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HomeMy WebLinkAboutMinutes_Pension Public Safety_5/1/2017 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND REGULAR BOARD MEETING MINUTES MAY 1, 2017 CALL TO ORDER The Regular Quarterly Board Meeting of the Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees was held at the Village Hall Council Chambers, 345 Tequesta Drive, Tequesta, Florida, on May 1, 2017. The meeting was called to order at 1:00 p.m. ROLL CALL A roll call was taken by Pension Administrator Audrey Ross. In attendance at the meeting were: Chairman Ed Sabin, Secretary John Terzakis, Ray Giblin and Board Member Ray Korkowski(entered 1:21 pm). Also in attendance were Attorney Bonni Jensen, Pension Administrator Audrey Ross, Investment Monitor Tyler Grumbles and PBA Rep. Brennen Keeler. PUBLIC COMMENT There was no public comment at this time. APPROVAL OF AGENDA MOTION: Board Member Giblin made a motion to approve the Agenda as presented. Board Member Stone seconded the motion, which carried by unanimous 4-0 vote. APPROVAL OF MINUTES 1. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular Quarterly Meeting Minutes— February 6, 2017 MOTION: Board Member Giblin made a motion to approve the February 6, 2017 Meeting Minutes as presented. Chairman Terzakis seconded the motion, which carried by unanimous 4-0 vote. PRESENTATIONS 2. Quarterly Performance Report as of March 31, 2017- Tyler Grumbles, & Co Consulting Tyler Grumbles briefly reviewed the performance of the market environment for major market indexes as of March 31, 2017. He stated the US dollar has depreciated and equity bonds have bounced back. Mr. Grumbles reported that for quarter ending March 31, 2017 the Plan's market value was $12,740,832 and the asset allocations were Domestic Equity 51.4%, International Equity 15.0%, Domestic Fixed Income 20.0%, Global Fixed Income 5.2% and Cash Equivalent 0.3%. He reported that for quarter ending March 31, 2017 the Plan's Total Fund (Gross) was at 5.22% versus the benchmark at 4.55%. Total Equity was 7.20% versus the benchmark at 6.27%, Total Domestic Equity was 6.57% versus the benchmark at 5.74%, Total International Equity was 9.37% versus the benchmark at 7.98%, Total Fixed Income was at 1.68% versus the benchmark at 1.10%, Domestic Fixed was 0.97% versus the benchmark at 0.82%, and Global Fixed was 4.55% versus the benchmark at 2.83%. He reviewed the markets environment. He reviewed the performance of each manager individually as well as the compliance checklist. There was a discussion on global fixed income with Templeton. Mr. Grumbles stated there was no recommendation on rebalancing at this time. Mr. Grumbles explained why Brown had such a hard time compared to the index. He stated a manager replaced search was brought with him today. He reviewed the each individual manager's holdings and performance. He noted all managers out preformed except ASB. He stated it was a good quarter. 3. Update on Disclosure Brochure & Privacy Notice - Tyler Grumbles, & Co Consulting Mr. Grumble's reviewed the updates made to the documents to reflect the changes the Board was previously made aware of. He noted this is partially resulted from the firms name change. 4. Large Cap Growth Investment Manager Review- Tyler Grumbles, & Co Consulting .There was a discussion regarding the history of underperformance and the recent turn around in Brown's performance. Mr. Grumble's stated all growth managers have been trailing. He stated his preference of managers having larger holdings and more diversification. He noted Brown is more growth oriented versus other managers along with having the highest fees. Mr. Grumbles review and compared all managers. A lengthy discussion ensued. MOTION: Board Member Terzakis made a motion to approve the termination of Brown and 50/60 split of assets between MFS Growth and PrimeCap. Board Member Stone seconded the motion, which carried by unanimous 5-0 vote. CONSENT AGENDA 5. Ratification of invoices paid since last quarterly meeting Check# Paid