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Home My WebLink AboutDocumentation_Regular_Tab 04B_11/16/2000 � � TF `� tr VILLAGE OF TEQUESTA ` Post Office Box 3273 • 250 Tequesca Drive • Suice 300 �'� a Tequuta, Florida 33469-0273 • (SG1) 575-6200 �; o Fax= i5G1) 575-G203 _ � �� - y TEQ�TESTA FUBLIC SAFETY OFFICERS' PENSION TRUST FUND BOARD OF TRUSTEES MEETIN� JUNE 7, 2000 I. CALI� TO ORDER AND R07�L CALI, The Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees h.eld a regular meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Wednesday, June 7, 2000. The meeting was called to order at 9:02 A.M. by Mayor Joseph N. Capretta. A roll call was taken by Betty Zaur, the Recording Secretary. Boardmembers in attendance at the meeting were: Mayor Joseph N. Capretta, Fire Chief James Weinand, Police Department Representative Ron Relly, and Acting Village Manager Joann Manganiello. Also in attendance were Attorney John McCracken sitting in for Village Attorney John C. Randolph, Loamis, Sayles & Company representative Peter V. Van Beuren, and Department Heads. II. APPROVAL OF A�GENDA Boarc�me�r Weinand requested that item l0A be m�ved up to item 3 in order to have a fifth member of the board for votinq purposes at this m�e�etinq, Acting Village Ntanager Manqaniello explained that the fifth member would not be able to vote since he or she must first be apprcved by Villaqe Ccun�il, Attorney MeCracken conaurred; therefore the �genda item was not moved. Acting Village Manager Manganiello requested. that a letter from the Division of Retirement be added under Any Other Matters. Boardmember Joann Manganiello made a motion to approve the � aqenda as amended. Boardmember James Weinand seconded the motion. The vote on the moti.Qn was: Recycled Paper HO�ARD 4F TROSTEES T��IJESTA PUBLIC SAF'STY �FFICERS� PENSION TRIIST FUND 1�:TTINC� MINUTES JUNE 7, 2000 PAGL 2 Joseph N. Capretta - for Sames- �e: � r - for Ron Kelly - for Joa�n 1�nc�a�iel�lo - for The motion was therefore passed and adopted and the Aqenda wa$ appraved as am�nded. III. ORIENTATiON - JOHN B. �N, E3�TIRE, JONE3, FO$TER, 3o�xs� s s�ss At:�orney M�Cra�l�e� adv�sed that thas Boarc� was authorized b� an Ordinance adopted by the Village Cauncil, a capy of which had beei� included i.n the. pack�ts.. R.espox�;sibi.lity of the Board was to invest and maintain the pension plan of the Police Qf��ers � Fire�iqh�e�s,.. ��o�e, the Ordinance had been structured in strict aceordance with Chapters 175 and 185 of the Florida Statutes.�.. which.ha.d been adopted by the State Legislature to assure that firefighters and police wQUld �ave adES�at� pens�an €�znds, At�orney McCrack�n asked th�t the Board bear in mind the impact of t�ie Swnshine Law, and noted .from. info�nation pra4ided h�r Villa�ge .Attorney Jo�r�. C. Randolph that the Sunshine Law was found in FS 286.Q11, whi.�h s�ate�: �� e�ings of a�� Boa�'d .v� Coaemission of any State Agency or Authority or of any Agrency or Authority of a.a�r Count�r, M�xn i C�pal corgaratiar� or politieal subdivision at whfch official acts are �o be taken are d�cla��d �o be pr�blic �r.eeting,s o,pe� to tl�e puh.lic at a.IZ times, and no resolution, rule or formal action shaZZ �be consic€ered bindinc.,�c �tce�t as ta3�en Qr made a� such 2aeetings. Attorney Mc�racken explained that there were �Chree r�guirements of �he Sunshine Law: 1. Meetings of Boards or groups must be open to the public. 2. Reasan�ble noti�e af �eetir�c�s must be given. 3. Minutes of the meetings must be �aken. . i Ba►�,xn o� �os�s TE�i3ESTA PUBLIC S�A�E.TY �FFICERS' PEN3ION TRUST FUND MEETINf3 MINUTES ' aNNL'' 7 � 2�00 PA4E 3 Attorney McCracken noted that a part of the law prohibited �wo Qr more memb�rs of th,e B4�rd €rQaE meeting outside a public meeting to discuss the business of the Board, which wa� �iffiGU.lt �� this �a.