06-13-2011 Police Pension Board of Trustees
Minutes - Quarterly Meeting
June 13, 2011
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CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD OF TRUSTEES QUARTERLY MEETING
MINUTES
Monday, June 13, 2011
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater Police Officers' Pension Board held its quarterly meeting on Monday, June 13, 2011
in the City Hall Conference Room at the City of Edgewater, Florida.
Members Present: Ferd Heeb
Gary Conroy
Lawrence Leaf
Dan Blazi
Members Absent: Vincent McCauley
Plan Attorney: H. Lee Dehner
Plan Administrator: Sheila Hutcheson
Consultant: Jack Evatt, The Bogdahn Group
City Staff: Julie Christine, Personnel Department
Tracey Barlow, City Manager
Chairman Blazi called the meeting to order at 1:34 p.m. There was a quorum with four members
present.
APPROVAL OF MINUTES - Quarterly Meeting - March 14, 2011; Special Meeting - March 14,
2011; Special Meeting - March 28, 2011
Member Heeb made a motion to approve the minutes of the quarterly meeting on March 14, 2011, the
special meeting on March 14, 2011, and the special meeting on March 28, 2011; Member Conroy
seconded the motion, which passed unanimously on a roll call vote.
NEW BUSINESS
Draft Amendments to the Education section of the Personnel Policy (City Manager)
City Manager Tracey Barlow had requested that the Board review this draft policy which is in
response to an audit issue. He will submit it to the City Council in August and would like all the
Pension Boards' input prior to that time. Attorney Dehner said the Board can adopt its own policy or
use the City's policy. The General Board had continued this to the next meeting (no later than the first
week of August). The Board concurred. It was noted that the proposed policy still requires
authorization by the Board for travel/training, but the City would pay the expenses. The Board asked
that Attorney Definer attend (either in person or by telephone) the meeting at which the policy is
considered. Chairman Blazi asked about other Plans' policies and requested that the Administrator
send other plans' travel/training provisions. Attorney Definer said he would send other Boards'
policies too.
Consideration of budget for Pension Board (requested by Member Heeb)
The Administrator had prepared a summary of the Board's administrative expenses for FY09 /10 (from
the quarterly agendas). Member Heeb suggested that the Board address guidelines for the Board's
Police Pension Board of Trustees
Minutes - Quarterly Meeting
June 13, 2011
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expenditures going forward, beginning with FY1 1/12. Chairman Blazi said most of the information is
known to the Board in terms of contractual fees for the consultants; the unknown is other
expenditures. Member Conroy said this is a good idea. Member Heeb and the Administrator will
work on this and bring it to the Board at the next meeting for the Board's consideration.
Discussion: Issues related to Board expenditures (requested by Chairman Blazi)
The Chairman said this item is related to Member Heeb's item above. The main issue, in his view,
relates to the Trustees' pursuit of the certification program with FPPTA; this will not be an ongoing
expense. Going forward, the Board should pre- approve each Trustee's attendance at
training/conferences. Member Heeb said the Board should actually budget an amount per trustee per
year for travel and training. Chairman Blazi suggested $5000 /year to be budgeted for this item. The
Board should monitor the budget in relation to actual expenditures and the Plan Administrator will
advise at each meeting of upcoming events for training approvals. Chairman Blazi asked about
attending the FPPTA conference this month. Two members agreed that the Chairman should attend,
and one member said the Board has expended enough funds this year -to -date (about $7,500) on
travel/training. Chairman Blazi said he will not attend unless it is required in order to maintain his
FPPTA certification.
The Board recessed for a break at 2:26 p.m. and reconvened at 2:31 p.m.
OLD BUSINESS - None.