Date Vendor/ Description Amount 1270 2/15/2017 Gabriel Roeder Smith & Company $5,280.00 Consultants &Actuaries Svs through 12/31/16 1271 2/15/2017 GAMCO $5,960.00 Management Fee -4th Quarter 2016 1272 3/9/2017 Pension Resource Center $950.00 Administrative Fee- February 2017 Invoice# 15288 1273 3/9/2017 Klausner, Kaufman, Jensen & Levinson $495.00 Legal Services Rendered through 1/31/17 Bill# 19443 1274 3/9/2017 Klausner, Kaufman, Jensen & Levinson $1,935.00 Legal Services Rendered through 2/28/17 Bill# 19586 1275 4/12/2017 Pension Resource Center $950.00 Administrative Fee- March 2017 Invoice# 15354 1276 4/12/2017 And CO $4,500.00 Consulting Fee- 1 st Qtr 2017 Invoice#21516 PAID BY CUSTODIAN 1/17/2017 Chevy Chase $3,194.76 4th Qtr 2016 Fee 4/17/2017 Chevy Chase $3,226.87 1 st Qtr 2017 Fee SUBTOTAL $26,491.63 6. Payments to be reviewed and approved March 31, 2017 Resource Centers, LLC $950.00 March 31, 2017 Klausner, Kaufman, Jensen & Levinson $598.06 April 5, 2017 Gabriel, Roeder, Smith & Company $7,578.00 April 10, 2017 GH&A $1,594.14 January 6, 2017 GH&A $1,555.34 TOTAL TO BE APPROVED $12,275.64 7. Reporting of new applicants for participation in Pension Plan: None 8. Approval of withdrawal of contributions: Michael Gallagher—payment issued 4/7/17 9. Terminated employees who have not yet taken their contributions: None 10.Benefit Approvals — Plan Administrator Audrey Ross, Pension Resource Centers MOTION: Board Member Giblin made a motion to approve the invoices to be ratified and invoices to be reviewed as presented. Board Member Korkowski seconded the motion, which carried by unanimous 5-0 vote. MOTION: Board Member Giblin made a motion to approve the benefit approvals as presented. Board Member Korkowski seconded the motion, which carried by unanimous 5-0 vote. OLD BUSINESS None X. NEW BUSINESS 11.Discussion on Use for 185 Tax premium Money — Attorney Bonni Jensen, Klausner, Kaufman, Jensen & Levinson There was a discussion on the use of State money and the reserve account that both the Village and union have not yet agreed upon. There is currently $313,000.00 in the Police Officers' account that needs to be used. It was discussed the process of purchasing additional benefits would be hard due to being a closed plan. The Village has requested a recommendation from the Board on this matter. Mr. Brennen recommended Share Accounts. There was a lengthy discussion on the different options for the funds. MOTION: Board Member Giblin made a motion to recommend to the City use the 185 money for Share accounts be established for all members of the Plan. Board Member Stone seconded the motion, which carried by unanimous 5-0 vote. 12.Discussion on Tax Reclaim Request from Fiduciary Trust— Plan Administrator Audrey Ross, Pension Resource Centers MOTION: Board Member Giblin made a motion to approve the tax reclaim request from Fiduciary Trust. Board Member Korkowski seconded the motion, which carried by unanimous 5-0 vote. XI. BUDGET REPORT 13.Quarterly Budget Report: Income Statement & Expenditure Report — Finance Department Item was received and filed by the Board. 14.Administrative Budget— Plan Administrator Audrey Ross, Pension Resource Centers The Board tabled this item for the next meeting. XII. ADMINISTRATIVE REPORT 15. FPPTA Upcoming Conference Ms. Ross informed the Board of the upcoming conference. 16.Form 1 Bonni Jensen reminded the Trustees of the required filing of the Form 1 due on July 1Sc She explained that this can be filed by the Trustee directly or through her office. She recommended filing with a confirmed receipt. XI. ANY OTHER MATTER Board member Terzakis updated the Board on the last Village Council meeting. He stated the meeting went smooth and there were no issues. Ms. Jensen reviewed a memorandum on internal controls and procedures produced by her firm. XII. COMMUNICATIONS FROM CITIZENS XIII. ADJOURNMENT There being no further business, the meeting was adjourned at 2:55 p.m. Respectfu y ed, B a Member Village of Tequesta Public Safety Officers' Pension Plan