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10-02-2013 - Special CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD SPECIAL MEETING MINUTES City Hall Council Chambers Wednesday, October 2, 2013 at 1 O:OOAM TRUSTEES PRESENT: Brenda Dewees Tim S poko John Brackin John McKinney Gigi Bennington Tyna Hilton Bobby Laramore OTHERS PRESENT: Lee Dehner, Board Attorney Donna Looney, Personnel Director Tracey Barlow, City Manager Ferrell Jenne, Plan Administrator 1. Call to Order Chairman Gigi Bennington called the meeting to order at 1O:OOAM. 2. Roll Call As reflected above. 3. Discussion of Draft Operating Rules &Procedures a. Tracey Barlow, City Manager, presents his recommendations regarding the draft Operating Rules & Procedures as well as recommendations for the Board to consider recommending to the City Council regarding amendments to the Ordinance to coincide with the Operating Rules &Procedures. i. Mr. Barlow made recommendations to the Operating Rules & Procedures is due to the factor that the Plan currently has 135 members. All but 12 have retired, last of the 12 will be eligible for retirement in 2018 (based on City records). Additionally, in 1999 the City Council adopted an Ordinance that addressed many of the areas associated with the presented Operating Rules& Procedures. 1. Recommends changing section 1.1 "Definition of Functions" in accordance with Section 13-40(h)of the City of Edgewater Code of Ordinances. a. Board agrees with City Manager's recommendation. 2. Recommends changing section 1.4 "Establishment of Offices" in accordance with Section 13-40(d) of the City of Edgewater Code of Ordinances. a. Board agrees with City Manager's recommendation with changes to"Attachment A." 3. Recommends changing section 1.5 "Pier Diem and Reimbursement" by removing "The Board shall establish reasonable reimbursement rates." a. Board agrees with City Manager's recommendation. 4. Recommends changing section 1.7 "Election Procedures" in accordance with Section 13-40(b)of the City of Edgewater Code of Ordinances and removing section A., B., and C. Recommends to scale down from a 7 member Board to a 5 member Board to replicate 1751185 Boards. a. Board agrees with City Manager's recommendation with changes to"Attachment A." 5. Recommends removing section 1.8 "Succession of Persons to Vacant Positions." 1 a. Board agrees with City Manager's recommendation with changes to"Attachment A." 6. Recommends changing section 1.9 "Education Requirements" from "within 6 months"to"within 1 year"of their term. a. Board agrees with City Manager's recommendation. b. Lee Dehner states that the statue says that a Trustee needs education on investment and legal topics sometime during his/her term. 7. Recommends changing section 2.1 "Attendance at Board Meetings" to be conducted in accordance with Section 13-40(e) of the City of Edgewater Code of Ordinances. a. Board agrees with City Manager's recommendation with changes to"Attachment A." 8. Recommends changing section 2.3 "Rules of Order" to be in accordance to Section 13-40(g) of the City of Edgewater Code of Ordinances. a. Board agrees with City Manager's recommendation. 9. Recommends changing section 7.2 "Contractual Services" to adhere to City Purchasing Policy when securing contractual services. a. Lee Dehner suggests that he review this document to ensure that these policies align with being fiduciaries to the Fund. b. Board agrees with City Manager's recommendation upon approval by Lee Dehner. 10. Recommends changing Section 8.1 "Form of Ordinance" to remove the word "shall"and replace with"may." a. Board agrees to keep the word "shall" in the document. b. Lee states that the Board can amend the Ordinance or do a Plan restatement as one document. The Board does not need to go to City Council if the Operating Rules& Procedures do not conflict with the 1999 Ordinance. c. Gigi Bennington calls for comments from the Board on changing the Board makeup from 7 members to 5 members. i. Trustee McKinney agrees that the Board should transition to 5 members due to the fact that the Plan only has 12 members left and the responsibilities of the Board Trustees will change (once all members are retired). ii. Trustee Wilton would like to keep the Board as 7 members and expresses concern about removing the Union representation. 1. Tracey Barlow points out that this is a closed Plan and it is very unlikely that the Plan is going to change. iii. Trustee Sopko likes that 2 members are legal City residents. iv. Lee Dehner states that most Boards are a 5 member Board due to 1751185 statue and therefore most General Employees' Boards follow suit. v. Trustee Hilton asks Mr. Dehner how the Board legally starts the process of changing the Board makeup. 1. Mr. Dehner states that they will need to provide an Ordinance effective date and then hold an election. The Board can also do a transition schedule in the Ordinance which will address the concern of the entire Board being wiped out. d. Definition of a Member of the Plan i. Board would like an appendix to the Operating Rules & Procedures to define a member. ii. Board agrees that two of the members must be legal residents of the City. 2 iii. Board agrees that two of the Members are elected by a majority of the members of such Plan. iv. Board agrees that the fifth member shall be chosen by a majority of the previous four members. v. Board agrees to remove section (b) number(4) of attachment A provided by the City Manager. vi. The Board agrees that the Board members shall elect the Chairman and Secretary. e. Stopped review of Operating Rules & Procedures on page 13, rule 10. Special meeting will be held on December 16, 2013 at 10:00am to finish the document review. 4. No Public Comment 5. Adiournment The meeting adjourned at 12:05PM upon motion made by Mr. Brackin second by Mr. Spoko. 6. Next Meeting Monday, December 16, 2013 at 10:OOAM Respectfully submitted by: Approved by: Fe ell Jen e, PI n Administrator A%�-f=�=n-��JsMMQl Date Approved By the Pension Board: 11 3 3