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HomeMy WebLinkAboutDocumentation_Regular_Tab 07_07/14/2005 TEQUESTA GENERAL EMPLOYEE5' PENSION TRUST FUND . REGULAR QUARTERLY BOARD OF TRUSTEES MEETING MAY 10, 2005 I. CALL TO ORDER AND ROLL CALL The Tequesta. General Employees' Pension Trust Fund Boazd of Trustees held a regular quarterly meeting in the Emergency Operations Center (EQC) of the Tequesta. Public Safety Facility, 357 Tequesta Drive, Tequesta, Florida, on May 10, 2005. The meeting was called to order at 10:30 a.m.: A roll ca11 was talcen by Betty Laur, Recording Secretary. Boardmembers in attendance at the meeting were: Chair Jef� Newell, Secretary Tom Paterno, Boazdmember Carl Hansen and Boazdmember Bob Garlo. Also in attendance were proposed new boardmember Cazol Lux, Attorney Bonni Jensen, Consultant Joe Bogdahn, Pension Coordinator Gwen Carlisle, and Accounting Manager Patrice Maqueda. II. APPROVAL OF AGENDA MOTION: Boardmember Hansen made a moti.on to approve the agenda with items A and C on the consent agenda to be palled for discussion as requested by Boardmember Paterno. Boardmember Garlo seconded the motion, which carried by unanimous 4- 0 vote. � III. APPRO�AL OF NEW MEMBER OF THE BOARD MOTION Boardmember Garlo made a motion to accept Carol Lux as new employee representative to filt the vacancy created by the resignation of Greg Corbit� Motion � was seconded by Boardmember Hansen and carried by unanimous 4-0 vote. BOARD OF TRUSTEES TEQUESTA GENEItAL EMI"LOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINiTrES May io, 2005 � PAGE 2 IV. A.PPROVAL OF MINUTES MO_ Boardmember Hansen made a motion to approve the minutes of the February 14, 2045 meeting as submitted. Boardmember Garlo seconded the motion, which � carried by unanimous 5-0 vote. MOTION: Boardmember Paterno made a motion to approve the minutes of the March 14, 2805 meeting as submitted. Boardmember Hansen seconded the motion, which carried by unanimous 5-0 vote. : V, pRESENTATIONS 1Vlomtor's Quarterly Report (January-March 2UQ5) - Joe Bogdahn, Monitoring Consultant, reported the account reconciliation sta.rted with $489,000 and the ending � value was $508,000. The account was up 4.94% after fees, and had beaten the index, which was up 4.47%. Northstar's combined performance for the last quarter had been minus 5%. Mr. Bogdahn reviewed other percentages and comparisons, and reported he had provided Finance Director Forsythe with a spreadsheet and memo outlining different custody'pieces. Boardmember Paterno commented he had previously brought up the subject that a custodian was needed, the ather fund was using Salem Trust, and so faz the comfort level with A. G. Edwazds was lower than the board would like. Ms. Maqueda commented A. G. Edwards was very reluctant to talk to her and wanted to refer her to Rockwood because the pensiori fund was not their customer, so she really could not speak to the kind of service they would provide. Discussion ensued. Mr. Bogdahn advised the board did not have a custody agreement with A. G. Edwazds at this time. Consensus of the Boazd was that a custodian was needed, either A. G. Edwazds Trust or Salem Trust, and the board requested investigation by Mr• BoSdahn and the Finance Department to decide which the Finance Department would be comfortable with. Boardmember Paterno commented if it was Salem Trust, since they were custodian for Public Safety Officers' pension fund, they might discount their fee, which might make it easier to decide--especially if it was $1750. , : a �I t :� 7 � BOARD OF TRUSTEES ` I TEQUESTA GENERAI.. EMPLOYEES' PENSION TRUST FUND :; REGUIIAR. QUA.RTERLY MEETING MINUTES May io, 2005 � PAGE 3 VI. UNFINISHED BUSINESS ' : (a) Approval of payment of 55,918.56 to Public Safety Officers' Pension Fund to reimburse their payment made in error of cantributians to Janet Lampher, Police Dispatcher. Pension Boazd Coordinator Cazlisle explained that in May of 2004, the Public Safety � Officers' Pensian Boazd had paid contributions to Janet Lampher, who was a police dispatcher, and she had actually been in the General Employees' Pension Fund, since police support staff was in the General Fund. Ms. Maqueda explained this was discovered through the course of tlie internal audit, so it was already established as a liability of this board in the CAFR. MOTION Boardmember Hansen made a motian to approve reimbursement af $5,918.56 to the Public Safety Officers' Pension Fund for reimbursement of payment of contributions to Janet Lampher. Boardmember Garlo seconded