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Home My WebLink About01-16-2024 Agendain a CJEBASTIgjv HOME OF PELICAN ISLAND PUBLIC NOTICE — THE POLICE PENSION BOARD WILL HOLD THE REGULAR QUARTERLY MEETING ON TUESDAY, JANUARY 16, 2024 BEGINNING AT 5:00 P.M. THE PUBLIC CAN ACCESS THE MEETING VIRTUALLY VIA ZOOM BY FOLLOWING THE DIRECTIONS SHOWN AT THE BOTTOM OF THIS AGENDA. HOWEVER, THE PUBLIC IS ADVISED TO CHECK THE CITY WEBSITE FOR UP-TO-DATE INFORMATION ON ANY CHANGES TO THE MANNER IN WHICH THE MEETING WILL BE HELD AND THE LOCATION. AGENDA A. CALL TO ORDER AND ROLL CALL B. VOTE TO EXCUSE ABSENT BOARD MEMBER(S) C. APPROVAL OF MINUTES: 1. December 14, 2024 Regular Quarterly Meeting D. OLD BUSINESS: 1. Approval of Payments Made: a. Polen Capital — July to September $ 3,070.20 b. Genter Capital Management — July to September $ 693.00 c. Klausner, Kaufinann, Jensen & Levinson — August to October $ 2,802.50 d. City of Sebastian — for Janet Graham December Meeting $ 145.00 2. Approval of Proposed Actuarial Studies a. $3,000 Quote from Foster & Foster b. Letter Stating City Staff s Opposition c. Initial Memo from Deputy Mathew Radock 3. Approval of Agreement with Foster & Foster for Plan Administrator Services Chairperson Chairperson Chairperson Ken Killgore, Plan Administrator Ken Killgore, Plan Administrator Ken Killgore, Plan Administrator E. NEW BUSINESS: 1. Clarification of a Second Andrea Ring Letter Addressed to City Officials Chairperson 2. Presentation by Senior Relationship Manager, Polen Capital John Gunther 3. Report from Investment Monitor and Results of the Manager Search Morgan Stanley F. LEGAL UPDATES: Klausner, Kaufman, Jensen & Levinson Sean M. Sendra for Bonni Jensen 1. Update on State Legislation 2. Electronic Financial Disclosure Management System for Financial Interest Filing 3. IRS Mileage Rate for 2024 4. Other Legal Matters G. PLAN ADMINISTRATOR REPORTS Ken Killgore, Plan Administrator 1. Budget vs. Actuals Report/Calendar of Board Activities/Other Administrative Matters _. Status of H. NEXT SCHEDULED QUARTERLY MEETINGS: 1. April 16, 2024 - July 16, 2024 - October 15, 2024 Ken Killgore, Plan Administrator ADJOURN Please note: In accordance with Florida Statue 286.0105: any person who desires to appeal any decision at this meeting will need a record of the proceedings and for this purpose may need to ensure that a verbatim record of the proceedings is made which includes the testimony and evidence upon which the appeal is based. In accordance with Florida Statute 286.26: Persons with disabilities needing assistance to participate in any of these proceedings should contact the Administrative Services Department at least 48 hours prior to the meeting at '�&-illgoreCciiyofsebastiati. org or telephone 772-388-8205. ZOOM INSTRUCTIONS: Click on this link https:/; us02web.zoom.usii/83173704221 Or One tap mobile: +13052241968, 83173704221# US or+19294362866, 83173704221# US (New York) Or Telephone: Dial (for higher quality, dial a number based on your current location): +1 305 224 1968 US or +1 669 900 6833 US (San Jose) or +1 301 715 8592 US (Washington DC) or +1 309 205 3325 US or +1 646 9313860 US or +1 312 626 6799 US (Chicago)+1 689 278 1000 US or +1929 436 2866 US (New York) or +1 253 205 0468 US or +1 253 215 8782 US (Tacoma) or +1346 248 7799 US (Houston) or +1 360 209 5623 US or +1 386 347 5053 US or +1 507 473 4847 US or +1 564 217 2000 US or +1 669 444 9171 US Webinar ID: 8317370 4221 International numbers available: https:/IusO2web.zoom.us/u/kdsOWHW3nc CITY OF SEBASTIAN POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 Call To Order -- Chairman Wood called the meeting to order at 5:00 p.m. II. Roll Call Present: Board Members: Mr. Puscher Ms. Ring Mr. Reeves Detective McDonough Chairman Wood Also Present: Bonni Jensen, Klausner, Kaufman, Jensen & Levinson, Attorney for the Board Of Trustees (Zoom) Ken Killgore, Plan Administrator Cynthia Watson, Human Resources Director Joseph Perez, AV Technical Assistant Janet Graham, Technical Assistant Doug Lozen, Foster & Foster Corporal Matthew Radock, IUPA Union Representative T.J. Loew, Graystone Consulting Steve Stack, Highland Capital Ill. A. Vote to Excuse Absent Members -- None B. Public Input -- None C. Approval of Minutes 1. September 14, 2023 Regular Quarterly Meeting Chairman Wood called attention to the misspelling of Mr. Puscher's name as follows: On Page C-3 in the last paragraph, on Page C-4 in the second paragraph, on Page C-4 in the fifth paragraph, and on Page C-5 in the second paragraph. Chairman Wood then called for a motion to approve the Minutes with the listed corrections. A motion was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. IV. Old Business A. Approval of Pavments -- Ken Killgore, Plan Administrator c--I-/ POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 i. Highland Capital -- July to September -- Value and ADR ii. Highland Capital -- July to September -- Fixed Income iii. Boston Partners -- July to September iv. Fiera Capital -- July to September V. ClearBridge Investments -- July to September vi. Polen Capital -- July to September vii. Genter Capital Management -- July to September viii. Graystone Consulting -- July to September ix. Klausner, Kaufmann, Jensen & Levinson —August to Oct. X. City of Sebastian - Administrative Services —Oct. to Dec. xi. City of Sebastian - Travelers Liability Policy Reimbursement xii. Salem Trust -- July to September PAGE 2 $5,482.21 1,392.67 5,961.62 3,105.70 2,914.02 2,681.46 574.00 4,000.00 4,922.50 6,000.00 3,221.52 7,961.00 Mr. Killgore reviewed these payments, and Chairman Wood asked for a motion of approval. A motion to approve the payments as listed above was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. V. New Business Consideration of Request for Proposal to Provide Administrative Services