06-19-2017CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, June 19, 2017 at 1:30PM
TRUSTEES PRESENT: Alexander Penalta
David Arcieri
Lawrence Leaf
Larry Brinson
Timothy Webb
TRUSTEES ABSENT: None
OTHERS PRESENT: Ken Harrison, Sugarman & Susskind
Ferrell Jenne, Foster & Foster
Jack Evatt, AndCo Consulting
Julie Christie, HR Director
Call to Order — Alexander Penalta called the meeting to order at 1:40pm.
Roll Call — As reflected above.
Public Comment — None.
4. Approval of Minutes
The minutes from the March 20, 2017, quarterly meeting were approved upon motion by
Larry Brinson and second by Timothy Webb, motion carried 4-0.
New Business
a. Annual Reports Memo from Foster & Foster.
i. Ferrell Jenne reviewed the memo and advised there would be an
increased Annual Report fee of $500. Ferrell commented that the
production time to upload and file the Annual Report using the State's
online submittal process had increased production time by almost 50%.
The board approved the $500 Annual Report fee increase as outlined in the Foster &
Foster memo upon motion by Larry Brinson and second by Lawrence Leaf, motion carried
4-0.
b. Updated Summary Plan Description (SPD).
i. Ferrell Jenne reviewed the changes and updates to the SPD,
commenting that it was inclusive of all plan changes through Ordinance
2016-0-34.
ii. Ken Harrison recommended removing Section 6, Claims Procedures
Before The Board, from the SPD and setting a separate board policy.
The board approved the Summary Plan Description with the removal of Section 6, Claims
Procedures Before The Board, upon motion by Larry Brinson and second by Lawrence
Leaf, motion carried 4-0.
Note: David Arcieri arrived at 1:50pm.
Old Business — None.
Reports
a. AndCo Consulting, Jack Evatt, Investment Consultant.
Quarterly update as of March 31, 2017,
1. Jack Evatt gave a brief overview of the market environment
during the quarter. Jack commented that the equity markets had
been very strong.
2. Market value of the fund as of March 31, 2017, was $8,816,080.
3. Jack Evatt advised that they were over -weighted in equity and
would need to allocate money into fixed income to stay compliant
with the Investment Policy Statement (IPS).
4. Jack Evatt reviewed the financial reconciliation quarter to date.
5. Gross total fund returns for the quarter were 4.50%,
outperforming the policy benchmark of 4.09%. Trailing total fund
gross returns for the 1, 3, and 5 year periods were 10.01%,
5.17%, and 7.75%. Since inception (10/1/2000) gross returns
were 4.83%, slightly underperforming the policy benchmark of
4.96%.
6. Jack Evatt reviewed the compliance checklist.
7. Jack Evatt recommended rebalancing to target instead of
rebalancing to align with the allowable range.
8. Jack Evatt recommended moving 5.6% (approximately
$493,000) out of domestic equity (Vanguard Extended Market)
into the Integrity Fixed Income portfolio to bring the overall
allocation to target.
The board voted to approve Jack Evatt's recommendation to move 5.6% (approximately
$493,000) out of domestic equity (Vanguard Extended Market) into the Integrity Fixed
Income portfolio to bring the overall allocation to target upon motion by Tim Webb and
second by Larry Brinson, motion carried 5-0.
ii. Real Estate Primer.
1.
Jack Evatt commented the updated IPS allowed the plan to
utilize a real estate allocation. Jack commented the plan had
exposure to real estate when they were with Principal.
2.
Jack Evatt reviewed the real estate universe and market cycle,
commenting he would recommend concentrating on commercial
real estate.
3.
Jack Evatt reviewed the real estate returns and benefits of
investing in real estate.
4.
Jack Evatt reviewed the real estate strategies and the varying
risk and return profiles.
5.
Jack Evatt commented that the board would need to decide if
this was an asset allocation the plan wanted to invest in. If so,
Jack would bring managers to discuss at the next meeting.
6.
Jack Evatt commented he thought it was a good idea to invest in
real estate, especially since the plan had a high allocation to
fixed income.
7.
Jack Evatt reviewed the queue process.
8.
By consensus, the board agreed to have Jack Evatt bring in real
estate mangers options to the next meeting for review.
b. Sugarman &
Susskind, Ken Harrison, Board Attorney.
i. Legislative update and action plan.
1.
SB 80 — This bill dealt with the attorney fees and costs that are
incurred during a lawsuit on improper responses to a public
records request. Ken Harrison advised the board to post a notice
on the City and Foster & Foster's website that states who to
contact for public records requests.
2.
SB 702 — Dealt with revisions to FRS, all new entrants would go
into the defined contribution plan by default.
3.
Ken Harrison asked if it was acceptable to use the plan's share
plan language as an example for other plans. By consensus, the
board agreed.
Consent Agenda
a. Ferrell Jenne briefly reviewed the fund activity spreadsheet and payment
warrants with the board.
The board approved the consent agenda as presented upon motion made by Larry
Brinson and second by Lawrence Leaf, motion carried 5-0.
Staff Reports, Discussion, and Action
a. Foster & Foster, Ferrell Jenne, Plan Administrator.
i. Ferrell Jenne commented that the SB 534 posting requirements were
sent to the City on May 24, 2017, and that she received confirmation
they were posted to the City's website on May 25, 2017.
ii. Update on Fiduciary Liability Policy.
1. Ferrell Jenne commented that the applications have been sent to
the City to obtain coverage for the next fiscal year.
iii. Educational Opportunities.
1. Ferrell Jenne commented that the FPPTA 33ra Annual
Conference would be held June 25 — 28, 2017 in Orlando,
Florida at the Omni ChampionsGate Resort.
iv. Ferrell Jenne reminded the board to file their Financial Disclosure forms
prior to July 1, 2017 to avoid penalty fees.
10. Trustee Reports, Discussion, and Action
a. Timothy Webb reviewed the buyback process.
b. Timothy Webb asked about changing the share plan allocations from shares
based on years of service to an equal distribution. Ken Harrison commented
that it would be a change in benefits and would have to go to the collective
bargaining units. David Arcieri commented that he agreed with the current
allocation method.
11. Adiournment — The meeting adjourned at 2:40pm.
12. Next Meeting — Monday, October 23, 2017, 1:30PM.
pectfu ly ub itted by: Approved by:
NI Jenn , Plan dministrator Alexander Penalta, Chairman
Date Approved y the Pension Board: n(max
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