the motion, which carried by unanimous 5-0 vote. (b} Report by Finance Department regarding answers to questions the board asked Mr. I�oltgrieve of Rockwood in their conference call at the last meeting and discussion of check writing procedure to pay bills Accounting Manager Patrice Maqueda provided a handout to the board which was a copy of the e-mail she had sent fo Rockwood Capital on March 28, 2005 requesting items the Finance Department needed for an audit trail. Ms. Maqueda reported the following items had not been satisfied: (4j all contributions and deposits, (6) any interest earnings or dividends, and (7) realized and unrealized gains or lasses. The only response to her e-mail had been information from Tony Brown of Rockwood when he appeared unannounced in the Finance offices right after she had sent the e- mail. He was familiaz with what they needed and why they needed it. A lot of the information was needed in order to file the State report for the fund. Regarding item 4, Ms. Maqueda explained that contributions and deposits were lumped tog�ther with no detail given for this on the March statement, so she could not verify the amount of the Village's contribution was correct. The number on the statement included some other type of earnings. Interest earnings and dividends � � BOARD OF TRUSTEES TEQUESTA GENERAI� EMPLOYEES' PENSION TRUST FUND ; REGULAR QUARTERLY MEETING MINUTES � May io, 2005 � PAGE 4 - a were not cleazly refleeted. Realized and unrealized gains or losses were not reflected at all. Ms. Maqueda reported she had been able to reconcile the March statement down to a$3,400-$4,400 variance, which she suspected to be an unrealized toss, because the bond fund had suffered an overall d�crease. Since she could not verify this, it was not something she would put in writing in a report to the boazd. Ms. Maqueda indicated the Finance Department was doing as much as possible to help facilitate this, but unfortunately, did not have sufficient staff to devote as much time as the board felt was necessary or would like, and she ha.d been working this into her . regular schedule and would continue to do so. Chair Newell expressed the boazd's appreciation, and asked if Ms. Maqueda aud Finance Direetor Forsythe had come to any kind of consensus regarding the check writing procedure, or if that had been settied. Ms. Maqueda reported that had not been settled. She had gone to Independent Community Bank and asked for basic information to shaze with the boazd. This bank offered wkat was called a Freedom business account, for which there would be no charge if a minimum $750 balance was maintained and there were no more than 50 debits in a statement cycle. The boazd would have to decide how much minimum balance they would want to keep and the mechanism—whether to have contributions go directly into that account and then go to A. G. Fdwards Trust, or have the contributions go to A: G. Edwazds Trust and then wire from A. G. Edwards to maintain a minimum balance. Ms. Maqueda advised to keep in mind there was a separate Payroll Department within the Finance umbrella and internal control mechanisms were in place, so that when the payroll specialist cut a check to any of the garnished vendors, whether it was child support, court item, or pension, that was hazd coded and she could not randomly change the payee, and if every contribution went into Independent Community Bank there would be a delay getting to A. G. Edwards and getting the money invested. The payroll specialist could not change it and say, this month we have enough money in Independent Community Bank so we'll send the pension contributions d'uectly to A. G. Edwards, which would be an intemal control nightmare. : Chair Newell expressed his opinion that the contributions needed to go directly to Rockwood for investment and asked Joe Bogdahn when transferring money to the checking account from the custodian, what kinds of problems and deiays would be experienced. Boazdmember Garlo asked when the board decided on a custodian could the custodian have a mechanism to take caze of this. Mr. Bogdahn advised the custodian could write the check, but they had additional check charges. Boardmember Garlo commented it would be more straightforward than the �current BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAI2 QUARTERLY MEETING MINUTES May io, 2005 � PAGE 5 situation, and could be agreeable, and if so, no account would be needed at the bank. Mr. Bogdahn explained when a bill was received, it could be signed off with one or two signatures as required for approval and sent to the custodian for payment. 