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HomeMy WebLinkAboutDocumentation_Regular_Tab 7A_7/20/2000 $ TE, r' VILLAGE OF TEQUESTA �� Post Office Box 3273 • 250 Tequesta Drive • Suite 300 " Tequesta, Florida 33469-0273 • (561) 575-6200 f111[t Fax: (561) 575-6203 eou TEQUESTA EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES MEETING OCTOBER 27, 1999 I . CALL TO ORDER AND ROLL CALL The Tequesta Employees' Pension Trust Fund Board of Trustees held a special meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Wednesday, October 27, 1999 . The meeting was called to order at 9:04 A.M. by Chairman Ron T. Mackail . A roll call was taken by Betty Laur, the Recording Secretary. Boardmembers in attendance at the meeting were: Chairman Ron T. Mackail, William Allen, Matthew Morrison, and Secretary Tom Bradford. Also in attendance were Attorney John McCracken sitting in for Village Attorney John C. Randolph, Loomis, Sayles & Company representative Peter V. Van Beuren, and Department Heads. Boardmembers William Sharpless, Carl Hansen, and Shawn Miller were absent from the meeting. II. APPROVAL OF AGENDA Boardmember Bradford made a motion to approve the agenda as submitted. Boardmember Allen seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted and the Agenda was approved as submitted. Recycled Paper 4 1 BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 2 III. APPROVAL OF MINUTES Boardmember Bradford made a motion to approve the Tequesta Employees' Pension Trust Fund Board of Trustees Meeting Minutes of July 28, 1999 and the Tequesta Employees' Pension Trust Fund Board of Trustees Special Meeting Minutes of October 1, 1999. Boardmember Morrison seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted. IV. STANDING REPORTS A) Approval of New Applicants for Participation in Pension Plan (July 1999-October 1999) : 1) None (No motion necessary) B) Approval of Beneficiary Changes (July 1999 - October 1999) 1) None (No motion necessary) C) Request for Withdrawal of Contributions (employees terminating employment with Village (July 1999- October 1999) Name Term. Date Payout Amount Ricki Ann Nix 7/31/99 $1, 035 . 44 Boardmember Morrison made a motion to approve the request BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 3 for withdrawal of contributions for those employees listed July 1999 through October, 1999. Boardmember Bradford seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted. V. FINANCIAL REPORTS A) Loomis, Sayles & Company, L.P. , Investment Manager' s Financial Statement for Quarter Ending September 30, 1999 (Peter V. Van Beuren, V.P. & Sr. Partner) 1) Review and Discussion: Mr. Van Beuren presented an Investment Review booklet for the Village of Tequesta Employees' Pension Trust Fund for the period ending September 30, 1999 . Mr. Van Beuren reviewed the report booklet beginning with Section Two, and explained that the mix of investments was still 40W for fixed income and 60% for equities, and that the restrictions had not changed since they were established. Mr. Van Beuren explained that the S&P 500 market had declined during the quarter, that there had been an increase in interest rates across the board, and that returns for the first nine months of 1999 for both stock and bond indexes were in a lot smaller proportions than in the last few years. Returns for Tequesta' s portfolio were reviewed. Mr. Van Beuren reported that there had been improvement during the past quarter on the equity side but it still did not catch up after first BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MIN[JTES October 27, 1999 PAGE 4 and second quarter declines, and that although looking back year to year the picture was still positive, this year had been difficult. Boardmember Morrison questioned the inception date, to which Mr. Van Beuren responded that was October 1997 . Mr. Van Beuren reviewed equity characteristics of Tequesta' s fund, which were all above S&P; however, the current yield was below that of the S&P 500 index. The asset mix was 53 . 6% equities, 34 .6% bonds, and 11 . 8% cash equivalents. Mr. Van Beuren explained that the intent was to get closer to the 60% level in equities, and that level was expected to be very close by the end of the year. Cash was expected to be adjusted from 11. 8% to 8%-10%. The diversification summary was reviewed, and Mr. Van Beuren pointed out that there were no utilities or basic materials in the portfolio. Fixed income in bonds had a longer duration than those in the Merrill Lynch Intermediate Index, which had been helpful in past years . A report was reviewed which showed individual stocks and compared their price per share, 5-year history of growth rate, price/earnings, return on investment, and dividend yield and compared those categories to the S&P 500 Index. Mr. Van Beuren stated that the key was to try to find stocks that were consistent, and reviewed the purchase and sales report for the quarter. Mr. van Beuren commented that the turnover rate in this portfolio was low, and explained that his company was diligent in reviewing the stocks and deciding whether to hold them or sell them. The most significant factors currently affecting the equity bond markets were described as weaknesses of interest rates and bond rates, higher yields on fixed income investments and the weakness of the dollar. Mr. Van Beuren explained that there was confusion regarding what the Federal Reserve would do and uncertainty over Y2K, which affected the market, resulting