HomeMy WebLinkAboutMinutes_Pension Public Safety_11/6/2017 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
REGULAR BOARD MEETING MINUTES
NOVEMBER 6, 2017
Revised
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 November 6, 2017. The meeting was called to order at 1.17
p.m.
ROLL CALL
A roll call was taken by Pension Administrator Kerry Dutton. In attendance at the meeting
were: Chairman Ed Sabin, Secretary John Terzakis, Board Member Ray Giblin, and Board
Member Kyle Stone.
Also in attendance were Attorney Bonni Jensen, Pension Administrator Kerry Dutton,
Investment Monitor Tyler Grumbles, and ASB Real Estate Representative Georgette
Baxter_
PUBLIC COMMENT
There was no public comment at this time.
APPROVAL OF AGENDA
Ms. Dutton requested the addition of the Re-appointment of John Terzakis as 5th Trustee.
MOTION:
Board Member Giblin made a motion to approve the Agenda as amended. Board
Member Stone seconded the motion, which carried by unanimous 4-0 vote.
RE-APPOINTMENT OF 51" TRUSTEE: JOHN TERZAKIS
MOTION:
Board Member Giblin made a motion to approve the re-appointment of John Terzakis
as the 51h trustee. 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-- July 31, 2017
MOTION:
Board Member Giblin made a motion to approve the July 31, 2017 Meeting Minutes
as presented. Board Member Stone seconded the motion, which carried by
unanimous 4-0 vote.
PRESENTATIONS
2. ASB Performance Report — Georgette Baxter
Ms. Baxter approached the Board. Ms. Baxter reviewed the two institutional funds with over
360 investors. She reviewed the team structure with the firm reviewing the changes in
leadership. She continued by reviewing the investor base. ASB just allocated $150 million
from Oregon's General Employees' Pension Fund which will be reflected by the end of the
quarter. The return since inception was 4.33% and the return for the quarter ending
September 30, 2017 was .79%. She reviewed the factors driving underperformance and
explained the performance expected going forward. She stated the operating performance
percentages as follows; industrial 55.9%, office 6.4%, residential 4.2%, and retail at 4.0%.
Ms. Baxter confirmed the firm's retail selections are street front retail with high traffic
locations. Ms. Baxter reviewed the full market cycle notating a full cycle is typically a 10year
period. There was a brief discussion on the markets driving the returns up after the
downturn of the market. Ms. Baxter reviewed the asset allocations compared to the target
allocations. She reviewed the investment criteria specifically the building structural
attributes and desirable locations. She stated the new New York building was purchased
with a line of credit and is already a 100% leased therefore the building will bring ASB up to
18% leverage. She noted with core real estate a high single digit return is to be expected.
She briefly reviewed the property types broken out by location. ASB has queues for
redemptions and incoming funds. There was brief discussion on the firms forecast for the
next 4 years. Ms. Baxter thanked the board.
3. Quarterly Performance Report as of September 30, 2017- Tyler Grumbles, And Co
Consulting
Tyler Grumbles addressed the Board to present the performance of the market
environment for major market indexes as of September 30, 2017. He noted a great fiscal
year. He stated the depreciation of the US dollar is helping the emerging market sector.
International is now the best preforming asset class at 19.6%, the S&P was up at 18.6%
and the US aggregate was flat at 0.1%. Mr. Grumbles reviewed the market and sector
performance for the quarter. He reviewed the cash flow and the asset allocation for the
quarter. The portfolio had $13,796,771 total as September 30, 2017. The portfolio gained
11.31% gross of fees for the fiscal year and 3.51% gross of fees for the quarter. Total
Equity was 15.86% versus the benchmark at 19.11%, Total Domestic Equity was 14.45%
versus the benchmark at 18.18.71%, Total International Equity was 20.63% versus the
benchmark at 18.71%, Total Fixed Income was at 2.82% versus the benchmark at 0.46%,
Domestic Fixed was 0.35% versus the benchmark at 13.81%, Global Fixed was 13.81%
versus the benchmark at 2.82%, and Real Estate was at 3.60% versus the benchmark at
7.80%. Mr. Grumbles confirmed Fiduciary Trust has an auto rebalance letter to return back
to targets on file. He stated the commission reception firm has lowered their fee and he
brought an addendum to be signed today. There is no recommendations at this time.