Mr. Killgore stated that due to his pending retirement, he reached out to Foster & Foster as far as a consultant to handle all the administrative functions for the Board. They would basically prepare the agendas and all requests from employees, etc. --everything that Mr. Killgore has been handling. He added that it has gotten to be too much for him to handle. He stated that the Board does pay to the City's General Fund $24,000.00 a year. He stated the proposal is approximately $26,000.00. The advantage would be that the Board would have a specialist who could do what Mr. Killgore has been doing among his other responsibilities. Mr. Puscher stated that he would highly recommend Foster & Foster taking over these responsibilities. He added that he will be sad to see Mr. Killgore leave. A motion to go forward with Foster & Foster taking over the responsibilities of Plan Administrator was made by Chairman Wood, seconded by Detective McDonough. Vote was 4 in favor and 1 opposed. Motion carries. Mr. Puscher asked when they would be starting. Mr. Killgore stated that it would be as c- / - �- D POLICE PENSION BOARD MINUTESOF REGULAR MEETING DECEMBER 14, 2023 PAGE 3 quickly as possible. He does not have a definite date. Mr. Puscher praised Foster & Foster highly. Mr. Lozen said the administrative team will do whatever is necessary to work with Mr. Killgore to get it up and running very quickly. Chairman Wood said that, since the Board has used Foster & Foster for some time, he is comfortable going forward with them. Ms. Jensen stated that one of the other advantages is having a local person who lives in Fort Pierce and would be the lead administrator on the plan. Mr. Killgore added that Foster & Foster have always been very responsive. Chairman Wood thanked Mr. Killgore for his time and hard work. Mr. Killgore said there is a meeting scheduled in January, and he may be coming back for that. ii. Presentation of October 1st Annual Evaluation Report Mr. Lozen reviewed the Annual Evaluation Report in detail, for which copies were provided to all of the Board members. He explained the changes from last year that were contained in the report. He suggested waiting one more year before the Experience Study is updated. A motion accepting the Annual Evaluation Report was made by Mr. Puscher, seconded by Chairman Wood, and approved unanimously via voice vote. Ms. Jensen stated that the Board has just approved an Actuarial Evaluation which has a 7.1 % assumption rate of return. The Board is charged with the responsibility to determine an expected rate of return, and every year the Board needs to determine it over the short term, the mid-term, and the long term thereafter. iii. Flexibility of Provision for 25 Years of Service With No Age Limit There was a question as to when an officer can join the union. Mr. Lozen stated that in order to join the union a person must be a sworn law -enforcement officer. Ms. Jensen verified that. POLICE PENSION BOARD PAGE 4 MINUTES OF REGULAR MEETING DECEMBER 14, 2023 Corporal Matthew Radock identified himself as a representative for the local IUPA Union. He stated that a lot of agencies are changing the pension from 30 years to 25 years. He asked what the process is in changing that. He added that presently Sebastian's is 33- 1/2 years at 100%, 25 years at 75%, 20 years at 60%. They are trying to get those numbers down to 25 years at 100%, 20 years at 75%, at a minimum age of 52. Mr. Puscher suggested that the process would be an ordinance change by Ms. Jensen. Ms. Jensen stated that any changes in benefits are subject to collective bargaining. They are a mandatory subjective collective bargaining requirement, which means that either party can bring them to the table. If you are interested in amending the plan, you should start with the collective bargaining process and get a collective bargaining agreement, which includes whatever changes you are interested in. You could approach the City and the Union could approach the Board when you have something that you are interested in implementing to find out what the cost is. Corporal Radock said that he did speak to the Union, and they told him that the first step is coming here and speaking to the Board. They said that they do not get involved with the pension because it is a City ordinance. Ms. Jensen stated that the Pension Board cannot create benefits. It is the province of the City and the Union to decide what the pension benefits are through a collective bargaining process. She stated that the actuary for the pension plan would do the math and the calculations on how much needs to be put into the plan to pay for the benefits. He would be able to give what's called a cost impact of those benefit changes. Corporal Radock asked if he could approach the actuary himself. Ms. Jensen said the Pension Board would have to give him permission to speak to the actuary. There was a general discussion as to the amount the actuary would charge to do this work. Mr. Lozen explained what the process would be. Ms. Jensen also explained the process from her perspective. A motion allowing the Union representative to communicate with Mr. Lozen, the actuary, to arrive at the terms for negotiations of a retirement package was made by Mr. Puscher, seconded by Mr. Reeves, and approved unanimously via voice vote. Mr. Killgore recommended that this subject be addressed at the Board's next meeting in January of 2024. iv. Report from Investment Monitor. T.J. Loew introduced himself and reviewed the Investment Monitor's report. He described how the market has fluctuated over the last year. He also reviewed the benchmarks. DR,tvFT POLICE PENSION BOARD MINUTES OF REGULAR MEETING DECEMBER 14, 2023 I'J[CI:V There was general discussion regarding Polen, and Mr. Loew said that at the next meeting he will bring a search and have a discussion