12-12-2016CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, December 12, 2016, at 5:OOPM
TRUSTEES PRESENT: Dominick Fede
Justin Nickels
William Dailey, Sr.
TRUSTEES ABSENT: Scott Hopkins
OTHERS PRESENT: Ferrell Jenne, Foster & Foster
Ken Harrison, Sugarman & Susskind
John Thinnes, The Bogdahn Group
David Kelly, Bowen Hanes & Company
Call to Order Dominick Fede called the meeting to order at 5:00pm.
2. Roll Call As reflected above.
3. Public Comments None.
4. Approval of Minutes
The minutes from the September 19, 2016, quarterly meeting were approved upon motion
by Justin Nickels and second by William Dailey, motion carried 3-0.
5. New Business
a. New Council appointed Trustee, William Dailey, Sr.
L Ferrell Jenne informed the board that Mr. Dailey was appointed at the
November 14, 2016 Council meeting.
ii. William Dailey introduced himself and gave a brief overview of his prior
fire experience.
iii. The consultants introduced themselves and described their individual
roles.
Note: John Thinnes arrived at 5:05pm.
b. Proposed 2017 meeting dates.
i. Ferrell Jenne reviewed the proposed 2017 dates with the board; March
20th, June 19th, September 18th, and December 11tH
ii. The board decided they would like to move the meeting time up to
4:00pm.
The board approved the proposed 2017 meeting dates as presented and a meeting time
change to 4:00pm, upon motion by Justin Nickels and second by William Dailey, motion
carried 3-0.
c. Actual expenses budget as of September 30, 2016.
i. Ken Harrison explained the budget was done to stay compliant with
Senate Bill 172. The board briefly discussed the attorney fees.
The board approved the actual expenses as of September 30, 2017 as presented, upon
motion by Justin Nickels and second by William Dailey, motion carried 3-0.
d. Renewal of FPPTA membership.
i. Ferrell Jenne informed the board that their FPPTA membership was up
for renewal at a cost of $600.
The board approved the renewal of their FPPTA membership upon motion by William
Dailey and second by Justin Nickels, motion carried 3-0.
e. Salem Trust staff change memo.
i. Ferrell Jenne reviewed the memo with the board commenting that Brad
Rinsem was stepping down as President and Mark Rhein had become
the new President.
ii. Dominick Fede asked Ken Harrison if the staffing change was cause for
concern. Ken stated he didn't feel the staffing change would impact the
operation of the custodian.
6. Old Business
a. IRS Determination Letter.
i. Dominick Fede asked about the IRS Determination Letter. Ken Harrison
commented that his office had received a letter from the IRS stating they
had received the plan's application and were reviewing it.
7. Reports
a. Bowen Hanes & Company, David Kelly, Investment Manager.
i. Quarterly update as of September 30, 2016.
1. David Kelly briefly reviewed the market environment during the
quarter.
2. David Kelly informed the board that seven bonds would reach
maturity in 2017 and four bonds would reach maturity in 2018.
3. David Kelly reviewed changes to the holdings due to the
Presidential election.
4. Fiscal YTD returns were 12.60%, underperforming common stocks
at 16.60% and the S&P Index 500 at 15.40%, but outperforming the
Russell 1000 at 12.50%. Since inception (6/20/2007) returns were
5.10%, outperforming common stocks at 5.00% and the Russell
1000 at 4.20%, but underperforming the S&P 500 Index at 6.20%.
5. David Kelly briefly reviewed the performance history for the fixed
income portfolio.
b. The Bogdahn Group, John Thinnes, Investment Consultant.
i. John Thinnes informed the board that his firm was rebranding and would
soon have a new name and logo.
ii. Quarterly update as of September 30, 2016.
1. John Thinnes gave a brief review of the market environment during
the quarter.
2. Market value of the fund as of September 30, 2016, was
$11,148,801, and as of December 12, 2016, was approximately
$11.42MM.
3. John Thinnes reviewed the fiscal YTD reconciliation.
4. Total net returns for the quarter were 2.13%, underperforming the
policy benchmark of 3.13%. Fiscal YTD returns were 11.93%,
outperforming the benchmark of 11.13%. Trailing returns for the 3
and 5 year periods were 6.60% and 10.11 %. Since inception
(12/1/2001) net returns were 4.96%, underperforming the policy
benchmark of 6.34%.
5. John Thinnes stated the fiscal year was very successful.
6. Dominick Fede asked how the allocations would change with more
retirees. John Thinnes commented that could be addressed at the
time of the increased distributions but it shouldn't have much impact
on the allocation.
The board voted to approve the September 30, 2016 Bogdahn report as presented upon
motion by William Dailey and second by Justin Nickels, motion carried 3-0.
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c. Sugarman Susskind, Ken Harrison, Attorney.
i. Legislative/legal update.
1. Ken Harrison commented there had been no pre -filed legislative
bills that would affect the plan.
8. Consent Agenda
a. Ferrell Jenne briefly reviewed the fund activity spreadsheet and payment
warrants with the board.
The board voted to approve the consent agenda as presented upon motion by Justin
Nickels and second by William Dailey, motion carried 3-0.
Staff Reports, Discussion, and Action
a. Summary Plan Description (SPD) distribution.
i. Ferrell Jenne informed the board that she had sent the SPD to the active
membership on September 27, 2016.
10. Trustee Reports, Discussion, and Action
a. Ken Harrison stated he had not gotten an answer from the City Manager on the
forced cash -in.
b. Ferrell Jenne stated the City Finance Director, John McKinney, had requested
that she pass along that the General Pension Board went out for a fee analysis
on service providers. The board declined going out for a service provider fee
analysis.
c. Dominick Fede asked about a pre -retirement death benefit. Ken Harrison stated
that the specifics of the incident would be considered. The accrued benefit as of
the date of death would be the retirement date. Ken commented that he could
draft a pre -retirement death analysis if the board wished.
d. Ken Harrison reminded the board about educational opportunities.
11. Adjournment The meeting adjourned at 6:OOPM.
12. Next Meeting March 20, 2017, at 4:OOPM.
Respectful Nsubmitted by: Approved by:
e ell Jen e, Ian Administrator Dominick Fede, Chairman
Date Approved By the Pension Board: Uig CSI 2 0 D 1
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