Volunteer Firefighter Relief Fund Committee

The meeting of the Volunteer Firefighter Relief Fund Committee (Committee) will seek to comply with the directive of Executive Order 7B-1 issued by Governor Ned Lamont on March 14, 2020, together with any Executive Orders subsequently issued which pertain to such meetings. To participate in the meeting Committee members, staff and the public will use the City’s Turbobridge account by dialing 860-215-8140 and when prompted enter the conference ID # 4038191, followed by the # sign. To: Members of the Volunteer Firefighter Relief Fund Committee From: Thomas Quinley, Chairman of the Volunteer Firefighters’ Relief Fund Subject: Special Meeting Meeting Date: Monday, August 17, 2020 Meeting Time: 2:00 p.m. Meeting Location: Turbobridge Conference Call Agenda Items: 1. Call to order 2. Roll call 3. Determination of quorum 4. Reports a. Review of March 31, 2020 and June 30, 2020 investment results by Art Meizner from Hooker & Holcombe Investment Advisors (to be distributed) b. Treasurer’s report for the quarters ending March 31, 2020 and June 30, 2020 (to be distributed) c. January 1, 2020 actuarial valuation report from Milliman (to be distributed) 5. Approval of minutes of preceding meeting a. Review of minutes from the Regular Meeting on February 18, 2020 (available on the website) 6. Communications 7. Unfinished business 8. New business a. Consideration of recommendations by Art Meizner for changes in investment portfolio, if any. b. Approval of bills i. Projected revenues, expenditures, and transfers for FY2020-21 (to be distributed). c. New members i. None at this time. d. New applications for benefits i. Yantic: Frank Manfredi – Benefits pending successfully completing his 16th year of credited service at the conclusion of 2020 and submission of DD-214 from U.S. Naval Service and buyback of four years of Military Service in order to qualify him for a 20 year Relief Fund Benefit payable as of January 2021. e. Refunds i. None at this time. f. Notification of deaths: i. Taftville: Joseph L. Caisse Sr. passed away May 26, 2020. He had starting collecting benefits in November 2002 and was collecting $230 per month prior to his death. He was not eligible for any survivorship benefits as he was not an active member when survivorship benefits were added to the plan in 2001. [Sec. 8-77(d)(i)]  g. Progress update regarding adoption of CT State Statute 19-36 based on 2019 and 2020 meetings with Mayor Nystrom & Council President Pro Tem Bettencourt for the benefit of the City of Norwich Volunteer Firefighters. The current Tax Abatement Ordinance requires revision in order to adopt and incorporate actions taken by the Connecticut General Assembly during the 2019 Session. h. Discussion regarding initiation and creation of a sub-committee to begin work on a review/revision of the current VFFRF Plan ordinance. i. Discussion regarding proposed external review of City and Town District fire services. (see attached Council resolution). 9. Adjournment Please notify Thomas Quinley (rehsq@snet.net) or Brigid Marks (bmarks@cityofnorwich.org) if you are unable to attend the meeting. Next scheduled regular meetings: • Monday, November 16, 2020 Next participants vested to receive benefits: • Yantic: Robert Ladd – July 2023 • Yantic: Gregory Stott – July 2023 • Taftville: Eric Benoit – November 2023 • EGP: Patrick Daley – November 2023 • EGP: William Guile – November 2023 City of Norwich Volunteer Firefighters' Relief Fund Treasurer's Report For The Quarter Ended 3/31/2020 X:\Finance\Finance Public\Accounting\Audit & Fiscal YE files\YE 2020\G. Investments\[G-3 2020 VFFRF cash & investments.xlsx]3Q Hooker & Checking Holcombe Total Beginning Balance 1,149.26 3,198,249.22 3,199,398.48 Receipts: Annual City Appropriation 182,734.50 - 182,734.50 East Great Plain 5,544.00 - 5,544.00 Laurel Hill 264.00 - 264.00 Occum 1,320.00 - 1,320.00 Taftville 1,584.00 - 1,584.00 Yantic 3,696.00 - 3,696.00 Interest Income 420.40 83.21 503.61 Realized Gains/(Losses) - (1,808.39) (1,808.39) Unrealized Gains/(Losses) - (520,526.84) (520,526.84) Dividends - 12,016.70 12,016.70 - Total Receipts 195,562.90 (510,235.32) (314,672.42) Transfers Between Accounts (4,000.00) 4,000.00 - Disbursements: Pension Payroll 88,272.66 - 88,272.66 Actuary Fees - - - Investment Management - - - Investment Consultant - 3,997.81 3,997.81 Investment Custodian - 512.33 512.33 Postage 1.20 - 1.20 Supplies - - - Refunds - - - Total Disbursements 88,273.86 4,510.14 92,784.00 Ending Balance 104,438.30 2,687,503.76 2,791,942.06 City of Norwich Volunteer Firefighters' Relief Fund Treasurer's Report For The Quarter