10-23-2017CITY OF EDGEWATER
FIREFIGHTERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, October 23, 2017, at 4:OOPM
TRUSTEES PRESENT: David Blair
Dominick Fede
Justin Nickels
William Dailey
Dick Calabrese
TRUSTEES ABSENT: None
OTHERS PRESENT: Ferrell Jenne, Foster & Foster
Ken Harrison, Sugarman & Susskind
John Thinnes, AndCo Consulting
Mindy Johnson, Salem Trust Company
Call to Order — Dominick Fede called the meeting to order at 4:03pm.
2. Roll Call — As reflected above.
3. Public Comments — None.
4. Approval of Minutes
The minutes from the June 19, 2017, quarterly meeting were approved upon motion by
William Dailey and second by Justin Nickels, motion carried 4-0.
5. New Business
a. 2017-2018 administrative budget.
L Ferrell Jenne reviewed the SB 172 requirements and each expenditure
type.
Note: Dick Calabrese arrived at 4:05pm
The board voted to approve the proposed 2017-2018 budget as presented, upon motion by
Justin Nickels and second by William Dailey, motion carried 5-0.
b. Discussion of Chapter 175 share plan allocation method.
i. Justin Nickels commented that recent retirees were asking questions
about share plan allocations in the year of terminations. In the past, an
allocation was given even if termination occurred prior to the end of the
Fiscal Year, Ferrell Jenne commented that the actuary confirmed the
current plan restatement didn't allow for an allocation if the entire fiscal
year was not worked. Ken Harrison commented that he would research
why the language was changed in the restatement.
Old Business — None.
Reports
a. The Salem Trust Company, Mindy Johnson, Custodian.
i. Quarterly service report and GlobeTax update.
1. Mindy Johnson reviewed the quarterly service report.
2. Mindy Johnson reviewed the GlobeTax update through September
30, 2017, commenting they had recovered a net amount of $170.25.
3. Mindy Johnson reviewed the GlobeTax recovery fees.
4. Mindy Johnson reviewed the class action securities litigation
process and commented that Salem Trust had hired CCC as a
third -party vendor to process the class actions. Mindy commented
the fee was 20% of anything that was reclaimed.
The board voted to amend the Salem Trust contract to include the processing fee of 20%
for class actions, upon motion by Justin Nickels and second by William Dailey, motion
carried 5-0.
The board voted to approve Option A as stated on Salem Trust's directions for processing
class actions, upon motion by Justin Nickels and second by William Dailey, motion carried
5-0.
5. Mindy Johnson reviewed the confirmation of receipt of statements
with the board.
b. Andco Consulting, John Thinnes, Investment Consultant.
i. Quarterly report as of September 30, 2017.
1. John Thinnes reviewed his role with the plan, commenting they
were the performance monitor and would develop the Investment
Policy Statement (IPS).
2. John Thinnes briefly reviewed the returns from Bowen, Hanes &
Company, commenting the returns were the highest he had seen.
3. John Thinnes briefly reviewed the market environment during the
quarter.
4. As of September 30, 2017, the market value of assets were
$13,057,468.
5. Total fund net returns for the quarter were 4.54%, outperforming the
policy benchmark of 3.47%. Fiscal YTD total fund net returns were
15.71%, outperforming the benchmark of 12.08%. Trailing returns
for the 3 and 5 year periods were 7.15% and 9.16%. Since
inception (12/01/2001) net returns were 5.61%, underperforming the
policy benchmark of 6.69%.
6. John Thinnes commented that the portfolio was very aggressively
allocated with a heavy allocation to equities.
7. William Dailey asked about a 13th check for retirees. Ken Harrison
reviewed what a 13th check was, explaining it was based off excess
returns. Ken confirmed an Ordinance change would need to be
done and adopted by Council.
Sugarman & Susskind, Ken Harrison, Board Attorney.
L Update on IRS determination letter and forced cash -ins.
1. Ken Harrison commented that the IRS determination letter was still
in progress. Ken reviewed the IRS determination letter application
process for new trustees.
2. Ken Harrison updated the board on forced cash -ins, commenting a
letter was sent to the City regarding contributions being taken out
on items that weren't pensionable. Ken commented the City
Manager stated there were triggers in place that would make
contributions stop once 300 hours were reached. Ken commented
he would find the documents the City had sent him.
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8. Consent Agenda
a. Payment Warrants for Ratification,
i. Warrants #30, #31, #32, #33
b. Payment Warrants for Approval.
L None
c. Fund activity report for June 13, 2017 — October 16, 2017
The board voted to approve the consent agenda as presented, upon motion by David Blair
and second by Justin Nickels, motion carried 5-0.
Staff Reports, Discussion, and Action
a. Foster & Foster, Ferrell Jenne, Plan Administrator.
i. Ferrell Jenne gave an update on the State Annual Report, commenting
that the plan would receive $8,000 more than the previous year and that
the report had been approved and funds had been deposited into the
account.
ii. Ferrell Jenne commented that the Division of Retirement Conference
would be held on November 15 — 17, 2017 in Orlando.
iii. Ferrell Jenne advised the board the fiduciary liability policy had been
bound through the City.
iv. Council appointed Trustee, Dick Calabrese commented he was
appointed on October 3, 2017. Ferrell Jenne commented she would
send Mr. Calabrese a Financial Disclosure form and Summary Plan
Description (SPD). Dick commented he had retired from the Air Force
and then worked for NASA. Dick commented he had lived in the area for
28 years.
10. Adiournment — The meeting adjourned at 5:03PM.
11. Next Meeting — Monday, December 11, 2017, at 4:OOPM.
1�espectfull s bmitted by: Approved by:
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Fe ell Jen e, PI n Administrator DominickFede, Chairman
Date Approve y the Pension Board:=E;/��'Y} t 9Skr)
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