HomeMy WebLinkAboutMinutes_Pension Public Safety_11/4/2019TEQUESTA PUBLIC SAFE
REGULAR BOARD MEETING MINUTES
November 4, 2019
CALL TO ORDER
Board of Trustees was held at the Village Hall Council Chambers, 345 Tequesta Drive,
Tequesta, Florida, on May 6, 2019. 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
Giblin.
Also, in attendance were Attorney Bonni Jensen, Pension Administrators A.C. Lovingood and
Scott Baur, Investment Monitor Jennifer Gainfort, and Investment Manager Georgette Baxer.
PUBLIC COMMENT
There was no public comment.
APPROVAL OF AGENDA
The Board reviewed the agenda and requested that.
MOTION:
Trustee Ray Giblin made a motion to approve the Meeting Agenda as amended for
November 4, 2019. Secretary John Terzakis seconded the motion, which carried
by unanimous 5-0 vote.
APPROVAL OF MINUTES
1. Tequesta Public Safety
Quarterly Meeting Minutes May 6, 2019
The Board reviewed the Quarterly Meeting Minutes for August 5, 2019.
MOTION:
Trustee Ray Giblin made a motion to approve the Meeting Minuets for August 5,
2019 as presented. Secretary John Terzakis seconded the motion, which carried
by unanimous 5-0 vote.
PRESENTATION
2. ASB Real Estate Performance Report Georgette Baxter, ASB Real Estate.
Ms. Georgette Baxter came before the Board to present the ASM Allegiance Real Estate Fund
performance. Ms. Baxter started her presentation by reviewing the firm, informing the Trustees
that there has been no turnover in staff or changes in management. The firm assets under
management as of September 30, 2019 was $8.0 billion in 20 U.S. Markets with over 16.8 million
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square feet in office, retail, industrial, and residential space. The three funds that ASB runs was
then reviewed and Ms. Baxter informed the Board that ASB is looking into opening the Meridian
Fund III. The investment objective of the ASB Allegiance Real Estate Fund is to achieve full cycle
risk-adjusted out-performance through long-term net operating income growth within a core equity
portfolio. The fund targets major U.S. Metros with economic growth engines, supply constraints,
and demonstrated liquidity. The fund gross return since inception is 6.29%, the three-month
return was -0.55% with a year to date return of 2.87% and a one-year rate of return of 4.36%. Ms.
Baxter then reviewed the fifteen-year analysis of the fund with the Board. The repositioning was
then reviewed, Ms. Baxter informed the Boar
suddenly filed bankruptcy and vacated the retail building located at 15 E. Pak Street in Chicago
Illinois. The building has a 100-walk score and a 92 transit score, and the plan is to turn the space
into a mixed-use office and retail space in addition to maintaining restaurant use on the top floor.
The portfolio took the full write down in the third quarter to account for the losses and it will take
15-18 months to stabilize the space. The Performance Prospective NOI Growth was then
reviewed with the Board where Ms. Baxter noted that that commencements of approximately
$26.3 million are projected over the next four quarters. The near-term growth opportunities related
to current vacancies and lease rollovers were reviewed with the Board, noting that the discounted
leases that were signed during the recession are coming due for renewal. Ms. Baxter concluded
her presentation by informing the Board that ASB Allegiance Real Estate Fund is a diversified
portfolio of high-quality urban assets with 93% occupancy that is very well positioned for NOI
growth, with active Portfolio management, moderate risk profile, and consistent leadership
producing long-term track record. Chairman Ed Sabin asked Ms. Baxter to explain what
Workforce Housing is. Ms. Baxter informed the Board that in the portfolio, they have some
investments in Workforce Housing which is a form of government subsidized housing that is
located close to large commercial, industrial, and retail sectors as a means to provide affordable
housing in areas where the cost of living exceeds the ability of the local workforce. The Board
thanked Ms. Baxter for your presentation.
