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06-12-2023CITY OF EDGEWATER POLICE OFFICERS' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers 104 N. Riverside Drive Edgewater, FL 32132 Monday, June 12, 2023, at 1:30pm TRUSTEES PRESENT: Myles Lawler Joe Mahoney Charles Geiger David Williams Brian Gintz TRUSTEES ABSENT: None OTHERS PRESENT: Pedro Herrera, Sugarman & Susskind (via phone) Inez Garcia, Salem Trust Michelle Rodriguez, Foster & Foster John Thinnes, AndCo Consulting 1. Call to Order — Joe Mahoney called the meeting to order at 1:30pm. 2. Roll Call — As reflected above. 3. Public Comments — None. 4. Approval of Minutes a. March 13, 2023, Quarterly Meeting Minutes The Board approved the March 13 2023 guarterly meeting minutes as presented upon motion by Myles Lawler and second by Charles Geiger: motion carried 5-0. 5. New Business — None 6. Old Business a. Ordinance Amendment updates a. Michelle Rodriguez advised the board that ordinance 2023-0-23 which included the police chief opt -out and 0% floor for the Share Plan had passed first reading. Michelle commented as soon as it passed second reading, she would ask the actuary to redo the September 30, 2022, Share Plan statements. Reports (Attorney/Consultants) a. Salem Trust, Inez Garcia, Plan Custodian a. Pensioner Portal 1. Inez Garcia reviewed the features of the pensioner portal and commented it was completely optional and there was no cost to the plan. The Board voted to approve the Salem Trust pensioner portal with all functions, upon motion by Charles Geiger and second by Myles Lawler: motion carried 5-0. b. AndCo Consulting, John Thinnes, Investment Consultant a. Quarterly Report as of March 31, 2023 1. John Thinnes reviewed the market environment over the last quarter and commented both US and international equity 1 markets continued to recover. John commented expectations were for inflation to continue to decline and for the Federal Reserve to slow down rate hikes. John Thinnes explained the yield curve. John Thinnes reviewed the sector allocations of the plan and recommended they rebalance to bring their US equity and fixed income closer to their target allocations. 4. The market value of assets as of March 31, 2023, was $13,613,905. The total fund gross returns for the quarter ending March 31, 2023, were 4.64%, slightly underperforming the policy benchmark of 4.84%. The 1-, 3-, 5-, 7-, and 10 -year trailing returns were -6.00%, 10.12%, 6.40%, 7.44% and 7.08%, respectively. Since inception (10/1/00), the return was 5.41%, slightly underperforming the benchmark of 5.53%. 5. John Thinnes reviewed the individual investment funds and did not have any recommendations for changes. c. Sugarman & Susskind, Pedro Herrera, Plan Attorney a. House Bill 3 Memo 1. Pedro Herrera reviewed House Bill 3 that recently passed the Florida House and Senate. Pedro explained this bill changed the definition of a fiduciary and prohibited trustees of public pension plans to consider Environmental, Social and Governance (ESG) concerns when making investment decisions. 2. Pedro Herrera commented this new legislation would require them to submit a report to the State by December 31s' every other year and added his firm was working with the Department of Management Services to verify the details of the reporting requirements. 8. Consent Agenda a. Michelle Rodriguez commented the invoices were not included on the attachment and commented she would put it on the next agenda for the board to review and ratify. 9. Staff Reports, Discussion, and Action a. Foster & Foster, Michelle Rodriguez, Plan Administrator a. Annual Report update 1. Michelle Rodriguez advised the board that the annual report was submitted to the State on April 17, 2023. b. Educational Opportunities 1. Michelle Rodriguez reviewed educational opportunities that were available to the board. 10. Trustee Reports, Discussion, and Action — None. 11. Adiournment— The meeting adjourned at 2:14pm. 12. Next Meeting — Monday, September 18, 2023, at 1:30pm. Respectfully submitted by: Approved b C Mi helle Rodriguez, Plan Admin( r Jce oney, Chairman Date Approved by the Pension Board: