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HomeMy WebLinkAboutMinutes_Pension Public Safety_02/02/2009TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND QUARTERLY BOARD OF TRUSTEES MEETING MINUTES February 2, 2009 I. Call To Order And Roll Call The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a regular quarterly meeting at the Tequesta Village Hall, 345 Tequesta Drive, Tequesta, Florida, on Monday, February 2, 2009. The meeting was called to order at 8:00 a.m.. A roll call was taken by Chair Ed Sabin. Board Members in attendance at the meeting were: Chair Ed Sabin, Board Member Ken Nielson, Board Member Ray Giblin, and Board Member Robert Young. Secretary David Cooper and Pension Coordinator Lori McWilliams were absent from the meeting. Also in attendance were Attorney Bonni Jensen, Senior Accountant Monica Rahim, and Bryan Bacardjiev representing Bogdahn Consulting LLC. II. APPROVAL OF AGENDA MOTION: Board Member Nielson made a motion approve the agenda as amended to hold approval of the joint meeting minutes of December 10, 2008 to a joint meeting of both boards. Motion was seconded by Board Member Giblin, and unanimously carried. Chair Sabin reminded the Board there was a joint meeting scheduled for 10 a.m. that morning. III. APPROVAL OF MINUTES 2. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Quarterly Meeting Minutes -November 3, 2008 MOTION: Board Member Giblin moved approval of the minutes of the November 3, 2008 Regular Quarterly Meeting as amended with the following changes: Change the last word in item 21, "Board", to be "Pension Board"; and correct the typo in the word "if' in the first paragraph on page 3. Board Member Young seconded the motion, which carried by unanimous 4-0 vote. 3. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees and General Employees' Pension Trust Fund Board of Trustees Joint Meeting Minutes -December 10, 2008 This item was deferred to the joint meeting. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes February 2, 2008 2 IV. PRESENTATIONS 4. Presentation by Monitor Bryan Bacardjiev, Bogdahn Consulting, LLC, explained he had attended in Dave West's place, since Mr. West was teaching at the FPPTA trustee school. Mr. Bacardjiev reviewed their presentation booklet, and noted this had been the worst quarter in history, with equity markets at their lowest ever in one quarter. Fixed income markets showed the only positive returns. Past markets in times of economic downturns and their recovery times were discussed; Chair Sabin pointed out those would not be applicable since the current market situation was unprecedented. Mr. Bacardjiev assured the Board that the investment manager was watching for the right opportunity to bring the investment mix back up to 60/40. Quarter return was down negative 10.5%. Mr. Bacardjiev distributed and reviewed the attribution report. Mr. Bacardjiev explained that Rockwood had suffered because of volatile interest rates, underweight in treasuries, and overweight in corporates. Discussion ensued. Mr. Bacardjiev predicted people would invest again in the stock market once things started to come back. Rockwood's future strategy was discussed. It was explained that the investment policy was reviewed periodically. Mr. Bacardjiev commented economic cycles would continue, and he expected the next bubble to be in something different than techs or real estate; he also believed 10% return would be realized over a very long time. Other pension funds had also been hit hard; this fund was not as bad off as the State fund. Mr. Bacardjiev confirmed for Attorney Jensen that the peer group analysis used consisted of all institutional investment managers, and commented that this fund had been helped by not having to pay retirees. MOTION: Board Member Nielson moved approval of the monitor's report. Board Member Young seconded the motion, which carried by unanimous 4-0 vote. V. STANDING REPORTS (INFORMATION ITEMS) 5. New applicants for participation in Pension Plan Police OfFcer - Ariel I. Ramirez, Jr. -Date of Hire 12/22/08 MOTION: Board Member Giblin moved approval of the new applicant Board Member Young seconded; motion carried by unanimous 4-0 vote. 6. Change of Beneficiary None Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes February 2, 2008 3 7. Request for withdrawal of contributions (employees terminating employment with Village of Tequesta) -Ratification of withdrawals made since the last meeting on 2 signature basis: Chief Wm. McCollom - $12,267.59 (Rollover) (Opted out of plan) MOTION: Board Member Young made a motion to formalize withdrawal of the contribution request by Chief McCollom. Board Member Nielson seconded the motion; motion carried by unanimous 4-0 vote. 8. Revenue and Expenditure Report (formerly Statement of Activities) - Senior Accountant Rahim answered questions from the Board. VI. