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06-19-2017CITY OF EDGEWATER FIREFIGHTERS' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers Monday, June 19, 2017, at 4:OOPM TRUSTEES PRESENT: David Blair Dominick Fede Justin Nickels William Dailey TRUSTEES ABSENT: Scott Hopkins OTHERS PRESENT: Ferrell Jenne, Foster &Foster Ken Harrison, Sugarman & Susskind John Thinnes, AndCo Consulting David Kelly, Bowen, Hanes & Company 1. Call to Order —Dominick Fede called the meeting to order at 4:05pm. 2. Roll Call — As reflected above. 3. Public Comments —None. 4. Approval of Minutes 5. New Business aI Election of Chairman and Secretary. i. Ferrell Jenne commented that the last officer election was done on September 14, 2015, and should be done annually. The election was delayed until there was a full board in place. The board would further discuss this topic later in the agenda when Justin Nickels arrived. b. Scott Hopkins term expiration of July 20, 2017. i. Dominick Fede advised that Scott Hopkins resigned from the board. Ferrell Jenne commented she would let Council know about his resignation so they could work to get the Council appointed seat filled. c. State Annual Report memo from Foster & Foster. i. Ferrell Jenne reviewed the memo and advised there would be an increased Annual Report fee of $500. Ferrell commented that the production time to upload and file the Annual Report using the State's mandated online submittal process had increased production time by almost 50%. ii. Ken Harrison commented that all plans were voicing concerns about issues with the online submittal process. The board approved the $500 Annual Report fee increase as outlined in the Foster & Foster memo, upon motion by David Blair and second by William Dailey, motion carried 3- 0. 6, Old Business —None. i' The minutes from the March 20, 2017, quarterly meeting were approved upon motion by William Dailey and second by David Blair, motion carried 3-0. 5. New Business aI Election of Chairman and Secretary. i. Ferrell Jenne commented that the last officer election was done on September 14, 2015, and should be done annually. The election was delayed until there was a full board in place. The board would further discuss this topic later in the agenda when Justin Nickels arrived. b. Scott Hopkins term expiration of July 20, 2017. i. Dominick Fede advised that Scott Hopkins resigned from the board. Ferrell Jenne commented she would let Council know about his resignation so they could work to get the Council appointed seat filled. c. State Annual Report memo from Foster & Foster. i. Ferrell Jenne reviewed the memo and advised there would be an increased Annual Report fee of $500. Ferrell commented that the production time to upload and file the Annual Report using the State's mandated online submittal process had increased production time by almost 50%. ii. Ken Harrison commented that all plans were voicing concerns about issues with the online submittal process. The board approved the $500 Annual Report fee increase as outlined in the Foster & Foster memo, upon motion by David Blair and second by William Dailey, motion carried 3- 0. 6, Old Business —None. i' 7. Reports a. Bowen, Hanes & Company, David Kelly, Investment Manager. i. Quarterly report as of March 31, 2017 and update as of June 14, 2017. 1. David Kelly gave a brief overview of the market environment during the quarter. 2. David Kelly reviewed new holdings in the portfolio. 3. The total portfolio return fiscal year to date through June 14, 2017 were 11.4% underperforming the S&P 500 and Russell 1000 benchmarks. 4. The ending market value as of June 14, 2017 was $12,261,985.24. b. Andco Consulting, John Thinnes, Investment Consultant. i. Quarterly report as of March 31, 2017. 1. John Thinnes gave a brief overview of his role with the plan. 2. John Thinnes gave a brief overview of the market environment during the quarter. 3. As of June 19, 2017, the market value of assets were approximately $12,400,000. 4. Total fund net returns for the quarter were 5.20%, outperforming the policy benchmark of 4.50%. Fiscal YTD total fund net returns were 6.17%, outperforming the benchmark of 5.22%. Trailing returns for the 3 and 5 year periods were 5.42% and 7.82%. Since inception (12/01/2001) net returns were 5.21%, underperforming the policy benchmark of 6.48%. 5. John Thinnes reviewed the compliance checklist commenting that none of their plans had met or equaled the investment return assumption over the trailing 3 -year period. 6. John Thinnes did not recommend making any changes. 7. John Thinnes reviewed the fee analysis and commented that the 45 BPS fee was lower than other plans around the State that were 100% actively managed. The board approved the AndCo Consulting March 31, 2017, quarterly report as presented upon motion by William Dailey and second by David Blair, motion carried 3-0. c. Sugarman &Susskind, Ken Harrison, Board Attorney. i. Legislative update. 1. SB 80 was adopted to require 5 days written notice prior to bringing a public records suit. The written notice must identify the public records request at least 5 business days before filing suit. The 5 day written notice provision only applies if the agency has posted contact information for the records custodian in it "primary administrative building." 2. By consensus, the board agreed to have Ferrell Jenne work with the City to get a public records memo posted on the City's website. 3. SB 7022 — Dealt with revisions to FRS, all new entrants would go into the defined contribution plan by default. 4. Ken Harrison asked if he could use the plan's share plan language as an example for other plans. The board agreed. ii. Ken Harrison updated the board regarding his meeting with the City Manager pertaining to forced cash -ins. iii. Ken Harrison commented that he would need a specific example to challenge the City Manager's stance on forced cash -ins being pensionable. iv. Ken Harrison commented he would follow-up on paying contributions on hours that weren't pensionable. 8. Consent Agenda a. Ferrell Jenne briefly reviewed the fund activity spreadsheet and payment warrants with the board. The board voted to approve to the consent agenda as presented upon motion by David Blair and second by William Dailey, motion carried 3-0. second by William Dailey, motion carried 4-0. 9. Staff Reports, Discussion, and Action a. Foster & Foster, Ferrell Jenne, Plan Administrator. i. Fiduciary liability update 1. Ferrell Jenne advised that an application has been submitted to the City to secure coverage for the next fiscal year. ii. Senate Bill 534 1. Ferrell Jenne commented that the SB 534 posting requirements were sent to the City on May 24, 2017, and she received confirmation they were posted to the City's website on May 25, 2017. iii. Educational opportunities. 1. Ferrell Jenne commented that the FPPTA 331d Annual Conference would be held June 25 — 28, 2017 in Orlando, Florida at the Omni ChampionsGate Resort. iv. Ferrell Jenne reminded the board to file their Financial Disclosure forms prior to July 1, 2017 to avoid penalty fees. Note: The board took a break from 5:05 — 5:15 p.m. Note: Justin Nickels arrived at 5:15 p.m. 10. The board discussed the officer elections. The board voted to maintain the current officer elections upon motion by David Blair Daileyand second by William Dailey, motion carried 4-0. 11. Adjournment —The meeting adjourned at 5:20PM. 12. Next Meeting —Monday, October 23, 2017, at 4:OOPM. ctfully u mitted by: Approved by: I Jenny, Plah Administrator Date Approved By the Pension Board: Dominick Fede, Chairman