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12-14-2020 CITY OF EDGEWATER FIREFIGHTERS’ PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers Monday, December 14, 2020 at 4:00pm TRUSTEES PRESENT: Justin Nickels David Blair James Binder Ron Hayward TRUSTEES ABSENT: None OTHERS PRESENT: Ken Harrison, Sugarman & Susskind (via phone) John Thinnes, AndCo Consulting David Kelly, Bowen Hanes & Company Doug Lozen, Foster & Foster (via phone) Michelle Rodriguez, Foster & Foster 1. Call to Order – Justin Nickels called the meeting to order at 4:01pm. 2. Public Comments – None. 3. Approval of Minutes a. The Board instructed the administrator to send a draft of the meeting minutes two weeks prior to meetings for them to review. The September 23, 2020, quarterly meeting minutes were approved, upon motion by David Blair and second by James Binder; motion carried 4-0. 4. New Business a. 2021 Quarterly Meeting Dates i. The Board agreed by consensus to accept the 2021 meeting dates as presented. b. Actual Expenses as of 9/30/2020 The Board approved the actual expenses as presented, upon motion by James Binder and second by David Blair; motion carried 4-0. c. FPPTA Annual Board Membership Review i. Michelle Rodriguez advised the Board their FPPTA annual membership renewal was due at a cost of $620.00. The Board voted to renew their annual FPPTA membership, upon motion by James Binder and second by David Blair; motion carried 4-0. d. Updated Summary Plan Description (SPD) i. Michelle Rodriguez reviewed the changes made to the updated Summary Plan Description. The Board asked the administrator to add language explaining the PTSD provision in the Disability Retirement section. The Board approved the updated Summary Plan Description with changes, upon motion by David Blair and second by Ron Hayward; motion carried 4-0. 5. Old Business – None. 6. Reports a. Bowen, Hanes & Co., David Kelly, Investment Manager i. Report through December 4, 2020 1. David Kelly reviewed the portfolio summary of the fund and commented he was very happy with the positive annual returns over the last ten years. The ending market value of the fund on December 4, 2020 was $18,446,992.28. b. AndCo, John Thinnes, Investment Consultant i. Quarterly Report through September 30, 2020 1. John Thinnes reviewed the market environment over the last quarter. 2. The market value of assets as of September 30, 2020, was $17,703,129. 3. The total fund gross returns for the quarter ending September 30, 2020, were 9.68%, outperforming the policy benchmark of 5.67%. Fiscal YTD total fund net returns were 14.65%, outperforming the policy benchmark of 11.10%. The 1-, 3-, and 5-year trailing returns were 14.65%, 10.62%, and 12.09%, respectively. Since inception (12/01/01), the return was 6.93%, slightly underperforming the benchmark of 6.98%. 4. John Thinnes commented he did not have any recommendations for reallocating funds at this time. The Board voted to accept the investment reports, upon motion by David Blair and second by Ron Hayward; motion carried 4-0. c. Sugarman & Susskind, Ken Harrison, Board Attorney i. Share Plan Treatment for DROP Participants 1. Ken Harrison commented the plan had its first DROP participant and advised the Board they needed to decide how the Share Plan would be treated while a member participated in the DROP. 2. Justin Nickels asked if they needed to add language to the Ordinance addressing this situation. Ken Harrison commented the Ordinance was clear that no allocations would be earned after termination or retirement, but the member can leave the Share Plan money and continue to earn the plan’s earnings. 3. Justin Nickels asked if termination of employment was the same as retirement and Ken Harrison commented it was not. Ken commented DROP participants were considered retired. 4. Justin Nickels asked how long a member can leave their money in the plan after terminating employment. Ken Harrison commented the plan’s procedures require distribution within sixty days after termination. ii. Virtual meetings 1. Ken Harrison advised the Board the Governor did not extend the Executive Order that allowed virtual meetings. Ken added some cities were passing their own emergency orders to allow for virtual meetings. iii. Legislative update 1. Ken Harrison commented there were lots of new legislators this term, however there were no upcoming changes to any pension laws. 7. Consent Agenda a. Payment ratification i. Warrants #74 and #75 b. Invoices for payment approval i. None c. Fund activity report for September 17, 2020 through December 07, 2020 8. Staff Reports. Discussion, and Action a Foster & Foster Michelle Rodriguez Plan Administrator i. Foster & Foster Cyber Liability Policy 1. Michelle Rodriguez advised the Board Foster and Foster increased their cyber liability policy to $2 million. Educational Opportunities 1. FPPTA Winter Trustee School, January 24-27, 2021, Virtual a. Michelle Rodriguez reviewed upcoming education opportunities available to the Board. 9. Trustees' Reports, Discussion, and Action a. David Blair commented Jim Jollie was in the hospital and asked everyone to pray for him. 10. Adjournment — Meeting adjourned at 5:11 pm. 11. Next Meeting — March 08, 2021, at 4:OOpm. Respectfully submitted by: O ` Michelle Rodriguez, Plan Adminis to Date Approved by the Pension Board: Approved by: Nickels, Chairman W