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Retiree Health Care Investment Board

Regular Meeting

Royal Oak, MI · December 18, 2020

AgendaMinutes

Minutes

CITY OF ROYAL OAK RETIREE HEALTH CARE INVESTMENT BOARD MINUTES OF THE REGULAR MEETING OF THE BOARD OF TRUSTEES A meeting of the Retiree Health Care Investment Board of Trustees was conducted remotely via Zoom, on Friday December 18, 2020 at 8:30 a.m. The meeting was called to order at 8:53 a.m. Attendance / Roll Call performed PRESENT: Lee Collick, attending from Royal Oak, Michigan - Chairperson Bret Nelson, attending from Troy, Michigan - Vice Chairperson Kyle DuBuc, attending from Royal Oak, Michigan – Trustee Paul Brake, attending from Royal Oak, Michigan – Trustee ALSO PRESENT: Julie Rudd - Bd Chief Administrative Officer/ Bd Secretary/Bd Treasurer Lisa Genord- Administrative Assistant / Pension Technician Tom Michaud – Bd attorney with VanOverbeke Michaud and Timmony Brian Green – AndCo Investment Advisor Mark Buis – Gabriel Roeder Smith Consulting Mike Kosciuk – Gabriel Roeder Smith Consulting Public Comment Members of the public were able to participate in the meeting by joining on Zoom Webinar using Meeting ID 85470529348 & password 597124. Participation could be either online or by calling in: Online: https://us02web.zoom.us/j/85470529348?pwd=N2p4VDFGMjdFUmRKQ2Y4bjNLKzc5QT09 iPhone: 1 929 205 6099 or 1 301 715 8592 Phone: 1 929 205 6099 or 1 301 715 8592 or 1 312 626 6799 or 1 669 900 6833 or 1 253 215 8782 or 1 346 248 7799. There were no public attendees / comments. Board approval of the agenda for December 18, 2020 meeting Moved by Lee Collick to approve the December 18, 2020 meeting agenda Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Board approval of the draft minutes for November 20, 2020 meeting Moved by Lee Collick to approve the November 20, 2020 meeting minutes Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 OTHER Presentation of the Retiree Health Care Plan Actuarial Valuation Report as of June 30, 2020 by Mark Buis with Gabriel Roeder Smith. Mark reported that the Retiree Health Care Plan Actuarial Valuation Report is calculated every two years. Mark also reported that as of June 30, 2020, the city’s Unfunded Actuarial Accrued Liability is $8,350,993 and that the city’s funded ratio is 94.3%. Moved by Paul Brake to approve the Retiree Health Care Plan Actuarial Valuation Report as of June 30, 2020., and to receive and file. Supported by Lee Collick MOTION ADOPTED UNANIMOUSLY 4/0 1 GASB Statement Nos. 74 and 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions as of June 30, 2020 presented by Mark Buis with Gabriel Roeder Smith Moved by Lee Collick to receive and file. Supported by Paul Brake MOTION ADOPTED UNANIMOUSLY 4/0 Kyle DuBuc left the meeting at 8:58am INVESTMENTS Investment performance review as of November 30, 2020 presented by Brian Green of AndCo. Market value/allocation of assets as of November 30, 2020 is $139,752,043. Current month – total portfolio underperformed the benchmark: 7.97% vs. 8.65% index. 3-month performance – total portfolio outperformed the benchmark: 5.23% vs. 4.66% index. Year-to date performance – total portfolio underperformed the benchmark: 7.45% vs. 10.79% index. 1-year performance – total portfolio underperformed the benchmark: 9.94% vs. 13.44% index. 3-year performance – total portfolio underperformed the benchmark: 6.83% vs. 8.93% index. Inception – total portfolio underperformed the benchmark: 6.95% vs. 9.08% index. The complete AndCo Investment Performance Review report dated November 30, 2020 is on file in Finance Office. Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 PGIM Real Estate Prisa II Fund Review 3Q 2020 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Prisa II LP Statement of Assets and Liabilities as of September 30, 2020 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 Prisa II UHC, LP Consolidated Statements of Assets and Liabilities as of September 30, 2020 Moved by Lee Collick to receive and file. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 LEGAL None NEXT MEETING AND ADJOURNMENT Next regular meeting is scheduled immediately following the retirement system board meeting at approximately 8:30 a.m. on Friday, January 22, 2021, location TBD. Moved by Lee Collick to adjourn the meeting (9:01 a.m.) and confirm next meeting for January 22, 2021 immediately following retirement system board meeting at approximately 8:30 a.m. Supported by Bret Nelson MOTION ADOPTED UNANIMOUSLY 4/0 2

