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06-17-2013 Police Pension Board of Trustees Minutes-Quarterly Meeting June 17,2013 Page 1 of 4 CITY OF EDGEWATER POLICE OFFICERS' PENSION BOARD OF TRUSTEES QUARTERLY MEETING MINUTES Monday,June 17,2013 CALL TO ORDER/ROLL CALL/DETERMINATION OF A QUORUM The Edgewater Police Officers' Pension Board held its quarterly meeting on Monday, June 17, 2013 in the City Hall Council Chambers at the City of Edgewater,Florida. Members Present: David Arcieri Ferd Heeb Lawrence Leaf Members Absent: James Morey John Tarr Plan Attorney: H. Lee Delmer Consultant: Jack Evatt, The Bogdahn Group Doug Lozen, Foster&Foster City Staff: Donna Looney, Personnel Director Tracey Barlow, City Manager Member Arcieri called the meeting to order at 1:30 p.m.; there was a quorum with three members present. APPROVAL OF MINUTES -Quarterly Meeting -March 18, 2013 Member Heeb made a motion to approve the minutes of the March 18, 2013 quarterly meeting; Member Leaf seconded the motion, which passed unanimously. NEW BUSINESS - Confirmation of minutes - Special Joint Meeting -January 7, 2013 and January 15, 2013 Member Heeb made a motion to confirm the minutes of the January 7, 2013 and January 15, 2013 Special JointMeeting;Member Leaf seconded the motion, which passed unanimously. Review and discuss RFP's for Board Administrator- Member Heeb opened by asking City staff if the City was going to respond to the RFP. Donna Looney, Personnel Director, stated the City has chosen not to respond to the RFP due to the fact of what was submitted so the City is going to let the board decide on an outside administrator. Member Heeb added he has gone through the responses for the RFP and he is still inclined for the board to have an individual. However, he is impressed by the responses from Pension Resource Center, Susy Pita, and Julie Enright. City Manager, Tracey Barlow mentioned that the reason the City did not respond to the RFP is because Foster and Foster would provide the duties of a Pension Plan Administrator as part of their actuary fees (no additional fee). He could not justify tax dollars to compete against that. Member Heeb pointed out the only problem he has is having the actuary and administrator services separate. Member Leaf stated we should go with someone close and also agreed with member Heeb on having a separate entity. City Manager, Tracey Barlow, added during these extreme economical times Police Pension Board of Trustees Minutes-Quarterly Meeting June 17,2013 Page 2 of 4 the board could do this on a one year term basis or to hire someone additionally above that. Member Arcieri thoughts were leaning towards Foster and Foster for the financial savings, they are already proving a service with no additional charges. Member Heeb said to add Foster and Foster to the interview list and when we do schedule the interviews to have a full board. Member Heeb made a motion to set up interviews with Pension Resource Center, Susy Pita, Julie Enright and Foster and Foster;Member Leaf seconded the motion, which passed unanimously. OLD BUSINESS - Buyback of Military and Police Services Personnel Director, Donna Looney, stated after researching and speaking with Principal Financial Group,they did not have a signed document. However,the City has a signed copy of the ordinance and has gone through with buybacks. Mr. Delmer, Plan Attorney, reviewed the 2006 document and stated it does provide a buyback for up to a combined total of 5 years service between military service or sworn police officer service for another jurisdiction. Doug Lozen,Actuary, stated the charge is $200.00 for the buyback calculation request. Member Heeb suggested we defer the issue until the next schedule meeting on September 16, 2013 and find out from member Tarr his intend. Mr. Delmer recommends when we reinstate this plan,he will restate this provision as well because there are some provisions he would like to see here that are not here. For example,what's the service going to count towards. There are three possibilities,vesting credit,eligibility for retirement and benefit calculations. Most often plans for non-police service for Edgewater would not count the purchase time to vesting it's not a legal issue, it can be done but most do not,the feeling is that you should work here to vest here. Member Heeb asked what the timeframe for restating is. Mr. Delmer stated either last quarter of this year or first quarter of next year. REPORTS (ATTORNEY/CONSULTANTS) The Bogdahn Group,Performance Consultant- Quarterly report—March 31, 2013 Jack Evatt opened by discussing the Investment Performance Review for the 1st quarter, and noted that it was a good quarter to be in Stocks in general. He reported Assets ended the calendar year, December 31, 2012 at $8,279,579 and at the end of March 31, 2013, $6,944,825. Mr. Evatt proposes that we look at candidates to fill an allocation in small and midcap at the next meeting. He will prepare that and bring it to the next quarterly meeting. Member Heeb asked what date would our meeting need to be held to have the quarterly report more current and not more than 30 days old. Mr. Evatt stated he can provide an executive summary along with including the quarterly report earlier than the next quarterly meeting for the board to review. H. Lee Delmer,Plan Attorney Legislative update Senate bill 458 did not pass the house. It was the bill that tried to direct what we could or couldn't do with our state money. It was not a good bill and was good that it did not pass. Senate Bill 534 are imposing on all defined benefit