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12-11-2017CITY OF EDGEWATER FIREFIGHTERS' PENSION BOARD QUARTERLY MEETING MINUTES City Hall Council Chambers Monday, December 11, 2017 TRUSTEES PRESENT: Dominick Fede Justin Nickels Dick Calabrese William Dailey TRUSTEES ABSENT: David Blair OTHERS PRESENT: Ken Harrison, Sugarman & Susskind John Thinnes, AndCo Consulting Bridgette King, Interim Finance Director Chief Trevor Barlow Doug Lozen, Foster & Foster David Kelly, Bowen, Hanes & Company Call to Order — Dominick Fede called the meeting to order at 4:10 p.m. 2. Roll Call —As reflected above. 3. Public Comments — None 4. Approval of Minutes The minutes from the October 23, 2017, quarterly meeting were approved upon motion by Justin Nickels and second by Dick Calabrese, motion carried 4-0. 5. New Business a. Discussion of City's one-time contribution repayment to members i. Bridgette King explained that earlier in the year there was an examination of pensionable pay. Bridgette reviewed the 300 cap statute, and what can be included and the pay codes in place. Bridgette commented when reviewing the valuation data, she noticed two different calculations were being used when computing employee and employer contributions. A repayment was made to the members for the overpaid contributions that occurred. ii. Bridgette King reviewed the Fair Labor Standards Act and what determined overtime, which are all hours over 106 hours in a 14 day period. Dominick Fede and Justin Nickels commented that there is no option to not work overtime because it's part of their regular shift hours and, therefore, shouldn't count towards the 300 hours. iii. The board discussed salaried employees getting straight -time for overtime. Ken Harrison commented that the contracts would need to be reviewed. iv. Ken Harrison commented he will research the issue that members are mandated to work 112 hours every 14 days and any exemptions that may apply. Ken will present his findings and case to the city manager and the city attorney. Note. Bridgette King left at 4:35 p.m. b. Actual plan expenses as of September 30, 2017 i. Ferrell Jenne reviewed SB172 Budget requirements. The actual plan expenses as of September 30, 2017, were approved as presented upon motion by Justin Nickels and second by William Dailey, motion carried 4-0. c. Renewal of the 2018 FPPTA board membership i. Ferrell Jenne explained that if the board wanted to renew their membership for 2018, the annual subscription fee is $600. ii. Board reviewed the advantages of being FPPTA members and the fees of other pension organizations. The board approved the renewal of the FPPTA membership for 2018 upon motion by William Dailey and second by Justin Nickels, motion carried 4-0. d. Proposed 2018 meeting dates i. Ferrell Jenne reminded the board that all three pension plans meet on the same day and the dates had been approved by the general and police boards. e. Memo from Foster & Foster regarding the online submittal of the valuation reports i. Ferrell Jenne reviewed the state mandate to submit all future valuation reports online using the state's portal along with the additional work and associated fees. The board voted to approve the additional fees to Foster & Foster to submit all future valuation reports online upon motion by Justin Nickels and second by William Dailey, motion carried 4-0. Discussion of adding a 13th check provision i. Ken Harrison commented that plans that provide a COLA or 13th check is normally funded based on plan performance. Ken reminded the board that it's a benefit change, so it should go to the bargaining units. ii. Doug Lozen commented that costing out a 13th check is difficult because it's tied to the performance. Doug commented that he can run some scenarios but would like feedback from the membership on what type of benefits they are looking for. Doug commented he prefers giving a list of benefit improvements and associated costs and letting the membership vote. iii. Doug Lozen reviewed the assumptions and cautions that any projected costs would be on the conservative side. iv. Dominick Fede commented that he will talk to the membership and get feedback on desired benefit improvements. g. Election of Officers i. Ferrell Jenne reminded the board that the Chairman and Secretary are to be elected annually. The board elected Dominick Fede as Chairman and Justin Nickels as Secretary upon motion by William Dailey and second by Dick Calabrese, motion carried 4-0. 6. Reports a. Bowen, Hanes & Company, David Kelly, Investment Manager i. David Kelly gave an update as of November 30, 2017. ii. The Market value of assets as of November 30, 2017, was $13,432,495.52. iii. David Kelly reviewed the bonds reaching maturity. iv. David Kelly reviewed new holdings in the portfolio. b. AndCo Consulting, John Thinnes, Investment Consultant i. John Thinnes provided a brief overview of the market environment during the quarter. ii. The 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% respectively. Since inception (12/1/01), net returns are 5.61 %, underperforming the benchmark of 6.69%. iii. The market value of assets as of September 30, 2017, is $12,351,537. iv. John Thinnes reviewed the allocations and remined the board they are heavily weighted in equities. v. As of November 30, 2017 the market value of assets are approximately $13.54 million. vi. Ken Harrison commented that the returns are the highest he's seen. c. Sugarman & Susskind, Ken Harrison, Board Attorney. i. Ken Harrison briefly reviewed the pre -filed bills and commented the legislative session will start at the beginning of the year. i. Ken Harrison commented that no language was changed in the Share Plan when the plan restatement was done. Note: David Kelly left at 5:27 p.m. Doug Lozen reviewed past practice and commented that in 2013 is the last time a member left in the middle of the year. The board at the time directed an allocation in the final year. Doug commented the language is silent and recommended Ken Harrison to draft a policy as past practice allows for partial Share Plan allocations in the final year of service. The board authorized Ken Harrison to draft an administrative policy regarding share plan allocations during the last year of service upon motion by Justin Nickels and second by William Dailey, motion carried 4-0. iii. Board discussed interest on refunds. iv. Board discussed minimum benefits under Chapter 175. v. Board discussed an experience study and Doug Lozen commented it should be done every 5 years. 7. Consent Agenda a. Payment warrants for ratification. i. Warrant #34 b. Payment warrants for approval. i. None c. Fund activity report for October 17, 2017 — December 6, 2017 The board approved the consent agenda as presented upon motion by Justin Nickels and second by William Dailey, motion carried 4-0. F 8. Staff Reports, Discussion and Action a. Foster & Foster, Ferrell Jenne, Plan Administrator. i. Ferrell Jenne reviewed the upcoming FPPTA conferences. 9. Trustees' Reports, Discussion and Action — None. 10.Adiournment— Meeting adjourned at 5:50 p.m. 11. Next Meeting — March 19, 2018, at 4:00 p.m. pectfully sybmitted by: n Administrator Approved by: ominick Fede, Chairman �' pp Y L6n C`� �dl Date A ro the Pension Board: