09-14-2021CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Tuesday, September 14, 2021, at4:00pm
TRUSTEES PRESENT: Justin Nickels
David Blair
Ron Hayward
James Binder
Herb Epstein
TRUSTEES ABSENT: None
OTHERS PRESENT: Pedro Herrera, 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 4:11 pm.
2. Public Comments — None.
3. Reports (Attorney/Consultants)
a. Bowen, Hanes, and Co., David Kelly, Investment Manager
i. Quarterly Report through June 30, 2021
1. David Kelly reviewed the market environment.
Note: Herb Epstein arrived at 4:14 PM.
2. David Kelly commented he would realign the to get the plan back in
compliance.
The Board voted to accept the quarterly report as presented upon motion by James Binder and
second by Herb Epstein; motion carried 5-0.
b. AndCo, John Thinnes, Investment Consultant
i. June 30, 2021, Quarterly Report
1. The market value of assets as of June 30, 2021, was $20,484,871.
2. The total fund net returns for the quarter ending June 30, 2021, were
7.80°/x, outperforming the policy benchmark of 5.75%. The 1-, 3-, 5-, 7-,
and 10 -year trailing returns were 28.39%, 14.27%, 13.11%, 9.76% and
9.73°/x, respectively. Since inception (12/01/01), the return was 6.94%,
slightly underperforming the benchmark of 7.61 %.
The Board voted to approve the quarterly report as presented upon motion by James Binder and
second by Herb Epstein, motion carried 5-0.
4. Approval of Minutes
a. June 14, 2021, Quarterly Meeting Minutes
b. August 13, 2021, Disability Hearing Minutes
The Board approved the June 14 2021 quarterly meeting minutes as presented upon motion by
David Blair and second by Ron Hayward: motion carried 5-0
The Board approved the Auqust 13, 2021, disability hearing meeting minutes as presented upon
motion by Herb Epstein and second by David Blair; motion carried 5-0.
5. New Business
a. 511 Trustee Election
The Board voted to re-elect David Blair as the 51h Trustee upon motion by Herb Epstein and second
by Ron Hayward; motion carried 5-0.
b. Officer Elections
The Board voted to elect David Blair as Secretary and Justin Nickels as Chairman upon motion by
Herb Epstein and second by James Binder; motion carried 5-0.
c. 2022 Meeting Dates
L Michelle Rodriguez advised the Board she changed the September 12, 2022, date
to September 19, 2022, because the City Commission was scheduled to meet on
September 12, 2022.
The Board voted to approve the proposed meeting dates upon motion by David Binder and second
by Ron Hayward; motion carried 5-0.
d. Fiscal Year 21-22 Proposed Budget
i. Michelle Rodriguez reviewed the proposed budget and the different expenditure
types. Pedro Herrera explained preparing a proposed budget every year was a
disclosure requirement of Chapter 175/185.
ii. Justin Nickels asked what percentage of the plan assets the administrative
expenses were. John Thinnes commented they represent roughly 50bps or 0.5%
which was reasonable for a plan of this size.
The Board voted to approve the fiscal year 2021-2022 proposed budget upon motion by Herb
Epstein and second by James Binder; motion carried 5-0
e. Annual Service Provider Review
i. Justin Nickels commented one of their administrative policies required the board
to review one service provider's contract each year. The board reviewed their legal
services contract with Sugarman and Susskind. Pedro commented their firm had
provided legal services to the board since 1998 and they had not increased their
rates since 2014. Justin Nickels commented he would like to see more timely
responses from Ken Harrison, but otherwise was very happy with Sugarman and
Susskind. Pedro advised the board he would send an updated service contract
with no changes in fees or services.
6. Old Business — None.
Reports (Attorneys/Consultants)
a. Foster & Foster, Doug Lozen, Plan Actuary
i. Investment Return Study
1. Doug reviewed the actuarial analysis he presented at the last meeting and
commented lowering the investment return assumption from 7.25% to
7.00% would increase the funding requirements of the plan by
approximately 1.4% of payroll. Doug added even though the plan was
overfunded, the excess funds cannot be used to offset current funding
requirements.
2. John Thinnes commented he agreed with the actuary's recommendation
to reduce their investment return assumption to 7.00%.
The Board voted to lower the investment return assumption to 7.00% in conjunction with the
October 1, 2021 actuarial valuation report, upon motion by David Blair and second by Ron Hayward;
motion carried 5-0.
Consent Agenda
a. Payment Ratification
i. Warrants #81, #82 and #83
b. Invoices for payment approval
i. None
c. Fund activity report for June 8, 2021, through September 7, 2021
The consent agenda was approved as presented, upon motion by James Binder and second by
Herb Epstein; motion carried 5-0.
Staff Reports, Discussion, and Action
a. Foster & Foster, Michelle Rodriguez, Plan Administrator
i. Update on State Monies
1. Michelle Rodriguez commented the plan received $186,555.00 this year
and it was deposited on august 23, 2021.
b. Educational Opportunities
i. Michelle reviewed upcoming education opportunities for the board.
10. Trustees' Reports, Discussion, and Action — None.
11. Adjournment — Meeting adjourned at 5:21 pm.
12. Next Meeting — December 13, 2021, at 4:OOpm.
Respectfully submitted by:
Michelle Rodriguez, Plan Admi ' tra
Approved
u �inNickels, Chairman
Date Approved by the Pension Board: 1 a / 121 /3