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09-19-2022 CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES City Council Chambers Monday, September 19, 2022, at 10:30 AM TRUSTEES PRESENT: Bridgette Vaissiere Dilena Talley Tim Sopko TRUSTEES ABSENT: Brenda DeWees Tyna Hilton OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson (via phone) Frank Wan, Burgess, Chambers &Associates Doug Lozen, Foster& Foster Michelle Rodriguez, Foster& Foster 1. Call to Order— Bridgette Vaissiere called the meeting to order at 10:33 AM. 2. Roll Call—As reflected above. 3. Public Comments— None. 4. Approval of Minutes a. June 13, 2022, Quarterly Meeting Minutes The Board approved the June 13, 2022, quarterly meeting minutes as presented, upon motion by Dilena Talley and second by Tim Sopko; motion carried 3-0. 5. New Business a. Proposed Meeting Dates i. Michelle Rodriguez reviewed the meeting dates for 2023. 6. Old Business i. Ordinance#2022-0-17 Update 1. Michelle Rodriguez commented Ordinance Amendment 2022-0-17 passed second reading and she sent a form for members to request a calculation. Bonni Jensen commented she would review the form and let them know if any changes should be made. 7. Reports a. Foster& Foster, Doug Lozen, Plan Actuary i. Foster& Foster Fee Proposal 1. Doug Lozen reviewed the Foster & Foster fee and commented the updated fees would be effective 10/1/22 and thereafter would be tied to annual inflation. 2. Dilena Talley asked if the administrator and actuarial valuation fees were included in this proposal and Doug commented they were not. The Board voted to approve the fee proposal as presented, upon motion by Tim Sopko and second by Dilena Talley, motion carried 3-0. b. Burgess, Chambers &Associates, Frank Wan, Investment Consultant i. Quarterly Report as of June 30, 2022 1. Frank Wan reviewed his Market Overview report and commented it had been a tough quarter with the bond market substantially losing. 1 2. Frank Wan commented this was in large part due to the Federal Reserve raising interest rates. 3. Frank Wan commented the economy as a whole was not doing bad and there were predictions for continued growth for U.S. corporations. 4. Frank Wan commented he was disappointed with the Virtus, Ceredex, Allspring funds' performances and he would be watching them to see how well they pivot to come back in the next quarter. 5. Bridgette Vaissiere asked if there was a benchmark for the Allspring fund and Frank Wan said they shared a benchmark with the Vanguard Growth fund. 6. Frank Wan commented the Real Estate market was doing well however it was expected to cool down in the future. 7. Frank Wan commented since they were a closed plan, member contributions decrease while benefit payments increase and his recommendation, along with the actuary, was to lower their rate assumption over time. Frank commented they should also lower their risk by moving more towards a fixed income strategy. 8. The market value of the plan as of June 30, 2022, was $11,890,553. The fund's total net returns for the quarter were -10.4%, underperforming the policy benchmark of-9.2%. Trailing total fund gross returns for the 1, 3, and 5-year periods were-13.9%, 4.6% and 5.5% respectively. c. Klausner, Kaufman, Jensen, and Levinson, Bonni Jensen, Plan Attorney i. There was no report provided. d. Foster& Foster, Michelle Rodriguez, Plan Administrator i. There was no report provided. 8. Consent Agenda a. Ratification of Warrants i. Warrants#81 b. New invoices for payment approval i. Warrant#82 c. Fund Activity Report for June 7, 2022, through September 13, 2022 The Board approved the consent agenda as presented, upon motion by Tim Sopko and second by Dilena Talley; motion carried 3-0. 9. Trustee Reports, Discussion, and Action — None. 10. Adiournment—The meeting adjourned at 11:23 AM. 11. Next Meeting — December 12, 2022, at 10:30 AM. Respectfully submitted by: Approved by: Michel a Rodriguez, P an Admin rat rends DeWees, Chair Date Approved by the Pension Board: ( —r 2