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HomeMy WebLinkAboutMinutes_Pension Public Safety_8/3/2020TEQUESTA PUBLIC SAFE REGULAR BOARD MEETING MINUTES AUGUST 3, 2020 CALL TO ORDER The Regular Quarterly Board Meeting of the Tequesta Public Safety Officer was held via RingCentral Video Conference as permitted by Executive Order 2020-69 on August 3, 2020. The meeting was called to order at 8:30 a.m. ROLL CALL A roll call was taken by Pension Administrator A.C. Lovingood. In attendance at the meeting were: Chairman Ed Sabin, Secretary John Terzakis, Trustee Kristopher Cowles, and Trustee Ray Korkowski (Joined at 8:51am). Also, in attendance were Attorney Bonni Jensen, Pension Administrators A.C. Lovingood and Scott Baur, Investment Monitor Jennifer Gainfort, and Amed Avila with Fiduciary Trust. VILLAGE MANAGER REQUEST Albert Lovingood informed the Board that he had received a request from the Village Manager that all Pension Plan Board Meetings be held via Video Conference until Palm Beach County enters Phase II of reopening from the COVID-19 Pandemic. APPROVAL OF AGENDA The Board reviewed the agenda. MOTION: Secretary John Terzakis made a motion to approve the Meeting Agenda as presented for August 3, 2020. Trustee Kristopher Cowles seconded the motion, which carried by a 3-0 vote. APPROVAL OF MINUTES 1. Tequesta Public Safety Quarterly Meeting Minutes May 4, 2020. The Board reviewed the Quarterly Meeting Minutes dated May 4, 2020. There were a few minor errors noted. MOTION: Secretary John Terzakis made a motion to approve the Quarterly Meeting Minutes dated May 4, 2020 as amended. Trustee Kristopher Cowles seconded the motion, which carried by a 3-0 vote. PRESENTATION 2. Quarterly Performance Report as of June 30, 2020 - Jennifer Gainfort, And Co Consulting Page 1 of 4 Jennifer Gainfort reported to the Board that onMarch 31, 2020, the $15,580,802 and as of June 30, 2020 the assets of the Plan closed at $17,810,703. The asset allocations targets were reviewed with the Board and Ms. Gainfort stated that she does not see a need to rebalance the Plan at this time due to the volatility in the market. For the second quarter, the Plan had a total of $160,638 in contributions, $66,474 in distributions, management fees totaled $6,645, and other expenses totaled at $10,484. The income for the quarter was $66,888 and the total capital gain for the quarter was $2,085,978. For the quarter ending June 30, 2020, the trailing returns were 13.78% compared to the benchmark of 14.09%, the fiscal year to date returns were 2.89%, compared to the benchmark of 4.19%. The one-year returns were 3.82%, compared to the 5.16% benchmark. The three-year returns were 6.62%, compared to the benchmark of 7.42%, the five-year returns were 6.21% versus the 7.43% benchmark, and the total returns since inception was 6.58% versus the 6.80% benchmark. Ms. Gainfort then reviewed the individual managers, noting that both Vanguard, Europacific, and Garcia Hamilton did very well throughout the quarter. Mrs. Gainfort then reviewed the Templeton Global Total Return fund, noting that they have not been performing to the standard that she expected and recommended that the Board replace the fund with another manager. Ms. Gainfort informed that Board that she would bring a few alternative investment options to the next Board Meeting to review. Chairman Ed Sabin inquired as to how long the Plan has had Templeton, Ms. Gainfort informed Mr. Sabin that the Plan has had Templeton since October of 2013. There was a detailed discussion between Ms. Gainfort and the Board regarding the possible options to replace Templeton. 