regarding this. He added that at the next meeting most of our time will be spent going through the Polen information. V. Update from Investment Manager Highland Capital Steve Stack introduced himself and reviewed that Highland Capital manages several different asset classes for the Pension Fund. He reviewed the report and explained several of the sections. VI. Leqal Updates Ms. Jensen reminded the Board that its comprehensive report is due on Friday, December 15th. She did receive the information from the State on the rules. They were light on direction. Her firm got with the other law firms who represent public sector pension plans across the state, and they designed a report that basically is a cover page to the Board's investment policy guidelines which were updated at the last meeting. They added that they had let their managers know that when voting proxies, they have to take into consideration the provisions per the Florida statute. Ms. Jensen stated that Mr. Killgore should have received some documentation about filing and getting registered to be an authorized user. He can use that portal then to file the report. Mr. Killgore stated he did file the report the day before yesterday. Ms. Jensen added that her firm was contacted by a family member on behalf of Ireland Grimmich, and she filled out all the paperwork that she needed to fill out. She still has not heard from Courtney for her son Jack. Mr. Killgore said he did file paperwork with Salem Trust to make the payment on the one that he had all the information on. VII. Plan Administrator Reports A. Budget vs. Actuals Report/Calendar of Board Activities/Other Administrative Matters Mr. Killgore reviewed that for the first quarter, the spending is hard to judge as to what it will be for the year. So far, it looks like everything is in line. He added that he has also provided the Board with the calendar of activities. This needs to be updated, but he did DFif0.f-T POLICE PENSION BOARD PAGE 6 MINUTES OF REGULAR MEETING DECEMBER 14, 2023 comply with everything that is normally scheduled for this time of the year and addressed the expected rate of return. VIII. Next Scheduled Quarterly Meetinqs: A. January 16, 2024 — April 16, 2024 — July 16, 2024 — October 15, 2024 IX. Adiournment There being no further business, the meeting was adjourned by Chairman Wood at 6:21 p.m. Date: a C-l'4 enneth Killgore REMITTANCE COPY NA January 4, 2024 STATEMENT OF MANAGEMENT FEES Quarterly Fee calculated for assets under management as of December 31, 2023 for the billing period from October 1, 2023 to December 31, 2023. Custodian Account Number: 0740007216 Account Number: CITY0162 Account Name: CITY OF SEBASTIAN POLICE OFFICERS RETIREMENT SYSTEM Management Fee Calculation Detail Breakpoints Annual Rate (%) Account Assets Fee Total Portfolio: Balance 0.650 $1,873,949 $3,070.20 Please remit the total fee amount to Polen Capital at the address indicated below. Payment for this invoice can be sent via mail or wire: By Mail Overnight Address By Wire Truist Bank Check payable to: Lockbox Department 1000 Peachtree St., N.E., Atlanta, GA Polen Capital Management Attn: Polen Capital Management LLC #919766 ABA: 061 000 104 P.O. Box 919766 7699 Golf Channel Drive Account Name: Polen Capital Management Orlando, FL 32891-9766 Orlando, FL 32819 LLC Account #: 1000214295S77 SEC RULE 204.3 REQUIRES US TO OFFER IN WRITING TO DELIVER TO YOU UPON REQUEST A WRITTEN DISCLOSURE STATEMENT CONTAINING INFORMATION CONCERNING OUR BACKGROUND AND BUSINESS PRACTICES. Keep a copy of this invoice for tax purposes pclencop tal.ccm Boca Raton I Boston I London 1825 N`J`! Coraoratc Blvd., Suite 300 - Boca Roton, FL 33431 Te'.ophone: +'1 (561)-241-24L5 0CAPITAL January 5, 2024 City of Sebastian Police Officers Retirement Cust: Salem Trust/TMI/Reliance System Acct: 0740007885 Salem/TMI/Reliance Trust Code: RISAL SEB07885 Graystone Consulting ID: 52099 MANAGEMENT FEE: City of Sebastian Police Officers Retirement Sys 12/31/2023 Portfolio Value (including accrued interest): Annual Fee Based On: $ 2,773,227 @ 0.10%o per annum Quarterly Fee: For the Period 10/1/2023 through 12/31/2023 Please remit directly to: Genter Capital Management $ 2,773.00 Paid by Debit Direct Please Remit 11601 Wilshire Boulevard, Penthouse Floor, Los Angeles, CA 90025 $ 2,773,227.42 $ 693.00 ($ 0.00) $ 693.00 371 � 7,-1 v D-16 lausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.kiausnerkaufman.com Fax (954) 916-1232 Tax I.D.: 454083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM December 31, 2023 Attn: KEN KILLGORE Bill # 34211 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM 170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM 170042 Professional Fees Date Attorney Description Hours Amount 12/01/23 BSJ PREPARE FOR AND PARTICIPATE IN 0.50 212.50 CONFERENCE CALL WITH GRAYSTONE REPRESENTATIVES - TOM GEDMINAS, TIM HAUGAARD, AND JUSTIN DICKINSON REGARDING CHAPTER 2023-28 12/05/23 PARA COMMUNICATION WITH KRISTINE 0.20 25.00 REMLING SETTING UP A PHONE CONFERENCE WITH ATTORNEY MAGGIE REGARDING PLAN ADMINISTRATION. 