City of Port Orange Police Officers' Pension Board Quarterly Meeting Agenda
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CITY OF PORT ORANGE POLICE OFFICERS’ PENSION BOARD QUARTERLY MEETING AGENDA Port Orange Police Department Police Department Training Room 4545 Clyde Morris Blvd. Port Orange FL 32129 Thursday, February 21, 2019 9:00 a.m. Vacancy William Proctor Warren Carman Drew Bastian Brian Cobb Secretary Trustee Trustee Resident Trustee Disability Information: If you are a person with a disability who needs any accommodation in order to participate in this proceeding, you are entitled, at no cost to you, to the provision of certain assistance. Please contact the City Clerk for the City of Port Orange, 1000 City Center Circle, Port Orange, FL 32129, telephone number 386-506-5563, within two working days of your receipt of this notice or five days prior to the meeting date. If you are hearing or voice impaired, contact the relay operator at 1-800-955-8771. Appeal Notice: Any person who decides to appeal any decision made by the Port Orange Police Officers’ Pension Board will need a record of the proceedings, and for such purpose he or she may need to ensure at his or her own expense for the taking and preparation of a verbatim record of all testimony and evidence of the proceedings upon which the appeal is to be based. 1. CALL TO ORDER 2. DETERMINATION OF A QUORUM 3. ELECTION OF OFFICERS A. Elect new chairman to fill vacancy due to retirement of Chairman Steve Braddock 4. APPROVAL OF MINUTES A. Approve the minutes of quarterly meeting November 15, 2018 5. OFFICER AND TRUSTEE REPORTS 6. CONSENT AGENDA A. Ratify plan expenditures as follows: 1. Sugarman & Susskind – monthly retainer for November 2018 - $2,600; 2. Sugarman & Susskind – monthly retainer for December 2018 - $2,600; 3. Sugarman & Susskind – monthly retainer for January 2019 - $2,600; 4. Plan Administrator Karan Rounsavall – monthly fee (November 2018, December 2018, January 2019) - $9,000; 5. Florida Public Pension Trustees’ Association (FPPTA) – 2019 membership fee in FPPTA for Pension Board - $600; 6. Florida Public Pension Trustees’ Association (FPPTA) – 2019 Annual Certified Public Pension Trustee (CPPT) re-certification fee for Trustees Warren Carman and Drew Bastian - $60; Quarterly Meeting February 21, 2019 Page 2 7. James Moore & Co., CPA – Audit – Progress billing through December 31, 2018 - $4,000; 8. AndCo Consulting – investment consulting and performance monitoring services for quarter ended December 31, 2018 - $8,750; 9. First State Trust Company – custodial services for quarter ended December 30, 2018 - $4,625. 6. OLD BUSINESS 7. NEW BUSINESS A. Ratify normal retirement benefits for Steve Braddock (100 percent joint & survivor) commencing January 1, 2019 B. Acknowledge receipt of detailed accounting report for Fiscal Year 2017/2018 C. Discussion and possible action related to reasonable assurance that monthly benefit payments are received by retiree 8. CONSULTANT REPORTS A. Tyler Grumbles – AndCo Consulting (Investment Consultant) 1. Investment Performance Report for quarter ended December 31, 2018 2. Infrastructure Investment Opportunities: Telephone presentation from Brookfield on its Super-Core Infrastructure strategy Telephone presentation from JP Morgan on its Infrastructure Investments Fund strategy 3. Discussion and possible action to revise Investment Policy Statement to allow infrastructure investments B. Chad Little – Freiman Little Actuaries, LLC (Plan Actuary) 1. Presentation of annual actuarial valuation for fiscal year ending September 30, 2018 2. Declare expected annual rate of investment return for assets of Port Orange Police Officers’ Pension Plan as required by Florida Statutes C. Zach Chalifour – James Moore CPA (Auditor) 1. Presentation of draft audit of Police Pension Fund financials for fiscal year ended September 30, 2018 D. Ken Harrison – Sugarman & Susskind (Attorney) 1. Legal opinion related to reinstatement of cost-of-living increases for joint annuitants upon death of retiree as it relates to $95,000 benefit cap (question raised at November 15, 2018 meeting 2. Legal opinion related to permissibility of high yield bond investments (i.e. bank loans) in Port Orange Police Pension Fund E. Karan Rounsavall – Plan Administrator 1. Educational Opportunities: Police Officers’ and Firefighters’ Pension Trustees’ School sponsored by Florida Division of Retirement in Tallahassee (April 30 – May 2, 2019) 9. PUBLIC COMMENT 10. ADJOURNMENT CITY OF PORT ORANGE POLICE OFFICERS’ PENSION BOARD NOVEMBER 15, 2018 The Port Orange Police Officers’ Pension Board of Trustees held its quarterly meeting on Thursday, November 15, 2018 in the Police Department Training Room, 4545 Clyde Morris Boulevard, Port Orange, Florida. MEMBERS PRESENT: Chairman Steve Braddock (police member) Brian