plans in Florida which sets forth additional filing and disclosure requirements and it will add to the administrative expenses to the plan. It passed the house and the Senate. As of right now the bill will be effective July 1St but is still being watched and not decided at this point. Police Pension Board of Trustees Minutes-Quarterly Meeting June 17,2013 Page 3 of 4 Mr. Delmer wanted to remind the board to do their financial disclosures by July 1, 2013 and provide proof of the filing. If a board member steps down from the board, they will need to file a form 1-F Final within 60 days from when you step down. Addendum to Operating Rules &Procedures - Rule 15.1 Extent of Confidentiality Permitted Mr. Delmer stated there was an addendum to the operating rules. A recent update that included "Date of Birth"which has been added as an item that is exempt for Police Officers. Member Heeb made a motion to adopt the Addendum to Operating Rules &Procedures-Rule 15.1 Extent of Confidentiality Permitted;Member Leaf seconded the motion, which passed unanimously by roll call. Mr. Delmer discussed another item under confidentiality that has to do with a form request that the division developed and sent to every Police and Fire Pension in the State asking to be signed by an appropriate City Official and sent back to the division. It is a request from the division that this document be signed by the City and maintained by the division for confidential information what is identified in Statute to be confidential. However,with respect to the City when someone comes in to the City Clerk's department for confidential information it can be denied without violating public record because the Statute is self executing with respect to the City. However with respect to third parties they have to receive this request in order for items to be kept confidential. Mr. Delmer recommends that this form be signed by a City Official and sent to the division. Mr. Delmer stated to check with his office to see if we can obtain this document. Mr. Delmer stated it is a one page document in a memorandum format called Request for Confidentially. Assignment Letter- Outlining continuing of duties Dr. Delmer provided a list of duties for the Pension Fund Administrator and everyone has a copy of it. There is no need to adopt this since the City is going to have a contract with a plan administrator. RATIFICATION of PROCESSED DISBURSEMENTS/RETURN OF CONTRIBUTIONS and DEPOSITS DISBURSEMENTS 1. Christiansen&Delmer,professional legal fees -$2,013.60, $280.80 2. The Bogdahn Group,performance consultant fees, 1St quarter, 2013 -$3,625.00 3. Salem Trust, custodian services,January 17, 2013 -March 31, 2013 - $912.50 4. Dana Investment Advisors,Inc. -$3,763.20 5. Foster&Foster, actuarial services -$2,848.00 6. Chad Anderson, refund of member contribution (terminated, non-vested member) - $8,412.78 7. Joshua Adams, refund of member contribution (terminated, vested member) - $16,086.02 (with entitlement to future early or normal retirement at a correspondingly reduced amount) DEPOSITS- none Member Heeb made a motion to approve the processed disbursements/return of contributions and deposits;Member leaf seconded the motion, which passed unanimously by roll call. Police Pension Board of Trustees Minutes-Quarterly Meeting June 17,2013 Page 4 of 4 STAFF REPORTS,DISCUSSION, and ACTION/TRUSTEES' REPORTS,DISCUSSION and ACTION; REQUESTS FROM THE PUBLIC/EMPLOYEES PRESENT Julie Christine,Board Coordinator Mrs. Christine stated there was a volunteer application to replace Member Heeb's term which ended on 05/21/2013. However, during a recent phone message by the applicant, Kimlee Ruffino, she had to withdraw her application. City Manager, Tracey Barlow, suggested that Member Heeb's term be on a month to month basis and still solicit Volunteer Police Pension applicant's that are qualified for the board. Jonathan McKinney,Finance Director Mr. McKinney opened by discussing during the General Pension board meeting there was an experience study done by our current actuary to save the City money in the annual City's contributions. Mr. McKinney stated that might be something the Police Pension board wants to do. There could be some assumptions that are being used,changed,modified, etc. and could only be done if you had this experience study completed by Foster and Foster. Mr. McKinney recommends for the Police Pension board to utilize Foster and Foster on preparing an experience study. Mr. McKinney added the cost was $7,000.00 to perform this study. Member Heeb questioned the cost of$7,000.00. Mr. Lozen, Foster and Foster, stated it is a very involved process usually involving two to three actuarial and analyst to go back through as many evaluation reports and census data that they can get their hands on. Then carefully study and analysis the history of all your plan assumptions,there is about 6 or 7 different assumptions in your plan.Not only do we look at what has happened with each assumption,we compare it to what is expected to happen and create scenarios for changing the assumptions going forward. The answer to the expense of$7,000.00, it is a very time consuming process usually taking about a week when you have a whole team working on it. Member Heeb made a motion for Foster and Foster to provide an experience study not to exceed $7,000.00;Member Arcieri seconded the motion, which passed unanimously by roll call. ADJOURNMENT There was no further business, and the meeting was adjourned at 3:59 p.m. Respectfully Submitted: Approved: Donna Looney, Personnel Director David Arcieri, Chairman