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03-14-2022 CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES City Council Chambers Monday, March 14, 2022, at 10:30 AM TRUSTEES PRESENT: Brenda DeWees Bridgette Vaissiere Dilena Talley Tim Sopko Tyna Hilton TRUSTEES ABSENT: None OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson Frank Wan, Burgess, Chambers & Associates (via phone) Mitchel Brennan, Burgess, Chambers, &Associates (via phone) Doug Lozen, Foster& Foster Michelle Rodriguez, Foster& Foster 1. Call to Order— Brenda DeWees called the meeting to order at 10:30 AM. 2. Roll Call—As reflected above. 3. Public Comments— None. 4. Approval of Minutes a. December 13, 2021, Quarterly Meeting Minutes The Board approved the December 13, 2021, quarterly meeting as presented, upon motion by Dilena Talley and second by Tim Sopko; motion carried 5-0. 5. New Business—None. 6. Old Business— None. 7. Reports a. Foster& Foster, Doug Lozen. Plan Actuary i. October 1, 2021, actuarial valuation report 1. Doug Lozen reviewed the summary report and commented the City's required contribution decreased by approximately $36,000.00. Doug commented this was due in part to the rate assumption being lowered to 6.25%. 2. Doug Lozen commented the funded status of the plan was 68.8% and he expected the to increase a little bit each year as long as they continued to meet their rate assumption. The Board approved the October 1, 2021, actuarial valuation report as presented, upon motion by Bridgette Vaissiere and second by Tim Sopko; motion carried 5-0. The Board voted the declaration of returns for the plan shall be 6.25% for the next year, the next several years, and the long-term thereafter net of investment related expenses, upon motion by Bridgette Vaissiere and second by Tyna Hilton; motion carried 5-0. b. Burgess, Chambers &Associates, Frank Wan, Investment Consultant i. Quarterly Report as of December 31, 2021 1 I. Frank Wan commented even though the current global environment was volatile, he expected increases in the U.S. Market to persist. 2. Mitchel Brennan reviewed the market environment over the last year and commented there had been a transition from the growth market to the value market. 3. The market value of the plan as of December 31, 2021, was$14,653,176. 4. The fund's total gross returns for the quarter were 3.1%, underperforming the policy benchmark of 4.9%. Trailing total fund gross returns for the 1, 3, and 5-year periods were 10.30%, 15.30%and 10.8% respectively. 5. Mitchel Brennan reviewed the plan's market value growth and did not have any recommendations for allocation changes. Mitchel commented the plan's holdings have a less than 0.30% exposure to Russia or Ukraine. c. Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney i. Proposed Ordinance Amendment, Retiree Trustees 1. Bonnie Jensen reviewed the language of the proposed ordinance. The board discussed whether all members of the plan, including retirees who were no longer employed with the City of Edgewater, should be allowed to serve on the board and vote in elections. 2. The Board agreed by consensus that all plan members should be allowed to serve on the Board and vote in elections. The Board approved the language of the proposed ordinance as presented and forward to the City Council for consideration, upon motion by Tim Sopko and second by Dilena Talley; motion carried 5- 0. J. Special Tax Notice 2021 1, Bonnie Jensen reviewed the changes made to the Special Tax Notice. 8. Consent Agenda a. Ratification of Warrants i. Warrants#77 and#78 b. New invoices for payment approval i. None c. Fund Activity Report for December 7, 2021, through March 7, 2022 The Board approved the consent agenda as presented, upon motion by Tim Sopko and second by Bridgette Vaissiere; motion carried 5-0. 9. Staff Reports, Discussion, and Action a. Foster& Foster, Michelle Rodriguez, Plan Administrator i. Educational Opportunities 1. Michelle Rodriguez reviewed the educational opportunities available to the board. 10. Trustee Reports, Discussion,and Action– None. 11. Adjournment–The meeting adjourned at 11:22 AM. 12. Next Meeting–June 13, 2022, at 10:30 AM. Respectfully submitted by: Approv d by: 7 M' elle o nguez, Ian Adminwtro— renda DeWees, Chair Date Approved by the Pension Board: ' ! A,� 2