07-13-2018CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Friday, July 13, 2018 at 4:OOPM
TRUSTEES PRESENT: Dominick Fede
Justin Nickels
Dick Calabrese
William Dailey
David Blair
TRUSTEES ABSENT: None
OTHERS PRESENT: David Kelly, Bowen, Hanes & Company
Ken Harrison, Sugarman & Susskind
John Thinnes, AndCo Consulting
Tracy Barlow, City Manager
Mindy Johnson, Salem Trust
Ferrell Jenne, Foster & Foster
1. Call to Order — Dominick Fede called the meeting to order at 4:00 p.m.
2. Roll Call —As reflected above.
3. Public Comments — None.
4. Approval of Minutes
The board voted to approve the minutes from the March 19 2018 meeting, upon motion by William
Dailey and second from Justin Nickels motion carried 5-0.
New Business
a. Discussion of allowing replenishment of sick and vacation time
i. Dominick Fede commented that currently, replenishment was not allowed.
Dominick commented that he had spoken to other departments and learned that
some do allow replenishment. Dominick commented that he would like the City to
consider a replenishment option.
J. Ken Harrison commented the changes to allow replenishment would have to be
negotiated between the bargaining units. If it was agreed upon by the bargaining
units, Ken commented he would draft and ordinance amendment.
iii. Tracy Barlow reviewed the Florida Statute, regarding the definition of
compensation and the City's interpretation of the word "earned".
iv. Tracy Barlow reviewed proposed language that would allow for replenishment,
which was absent in the statute. Tracy reviewed how the City came to the
interpretation that they would not allow for replenishment.
v. The board discussed correspondence between the City, attorney, and State
regarding the mandatory cash -in.
vi. Tracy Barlow commented the City's biggest concern was to be sure they abide
by the Florida Statute.
vii. Ken Harrison commented he would follow-up with the Division of Retirement
about the forced cash -in.
viii. Ken Harrison discussed the word "may" stating that this didn't mean it was
mandatory.
6. Old Business — None.
Reports
a. Salem Trust, Mindy Johnson, Custodian
i. Mindy Johnson reviewed the quarterly service report and policies Salem Trust
had in place to prevent cybercrime.
ii. Mindy Johnson reviewed the cyber liability policy Salem Trust had.
iii. Mindy Johnson gave a brief update on Globetax and commented that it was up
and running.
The board voted to approve Salem Trust's quarterly service report, upon motion by Justin Nickels
and second from William Dailey,motion carried 5-0.
Bowen Hanes & Company, David Kelly, Investment Consultant
i. June 30, 2018 quarterly report
1. David Kelly gave an overview of the market and commented he believed
the 311 quarter will be a volatile one.
2. David Kelly reviewed new portfolio holdings.
3. The market value assets as of June 30, 2018, were $13,531,933.08
4. David Kelly reviewed the stocks and the fixed income allocations.
The board voted to accept the Bowen & Hanes report as presented, upon motion by David Blair
and second from Justin Nickels Motion carried 5-0.
c. AndCo, John Thinnes, Investment Manager
i. March 31, 2018, Quarterly Report
1. John Thinnes gave an overview of the market environment during the
quarter.
2. John Thinnes reviewed the treasury yield curve and commented that
interest rates had risen again during the quarter.
3. John Thinnes reviewed the asset allocation and commented that no
rebalancing was needed.
4. The total fund net returns for the quarter ending June 30, 2018 were
2.03%, outperforming the benchmark of 1.3%. Trailing returns for the 1,
3 and 5 -year periods were 9.77%, 6.98% and 9.14% respectively. Since
inception (1211101), net returns were 5.66%, underperforming the
benchmark of 6.66%.
5. John Thinnes reviewed the compliance check list.
6. John Thinnes commented that through July the plan was up
approximately 7.5%
7. John Thinnes reviewed the risk associated with the current allocation.
8. The board briefly reviewed a possible allocation to real estate.
The board voted to approve the March 31. 2018, quarterly report from AndCo as presented, upon
motion by Justin Nickels and second from David Blair, motion carried 5-0.
I Sugarman & Susskind, Ken Harrison, Attorney
i. Proposed ordinance and updated Summary Plan Description (SPD)
1. Ken Harrison commented that no pension reform bills had passed in
session. Ken commented a bill did pass that allowed members to file for
a PTSD disability through workers' compensation.
2. Ken Harrison reviewed the proposed ordinance that was drafted by the
City and commented he had no issue with the language.
3. Ken reviewed the share plan distribution method and recommended
holding back 20% of the initial share plan distribution in case the plan
was a negative return.
The board voted to approve the proposed ordinance with the addition of adding the initial share
plan distribution being 80% of the balance, and to send it to the actuary for an actuarial impact
statement upon motion by Justin Nickels and second from William Dailey, motion carried 5-0.
4. The Board reviewed the procedure and administrative rules for the
supplemental benefit.
The board voted to approve the administrative rules and procedures for the supplemental benefit
accounts with the revision to Section 8 to state 80% of the share plan balance is to be distributed
at the initial distribution, upon motion by David Blair and second from Justin Nickels, motion
carried 5-0.
5. The board discussed the PTSD bill that passed and the possible impacts
to the pension plan.
6. Ken Harrison commented they had hired two new attorneys.
8. Consent of Agenda
a. Payment ratification.
i. Warrant #39, #40, #41 and #42.
b. Fund activity report for March 13, 2018 — July 6, 2018.
The board voted to approve the consent agenda as presented, upon motion by Dick Calabrese
and second from David Blair, motion carried 5-0.
Staff Reports, Discussion, and Action
a. Foster & Foster, Ferrell Jenne, Plan Administrator.
i. Upcoming educational opportunities.
1. Ferrell Jenne reviewed the upcoming educational opportunities.
ii. Ferrell Jenne reviewed the SB534 requirements and commented all calculations
had been sent to the city for processing
iii. Ferrell Jenne commented that the Annual Report had been filed with the State.
10. Trustees' Reports, Discussion. and Action — None.
11. Admournment — Meeting adjourned at 5:30 p.m.
12. Next Meeting — October 12, 2018, at 4:00 p.m.
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