HomeMy WebLinkAboutMinutes_Pension Public Safety_11/7/2016 TEQUESTA PUBLIC SAFETY OFFICERS' PENSION TRUST FUND
REGULAR BOARD MEETING MINUTES
NOVIEMBER 7, 2016
I. 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 November 7, 2016. The meeting was called to order at 1:00
p.m.
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, Ray
Korkowski and Board Member Kyle Stone.
Also in attendance were Attorney Bonni Jensen, Pension Administrator Kerry Dutton,
Investment Monitor Tyler Grumbles, Investment Manager Clyde Robinson and Georgette
Baxter.
II. ADMINISTRATION OF OATH
Deferred
III. PUBLIC COMMENT
There was no public comment at this time.
III. APPROVAL OF AGENDA
It was decided to defer the administration of Oath and approval of the May 31, 2016 &
August 1, 2016 minutes along with the addition to discuss the Unions request for an
Actuarial Study. Also add comments on the most recent Village Council meeting
presentation.
VI. PRESENTATIONS
3. Clyde Robinson, ASB Real Estate
Mr. Robinson introduces himself and Ms. Georgette Baxter. Ms Baxter reviewed her recent
employment at the Firm along with the dynamics of the upper management. She reviewed
the philosophy on the buildings that are acquired. She explained the Firm's consistent
evaluation process of their buildings. She noted this is not the account type the Fund is
invested into. Mr. Robinson reviewed the structure and the roles of the Investment Advisory
Team. He described the Separate Account created in 2012 to mirror the Allegiance Fund.
Mr. Robinson stated the reported total return net of fees to be 1.77% for the quarter and
10.64% for the 1 year. He reviewed and explained the consistent outperformance across
different market cycles. Mr. Robinson stated examples of retail investments that ASB
typically invests in. He noted the year to date performance was 4.74%. Ms. Baxter
reviewed the primary properties along with the Firm's investment strategies. She stated the
Firm only applies minimum debit for purchases of property resulting from the conservative
approach. She reviewed the historical leverage percentage. She stated the allocations as
Office Space at 38.4%, Retail at 27.8%, and Residential at 15.9%, and industrial at 17.8%.
Ms. Baxter reviewed all 2016 acquisitions that reflect the Allegiance Fund's strategic focus
on assets with unique competitive advantages located in supply-constrained, vibrant urban
markets. She reviewed the trailing year of significant leases and noted the 2017 queue is
low due to only reflecting negotiated leases in the last 18 months. Ms. Baxter explained the
Firm not only sells properties for underperformance but will also sell if the purchase offer is
outstanding compare to the market value. Explained the core strategic disposition stating
the Firm remains focused and disciplined. The Allegiance Fund's assets were at $376
million as of September 30, 2016.
II. ADMINISTRATION OF OATH
The Oath was administered by MaryAnn Grieser from the Village Clerks office to both Ray
Korkowski and Ray Giblin. Both trustees signed in acceptance.
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.
IV. APPROVAL OF MINUTES
1. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular
Quarterly Meeting Minutes— May 31, 2016
MOTION:
Board Member Stone made a motion to approve the May 31, 2016 Meeting Minutes as
presented. Chairman Sabin seconded the motion, which carried by unanimous 4-0
vote.
2. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees Regular
Quarterly Meeting Minutes —August 1, 2016
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.
4. Tyler Grumbles, Bogdahn Consulting, LLC.
a. Quarterly Performance Report as of September 30, 2016
Tyler Grumbles, Bogdahn Consulting, LLC briefly reviewed the performance of the market
environment for major market indexes as of September 30, 2016. Mr. Grumbles reported
that for quarter ending September 30, 2016 the Plan's market value was $12,205,102 and
the asset allocations were Domestic Equity 50.2, International Equity 14.7%, Domestic
Fixed Income 20.9%, Global Fixed Income 4.7%, Real Estate 8.3%, and Cash Equivalent
1.1%. He reported that for quarter ending September 30, 2016 the Plan's Total Fund
(Gross) was at 3.26% versus the benchmark at 3.71%. Total Equity was 4.78% versus the
benchmark at 4.99%, Total Domestic Equity was 3.81% versus the benchmark at 4.40%,
Total International Equity was 8.23% versus the benchmark at 7.00%, Total Fixed Income
was at 0.14% versus the benchmark at 0.82%, Domestic Fixed was 0.25% versus the
benchmark at 0.46%, Global Fixed was -0.34% versus the benchmark at 3.08%, and Total
Real Estate was at 1.77% versus the benchmark at 2.13%. He reviewed the style and
sector performance along with the markets environment. He explained that brown places
way behind the benchmark however there weren't any growth managers that did well this
quarter.