��zc�ti0n ��Ee AC�i Village Ma.nager Manganiello was a member of the Board. Attorney McCracken ac�vised that . Bo�.rd��rs ea�ld �o� di:�cuss with Acting 'Village Manager Manganiello business that was going to come I��fare �l�is Bcra,�d�� but ��e� cou�.d eon�act the Finance Director. Boardmember FiTeinand questioned whethex issues �QUld he �is-c�.s-s�d �� V�ll�qe �c��nc�l m�etings, to which Attorney McCracken responded by clarifying that discussion c.ould tal�e pla�e at �� neetix�g.. c�pe� to the public . Attorney McCracken commented that minutes must be taken at a.11 ��blic x�,ee��nq$. A�tvrney 1+�eE�a�� advised th.at any public officer who violated the Sunshine Law was guilty of a nQn-�ri.m�n�� off�x�� nc� a€�e o€ �� more tPsan $50Q could be imposed; however, it was perhaps more important th?t aEt��s ��l�e� we��. n+�t h�nd��. exc� t when taken at public meetings. Therefore, a vi.olation �f the law could m�a,n th�t ac��.on ta�ke� 1��. the Bc�a�d �st be Xescirxded, whieh could have far-reaching complications. Violation of other pczrtions af the ��r co��d �a�e sea�r� im�lications to the community, for example, leqal actions filed against the BQard ca�lc� �esal�. � the Vil�age be�ng responsible fbr reasonable attorneys' fees. Attorney McCracken advised that if Bc��rdmembers fac�se� . on �he b�zs�r�es� 4� the meetinq they should not be inhibited in an.y way, except that th+ey must . no�. m�et wit� the St��l�Qe Ma��qel�. At�arney McCracken advised that last year the I,egislature had re�ised chapters 17�. �cl, 185,� �,r�.e� Qn.�. Qf �� m��c�m.�nts was that n.o municipality could have � Board for fi.refighters or �olice offiG�rs camb�ne�t with qer�eral emp�ay .As a result, the Village had established two Boards-one for Public Safety Offi�ers �nd one €vr 6��e.��1 �loyees. � amendments also off�red the opinion for firefighters and police officers to � �ep��'�� s �f the�-- sa �esired: however, the T�questa firefighters and police officers had voted to have � eombined Board. Attarney McC=acken expl�;�ed, that tlle four Boardmembers would select a fifth member, wlho must be approved by the Va.11aqe �o�cil� and that �n tbday's �eeting elec�tion would take pla�e far a Chai�an,. Vice Chairman Secretary.for BQARD OF TRU$TEES TLQUESTA PUBLIC SAFETY OEFICERS' PENSION TRUST FUND MBLTING MINUTES JUNE 7, 2000 PAQE 4 the Board, who would have duties at meetings and regarding the bank accounts. A fitth memUer w�ould also be chosen, who would be reconunended for approval to the Village Council. Boar�ber �'oaEnr�► M�ncaaniello mad+e a motian to am�ecnd the agenda under agenda item IV, Electi.on of Officers, to inclnde election cf a Chairm�►a, Vic�e Chairman, and Secretary. Boardmember James Weinand secdnded the mation. The �e on the motion was: Joseph N. Capretta - for Ja�res �i einaad - for Ron Kelly - for Jaa�a l�aricraniella - for The mc>tion was therefore passed and adopted. Ms.yor Ca�retta discuss_ed. the S.uns'�; *�e I,aw, and commented it was an awkward situation since business of the Board could nat be dis�ussed �t� A�t�� Villaqe Manager Manganiello. Mayor Capretta advised that everything shota.ld only done at the public m�etinc�, and expla,ined tha,t th,� villaqe was in the process of trying to hire a new City Manager, which must a]..go I�� c�Qn�. �nc�,.�r �he �s�i�e &a�,�. anc,� that would mean applicants must be interviewed at public meetings, The Mayor commented that the S�}*+Gh� r� I,aw da.d not apply to members of the legislature. Boardmember Weinand questioned whethe� t�e �i:�.laqe ��Eil had po�r a��r �he pension plan, to which Attorney McCracken responded that this Board had por�rers as. outlined iA th.s prdi.�.lance and that the Villaqe Council's only involvement was they could modify the Ordi.��nEe. Boarc�m��be� We�.�� qu�stioned section 5�i i.n the Ordinance, which basically stated the Board could make recommendations =e.gaxclinq ang and a11 changes i.n the provisions of the system. Attorney McCracken �xplained.that if � B��d�e�r €e�t t��e w��, sam�thinq in the Ordinance that needed to be changed �hey were expected to make the recominendatic�n for chan.