Ended 6/30/2020 X:\Finance\Finance Public\Accounting\Audit & Fiscal YE files\YE 2020\G. Investments\[G-3 2020 VFFRF cash & investments.xlsx]4Q Hooker & Checking Holcombe Total Beginning Balance 104,438.30 2,687,503.76 2,791,942.06 Receipts: Annual City Appropriation - - - East Great Plain - - - Laurel Hill - - - Occum - - - Taftville - - - Yantic - - - Interest Income 170.64 20.10 190.74 Realized Gains/(Losses) - 10,624.50 10,624.50 Unrealized Gains/(Losses) - 391,934.70 391,934.70 Dividends - 12,430.68 12,430.68 - Total Receipts 170.64 415,009.98 415,180.62 Transfers Between Accounts (4,000.00) 4,000.00 - Disbursements: Pension Payroll 88,042.66 - 88,042.66 Actuary Fees 6,000.00 - 6,000.00 Investment Management - - - Investment Consultant - 3,359.38 3,359.38 Investment Custodian - 508.62 508.62 Postage - - - Supplies - - - Refunds - - - Total Disbursements 94,042.66 3,868.00 97,910.66 Ending Balance 6,566.28 3,102,645.74 3,109,212.02 Milliman Actuarial Valuation April 23, 2020 City of Norwich Volunteer Firefighters' Pension Plan Highlights of the January 1, 2020 Valuation Summary of Key Results Modified H&H Baseline Contribution Updated Lower 2018 2020 Calculation Mortality Interest Results Results Method Assumption Rate Contribution Calculation Method H&H method Milliman Milliman Milliman Base Mortality Table RPH-2014 RPH-2014 PUBS-2010 PUBS-2010 Mortality Improvement Scale MP-2017 MP-2017 MP Ultimate MP Ultimate Interest Rate 7.00% 7.00% 7.00% 6.75% Accrued Liability $6,210,023 $6,421,964 $6,421,964 $6,615,250 $6,802,589 Actuarial Value of Assets 2,771,076 3,199,400 3,199,400 3,199,400 3,199,398 Unfunded Accrued Liability 3,438,947 3,222,564 3,222,564 3,415,850 3,603,191 Funded Ratio 44.6% 49.8% 49.8% 48.4% 47.0% Oustanding Balance 2014 Base 2,921,763 2,786,958 2,786,958 2,786,958 2,786,958 2018 Base 517,184 N/A 491,069 491,069 491,069 2020 Base N/A 435,606 (55,463) 137,823 325,164 Amortization Period 2014 Base 21 19 19 19 19 2018 Base 20 N/A 18 18 18 2020 Base N/A 20 20 20 20 Amortization Growth Rate 0.00% 0.00% 2.75% 2.75% 2.75% Amortization Payment 2014 Base 252,006 252,006 206,132 206,132 202,391 2018 Base 45,625 0 37,664 37,664 37,013 2020 Base N/A 38,428 (3,966) 9,856 22,812 Total 297,631 290,434 239,830 253,652 262,216 Total Normal Cost 49,748 41,401 41,401 40,452 43,930 Expected Employee Contributions 14,256 13,464 13,464 13,464 13,464 Expected Expenses 6,000 7,500 7,500 7,500 7,500 Net Normal Cost 55,748 48,901 48,901 47,952 51,430 Interest Adjustment 12,090 11,676 20,211 21,112 21,171 Actuarially Determined Contribution for First FY 365,469 351,011 308,942 322,716 334,817 Interest Adjustment 0 0 21,626 22,590 22,600 Actuarially Determined Contribution for Second FY 365,469 351,011 330,568 345,306 357,417 Contribution Calculation Method H&H Milliman Amortization bases established after 2014 New 20 year base established with each valuation Prior bases maintained Amortization growth rate 0.00% 2.75% Interest adjustment for First FY 0.5 year interest on total 1 year of interest on total Interest adjustment for Second FY no interest adjustment 1 year of interest on total This work product was prepared solely for the City for the purposes described herein and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product.  City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes 145th Meeting February 18, 2020 The Volunteer Firefighters’ Relief Fund Committee held a regular meeting on Tuesday February 18, 2020 at 5:15 p.m. in Room 213, City Hall, Norwich, Connecticut. 1. Roll Call a. Members Present: Thomas Quinley, Yantic, Committee Chair (TQ) Brigid Marks, Human Resource Director, Committee Vice-Chair (BM) Joshua Pothier, Comptroller, Committee Treasurer (JP) Joseph Jackson (in place of Donald Leary), East Great Plain, Committee Secretary (JJ) John A. John, P&P Board Appointee (JAJ) Karen Mankowski, Occum (KM) Ronald Stoltz, Citizen Appointee (RS) Daniel Dennis, Citizen Appointee (DD) b. Members Absent: Richard Benoit, Taftville Past Chair Shane Dupuis, Taftville Joseph Kochanski, Laurel Hill John Salomone, City Manager c. Others Present: Art Meizner, guest, Hooker & Holcombe 1. Thomas Quinley called the meeting to order at 5:15 p.m. 2. Roll call taken 3. Quorum determined 4. Reports a. Art Meizner from Hooker & Holcombe Investment Advisors reviewed the investment results for the quarter ended December 31, 2019 investment results. Motion to approve Art Meizner’s report made by JP; seconded by KM. Approved. i. Page 2 – The overall US economy continues to have momentum ii. Page 3 – The US dollar weakened in 2019, which improved the returns for US investments in foreign