09-26-2018CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Wednesday, September 26, 2018 at 1:30PM
TRUSTEES PRESENT, Lawrence Leaf
Alexander Penalta
Aaron Soltz
TRUSTEES ABSENT: Joe Mahoney
Larry Brinson
OTHERS PRESENT: Ken Harrison, Sugarman & Susskind
Ferrell Jenne, Foster & Foster
Michelle Rodriguez, Foster & Foster
John Thinnes, AndCo Consulting
Mindy Johnson, Salem Trust
1. Call to Order — Alex Penalta called the meeting to order at 1:39 pm.
2. Roll Call — As reflected above.
3. Public Comment — None.
4. Approval of Minutes
The minutes from the July 13, 2018, quarterly meeting were approved upon motion by
Lawrence Leaf and second from Aaron Soltz, motion carried 3-0.
5. New Business
a. Election of 51h Trustee Seat
i. The discussion of the election of the 5th trustee was tabled until the next
meeting.
b. Election of Officers
i. The board discussed the current Chairman and Secretary designations.
The board voted to -reappoint Alex Penalta as Chairman and Aaron Soltz as Secretary upon
motion by Lawrence Leaf and second by Aaron Soltz, motion carried 3-0.
c. Upcoming Trustee Term Expirations
i. Alex Penalta commented Larry Brinson resigned from the board effective
immediately. Alex commented Larry's seat is appointed by Council.
Ferrell Jenne confirmed they will reach out to the City Clerk regarding the
vacancy.
d. Proposed 2018 •- 2019 Budget
i. Ferrell Jenne reviewed the budget requirement under S8172 and the
different expenditure types. Ken Harrison further explained the
guidelines.
The board voted to approve the proposed 2018 — 2019 budget as presented, upon motion
by Lawrence Leaf and second by Aaron Soltz, motion carried 3.0.
6. Old Business None
7. Reports
a. AndCo Consulting, John Thinnes, Investment Consultant
i. Quarterly report as of June 30, 2018
1.
John Thinnes reviewed the June 30, 2018 quarterly report and
commented the fund was poised to post a strong report for the
end of the fiscal year.
2.
The market value of the fund as of June 30, 2018 was
$9,916,674.
3.
Gross total fund returns for the quarter were 1.36%, slightly
overperforming the policy benchmark of 1.32%. Trailing total
fund gross returns for the 1, 3 and 5 -year periods were 8.23°/x,
6.30% and 7.96%. Since inception (101112000) gross returns
were 5.15%, slightly underperforming the policy benchmark of
5.20°/x.
4.
John Thinnes commented that Becker and MFS growth funds
were outperforming their benchmarks in large part because of
FAANG stocks.
5.
John Thinnes commented international stocks were down 3% for
the quarter, in large part because of the effect of trade war
rhetoric on emerging markets. Fixed income continues to be a
tough market.
6.
John Thinnes commented that overall this was a good fiscal year
for the fund with market assets surpassing the 10 million mark.
Sugarman & Susskind, Ken Harrison, Plan Attorney
i. Ratification of the ILOD disability application (Adam Burris)
1. Aaron Soltz asked if there would be a conflict of interest because
of his personal relationship with Adam Burris. Ken Harrison
commented that there would be no conflict of interest since
Aaron was not involved with evaluating his eligibility for disability.
His decision would be based solely on the information presented
by the independent medical exam (IME) and the medical
records.
The board voted to accept the in line of duty disabilitV application as presented, upon
motion by Aaron Soltz and second by Lawrence Leaf, motion carried 3-0.
ii. Discussion of redacting the disability documents
1. Ken Harrison commented that neither the administrator nor the
attorney included redaction of documents in their contracts. The
prior attorney did redact all disability records and billed for the
time spent redacting the documents.
The board voted to approve Sugarman and Susskind to redact disability documents at
their hourly rate, upon motion by Aaron Soltz and second by Lawrence Leaf, motion
carried 3-0.
iii. Discussion of the July 24, 2018, Opinion Letter
1. Ken Harrison reviewed his firm's opinion letter stating a
participant in the plan may receive normal retirement benefits
while serving as Director of Public Safety.
The board voted to accept the July 24 2018 opinion letter as presented, upon motion b
Aaron Soltz and second by Lawrence Leaf, motion carried 3-0.
iv. Ken Harrison commented he would need to change some of the
language in the share plan policy so that it would be in compliance with
IRS requirements. Ken commented the determination letter from the IRS
shed light on some of the shortcomings in the language of the policy.
Ken commented that this would be farther discussed at the next meeting.
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Ken commented there were no new legislative measures that would
affect the board.
8. Consent Agenda
a. Payment Ratification
i. Warrant #49, #50, #51 and #52
b. Fund activity report for July 7, 2098 — September 10, 2018.
The board voted to approve the consent agenda as presented, upon motion by Lawrence
Leaf and second from Aaron Soltz, motion carried 3-0.
9. Staff Reports, Discussion, and Action
a. Foster & Foster, Ferrell Jenne and Michelle Rodriguez, Plan Administrator
i. Upcoming educational opportunities
1. Ferrell Jenne reviewed the upcoming educational opportunities.
Ken Harrison reminded the board about the educational
requirements.
2. Ferrell Jenne reviewed the State Monies and commented the
plan would be receiving approximately $16,000 more than the
prior year. Ferrell Jenne commented the State Annual Report
had been approved and the money had been deposited into the
fund.
3. Aaron Soltz commented he was approached by a member
asking if he was allowed to pay for buyback using payroll
deductions. Ferrell Jenne reviewed rules for buying back time
and commented there was a new provision to allow for payroll
deductions. Ferrell stated that any members with questions could
call their office and the provision can be explained.
10. Trustee Reports, Discussion, and Action — None.
11. Adjournment — The meeting adjourned at 2:16 p.m.
12. Next Meetinq — Monday, December 11, 2018, at 1:30 p.m.
Respectfully submitted by:
Ferr li enn Olan Administrator
Approved by:
Alexander Penalta, Chairman
Date Approved by the Pension Board: ) R f `E
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