�e ta the. V; i�e �ouncil and hope they would approve the change. Boardmember Weinand 2ues��an�d �e��r that wa�.Id work �i��,. way,�, sa that if the Village Council wan.ted ta do somethinq different ��ey w�o��d , , BQARD OF TRUSTEES TEQUESTA F[ISLIC SAFETF OFFICERS' PENSI4N TRU3T FUND b�:ETINt3 MINUTE3 . � �, 2000 PAG4E 5 ask the opinion of the Board. Attorney McCracken responded that �hey �.iqht� howeve� the statutary scheme made clear that this Board was an independent entity and did not have t4 tak� adgice �ran� th� Village Co�c�l� r�ar did the Village Council have to accept recommendations from this Board. The fif�h member a€ the BQarc$. wag di�cussecl. Attorney McCracken e�ressed Y�is opinion that the Village Council must approve �h� 5th me�ber sin�� that w�s �.n ad��i.strative duty. Discussion ensued. Attorney McCracken advis�d that a change in b�nefits res��ting i.n a�h�qe i� costs to the Villaqe wc>uld need Village Cour�cil approval; however, investment �ol�c�r (s�ah1ect ta t�,e ea�st�aix�ts af the ardinance) was up to this Board. Attorney McCracken explained that Mr. Van B�uren's fi� �d �andlecl ��g�stmeri.�s s�biect to the advice of this Board arid that could continue. Boardmember We�nand reported the 4�d�na.r��e �all�d fo� €o�E ��firmative votes while FS 175 called for a majority vote. Attorney McCracken st�ted t�� . s��E�. co�,f�i��s- �s-� be . changed in the Ordinance so that the Ordinance would be the same as the �ta��te�.a�� sl�e� �� Boa�d�e�be�s l�t hina know of any other changes needed. Mayor Capretta commented on whether th� L�er�s�.ox� ��c�s sl�QU�d be in4este� 3.r� the stock market versus bonds, etc., and stated that the issue was that the Villag_e �ad �g�eed �he �i,�ef�g��e�s �nd police officers would receive a pension; therefore, the pension fund must ha.4e ��at�� ey �o g�g_ everya�e. Nta�ro� �.apretta reported that the previous day the Wall Street Journal had published an. ��ic�e �e�oq�to-r�. �o .��e S��e 4€ West Virgi.nia, whose return on investments had been the worst in the IInited S�at�� because the�� ir�v�s��e�� po3.i��r had beer�. bad, rasultinq in underfunding of their pension fund. Mayor Capr�t.a_ �o*r►� n� Q � th� ��ge Coux�e�l,, or perhaps the union, could raise the pensions; yet this Board could direct the ir��estme�ts . �yor Capre�ta asl�ed if �he pension fund was adequatEly funded at this time, to which Mr. Van Beuren r�s�o�ec3 t�� s a�d �'i��e Dixector Holloman responded that it was overfunded at this time based on the a�tuarial repor�t dqne in 4E�oher 1s99. Ms. Holloma.rt explained that the actuariai study was presented to the 8oarc€� l�o�€ever� t�Z.�s goar� w�s no�„� �¢�p��sed af different people than were on the Board when the study was made. Ms. HQl�� EQ��d t�at ��.e 6e�era� ��p�o�€ees' Pension Fund was correctly funded at this time. Mayor Capretta 4 Ba�xn oF �v��Es TEQUE$TA PUBLtC SAFETY OFFICE123� PEN3ION TRUST FUND METsTING MINIJTES Jq1�tE 7, 2�00 PA4E 6 questioned wha was responsible for keeping pension benefits a� �h� groper level. Atto�ey_McCracken stated the Village was responsible and that there were severe curtailments li.s.t�c�. in FS 175 ancl 185 �pgli�able �a P�zbl.ic Safety and in FS 112 applicable to General Employees, which placed rc.±c1 Q� inppetmP»tc� ]1�� Ar�rar� commented that the re ired mi.x wa,s ori ina11 50� e�� 3� y quities and 50� fixed incame� b�t w�s eha�ged at hi.s reques� �0 40$ equiti.e� and 60� fixed income. Attorney McCracken commented the actuary v�'as �ayi�Q hy his repart ��i.at the fund wa$ in good shape. Boardmember Weinand requested a copy of the report sent to Ta1l�hassee ea� �4arch. A��.�n,g Vi.��age ��,ager Manganiello reported a letter had been received recently from the Divis.ic�n of Re��re�nent stata.