12/06/23 BSJ PREPARE FOR AND PARTICIPATE IN 0.70 297.50 TELEPHONE CALL WITH MAGGIE MCCAIN ON BRANDES DOMESTIC RELATIONS ORDER; REVIEW DRAFT ORDER 12/07/23 BSJ REVIEW AND RESPOND TO EMAIL 0.40 170.00 FROM KRISTEN REMLING FROM MARGARET KEYS MCCAIN LAW OFFICE; EMAIL TO KEN KILLGORE REGARDING REQUEST FROM DIVORCE ATTORNEY FOR CALCULATION OF MARITAL PORTION Continued ... b- 1 ,:::� - I lient: Matter: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM December 31, 2023 170042 - SEBASTIAN POLICE OFFICERS' RETIREMENT Page 2 Date 12/13/23 12/14/23 12/14/23 12/15/23 Attorney BSJ BSJ PARA BSJ 12/18/23 BSJ 12/19/23 LG 12/21 /23 LG 12/29/23 BTG Professional Fees Description PREPARE FOR MEETING; REVIEW AGENDA AND MEETING BACK UP, INCLUDING 2 SETS OF MINUTES; REVIEW FILES REGARDING STATUS OF GRIMMICH MATTER; EMAIL TO COURTNEY HOWARD ATTEND MEETING PREPARATION OF MEETING MATERIALS FOR UPCOMING MEETING. EMAIL FROM KRISTEN REMLING REGARDING COST TO HAVE BENEFIT FOR M. BRANDES CALCLATED FOR DOMESTIC RELATIONS MATTER REVIEW EMAIL FROM KEN KILLGORE PROVIDING LETTER FROM ANDREA RING; TELEPHONE CALL WITH KEN KILLGORE REVIEW SALEM TRUST CUSTODIAL AGREEMENT DRAFT SALEM TRUST ASSIGNMENT/ASSUMPTION REVIEW IRS PUBLICATION RE SECURE ACT COMPLIANCE Total for Services CURRENT BILL TOTAL AMOUNT DUE Past Due Balance AMOUNT DUE Hours Amount 1.00 425.00 1.50 637.50 1.00 125.00 0.30 127.50 0.40 170.00 0.20 85.00 0.50 212.50 0.20 85.00 6.90 $2,572.50 $ 2,572.50 230.00 $2,802.50 //o/av A� lb -lc - �L ausner, Kaufman, Jensen & Levinson A Partnership of Professional Associations Attorneys At Law 7080 N.W. 4th Street Plantation, Florida 33317 Tel. (954) 916-1202 www.klausnerkaufinan.com Fax (954) 916-1232 Tax I.D.: 45-4083636 SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM November 30, 2023 Attn: KEN KILLGORE Bill # 34006 1225 MAIN STREET SEBASTIAN, FL 32958 CLIENT: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 MATTER: SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM :170042 Professional Fees Date Attorney Description Hours Amount 11/06/23 PARA DRAFT ASSIGNMENT AND 1.50 187.50 ASSUMPTION CONTRACT DOCUMENT (SALEM TRUST) 11/17/23 BSJ TELEPHONE CALL WITH SCOTT 0.10 42.50 OWENS REGARDING CHAPTER 2023-28 Total for Services 1.60 $230.00 CURRENT BILL TOTAL AMOUNT DUE $ 230.00 JANET M. GRAHAM 97 OVERLOOK DRIVE SEBASTIAN, FL 32976 INVOICE FOR POLICE PENSION BOARD 12-14-2023 Police Pension Board 6 pages Appearance Fee Total $120.00 25.00 $145.00 Kenneth Killvore From: Douglas Lozen <Doug.Lozen@foster-foster.com> Sent: Sunday, January 07, 2024 1:12 PM To: Kenneth Killgore Cc: Siera Feketa; Matthew Radock Subject: Sebastian Police Pension Attachments: Sebastian_Police_Actuarial_Study_Quote.pdf CAUTION: This email originated from OUTSIDE our email system. PLEASE exercise cautlo! - when opening A Y attachments or clicking on links. ESPECIALLY frorn unknown senders. Hi Ken, As requested at the December Board meeting, attached is a description and quote for study items requested by the Union. Please let me know when this is approved and we will begin work on the analysis. Sincerely, Douglas H. Lozen, EA, MAAA Senior Consulting Actuary FOSTER& FOSTE' 13420 Parker Commons Blvd Suite 104 Fort Myers, FL 33912 239.433.5500 Phone 239.481.0634 Fax www.foster-foster.com CONFIDENTIALITY AND HIPAA NOTICE: This email, including any attachments, contains information from Foster and Foster, which may be confidential or prohibited from any disclosure under the HIPAA Privacy Rule or related laws, federal or state. The information is intended to be for the use of the individual or entity named above. Ifyou are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. Ifyou have received this email in error, please notify the sender immediately by "reply to sender only " message and destroy all electronic and hard copies of the communication, including attachments. 0 FOSTER & FOSTER January 4, 2024 VIA ELECTRONIC MAIL Board of Trustees City of Sebastian Police Officers' Pension Board Re: Actuarial Analysis Fee Quote Dear Board: As requested at the prior meeting, this letter provides a fee quote for the following study items requested by the Plan Membership for upcoming negotiations: A) A reduction in the Member Contribution Rate from 8.0% to 3.0%. B) A Normal Retirement eligibility based on the completion of 25 years of Credited Service, regardless of age. C) A prospective benefit accrual rate of 3.27%. D) A 3.27% benefit accrual rate, retroactively applied to the date of plan entry. E) A 25 and out Normal Retirement Date eligibility, combined with a prospective benefit accrual rate of 3.40%. F) A 25 and out Normal Retirement Date eligibility, combined with a 3.40% benefit accrual rate retroactively applied to the date of plan entry. Our billing for the above actuarial analysis and letter report is $3,000. We will be happy providing quotes for additional study items as needed during the negotiation process. Sincerely, s 6ougl( H. t {)zen; EA, MAAA Senior C(nisulting Actuary 13420 Parkers Common Blvd., Suite 104•Ft. Myers, FL 33912 •(239) 433-5500 Fax (239) 481-0634 • www.foster-^^��foster.com ® a)- CL, — MYYOF 9 N HOME OF PELICAN ISLAND January 10, 2024 Members of the Police Pension Board 1225 Main Street City of Sebastian Florida 32958 Subject: Union Request for Actuarial Studies As you know, a motion was approved at the December 14, 2023 to allow the Union Representative to communicate with the Actuary "to arrive at the terms for negotiations of a retirement package". This was presented by Corporal Matthew Radock on behalf the Union as a consideration of the feasibility of providing a benefit for retirement at 25 years of service with no age limit. Apparently, their discussion led to a fee quote for much more than that, as the Actuary proposed a fee to include options that also substantially reduce the Member Contribution Rate and substantially increase the benefit accrual rate. Note that the Pension Board Attorney did point out at the meeting that "It is the province of the City and the Union to decide what the pension benefits are through a collective bargaining process". It is the City Staff s position that this study should not be paid from Pension Trust Funds. Potential changes to pension benefits should be considered at the bargaining table. Sincerely, Ken Killgore Finance Director City of Sebastian Kenneth Killgore From: Kenneth Killgore Sent: Thursday, November 30, 2023 2:21 PM To: Matthew Radock Cc: Kenneth McDonough; Timothy Wood Subject: RE: December pension meeting Okay, I will list it on the agenda for the meeting. Ken Killgore Finance Director City of