in investors being cautious for the next BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 5 few months; however, a rally was anticipated after the first of the year if there were not significant Y2K problems . Mr. Van Beuren commented that the global picture was very positive, which he indicated might be a little better than the domestic situation. Mr. Van Beuren discussed domestic interest rates and commented that foreign markets were doing well and that various countries were working on their own problems, which indicated a better outlook long term. Mr. Van Beuren explained that Loomis Sayles would remain cautious short term and stay on top of the investments, trying to find companies that were consistently good producers. The economy of European countries was discussed. Mr. Van Beuren explained that Europe was in the position that the United States had been in 2-3 years ag- -just coming out of a recession. Mr. Van Beuren commented that the Federal Reserve could tighten fed funds again to stabilize the market, and he felt that six months or so was needed to see how the recent interest rate increases affected the market. Mr. Van Beuren speculated that on the other hand, the Federal Reserve might not raise rates again until after the end of the year because of the millennium. Boardmember Bradford made a motion to approve the report by Peter van Beuren for the period ending September 30, 1999. Boardmember Allen seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted. B) Prudential Securities, Inc. , Custodial Broker, Account BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 6 Statements (April - June, 1999) Mr. Van Beuren explained that the funds handled by Prudential were the same funds handled by Loomis Sayles; and that Prudential was the custodian and Loomis Sayles was the investment manager. Boardmember Morrison made a motion to approve the Prudential Securities, Inc. , account statements for the period ending September 30, 1999. Boardmember Bradford seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted. VI. PAYMENTS TO BE REVIEWED AND APPROVED A) 7/8/99 Gabriel, Roeder, Smith & Co. - $525 (Monthly Retainer - July) 8/20/99 Gabriel, Roeder, Smith & Co. - $525 (Monthly Retainer - August) 9/17/99 Gabriel, Roeder, Smith & Co. - $525 (Monthly Retainer - September) 7/15/99 Jones, Foster, Johnston & Stubbs - $207 (Legal Services) 8/13/99 Jones, Foster, Johnston & Stubbs - $627.50 (Legal Services) 8/13/99 Loomis Sayles & Co. - $2, 661.40 (Management Services) Boardmember Bradford made a motion to approve the payments as shown on the agenda. Boardmember Allen seconded the motion. The vote on the motion was: BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 7 Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted. VII. REPORT ON HB 261 ELECTION RESULTS Village Manager Bradford reported he had met with the Police and Fire Departments and elections had been held, resulting both the firefighters and police officers voting to continue with a combined Board for their retirement plan. Attorney McCracken had then been requested to draft an ordinance to amend the pension plan to comply with HB 261 . At the Village Council meeting on October 14, the ordinance had been read on first reading. Village Manager Bradford explained that the ordinance combined the fire and police into one public safety plan and separated out the general employees, who would have their own plan and board. Second reading and adoption of the ordinance was anticipated for the November meeting of the Village Council, after which action would be taken to dissolve the present board and create two separate boards. Boardmember Bradford commented it was assumed that the firefighters and police would keep the same representatives to the board, and explained that the general employees would have to elect someone to join Matthew Morrison on their board. Also, the Village Council would have to elect two representative for each board. Boardmember Bradford commented that between the November 9 and December 9 Village Council meetings, efforts would be made to try to finalize the boards so that the Village Council could approve the representatives at their December meeting. Mr. Van Beuren commented that a certain amount of funds in the present plan would need to be split out for the general employees, and requested that he be notified of the BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 8 amount in plenty of time so that changes could be made without selling securities, if possible. It was estimated that less than 10% of the portfolio would need to be pulled out for the general employees. Attorney McCracken explained that another custodial account would need to be opened with the broker, cash would be allocated to that account, and then the broker would start over again purchasing securities for that account. Mr. Van Beuren stated he would notify the Prudential representative of this change. VIII. ANY OTHER MATTERS There were no other matters to come before the Board. IX. ADJOURNMENT Boardmember Allen made a motion to adjourn the meeting. Boardmember Bradford seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for Peter Allen - for Matthew Morrison - for The motion was therefore passed and adopted, and the meeting was adjourned at 9:44 A.M. Respectfully submitted, 7(1-L-1;9- Betty Laur Recording Secretary BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES October 27, 1999 PAGE 9 ATTEST: Joann Manganiello Village Clerk DATE APPROVED: