06-19-2017CITY OF EDGEWATER
GENERAL EMPLOYEES' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, June 19, 2017 at 10:30AM
TRUSTEES PRESENT: Brenda DeWees
Tim Sopko
Tyna Hilton
TRUSTEES ABSENT: John McKinney
OTHERS PRESENT: Paul Daragjati, KKJ&L
Toni Lozen, Foster & Foster
Frank Wan, Burgess Chambers & Associates (BCA)
Julie Christine, HR Director
Call to Order — Brenda DeWees called the meeting to order at 10:39AM.
Roll Call — As reflected above.
Public Comments — None.
4. Approval of Minutes
The minutes from the March 27, 2017 quarterly meeting were approved upon motion by
Tvna Hilton and second by Tim Sopko, motion carried 3-0.
The minutes from the April 10, 2017 special meeting were approved upon motion by Tvna
Hilton and second by Tim Sopko, motion carried 3-0.
New Business and Reports
a. BCA Consulting, Frank Wan, Quarterly Report as of March 31, 2017.
i. Brenda DeWees welcomed Frank Wan.
ii. Frank Wan stated BCA has been in business since 1988. They have 82
clients, 3.6B in assets, of which 75% are Florida public pension plans.
Frank stated that the BCA reporting system is the same as AndCo, so
reports should look very similar.
iii. Frank Wan reviewed the performance of each manager and the market
environment during the quarter.
Note: Paul Daragjati arrived at 10:47am
iv. Market value of assets as of March 31, 2017 were $12,103,078.
v. Gross total fund earnings for the quarter were 3.84% outperforming the
benchmark of 3.49%. The total fund gross returns for the trailing 1, 3,
and 5 year periods were 9.44%, 4.38%, and 7.39%. Since inception
(10/1/2000), returns were 4.68%.
vi. Frank Wan stated that the average assumption rate across Florida is
7.6%; Edgewater is at 6.75%. Very conservative; good idea for a closed
plan. Frank reviewed net transfers and stated withdrawals are significant
for a plan this size. Frank reviewed the plan earnings. Frank stated that
overall, it was a pretty positive report, both domestic and international did
well. Frank highlighted down-market capture.
vii. Presentation of BCA Handout. Frank commented that he doesn't expect
rates to increase. Pension plans have seen a huge shift in market risk
over last two decades. Stocks and Bonds (asset allocation) drives the
plan performance. Frank explained the Efficient Frontier idea of asset
allocation. Frank commented that the key for pension plans is to reach
the assumption rate with the highest degree of certainty.
viii. Frank explained Liability Driven Investing and its glide -path. If less
funded, you need to be more aggressive with your investments. Brenda
DeWees asked if the funds current 64% funded status warranted a 60/40
equity/fixed income split. Frank agreed with the portfolio allocation.
b. Klausner Kaufman Jenson & Levinson (KKJL), Paul Daragjati, Attorney
i. Brenda DeWees welcomed Paul Daragjati.
ii. Paul Daragjati thanked the board for their trust and looks forward to a
long working relationship. Paul has been with the firm for 4 years, was a
police officer, prosecutor for some time, and then went into private
practice. His current firm has a strong depth of resources.
iii. KKJL prepares a memorandum at the end of each Legislative session
detailing what has passed. Paul advised that no legislation passed this
session geared to public pension funds.
iv. Public records law were amended that requires an individual to give a
pension board 5 -day notice before proceeding with a lawsuit for not
receiving requested documents. If a suit proceeds, and it is found that a
document was withheld in violation of the law; must also show intent to
withhold. This protects Boards from abuse seen the last few years. Paul
advises Board to forward requests to Administrator or City Clerk quickly;
no set time, but as soon as possible is best.
v. Last Legislative session saw an amendment that allowed 100%
exemption of property tax for public safety members injured in the line of
duty who can show total and permanent disability by Social Security
standards.
vi. Tim Sopko asked if public records requests need to be in writing. Paul
said yes, or in an email.
6. Old Business — None.
7. Consent Agenda
The board voted to approve the consent agenda as presented upon motion by Tyna Hilton
and second by Tim Sopko, motion carried 3-0.
8. Staff Reports, Discussion, and Action
a. Senate Bill 534
i. Toni Lozen advised that the calculations to comply with SB 534 have
been prepared and were posted to the City's website on May 25, 2017.
b. Fiduciary Liability Update
i. Toni Lozen advised that a renewal application has been sent to the City
to secure coverage for the next fiscal year.
9. Trustee Reports, Discussion, and Action
a. Brenda stated that Ferrell Jenne has requested from IUOE an appointee for the
Board's vacant seat. Julie Christine indicated that somebody has put forth their
name and could be at the next quarterly meeting.
10. Adiournment The meeting adjourned at 11:34am
11. Next Meeting October 23, 2017, at 10:30am.
Respectfyll�y submitted by: Approved by: /%
Name: TO6a6zen Name:-%31r_)Ek,,0A
Title: Plan Administrator
Title: G ft► .PEM W
Date Approved by the Pension Board: QkJo (� PE -141-11% 9 J I deo i