�c,� ��ey �a,d reviewed and approved the 1999 Annual Report for the Police Officers and. EirefiqY��e�ss Fe�sion Fun�i� wh,ic� ma�e t�e Village eligible to receive State funds. Mayor Capretta commented if the func� �s wag o-verfua�dec��. the Boa�� qht think abot�t Changinq the risk profile, and he had nev�r seen a report �ince �e had been o� �I�.Vill�Qe Ea�Eil s� ing the fund was okay. Einance Director Holloman explaine� that the state funds received were ?�.ased on t�e amo�� o€ �remium tax that the people in the Village paid, and the firefighters fund r.��e�ved. apgro�i�tely, fi�5,. p.gg ��1J.y aad the palice fund received approximately $28,004 annually, which was about 35g O.� �1�P . artrrt�a l Cgr�fi ri-hTrfi^ i�2� in�o , the fUriCl . In response to a question of whether the actuary ever attend.ed the Boa�cl ��eti�s� �'i��nce . Director Holloman responded that the Village currently did not have a contract w�-th M=• PalmcLu�st� bu� that I�e �]�d l�.ke to continue the contract, and that the contract required him to make two presentations per �rea� �Q �� ;. p�s, ��lloman explained that this was item 10C on the agenda. IY� F�.E�TION �F pFFICERS Aj CgAIRMAN A�ting, V�llage Manaqe� �iqa��e-��o �ad�e a m�tion that Mayor Capretta be appointed Chairn�an of the Board. Mot�on was secor��ed �� Ro�a I€elly, The u�ste on �ie ma�i�n � BaARD OF TRUSTEES TEQUESTA PUBLIC SAFSTY 4FFICERS' PENSION TRUST FUND MEETIN�3 MINQTES JLJNE 7, 2000 PAGE 7 was: Joseph N. Ca.pretta - for James Weinand - for Ron Kelly - for Joann Manganie].lo - for The m�tian was therefare passed and adopted. B) Vice Chair Chai.r Ca.pretta made a motion that James Weinand be appointed Vice Chai.r of the Board. Motion was seconded. Y�y Acting Villsge Manaqer Manqaniello. TIZe vote on the :twtion was : Joseph N, Capretta - for James Weinand - for Ron Kelly - for Joana Manganiello - for The motion was therefore p�.ssed and adopted.. C. �ECRETARY Ghai.r Capretta made a m�ti.on that Actinq Villaqe Mana,qer Mangani.ello be appointed Secretary of the Board. l�tion was seconded b� Ron I�elly. The vote on the motian was: Joseph N. CaFretta - for James Weinand - for Ron Kelly - for Joann Manqaniella - for The mation was therefore passed and adopted. V . APPROV1�iL OF MTNUTES A) Tequesta Eag�loyees' Pension Trust Fund Board of Trustees Meetiag Minutes of Octob�r 27, 1999 , BQARD OF TRU3TEES TEQU�BTA PUBLIC SAFETY OFFICERS' PEN3ION TRUST FUND MEETING MZNUTL$ JUNE 7, 2�00 PA�G4E 8 . Secretary �7'oann Mangan5.ello mad� a motian to approve the mi.nutes cf the Tequesta E�].oyees' Pension Trust Eund , Board of Trustees l�eetinq of October 27, 1999. Vi�e Chair Weinand seconded the m�tion. The vote on the motion wa.s : Joseph N. Capretta - for James Weinand - for Ran Kelly - for Joann Manqaniello - for The mation was therefcre passed and adapted. VI. STA1�tDING REPORTS A) Approval of New Applicants for Psrtieipatic�n in Pension Plan (October 1999-May 2000): 1) Andre Dodd - 11/ZO/99 2) Priscilla McGill - 12/7/99 3) Christopher McRay - 1/24/00 B) Approval of Ben�fici.ary Changes (October 1999 - May 2040) 1) Dan Tilles Cj Request fo� Withdrawal af Cor�trib�►icivns f�ploye�s " �ermiraatsng ��.�ym�ri� with Village of �Teque�sta •(O�tober 1999 - May 20�0} Name Term. Date Pavo�xt Amount 1) Danald Jackson 7/30/99 $1,259.49 2) Matthew Clay Wick 5/I6/OU $2,747.68 Vice Chair Weinand made a motion to approve tlze request for withdrawal of contributions fcr those employe►es listed Octoher 1999 through May, 2000. Board�member Kelly seconded the nation. The vote cn the motion was: Joseph N. Capretta - for ti �n oF �xvs�$s TEQUE3TA.PUBLIC SAFSTY QFFICER3' PENSION TRUST FUND 1�LTING MINiJTl�3 JIJL� 7, 2000 PAiGE 9 James Wei.nand - for �a �Y - for Joann Manqaniello - for The m�tion was ther�fore passed and adapted. VII. FINANCIAL REPQRT3 3� I�OOZR13� S8�1e8 S� �OI[�ty� L.P. � IIIY@S�@rit �U28g�� S Report (Peter V. Van Beuren, V,p, � Sr. Partner) 1) Revi�w and Discu�sion: Mr. Van Beuren explained that Loomis, Sayles & Company had been hired by the Villaqe in October of 1997 to manage the pension fund, which had formerly been in �he F�ori.da �eaque o� Cities poo�... Mr. Van Heuren explained that Prudential Securities held the assets of the fund, and that Ered Rinney, had been re�ponsible for the custodial brokerage account with Prudential �e�t�ri�i�� . �.c� �xe�u�eci �rad�s with a lower comma.ssion rate. Mr. Van Beuren presented an Investmen.t Re�ie�r bookl�t for the Village of Tequesta Employe�s' Pension Trust Fund for the period ending N.