markets, but US equities had the best returns in 2019 iii. Page 4 – US equities have consistently outperformed foreign equities since 2011 iv. Page 7 – there was some concern when the US Treasury interest yield curve was inverted in mid-2019 as inverted yield curves are often leading indicators of recessions. The yield curve returned to normal later in 2019. v. Page 12 – HHIA is evaluating the Russell Inv US Small Cap Equity S for possible future changes because it has been lagging the small cap benchmarks vi. Page 13 – If the US dollar strengthens, HHIA may also recommend reducing the fund’s foreign currency exposure. vii. Page 13 – The fund portfolio has outperformed benchmarks for the quarter and the past year. The portfolio increased 5.69% in the last quarter of 2019 and 21.31% for calendar year 2019. b. JP reviewed the Treasurer’s report for the quarter ended December 31, 2019. Motion to approve the Treasurer’s report made by JJ; seconded by DD. Approved. 5. Motion made by KM to approve the minutes from the Regular Meeting on November 19, 2019; seconded by DD. Approved 6. Communications a. None at this time. 7. Unfinished business a. None at this time  City of Norwich Volunteer Firefighters’ Relief Fund Committee Minutes 145th Meeting February 18, 2020 8. New business a. Consideration of recommendations by Art Meizner for changes in investment policy statement, investment portfolio, if any. b. Approval of bills i. None at this time c. Motion made by JJ to approve the following new members; seconded by DD. Approved i. East Great Plain 1. Kourtney Eddy 2. Dale Huntley 3. Kala Huntley 4. Kyle Wilson ii. Laurel Hill 1. Peter Clark 2. Krystal McCarthy 3. Megan McKeever iii. Occum 1. Marilu Barrientos iv. Taftville 1. Brandon Jencks v. Yantic 1. Christopher A. Feder-Craney d. New applications for benefits i. None at this time e. Refunds i. None at this time f. Notification of Death i. None at this time 9. Other business a. TQ noted that he had met with Mayor Nystrom and President Pro Tem Bettencourt regarding Public Act No. 19-36 – “An act increasing the property tax abatement for certain first responders.” The Mayor forwarded the proposed ordinance text as approved by the State Legislature to Corporation Counsel on Monday, January 13, 2020 for his review and action with a target of presenting the ordinance for a vote by June 2020. Corporation Counsel Michael Driscoll has been asked to draft an ordinance to phase-in increases in the property tax abatement beginning in fiscal year July 1, 2021-June 30, 2022. b. JP noted that Milliman has received all of the data to perform the 1/1/2020 actuarial valuation. Milliman is on target to complete the valuation before the Committee’s next regular meeting. 10. Motion made by RS to adjourn the meeting; seconded by DD. Approved. Meeting adjourned at 5:46 pm. Respectfully submitted, Joshua A. Pothier, Treasurer City of Norwich Updated as of: 4/23/2020 Volunteer Firefighters' Relief Fund Projected Revenues, Expenditures, and Transfers Fiscal Year 2020-21 July August September October November December January February March April TOTAL May June Beginning balance $ 6,575 $ 312,202 $ 283,216 $ 250,210 $ 221,183 $ 190,136 $ 161,069 $ 143,298 $ 111,616 $ 81,912 $ 52,189 6,575 $ 22,446 $ City Contribution 334,817 334,817 Volunteers' contributions 12,000 12,000 Interest Income 4 208 189 167 147 127 107 96 74 55 35 15 1,224 Pension payments (29,194) (29,194) (29,194) (29,194) (29,194) (29,194) (29,778) (29,778) (29,778) (29,778) (29,778) (29,778) (353,833) GASB 67/68 Actuarial Report (4,000) (4,000) Biennial Actuarial Valuation - - Refunds (2,000) (2,000) (4,000) Advertising/MuniCode Costs for Ordinance Change - Postage/tax forms (100) (100) Transfers to investment account - - - - - - Ending Balance $ 312,202 $ 283,216 $ 250,210 $ 221,183 $ 190,136 $ 161,069 $ 143,298 $ 111,616 $ 81,912 $ 52,189 $ 22,446 $ (7,317) $ (7,317) Notes and Assumptions: Transfers to HHIA will be done in the second weeks of September, December, March, and June. No transfers to HHIA during 2020-21 due to cash flows. The 1/1/2022 valuation will occur during FY2021-22. The GASB 67-68 report is for the annual audit. Refunds have been averaging about $4,000 per year. Assumed annual interest rate 0.80% The City's 2020-21 contribution is front-loaded in July to minimize the Actuarial Determined Contribution Likely Retirements Name Date Monthly Amount NONE DURING FISCAL YEAR 2020-21 THIS IS TO CERTIFY that the following is a true and attested copy of a resolution adopted by the Council of the City of Norwich at a meeting held on May 4, 2020, and that the same has not been amended or rescinded: