02-18-1998
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Edgewater Firefighters' Pension Fund
Regular Meeting
VVednesday, February 18, 1998
6:30 p.m.
Call to Order: The Regular Meeting of the Firefighters Pension Board was called to
order Wednesday, February 18, 1998 by Chairman Vola at 6:30 p.m. in the Fire
Department Training Room. Members present were: Chairman Bill Vola, Secretary Patricia
Richards, Mr. Fred Munoz, Mr. Gary Butt, and Ms. Jill Landreville. Also present were
Mr. Erick Bell from STI Capital Management, Mr. Ward Foster from Foster & Foster
Actuarial Services, Officer Gary Conroy and Lisa R. Miller, Recording Secretary.
Minutes: The Minutes from the November 19, 1997 Regular Meeting were submitted for
approval. Mr. Butt moved to approve the minutes as submitted. Mr. Munoz seconded.
Motion CARRIED 5 to O.
Presentation: Mr. Erick Bell from STI Capital Management revisited information from
his last presentation. He noted STI would charge 75 basis points and the fees would be
billed quarterly in arrears. He added that funds up to $10 million in assets were charged a
minimum fee of $3,000 and 75 basis points. The $3,000 fee would be waived and the fund
would only be charged 75 basis points. Mr. Bell stated there were two differences between
common trust funds and a mutual fund: 1) there are no fees in common trust funds so that's
where the charge of 75 basis points straight fee comes in, mutual funds have more fees
associated with them. 2) common trust funds are priced twice a month and mutual funds
are priced every day. He added our Investment Policies and Objectives and Ordinances
allowed the fund to invest in common stock and fixed income but it does not state anything
about pooled type investments like mutual funds or common trust funds. He presented an
addendum to the investment and objectives that would allow them to invest in common
trust funds and buy shares in common trust funds. There was discussion regarding
signing the agreement with STI, the listing of authorized signatures for the Board, and that
Attorney Sugarman had reviewed the contract and made appropriate changes for the Board.
Ms. Richards moved to approve the investment management agreement with STI Capital
Management. Mr. Butt seconded. Motion CARRIED 5 to O. There was discussion
regarding the amendment to the investment policy and objectives of the fund. Mr. Munoz
moved to approve the amendment to the investment policy and objectives. Ms. Landreville
seconded. Motion CARRIED 5 to O. There was a brief recess for the signing of documents
at 6:45 p.m. Meeting resumed at 6:55 p.m.
Actuarial Presentation: The actuarial report for 1997 was presented to the Board by
Mr. Ward Foster, from Foster & Foster, Inc. It was noted that for each active member of
the plan a statement was provided for their anticipated retirement based on the current
information available. Mr. Foster discussed the problems the Board had been having with
the Division of Retirement and meeting their requirements. He added the 1996 Annual
Actuarial Valuation had been redone to meet the State requirement of a lower assumption
rate of 7.5%. There was discussion regarding the GASB 25 disclosure items and Mr.
Foster noted they were in the 1997 actuarial valuation paperwork. It was noted the fund
had grown from $161,000 to $462,000 in four years. There was discussion regarding the
bill for Foster & Foster, Inc. It was noted they had been charging $1,500 for the actuarial
valuations, but this bill included dealing with the State requirements and redoing the 1996
actuarial valuation at the lower assumption rate. There was discussion regarding the
upcoming fee schedule for Foster & Foster, Inc. to do annual actuarial valuations for the
next three years. Mr. Foster stated they would do it for $1,500 for the next three years and
he would get a proposal to the Board for their consideration. Mr. Munoz moved to pay the
bill submitted by Foster & Foster, Inc. in the amount of $1,500 for the 1997 actuarial
valuation and $500 for the 1996 actuarial valuation for a total amount of $2,000. Ms.
Landreville seconded. Motion CARRIED 5 to O. Mr. Foster stated he would send the 1997
actuarial valuation on to the State. The Board thanked Mr. Foster and he left at this time.
Old Business: There was discussion regarding ordinance changes that were required by
the State Division of Retirement that addressed the ADA requirements. It was noted the
letter from Attorney Sugarman stated the ordinance amendments should be reviewed by the
Board, then sent to Council for a first reading, then sent for an actuarial impact statement,
copies of the impact statement and the ordinance changes should be sent to the Division of
Retirement in Tallahassee. Once it is approved by the State it returns for final adoption by
Council. The final ordinance amendment should again be sent to the Division of Retirement
and Attorney Sugarman. Ms. Landreville moved to adopt the Ordinance changes submitted
by Attorney Sugarman to comply with State requirements and forward them to City
Council. Mr. Munoz seconded. Motion CARRIED 5 to O.
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Firefighter Pension Fund
Regular Meeting 02/18/98
Page 2
There was discussion with Mr. Bell regarding the transfer of funds and the way to pay the
Board's bills through STI. Mr. Bell stated it would be easiest for the Board to instruct
Smith Barney to liquidate the funds and do a wire transfer to an account that would be set
up at STI. There was discussion regarding the fees that would be charged to sell all of the
assets. There was discussion regarding what was in the portfolio and that a copy would be
given to Mr. Bell. There was a discussion regarding the possibility of transferring the
investments to STI and letting them liquidate them. It was noted Mr. Bell could not promise
this would be the case. There was a brief recess at 7:30 p.m. Meeting resumed at 7:45 p.m.
Mr. Bell left at this time.
There was discussion regarding authorizing the actuarial impact study to be done on the
ordinance amendments by Foster & Foster, Inc. Ms. Richards move to authorize an
actuarial impact study be done by Foster & Foster after the City approves the ordinance
amendments at the first reading. Mr. Butt seconded. Motion CARRIED 5 to O.
New Business:
There was discussion regarding Attorney Sugarman's bill and the proposal to go on
retainer. It was noted the old rate was $150 per hour and the new rate if not on retainer will
be $175 per hour. Mr. Munoz noted unless the Board used 37.5 hours of his time it would
not be worth putting him on retainer. Mr. Munoz moved to pay Attorney Sugarman's bill in
the amount of $720.00 for legal fees to be paid in full through 2/12/98. Ms. Richards
seconded. Motion CARRIED 5 to O.
There was discussion regarding ICC Capital Marketing Associate's bill. It was noted the
bill went through the end of March 1998, so hopefully this should be the last bill. Mr.
Munoz moved to pay the bills in the amounts of $185.53 and $412.34 for financial
management fees. Ms. Landreville seconded. Motion CARRIED 5 to O.
There was discussion regarding the 1997 Annual Report that was completed by Mr.
Munoz. Ms. Richards moved to approve the 1997 Annual Report for the State. Ms.
Landreville seconded. Motion CARRIED 5 to O.
There being no more business to come before the Board at this time, Mr. Butt moved to
adjourn. Mr. Munoz seconded. Meeting adjourned at 8:00 p.m.
Minutes respectfully submitted.
Lisa R. Miller
Recording Secretary.
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