HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 01_05/05/2008• SYNOPSIS OF PUBLIC SAFETY OFFICERS PENSION BOARD MEETING HELD FEBRUARY 4, 2008
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2. Accepted the quarterly report from Bogdahn Consulting, LLC, presented by David West.
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3. Discussed the investment monitor's performance and the Board's expectations. Chair Nielson
summarized the Board's comments as an endorsement for Bogdahn Consulting, and stated the
Board had no plans to make a change at this time. The Board requested that Rockwood be
asked to include a summary of commissions in their report.
4. Andrew Holtgrieve, Rockwood Capital ,had included at the beginning of his quarterly report
findings regarding proxy voting which had been questioned by the Board, which now seemed to
be resolved so that going forward there should be consistency with voting the proxies as
recommended by the management of the specific companies the funds were invested in.
5. Re: Status of reducing Firefighters' contribution back to 59'0: Secretary Ray Giblin reported this
had been submitted to Village Council and was currently a negotiable item in union
negoti Li v,^,;.
6. Information Item:
New applicants: Robert Korkowski, Police Officer -Date of Hire 11/14/08
Maximilian R. Lally, Police Officer -Date of Hire 10/29/07
The Board reviewed the Statement of Activities and Budget Report.
7. The following payments made since the last meeting were ratified:
:Hanson, Perry & Jensen, P.A. $771.68; Business Services Connection, Inc. $282.37
8. The following payments were approved for payment:
Hanson, Perry & Jensen $323.00; Bogdahn Consulting LLC $2,000.00; Rockwood Capital
Advisors, LLC $5,726.82
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9. Mr. West reported Bogdahn Consulting was approving the calculations on Rockwood's invoices
as a matter of course.
10. HR Director Reid requested clarification of the wording "Total cash remuneration for services
rendered as a Firefighter or Police Officer" in the pension plan document. It was requested
that Ms. Reid obtain from HR and finance a letter to the effect of what past practice had been
regarding boot and shoe allowance and car allowance; that overtime was pensionable, and 590
that was taken from a bonus. This item was tabled to the next meeting.
• SYNOPSIS OF PUBLIC SAFETY OFFICERS' QUARTERLY MEETING HELD FEBRUARY 4, 2008 -Page 2
11. The Board rejected a proposal to access Salem Trust Company statements online.
12. Attorney Jensen explained the new Florida law regarding use of social security numbers by all
government agencies . The Board adopted Village of Tequesta Resolution 24-07/08 as it applied
to the pension board as the Pension Board policy.
13. Meeting dates were clarified as being on the first Monday of February, May, August, and
November in 2008, with starting times to alternate. February and August starting time would
be 10:30 a.m.; May and November 8:OQ a.m.
END OF SYNOPSIS
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TEQUESTA PUBLIC SAFETY OFFICERS PENSION
TRUST FUND
QUARTERLY BOARD OF TRUSTEES MEETING
February 4, 2008
I. Call To Order And Roll Call
The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a
regular quarterly meeting at the Tequesta Village Hall, 345 Tequesta Drive,
Tequesta, Florida, on Monday, February 4, 2008. The meeting was called to order
at 10:32 a.m. A roll call was taken by Betty Laur, Recording Secretary. Board
Members in attendance at the meeting were: Chair Ken Nielson, Secretary Ray
Giblin, Board Member Ed Sabin, and Board Member David Cooper. Board Member
Kevin Pittman was absent from the meeting. Also in attendance were Pension
Coordinator Lori McWilliams, Attorney Bonni Jensen, Senior Accountant Monica
Rahim, and Monitoring Consultant Dave West of Bogdahn Consulting, LLC.
II. Approval of Agenda
MOTION:
Board Member Sabin made a motion to approve the agenda as submitted.
Secretary Giblin seconded the motion, which carried by unanimous 4-0 vote.
III. Approval of Minutes
1. Tequesta Public Safety Officers' Pension Trust Fund Board of Trustees
Quarterly Meeting Minutes -November 5, 2007
Chair Nielson advised that the proper spelling for CALPER was CaIPERS (California
Public Employees Retirement System) and under item 10 the unanimous 5-0 vote
should have been 4-0 since only four members were present. Chair Nielson
recalled at the last meeting an item had come up regarding a question Board
Member Sabin had asked Mr. West, and the Board had been unable to figure out
what he had been asking with respect to confirmation, and had indicated Board
Member Sabin would be consulted at this meeting and if it was an issue it would be
brought up. Board Member Sabin responded that out of context he could not
remember.
