06-13-2022CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, June 13, 2022, at 4:00pm
TRUSTEES PRESENT: Justin Nickels
David Blair
James Binder
TRUSTEES ABSENT: Herb Epstein
Ron Hayward
OTHERS PRESENT: Pedro Herrera, Sugarman, Susskind, Braswell & Herrera (via phone)
Inez Garcia, Salem Trust (via phone)
John Thinnes, AndCo Consulting
David Kelly, Bowen Hanes & Company
Michelle Rodriguez, Foster & Foster
1. Call to Order — Justin Nickels called the meeting to order at 4:00pm.
2. Public Comments — None.
3. Approval of Minutes
a. March 14, 2022, Quarterly Meeting Minutes
The Board approved the March 14, 2022, quarterly meeting minutes as presented, upon motion by
James Binder and second by David Blair; motion carried 3-0.
4. New Business — None.
5. Old Business — None.
Reports (Attorney/Consultants)
a. Salem Trust, Inez Garcia, Plan Custodian
i. Inez Garcia introduced herself and commented she was looking forward to meeting
everyone in person.
b. Bowen Hanes, David Kelly, Investment Manager
i. David Kelly commented corporate earnings had been decent and the dollar was
strong compared to other currency around the world. David commented the federal
reserve was expected to continue to increase interest rates.
The Board voted to accept the investment manager's report as presented, upon motion by David
Blair and second by James Binder; motion carried 3-0.
c. AndCo, John Thinnes, Investment Consultant
i. March 31, 2022, Quarterly Investment Report
1. John Thinnes reviewed the market environment over the last quarter and
commented this plan had more U.S. stocks than any other plan in their
universe. John commented this was a great portfolio, 75% in stocks and
in tough times it's important to stay in so they are in a good position when
the market invariably goes back up. John added they were invested in
some of the best performing bonds in the country due to Bowen and Hanes
management.
2. The market value of assets as of March 31, 2022, was $20,770,163.
3. The total fund net returns for the quarter ending March 31, 2022, were
-6.08°/x, slightly underperforming the policy benchmark of -5.12%. The 1-,
3-, 5-, 7-, and 10 -year trailing returns were 10.09%, 13.28%, 11.76%,
9.27% and 9.77%, respectively. Since inception (12/01 /01), the return was
6.78%, underperforming the benchmark of 7.33%.
Fee Proposal
1. John Thinnes commented his firm had charged a flat fee with no escalator
for the last six years and he was now proposing a 3% annual escalator.
John commented although the dollar amount was higher, the percentage
of assets was lower. John added this proposed fee increase would be
effective 7/1/22 and was guaranteed for three years.
The Board voted to approve the AndCo fee proposal as presented, upon motion by David Blair and
second by James Binder, motion carried 3-0
d. Sugarman, Susskind, Braswell & Herrera, Pedro Herrera, Plan Attorney
i. Financial Disclosure Forms
1. Pedro Herrera reminded the board their financial disclosure forms are due
on July 1st.
ii. Legislative update
1. Pedro Herrera commented the bill that would have made COVID-19 a
presumptive disease did not make it through committee but would
probably be on next year's legislative agenda.
7. Consent Agenda
a. Payment Ratification
i. Warrants #88 and #89
b. Invoices for payment approval
i. None
c. Fund activity report for March 8, 2022, through June 6, 2022
The consent agenda was approved as presented, upon motion by David Blair and second by James
Binder; motion carried 3-0.
Staff Reports, Discussion, and Action
a. Foster & Foster, Michelle Rodriguez, Plan Administrator
i. Edgewater Fire Pension Plan FAQs
1. Michelle reviewed a FAQ handout she prepared for the members. The
trustees asked her to add explanations for deferred vested retirements,
the BacDROP and a clarification of any changes allowed for benefit
payment options.
2. State Annual Report update
a. Michelle Rodriguez commented the Annual Report was approved
by the State on July 2, 2022.
ii. Educational Opportunities
a. Michelle Rodriguez reviewed educational opportunities that were
available to the board.
Trustees' Reports, Discussion, and Action
a. Justin Nickels asked if members were able to purchase volunteer service for volunteer fire
service with another agency. Pedro Herrera commented the ordinance did not allow it and
typically voluntary service was not eligible for a buyback. Pedro commented the actuary
should be consulted to see if there would be a fiscal impact to the City before proposing
any changes to the plan provisions.
b. Pedro Herrera added there would have to be a requirement for the member to provide
proof that the service was certified firefighter and/or EMT service for board approval. Pedro
suggested the certification verification process should be a procedure instead of codifying
it in the ordinance. Pedro added the Union, and the City should be made aware of this
before negotiations start in October.
10. Adjournment —Meeting adjourned at 5:32pm.
11. Next Meeting — September 19, 2022, at 4:OOpm.
Respectfully submitted by: Approved by:
Michelle Rodriguez, la Admini at stin Nickels, Chairman
Date Approved by the Pension Board: �/���