Cobb (resident member) Drew Bastian (resident member) Warren Carman (fifth member) MEMBERS ABSENT: William Proctor (police member) – excused CONSULTANTS: Ken Harrison, Board Attorney – Sugarman & Susskind Tyler Grumbles, Investment Consultant – AndCo Chad Little, Actuary – Freiman Little Actuaries Karan Rounsavall, Plan Administrator CITY STAFF: None Chairman Braddock called the meeting to order at 9:06 a.m. and asked for a roll call. A quorum was in attendance. APPROVAL OF MINUTES Member Bastian moved to approve minutes of quarterly meeting August 16, 2018 as submitted. Member Carman seconded the motion and it carried unanimously. OFFICER AND TRUSTEE REPORTS - None CONSENT AGENDA The following items were presented for action as recommended: A. Approve plan expenditures as follows: 1. Sugarman & Susskind – monthly retainer for August 2018 - $2,600. Recommendation: Ratify payment. 2. Sugarman & Susskind – monthly retainer for September 2018 - $2,600. Recommendation: Ratify payment. 3. Sugarman & Susskind – monthly retainer for October 2018 - $2,600. Recommendation: Ratify payment. 4. Plan Administrator Karan Rounsavall – monthly fee (August 2018, September 2018, October 2018) - $9,000. Recommendation: Ratify payments. 5. Florida Public Pension Trustees’ Association (FPPTA) – registration fee for FPPTA Fall Trustee School for Trustees Drew Bastian and Warren Carman - $1,200. Recommendation: Ratify payment. 6. Hyatt Regency Coconut Point Resort – lodging expenses for Trustee Drew Bastian (FPPTA Fall Trustee School) - $597. Recommendation: Ratify payment. Port Orange Police Officers’ Pension Board November 15, 2018 7. Hyatt Regency Coconut Point Resort – lodging expenses for Trustee Warren Carman (FPPTA Fall Trustee School) - $597. Recommendation: Ratify payment. 8. Trustee Drew Bastian – reimbursement of mileage and meal expenses for attendance at FPPTA Fall Trustee School in Bonita Springs - $299.72. Recommendation: Ratify payment. 9. Trustee Warren Carman – reimbursement of mileage and meal expenses for attendance at FPPTA Fall Trustee School in Bonita Springs - $299.72. Recommendation: Ratify payment. 10. AndCo Consulting – investment consulting and performance monitoring services for quarter ending September 30, 2018 - $8,750. Recommendation: Ratify payment. 11. First State Trust Company – custodial services for quarter ended September 30, 2018 - $4,625. Recommendation: Ratify payment. Member Carman moved to ratify plan expenses as recommended. Member Cobb seconded the motion and it carried on an all yes vote. OLD BUSINESS - None NEW BUSINESS A. Ratify normal retirement benefits for Aaron Mcilrath (100 percent joint & survivor) commencing October 1, 2018 Member Bastian moved to ratify retirement benefits for Aaron Mcilrath. Member Cobb seconded the motion and it carried unanimously. B. Establish quarterly meeting dates for 2019 • Thursday, February 21, 2019 at 9:00 a.m. • Thursday, May 16, 2019 at 9:00 a.m. • Thursday, August 22, 2019 at 9:00 a.m. • Thursday, November 21, 2019 at 9:00 a.m. Member Bastian moved to approve the quarterly meeting dates as set forth above. It was understood that the dates could possibly change pending an effort to coordinate a meeting date for the city’s three pension boards. Member Cobb seconded the motion and it carried on an all yes vote. C. Authorization to renew membership in Florida Public Pension Trustees Association (FPPTA) for 2019 Member Bastian moved to renew membership in FPPTA for 2019 at a cost of $600. Member Cobb seconded the motion which carried unanimously. CONSULTANT REPORTS A. Tyler Grumbles – AndCo Consulting (Investment Consultant) 1. Investment Performance Report for quarter ended September 30, 2018 Mr. Grumbles delivered the Investment Performance Report for the quarter ended September 30, 2018. Market returns were, once again, mixed across major equity and fixed income indices for the quarter. Larger cap and growth-oriented equities led the way. Domestic fixed income was flat for the quarter. Mr. Grumbles mentioned that the 2 Port Orange Police Officers’ Pension Board November 15, 2018 asset allocation for international equities increased to 15 percent during the last quarter and an increased commitment to real estate was funded. Total market value as of September 30, 2018 was $36,648,504 up from $36,367,679 for the previous quarter ended June 30, 2018. On a percentage basis, the composite portfolio was up 3.85 percent (gross) for the quarter which ranked in the 17th percentile of public plans. For the fiscal year the fund was up 9.04 percent (gross return) which ranked in the 30th percentile. The portfolio generated over $3 million in investment earnings since October 1, 2017 (start of fiscal year). Quarterly performance results (i.e. quarter ending September 30, 2018) for the various investment styles/managers represented