MOTION:
Secretary Giblin made a motion to approve the meeting minutes of November
5, 2007 as amended. Board Member Cooper seconded the motion, which
carried by unanimous 4-0 vote.
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 2
IV. PRESENTATIONS
2. Presentation By Monitor
David West, Bogdahn Consulting, LLC, advised the new attribution report had been
provided. Mr. West reported visiting with the portfolio manager and team at
Contravisory in Massachusetts and that his firm was still comfortable with the
process and had discussed with them particular markets and strategies for the
future. During review of his report, Mr. West advised that for the December
quarter there were no fixed income securities that were problematic. The fund had
basically fared okay through all the turmoil. Board Member Sabin asked if the
Board should expect periods of transition from time to time when the market was
changing; Mr. West explained his firm had documented the contributing factors to
better monitor what changes to expect in the future, and their visit to Contravisory
had confirmed the investment strategies. Mr. West reviewed the different
categories of stocks within the portfolio and how each had performed. Chair
Nielson expressed his opinion the information provided was on target. The sector
report was reviewed; Mr. West explained the attribution report was one step
removed from the actual manager's report. The two big positive changes observed
since the last quarter were that the LIBOR rate had gone down, meaning a return to
confidence, plus some bond managers were beginning to buy, so liquidity should be
returning to the marketplace. Cash flow was reviewed. Board Member Cooper
advised he had questioned at the previous meeting if a procedure was in place to
avoid drastic losses when stocks went down; Mr. West reviewed the manager's
strategy for selling and explained they rebalanced the portfolio monthly. Chair
Nielson asked if the 10% limit of foreign investments should be increased; Mr. West
explained under Florida Statutes 175 and 185 the limit was 10%; hopefully future
legislature would pass to change that. Discussion ensued. Chair Nielson thanked
Mr. West for his report.
MOTION:
Board Member Sabin moved to accept the quarterly report for the period
ending December 31, 2007 presented by Bogdahn Consulting, LLC. Secretary
Giblin seconded the motion, which carried by unanimous 4-0 vote.
V. UNFINISHED BUSINESS
3. Discussion regarding Investment Monitor's Performance and the
Board's Expectations
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 3
Chair Ken Nielson distributed handouts from Mr. Bogdahn's April 2004 presentation
when responding to the RFP for his contract, and referred to the excerpt from the
contract defining duties of the consultant. Chair Nielson commented he had not felt
the Board was getting enough specific information on types of investments
Rockwood was purchasing; however, today's presentation and addition of attribution
analysis had helped him understand better. Discussion regarding Bogdahn's
performance ensued. Board Member Cooper pointed out he had to report to his
fellow police officers they had lost part of their money, and he would like to see
better performance by Rockwood. Board Member Sabin commented he put more
weight on long-term returns rather than short-term ups and downs; and he had been
on the board when Bogdahn's firm was hired. It had been an exhaustive process
lasting 6-12 months, with many discussions regarding Bogdahn and Rockwood and
whether things would pan out, and frustration and disappointment with the previous
manager (whose only strategy was large cap). The Board had felt other strategies
should be pursued, and he felt both Joe Bogdahn and Dave West had been very
clear and responsive to the Board's requests. Board Member Sabin commented
that looking at the list provided, some of the things such as commission recapture
had not been discussed in awhile, but he assumed they were happening. The 3-
year period of a guaranteed fee might be about up, and he was not aware of any
discussions with Bogdahn Consulting regarding this. Secretary Giblin expressed his
agreement with Board Member Sabin's comments, and advised he had no problems
with the reporting. Chair Nielson summarized the comments as an endorsement
for Bogdahn Consulting, and stated the Board had no plans to make a change at
this time. Attorney Jensen explained the fee schedule; Mr. West commented
Bogdahn Consulting was providing services most boards did not ask for and were
happy to do it, and asked that the Board let him know if anything else was desired.