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING) 9. Hanson, Perry Sz Jensen, P.A. Services through 11/15/08 $ 1,572.00 Business Services Connection, Inc. Recording/Preparation of 11/3108 minutes 271.84 Business Services Connection, Inc. Office Work for weeks ended 10/3/08 through 01/01/09 1,485.83 IRS Fee for IRS Determination Letter 1,000.00 MOTION: Board Member Glblin made a motion to ratify the payments as listed. Board Member Young seconded the motion, which carried by unanimous 4-0 vote. VII. PAYMENTS TO BE REVIEWED AND APPROVED 10. Business Services Connection, Inc. Recording/Preparation of 12/10 Joint Meeting Minutes (Public Safety Officers' Pension Board Portion $ 76.45 Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes February 2, 2008 4 Business Services Connection, Inc. Office Work for weeks ended 1!9109 through 01/30/09 382.28 Hanson, Perry 8z Jensen, P.A. Services through 1/15/09 1,714.00 Bogdahn Consulting, LLC Fee for Quarter ending 12/31/08 2,000.00 Rockwood Capital Advisors, LLC Fee for Quarter ending 12/31/08 5,167.57 Gabriel Roeder Smith Sz Company Actuarial Services through 12/32/08 1,729.00 Attorney Jensen explained the $2,000 fee from Bogdahn Consulting, LLC was still under their old contract; the new contract would be effective as of January 1, 2009. MOTION: Board Member Nielson made a motion to approve the payments as listed. Board Member Giblin seconded the motion, which carried by unanimous 4- 0vote. VIII. NEW BUSINESS 11. Budget Report Senior Accountant Monica Rahim explained this report showed actual charges since January 22, 2009, and answered questions from the Board, explaining the purpose of this report was to show the amount budgeted and expenditures to January 22. 12. Approval of Investtnent Manager's quarterly report Board Member Nielson noted on page 3 of the report from Rockwood Capital Advisors, LLC the beginning Market Balance was shown as of 10/1/2007, which he believed should be 10/1/2008. Chair Sabin asked that be communicated back to Rockwood by Betty Laur. MOTION: Board Member Young made a motion to approve the Investment Manager's quarterly report, Board Member Giblin seconded the motion, which carried by unanimous 4-0 vote. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes February 2, 2008 5 13. Discussion/Consideration of having an actuarial report done annually Chair Sabin noted that Steve Palmquist had joined the meeting. Chair Sabin commented that consideration of having an actuarial report done annually had come up at the joint meeting of both pension boards, and had been discussed several times during the past year. The General Employees' Pension Board had approved an annual report, while this Board had remained comfortable with having the report done every two years. Attomey Jensen noted the plan participants received a personal statement in the off years. Chair Sabin asked for opinions from the Board. Attomey Jensen explained that the idea was an annual report would give the Village a better concept of what was happening in the plan. The 2007 number still being used was very positive; the 2008 number was less than that. The question was how quickly to recognize those types of gains and losses so as not to have so much volatility in the contribution rate. Attorney Jensen commented this had been a topic of discussion over the years-whether the cost of an annual analysis was outweighed by the benefits of that same analysis. Chair Sabin commented the other extreme was smoothing over a 5-year period. Board Member Nielson noted an interim report could be done in periods like this. Mr. Palmquist explained that the General Employees' Board had decided to have an valuation annually-his firm had been charging them something like $1,500 or $1,800 for work in the off year and $5,000 in the year the valuation was done, so in what would have been the off year the cost was approximately $3,500. In this plan, he #hought the charges were $6,000 in the valuation year and $2,000 in the off year; so going to an annual valuation would be an additional $4,000. Mr. Palmquist was asked if the calculation was done on present value smoothing or market value; Mr. Palmquist responded it was market value. Consensus was to defer any decision to change to an annual valuation; the Board would stay with a valuation every two years. IX. ANY OTHER MATTERS Attorney Jensen commented at the last meeting the Board had voted to continue their agreement with Bogdahn Consulting, and a motion was needed to authorize the Chair and Secretary to execute the agreement. MOTION: Board Member Giblin made a motion to authorize the Chair and Secretary to execute the agreement with Bogdahn Consulting, LLC. Board Member Young seconded the motion, which carried by unanimous 4-0 vote. Attorney Jensen noted the HEART issue would need to be addressed before 2011. Public Safety Officers' Pension Trust Fund Quarterly Board Meeting Minutes February 2, 2008 6 X. COMMUNICATIONS FROM CITIZENS In response to questions from Vince Arena, it was explained that last year's loss had been $522,000 and the loss for the quarter was negative 10.5%. Chair Sabin described the consultants for the plan and their duties. Smoothing was discussed. Mr. Palmquist explained this plan did not use smoothing, so costs would be spread over the future working life; therefore if there were an $800,000 loss; approximately $80,000 per year would need to be replaced by the Village. ~,~. b~ If smoothing were used, 1/5 of the $800, 000, or $160, 000 would be recognized in ~, ~ each of the subsequent 5 year periods, so the Village contribution would go up $16,000 this year, $32,000 next year, etc., until it capped out at $80,000 and would stay at that level until the full $800,000 was paid. When there were good returns, there was not as much of a cost decrease immediately; then there were poor returns, there was not as much of a cost increase. Mr. Giblin pointed out this plan also received 175 and 185 monies from the State. XI. ADJOURNMENT Upon motion by Board Member Glblin, seconded by Board Member Young, and unanimously carried, the meeting was adjourned Respectfully submitted, ~y ~~^^^~ Betty Laur Recording Secretary