€�y 31 Z�UU, and rev�ewed the booklet. Mr. Van Beuren explained that his office had bought out of I�aami.s, Sayles � Company and would operate under the w __ name Northstar Capital Management. Mr. Van Beuren �� review€� the se�ec��an ��i�e��a fo� stocks and fixed income investments, portfolio strategy, equity charaateristics� and selling criteria for stocks as presented in the booklet. Chair Capretta commented t�at �n�r�y peaple �sed �a lige on disridends; however, utilities were about the only companies that still Pa3-d di-�r3-d.end.s since mast campanies hc�.d decided not to pay dividends and to buy back their own stock to raise t�e v�al�e of t�e ��ock. I�s�ead of receiving dividends to live on, some people were now watching for the stack to qa up and would then sell part of the stock to have something to liv� on, which Was a more risky way to live. The i.mpo�tance o� hav�nq money. a , BQARD OF TRUSTEES TEQUESTA PUBLIC S�AFETY OFFICLRS' P�IriSION TRII3T FUND MEETING MINUTES � ?, a000 PA�GE 10 properly invested with someone who kept up with the chanqing ma.rket was stressed. Chair Capretta commented a person had enough money to retire when t��y got to the paint tha� t�eir mvr�e� was working to make money instead of them. having to work to make moneZr.. Mr. Van Seuren commented tha� infortnation was naw instantaneous, and cautioned that it benefitted Qn� to s�i.�k wi�h ��eir i�ge�tm�n� Qb�ectives of long- term investments. Mr. Van Beuren reviewed the �ixed in�ome and stock investtnent strateqy as presented in the booklet as well as the criteria; and explained '�h�t ��e pc>r�.folio ��tar��d sm�ll but had increased under his company's management policy of selecting qualitp gxQS�rth companies. The investment strategy did not allow straying very £ar from the index chosen by w�ir,� �o �e�s�atr� �h� port�al�o. Mx. Van BeureM advised their company tried to capture value and hold onto.it and therefore dit`l. not ha�re a lnt of turno�rer in tM.e portfolio. Mr. Van Beuren explai.ned that his company c�.id� nat p��E�ase �t�al fu�ds $�,tt ciid pur�hase individual stocks and bonds. Pension fund figures were presented as of Mag 31� 2U00. The types of companies chosen to invest in and their basic Q�erations were presented in the booklet. Chair Capretta commented that the only thing that coun�ed_ vaas res�a].ts, and. the $oard had to �eake sure they continued to get what they were paying for. Co- G�air �eir�.and quest�oned from i:n�orma�tion presented in � the booklet whether $100,000 had been lost in two montri.s� ta which Mr. Van Beuren res�onded that there had been some withdrawal of assets as well as some r�duct�an in �Y�e aalue a� t�e ��Fount. Finance Director Holloman clarified that some employees had left and funds �rere paid ou� to them, and that some money had been overpaid for the year in error, which �a$ �c�ir�q cor��E�ed. Th� e�ror was discussed. Finance Director Holloman explained. that this was a $43� QU() errQr in. which that a.m.ount had been sent to Pzu.dential by mistake, and a r�quest had been made to Prt�den.