Mr. West advised he could not address the fee schedule at this point, but reported
his firm was in the process of reviewing fees against services for their clients now
versus three years ago. Investments in analytical software to provide specific types
of information had raised their costs, but he could not say whether fees would be
raised. Attorney Jensen advised the Board had a 30-day termination agreement
and the 3-year guarantee for fees expired in May 2007. Mr. West explained that
commission recapture might not bring a lot of benefit since the investment manager
was already trading at low cost, but they were always happy to examine this as the
assets grew, and the Board requested they ask Rockwood to include a summary of
commissions in their report.
4. Andrew Holtgrieve's findings regarding proxy voting discussed at the
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 4
last meeting
Chair Ken Nielson commented Mr. Holtgrieve had included this information in the
front of his quarterly report, and it looked as if there had been confusion with the
instructions given by Rockwood to the company who handled the proxy voting for
them with respect to what the term "management recommendations" referred to;
and it looked as if that had been corrected so that going forward there should be
consistency with voting the proxies as recommended by the management of the
specific companies the funds were invested in.
5. Status Report regarding reducing Firefighters' contribution back to 5%
Secretary Ray Giblin reported this had been submitted to the Village Council and it
was currently being used as a negotiable item in union negotiations.
VI. STANDING REPORTS (INFORMATION ITEMS)
Chair Nielson reviewed the following information items:
6. New applicants for participation in Pension Plan
Robert Korkowski -Police Officer -Date of Hire 11/14/08
Maximilian R. Laity- Police Officer -Date of Hire 10/29/07
7. Beneficiary and Name Change
None
8. Request for withdrawal of contributions (employees terminating
employment with Village of Tequesta) -Ratification of withdrawals
made since the last meeting on 2 signature basis:
None
9. Statement of Activities
Board Member Cooper noted no State contribution was shown for the police.
Attorney Jensen explained the supplemental payment was only available to
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 5
the firefighters. Police officers received 100% of their allocation of 185 funds
during the first distribution. Firefighters were capped at 6% of their salary,
and the rest went to fund their educational incentive account, and for the
past 10 years there had been enough money in that educational incentive
fund to give money back to the firefighters.
10. Budget Report
Chair Nielson asked if the 3`~ column over YTD actual was for FY 2007,
which was confirmed by Senior Accountant Monica Rahim. Chair Nielson
commented he liked this presentation-it was easy to see where the Board
stood with respect to their spending. Secretary Giblin asked when the next
actuarial study would be done; Attorney Jensen advised it would be during
this year, the cost of the evaluation was $6,000, and $6,500 had been
budgeted.
VII. ACCEPT ROCKWOOD CAPITAL ADVISORS REPORT FOR QUARTER ENDED
12/31/07
The report was received and filed.
VIII. PAYMENTS TO BE RATIFIED (PAYMENTS MADE SINCE LAST MEETING)
11. Hanson, Perry Sz Jensen, P.A.
Services through 11/15/07 $ 771.68
Business Services Connection, Inc.
Recording/Preparation of 11/7/07 minutes 282.37
MOTION:
Board Member Cooper moved to ratify the payments to Hanson, Perry 8<
Jensen P.A. for $771.68, and Business Services Connection, Inc. for $282.37.
Secretary Giblin seconded the motion, which carried by unanimous 4-0 vote.
IX. PAYMENTS TO BE REVIEWED AND APPROVED
12. Hanson, Perry Sz Jensen, P.A.
Services f~rough 1/15/08 $ 323.00
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 6
Bogdahn Consulting, LLC
Fee for Quarter ending 12/31/07 $ 2,000.00
Rockwood Capital Advisors, LLC
Fee for Quarter ending 12/31/07 $ 5,726.82
Attorney Jensen responded to questions regarding the amount billed for calls
regarding cash remuneration and administrative expenses being reimbursed by the
Village. Attomey Jensen advised the Board could set a policy that they must
approve any requests for work by her. Board Member Sabin clarified with the
attorney that if the Board was requested to ratify a bill and they had a problem with
an item, they did not have to approve it and an adjustment would have to be made.
Board Member Cooper questioned why his name was on the bill, which Attorney
Jensen explained she had given her opinion that he should be in the plan pending
certification.