1vls. Maqueda advised that the Public Safety Officers' pension boazd had decided to use Salem Trust, who charged $15 per disbursement, as their custodian for the present time. Mr. Garlo asked if that was a better way for this board to go, to which Mr. Bogdahn responded the discussion at the Public Safety Officers' meeting was that it would cost more money but would make it easier for the Finance Departinent, however, it was less impact on the Public Safety Officers' fund than it would be on the General Employees' fund because theirs was a lazger fund. Mr. Bogdahn commented it was a decision th�s boazd needed to make keeping in mind the question of whether the Finance Department would be willing to operate a checking account for the fund. Mr. Bogdahn explained that if deposits were being made on the 1�` and . 15�', and if through this process were delayed so that they were being made on the 7"' and the 21 statistically in dollar costs averaging over time it would make no difference to the investments. Attorney Jensen clarified that Chair Newell was asking about bringing the funds back, and liow would it work to bring back an amount into the bank account to cover expenses. Mr. Bogdahn responded the Village would just make a check request to be payable to the pension fund from A. G. Edwards Trust to be deposited in the bank account, and it would be done within three business days. Ifit were wired, it would be received the next day. Mr. Bogdahn stated he did not know the fee schedule for that service. Mr. Garlo asked if as a matter of policy it was better to have the custodian do the disbursements than the Village. Mr. Bogdahn replied the auditing firms he had spoken to usually frowned on having a separate checking account where somebody could write a check on behalf of the pension fund; however; Ms. Forsythe had a good point, what was the difference in somebody writing a check or sending an � authorization to the custodian to have them write a check. Boazdmember Paterno indicated he felt all the checks should go to the same account and from there be disbursed to Rockwood or come back if needed, because an auditing trail with a set chain of command was needed. Boardmember Paterno suggested having money come back for the checking account only once a month. � Chair Newell commented he was comfortable with that because the money was being put to work, even though some would be pulled back to cover expenses, but he wanted to be sure Finance was okay with that. Ms. Maqueda responded--as long as the board had established policies and procedures as faz as limitation, signers, BOARD OF TRUSTEES . TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May io, 2005 � PAGE 6 � frequency. Chair Newell asked who would actually make the check request. It would have to be a decision coming from the boazd; using as an example, Sandra was going to be leaving employment in 4-5 weeks and a payout would have to be made to her, and would the boazd have to sit to authorize the request. Ms. Maqueda responded she was not on the board, so could not presume to act on the board's account without the'ir direction. Attorney Jensen advised the board would decide who they had as authorized signers—Public Safety Officers' board only had board members as authorized signers, but some boazds had the Pension Coordinator as an � authorized signer along with a trustee to be allowed to make these kinds of requests in order to run the day-to-day operations. Chair Newell confumed with Attorney Jensen that the boazd could give authorization to signators for certain specific requests. AtEorney Jensen advised that refunds and contributions were what lots of boards had processed in between meetings. Chair Newell statec� he was comfortable with that, but there were four other members of the board. Attorney Jense� advised there were many things the board`could do, they just had to set up procedures for them. Boardmember Paterno commented in order to make a disbursement, the boazd had to approve a disbursement, so he thought the board would have to make apolicy that said when you leave or resign, within so many days before the next boazd meeting, say 15, you must have the papers tuined in, signed, to the appropriate person so that at the baard meeting the members could just say, yes: Anybody who-wanted their money°should have to wait until the next board meeting. They would have to wait for a quarterly meeting, and a policy needed to be made that their papers