3. Quarterly Performance Report as of September 30, 2019 - Jennifer Gainfort, And Co
Consulting
Ms. Jennifer Gainfort reviewed the market stating that broad asset class returns were mixed
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during the 3 quarter of 2019 with both US large cap equity and fixed income indices extending
their year-to-date gains while US small cap and international indices declined. Volatility was high
during the period as investors weighted the effects of the ongoing trade disruption and slowing
global economic data against the announcement of several new central bank stimulus measures.
Ms. Gainfort then reported the
assets were at $15,853,970 and as of September 30, 2019 the assets grew to $16,370,561. 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. For the third quarter of 2019, the Plan had a total of
$476,599 in contributions, $66,474 in distributions, the total expenses for the quarter was $18,426
and $6.188 in management fees. Income for the quarter was $65,483 and the total capital gain
for the quarter was $65,598. For the fiscal year to date, the Plan had a total of $1,094,748 in
contributions, $271,582 in distributions, the total expenses were $80,012, $25,770 in management
fees, $289,729 in income, and the total capital gains was $266,761. For the quarter ending
September 30, 2019 the trailing returns were 0.82% compared to the benchmark of 0.93%, the
fiscal year to date returns were 3.55% compared to the benchmark of 4.75%. The one-year
returns were 3.55% compared to the 4.75% benchmark, three-year returns were 8.17% versus the
benchmark of 9.09%, five-year returns were 6.90% versus the 7.42% benchmark, and the total
returns since inception was 6.71% versus the 6.86% benchmark. Ms. Gainfort then reviewed and
commented on individual manager performance, stating that there are no recommendations at this
time and that she does not see a need to rebalance the portfolio. Chairman Ed Sabin inquired to
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what the Assumed Rate of Return is for the Pension Plan, Ms. Gainfort confirmed that the current
Assumed Rate of Return is 7%.
CONSENT AGENDA
4. Ratification of Invoices Paid Since Last Quarterly Meeting
The Board reviewed the ratification of invoices paid since last quarterly meeting.
VILLAGE OF TEQUESTA PUBLIC SAFETY PENSION FUND
WARRANT - PAID INVOICES
NOVEMBER 4TH, 2019
TO: Resource Centers, Plan Administrator
Board of
FROM: Trustees
Paid by Custodian:
Fiduciary Trust International $ 2,403.81
Custodian Fees for QE 09/30/19
Date Payee/Description Check Number Amount
August 15, 2019 Pension Resource Center 1373 $ 950.00
Administrative Fees- August 2019
August 15, 2019 Garcia Hamilton & Associates 1374 $ 1,872.44
Management Fees for QE 6/30/19
August 15, 2019 Gabriel Roeder Smith & Company 1375 $ 5,900.00
Actuarial Services Rendered through
06/30/19
August 15, 2019 Klausner Kaufman Jensen & Levinson 1376 $ 1,351.50
Legal Services Rendered through 07/31/19
September 12, 2019 Pension Resource Center 1377 $ 950.00
Administrative Fees- September 2019
September 12, 2019 Klausner Kaufman Jensen & Levinson 1378 $ 1,529.75
Legal Services Rendered through 8/31/19
October 11, 2019 Pension Resource Center 1379 $ 950.00
Administrative Fees- October 2019
October 11, 2019 Klausner Kaufman Jensen & Levinson 1380 $ 371.00
Legal Services Rendered through 09/30/19
October 11, 2019 AndCo Consulting 1381 $ 9,000.00
Performance Monitor Fees for 2nd & 3rd Qtr
2019
October 11, 2019 Gabriel Roeder Smith & Company 1382 $ 1,500.00
Actuarial Services Rendered through
8/31/19
October 23, 2019 Gehring Group, Inc. 1383 $ 4,763.79
Fiduciary Liability Policy Renewal 10/1/19-
10/1/20
TOTAL: $31,542.29
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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:
Trustee Ray Giblin made a motion to approve the Consent Agenda containing the
Warrant dated November 4, 2019 and the Benefit Approval dated November 4,
2019 as presented. Secretary John Terzakis seconded the motion, which carried
by unanimous 4-0 vote.
