12-13-2010 Police Pension Board of Trustees
Minutes - Quarterly Meeting
December 13, 2010
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CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD OF TRUSTEES QUARTERLY MEETING
MINUTES
Monday, December 13, 2010
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater Police Officers' Pension Board held its quarterly meeting on Monday, December 13,
2010 in the City Hall Conference Room at the City of Edgewater, Florida.
Members Present: Ferd Heeb
Gary Conroy
Lawrence Leaf
Vincent McCauley
Dan Blazi
Members Absent: None
Plan Attorney: H. Lee Dehner
Plan Administrator: Sheila Hutcheson
Consultants: Jack Evatt, The Bogdahn Group
City Staff: Donna Looney, Personnel Director
Tracey Barlow, City Manager
Chairman Blazi called the meeting to order at 1:32 p.m. The Administrator called roll and there was a
quorum with all members present.
APPROVAL OF MINUTES - September 13, 2010 Quarterly Meeting and October 27, 2010 Joint
Special Meeting
Member Heeb made a motion to approve the minutes of the September 13, 2010 Quarterly Meeting
and October 27, 2010 Joint Special Meeting; Member Conroy seconded the motion, which passed
unanimously on a roll call vote.
NEW BUSINESS
1. Discussion: Investment Questionnaire completed for Principal in 2005
2. Discussion: frequency of attendance /reports by Principal; investment strategy for
the benefit index funds (Note: these items were to be discussed with Principal, but
they advised they are unable to attend)
Attorney Dehner suggested that all items, including the most recent correspondence from Principal
received on December 13, 2010, related to Principal be deferred to a joint special meeting (with the
General Employees' Board) in early January with Milberg and all the consultants. The Plan
Administrator will schedule the meeting and will send the relevant documents and correspondence.
The Board agreed.
OLD BUSINESS - None.
Police Pension Board of Trustees
Minutes - Quarterly Meeting
December 13, 2010
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REPORTS (ATTORNEY /CONSULTANTS)
The Bogdahn Group, Performance Consultant - Quarterly report - September 30, 2010
Jack Evatt opened with an overview of the past market and the volatility earlier in the year, noting
improvements in the latter months of the year. This September had the best returns of any September
in the past seven to eight years. He then discussed the performance for the quarter: 7.73 %, noting that
the fund assets were $7,394,260 as of September 30, 2010, compared to $6,732,841 as of June 30,
2010. The fiscal year return was 10.87 %. There was some discussion by the Board members with Mr.
Evatt regarding Principal's manager selection process and allocation decisions. Mr. Evatt concluded
with a discussion of the compliance checklist, noting that the last year's returns exceeded the plan's
7.5% actuarial assumption.
H. Lee Dehner, Plan Attorney
The Attorney asked if the plan is PFIA (scrutinized companies' statutory requirement) compliant; Mr.
Evatt said the letter has been sent to Principal but Principal has not responded. The next item that was
on the agenda was consideration of a retainer agreement with Milberg. This item will be discussed at
a joint special meeting in January, 2011. Next, Mr. Definer said there has been no change on the
HELPS -2 bill which has been previously discussed; he will keep the Board posted on any progress. At
the next quarterly meeting, he will discuss the upcoming legislative session, at which it is expected
bills from last year and additional ones will be considered. Member Heeb asked the Attorney about
the 1999 limitations on the usage by the City of the State monies and the amount for additional
benefits. The Attorney said this has come before the legislature in the past and will come up again,
along with many other measures. Member Heeb asked the Board to authorize Attorney Dehner to
provide a synopsis of the proposed bills to the Board; the Board agreed.
Sheila Hutcheson, Plan Administrator
• FPPTA renewal for 2011 will be processed at a cost of $600 for the Board's
membership.
• FPPTA Trustees' School is January 30 - February 2, 2011 (St Augustine).
• Notice from Principal of termination of Service Agreement effective February 4,
2011. Attorney Dehner recommended that a joint special meeting be held with the
General Employees' Board and all consultants in January, 2011 to discuss this issue
and the retainer agreement with Milberg.
• 2011 meeting dates are March 14, June 13, September 19, and December 12 (all
meetings begin at 1:30 p.m.).
• Heart Act amendment from Principal was received (for approval/execution by
September 30, 2013). No action will be taken at this time.
• Authorization for Foster & Foster to release information from the 2010 Valuation to
the City that will be needed in advance of the presentation of the Valuation at an
upcoming quarterly meeting. The Board agreed.
• Finance Director John McKinney advised that the City's auditors are conducting an
audit of the pension plans and the Administrator has forwarded the requested
information to the auditor. The cost will be $2,200 for each Board; Attorney Dehner
told Mr. McKinney that the Board will need an engagement letter between the
accounting firm and the Board. Mr. McKinney will contact the auditor to send the
proposed agreement to the Administrator for submittal to the Board for its
consideration at the January, 2011 special meeting. City Manager Barlow said he will
Police Pension Board of Trustees
Minutes - Quarterly Meeting
December 13, 2010
Page 3 of 3
check on this as he thought this initiative was under the City's umbrella and would be paid
by the City.
PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS and DEPOSITS
• DISBURSEMENTS
1. Christiansen & Dehner, professional legal fees - $1,210.28, $1,410.10
2. Sheila Hutcheson, plan administration fees - $3,300.00 ($1,100 /month);
postage /mileage expense - $21.05
3. The Bogdahn Group, performance consultant fees, 3r quarter, 2010 - $3625.00
4. American Express (credit card statement) - $800.00, $2,566.77
5. Kristin Kingston, refund of non - vested member contribution - $9,668.64
6. Nicholas Vincenzi, refund of non - vested member contribution - $7,524.28
7. Jeff Leuenberger, refund of member contribution (terminated, vested member) -
$1,097.57 (with reduced future retirement)
8. Foster & Foster, actuarial services - $2,055.00
• DEPOSITS
2009 Premium Tax Distribution - $125,155.52
Member Conroy made a motion to approve the processed disbursements /return of contributions and
deposits; Member Leaf seconded the motion, which passed unanimously, upon a roll call vote.
STAFF REPORTS, DISCUSSION, and ACTION/TRUSTEES' REPORTS, DISCUSSION and
ACTION; REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT - None.
ADJOURNMENT
The meeting was adjourned at 2:40 p. m.
Respectfully Submitted: Approved:
(6,
Sheila Hutcheson Dan B •
Plan Administrator Chairman