HomeMy WebLinkAboutMinutes_Pension Public Safety_8/1/2016 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
REGULAR BOARD MEETING MINUTES
August 1, 2016
1. CALL TO ORDER AND ROLL CALL
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 August 1, 2016. The meeting was called to order at 8:30 a.m.
A roll call was taken by Pension Administrator Scott Baur. In attendance at the meeting
were: Chairman Ed Sabin, Board Member John Terzakis, and Board Member Kyle Stone.
Also in attendance were Attorney Bonni Jensen, and Pension Administrator Scott Baur.
II. ADMINISTRATION OF OATH
Village Clerk Lori McWilliams administrated the Oath to newly elected trustee Ray Giblin.
The Board welcomed Trustee Giblin back to the Board.
III. PUBLIC COMMENT
There was a brief discussion on starting the morning meetings at 8:30 a.m. not 8:00 a.m.
provided that the General Employees Board agrees due to no one available to unlock
Village Hall.
III. APPROVAL OF AGENDA
MOTION:
Board Member Terzaikis made a motion to approve the Agenda as presented. Board
Member Stone seconded the motion, which carried by unanimous 3-0 vote.
IV. APPROVAL OF MINUTES
1. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular
Quarterly Meeting Minutes— May 2, 2016
2. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular
Quarterly Meeting Minutes — May 31, 2016
The Board deferred the approval of minutes to the next Board meeting due to the meeting
date listed to be incorrect.
V. PRESENTATIONS
3. Investment Monitor- Tyler Grumbles, Bogdahn Consulting, LLC.
a. Quarterly Investment Report as of June 30, 2016
b. Discussion on Gabelli's Performance
c. Discussion on Templeton Global's Total Return
Tyler Grumbles, Bogdahn Consulting, LLC briefly reviewed the performance of the market
environment for major market indexes as of June 30, 2016. Mr. Grumbles reported that for
quarter ending June 30, 2016 the Plan's market value was $11,745,578 and the asset
allocations were Domestic Equity 50.03, International Equity 14.2%, Domestic Fixed
Income 21.7%, Global Fixed Income 4.9%, Real Estate 8.5%, and Cash Equivalent 0.5%.
He reported that for quarter ending June 30, 2016 the Plan's Total Fund (Gross) was at
1.42% versus the bench mark at 2.19%. Total Equity was 1.24% versus the benchmark at
1.94%, Total Domestic Equity was 1.69% versus the benchmark at 2.63%, Total
International Equity was -0.32% versus the benchmark at -0.40%, Total Fixed Income was
at 1.97% versus the benchmark at 2.63%, Domestic Fixed was 2.24% versus the
benchmark at 2.21%, and Global Fixed was 0.52% versus the benchmark at 5.21%. He
explained fixed income fared poorly due to the combination of a short on interest rates and
US currency. He reviewed the style and sector performance along with the markets
environment. He explained how the index was able to outperform the active managers.
There was a brief discussion on the composition of the Russell 1000 and the Russell 2000.
He reviewed the performance of each manager individually as well as the compliance
checklist. He stated Bogdahn Group still has confidence in both Gabelli and Brown despite
recent performance.
d. Discussion on Possible Indexing Options
Mr. Grumbles reviewed the active passive options. He explained that index offers savings
on management fees. He further explained the passive options can add greater operational
efficiency, reduce manager risk, and scalability to smaller portfolios as well. Mr. Grumbles
then stated that active managers perform better over longer periods of time. Chairman
Sabin questioned the impact fees as the comparison Bogdahn used was a composite
universe with products at higher fees and mutual funds that provide performance net of
fees. Mr. Grumbles stated Indexing seems to be at an all-time high. He suggested to
partially indexing the asset classes. There was a lengthy discussion on the investment
strategies.
The Board reviewed the updated Investment Policy Statement following the changes made
to the assumed rate of return. The Board considered inflation based return targets since the
Board has not generally use these in practice.
MOTION:
Board Member Stone made a motion to approve the Investment Policy Statement as
presented. Board Member Terzakis seconded the motion, which carried by
unanimous 3-0 vote.
VI. UNFINISHED BUSINESS
VII. STANDING REPORTS (INFORMATION ITEMS)
5. New applicants for participation in Pension Plan:
None
6. Request for withdrawal of contributions (employees terminating employment
with the Village of Tequesta) — Ratification of withdrawals made since the last
meeting.
