03-11-2019CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Tuesday, March 11, 2019 at 9:30AM
TRUSTEES PRESENT: Bridgette King
Brenda DeWees
Tyna Hilton
TRUSTEES ABSENT: Tim Sopko
OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson
Frank Wan, Burgess, Chambers & Associates
Doug Lozen, Foster & Foster
Michelle Rodriguez, Foster & Foster
Siera Feketa, Foster & Foster
Julie Christine, City of Edgewater
Steve loncar, Ceredex
Call to Order — Brenda DeWees called the meeting to order at 9:36am.
2. Roll Call — As reflected above.
3. Public Comments — None.
4. Education Session
a. Bonni Jensen conducted an educational session for the trustees that outlined the
fiduciary responsibilities of a trustee,
b. Frank Wan conducted an educational session for the trustees on the basics of
institutional investing.
5. A2proyal of Minutes
The minutes from the December 11, 2018, quarterly meeting were approved, upon motion by
Bridgette King and second from Tyna Hilton, motion carried 3-0.
6. New Business — None.
7. Old Business
a. Update on IOUE Trustee Seat
i. The board directed the administrator to follow up with the IOUE regarding
the new union representative.
ii. The board directed the administrator to verify all of the trustee's terms with
the City Clerk.
8. Reports
a. Burgess, Chambers & Associates, Frank Wan, Investment Consultant
i. Quarterly Report as of December 31, 2018
1. Frank Wan reviewed the last quarter of 2018 and commented the
stock market experienced losses due to the unstable political
climate including rising interest rates and a trade war with China.
2. The market value of the plan as of December 31, 2018, was
$11,462,627.
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3. The total fund's gross returns for the quarter were -7.0%,
underperforming the benchmark of -6.2%. Trailing total fund gross
returns for the 1, 3, and 5 -year periods were -3.5%, 5.0% and
4.1% respectively.
4. Frank Wan suggested hiring a private real estate manager to
manage 10% of assets. He advised the board the Investment
Policy Statement (IPS) would need to be updated. The board
requested Frank to bring a representative to the next meeting
before they made a decision.
5. Frank commented that a majority of Defined Benefit plans had
investments in private real estate and that the 10% would come
from bonds.
Note: The board recessed of 10:54am.
Note: The board reconvened at 10:59am.
Ceredex, Steve loncar, Investment Consultant
i. Steve loncar reviewed the Virtus Mutual Funds Overview as of December
31, 2018 and gave a brief overview of the firm's partners and asset
allocations.
ii. Frank Wan asked if there was a less costly Collective Investment Trust
(CIT) option. Steve loncar commented the CIT was fifty basis points and
mutual funds were more regulated and typically have higher fees.
iii. Frank Wan reviewed what a CIT was.
iv. Frank Wan suggested that the board invest in CIT rather than work the
mutual funds and recommended that Bonni Jensen review. Steve loncar
stated he would send the data to Frank.
c. Foster & Foster, Doug Lozen, Plan Actuary
i. Actuarial Valuation, October 1, 2018
1. Doug Lozen commented that the gains and losses experienced in
the last year were almost entirely due to investments and mortality,
however the total assumptions seemed to be fine.
2. The City's required contribution was $799,181. A shortfall
contribution of $8,204.71 was also due for the fiscal year ending in
September 30, 2019 and until the full amount was deposited, an
interest charge of $46 was due for each full month after September
30, 2018.
3. Doug Lozen commented that going forward, no items of the
unfunded liability would be dropping off, and therefore, the City's
contributions would not change drastically from year-to-year. Doug
commented that eventually the investments would fund this plan,
and the City was funding the unfunded liability. Until the plan gets
the 5th, 6th and 71h year out, the City's cost would remain similar.
4. Doug Lozen reviewed the smoothing technique for the plan and
commented they were on a four-year smoothing.
5. The funded ratio went down 0.1% from 63.9% on October 1, 2017,
to 63.8% on October 1, 2018.
The board approved the October 31, 2018, Actuarial Valuation, upon motion by Tyna Hilton
and second by Brid ette King-, otion carried 3-0.
The board declared the returns for the plan shall be 7.70% for the next year, the next several
years, and the long-term thereafter, net of investment related expenses, upon motion by
Bridgette King and second by Tyna Hilton; motion carried 3-0.
d. Klausner, Kaufman, Jensen and Levinson, Bonni Jensen, Plan Attorney
i. IRS mileage rate
1. Bonni Jensen notified the board the IRS mileage rate was now
$0.58 per mile,
ii. Division of Retirement (DOR) Annual Report
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1. Bonni Jensen reviewed the memo and commented this year the
DOR did not have any recommendations for the legislature. Bonni
commented that the report contained data of average plans across
the State.
iii. Power of Attorney (POA) Memo
1. Bonni Jensen reviewed the POA memo and commented recent
legislative changes required POAs to be more specific. The
changes also required the POA to be in compliance with the
originating state law, but also with Florida State Law.
iv. House Bill 265
1. Bonni Jensen reviewed the proposed bill, which could affect
current open meeting laws, and outlined the ways it could affect
the administrator's preparation of documents for board meetings.
v. Public Records Law memo
1. Bonni Jensen reviewed Florida's Public Records Law. Bonni
commented there were two new exemptions, one relating to
victims of incidents of mass violence and the other exempting any
portion of a meeting that would reveal a fire safety system plan.
9. Consent Aaenda
a. Ratification of Warrants
i. Warrant #44 and #45
b. New invoices for payment approval
i. Warrant #46
c. Fund Activity Report for December 5: 2018 through March 4, 2019
i. Brenda DeWees commented that Joseph Lavender's name was incorrect
on the Fund Activity Report.
The board voted to approve the consent agenda as presented, upon motion bV T na Hilton
and second by Bridgette King; motion carried 3-0.
10. Staff Reports, Discussion and Action
a. Foster & Foster, Michelle Rodriguez, Plan Administrator
i. FPPTA Guest Registration Policy
1. Michelle Rodriguez reviewed the FPPTA's new guest policy fees
and commented there would now be a $100 registration fee for
guests. The board agreed by consensus not to cover guest fees.
ii. Upcoming educational opportunities
1. Michelle Rodriguez reviewed upcoming educational opportunities
for the board.
11. Trustee Reports, Discussion and Action
a. Julie Christine asked the administrator to send member statements directly to HR,
so they could be scanned into the member files and sent out to the members.
9. Adiournment - The meeting adjourned at 12:02pm.
10. Next Meeting - June 17, 2019, at 10:30am.
Respectfully submitted by:
Name: Michelle Rodriguez
Approved by;.. y
Name: Bf-sp4o-G..Wees—
Title: Plan Administrator Title: 9ha0pc+s-�mrc-P
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Date Approved by the Pension Board: /
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