Clermont Police 11-29-23 Quarterly Meeting Minutes signedS- City of Clermont
RW# Retirement Plan and Trust for the Police Officers
T DRAFT Quarterly Meeting Minutes
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NOVEMBER 29, 2023
1. Jason Sayre called the meeting of the Retirement Plan and Trust for the Police Officers Board of
Trustees to order at 9:00 AM, November 29, 2023 in Council Chambers at the Clermont City Hall. He
called roll, there was a quorum. Those persons present included:
TRUSTEES OTHERS
Jason Sayre, Chair Scott Baur & Kyle Tintle, Administrator, Resource Centers
Jimmie Harper, Secretary Sean Sendra, Attorney, Klausner Kaufman Jensen & Levinson
Kelly Cartier Mitchel Brennan & Larry Cole, Investment Consultant, BCA
Mark Marshall Scott Borror, Clermont Assistant Director of Finance
John Baker Bonni Jensen, Attorney, Klausner Kaufman Jensen & Levinson
Nancy Ziccardi, Human Resources, City of Clermont
Nadine Ohlinger, Human Resources, City of Clermont
Tracie Howe, City Clerk, City of Clermont
The oath of office was administered by Tracy Howe to Kelly Cartier and Mark Marshall.
2. Extraordinary (Exigent) Circumstances for Trustees Joining Electronically
No Trustee joined the meeting electronically.
3. Election of Board Offices
New officers were needed to be elected.
Jason Sayer nominated Jimmie Harper as Board Secretary. John Baker seconded the nomination.
Approved by the Trustees, 4-0.
Mark Marshall nominated Jason Sayer as Board Chair. John Baker seconded the nomination. The motion
Was approved by the Trustees, 4-0.
4. Approval of the Minutes
The Trustees reviewed minutes for August 23, 2023. It was noted that the motion for adjournment had a
motion by Ross Hutto and a second by Chris Martin. The minutes will be amended to show the
adjournment motion was made by Jimmie Harper and a received a second by John Baker.
Jason Sayer made a motion to approve the Minutes for August 23, 2023 as amended. John Baker
seconded the motion. The motion was approved by the Trustees, 5-0.
5. Reports
a) Mr. Cole and Mitchell Brennan, Investment Consultant (Burgess Chambers Associates)
Mr. Cole explained his role as investment consultant for the new trustees. He reported that the markets
had a disappointing September 30th quarter. The assets returned -3.2% for the period but have since
regained lost ground. Consumers continue to spend, unemployment remains low, and the economy is
strong. The plan finished the September 30th quarter with $28,217,344.84 in total assets. The assets are
in line with investment policy targets. Mr. Cole does not recommend any changes. For the 1 year period
S. City of Clermont
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Retirement Plan and Trustfor the Police Officers
LENT Minutes
C DRAFT Quarterly Meeting Minut
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NOVEMBER 29, 2023
the portfolio returned +8.0% gross and +7.6% net compared to the 10.1% for the target index.
Concentrated returns from the 7 large tech stocks accounted for 20% of the S&P 500 and 80% of the
market returns accounting for the underperformance during the last 18 months. The 7 stocks returned
92% on average year to date, while the S&P equal weight index actually has a negative return. Polan does
not own all of the Magnificent 7 stocks and not with the same concentration. Mr. Cole does not foresee
so much as a bubble in the market but a rotation in the market. He believes that the current portfolio
holdings should outperform going forward with attractive valuation.
The Board considered the Polen allocation. Mr. Cole recommends the Board give the manager time. The
plan has 3.5% cash, which is adequate for now, and the cash allocation yields 5%. The city manager noted
that the portfolio likely failed to meet the 7% target return, which may in turn cause the city contributions
to increase. He provided a brief history of city contributions.
d) Bonni Jenson, Attorney Report (Klausner Kaufman Jensen & Levinson)
Ms. Jensen reported that the state of Florida issued only vague guidance for the comprehensive report
due by December 15th. The pension attorneys therefore collaborated to create a uniform report
template consisting of a one -page affidavit of compliance along with the updated investment policy
adopted by the Board. The updated investment policy indicates that the Board invests assets only on
pecuniary factors rather than any ESG (Environmental, Social and Governance) considerations. Ms.
Jensen provided guidance for investment managers to vote proxies. The Resource Centers will file the
report by December 15th
Ms. Jensen has not heard from Jeremy Kevitt after asking him to return the benefit payments. The Board
found him to have forfeited his pension. He owes about $85,000 back to the plan. Jason Sayre asked
how they recover the funds. Ms. Jensen advised the Board can file a lawsuit. Jason Sayre weighed the
legal expense against a potential recovery. He weighed the responsibility to recover the funds. Ms.
Jensen suggested she can try to call Mr. Kevitt's criminal defense attorney. The Board may be able to
garnish his wages if he gets a job. The Board may also consider a settlement. The topic will be added to
the agenda for the next meeting for further discussion. Ms. Jensen briefly detailed the case history. It
was noted Jeremy Kevitt resides locally.
e) Scott Baur, Administrator Report (Resource Centers)
Mr. Baur informed the Trustees that the plan has been registered for the Bi-annual comprehensive report
to be submitted by December 151h. He provided the 2024 proposed meeting dates and the 2024
upcoming conference list.
Mr. Baur discussed smoothing of investment gains and losses. He talked about the timing of smoothing
and the Board discussion from the August meeting. Ms. Jensen advised most plans do apply smoothing
to the returns. The Board considered contributions and budgeting advantages and any disadvantages of
smoothing.
Kelly Cartier made a motion to implement a 5-year smoothing by the actuary. John Barker seconded the
motion. The motion was approved by the Trustees, 5-0.
S City of Clermont
CLERW' ION-r
Retirement Plan and Trust for the Police Officers
Clsdi.e>aaC4,ae,pinas DRAFT Quarterly Meeting Minutes
NOVEMBER 29, 2023
4. Benefits Approvals
The Trustees reviewed the benefit approvals for November 29, 2023.
Jason Sayre made a motion to approve the benefit approvals dated November 29, 2023. Jimmie Harper
seconded the motion. The motion was approved by the Trustees, 5-0.
The Board has the share distributions. Mr. Baur reviewed the funding of the share accounts which are
being updated.
5. Plan Financials
The Trustees received the interim financial statement for September 30, 2023. The Warrants for
November 29, 2023 were reviewed by the Trustees.
Jason Sayre made a motion to approve the Warrant dated November 29, 2023. Jimmie Harper seconded
the motion. The motion was approved by the Trustees, 5-0.
6. Other Business
The Resource Centers has already received data from the city.
7. Public Comment
There was no public comment.
8. The next pension board meeting will be Wednesday, February 28, 2024, at 11:00 AM.
Kelly Cartier made a motion to adjourn the quarterly meeting. Jason Sayre seconded the motion. The
motion was approved by the Trustees, 5-0.
9. Jason Sayre called the meeting adjourned at 11:02 AM.
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