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HomeMy WebLinkAbout12-21-2021City of Clermont Retirement Plon and Trust for the Police Officers DRAFT Minutes: Quarterly Meeting December 01, 2021 1. Chair Scott Tufts called a Quarterly Meeting of the Retirement Plan and Trust for the Police Officers Board of Trustees to order at 9:07 AM, December 1, 2021 in Council Chambers at the Clermont City Hall. Chair Scott Tufts called roll. Those persons present included: TRUSTEES OTHERS Scott Tufts, Chair Scott Baur & Kyle Tintle, Administrator (Resource Centers) John Baker, Secretary Scott Christianson, Attorney (Christianson & Dehner) Jason Sayre Bonni Jensen, Attorney (Klausner Kaufman Jensen & Levinson) Mark Vitek (Electronically) Mindy Johnson & Debbie Kocsis, Salem Trust Larry Cole, Investment Consultant, Burgess Chambers & Assoc. 2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically Find exigent circumstances, allowing Mark Vitek to participate electronically. Scott Tufts made a motion to allow electronic participation by Trustee Mark Vitek due to extraordinary circumstances. Jason Sayre seconded the motion. The motion was approved by the Trustees, 3-0. 3. Approval of the Minutes: August 25, 2021 The minutes for the meeting held on August 20, 2021 should be amended to note "5 Trustees" voted on motions as extraordinary circumstances existed due to COVID; after exigent circumstances existed for Mark Vitek was at the meeting electronically. John Baker made a motion to approval of the August 25th minutes as amended. Jason Sayre seconded the motion. The motion was approved by the Trustees, 4-0. 4. Reports a) Mindy Johnson and Debbie Kocsis, Custodian (Salem Trust) Ms. Johnson introduced Ms. Kocsis to the Board and thanked them for their business, explained the role of the custodian, and set meeting expectations. She said Salem Trust needs updated signature authorizations signed every 3 years and they will provide the forms. Ms. Kocsis will be taking over the relationship management with the Board. b) Quarterly Investment Report: Investment Consultant, Larry Cole (BCA) Mr. Mitchell Brennan was unavailable due to illness, so Mr. Cole presented the investment report for the quarter ending on September 30, 2021. He reviewed the quarter's economic environment in light of the new COVID variant, inflation, and the government's infrastructure bill. The Plan experienced a market based loss of $130,000 (-0.4% gross and net) behind the target index (+0.3%). Mr. Cole continued and reviewed the individual manager's performance. The beginning market value was $30,756,597 and the City of Clermont Retirement Plan and Trust for the Police Officers DRAFT Minutes: Quarterly Meeting December 01, 2021 ending market value was $30777819431 a loss of-$130,465 (total fund-0.4%). Mr. Cole reviewed the current asset allocation and he does not recommend a rebalancing at this time. However, he does recommend increasing the private real estate allocation by 1 million dollars. The fiscal year gain of 21.6% compared to 19.6% for the benchmark ranks in the top 34%. Mr. Cole reviewed TA Realty as an additional real estate allocation that has a heavier allocation of multifamily housing sectors than the index. He therefore recommends the Board allocate 1 million dollars to the manager, taking $500,000 from large cap growth and $500,000 from large cap value. TA Realty will give a 30 day notice for the capital call. The manager has a founder's fee of 70 basis points through December 315t 2021. John Baker questioned taking the money from equites, but the assets already have an overweight to equities. Jason Sayre made a motion to reallocate $1,000,000 to TA Realty, based on the recommendation of the investment consultant, subject to the review by Counsel. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. Jason Sayre made a motion to authorize the Chair Scott Tufts to reallocate the $1,000,000 if there is a capital call in between meetings. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. c) Attorney Report (Scott Christianson, Christiansen & Dehner) and (Bonni Jensen, (Klausner Kaufman Jensen (a Levinson) Mr. Christianson did some housekeep issues and introduced Bonni Jensen to the Board. She will be assuming the existing contract with the Board and will transition to be legal cancel for the Police Officers' Board of Trustees. Mr. Christiansen is downsizing his practice and will be working with boards closer to his office. Jason Sayre thanked him for his service to the Board and to the City of Clermont. Jason Sayre made a motion to authorize the transition of the assignment of Legal Counsel to Bonni Jensen of Klausner, Kaufman, Jensen &Levinson. Mark Vitek seconded the motion. The motion was approved by the Trustees, 4-0. d) Administrator Report (Scott Baur, Resource Centers) Mr. Baur introduced Ms. Kyle Tintle from the Resource Centers to the Trustees. He gave an update on the 185 premium tax receipt, the CAFR is still pending. Mr. Baur discussed the need for an auditor. A discussion was held noting the Board would have more control of the process with a separate auditor, Jason Sayre made a motion to issue an RFP for an auditor for the pension plan. Scott Tufts seconded the motion. The motion was approved by the Trustees, 4-0. The Board will have an abbreviated RFP process with a special meeting in February. Mr. Baur reviewed the Fiduciary Liability Insurance policy renewal. City of Clermont Retirement Plan and Trust for the Police Officers DRAFT Minutes: Quarterly Meeting December 01, 2021 Scott Tufts made a motion to approve the Fiduciary Liability Insurance policy. Jason Sayre seconded the motion. The motion was approved by the Trustees, 4-0. 5. Benefit Approvals: Scott Tufts made a motion to approve the December 1, 2021 benefits. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. 6. Plan Financials Financial statements were received, reviewed and filed. Jason Sayre made a motion to approve Warrants dated December 1, 2021. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. 7. Other Business The cost of an actuarial cost study was discussed. 8. Public Comment There was no public comment. 9. The next pension board meeting will be Wednesday, February 23, 2022 at 9 AM. 10. Jason Sayer made a motion to adjourn the meeting. John Baker seconded the motion. The motion was approved by the Trustees, 4-0. The meeting adjourned at 10:51 AM.