CONSENT AGENDA
4. Ratification of invoices paid since last quarterly meeting
Check# Paid Date Vendor/Description Amount
1290 8/14/2017 Pension Resource Center $950.00
Administrative Fee-August 2017
Invoice# 15691
1291 8/14/2017 Klausner, Kaufman, Jensen& Levinson $717.25
Legal Services Rendered through 7/31/17
Bill#20315
1292 8114/2017 Garcia Hamilton &Associates, L.P. $1,615.36
Investment Management Fee -2nd Quarter
2017
1293 8/14/2017 GAMCO $3,125.00
Management Fee-2nd Quarter 2017
1294 9/20/2017 Pension Resource Center $950.00
Administrative Fee-Sept 2017
Invoice# 15761
1295 9/20/2017 Klausner, Kaufman, Jensen& Levinson $540.00
Legal Services Rendered through 8130/17
Bill#20453
1296 9/20/2017 Gehring Group, Inc $3,582.92
Fiduciary Liability Insurance Renewal
10/17-10/18
1297 10/12/2017 Pension Resource Center $950.00
Administrative Fee-Oct 2017
Invoice# 15823
1298 10/12/2017 Klausner, Kaufman, Jensen& Levinson $45.00
Legal Services Rendered through 9/28/17
Bill#20589
1299 10112/2017 And CO $4,500.00
Consulting Fee-3rd Qtr 2017
Invoice#23369
Total: $16,975.53
Custodian
7/17/2017 ASB Capital Management $3,237.96
2nd Qtr 2017
10/16/2017 ASB Capital Management $3,883.19
3rd Qtr 2017
10/17/2017 Fiduciary Trust International $182.18
3rd Quarter 2017 Custodial Fee
10/17/2017 Fiduciary Trust International- GHA $379.82
3rd Quarter 2017 Custodial Fee
10/17/2017 Fiduciary Trust International-GAMCO $252.09
3rd Quarter 2017 Custodial Fee
10/24/2017 Fiduciary Trust International-MTL-FND $1,171.43
3rd Quarter 2017 Custodial Fee
Total: $26,082.20
5. Reporting of new applicants for participation in Pension Plan:
Joshua Kitzi
6. Approval of withdrawal of contributions:
None
7. Terminated employees who have not yet taken their contributions:
None
There was a brief discussion on actual fees and expenses.
MOTION:
Board Member Giblin made a motion to approve the ratification of invoices as
presented. Board Member Stone seconded the motion, which carried by unanimous
4-0 vote.
NEW BUSINESS
8. Legislative Update—Attomey Bonni Jensen, Klausner, Kaufman, Jensen & Levinson
Ms. Jensen reviewed the federal public safety officer benefits program. She explained the
one-time lump sum payment benefit is paid to eligible survivors of public safety officers who
die from the direct result of a traumatic injury sustained in the line of duty. She also
reviewed the education assistance program for public safety officers. She stated the
program provides financial assistance to spouses and children of police, fire, and
emergency public safety officers who have been killed or permanently disabled in the line
of duty. She reviewed the health insurance benefits available not just for the injured but the
benefits to the family of deceased members. Ms. Jensen also confirmed the there is a
workman's compensation benefit beyond the standard form. A discussion ensued
regarding the benefit options available to members. Ms. Jensen reviewed situation of
deceased West Palm police officer killed in the line of duty.
9. Annual Conference Cancellation —Attomey Bonni Jensen, Klausner, Kaufman, Jensen
& Levinson
Ms. Jensen stated her Firm has decided to cancel the annual conference. She explained
the impact of the hurricane caused damage to the hotel for which the conference was to be
held. She explained the Firm will be sending the money which was to be used for the
conference to the hurricane victims and recovery directly.
10.Discussion on Internal Procedures — Attorney Bonni Jensen, Klausner, Kaufman,
Jensen & Levinson
Ms. Jensen reviewed the SOC and internal controls taking place at Fiduciary Trust. She
stated the report includes details of the software Fiduciary Trust currently has in use.
Ms. Jensen notified the Board of the new Finance Director, Christopher Quirk,
BUDGET REPORT
11.Quarterly Budget Report — Plan Administrator Kerry Dutton, Pension Resource Centers
The Board acknowledged the receipt and filed the quarterly budget report.
ADMINISTRATIVE REPORT
12. Electronic Filing Requirement Letter
Ms. Jensen reviewed a new requirement by the state which requires the Actuarial Valuation
to be inputted online and don so by the Actuary not the staff. She explained this applies to
all Valuations and submission of paper copies to the State is no longer available.
MOTION:
Board Member Stone made a motion to approve the fee by GRS for electronic filing
of the Actuarial Valuation as presented. Secretary Terzakis seconded the motion,
which carried by unanimous 4-0 vote.
13.Winter Trustees School Plan Administrator Kerry Dutton, Pension Resource Centers
Mrs. Dutton reviewed the dates and location of the upcoming winter trustees school.
14.2018 Calendar Schedule — Plan Administrator Kerry Dutton, Pension Resource Centers
Ms. Dutton reviewed the 2018 calendar.
ANY OTHER MATTER
Gehring Group Presentation
Mr. Rodney Louis addressed the board. He reviewed why cyber liability coverage is
necessary. He stated standard commercial policies give little protection against electronic
damages and the costs associated form cyber exposure. He explained the exposures
covered by cyber liability insurance. Cyber security and privacy threats include hackers,
attackers, intruders and malicious code. He explained the difference between first party and
third party liability coverage. He stated third party coverage is often included with a tech
professional's errors and omissions insurance. He reviewed the coverage limits per claim
and aggregate. He explained the Village's coverage extends to the pension. There was a
brief discussion on being a named insured
Ms. Jensen reviewed the memorandum regarding the unused 185 money. The Village
requested suggestions from the Board. The board requested the options discussed to be
listed and sent to the Village council as recommendation.
The Board discussed, at length, the use of the Funds and considered the three options.
The suggestions options were as follows:
1. Take no action regarding the money
2. Purchase a benefit improvement
3. Divide into Share Accounts
ADJOURNMENT
There being no further business, the meeting was adjourned at 3:32 p.m.
Res ectfully submitted,
Board Member
Village of Tequesta Public Safety Officers' Pension Plan