None
7. Terminated employees who have not taken their contributions:
None
VIII. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING)
8. Ratification of Invoices paid since last quarterly meeting:
6/7/2016 Klausner, Kaufman, Jensen & Levinson $2,701.25
Legal Services Rendered through 4-30-16
6/7/2016 Pension Resource Center $950.00
Administrative Fee- June 2016
7/13/2016 Klausner, Kaufman, Jensen & Levinson $833.75
Legal Services Rendered through 5-31-16
Bill# 18268
7/13/2016 Pension Resource Center $1,056.79
Administrative Fee - July 2016
Invoice# 14818 Date 6/30/16
MOTION:
Board Member Stone made a motion to approve the invoices to be ratified as
presented. Board Member Terzakis seconded the motion, which carried by
unanimous 3®0 vote.
IX. PAYMENT TO BE REVIEWED AND APPROVED
9. Payments to be reviewed and approved:
12/22/2015 Fiduciary Trust International $168.10
Initial Custody Fee- 10/30/15- 11/30/15-GHA
12/22/2015 Fiduciary Trust International $146.30
Initial Custody Fee- 10/30/15 - 11/30/15-GAMCO
1/19/2016 Fiduciary Trust International $17.23
Quarterly Custody Fee- MTL FND
2/1/2016 Fiduciary Trust International $8.23
Initial Custody Fee- 10/30/15- 11/30/15
4/20/2016 GAMCO $5,362.00
Investment Management Fee- 1 st Quarter 2016
6/29/2016 Klausner, Kaufman, Jensen & Levinson $45.00
Legal Services Rendered through 6-29-16
6/30/2016 The Bogdahn Group $4,500.00
Performance Evaluation and Consulting Fee-2nd Quarter
2016
7/15/2016 GAMCO $5,559.00
Investment Management Fee-2nd Quarter 2016
MOTION:
Board Member Stone made a motion to approve the invoices to be reviewed and
approved as presented. Board Member Terzakis seconded the motion, which carried
by unanimous 3-0 vote.
The Board reviewed the changes made to the Valuation due to the reduction of the
expectant rate of return. It was noted the required contribution to be made by the Village
increased to 13.85% of covered payroll. The Board previously targeted 6.5%-7% range for
assumption return rate. The Board also reviewed the impact resulting from the benefit
changes and reductions negotiated in the Bargaining Agreement.
MOTION:
Board Member Stone made a motion to approve the revised Actuarial Valuation for
10/1/2016 dated August 1, 2016 as presented. Board Member Terzakis seconded the
motion, which carried by unanimous 3-0 vote.
X. NEW BUSINESS
10.Attorney Bonni Jensen, The Law Office of Klausner, Kaufman, Jensen & Levison
a. Summary of Actions
Ms. Jensen reviewed the Summary of Actions for the Village Council meeting which reports
to council in real time. Ms. Jensen stated the return target recommendation from the
actuary of 6.5%-7% target rate of return will be included. Mr. Terzakis requested to
incorporate an update on individual managers. Chairman Sabin is to present to Council.
X. BUDGET REPORT
11. Quarterly Budget Report— Income Statement & Expenditure Report
The Board reviewed the Income Statement and Balance Sheets provided by the Village
Finance Department.
XII. ADMINISTRATIVE REPORT
12. Administrative Budget
Mr. Baur reported the Administrative Budget is State Mandated. He stated the
Administrative Budget will need to be updated sand filed annually. Chairman Sabin
expressed question that been risen to his attention regarding the expense ratios. Mr. Baur
will provide an expense ratio to be presented to Council in the future.
MOTION:
Board Member Stone made a motion to approve the Administrative Budget as
presented. Board Member Terzakis seconded the motion, which carried by
unanimous 3-0 vote.
13.Village Request- Add Additional Signor for Bank Transfers
Village is requesting the addition of Tatiana Racanati as an authorized signor to the local
checking account. Ms. Racanati has been with the Village's Finance Department for some
time now.
MOTION:
Board Member Stone made a motion to approve the addition of Tatiana Racanati to
the Local Checking account as requested. Board Member Terzakis seconded the
motion, which carried by unanimous 3-0 vote.
14.Village Memo- Custodial Fees
The Board reviewed the custodial fees received by PRC from Fiduciary Trust which have
been corrected.
XI. ANY OTHER MATTER
XII. COMMUNICATIONS FROM CITIZENS
XIII. ADJOURNMENT
There being no further business, the meeting was adjourned at 10:37 a.m.
Respectfully submitted,
Kerry ton
Admini trator
Village of Tequesta Public Safety Officers' Pension Plan
Board Member
Village of Tequesta Public Safety Officers' Pension Plan