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06-08-2020CITY OF EDGEWATER GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES Governor Ron DeSantis signed Executive Order 20-69 which suspends all statutes that require a quorum to be present in person or require a local government body to meet at a specific public place. It also provides that local government bodies may utilize communications media technology, such as telephonic and video conferencing, as provided in section 120.54(5)(b)2, Florida Statutes. Under Executive Order 20-69, the board meeting was held via video conference using Zoom Meeting. Monday, June 08, 2020, at 10.30AM TRUSTEES PRESENT: Brenda DeWees Bridgette Vaissiere Tyna Hilton Dilena Talley Tim Sopko TRUSTEES ABSENT: None. OTHERS PRESENT: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson Frank Wan, Burgess, Chambers & Associates Michelle Rodriguez, Foster & Foster Call to Order — Brenda DeWees called the meeting to order at 10:32am. 2. Roll Call — As reflected above. Public Comments — None. 4. Approval of Minutes The minutes from the March 09, 2020 quarterly meeting were approved, upon motion by Tyna Hilton and second by Bridgette Vaissiere; motion carried 5-0. New Business a. Bonni Jensen commented the Governor created an executive order where meetings could be conducted virtually, and this policy had been extended indefinitely but the declaration of emergency was only until July 7th and therefore it was likely the next board meeting would probably be held in person. The Board voted to accept the Virtual Meeting Policy as presented, upon motion by Bridgette Vaissiere and second by Tim Sopko; motion carried 5-0. Old Business a. Brenda DeWees asked Michelle Rodriguez if there was an update regarding Chris Mathewson. Michelle commented she reached out to the City and was told he did not request a leave payout at retirement, so it was not included in his Average Final Compensation. Reports a. Burgess, Chambers & Associates, Frank Wan, Investment Consultant i. Quarterly Report as of March 31, 2020 1. Frank Wan reviewed the market environment for the last quarter and commented the although the last quarter was extremely volatile the plan assets had grown $12.3 million since last Thursday. Frank advised the Board historically each drop in the marker was typically up 20.0% one year later. ended negative, it was already on the upswing 2. The market value of the plan as of March 31, 2020, was $11,046,176. 3. The fund's total gross returns for the quarter were-11.1%, underperforming the benchmark's return of -9.2%. Trailing total fund gross returns for the 1, 3, and 5-year periods were -2.1 %, 3.9% and 3.5% respectively. 4. Frank Wan reviewed the fund's performance and the different asset classes and what the driving factors were. Frank discussed what potentially could happen if the workforce did not return to normal in the upcoming months when the Federal stimulus that went into companies started to run out and reviewed how this could impact the stock market. 5. Frank Wan commented they were watching the international market due to the principal of first in, first out of the pandemic. Frank commented that the real estate market had done very well and been able to collect 90.0% of their rents. 6. Bonni Jensen commented that American Core Realty had done a very good job in communicating with their plans and keeping them informed by providing them information. 7. Frank Wan commented that he spoke with Integrity Fixed Income today and even though end of March they were underperforming the benchmark, as of today, not only have they recovered, but they were now outperforming their benchmark. 8. Frank Wan commented that the market impressively recovered and was reacting to the optimistic future. 9. Bonni Jensen asked that since this was a closed plan and did not have a significant cash inflow, did Frank Wan have recommendations on future actions from the Board. Frank commented that this plan was not mature so there was time to help draw on the liquidity. This plan had stayed very balanced and this was not the time to change things. 10. Brenda DeWees asked Frank Wan if we were expecting to see a positive number for the end of the 2nd quarter. Frank commented that the fiscal year and the calendar year numbers should both drastically improve as long as nothing drastic happened from now until the end of the month. b. Klausner, Kaufman, Jensen and Levinson, Bonni Jensen, Plan Attorney i. Covid-19 memos 1. Bonni Jensen commented over the course of the past few months their office had sent out a lot of information to try to keep the Board as up-to-date as possible regarding Covid-19. Bonni stated the virtual meeting policy previously discussed covered the most pertinent information to the Board. ii. CARES and FFCRA Memos 1. Bonni Jensen commented most of the CARES Act would not affect this plan. Bonni commented that the early withdrawal IRS penalty of 10.0% had been waived if they were taking a corona virus distribution in case there were any plan members with a 457 account. iii. Financial Disclosure Forms 1. Bonni Jensen reminded the Board to make sure they filed their Form 1's by July 1st and recommended filing via email, if available, so they could get an immediate confirmation of receipt. Dilena Tally asked if this was the same form that she had to fill out when she first joined the Board and Bonni commented it was but she should verify if the Supervisor of Elections had her form on file and that she did not need to refile this year. Consent Agenda a. Ratification of Warrants 2 b. New invoices for payment approval i. Warrant #62 c. Fund Activity Report for March 02, 2020 through June 01, 2020 The Board voted to approve the consent agenda as presented, upon motion by Tim Sopko and second by Bridgette Vaissiere; motion carried 5-0. Staff Reports, Discussion, and Action a. Foster & Foster, Michelle Rodriguez, Plan Administrator i. Educational Opportunities 1. FPPTA 361h Annual Conference (formerly Fall Trustee School), October 4-7, 2020, Orlando, FL. a. Michelle Rodriguez commented this conference would replace the fall trustee school. 10. Trustee Reports, Discussion, and Action a. Bonni commented that the plan administrator sent the Ordinance to the City and it should be passed at the next City Council meeting. Bonni commented she would attend that meeting if necessary. 9. Adiournment — The meeting adjourned at 11:15am. 10. Next Meeting — September 23, 2020, at 10:30am. Respectfully submitted by: Approved by: �� Michelle Rodriguez', Plah'j4inistrator %Brenda DeWees, Chair Date Approved by the Pension Board: September 23, 2020