�ial �o qe� the mone�r b��k. Chair Capretta requested that the Finance Director provide a report on this matter at �the next meeting. Attorne�r , B4ARD OF TRUSTEES TFQOE3TA PTJBsLIC SAFSTY dFFZC�R3' P$N3IOAi TRIIST FvND 1�ETING MINUTES JUNB 7, 2000 PA�GE 11 McCracken pointed out that when money was in the account it was not to com.e aut r�rith.out app�oval of this Board, so he was not sure Prudential should have r�lea�ed. t�e moriey, Finanee Director Holloman responded the only item not approved by the Board was the errQr, and that the account was balanced. Ms. Holloman was requested to go back to the March 31 l�alax��e aad reai�w w�a,� �ad hagpened up to May 31 at the next meeting to account for the $100,000 reduction. �£i��. C�a�r Ti��.ina.ns3 �Qmm�n��i tl��. �r�a.rd needed to look at the funds to make a split between the two Boards. The Finan,ce pi��to� �om�ente� i� �,ras hoped to get permission to split out the funds at today's meeting, �o. tha� th� gp�it could be don� as of June 3t3. Discussion ensued regarding a praper cut off date. A�to�e-y .. l�c�r��l�e� ��,�� he Board could authorize the Finance Director to make the split as of a. Ger�� d�t� �nd �j._ustments co�ld be made after the fact . ' Boa�c�er M��aniell<: made a m�tian to apprave the report by Peter Van Beuren for the period endinq May �l � 2004. 8��.,� W�i.�and seEC�ded the m�tion. The vote on the mQtioa was: �'ct�eph N. Cagr-ett,a - for James Weinand - for Roa I�lly - for Jaann Manganiello - for The �na►tio� wa� �r+�€a�e� g�ssed and adopted, B) Prudential Securities, Inc., Custodial Brok�r, Account �tatements COctQbe� 1999 - April 2000) Finance Director Holloman advised that the statements w�r� p�esented in the packe�s. Chair Ca�retta discussed turn�ver of secur.ities within the p.r.tfolio, which � BQARD OF TRUSTEES TEQT3E3TA PUBLIC �AFST7C OFFZCFR�3� PSN3I4N TRII3T FIJND MBETINCi MINtJTL3 �s �, 2000 PAGE 12 involved costs, and stated his opinion that there should �e lit�le turno�rer� Mr, Va� Beuren explained that commissions charged by Prudential Securities were 1Q.w-only. ter� �ents per �rade oger 1 shares and fifteen cen�s per trade under 1,000 slzares, or a$55 mi��um- �hair ��pret�a co�e�ted he had not been suggesting turnover was done in order to make cQ�ssions�. b�t be3.�eced ��e o-ge�all strategy should be to buy good stocks and then keep them. BQardcne�nbe� ��q�i�lla m�de aE �ion tc� approvae the Prudential Securities, Inc., account statemants for the peri.� e�d�nq Agril 30 R �440 . Bos��dmamber Weinar�d seconded the mr�ti.on . The vote on the m4tion was : Jcasep� N-. Cap�et�a - for James Weinaad - for Ron F�ellY - for Joann Man�ani.ello - fo= The mc=tion �as tl��r�fc�r- e p�ssed and adogted. VY. PAYMENT3 TO BE REVIEWED AND APPROVED a� �4�31�99 Jo�es�. �a$te�� Jol�stan � S�t�bbs - $1,835.00 tLeqal Services) - b� 10�33�99 Businesg �ervices Cc�nect3.c>r► - �?3.50 (Recordinq Services ) cL 11�A4�99 S�si�esss 3�rvi�es Ce�nect.�on -�6g.25 (Recordinq Services d� �2E3�[99 Jo�eg� Fcs�eF� 3oh�s�� Stubbs -$35.00 tLeqal Service�) e� ��31�OA Jo�es, �'ost�� Joh�s� & �tubbs - $85.00 CLegal Services) fZ. 2�14�00 Loo�nis Sa�les � Co. - 43�267,.43 (Managemer�►t Services) q� 4�13rQ0 Jones,.. Fcsster� �ns�on & �tubb� - $35.00 (Legal 3ervices) h� 5�if�QO Loo�s Sayles & Co. -�3�Z61.43 (Management . Servi�es) M BQARD OF TRU3TEE8 TEQLjESTA PUBLIC SAFSTY OF'FICERS' P$NSION TRII3T FUND MEETING MINUTE3 JUNE ?, 2000 PAGE 13 Boardmember Manqaniello made a motion to approve the P$Y�nts as sho�n. oa the agenda. HQar�ne�eber KelZy seconded the nr�tion. The vote on th� nqtion mas: �o�epl� I�. Capre�taE - for Jannes Weinand - for Ron �elly - for Joann Manganiello - for The n�ati.an was ther�are passed and adopted. IX. NEW BUSINESS a) ra�ral of En�ll.�nent and B�nef � s+ $, � �P Designation Forms Finance Director Holloman e�rplained tl�at with the adc>pti.on af �he �ew pla�s t�e E�ollmen� and Beneficiary Design.ation forms were redesigned so that the title on th.e form �ould reflect that it wras for the Public Safety Officers' Pension Trust Fund. Board�nber Mannqa��el�o made a mEatia� to appro�v�e the Enrollm�ent and Berreficiary Designati.on Forms as presented. Boarc�member. �rTeinand. g�nded t�e m�tion. The vote on the motion was: J��ph �. Ca.p�e��taE - for James Weinand - for Ron Kel.ly - €or Joann Manqaniello - for �'he �ro�ion