09-16-2019CITY OF EDGEWATER
POLICE OFFICERS' PENSION BOARD
QUARTERLY MEETING MINUTES
City Hall Council Chambers
Monday, September 16, 2019, at 1:30PM
TRUSTEES PRESENT: Lawrence Leaf
Alexander Penalta
Joe Mahoney
TRUSTEES ABSENT: Aaron Soltz
OTHERS PRESENT: Ken Harrison, Sugarman & Susskind
Michelle Rodriguez, Foster & Foster
John Thinnes, AndCo Consulting
Call to Order — Alexander Penaita called the meeting to order at 1:35pm.
2. Roll Call — As reflected above.
3. Public Comment — None.
4. Approval of Minutes
The minutes from the June 10, 2019, quarterly meeting were approved, upon motion
Lawrence Leaf and second by .toe Mahone • motion carried 3-0.
The minutes from the June 25, 2019, disability meeting were approved, upon motion by
Lawrence Leaf and second by Joe Mahoney; motion carried 3-0.
New Business
a. Fiscal Year 2019-2020 Proposed Budget
i. Michelle Rodriguez reviewed the proposed budget. Ken Harrison
commented this was required by the State and this proposed budget
must be sent to the City by October 151. Ken commented the auditor fees
were paid by the City and the IME fees needed to be watched closely_
ii. Joe Mahoney recommended the school dues be increased to
accommodate all five trustees going to schools in the next year to
$15,000.
The board approved the 2019-2020 proposed budget with discussed revisions, upon
motion by Lawrence Leaf and second by Joe Mahoney; motion carried 3-0.
6. Old Business
a. Council Appointed Trustee Seat
i. Michelle Rodriguez advised the board Myles Lawler has submitted his
application and will be appointed at the September 23, 2019, City
Council Meeting.
7. Reports
a. AndCo Consulting, John Thinnes, Investment Consultant
i. Quarterly report as of June 30, 2019
1. John Thinnes reviewed the market environment throughout the
fast quarter and commented growth outperformed value over the
last quarter. John reviewed the treasury yield curve and the
impact of the inverted yield curve. Since it only happened for a
very short time, economists were not predicting a recession as in
the past. John commented if the Federal Reserve continued to
lower their rate it would keep the yield curve where it should be.
2. John Thinnes reviewed the portfolios performance and
commented for a plan of its size, it was very well diversified.
3. The market value of assets as of June 30, 2019, was
$10,492,748.
4. The total fund gross returns for the quarter ending June 30,
2019, was 3.71 %, outperforming the policy benchmark of 3,38%.
The 1, 3, and 5-year trailing returns were 7.19%, 8.99%, and
6.10% respectively. Since inception (1011100) the return was
5.24%, slightly underperforming the benchmark of 5.34%.
5. John Thinnes reviewed the plan's financial reconciliation and
there were no questions from the board.
6. John Thinnes advised the board they had a very good quarter,
earning 3.71 %, which put the plan in the tenth percentile among
its peers.
7. John Thinnes commented he was keeping an eye on the Becker
Value Equity Fund; however, the rest of the portfolio is
performing in line with expectations.
8. John Thinnes reviewed the fee analysis of the managers and
commented 0.38% is an extremely competitive rate.
9. Ken Harrison asked about the State Premium Tax distribution
and Michelle Rodriguez commented the amount of the allocation
this year was $177,174.44. Ken asked John Thinnes where the
money would be invested, and John said it would go into the
Integrity Core Aggregate Fund.
The board voted to accept the AndCo Quarterly report as presented, upon motion by
Lawrence Leaf and second by Joe Mahoney; motion carried 3-0.
10. John Thinnes advised the board he is asking for a $3,000 fee
increase to lock in for 3 years. Ken Harrison commented AndCo
would need to send a formal proposal to the board. Alexander
Penalta commented he does not agree with the fixed rate and
he would rather it be tied to market performance. Ken
commented the State recommends pension boards pay
investment consultants a fixed rate. Alexander Penalta
commented he would rather have a one (1) year contract and not
a three (3) year contract.
11. John Thinnes commented since the market has been going up
over the last 10 years, a flat rate has been advantageous to the
board, but with the threat of a recession, he understands the
chairman's concern to lock the board in to a 3 year contract.
John advised the board he will bring a bring a formal proposal to
the next meeting.
b. Sugarman & Susskind, Ken Harrison, Plan Attorney
i. No report
8. Consent Agenda
a. Payment Ratification
i. Warrant #63, #64, 465, and #66
b. Fund activity report for June 04, 2019 through September 09, 2019
The board voted to approve the consent agenda as presented upon motion by Joe
Mahoney, and second by Lawrence Leaf; motion carried 3-0.
9. Staff Reports, Discussion, and Action
a. Foster & Foster, Michelle Rodriguez; Plan Administrator
i. Financial Disclosure Forms
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1. Michelle Rodriguez confirmed all trustees had submitted their
required forms.
ii. Reimbursement Procedures
1. Michelle Rodriguez reviewed the procedure for travel and school
reimbursements and advised the board reimbursements could
be done via direct deposit.
iii. Update on State Monies
1. This topic was discussed earlier in the meeting.
iv. Upcoming Educational Opportunities
1. Michelle Rodriguez reviewed upcoming educational opportunities
that were available to the board. Lawrence Leaf asked about the
plan attorney presenting an educational seminar. Ken Harrison
advised the board he would give a presentation on fiduciary
responsibility and John Thinnes would give a presentation on
investments at the next meeting. Lawrence Leaf recommended
the board automatically do this once per year.
10. Trustee Reports, Discussion, and Action --- None.
11. Adjournment — The meeting adjourned at 2:13pm.
12. Next Meeting — Monday, December 09, 2019, at 1:30pm.
Respecjfully submitted by: Approved by:
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Michelle Rodriguez, P an Adrrbhstlr Alexander Penalta, Chairman
Date Approved by the Pension Board: ze) b �
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