Mr. Grumbles reviews the appeals of indexing. He explains the fees would be reduced. He
also reviewed the trailing returns for both the 3 year and 5 year returns compared to the
indexing options returns. There was a lengthy discussion on the two options between
indexing and increasing the allocation in to Real Estate.
MOTION:
Board Member Giblin made a motion to approve a $200,000 additional commitment
towards ASB Real Estate. Board Member Korkowski seconded the motion, which
carried by unanimous 4-0 vote.
There was a brief discussion on the analysis report on Gamco and Brown to consider
allocation in to indexing.
MOTION-
Board Member Giblin made a motion to approve the movement of 25% of Brown
Growth Equity account to be index in to Vanguard. Board Member Korkowski
seconded the motion, which carried by unanimous 4-0 vote.
VII. UNFINISHED BUSINESS
Chairman Sabin reviewed the presentation made to the Village Council. He explained the
Council asked about increasing the indexing of the portfolio. The Council also requested a
summary of fees. Chairman Sabin reviewed the intent of the reduction of the assumed rate
of return to the Council.
VIII. STANDING REPORTS (INFORMATION ITEMS)
5. New applicants for participation in Pension Plan:
Michael Gallagher (Firefighter)
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:
Ariel Ramirez (Police Officer)
VIII. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING)
8. Ratification of invoices paid since last quarterly meeting:
1245 8/10/2016 Pension Resource Center $950.00
Administrative Fee-August 2016
Invoice# 14883 Date 7-29-16
1246 8/10/2016 GAMCO $5,362.00
Management Fee-1 st Quarter 2016
20160331-157-6725-A Date 4/20/2016
1247 8/10/2016 Klausner, Kaufman,Jensen&Levinson $45.00
Legal Services Rendered through 6-29-16
Bill#18416
1248 8/10/2016 The Bogdahn Group $4,500.00
Management Fee-2nd Quarter 2016
Invoice#17292 Date 6/30/2016
1249 8/10/2016 Garcia Hamilton&Associates L.P. $1,589.99
Management Fee-2nd Quarter 2016
Invoice#27083 Date 7/14/2016
1250 8/10/2016 GAMCO $5,559.00
Management Fee-2nd Quarter 2016
20160630-157-6725-A Date 7/15/2016
1251 9/9/2016 Gabriel Roeder Smith&Company $5,005.00
Actuarial Services Rendered through 6-30-16
Invoice#423313 Date 7/7/16
1252 9/9/2016 Klausner, Kaufman, Jensen & Levinson $592.75
Legal Services Rendered through 7-31-16
1253 9/9/2016 Pension Resource Center $991.38
Administrative Fee-Sept 2016
1254 9/20/2016 Gehring Group, Inc $3,684.70
Fiduciary Liability Insurance- 10/1/16- 10/1/17
1255 10/12/2016 Klausner, Kaufman,Jensen& Levinson $1,192.50
Legal Services Rendered through 8-30-16
1256 10/12/2016 The Bogdahn Group $4,500.00
Management Fee-3rd Quarter 2016
Invoice# 19619 Date 9/25/2016
1257 10/12/2016 Pension Resource Center-Administrative Fee-Oct 2016 $950.00
Paid by Custodian
2/11/2016 Fiduciary Trust International-R&D $8.23
Initial Custody Fee 10/30/15- 11/30/15
Cust#XXXX700 Invoice#S14800439108
12/22/2015 Fiduciary Trust International- GHA $168.10
Initial Custody Fee 10/30/15-11/30/15
Cust#XXXX710 Invoice#S14800421424
12/22/2015 Fiduciary Trust International-GAMCO $146.30
Initial Custody Fee 10/30/15-11/30/15
Cust#XXXX720 Invoice#S14800421425
1/19/2016 Fiduciary Trust International-MTL FND $17.23