wa�. �here�fo�e pass�d and adopted. b) Approval of Summary Plan Descriptions Finance Directo� Hal.loman explained. that the plan description had been changed to Public Safety Officers' Pension Trust Fund. B�ra�dm�embe� Man�iel�lo made a n�a�i.o� to approve the s BQARD OF TRUSTEE3 TEQiIESTA PUBLIC SAF'ETY OE�`ICERS' PLN3ION TRU3T FQND MEBTING MINUTE3 JUNE 7, 2000 PA�E 14 3um�.ry Plan Description as presented. Baar�r Weinand seconded the mc>tioa. The �rote on the mati.on was : Joseph N. Capretta - for ��g �� - for Ron Kelly - for Joann Mangani..ello - for The motion was therefore passed and adopted. X. l�i1�TY OTHE�R IN�iTT7�RS �.2 App�aintrne�� o� Stl� Trustee - Letter o� interest from Edward D . Resni.k A l��e� �f ��e.r�.�t frc�m� $d�rd II. F��s��k was presented by Boardmember Manganiello, who�noted that Mr. Resnik was t�� ox�ly applicant that had e�presse� �nterest in serving on this Board and on the General Employees' Board. Mr. Re.snik v�as present at today's meeting. Boardmernber Wei.nand maide a m�tion to apgoint 8dward D. �s�; as . tiz+a .�t.� ��,- � t�s. H�a��3. Boar�ber Manqaniello seconded the m�tion. The vote an the m�tion was: �'4sep�# �. f;�p�ett.z� � - for James Weinand - for Ron Ke1-1-� - for Joann Manganiello - for The awt�an was �e-�e€ore pa�sed and adapted. Boardm,ember Manganiello noted that this .approval w+�uld be presen�ed to the Vil.lage Couricil at th�ir July 2Q, 20pp meeting. bZ Discussi�c:r� af Ir��re�si�nen� Advisvr - Nc�rthstar Capital Manaqettrent, In�. Plrr. Van Beuren explained that the lncal office of Loomis . BQARD OF TRUSTEES T�,JS�TA P[IBI�IG SAF�TY E?EaFIGER�' PENSION TRIIST FUND MEBTINC� MINUTES JONB 7, 2000 PAC� 15 Sayles & Company had decided to buy out of the company, which was an am�.cablc� s�paration, and the new coxapany would operate as Northstar Capital Management, Inc., r�naaininq, in the �ame of�ic� . �he bu� had been a resuYt of corporate strategy differences and the local Qf�ic� �sar�t�d .�o �ontint�e �o�d.uc�inq b�siness as in �he past. Mr. Van Beuren explained there would be no changes w��h the Villaqe' s ac�ot�nt,�, e�].ained t�ie company' s�'ee structure, and that the Village's rate would remain the ��m.e. NIr. Van B�ur�� re�es�eci that th� Village sign a consent to assign the current contraet to Northstar �api.tal l�iar�agement� and exp�ai�ed t$at the current contract had no time limit and that the investment ma��qer could be dis�n�ssed l�y tl�e �Till�ge at any time . Chair Capretta questioned who made deci.sions to buy and �el�,. �o wY�i� M�, Vax� Be��ex� �esgo�ded that a, model portfolio was used as a guideline and decisi.ons were made ��o�d�gl.g. P��tor�eg. . M��ack�� adaised that he had reviewed the assignment of the contract and was cnm�ortable with i.t . Boardmemb�er Weinsnd made a mo�tion to apprave the transfer of the currerit cantract with Loomis, 3ayles b ComQany to l�tFthstar �ag�t�l 1►�aaq�t� Inc. �. �uthorizinq the Chairman of this Board to sign the assignmeat docun�ent. Boardnn�er Maagarti�llo se�nded th+e mQtion. The vote on th� motion was: Joseph N. Capre�ta - for J�nnes Weinand - for Ri �-�Y - for Josnn Mariganiello - for The m�t�o�a was �herefcre pa�sed and adopted. c) Discussien of Actuarial Needs Finance Director Holloman �eco�nmended s�litting the fund at the end of the quarter, and requested guidance as to whet�er to rec�uest the trans�er a� �os� qr at fair market value. Attorney McCracken advised that the transfer should be at fair market value. Einance Directo= M Ba�n oF �xvsz�Es TS�3E�`3TA PUBLIC SAEE.TY OFFICERS' PF�i1SIaN TRII3T FUND MEETING MINUTE3 JUNE ?, 2000 PAiGB 16 Holloman explained that at the present time 83.72$ of the assets of the pension fund belon.ged tQ the Firefighters; 5.58� belonged to the General Em.ployees; and 10.70� b�la�ged to th� PQl�ce. M.