06-13-2011 General Employees' Pension Board of Trustees
Minutes - Regular Meeting
June 13, 2011
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CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
Regular Meeting
MINUTES
Monday, June 13, 2011
CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM
The Edgewater General Employees' Pension Board held its quarterly (regular) meeting on Monday, June
13, 2011 in the City Hall Council Chamber at the City of Edgewater, Florida.
Members Present: Brenda Dewees
Bobby Laramore
Tim Sopko
Tyna Hilton
Gigi Bennington
John McKinney
Members Absent: John Brackin
Plan Attorney: H. Lee Dehner
Board Administrator: Sheila Hutcheson
Consultant: Jack Evatt, The Bogdahn Group
City Staff: Tracey Barlow, City Manager
Donna Looney, Personnel Director
Chairman Bennington called the meeting to order at 11:05 a.m.; there was a quorum, with six members
present.
APPROVAL OF MINUTES - March 14, 2011 Quarterly Meeting and March 14, 2011 Joint Special
Meeting
Member Laramore made a motion to approve the minutes of the March 14, 2011 quarterly meeting and
March 14, 2011 joint special meeting; Member Hilton seconded the motion, which passed unanimously.
NEW BUSINESS
Draft Amendments to the Education section of the Personnel Policy (City Manager)
City Manager Tracey Barlow outlined the policy provisions which resulted from a recent audit. The
policy includes provisions that the Board would use the City's process, procedures, and forms.
The Board's consensus was to continue this item until the next meeting but no later than first week in
August after the Board and Attorney Dehner review it. At that time, the Board will consider its position
on the policy and notify the City Manager prior to action by the City Council, which needs to adopt the
policy in order to address an audit item.
OLD BUSINESS - None
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
June 13, 2011
Page 2 of 3
REPORTS (ATTORNEY /CONSULTANTS)
The Bogdahn Group, Performance Consultant
Quarterly Report - March 31, 2011
Jack Evatt opened by discussing both the first quarter of 2011 and the markets since the end of March.
Equity markets have remained strong and relatively stable despite various conditions. The fixed income
markets have done fairly well too. The month of June has shown a downturn. The fund's assets were
$12,908,620 as of March 31, 2011, compared to $12,677,312 as of December 31, 2010. The return for the
quarter was 3.41% (net and gross, since it cannot be determined what Principal's fees are), outperforming
the index. The fiscal year -to -date returns are 9.14 %. He reviewed the inflows /outflows of the plan. Mr.
Evatt discussed the various investment options in the plan, noting that the large cap value and large cap
growth have been the worst performers. He said that since it looks like the termination from Principal is
going to occur soon, he may 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 have signed the
contract), compensation will be fixed salary + 300 hours of overtime pay each year. 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.
The Attorney concluded his report with a reminder that annual Financial Disclosure Forms are due by
July 1, 2011.
Sheila Hutcheson, Plan Administrator
Fee schedule for special meetings ($400.00)
The Administrator advised that this fee schedule is necessary due to the frequency of special meetings in
General Employees' Pension Board of Trustees
Minutes - Regular Meeting
June 13, 2011
Page 3 of 3
the past year. The Police Board has already approved the fee, which will be split between the two plans
for joint meetings (like today's joint meeting).
Member Hilton made a motion to authorize the contract amendment for a $400 fee for special meetings
($200 for joint special meetings); Member Dewees seconded the motion, which passed unanimously.
Attorney Dehner had brought the contract amendment for execution.
PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS /DEPOSITS
DISBURSEMENTS
1. Sheila Hutcheson, plan administration fees - $3,300.00 ($1100 /month);
postage /mileage expense - $22.22
2. Christiansen & Dehner, professional legal fees, $1,619.98, $65.00
3. The Bogdahn Group, performance consultant fees, 1S quarter, 2011 - $3,625.00
4. Foster & Foster, actuarial services - $17,660.00
DEPOSITS
None
Member McKinney made a motion to approve the processed disbursements /return of contributions and
deposits; Member Sopko seconded the motion, which passed unanimously.
TRUSTEES', STAFF, EMPLOYEES', and PUBLIC REPORTS, DISCUSSION and ACTION -
None
ADJOURNMENT
There was no further business and the Chairman adjourned the meeting at 12:04 p.m.
Respectfully Submitted: Approved:
jtkik Pep./t/VI•kel
Sheila Hutcheson, Plan Administrator G' 1� 9