NEW BUSINESS
9. Legislative Update Attorney Bonni Jensen, Klausner, Kaufman, Jensen & Levinson
A. Summary Plan Description
Attorney Bonni Jensen presented Summary Plan Description to the Board for review and
informed the Board that she will be sending a clean copy. Ms. Jensen noted the managers
updated on page 14 and Trustee Ray Giblin noted that the multiplier is incorrect, and that the
ordinance needs to be updated to reflect the change in the multiplier. Ms. Jensen stated that she
will incorporate the cancer presumption into the Summary Plan Description.
B. Jensen Memo Divorce
Ms. Jensen reviewed the Divorce Memo with the Board that should be given out to any members
who are going through a divorce. Ms. Jensen noted that the Pension Plan is not covered by
ERISA, and for this reason, the Pension Plan is not required to and cannot honor Qualified
Domestic Relation Orders (QDROs).
C. Police Officer Transition into Pension Plan
Ms. Jensen informed the Board that these has been several issues that came to light after the
rollover of funds for all police officers opting into the Pension Plan. Some of these issues include
retirement plans outside of the Village contributions being rolled into the Pension in error.
D. Jensen Memo Statutory Death Benefits and Expanded Definition of Home Address
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Ms. Jensenreviewedthe statutory Death Benefits and Expanded Public Records Exemptions
Memo with the Board. Ms. Jensen noted that effective July 1, 2019, SB 7098 increases the
statutorydeath benefit for Public Safety Officers as follows; Accidental Death Benefit of
$75,000.00, Emergency Death Benefit of $150,000.00, and Intentional Act Death Benefit of
$225,000.00. In addition to the statutory death benefits set forth, spouses and children are
entitled to receive educational benefits, which include the waiver of tuition and educational
expenses while obtaining a career certificate, undergraduate education, or post graduate
education at a state educational institution. The second item that Ms. Jensen reviewed was
SB248/Chapter 2019-12 noting the updated changes and exemptions for home addressed under
Floridas Public Record Law, which was reviewed with the Board.
E. Jensen Memo Changes in Tax Rules for Alimony
Ms. Jensen reviewed the Changes in Tax Rules for Alimony Memo with the Board, noting that alimony and
separate maintenance payments are no longer deductible for any divorce or separation agreement
executed after December 31, 2018, or for any divorce or separation agreement executed on or before
December 31, 2018, and modified after that date.
ADMINISTRATIVE REPORT
10. Resource Centers Memo Resource Centers SOC-1 Audit and Cyber Security
Scott Baur Scott Baur presented the Board with a memo regarding The Resource Centers SOC 1
Audit and Cyber Security. Mr. Baur started his discussion with Cyber Security Measures
mentioned in his memo. He informed the Board that the information is only a general overview of
The Resource Centers current security procedures that are in place to prevent a cyber security
breach within the company. He noted that due to the Board Meeting being a public meeting per
the requirements of Florida Sunshine Laws, some of the safety steps taken are not mentioned in
the memo, however, if any Trustee would like more details on the steps taken, The Resource
Centers would be more than happy to schedule a meeting to review these details. Mr. Baur then
reviewed The Resource Centers SOC 1 Type 2 Audit noting that not all Pension Plan
Administration firms have a third party come in and perform this type of audit. The SOC 1 Audit
results had no findings or exceptions found, which means that all The Resource Centeries
and Procedures are being followed correctly. Mr. Baur informed the Board that The Resource
Center has $3 Million in cyber liability coverage across three separate insurance providers and is
looking into increasing the cyber liability coverage.
ANY OTHER MATTERS
11. Cyber Certificates
The Board was presented with the Cyber Security Certificates for The Resource Centers, AndCo,
Klausner Kaufman Jensen & Levinson, Gabriel Roeder & Smith, and Fiduciary Trust for
inspection.
ADJOURNMENT
There being no further business, the meeting was adjourned at 10:15 AM.
Respectfully submitted,
________________________
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Board Member
Village of Tequesta Public Safety
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