must be turned in to HR at least 15 days, or 5 days, or one day before the board meeting, whatever the board decided, but the resporisibility would be put on the employee to . get their paperwork in to be approved. The timing was discussed. Ms. Cazlisle noted the agenda went out at least one week before the meeting. Mr. Garlo commented they would have to get the papers in in time to get on the agenda, or if they did not, they would just have to wait for the next agenda. Mr. Bogdahn suggested a deadline of fihe end of the quarter. Mr. Paterno asked if the meeting dates were going to be changed, because that would dictate what was done regarding this item. Discussion ensued. Mr. Newell commented the board would get to that later. Chair Newell asked Ms. Maqueda what she and Ms. Forsythe recommended to the . board concerning the items 4, 6 and 7 that she was still having problems resolving. Ms. Maqueda stated she could not reconcile the accounts because data was missing. soax�u oF �.usTEEs TEQUESTA GENERAI. EMPLOYEES' PENSION TRUST FUND REGUI�A�R QUARTERLY MEETING MINUTES May so, 2005 � PAGE � � Mr. Bogdahn commented once a custodian was set up, they would take care of #4. Regazding items 6& 7, because this was a commingled fund, just like a mutual fund, you would not see unrealized gains and losses. You might see a dividend issued by that fund; but in many cases especially on the commingled side, it was taken care of and was the difference between the beginning mazket value and the ending market value. The dividends were reinvested and you would not see an unrealized gain and loss report. You would only see those if shares were sold. Mr. Newell commented he was trying to get a comfort level for Finance, keeping them in the loop, so they got the information they needed. Discussion ensued. Ms. Maqueda commented she had beginning unit vaiue and ending unit value, but the number of units had changed, so she could not calculate per sharc—it depended on when additional shazes were purchased and at what price. Ms. Maqueda indicated it was her uriderstanding that in � the past the function of the Finance Departrrient with the pension fund was as a facilitating bookkeeping function, but now the person doing the reconciliation_ was being asked to do wha.t appeared ta her to be a pretty cornplex calculation, and if there was a formula why couldn't Rockwood provide that data. Mz�. Bogdahn commented �if you looked at the Wachovia or Salern Trust statements, and you bought 1Q shares of: Microsoft at 30; the next month you bought 10 shazes of Microsoft at 20; the next month 10 shares of Microsoft at 25, when you looked at your month-end value at the end of that third month it would:have your average cost based on the number of shazes you purchased and their price. Once a custodian was in place fhe eustodian statement shauld provide the information the Finance Department was looking for in order to reconeile. In this case, raw data eame from the commingled fund which was doing it for the board's account and for all the other accounts they had and just breaking out beginning and ending numbers of shares in a value to you, and were not doing intermediate steps that a custodian would do. Until a custodian was in place, the Finance Department would not get data. that was easy to reconcile. The custodian . would show realized gains and losses, and would provide mazket values. Chair Newell asked where tlus boazd stood in selection of a custodian. Ms. Maqueda responded at the last meeting the board had placed a conference call to Rockwood, a short laundry list was requested, they were to get back to Ms. Forsythe. Nobody had gotten back to the Finance Department from A. G. Edwards: That had prompted her e-mail to Rockwood. Ms. Maqueda reported all assets were transferred from Wachovia to Rockwood and although there had been a delay, that had resulted in a $2,000+ gain. Chair Newell commented he heard the concerns, but this boazd needed to decide on a BOARD OF TRUSTEES TEQUESTA GENERAI� EMPLOYEES' PENSION TRUST FUND REGUI..AR QUARTERLY MEETING MINUTES May �o, 2005 . PAGE 8 custodian between A. G. Edwards Trust or Salem Trust. Mr. Bogdahn suggested the custodial fees became more crucial when there were retirees that were being paid. There currently were none, so his suggestion was to go with A. G. Edwards and if they did not work out to change to Salem Trust. Chair Newell sta.ted if A. G. Edwazds was chosen as custodian he did not want to see. them relax and get off the issue with Finance. They must satisfy