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03.11.24 CITY OF EDGEWATER FIREFIGHTERS' PENSION BOARD QUARTERLY MEETING MINUTES City all Council Chambers 104 N. Riverside Drive Edgewater, FL 32132 Monday, March 11, 2024, at 4.-OOpm TRUSTEES PRESENT: Ron Hayward Kory Hayward James Daly David Blair TRUSTEES ABSENT: James Binder OTHERS PRESENT: Pedro Herrera, Sugarman, Susskind, Braswell & Herrera (via phone) John Thinnes, AndCo Consulting David Kelly, Bowen Hanes & Company Doug Lozen, Foster & Foster Siera Feketa, Foster & Foster 1. all to Order— The meeting was called to order at4:01pm. 2. Public Comments — None. 3. Approval of Minutes a. December 11, 2023, Quarterly Meeting Minutes The B02rd approved the December 11, 2023, quarterly meeting minutGs as presented, upon motion by Kory Hayward and second by on avward• motion carried 4-0. 4. New Business a. Actual expenses as of September 30, 2023 i. Siera Feketa reviewed the actual expenses requirement and the total amount spent. The Board voted to approve the actual expenses as of September 30, 2023, as presented, upon motion by James Daly and second by Kory Hayward; motion carried 4-0. b. Discussion of Trustee terns & appointments i. Siera Feketa commented Ron Hayward's, City appointed trustee, term expired April 1, 2023, and both member elected seats, James Binder and Kory Hayward, were expiring. Ron Hayward and Kory Hayward stated they would serve another term. Siera commented she would confirm if James Binder wanted to serve another term and then proceed with sending out the nomination notice to the membership. c. Election of Officers (Chairman/Secretary) i. Siera Feketa commented David Blair was currently the Chairman, but the Secretary was vacant. The Board agreed by consensus to table this to the next agenda. 5. Reports (Aftorney/Consultants) a. Foster & Foster, Doug Lozen, Board Actuary i. October 1, 2023, actuarial valuation report 1. Doug Lozen reviewed the summary of the reports. Doug commented the City and state required contribution percentage of project annual payroll decreased to 22.5% for fiscal year-end September 30, 2025 from 23.2% for fiscal year-end September 30, 2024. 2. Plan experience was unfavorable overall on the basis of the plan's actuarial assumptions. Sources of actuarial loss included an average salary increase of 12.17%, exceeding the 5.09% assumption, unfavorable retirement experience, and unfavorable turnover experience. There were no significant sources of actuarial gain. 3. Doug Lozen reviewed the history of the funding progress. 4. Doug Lozen commented they would be due for an experience study, but they could probably wait one more year. The Board voted to approve the October 1, 2023, actuarial valuation report, upon motion Kory Hayward and second by on Hayward; 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 David Blair and second by on Hayward. motion carried b. AndCo, John Thinnes, Investment Consultant i. Organization update —Acquisition by Mariner 1. John Thinnes briefly reviewed the acquisition commented there shouldn't be any impact for the plan. ii. Quarterly investment performance report as of December 31, 2023 1. John Thinnes briefly reviewed the market environment for the quarter. 2. John Thinnes reviewed the asset allocation. 3. John Thinnes reviewed the asset allocation versus other public pension plans. 4. The market value of assets as of December 31, 2023, was $21,975,647. The total fund net returns for the quarter ending December 31, 2023, were 11.97%, outperforming the policy benchmark of 9.71%. The 1, 3, 5, 7, and 10-year trailing returns were 19.76%, 6.81%, 11.42%, 10.26% and 8.42%, respectively. Since inception (12/01/01), the return was 6.60%, slightly underperforming the benchmark of 6.93%. 5. John Thinnes briefly reviewed the performance of the investments. 6. John Thinnes commented he didn't have any recommendations. c. Bowen Hanes, David Kelly, Investment Manager i. Quarterly Investment Report as of December 31, 2023 1. David Kelly gave an update on the market environment. 2. David Kelly reviewed the portfolio summary. 3. David Kelly reviewed the portfolio appraisal. 4. David Kelly reviewed the performance summary. 5. David Kelly reviewed the investment for the current fiscal year and since inceptions. d. Sugarman, Susskind, Braswell & Herrera, Pedro Herrera, Plan Attorney i. Proposed Ordinance amendments 1. Pedro Herrera commented he just sent over today a draft amendment that was discussed at the last meeting to clarify the additional benefit language, essentially buying the higher multiplier. 2. James Dailey asked if there had been a cost study. Pedro Herrera commented there hadn't been the cost study, but he didn't think there would be an impact. ii. Electronic Form 1 filing requirement 1. Pedro Herrera reviewed the changes to the Form 1 filing requirements commenting they had to be filed online. iii. Proposed ordinance (continued) 1. The Board briefly reviewed the ordinance. Pedro Herrera commented this was standard language for buying up the multiplier. 2. David Blair asked what needed to be done next. 3. Pedro Herrera commented they could send it to the City and have the actuary prepare the impact statement. The Board agreed to have the plan attorney move forward with the ordinance. iv. Legislative update 1. Pedro Herrera briefly reviewed the latest update commenting there could be an impact to the state monies. Pedro commented he would continue to watch it, but he was not sure if it would pass at this time. 2. David Blair asked about the status of a plan restatement. Pedro Herrera commented he would get with Siera Feketa and see where this was and then move forward after the next agenda. 3. David Blair asked about putting a description of the ordinances on the portal. Siera Feketa commented once they had the plan restatement on there that probably wouldn't be necessary as everything would be in one document. 6. Old Business a. Online Member Portal Update i. Siera Feketa commented the City couldn't provide biweekly payroll feeds. James Dailey commented they couldn't provide accurate information because the overtime was reconciled annually. ii. Siera Feketa commented she was going to work with the police Chair between meetings to come up with better solutions. iii. The Board agreed to let the administrator have discussions between meetings and bring back to the next meeting. 7. Consent Auenda a. Payment Ratification i. Warrant#100 b. Invoices for payment approval i. None c. Fund activity report for December 5, 2023, through March 4, 2024 The consent agenda was approved as presented upon motion by Kory NUward and second by on Hayward; motion carried 4® 8. Staff Reports, Discuss.ion, and Action a. Foster & Foster, Siera Feketa, Plan Administrator i. Staff update 1. Siera Feketa commented Michelle Rodriguez was no longer with Foster & Foster, but they shouldn't see any impact to their services. ii. Discussion of disability affidavits 1. Siera Feketa briefly reviewed the disability affidavits. The Board commented this was discussed at last meeting. Siera commented she would double check and update them at the next meeting regardless. 9. Trustees' Reports, Discussion, and Action — None. 10.Adjournment— Meeting adjourned at 5:07pm. ........... 11.Next Meeting- Monday, June 10, 2024, at 4:00pm. Re, ectfully submitted by: Approved by: iera Feketa, Plan Administrator 43aTid- Blair, Chairman Date Approved by the Pension Board: 6/10/24