Agenda

Office of the Finance Director 203 South Troy Street Royal Oak, MI 48067 www.romi.gov NOTICE OF RETIREE HEALTH CARE INVESTMENT BOARD OF TRUSTEES MEETING The Royal Oak Retiree Health Care Investment Board of Trustees will hold a meeting at Approximately 8:30a.m*. on Friday, December 18, 2020 *immediately following the retirement system board of trustees meeting COVID-19 is a new strain of coronavirus that had not been previously identified in humans, can spread easily from person to person, and can result in serious illness or death. To mitigate the spread of COVID-19, to protect the public health, and provide essential protections to vulnerable Michiganders, it is crucial that all Michiganders take steps to limit in-person contact. The critical mitigation measures include social distancing and limiting the number of people interacting at public gatherings. Conducting the December 18, 2020 Royal Oak Retiree Health Care Investment Board of Trustees meeting in person would risk the personal health or safety of members of the public and/or the retiree health care investment board of trustees. Therefore, the meeting will be held electronically, in compliance with PA 228 of 2020 and procedures established by the Royal Oak City Commission. Members of the public can participate in the meeting on Zoom Webinar using: Meeting ID 854 7052 9348 and password 597124  Online https://us02web.zoom.us/j/85470529348?pwd=N2p4VDFGMjdFUmRKQ2Y4bjNLKzc5QT09  iPhone: 1 929 205 6099 or 1 301 715 8592  Phone: 1 929 205 6099 or 1 301 715 8592 or 1 312 626 6799 or 1 669 900 6833 or 1 253 215 8782 or 1 346 248 7799 Members of the public can also contact members of the retiree health care investment board to provide input or ask questions on any business that will come before the retiree health care investment board of trustees at the meeting via e-mail as follows:  ccdubuc@romi.gov  leec@romi.gov  bretn@romi.gov Anyone wishing to participate in the meeting who is in need of special assistance under the Americans with Disabilities Act (ADA) is asked to contact Carol Schwanger, city manager’s executive assistant at 248-246-3203 by 12:00p.m. on Wednesday, December 16, 2020, so that appropriate arrangements can be made. Office of the Finance Director 203 South Troy Street Royal Oak, MI 48067 www.romi.gov Agenda Royal Oak City Retiree Health Care Investment Board of Trustees Meeting City Hall, 203 South Troy Street Royal Oak, MI 48067 Friday, December 18, 2020 at 8:30a.m.* *Approximated time – immediately following the retirement system board meeting Zoom Webinar Meeting ID 854 7052 9348 and password 597124  Online https://us02web.zoom.us/j/85470529348?pwd=N2p4VDFGMjdFUmRKQ2Y4bjNLKzc5QT09  iPhone: 1 929 205 6099 or 1 301 715 8592  Phone: 1 929 205 6099 or 1 301 715 8592 or 1 312 626 6799 or 1 669 900 6833 or 1 253 215 8782 or 1 346 248 7799 1. Call to Order | Roll Call 2. Public Comment 3. Approval of Agenda December 18, 2020 4. Approval of Minutes November 20, 2020 5. Other Business Presentation of the Retiree Health Care Plan Actuarial Valuation Report as of June 30, 2020 by Mark Buis with Gabriel Roeder Smith (enclosed) Be it resolved that the Board receive and file. GASB Statement Nos. 74 and 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions as of June 30, 2020 by Mark Buis with Gabriel Roeder Smith (enclosed). Be it resolved that the Board receive and file. 6. Investments Market value and performance update presented by Brian Green with AndCo Investments (enclosed) Be it resolved that the Board receive and file. PGIM Real Estate Prisa II Fund Review 3Q 2020 (enclosed) Be it resolved that the Board receive and file. Prisa II LP Statement of Assets and Liabilities as of September 30, 2020 (enclosed) Be it resolved that the Board receive and file. Prisa II UHC, LP Consolidated Statements of Assets and Liabilities as of September 30, 2020 (enclosed) Be it resolved that the Board receive and file. 7. Legal - None 8. Adjournment and Next Meeting - Request the board schedule the next meeting the third Friday of the month – January 15, 2021 at 8:00a.m. on Zoom webinar

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