Sebastian From: Matthew Radock Sent: Wednesday, November 29, 2023 8:46 PM To: Kenneth Killgore Cc: Kenneth McDonough; Timothy Wood Subject: December pension meeting Ken Good evening, I was speaking with Ken Mcdonough today in reference to the December pension meeting.) would like to attend so I can try and get information on possibly changing our retirement to 25 years and at no age limit. This is something IUPA is looking into but we are seeking guidance from the pension board to see if it is feasible. I look forward to the meeting and if you have any further questions please reach out. Thank you, Cpl. Matthew Radock #413 1 Ib X ADMINISTRATIVE SERVICES AGREEMENT BETWEEN CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM AND FOSTER & FOSTER This Agreement made as of this day of , 2024, by and between the City of Sebastian Police Officers' Retirement System (hereinafter referred to as "Pension Fund' and Foster & Foster, a Florida Corporation (hereinafter referred to as `Administrator"). WITN ESSETH : WHEREAS, the Pension Plan Ordinance authorizes the Pension Fund's Board of Trustees (the "Board') to engage the services of an administrator to administer the Pension Fund's operations; and WHEREAS, the Administrator is engaged in the business of rendering administrative management services to employee benefit plans; and WHEREAS, the Pension Fund is familiar with the experience and reputation of the Administrator in rendering these services; and WHEREAS, the Pension Fund has determined that it is in the best interest of the members and beneficiaries of the Pension Fund to engage the services of the Administrator upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties agree as follows: Page 1 of 7 �--3_1 Section 1 Administrator A. Engagement - The Pension Fund hereby engages and retains the Administrator who hereby accepts the engagement and retainer. B. Duties and Responsibilities - Without limiting the generality of the foregoing, it is mutually acknowledged and agreed that the Administrator is engaged to perform those duties and responsibilities of the Pension Fund as Administrator which are delegated to it in accordance with the express terms of this Agreement. C. Limitation of Authority - The Administrator shall not: 1. Exercise any discretionary authority or discretionary control respecting the management of administration of the Pension Fund; or 2. Exercise any independent authority or control with respect to the management or disposition of the assets of the Pension Fund; or 3. Render investment advice with respect to any monies or property of the Pension Fund. Section 2 Duration This Agreement shall become effective on the 15"' day of January 2024, and shall continue until otherwise terminated in accordance with the terms of this Agreement. Section 3 Fees A. Basic Fee - In consideration of the administrative services to be performed as agreed above, the Pension Fund agrees to pay the Administrator an all inclusive fee as provided in Exhibit A of this Agreement. B. Expenses - All extraordinary expenses such as printing charges, postage for mass mailings, special projects assigned by the board shall not be included in the Basic Fee. The cost for expenses and work outside of Exhibit B list of Page 2 of 7 3 duties will be billed at the hourly rate of Two Hundred dollars ($200.00), and special travel time will be billed at an hourly rate of One Hundred dollars ($100.00). The Administrator will provide a firm fee quotation prior to commencing any work. Section 4 Services The Administrator shall be responsible for and in charge of all administrative services required of it by the Pension Fund for the proper and complete administration of the Pension Fund. Without limiting the generality of the foregoing, the Administrator shall perform the specific services listed in Exhibit B of this Agreement. Section 5 Obligations of Administrator It is mutually covenanted and agreed that all services rendered by the Administrator to or on behalf of the Pension Fund shall be performed with reasonable dispatch and shall be performed in a manner which is adequate and convenient to the Pension Fund and the members and beneficiaries of the Pension Fund. The Administrator shall familiarize itself with the basic documents under which the Pension Fund is established and render all services in accordance with said documents. The Administrator shall perform all obligations under this Agreement in accordance with the provisions of and pursuant to Florida Statutes, Section 112.656(2). By execution of this Agreement, the Administrator acknowledges that it is a fiduciary of the Pension Fund within the meaning of the Employee Retirement Income Security Act of 1974 (ERISA) and §112.656, Florida Statutes. Section 6 Records A. The Pension Fund will turn over to the Administrator true copies of all records, reports, information and other data pertaining to this Pension Fund. The Administrator may rely upon the completeness and accuracy of the records, reports, and data delivered to it. B. In the course of performing its administrative services hereunder, the Administrator shall notify the Pension Fund of any information, records or reports which are necessary to maintain the business of the Pension Fund and shall assist the Pension Fund in obtaining said information. Page 3 of 7 D--3'-3 Section 7 Reports The Administrator shall work with and assist the Pension Fund and their professional advisors in the preparation of records and reports to be filed with government departments or agencies or which are necessary to be disclosed and distributed to members and beneficiaries. Section 8 Disclosure of Records All information, including records and other data, which may come into the possession of the Administrator shall be subject to disclosure and production to the extent required by the Public Records Act, Chapter 119, Florida Statutes, or upon compulsion of a subpoena issued by a court of competent jurisdiction, as approved by the Pension Fund. To the extent required by the East Niceville Fire District or other legal authority, the Administrator will assist the Board in complying with any applicable ADA requirements. Foster & Foster will comply with public records laws, specifically to: 1. Keep and maintain public records required by the Board to perform the service. 