03-14-2022 CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, March 14, 2022, at 4:00pm
TRUSTEES PRESENT: Justin Nickels
David Blair
James Binder
Herb Epstein
TRUSTEES ABSENT: Ron Hayward
OTHERS PRESENT: Mindy Johnson, Salem Trust(via phone)
Pedro Herrera, Sugarman, Susskind, Braswell & Herrera (via phone)
John Thinnes, AndCo Consulting
David Kelly, Bowen Hanes & Company
Doug Lozen, Foster& Foster
Michelle Rodriguez, Foster& Foster
1. Call to Order—Justin Nickels called the meeting to order at 4:01 pm.
2. Public Comments—None.
3. Approval of Minutes
a. December 13, 2021, Quarterly Meeting Minutes
The Board approved the December 13, 2021, quarterly meeting minutes as presented, upon motion
by James Binder and second by Herb Epstein; motion carried 4-0.
4. New Business
a. Member Elected Trustee Seats—Justin Nickels and James Binder
i. Michelle Rodriguez commented Justin Nickels member elected trustee term
expired on 4/7/22 and Jim Binder's member elected trustee term expired on
3/13/22. Michelle advised the board a request for nominations was sent out for
both seats on 211/22 and no nominations were received, therefore both trustees
ran unopposed and would serve for another two-year term.
The Board ratified the results of the member elected trustee seats for Justin Nickels and James
Binder, upon motion by David Blair and second by Herb Epstein: motion carried 4-0.
b. Actual expenses as of September 30, 2021
i. Michelle Rodriguez reviewed the individual expenditures and advised the Board
they did not go over budget.
The Board approved the actual expenses as of September 30, 2021, as presented, upon motion by
Herb Epstein and second by James Binder, motion carried 4-0.
5. Old Business—None.
6. Reports (Attorney/Consultants)
a. Bowen Hanes, David Kelly, Investment Consultant
i. December 31, 2021, Quarterly Investment Report
1. David Kelly commented the current geopolitical climate had added to the
volatile market environment. David commented the plan had done very
well over the years and was protected against potential market losses.
The Board voted to approve the December 31,2021,quarterly investment report as presented, upon
motion by Herb Epstein and second by James Binder, motion carried 4-0.
b. Foster& Foster, Doug Lozen, Plan Actuary
i. October 1, 2021, Actuarial Valuation Report
1. Doug Lozen commented the plan experience was favorable overall and
added sources of actuarial gain included an investment return of 11.88%
which exceeded the 7.25% assumption, inactive mortality experience, and
an average salary increase of 4.63% which fell short of the 4.93%
assumption.
2. Doug commented the plan continued to be overfunded and carried a credit
of more than $900,000 in unfunded liability.
The Board approved the October 1, 2021, valuation report as presented, upon motion by James
Binder and second by Herb Epstein; motion carried 4-0.
The Board voted the declaration of returns for the plan shall be 7.00% for the next year, the next
several years, and the long-term thereafter net of investment related expenses, upon motion by
Herb Epstein and second by James Binder, motion carried 4.0.
c. AndCo, John Thinnes, Investment Consultant
i. December 31, 2021, Quarterly Report
1. John Thinnes reviewed the market environment over the last quarter and
commented U.S, economic growth had remained strong, however, the
global economy had slowed.
2. The market value of assets as of December 31,2021,was$22,260,965.
3. The total fund net returns for the quarter ending December 31,2021, were
7.86%, outperforming the policy benchmark of 5.76%. The 1-, 3-, 5-, 7-,
and 10-year trailing returns were 20.11%, 19.18%, 14.33%, 10.78% and
11.49%, respectively. Since inception (12/01/01), the return was 7.20%,
slightly underperforming the benchmark of 7.71%.
d. Sugarman, Susskind, Braswell & Herrera, Pedro Herrera, Plan Attorney
i. Pedro commented the legislation that would have made COVID 19 a presumed
disease did not pass.
ii. Securities Litigation Case, PG&E Bankruptcy
1. Mindy Johnson explained that PG&E were claiming some of their
securities litigation losses in their bankruptcy proceedings and Chicago
Clearing House had identified this plan as a shareholder. Pedro
commented he had reviewed the engagement letter from Rolnick, Kramer
and Sadighi and found it to be sound. Pedro added the board did not have
to use this firm, but he was comfortable if they decided to engage this firm.
2. David Kelly asked for confirmation that the plan had owned PG&E stock,
Mindy confirmed it was in the fixed bond account.
The Board voted to engage Rolnick, Kramer and Sadighi to represent the plan in the PG&E
securities litigation case to intervene in the bankruptcy proceeding upon motion by Herb Epstein
and second by David Blair, motion carried 4-0.
7. Consent Agenda
a. Payment Ratification
i. Warrants #86 and #87
b. Invoices for payment approval
i. None
c. Fund activity report for December 7, 2021, through March 7, 2021
The consent agenda was approved as presented, upon motion by David Blair and second by Herb
Epstein; motion carried 4.0.
8. Staff Reports, Discussion, and Action
a. Foster& Foster, Michelle Rodriguez, Plan Administrator
i. Retirement Process
1. Michelle Rodriguez reviewed the retirement process and commented she
would make a checklist for the member's reference.
ii. Educational Opportunities
1. FPPTA 38th Annual Conference June 26-29, 2022, Orlando, FL
a. Michelle Rodriguez reviewed educational opportunities that were
available to the board.
9. Trustees' Reports, Discussion, and Action— None.
10. Adlournment- Meeting adjourned at 5:22pm.
11. Next Meeting -June 13, 2022, at 4:OOpm.
Respectfully submitted by: Approved by:
4xeAa / e-11
Mi helle Rodriguez, Plan Administr or stin Nickels, Chairman
Date Approved by the Pension Board: 6 bs 2 a-