Finance and give thern the information they needed, and if the board decided to do business with them he wanted to hear from them that they were going to meet the requirements that Finance was asking for. �oardmember Paterno recommended that Jody, Patrice, and Joe be given two weeks to have:an answer, the board would hold a special meefing and it would be decided. It was noted that Ms Forsythe would be back in a week. Boardmember Paterno stressed to Mr. Bogdahn that his particigation was needed in this to get the answers as faz as quality of service with A. G. Edwards, so that this would not linger and it would get done. Mr. Bogdahn advised with Salem Trust, that there would be a one-month delay in data because Salem Trust did not actually hold the funds, so their Mazch statement would give the February data. That might also be true of A. G'Edwazds, and he would find out. Boardmember Hansen commented Patrice had explained earlier why A. G. Ed.wazds was reluctant to come up with answers because the Village was not their customer, and he viewed that as a virtue on their part. He saw nothing wrong with A. G Edwards, and went along with the suggestion of holding a special meeting in a couple of weeks. Ms. Carlisle commented Salem Trust might be less expensive because they were the custodian for the Public Safety Officers' fund. Mr. Paterno commented Jody had spoken very highly of Salem Trust. � Discussion ensued regazding setting a time for a conference call between Joe Bogdahn, Patriee Maqueda, and Jody Forsythe to report his findings from A. G. Edwards. Mr. Bogdahn noted it would be better for the Village to negotiate the fee because if he did it they would know he would want that fee for all the other accounts he dealt with. A conference call was set for 9 a.m. on Friday, May 13. The board discussed when they could meet. . MOTION - Boardmember Garlo made a motion to hold a special meeting of the board, without Mr. Bogdahn and Attorney Jensen present, at the EOC, on Tuesday, May 17, 2005 BOARD OF TRI7STEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES , May io, 2005 PAGE 9 at 8 a.m. Boardmember Hansen seconded the motion, which carried by unanimoas 5-0 vote. c) Consideration of approval of amended investment guideGnes Joe Bogdahn explained the value line requirements, and that those safety ratings were not used today by most investment managers. In the past, State statutes had required equities to be rated by a major rating service and that they be ranked in one of the top three classifications, but that ha.d been eliminated from the statutes in about 1998. Now there were no restrictions, and Rockwood did not use value line. It did not cover the complete range of equities. Mr. Bogdahn noted the current policy required ranking in the top three except for 20%, and he recommended no restrictions, which would be in accordance with the State statutes. DiscussiQn ensued. Boardmember Paterno was in favor ofdropping the value line requirement since it was outdated, and the other members of the boazd agreed. MOTIUN: Boardmember Hansen made a motion to amend the investment policy under Section 3, Investment Guidelines, (a) Authorized Investments (1)(a)(ii) to remove the value line verbiage of 1,2 or 3. Boardmember Garlo seconded the motion, which carried by unanimous 5-0 vote. VII. CONSENT AGENDA a) Payments to be reviewed and approved: _ Business Services Connection, Inc. $ 141.60 (Minutes of 2/14/0� Business Services Connection, Inc. $ 188.8U (Minutes of 3/14/0� Hanson, Perry, & Jenson $1,730.90 A. G. Edwards Trust Co. FAB $ 78:67 b) Approval of new applicant for participation in Pension Plan: William Mark Taylor — Meter Reader — Date of hire 5/2/05 c) Ratification of withdrawal of contributions (employees terminating employment with Village of Tequesta) ` BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGUIaAR QUARTERLY MEETING MINUTES May io, 2005 � PAGE �o (1) Scott Graham — date of termination 3/8/05 — Total $4,182.31 ($3,345.85 payout + $836.46 taxes) (2) Thomas Adams - date of termination 3/3/05 — Total $1,55$.09 ($1,246.47 payout + $311.62} Item (a) had been pulled from the Consent Agenda Boardmember Hansen inquired as to the reason €or the $78.67 payment request toA. G. Edwards, since the fund did not have a contract with them. Ms. Maqueda explained the $3.67 was the fund's pro rata share of the overall account with Roekwood: Discussion ensued. °Mr. Bogdahn indicated #here was no contract and advised not #o pay that. It was determined that the $75.00 was a legitimate chazge