2. Upon request from the Board or its public records custodian, provide the Board with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law. 3. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if Foster & Foster does not transfer the records to the public agency. 4. Upon completion of the contract, transfer, at no cost, to the Board all public records in possession of Foster & Foster or keep and maintain public records required by the Board to perform the service. If Foster & Foster transfers all public records to Board upon completion of the contract, Foster & Foster shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If Foster & Foster keeps and maintains public records upon completion of the contract, Foster & Foster shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the Board, upon request Page 4of7 D -3-� from the Board or its public records custodian, in a format compatible with the information technology systems of the Board. IF FOSTER & FOSTER HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO ITS DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS: JEANETTE WILLIAMS, MMC CITY CLERK 1225 MAIN STREET SEBASTIAN, FLORIDA 32958 TELEPHONE: (772) 388-8215 ] WILLIAMS@CITYOFSEBASTIAN.ORG Section 9 Excluded Items It is understood and agreed by the parties that the Administrator shall not be responsible for the performance of auditing, legal or financial advisory services. Section 10 Fidelity Bond and Insurance The Administrator agrees to maintain appropriate professional liability insurance, a fidelity bond, coverage for errors and omissions, and cyber security liability insurance during the term of this Agreement. The Administrator shall provide copies of the proof of said bond and insurance coverage to the Pension Fund as Exhibits to this Agreement. Section 11 Damages The Administrator agrees it shall be liable to the Pension Fund for any damages or losses, which the Pension Fund or the fund may occur as the result of negligent or intentional acts or omissions of the Administrator or breach of this Agreement. Page 5 of 7 d -- Section 12 Governing Law This Agreement has since been executed in the City of Sebastian, Florida, and shall be governed and construed in accordance with the laws of the State of Florida. Venue for any dispute shall be in Indian River County, Florida. In the event that any action shall be necessary for the enforcement of this Agreement, the prevailing party shall recover its court costs, including reasonable attorney's fees. Section 13 Entire Agreement This Agreement, including the services detailed in the proposal to the Pension Fund dated December 1, 2023, constitutes the entire understanding and agreement by the parties hereto and shall not be modified, amended or revoked except by the express written consent of the parties. Section 14 Termination This Agreement may be terminated by the Pension Fund on thirty (30) days' written notice, or by the Administrator on ninety (90) days written notice, with or without cause. In the event of a termination, the Administrator agrees to promptly (not to exceed 30 days) turn over to the successor administrator or such other party designated by the Pension Fund, all physical records, reports, documents, data, and electronic records belonging to the Pension Fund per Chapter 119.0701 Florida Statutes. The Administrator shall destroy or erase any duplicate copies of exempt or confidential records upon termination as required by Chapter 119.0701 (2)(b)(4) Florida Statutes. Section 15 Public Entity Crimes Bill Section 287.133, Florida Statutes, provides that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, Florida Statutes, for CATEGORY TWO for a period of 36 months from the date of being placed on the convicted vendor list. Page 6of7 b Section 16 E-Verify Pursuant to Section 448.095, Florida Statutes, Monitor agrees to register with and use the E-Verify system to verify the work authorization status of all employees hired on and after January 1, 2021. Additionally, the Monitor agrees to require any subcontractor to provide them with an affidavit stating that the subcontractor does not employ, contract with, or subcontract with an unauthorized alien. Section 17 Electronic Delivery This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by facsimile, including, without limitation, by facsimile transmission or by electronic delivery in portable document format (".pdi) or tagged image file format (".tif `�, shall be equally effective as delivery of a manually executed counterpart thereof. IN WITNESS WHEREOF, the parties who caused this Agreement to be executed on the date set forth. DATED at this _day of , 2024. CITY OF SEBASTIAN POLICE OFFICERS' RETIREMENT SYSTEM By: Chairperson By: Secretary FOSTER & FOSTER By: Managing Partner Print Name: Page 7 of 7 EX HIBIT A An annual retainer fee of $26,400, payable in monthly installments of $2,200 Four (4) board meetings are included in the above fees; only out-of-pocket travel expenses will be reimbursed. All travel fees are split amongst clients visited during a single trip. Our firm does not charge processing or copy fees. The cost for work outlined in Section B of this proposal will be based upon the amount of time required and/or the cost of materials to complete each task. The hourly rate will be $200 and special travel time will be billed at an hourly rate of $100. We will provide a firm fee quotation prior to commencing any work at the Board's request. The annual retainer fee and hourly rates shall be adjusted annually based upon the Consumer Price Index for All Urban Customers (CPI-U) percent change for the preceding twelve (12) month period • r ,nth ., . , • , -. _ .'