12-11-2017CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, December 11, 2017 at 1:30PM
TRUSTEES PRESENT: David Arcieri
Lawrence Leaf
Alexander Penalta
TRUSTEES ABSENT: Larry Brinson
Timothy Webb
OTHERS PRESENT: Ken Harrison, Sugarman & Susskind
Ferrell Jenne, Foster & Foster
John Thinnes, AndCo Consulting
1. Call to Order — Alexander Penalta called the meeting to order at 1:40pm.
2. Roll Call — As reflected above.
3. Public Comment — None.
4. Approval of Minutes
The minutes from the October 23, 2017, quarterly meeting were approved upon motion by
David Arcieri and second by Lawrence Leaf, motion carried 3-0.
New Business
a. Actual plan expenses as of September 30, 2017
i. Ferrell Jenne reviewed SB172 requirement.
The board voted to approve the actual plan expenses as of September 30, 2017 as
presented upon motion by David Arcieri and second by Lawrence Leaf, motion carried 3-0.
b. Memo from Foster & Foster regarding the online submittal of 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 David Arcieri and second by Lawrence Leaf,
motion carried 3-0.
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.
The board approved the renewal of the FPPTA membership for 2018 upon motion by
Lawrence Leaf and second by David Arcieri, motion carried 3-0.
d. Proposed 2018 meeting dates
i. Ferrell Jenne reminded the board that all three pension plans meet on
the same day and commented she will send out an email once the dates
have been finalized with the other boards.
e. Trustee term expirations
i. Ferrell Jenne reviewed the term expiration for Lawrence Leaf and
Alexander Penalta. Alex commented he would like to serve another
term. Ken Harrison recommended waiting until the next meeting to
discuss the 5'" trustee seat. Ken commented that Lawrence Leaf can
continue to serve under the holdover provision.
Old Business — None.
Reports
a. AndCo Consulting, John Thinnes, Investment Consultant
i. John Thinnes commented that for the fiscal year, the plan is just under
12 %.
ii. John Thinnes reviewed the financial reconciliation for FYTD and QTD.
iii. The market value of assets as of November 30, 2017 is $9,706,905.
iv. The total fund return FYTD is 2.79%, slightly overperforming the policy
benchmark of 2.75%. The 3 and 5 year trailing returns are 6.34% and
9.03% respectively. Since inception (10/1/2000), the return is 5.19%
underperforming the benchmark of 5.30%.
v. John Thinnes commented that due to a conflict, Richelle Hayes from
American Realty, was unable to attend.
vi. John Thinnes reviewed American Realty's experience and current client
list.
vii. John Thinnes gave a fund snapshot, commenting American Realty has
an approximate $5.8 million gross asset value and a leveraged ratio of
19.8%. John commented that the expected return is 6% - 8%.
viii. John Thinnes briefly reviewed some recent acquisitions and
recommended going into the strategy.
ix. John Thinnes reviewed the fees, commenting they are at 1.1% and the
allocation would come from Integrity.
x. John Thinnes reviewed the queue and call for capital process.
The board approved AndCo's recommendation of adding a real estate allocation to
American Realty upon motion by David Arcieri and second by Lawrence Leaf, motion
carried 3-0.
b. Sugarman & Susskind, Ken Harrison, Board Attorney.
i. Ken Harrison reviewed the proposed ordinance and administrative rules
and procedures regarding equal share plan allocations.
The board voted to leave the share plan language using the allocation methodology based
on credited service upon motion by David Arcieri and second by Lawrence Leaf, motion
carried 3-0.
ii. Ken Harrison briefly reviewed the pre -filed bills and commented the
legislative session will start at the beginning of the year.
iii. Ken Harrison commented he is still working with actuary on Martha Miles
possible recalculation.
iv. Ken Harrison commented that the plan provision when Principal was the
actuary are different than the provision in place today.
Consent Agenda
a. Payment warrants for ratification.
i. Warrants #41
b. Payment warrants for approval.
i. None
c. Fund activity report for October 17, 2017 — December 6, 2017.
The board voted to approve the consent agenda as presented, upon motion by David
Arcieri and second by Lawrence Leaf, motion carried 3-0.
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9. Staff Reports, Discussion, and Action
a. Foster & Foster, Ferrell Jenne, Plan Administrator.
i. Ferrell Jenne reviewed the upcoming FPPTA conferences.
ii. Ferrell Jenne requested that the board gives her direction on how many
benefit calculations are covered by the plan. By consensus, the board
stated that one estimate and one final calculation would be covered by
the plan.
The board approved the cost for one estimate and one final calculation to be covered by
the board upon motion by David Arcieri and second by Lawrence leaf, motion carried 3-0.
10. Trustee Reports, Discussion, and Action — None.
11. Adjournment — The meeting adjourned at 2:14pm.
12, Next Meeting — Monday, March 19, 2018, 1:30PM.
pectfully ubitted by: Approved by:_ r
Fer II Jenn , Plan dministrator Alexander Penallta, Chairman
Date ppro d by th Pension Board: I � + t � C CH ' C—F i a0l p)
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