but Attorney Jensen advised the Board should have a letter detailing that $75,00 was � owed as a quarterly fee for the sub account. Boardmember Paterno commented in the future this should not have to be paid. MO� � Boardmember Paterno made a motion to correct the payment to A. G. Edwards _ in item (a)(3) from $78.57 to $75.00 and that Joe Bogdahn would get the $3.57 taken care of. Boardmember Hansen seconded the motion, which carried by unanimous 5-0 vote. Item (c) had been pulled from the Consent Agenda Boardmember Paterno commented there ha.d only been one signer on a letter authorizing these payments and asked if there should be t�vo signatures on a letter the same as required on a check. Chair Newell responded the board had authorized the Chair to make this on�e request., and there had been two signatures on the forms. Ms. Maqueda commented the Finance Department needed a procedure. Chair Newell recommended making a policy requiring two signatures on everything, and asked if the boazd needed to grant signatory authority to Ms. Lux. Attorney 3ensen advised she could just be added on whatever the boardmembers signed. Ms. Cazlisle commented the payout forms should state the employee's position, and Ms. Maqueda commented they should also state which pension plan the employee was in. Consensus was to have the forms changed. MO� Boardmember Paterno made a motian to approve the consent agenda. BOARD OF TRUSTEES � ! TEQUESTA GENERAL EMPLOYEES' PENSION TR.UST FUND REGUI.AR QUARTERLY MEETING MINUTES May io, 2005 . PAGE 1� ______________ _�-----_ -- - ----------------- Boardmember Hansen seconded.the motion, which carried by unanimous 5-0 vote. VIII. FINANCIAL REPORTS a) 5tatement of Accounts (January Z005-March, 2005) - Wachovia Ms. Carlisle noted the Wachovia sta.tements were for the first quarter. Boazdmember Eatemo questianed why there was money in Wachovia after January 1. Ms. Maqueda explained that when the General Employees' Pension Fund decided to pull out of : Wachovia that.was not coinmunicated to the Payroll Department for aome time, so they had followed their normal procedure with the contributions and then learned from the bank the account had been closed. The bank had agreed to deposit the check since the check had already been generated. - Consensus was to give Finance direction to write the three checks approved on the consent agenda from the Wachovia balance, and to .transfer the difference. b) Account Statements — Rockwood Capital Advisors 1VIr. Bogdahn explained the income reporting procedure for stocks that were not paying a dividend. Ms. Maqueda explained deposits went to A. G. Edwazds first but #hen appeazed on Rockwood statements. Discussion ensued. Ms. Maqueda indicated she could not tell what made up the deposits. Boardmember Patemo explained that detail would come from A. G. Edwazds, and the process would:get easier when everything got transferred. Ms. Maqueda indicated she would like more detail on the statements in order to be able to properly reconcile the statements. IX. NEW BUSINESS a) Consideration of approval of Ordinance 598 Chair Newell explained that this ordinance was prepared to amend Sectian 9, which was on page 14 of the ordinance; a member must be vested in order to receive _ disability benefits resulting from off-duty injuries. It was previously from day one. Joe Bogdahn commented on page 8, number 4, this said the three top ratings for bonds, but the Public Safety Board had changed that to four, and the investment BOARD OF TRUSTEES TEQUESTA GENERAI� EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May io, 2005 � PAGE �2 policy for this board stated four. Attorney Jensen advised the language should be changed to state "and in the case.of bonds only holds a rating of one of the four highest classifications". Ms. Carlisle commented ifthis board approved the change it could be brought up at the Village Council meeting when this Ordinance was presented for their approval, and they could approve the change or not. Ms. Carlisle also advised that the impact statement had been received from Mr. Palmquist, which would be sent out to the Village Council today, and a memo coutd be included to � advise them of that change. Conserisus was to include the mema MOTION Boardmember Hansen made a motion to accept and approve Ordinance 598 with the amended language of item 4 on page S. Boardmember Paterno seconded the motion, which carried by unanimous 5-0 vote. b) Discussion of FRS - � Chair Newell commented there was a lot of interest in this. Boazdmember Gazlo