09-14-2015 CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, September 14, 2015 at 11:OOAM
TRUSTEES PRESENT: Chris Mathewson
Brenda Dewees
John McKinney
Tim Sopko
TRUSTEES ABSENT: Tyna Hilton
OTHERS PRESENT: H. Lee Dehner, Board Attorney
Ferrell Jenne, Plan Administrator
Jack Evatt, Investment Consultant
1. Call to Order Brenda Dewees called the meeting to order at 11:03AM.
2. Roll Call -As reflected above.
3. Public Comments—None.
4. Approval of Minutes
The minutes from the July 29 2015 quarterly meeting were approved upon motion by John
McKinney and second by Tim Sopko, motion carried 4-0.
5. New Business
a. Election of offices.
i. Brenda Dewees asked if the election should be tabled until the next
meeting when all board members were present. John McKinney stated
the same situation could occur at the next meeting if a trustee were
absent. The board agreed to move forward with the election.
John McKinney made a motion to nominate Brenda Dewees as the board's Chairperson,
and second by Tim Sopko, motion carried 4-0.
John McKinney made a motion to nominate Tim Sopko as the board's Secretary, and
second by Chris Mathewson, motion carried 4-0.
b. 2016 Meeting dates.
i. The board reviewed and discussed the proposed 2016 meeting dates.
March 14th, June 13th, September 19th, and December 121h
The board approved the 2016 meeting dates as presented by consensus.
c. No impact letter, done in conjunction with Senate Bill 1128.
i. Ferrell Jenne stated that she submitted the no impact letter along with
the proposed Ordinance to the City Clerk for first reading.
6. Reports
a. The Bogdahn Group, Jack Evatt, Investment Consultant.
i. Quarterly report as of June 30, 2015.
1. Jack Evatt gave a brief overview of the market environment
stating it was not a good quarter for the plan due to volatility.
2. Total market value of the fund was$12,723,803 at the beginning
of the quarter and by 6/30/15 was down to $12,394,908.
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3. Net earnings for the quarter were-0.50%, slightly
underperforming the policy benchmark of-0.48%.
4. Fiscal-year-to-date net earnings were 5.03%, outperforming the
benchmark of 4.09% by 0.94%.
5. Since inception (10/1/2000) net earnings were 4.78%,
underperforming the policy benchmark of 5.56% by-0.78%.
6. Gross earnings fiscal-year-to-date were at 5.07% which put the
plan in the 391h percentile.
7. Brenda Dewees commented that RidgeWorth Large Cap was
consistently underperforming and wondered when they would go
on watch. Jack Evatt stated they would go on watch at the three
year mark but given their investing style he was comfortable
leaving them in the portfolio.
b. Christiansen & Dehner, Lee Dehner, Board Attorney.
i. Legislative Update.
1. House Bill 1309 mandates all local law plans must utilize the
FRS mortality tables for actuarial calculations effective January
1, 2016. The new mortality table will be incorporated into the
October 1, 2016 valuation report and since this table is more
conservative it will most likely have a funding impact on the plan.
7. Consent Agenda
a. Retiree activity spreadsheet.
i. John McKinney asked that the retiree activity spreadsheet be moved to
new business on the agenda going forward. The board briefly discussed
and agreed by consensus.
The consent agenda was approved as presented upon motion by John McKinney and
second by Tim Sopko, motion carried 4-0.
8. Staff Reports, Discussion, and Action
a. Fiduciary liability insurance policy.
i. Ferrell Jenne presented the fiduciary liability policy to the board and
explained the City pays for the premium then deducts the amount from
their required contributions. Ferrell commented that premiums were
slightly higher than last year due to an increase in the plan's assets.
The board voted to bind the fiduciary liability policy as presented upon motion by Tim
Sopko and second by Chris Mathewson, motion carried 4-0.
9. Trustee Reports, Discussion, and Action
a. Contract for Board Attorney, Lee Dehner.
i. John McKinney asked if Lee's contract needed to be amended now that
he was no longer representing the Police Board. Lee Dehner stated the
contract does not need to be amended, he will continue to share travel
expenses amongst other plans he visits during his trip.
ii. Ferrell Jenne stated she had sent the proposed 2016 meeting dates to
Ken Harrison in an effort to continue to share costs with the common
consultants.
10. Adjournment The meeting adjourned at 11:35am.
11. Next Meeting Monday, December 14, 2015 at 11:00am.
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