... _ ,. „ ;tober 1 �`. The first adjustment EXNlalrs A. Annual ongoing services are set forth below, performed under the supervision of the Board of Trustees. 1. Administration of meetings: a) Prepare and send meeting notices b) Schedule meetings c) Prepare agenda and agenda packets d) Prepare meeting minutes 2. Trustee organization a) Maintain board contact list of vendors and trustees b) Maintain pending matter list c) Run trustee elections d) Coordinate trustee appointments through the City e) Renew pension organizational dues and update trustee information 3. Review all statements and documents received fxom: a) Money Managers b) Performance Monitors c) Attorneys d) Actuaries e) Accountants f) Others 4. Retnew invoices and pay plan expenses as authorized. 5. Ensure that all plan payments are ratified by the Board. 8. Assist in the creation of board policies. 7. Monitor disbursement of benefit payments. 8. Obtain necessary information for retirement eligibility and benefits. 9. Set up and maintain files. 10. Respond to public record requests. 11. Assist members in the retirement process. 12. Maintain current beneficiary designations. 13. Obtain quotes for fiduciary/cyber liability insurance. 9 14. Ensure compliance with the Government in the Sunshine Law and the Public Records Act. 15. Respond to inquiries from trustees, members (active, retired and terminated), money managers, and the custodian. 16. Maintain a liaison between the Board and the City. 17. Ensure the pension plan is administered in accordance with board policies and the Pension Ordinance. 18. Collect necessary data for the audit report. 19. Maintain a liaison with the City to obtain new employee data in a timely manner. 20. Maintain a liaison with the State of Florida, Division of Retirement. 21. Provide timely assistance to outside auditors for preparation of the annual financial statement. 22. Prepare the annual administrative budget. 23. Prepare the annual detailed accounting report of actual plan expenses. 24. File the House Bill 3 compliance report. B. Services requested of the plan administrator by the Trustees as special assignments, are set forth below. 1. Printing special or bulk mailings. 2. Additional on -site meetings outside four (4) quarterly board meetings. 3. Special projects assigned to the administrator by the Board. 10 D V -3- /,;1-- Dec 18, 2023 Sebastian City Hall 1225 Main Street, Sebastian, FL 32958 City Manager: Mr. Brian Benton City Attorney: Ms. Jennifer Cockcroft City Council: Mayor: Mr. Ed Dodd Vice Mayor: Mrs. Kelly Dixon Council members: Mr. Fred Jones Mr. Christopher Nunn Mr. Bob McPartian Complaint: Police Pension Board Thursday December 14, 2023 agenda item E1 under New Business: Considerations of Request for Proposal to Provide Administrative Services. First secretary Mr. Puscher announced the amount changed from $24,000 to $26,000. When asked to show documents to support the increase he replied "because I said so". Discussion between Mr. Puscher, Detective McDonough and Captain Wood ensued with chair Captain Wood stating the amount is now $26,000. No motion was made and parliamentary procedure was not followed. When the motion came up for voting to use Foster and Foster as the administrative service in the amount of $26,0001 voted no. Mr. Puscher, Detective McDonough and Captain Wood all yelled at me and wanted me to change my vote. This harassment went on for quite awhile. All three of them telling me the finance director will not be able to retire because I voted no. Chair Captain Wood also told me I needed to change my vote to match his which is yes. I told him that is only if you are undecided and my vote is a firm no. Chair Captain Wood would not listen when I told him hiring Foster & Foster as the administrative service person was out of this board's authority and City Council will determine who fills the position. Chair Captain Wood was quite certain he had the authority to hire whoever he wanted because that position reports to the board. I was shaken by the harassment these 3 board members thought was ok to perpetrate during the board meeting. The disrespect shown by these board members has been constant. I would like these board members told to act civically in all future board meetings. Complaint is for: Secretary Mr. Puscher Detective McDonough Chair Captain Wood Thank you. Board member ember Andrea Ring 0?-7,A ie�Ry l� 407 Quarry Lane Sebastian FL 32958 (276) 920-1715 MEMORANDUM To: Boards of Trustees From: Klausner, Kaufman, Jensen & Levinson Subject: Electronic Financial Disclosure Management System for Form 1 filing Date: January 2024 Beginning January 1, 2024, the Form 1 — Statement of Financial Interests ("Form 1") will be filed via the Electronic Financial Disclosure liana ..,ement S . stem EFDMS . https://disclosure.floridaethics.gov/Account/Login The Form 1s are still due by July 1, 2024. Trustee Form is will no longer be filed with the County Supervisor of Elections office — the online portal is a direct filing with the Florida Commission on Ethics ("Commission"). Instructions, FAQs, and tutorials are available from the dashboard within EFDMS. Additional assistance can be obtained Monday -Friday from 8:00 a.m. until 5:00 p.m. by contacting the Commission at (850)488-7864. Please be advised that pension fund trustees are NOT subject to the new expanded requirement for Mayors and Elected members of governing bodies of municipalities to file the Form 6. Please contact us if you have any questions. 