commented he had the FRS numbers for next year. Chair Newell expressed his opinion that the first step should be a survey of interest of the employees to determine how many really were interested. Boardmember Hansen asked if there would no longer be a boazd. Chair Newell commented there were options. If this pension fund remained in place, : :employees might be given the option of choosing which plan they wanted or to be in both, - and in that case the boazd would remain intact. Attomey Jensen reported that last week she had been in a meeting where a city was interviewing FRS and asking questions. Attorney Jensen reminded the boazd that it was their fiduciary duty to act in the best interest of the employees; therefore, termination of this pension plan would have to come from another source, in this case Village Council. If that happened, everybody in the plan would be vested. If the Village decid�d to transfer assets ta another plan, then everybody in the plan had to give up what they had. They would be entitled to a refund of their contributions. The Village would take back what it put into the fund and would then decide how many years they wanted to buy, but must buy the same number of years for everybody. The Village would have to pay any costs. Members with more than what the Village was buying could purchase more, based on the contribution rate at the time and a 6-1 /2% interest rate. Past service with the Village—they could buy up until the date they terminated employment. Members would have a ehoice of whether to remain in the plan or go to Florida retirement. Boazdmember Paterno commented this conversation was a moot point since this was something the board had no power to do, and could not even recommend it to the Village Council. Chair Newell advised he was only asking the boazd 3 BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGUI.AR QUARTERLY MEETING MINUTES May io, 2005 � PAGE lg for a survey o€ interest for the members of this pension fund. Attorney Jensen advised - that this boazd could not approach the Village Council about termination ofthis plan, but the employees eould ask them. Ms. Carlisle commented when she worked at Wellington, they had the choice of transferring, and FRS came in and talked individually to employees and told them the benefits of staying_in their plan or of going with FRS, and expressed her opinion it wauld be in the best interest of the employees for HR to have someone &om FRS come in to do an apples-to-agples comparison to educate the employees. Mr. Gazlo advised the FRS benefit rate was 1.I6% and the cost was 7.83%. The Village was currently paying 8.73°lo for the General Employees' plan, and the employees were contributing 5%. Mr. Bogd�hhn gave an example of an employee who retired and it would take nine yeazs for their FRS benefit to equal what it would be under the present plan. Ms. Carlisle commented that was not necessarily true, because the employees would not have to contribute their 5% and could invest that elsewhere to possibly make up or exceed the difference. Attorney Jensen explained under FRS an employee could go to another. town that had FRS and still be a member. Boardmember Hansen recalled several yeazs ago when he was on the Village Council the Village had left FRS because at that time the cost was so high. Attorney Jensen advised that the real issue was control=with FRS the Village had little control—and at that time the FRS ra.te had been very high--17%, and had planned to go to 22%. Boazdmember Patemo noted that from 1984 through 2000 FRS had been very high, but recently their cast had come down. Ms. Carlisle commented that ` naw FRS had both defined benefit and defined contribution plans, wluch was a recent change, and members had an option to change that plan once or twice during their lifetime, Ghair Newell commented this was really a closed issue for the board and it was up to HR to determine what they wanted to da Boardmember Hansen asked who would inform the employees. Boazdmember Paterno expressed his opinion that this boazd could do nothing, and HR could do nothing without Village Council's approval. ChairNewell commented it was cleaz this board could do nothing on this issue, so that ended the discussion. X. ANY OTHER MATTERS Chair Newell commented on page 8 of the Administrative Rules, Duties of the Secretary, was a lot. Attorney Jensen pointed out from discussion at the last meeting item "H" had been added which said items "B" through "G" may be delegated to the pension coordinator. Attorney Jensen