Initial Custody Fee 10/30/15-11/30/15
Cust#XXXX730 Invoice#S14800428950
4/25/2016 Fiduciary Trust International-ACH Fee $120.00
Quarterly Benefit Payments for 3/31/16
Cust#XXXX700 Invoice#S14800450919
7/20/2016 Fiduciary Trust International-R&D $24.83
Custody Fee 12/1/15- 12/31/15& 1/1/16-3/31/16
Cust#XXXX700 Invoice#S14800467391 &S14800467392
7/20/2016 Fiduciary Trust International-GHA $670.69
Custody Fee 12/1/15- 12/31/15& 1/1/16-3/31/16
Cust#XXXX710 Invoice#S14800467393&S14800467394
7/20/2016 Fiduciary Trust International-GAMCO $555.71
Custody Fee 12/1/15-12/31/15& 1/1/16-3/31/16
Cust#XXXX720 Invoice#S14800467395&S14800467396
7/20/2016 Fiduciary Trust International-MTL FND $1,014.61
Custody Fee 12/1/15-12/31-15& 1/1/16-3/31/16
Cust#XXXX730 Invoice#S14800467397&S14800467398
7/28/2016 Fiduciary Trust International R&D $8.53
Custody Fee 4/1/16-6/30/16
Cust#XXXX700 Invoice#S14800471764
7/28/2016 Fiduciary Trust International-GHA $372.34
Custody Fee 4/1/16-6/30/16
Cust#XXXX710 Invoice#S14800471765
7/28/2016 Fiduciary Trust International-GAMCO $433.88
Custody Fee 4/1/16-6/30/16
Cust#XXXX720 Invoice#S14800471766
7/28/2016 Fiduciary Trust International-MTL FND $756.87
Custody Fee 4/1/16-6/30/16
Cust#XXXX730 Invoice#S14800471767
7/18/2016 Fiduciary Trust International-ACH Fee $140.00
Quarterly Benefit Payments for 6/30/16
Cust#XXXX700 Invoice#S14800465045
MOTION:
Board Member Stone made a motion to approve the invoices to be ratified as
presented. Board Member Korkowski seconded the motion, which carried by
unanimous 4-0 vote.
IX. PAYMENT TO BE REVIEWED AND APPROVED
9. Payments to be reviewed and approved:
October 31,2016 Pension Resource Center
Administrative Fee- November 2016 $950.00
October 12,2016 Gamco Asset Management $5,779.00
3rd Quarter Management Fees
October 25, 2016 FPPTA $600.00
2017 Membership Renewal
October 4, 2016 Gabriel, Roeder, Smith&Company $6,889.00
Consultants&Actuaries for Services Rendered through 9/30/2016
MOTION:
Board Member Stone made a motion to approve the invoices to be reviewed and
approved as presented. Board Member Korkowski seconded the motion, which
carried by unanimous 4-0 vote.
X. NEW BUSINESS
Ms. Jensen explained the request made by the Union. She also reviewed the past practice
of the Board in regards to these types of requests. There was a brief discussion on the
process.
MOTION:
Board Member Stone made a motion to approve the Union to collaborate directly
with the Actuary to complete the cost study. Chairman Sabin seconded the motion,
which carried by unanimous 4-0 vote.
XI. BUDGET REPORT
XII. ADMINISTRATIVE REPORT
10. FPPTA Upcoming Conference
Ms. Dutton reviewed the schedule of the upcoming 2017 FPPTA Conference.
11.2017 Meeting Schedule
There was a brief discussion on the proposed August 1st meeting date causing some
conflicts. The Board agreed to move the meeting to July 31st instead.
XI. ANY OTHER MATTER
XII. COMMUNICATIONS FROM CITIZENS
XIII. ADJOURNMENT
There being no further business, the meeting was adjourned at 3:18 p.m.
Respectfully suhmitted,
Kerry Dutton
Administrator
Village of Tequesta Public Safety Officers' Pension Plan
Board Member
Village of Tequesta Public Safety Officers' Pension Plan