1�_— 01-- MEMORANDUM TO: Board of Trustees FROM: Bonni S. Jensen Fund Legal Counsel DATE: January 2024 SUBJECT: IRS Mileage Rate for 2024 This is to inform you that the Internal Revenue Service ("IRS") released its updated Standard Mileage Rate for 2024. The new rate is 67 cents per mile for miles driven on or after January 1, 2024. This is up 1.5 cents from the rate effective at the end of last year. As you know from previous years, the mileage rate can fluctuate within the same year. We will do our best to keep you and the administrator informed. You can find the current rate at the link below. https://www.irs.gov/newsroom/irs-issues-standard-m ileage-rates-for-2024- mileage-rate-increases-to-67-cents-a-mile-up 1-point-5-cents-from-2023 If you have any questions, please do not hesitate to contact us. BSJ/dze Enclosure E-Copy: Administrator 00250264.WPD;1 ® 3 Annual O oe rati ng_Expe nses Investment Managers: Highland Capital - Value and ADR Highland Capital - Fixed Income Boston Partners Fiera Capital (APEX) Renaissance (Terminated 12/28/22) Clearbridge (from January 2023) Center Coast (Brookfield) Terminated in 2021 Polen Capital (from March 18, 2021) Genter Capital (from 03/27/2023) Performance Manager - Graystone Salem Trust Company ADR Agent Fee - Foreign Dividends Sub -total Investment Expense Actuarial - Foster & Foster Compliance Disclosures - Foster & Foster State Report Preparation - Foster $ Foster Meetings/Calculations - Foster & Foster On -Line Portal - Foster $ Foster Legal Services Administrative Fee to City Insurance Minutes Preparation Codification of Approved Ordinance(s) Functional Capacity Assessments FPPTA Membership Travel Contingency Administrative Hearing on Grimmich Paul Daragjati, PLC (Representing Plan) Sub -total Administrative Expense Total Operating Expenses CITY OF SEBASTIAN, FLORIDA POLICE PENSION FUND - 2023/2024 BUDGET VERSUS ACTUALS Wednesday, January 10, 2024 Amended Actual/Estimated 2023/2024 Payments Total Previous Year's Annual Totals 2023/2024 10/1-12/31 1 1-3 31 4/1-6/3 7/1-9/3 2023/2024 2022/2023 2021/2022 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017 Budget Actual Actual Actual Actual Actual Actual Actual Actual $ 25,000 5,482.21 $ 5,482.21 $ 24,533.09 $ 26,685.34 $ 45,363.39 $ 52,688.82 $ 34,621.51 $ 67,754.39 $ 60,479.85 10,500 1,392.67 1,392.67 $ 10,146.87 $ 13,692.08 23,500 5,961.62 5,961.62 22,796.53 24,650.45 15,566.67 7,553.21 6,885.81 6,763.47 - 12,000 3,105.70 3,105.70 11,272.22 12,409.86 11,253.88 6,056.53 5,943.76 5,386.84 - - 4,338.33 9,955.71 9,189.76 6,489.11 6,874.16 6,451.11 12,000 2,914.02 2,914.02 5,828.86 - - - - 972.25 2,427.00 3,113.51 2,909.69 - 9,500 2,681.46 3,070.20 5,751.66 8,876.95 11,300.43 3,455.88 2,500 574.00 693.00 1,267.00 592.00 16,000 4,000.00 4,000.00 15,375.00 13,500.00 13,500.00 13,500.00 13,500.00 13,500.00 13,500.00 26,500 7,961.00 7,961.00 24,857.18 23,445.01 27,870.00 24,655.00 26,480.00 28,250.00 7,245.00 - - - 1,140.85 1,643.74 581.24 $ 137,500 $ 34,073 $ 3,763 $ $ $ 37,836 $128,617.03 $135,638.88 $127,171.83 $113,369.67 $ 98,559.60 $132,659.24 $ 81,806.09 10,500 10,073.00 9,608.00 14,990.00 17,464.00 16,756.00 17,834.00 13,331.00 7,600 7,600.00 6,750.00 3,500.00 7,500.00 - - - 3,300 3,300.00 3,000.00 3,000.00 3,000.00 3,000.00 1,500 1,462.50 1,853.24 3,500 2,500.00 20,000 4,922.50 2,802.50 7,725.00 27,247.17 22,446.25 15,542.50 19,565.00 39,362.45 25,138.80 29,011.01 24,000 6,000.00 6,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 24,000.00 3,000 3,221.52 3,221.52 2,991.00 2,991.00 2,991.00 2,585.00 2,585.00 2,585.00 3,021.05 600 145.00 145.00 599.00 522.00 522.00 636.00 694.00 1,042.00 - - - - 598.20 - 2,700.00 1,344.00 750 750.00 750.00 4,500 - 4,105.70 5,000 - - 2,655.00 - 6,780.00 $ 84,250 $ 14,144 $ 2,948 $ $ $ 17,092 $ 80,522.67 $ 76,026.19 $ 64,545.50 $ 74,750.00 $ 89,097.45 $ 72,542.00 45,363.06 $ 221,750 $ 48,217 $ 6,711 $ $ $ 54,927 $ 209,139.70 $ 221,665.07 $191,717.33 $188,219.67 $187,657.05 $ 205,201.24 127,169.15 CITY OF SEBASTIAN POLICE OFFICERS' PENSION PLAN CALENDAR OF BOARD ACTIVITIES — Updated January 2023 JANUARY: • 1A Quarter Board Meeting: • Update and Review Calendar of Activities. • Request update of Summary Plan Description (every two years). • Investment Report and Performance Review. • Receive Annual Report to Division of Retirement from Foster & Foster. FEBRUARY: No Board activity. MARCH: No Board activity but request City Council appointment of Citizen Representative (Paul Reeves Slot) APRIL: • 2°d Quarter Board Meeting: • Review Calendar of Board Activities. • Investment Report and Performance Review. • Select Board Chairperson and Secretary (every two years). • Approve and Distribute to Members the Summary Plan Description (if needed). MAY: No Board activity but request City Council appointment of Citizen Representative (Andrea Ring Slot) JUNE: No Board activity JULY: • Board Members should file Financial Disclosure forms by Julylst. • 3rd Quarter Board Meeting: • Establish Quarterly Meeting dates for following year. • Review Calendar of Board Activities • Approve Election Process for Police Officer Members (if needed). • Select Board appointed Member and request City Council confirmation (if needed). • Investment Report and Performance Review. AUGUST: • Receive State premium tax monies. SEPTEMBER: No Board activity. OCTOBER: • 4th Quarter Board Meeting: • Review Calendar of Board Activities. • Consider changes to Operating Rules (if needed). • Report on Actual Operating Expenses for the year. • Investment Report and Performance Review. • Update Investment Policy and Allocation Strategy (if needed). • Accept the Actuarial Report. • Approve Expected Rate of Return. • Confirm renewal of Liability Insurance Policy • Report on year-to-date expenses and approve budget for the next year. NOVEMBER: No Board activity. DECEMBER: No Board activity. r_ y