�. HQ1laman e�plained that the portion that would be moved �o the General Employees F'und if the cut off date were March 31 20a0 would be $89,006.97. Attorney McCracken stated the split should haae been do�� $y t�e first �f th� year, but tl�ere were no guidelines in the statute, and that this was an unusual situation because the pnrtion belonging to the General Employees was so small and because it was unknown wha� th� 6e��r�l ��o.�ees �Zd do after the split. Finance Director Holloman recommended sEtting up a separate account at Prudential fox the G�nera2 Employees, and noted that some �.ssets woul.d have to be sold in order �� al�e �I�e �ran�fer �.n Ea�h, A�torney McCracken recommended planning to have $100,p00 in cash by the end of th.e �nth to �ah.i.ch Mt. Vaxi Be.uren re�ponded there was $161,000 in assets so that would be no problem. Mr, Van. B�ur.en �o�en��d h� 1�� spal�en to Nlr. Kinney at Prudential, who had indicated he would be happy to ma.nage an account far the General Employees. Boardmember Weinand made a motion to approv�e the split to �egar�te t�e �ie�� anplo��ees po.rtion of tlie f�ds from tlx� pension fund as of June 30, 2000. Boardm�n�er ,Ke3,ly seconded the motic>n. The vote on the motion ara�: Joseph N. Capretta - for James W�-nand - for Ron ICelly - for Joann Manqaniello - for The motion was therefo�e passed and adopted. E'inanc�. Direc�or I�o1lQmara, c�u,est�.Q�ed w�ietlier the Board wished to continue the actuarial services, noting there was na cuxrent contract. �iscussioa ensued regarding renewing the contract. Attorney McCracken stated he wQU�d prefer that t�e contract be re-written in the nam,e of this Board rather than r�newing the old contract. Attorne�r McCracken clarified that althpugh the Village could hage an ac�uarial study. done and that e�ch Boar.d � BOARD OF TRUSTEES TEQUESTA PUSLIC SSAE'ETY OFFICERS' PENSION TRIIST F[lND ME�TING MINtJTES JUNE 7, 2000 PAGE 17 could have an actuarial study done, there had never been a c�uplieation �y the Village since they had relied on the study obtained by the Board. Attorney McCracken also coma�ented that the actuary was avai.la}ale to answer any questions from the Board and to consider the cost of any proposed henefit chanqes. BQardmemb�r Weinand questioned whether it would be in the best in�erest of the Board to ' hasre a stud� done by a differ�t firm as a comparison to the previous studies. Attorney McCracken responded this was a�a.ior firm ,�.d wa,s the Qnly €irm raith, which he had experience, and was the sa�ne one used by the Town of Palm Beach- g�.nan�e Di�ector Holloman commented that the next actuarial study, based on th� previous contract, should k�e Iix� �n E3ctober 2 0 0 0 R anr� tl�e Board would x�eeet in September. Boardmember Manganiello commented that an actuarial study had pre�ziousl�r been done every other year; however, since the pension fund was now ten years Ql� �� re �s a g�ss�hility that empldyees might retire or be placed on disability, an actuarial study every gear miqht be desiiable. Boatdmember TaTeinand commented that employees could not retire until age 52. Di��ussiQn e�s��d r�ga�c�ing p�s�poninq this matter until the next meeting. �� W�-�d �de a mQtion to table consideration of an actuarial contract following a present.at�.cri by Mr . Palm�ist at the Sep�ember 2QQ11 meetit�g of the Baard. Board�er Kelly seconded the m�ti.on. •The vote on the m>tion was: ��P� � • �E�'�� - for James Wei.nand - far � ��y - for Jcann Manganiello - for T� mata.�xr� wag .�here-fo�e pas�sed and adopted. IX. ADJOLJRNM,ENT Boar�� e ��tian to adia�rn the meetinq. Boardmennb�er Kell.y_ seconded th� m4ti.en, The vote on the � r Ba�n oF �xos�s TEQUESTA PUBLIC SAFETY OFFICERS� PtiNSION TRUST FUND MEETI1�iG MINQTE3 JUr� 7, 2000 PAGE 18 motion was: Ron T. Ma�kail - for Thomas Bradford - for Peter Allen - for Matth�w Morrison - far The mot�o� was �er�fore gassed and adapted and the meeting was adjourned at 11:12 A.M. ,Resgectfully submitted, � Betty Zaur R�cording Secretary ATTEST: . Joann Manganie o Village Clerk DATE APPROVED: . � "_ a7 _ a000