replied the actual expenses will be sent to the City when we received the information • from the audited financial statement in May. The proposed cancer presumption ordinance, which was recently adopted by the Florida Legislature, has been provided to the Firefighters' Board for review. Adam Crum made a motion to accept the Proposed Cancer Presumption Ordinance and it should be presented to the City for consideration. The motion received a second from Glen Hodges, approved by the Trustees 4-0. For the benefit of the new Trustees, Mr. Christiansen reviewed the responsibilities of the Service Providers. As Mr. McCann explained, his focus is to monitor the investments to reflect the Investment Policy Statement. Administrative Report (Scott Baur) Mr. Baur described the role of the Plan Administrator handles the daily operations and acts as the coordinator for the Plan's activities. He referred to the 2020 upcoming conference list included in the meeting packets which lists the local and national meetings available. Trustee education is encouraged and recommended the Trustees attend school or a confe�ence at least once during their term. Mr. Christiansen added that his firm, Christiansen and Dehner, periodically offe�s a mini conference localfy for the Trustees benefit. There being no further business, the Boards adjourned the open session at 5:45 PM and the Trustees proceeded to their individua) sessions. Ms. Tintle attended the General Employees' Board and Mr. Baur attended the Firefighters' Board meeting. • . . ► � Meeting February 3, 2020 INDIVIDUAL SESSION: GENERAL EMPLOYEES Page 3 of 4 The meeting began with a Ms. Tintle introducing herself to Kay Matchett as it is Kay's first meeting as a new Trustee. An adjustment was made to the Agenda moving the election of a Secretary to the first item, as lackie Dunham has retired. Kay Matchett made a motion to nominate Melissa Henry as the Secretary for the General Employee Boa�d. The motion received a second from Willie Hall, approved by the Trustees 3-0. Ms. Tintle asked the Trustees if they have reviewed the November 4, 2019 meeting minutes. Melissa Henry made a motion to accept the Quarterly Meeting Minutes for the November 4, 2019. The motion received a second from Kay Matchett, approved by the Trustees 3-0. Ms. Tintle presented the Board with the financial statements for December 2019. The financial statements were received and filed. The quarterly expenses were reviewed by the Trustees. Melissa Henry made a motion to approve the Warrants presented for November 2019 to January 2020. The motion received a second from Kay Matchett approved by the Trustees 3-0. Ms. Tintle presented the Board with the new employee's acknowledgements for Yesica Monntoya and Gail Neu the acknowledgments were received by the Board. The new employee acknowledgements were accepted by consensus. • A retirement application for Jackie Dunham was presented for review. A refund of contribution application was presented for Brenda Noel the mother and beneficiary of deceased member Tiffany Noel. After a brief discussion motions were made. Melissa Henry made a motion to approve the retirement benefits for Jackie Dunham and the refund of contributions for Brenda Noel. The motion received a second from Kay Matchett approved by the Trustees 3-0. There being no further business, the Board was adjourned at 6:00 PM. Chair Secretary Meeting February 3, 2020 INDIVIDUAL SESSION: FIREFIGHTERS' BOARD Page 4 of 4 Adam Crum called the individual meeting of the City of Okeechobee Firefighters' Retirement System to order. The Board reviewed the minutes from the Quarterly Meeting which was held on November 4, 2019 and the current Warrant. Adam Crum made a motion to approve the meeting minutes for the Quarterly Meeting of the Okeechobee Firefighters' Retirement System held on November 4, 2019. The motion received a second by losh Sanders approved by the Trustees 4-0. Mr. Baur presented the Board with the Interim Financial Statements. The Trustees received the financials and they were accepted by consensus and filed. The Board reviewed the expenses for the quarter. Josh Sanders made a motion to approve the warrant for the Okeechobee Firefighters' Retirement System. The motion received a second by Adam Crum approved by the Trustees 4-0. Mr. Baur informed the Board that the City was requesting to have a study done by the Actuary employed by the Board. The City would pay for the actuarial study. Mr. Christiansen explained the Actuary would ultimately produce the impact statement if the City moves forvvard. A discussion was held about the transparency of the study produced and any study done by the City regarding the Firefighters' membership and the need for all studies to go to the membership automatically. Adam Crum made a motion to allow the City to request a cost estimate from the Board's Actuary for an impact study with the stipulation the Actuary provided copies of all the studies completed to the Board. The motion received a second by Josh Sanders approved by the Trustees 4-0. A discussion ensued on the City providing paramedic training for all Firefighters. Mr. Christiansen explained what a vested deferred benefit is and the buyback options. He said another plan made all members vested. There being no further business, the Board was adjourned at 6:15 PM. Chair Secretary . �. •� •