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12-12-2011 Police Pension Board of Trustees Minutes - Quarterly Meeting December 12, 2011 Page 1 of 4 CITY OF EDGEWATER POLICE OFFICERS' PENSION BOARD OF TRUSTEES QUARTERLY MEETING MINUTES Monday, December 12, 2011 CALL TO ORDER/ ROLL CALL/DETERMINATION OF A QUORUM The Edgewater Police Officers' Pension Board held its quarterly meeting on Monday, December 12, 2011 in the City Hall Conference Room at the City of Edgewater, Florida. Members Present: Gary Conroy Vincent McCauley Lawrence Leaf Members Absent: Ferd Heeb Chad Anderson Plan Attorney: H. Lee Dehner Plan Administrator: Sheila Hutcheson Consultant: Jack Evatt, The Bogdahn Group City Staff: Donna Looney, Personnel Director Tracey Barlow, City Manager Chairman Conroy called the meeting to order at 1:30 p.m. There was a quorum with three members present. APPROVAL OF MINUTES - Quarterly Meeting - September 19, 2011; Special Meeting - September 19, 2011 Member McCauley made a motion to approve the minutes of the September 19, 2011 quarterly and joint special meetings; Member Leaf seconded the motion, which passed unanimously. NEW BUSINESS Authorization for Foster & Foster to provide the City the Valuation, preliminary funding requirements, and related information in advance of presentation of the 2011 Valuation at the March 19, 2012 meeting The Board concurred. OLD BUSINESS Discussion/Action: Draft Amendments to the Education section of the Personnel Policy Manual; presentation of proposed policy Consideration of budget for administrative expenses for FYI 1 / 12 The Administrator advised the Board that Member Heeb had requested that the Board not take action on these two items until the next meeting, when he will be in attendance. The Board concurred. Police Pension Board of Trustees Minutes - Quarterly Meeting December 12, 2011 Page 2 of 4 REPORTS (ATTORNEY /CONSULTANTS) The Bogdahn Group, Performance Consultant - Quarterly report - September 30, 2011 Jack Evatt opened by discussing the market environment for the quarter, as outlined in the report he distributed to the Board. He then discussed the performance for the quarter: negative 8.95 %, and 0.08% for the fiscal year, both of which under - performed the index. The fund's assets were $7,299,113 on September 30, 2011, compared to $7,908,559 as of June 30, 2011. The market has since rallied and had significant gains since September 30, 2011. As of October 31, 2011, the fund's assets were $7,755,392. Mr. Evatt commented on the asset allocation not being appropriate over the long term to meet the Plan's 8% assumed return. Negative campaigning for the upcoming Presidential election has an impact on the market as well. The markets do not respond well to the uncertainty that accompanies an election period. At the next meeting, Mr.Evatt said he will discuss an investment policy for Principal since the plan may remain with Principal for a while. Mr. Evatt will bring the forms required by Principal in this regard for execution by the Board. The investment policy will be addressed again upon separation from Principal. The report concluded with a review of the compliance checklist. The compliance checklist confirms that the Plan is in compliance with the statutes governing investments in scrutinized companies. H. Lee Dehner, Plan Attorney Legislative update The Attorney reported on the upcoming legislative session, which will start in January, 2012, stating that some bills (HB365 and SB 910) have already been pre -filed (by Representative Costello again for HB365). Among the proposals is the worst one for plans: a change in the language about the usage of State monies; specifically, it would allow an agency to receive State monies even if it is a defined contribution plan or if the agency joins FRS, etc. There are also some reductions or modifications proposed to the presumptions for line of duty coverage. Additionally, there is a proposal that would change the minimum benefits level. If passed, the bill would require the Board to prepare a budget, but the budget would not have to be approved by the City. There could be more bills filed. Senator Jeremy Ring (from last year's bills) became unhappy with the Florida League and has said no pension legislation will pass this year. The primary concern of the legislature is re- districting. The legislative session will begin in January due to re- districting. Status Report - Issues with Principal (Milberg LLP and other consultants) Attorney Dehner summarized relevant information for the Board regarding the issues with Principal and the status of settlement negotiations in this regard. He will keep the Board apprised of the status of negotiations. Sheila Hutcheson, Plan Administrator Ms. Hutcheson reported the following items: Fee schedule - $1,500 /month effective with payment on January 1, 2012 Police Pension Board of Trustees Minutes - Quarterly Meeting December 12, 2011 Page 3 of 4 Member Leaf made a motion to approve the Administrator's fee schedule and to authorize the Attorney to prepare the contract amendment for execution by the Chairman /Secretary; Member Conroy seconded the motion which passed unanimously. American Express credit card has been cancelled; discussion of travel payments Member Leaf will attend the FPPTA School in February and will contact the City Finance Director for payment of expenses for the FPPTA School. Member McCauley would prefer to attend a conference of shorter duration. Attorney Dehner and The Bogdahn Group periodically (usually every year) conduct mini - conferences that are concluded in one day. Member McCauley said he may wait for the next mini- conference. Election to fill unexpired term of Trustee Gary Conroy (January 6 - March 17, 2012) The election will be coordinated by Member Conroy. The Attorney said the election notice can include both the unexpired portion of Member Conroy's term and a new two -year term until March 17, 2014, as there will not be another meeting before March 17, 2012. Ms. Hutcheson also reported that Fifth Member Larry Leafs term ends on March 17, 2012. Since there are not enough Trustees present today to reappoint him at this meeting, the Attorney said that he can attend the March 19, 2012 meeting as a "hold- over" trustee. He can be reappointed at the March 19, 2012 meeting, when there are sufficient members present. Quarterly meeting dates for 2012 (Mondays at 1:30 p.m.): March 19, 2012 June 11, 2012 September 17, 2012 December 10, 2012 The Board concurred with the meeting dates for 2012. FPPTA membership will be renewed for 2012 - $600.00 Ms. Hutcheson also reported that she had been notified by former Plan Member Tom Kaye and his attorney that Mr. Kaye may be submitting a claim for disability benefits to the Board. The Board had already adopted Rule 14 governing claims procedures, and this procedure will be used in the event there is a claim. PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS and DEPOSITS • DISBURSEMENTS 1. Christiansen & Dehner, professional legal fees - $338.00; $1,859.90; $407.44 2. Sheila Hutcheson, plan administration fees, $3,300.00; special meetings fee (Board's share, 8/1 and 9/19/11) - $400.00; mileage expense - $22.20 3. The Bogdahn Group, performance consultant fees, 3` quarter, 2011 - $3,625.00 4. PRIA, pension fiduciary insurance premium for FYI 1 /12 policy - $2,418.37 5. Diana Floyd, commencement of retirement as of Dec. 1, 2011 (joint and 100% survivor option) and distribution of DROP account 6. Gary Conroy, commencement of retirement as of Feb. 1, 2012 (joint and 100% survivor option) and distribution of DROP account • DEPOSITS None Police Pension Board of Trustees Minutes - Quarterly Meeting December 12, 2011 Page 4 of 4 Member Leaf made a motion to approve the processed disbursements /return of contributions and deposits; Member McCauley seconded the motion, which passed unanimously, upon a roll call vote. Election of Officers This item will be deferred to the next meeting. STAFF REPORTS, DISCUSSION, and ACTION/TRUSTEES' REPORTS, DISCUSSION and ACTION; REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT - None. ADJOURNMENT The Chairman adjourned the meeting at 2:20 p.m. Respectfully Submitted: Approved: _ A. Sheila Hutcheson Chairman Plan Administrator