07-19-1995
E~ewater Firefighters' Pension FuIM'
Regular Meeting
Fire Administration Office 1605 S. Ridgewood
Wednesday, July 19, 1995
6:30 PM
Call to Order: The Regular Meeting of the Edgewater Firefighters'
Pension Board was called to Order in the Fire Administration office on
July 19, 1995 at 6:30 PM.
Roll Call: Members present were: Mr. William Vola, Mr. Fred Munoz,
Ms. Jill Landreville, Secretary Patricia Richards and Chairman Nancy
Williams. Also present were Steve Burkhalter, Charlie Mulfinger from
Smith Barney and Recording Secretary Lisa R. Miller.
Minutes: The Minutes from the May 4, 1995 Regular Meeting were
submitted for approval. Mr. V ola moved to approve the minutes as
submitted. Ms. Landreville seconded. Motion CARRIED 5-0.
Investment Report: Chairman Williams introduced Mr. Burkhalter and
Mr. Mulfinger from Smith Barney. Mr. Burkhalter gave the Board a
general review of where it stood at that time. He added there was $226,000
approximately in the fund. He discussed options for diversifying the
Board's portfolio. Mr. Burkhalter introduced Mr. Mulfinger and stated he
was from Tampa and specializes in pension consulting. There was
discussion regarding investments and fiduciary responsibility. Mr.
Burkhalter stated they could limit somewhat the personal liability by
passing it on to a portfolio manager who will make the day to day
investment decisions for them. He added that since they had reached the
$200,000 mark to bring in an independent third party to manage a
portfolio of bonds and add some stocks to the portfolio and they would
manage it on a day to day basis within the guidelines that the Board gives
them. Mr. Burkhalter and Mr. Mulfinger would do the monitoring and the
administrative part; choosing who handles the portfolio for them, reporting
to the Board how they are doing and suggesting any changes that might
need to be made. Mr. Mulfinger stated they would be a consultant instead
of the Board's investment advisor to make sure the Board is getting the best
returns for their investments for the risks that they want to take. He added
they would do a presentation of the history of capital markets and then help
to set up some guidelines and develop a policy statement. Mr. Mulfinger
stated Chairman Williams had asked him to check with several money
managers to see what their fee would be. He stated he found one for 50
basis points which is 1/2 of 1 % and is a very competitive price. He added
this would keep the cost low and the funds would stay with Smith Barney as
custodian, the money manager would just invest it. The money manager fee
would be over $1,000 and Smith Barney's fee would be $2,500. There was
discussion regarding investments and money managers. Mr. Mulfinger
stated the company that was quoting that price was in ICC in Orlando. Mr.
Munoz asked about the legal aspects of the contract. He asked if the
contract needed to have the Board Attorney go over it. Mr. Mulfinger
stated that Mr. Sugarman had already blessed this contract. Mr. Mulfinger
stated he had no problem with showing him the City of Deland's contract
for their review. Mr. Burkhalter stated they needed to sign the contract and
to do the presentation of the History of the Capital Markets. He added there
really wasn't any other alternatives for a group like this because of all of
the restrictions. Mr. Munoz moved to pursue looking into Smith Barney as
a money consultant for which was quoted a fee of $2,500 annually. Mr.
V ola seconded.
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Edgewater Firefight~' Pension Fund
Regular Meeting
7/19/95
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Mr. Burkhalter stated it would be better not to invest at this time if they
were planning on entering into the agreement. Mr. Vola stated quasi-
governmental boards tend to review multiple bid or presentations, which it
sounds like Mr. Mulfinger already has done some, that the board should
review things so the board feels it has done its duties in getting the best
deal. There was discussion regarding the motion. Mr. Mulfinger stated he
would get a list of bids from four different companies to submit to the
board for their files. Motion CARRIED 5-0. Mr. Vola stated if it was OK
with the Board he would run the contract by the City Attorney and get a
copy of the one from Deland.
Old Business: Mr. Burkhalter asked if there were any other questions for
him. Mr. Vola asked him about the Foster & Foster valuation. There was
discussion regarding the actuarial valuation. The Board thanked Mr.
Burkhalter and Mr. Mulfinger for coming and they left at this time. Mr.
Munoz moved to accept the actuarial valuation from Foster and Foster and
send copies to the State, Smith Barney, Sugarman and the City Attorney.
Ms. Richards seconded. Motion CARRIED 5-0.
The next order of business was the Summary Plan. The question was
brought up that it was approved with the Exhibit B updated to reflect the
date of September 1, 1994 and the Board had not received the update as of
yet. It was noted that it should go back to Foster and Foster for an updated
Exhibit B before it would be delivered to the membership.
The next order of business was the Ordinance to make the plan a Local
Option Plan. It was noted the City Attorney was holding it until they
received the approved actuarial valuation and summary plan from the
Board. There was discussion regarding vesting, Chapter 175, and
contributions that were withdrawn from the plan. There was a recess @
7:45 PM. Meeting resumed at 7:50 PM. There was more discussion
regarding Chapter 175 and Local Option Plans.
New Business: The next item of business was the FPPTA membership
dues. Mr. Vola moved to pay the FPPT A membership dues for 1995 in the
amount of $150.00. Mr. Munoz seconded. There was discussion regarding
the benefits of being a member of the organization. Motion CARRIED 5-0.
Chairman Williams gave her report from the seminar she attended in Boca
Raton. There was discussion regarding a change in State Statute 112.181
under presumptive illness that includes coverage for Hepatitis A & B, non-
A, and non-B or C. It was noted a copy should be given to all members.
She submitted her bill for reimbursement. Mr. Vola moved to pay expenses
incurred by Chairman Williams for the FPPT A seminar in Boca Raton in
the amount of $628.40. Secretary Richards seconded. Motion CARRIED 5-
o.
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Edgewater Firefighters' Pension Fund
Regular Meeting
7/19/95
..."",
The next item to come before the Board was a request for the funds
contributed by Larry Carson who had terminated his employment with the
City. He had requested a transfer draft be made to another investment
company. Chairman Williams stated Mr. Carson needed to let them know
where he wanted the money transferred to as they could not have a check
made out to nobody and it needed to be made out For the Benefit Of Larry
Carson with his Social Security Number. There was discussion regarding
the dollar amount he was entitled to and that the amount would come from
the Finance Department. Ms. Landreville moved to grant the request to
release the funds that Mr. Carson has paid into the Pension fund. Secretary
Richards seconded. Motion CARRIED 5-0.
Adjournment: There being no more business to come before the board
Ms. Landreville moved to adjourn. Mr. Vola seconded. Meeting adjourned
at 8:20 PM.
Minutes respectfully submitted by:
Lisa R. Miller
Recording Secretary
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