REPORTS (ATTORNEY /CONSULTANTS)
The Bogdahn Group, Performance Consultant - Quarterly report - March 31, 2011
Jack Evatt opened by stating that both the equity and fixed income markets did well despite world
conditions. June has not been a good month thus far. He then discussed the performance for the
quarter: 3.64 %, and 8.48% for the fiscal year -to -date. The fund's assets were $7,809,766 as of March
31, 2011 compared to $7,670,153 as of December 31, 2010. He reviewed the inflows /outflows of the
Plan. He discussed the various investment options in the plan, noting that the large cap value and
large cap growth have been the worst performers. Some of the portfolio had done very well. He said
that since it looks like termination from Principal is going to occur soon, he does not recommend any
manager /allocation changes at this time. The Board and Attorney agreed. He said he had discussed
with Attorney Polaszek the way the real estate and other investments would be refunded upon
termination: by cash or "in- kind." The Attorney will check on this. The portfolio is in better shape
than in the past, and he will continue to review the process for changes in case the Principal separation
is delayed.
Mr. Evatt concluded with a recommendation that the Board review the Investment Policy Statement
(IPS), which was adopted in 2009, at the next meeting. The Administrator will distribute the IPS with
the next quarterly meeting agenda.
H. Lee Dehner, Plan Attorney
Legislative update
Attorney Dehner opened his report with an update on SB 1128 which passed and has now been
submitted to the Governor for signature (which is expected). The bill defines compensation for
benefit purposes, providing that after July 1, 2011 or the next bargaining agreement (when all parties
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Minutes - Quarterly Meeting
June 13, 2011
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have signed the contract), compensation will be fixed salary + 300 hours of overtime pay each year.
The 300 hours of overtime /year can be tracked by the agency deciding the year basis to use and it was
recommended that the City use the fiscal year since all pension wage reporting is on a fiscal year basis.
Other payments, such as unused leave, bonuses, etc., will no longer count as pensionable. Unused
leave on the books as of July 1 or the date the labor contract is signed will count as the maximum
amount that can be considered pensionable at the time of retirement. It can be calculated at the rate of
pay in effect at time of retirement and the pension contribution by the member and the City will be
taken only on that "grandfathered" amount. Another provision is that a task force will be created to
review disability presumptions and report back on recommended changes in the future. There will
also be a report on the financial strength of State plans and certain additional reporting requirements
for valuations. There will be no change in the use of State monies; however, the member contribution
can be increased by a vote of the Plan's membership without a corresponding increase in benefits.
The Attorney concluded his report with a reminder that annual Financial Disclosure Forms are due by
July 1, 2011.
Sheila Hutcheson, Plan Administrator
Confirmation of amendment to Plan Administrator's contract ($400 /special meeting)
The Board's consensus was to confirm its prior action in approving the contract amendment.
PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS and DEPOSITS
• DISBURSEMENTS
1. Christiansen & Dehner, professional legal fees - $3,453.84, $357.50
2. Sheila Hutcheson, plan administration fees, $3,300.00; postage /mileage expense -
$43.49
3. The Bogdahn Group, performance consultant fees, 1s quarter, 2011 - $3,625.00
4. American Express (credit card statement) - $31.00
5. Foster & Foster, actuarial services - $15,473.00, $3,023.00
6. Cynthia Weber, refund of non - vested member contributions - $8,459.50
7. Luis Rodriguez, refund of non - vested member contributions - $661.35
8. Dan Blazi, commencement of DROP as of June 1, 2011 (joint and 100% survivor
option)
9. Gary Conroy, commencement of DROP as of June 1, 2011 (joint and 100%
survivor option)
10. Rob Hazelwood, commencement of DROP as of June 1, 2011 (joint and 100%
survivor option)
11. Randy Mumpower, commencement of DROP as of June 1, 2011 (joint and 100%
survivor option)
DEPOSITS
1. Robin Bell, re- payment of member contribution + interest for prior Edgewater
Police service - $4,098.24
2. Randy Mumpower, payment for buy -back calculation - $100.00
3. Dan Blazi, payment for buy -back calculation - $100.00
Member Heeb 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.
Police Pension Board of Trustees
Minutes - Quarterly Meeting
June 13, 2011
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STAFF REPORTS, DISCUSSION, and ACTION/TRUSTEES' REPORTS, DISCUSSION and
ACTION; REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT - None
ADJOURNMENT
The Chairman adjourned the meeting at 3:12 p.m.
Respectfully Submitted: Approved:
Sheila Hutcheson
Plan Administrator airma