3. Fiduciary Trust Annual Presentation Amed Avila, Fiduciary Trust Amed Avila started his presentation by giving an update on the operations of Fiduciary Trust due to the COVID-19 Pandemic. Mr. Avila stated that his firm utilized their Disaster Recovery Plan to implement the ability to work remotely, noting that he never imagined using this plan for a Pandemic. Fiduciary Trust has been working remotely since March 12, 2020 and the only challenge that they have faced thus far is processing the incoming and outgoing mail due to the need of social distancing. Mr. Avila continued his presentation by informing the Board that Fiduciary Trust has made some enhancements to the frequency that they perform death searches on retirees. In the past, Fiduciary Trust has performed this search once a quarter. Now the search is performed monthly. Mr. Baur informed the Board that The Resource Centers will be sending out Alive and Well letters to all retirees for all the Plans that his firm is the Administrator for. Mr. Baur stated that these letters will go out after the COVID-19 Pandemic restrictions have subsided. Mr. Avila also informed the Board that Fiduciary Trust has launched a new statement format that contains more details and is easier to read. The last item that Mr. Avila reviewed was Fiduciary Trusts SOC-1 Audit. Mr. Avila noted that two of the three findings in the Audit were self-identified issues from the 2018 SOC-1 Audit. These two items are there due to the timing that they were discovered and corrected. Chairman Michael Rhodes asked if any of the findings were repeats and if the third finding was new, which Mr. Avila stated that they were no repeated findings and that the third finding was new and not a carryover from the last Audit and all of the findings have been corrected out. Page 2 of 4 CONSENT AGENDA 4.Ratification of Invoices Paid Since Last Quarterly Meeting Check Date Payee/Description Number Amount May 13, 2020 Pension Resource Center 1404 $ 950.00 Administrative Fees- May 2020 Inv #17884 May 13, 2020 Garcia Hamilton & Associates 1405 $ 2,264.87 Investment Mangement Fees for QE 03/31/20 June 10, 2020 Pension Resource Center 1406 $ 950.00 Administrative Fees- June 2020 Inv #17944 June 10, 2020 Klausner Kaufman Jensen & Levinson 1407 $ 3,590.00 April & May 2020 Legal Fees; Inv 25940 & 26139 July 9, 2020 Pension Resource Center 1408 $ 950.00 Administrative Fee- July 2020 Inv 18006 July 9, 2020 Klausner Kaufman Jensen & Levinson 1409 $ 690.00 Legal Fees through 6/30/20 Inv 26358 July 9, 2020 AndCo Consulting 1410 $ 4,500.00 Services for QE 06/30/20 Inv 35727 TOTAL: $ 16,505.80 5. Reporting of New Applicants for Participation in the Pension Plan There were no new applicants to report to the Board. 6. Approval of Withdrawal of Contributions The Board reviewed the Refund of Contributions for Maximillian R. Lally. 7. Terminated Employees Who have Not Yet Taken Their Contributions There were no new applicants to report to the Board. 8. Benefit Approvals for Retirements There were no Benefit Approvals to report to the Board. MOTION: Secretary John Terzakis made a motion to approve the Consent Agenda as Presented. Trustee Kristopher Cowles seconded the motion, which carried by a 3-0 vote. Page 3 of 4 NEW BUSINESS 9.LEGISLATIVE UPDATEAttorney Bonni Jensen, Klausner, Kaufman, Jensen & Levinson A. Jensen Legal Updates Attorney Bonni Jensen informed the Board that the ability to have the Pension Board Meetings held electronically has been extended by the Governor through October 1, 2020 and that her office will monitor any future extensions that are made. B. GRS Actuarial Agreement Addendum 06-19-2020 Mrs. Jensen provided the Board with the GRS Actuarial Agreement Addendum that updates the fee that GRS charges the Plan for their Actuarial Valuation that was agreed upon at the last Board Meeting. MOTION: Secretary John Terzakis made a motion to approve the GRS Actuarial Agreement Addendum dated 06-19-2020. Trustee Kristopher Cowles seconded the motion, which carried by a 3-0 vote. 10. ADMINISTRATIVE REPORT A.C. Lovingood and Scott Baur, Resource Centers A. 2021 Proposed Board Meeting Dates Mr. Lovingood presented the Board with the 2021 Proposed Board Meeting Dates. Mr. Lovingood informed the Board that the dates are based on how the Board has historically held the Board Meetings with the alternating times with the General Employees Quarterly Board Meetings Chairman Ed Sabin thanked Mr. Lovingood for being proactive on preparing the 2021 Board Meeting Dates and the Board did not see any issues with the proposed meeting dates. ANY OTHER MATTERS There were no other matters to discuss at this time. PUBLIC COMMENT There was no public comment. ADJOURNMENT There being no further business, the meeting was adjourned at 9:38 AM. Respectfully submitted, ________________________ Board Member Page 4 of 4