WHEREAS, Connecticut General Statute § 7-148(c)(4) delegates certain traditionally public functions that fall within the state’s police powers to municipalities; and WHEREAS, Connecticut General Statute § 7-148(c)(4)(B) provides that all municipalities have the power to: “Provide for fire protection, organize, maintain and regulate the persons providing fire protection, provide the necessary apparatus for extinguishing fires and do all other things necessary or desirable for the protection of the municipality from fire” ; and WHEREAS, Chapter III, Section 1 of the Charter of the City of Norwich provides: “The City shall have the specific power to provide, organize, maintain and regulate a fire department, provide the necessary apparatus for extinguishing fires and do all other things necessary or desirable to protect the city from fire” ; and WHEREAS, Chapter X, Section 4 of the Charter of the City of Norwich provides: “The fire department shall be responsible for the protection of life and property within the city from fire and for the enforcement of all laws, ordinances and regulations relating to fire prevention and fire safety.” ; and WHEREAS, the Council of the City of Norwich recognizes that the safety of the community, including all its residents, and all fire personnel involved in providing responsible and necessary fire protection for the city, a benefit for all residents, businesses, structures and facilities located throughout the city, is of paramount importance to Norwich; and WHEREAS, a comprehensive fire suppression capability analysis to determine the City’s fire risk and the ability of the Fire Service to suppress fires was last undertaken in 1989; and WHEREAS, the requirements to be considered by the city in providing fire protection, taking into account, among other things, the location and condition of structures, the concentration of residents in various areas of the city, and changes in the amount of traffic and traffic patterns, have changed in the 31-year period since that study was completed, and the standards, needs and ability to provide effective fire suppression have changed over the same period and is there for both reasonable and prudent to conduct a focused, yet comprehensive study of the fire suppression capabilities of the Fire Service; NOW THEREFORE, BE IT RESOLVED, BY THE COUNCIL OF THE CITY OF NORWICH, that, the City Manager is hereby authorized and directed to solicit a Request for Proposal from qualified consultants to complete an analysis of the entirety of the City’s Fire Service, with focus on six (6) specific areas; 1) Response and Dispatch assignment order – commonly referred to as “run cards”, the study is to include an assessment of apparatus response practices to determine; a) if service delivery modalities are aligned with industry best-practices and standards, and b) can mutual aid and automatic aid response plans within all fire departments of the City of Norwich be reconfigured for more efficient and effective results. 2) Standardized response-time data collection – the study is to include; a) an assessment of the current methods, standards, and protocols for determining the response time to an emergency, and b) make recommendations for the collection and analysis of reliable and valid response-time data. 3) Communications – the study is to review and make overall recommendations in critical areas involving radio communications to include; a) dispatch staffing, b) interoperability of communication between departments, and c) identify best practices and ways to enhance radio communications. 4) Fire apparatus – the study is to review and make overall recommendations in the area of fire apparatus to include; a) current inventory deployment, b) apparatus procurement protocols, and c) apparatus replacement schedule. 5) Purchasing of equipment and Inventory control – the study is to review and make recommendations in the procurement of, and accountability for, necessary capital improvement items including, but not limited to; a) Personal Protective Equipment (PPE), b) support equipment, and c) inventory control. 6) Staffing – the study is to review and make overall recommendations in the area of staffing to include; a) administration and support staff, b) suppression staff, c) EMS staff, and d) responsibilities and activity levels of personnel. BE IT FURTHER RESOLVED, BY THE COUNCIL OF THE CITY OF NORWICH, that the City Manager is hereby directed that the RFP and analysis of the City’s Fire Service should be completed by November 30, 2020. Dated at Norwich, Connecticut this 6th day of May, 2020. ATTEST: Betsy M. Barrett City Clerk