commented from the board's discussions today it sounded like other items needed to be added because the board was talking about processing payments, how they wanted to process refunds of contributions, how they wanted to do BOARD OF TRUSTEES TEQUESTA GEN�ItAI. EMPLOYEES' PENSION TRUST FUND REGULAR QUAR.TERLY MEETING MINUTES May io, 2005 . PAGE �4 benefit agplications, how they wanted 15 days in advance, and that information should be in the administrative rules so it could be provided to the Finance Department and the Pension Coordinator so they would have rules laid out. Boazdrnember Paterno commented the fifth person chosen by the boazd needed to be added also. Chair Newell asked if the board needed to give Attorney Jensen more time to make changes to the Administrative Rules or if they could be finalized today. Boardmember Gairlo asked how many changes there were. Attorney Jensen advised that they could be approved today except the information about the fifth person needed to be added, but based on the conversation today it sounded like the rules needed to be more explicit as faz as internal controls to help Finance and the Pension Coordinator as faz as knowing what the rules were, in other words, an example was that it was the board's interest to have people make. - application for refund of contributions more than 15 days before their meeting; they now wanted. to approve them and then pay the refund the contributions; a11 that and anything else Finance wanted should be added. 1VIs. Maqueda commented another. addition would • be what the board had decided was required in order to disburse funds, and then to be sure that the Finance Department was included in that process. The past procedure of Betty or Gwen notifying her what needed to be paid and when she knew where to record that, had worked well in the past. Chair Newell commented that needed to be added as well as that two signatures would be required for everything. Boardmember Hansen , commented he would like to have the opportunity to read through the administrative rules, and requested this be brought up at a later meeting. Chair Newell commented Attorney Jensen could make the changes and then the board could look at a clean document. Consensus was to ta.ble this until later and to give Attorney Jensen authority to make the changes. , � Chair Newell asked if there were any comments on tlie policy on trustee expenses. Attorney Jensen advised the IRS rate went up to 40-I/2 cents reimbursement per mile effective January 1. Chair Newell commented the Village paid 29 cents per mile, and asked if the board could set its own rate, which Attorney 3ensen confirmed. Attomey Jensen advised the board did nat have to go to the same rate as the IRS. Boazdmember ' Hansen recommended changing the wording to be that the rate would follow the IRS reimbursement rate, so whenever it changed this would not have to be changed. Attorney Jensen advised she could provide the board with the reimbursement rates publication. Ms. Carlis'le asked about the reimbursement form, which she commented did not appear to be a Village document. Attorney Jensen indicated she would e-mail the form to Ms. Carlisle. Boardmember Hansen commented he was not familiar Ms. Lux's employment with the ;� BOARD OF TRUSTEES TEQUESTA GEI�ERAL EMPL4YEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES May io, 2005 � PAGE 15 . Village. Ms. Lux advised she had worked for the Village going on three yeazs and was the Village Planner, and she worked with Mr. Newell. Boazdmember Hansen asked the status of trustee training schools. Mr. Newell responded a new schedule had been r�ceived yesterday and there was an FPTTA conference in Boca _ Raton June 26-30. Discussion ensued. Chair Newell cammented it would be a good opportunity for Carol. Mr. Gazlo had been approved in the past but was not allowed to attend, so indicated he would make that request again. MOTION Boardmember Hansen made. a motion to send Mr. Gario and Ms. Lua to the June 26-30 FPTTA seminar �n Boca Raton. Boardmem6er Paterno seconded the motion, " which carried by unanimous 5-0 vote. It was confirmed that the boazd's next quarterly meeting would be held according to their schedule on August 15, 2005. XI. COMMUNICATIONS FROM CITIZENS . There were no comments from the public. XII. ADJOURNMENT Boardmember Gazlo made a motion to adjourn, seconded by Boardmember Hansen, and . unanimously approved. Therefore, the meeting was adjourned at 12:45 p.m. Respectfully submitted, � ,C��� G����� � Betty Laur � Recording Secretary