MOTION:
Board Member Sabin moved approval for the payments as presented.
Secretary Giblin seconded the motion, which carried by unanimous 4-0 vote.
Chair Nielson asked if Bogdahn Consulting had approved the calculations on
Rockwood's fee. Mr. West noted that was being done as a matter of course now,
andrf they saw a question they would correct it with Rockwood before it reached the
Village.
X. NEW BUSINESS
13. Clarification for HR regarding what is included in "total cash
remuneration for services rendered as a Firefighter or Police Officer"
Human Resources Manager Merlene Reid reported she had been asked by
Finance Department Payroll for a definition of what was included in salary for Public
Safety Officer Pension employees. When she had pulled the plan description, it
stated "total cash remuneration for services rendered" for a firefighter or police
officer. Ms. Reid asked if that would include sick leave buyback, one-time
recognition bonus, boot and shoe allowance, car allowance, etc. Looking at the
General Employees pension fund it clearly stated their compensation included
regular earnings, vacation pay, sick pay, all deferred tax items, excluding lump sum
payments, overtime payments, longevity, etc., and clarification was needed or for
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 7
the Board to look at it to tell them the definition. She clarified that the plan for the
Public Safety Pension was not as specific in defining salary as that of the General
Employees. In the past, boot and shoe allowances and car allowances were not
used as part of salary. Board Member Sabin asked if those were included on the
employees' W-2; it was his opinion that anything on the W-2 was included in salary.
Discussion ensued. Michelle Gload of the Finance Department advised boot
allowance and car allowances were included in boxes 1, 2 and 5 on the W-2. She
was almost positive they were not taking out 5% for the car allowance or boot
allowance. Board Member Sabin commented they should be clear on past practice
and incorporate that into the plan documents. It was confirmed that overtime was
pensionable, and 5% was taken from a bonus. Attorney Jensen advised it was a
negotiable item if it was going to be something less than total cash remuneration or
something different than had been done in past practice, and the definition of
looking to the W-2 was a good definition of past practice. Attomey Jensen clarified
that the Public Safety Officers plan document stated "salary means total cash
remuneration paid to a police officer or firefighter for services rendered". The
question here would be if the boot allowance, the clothing allowance, or the car
allowance were for services rendered. Ms. Reid commented from the information
provided by Ms. Gload, past practice had been these items were not included for
services rendered. Board Member Sabin recommended Finance and HR send
something in writing to this board spelling out what the practice had been over the
last several years showing consistency in how it had been done so it could be seen
whether the plan document needed clarification. Board Member Sabin noted the
Board would probably not want to go against past practice since that would open
the issue of past, present and future participants not being treated the same,
assuming the practice had been consistent. Attorney Jensen advised if past
practice had not been consistent, the Board would have to refer this back to
collective bargaining for the parties to resolve the answer-there was a benefit to
members of having more salary included in the definition; on the other hand they
were subject to having their contributions taken out, so it cut both ways.
The Board requested that Ms. Reid get a letter from HR and Finance to the effect of
what past practice had been.
MOTION:
Secretary Giblin made a motion to table to the next meeting this item
regarding what is included in "total cash remuneration for services rendered
as a Firefighter or Police Officer". Board Member Cooper seconded the
motion, which carried by unanimous 4-0 vote.
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 8
14. Online Financial Statements from Salem Trust
Pension Coordinator Lori McWilliams advised her office received the Salem
Trust statements by mail and was now scanning them and sending to the
members by email, which the Board had agreed to at their last meeting.
Now Salem Trust was offering access to online statements. It was a matter
of whether the Board wanted to have online access or continue doing it by
email. Secretary Giblin advised he did not think he would use the online
access. Consensus of the Board was to leave as is the procedure for the
Salem Trust statements.
15. Discussion of SSN memo
Attorney Bonni Jensen reported Florida Statutes §119.071 had been
amended to create a new requirement for the use of social security numbers
by all government agencies, including cities and municipal pension boards.
In passing the law, the legislature was really trying to balance the public
interest in using social security numbers for identification purposes and the
private interest of not letting those numbers be used for fraud. The new
legislation required that an agency may not collect the social security number
unless that agency had stated in writing the purpose for its collection and it
was specifically authorized by law, or imperative for the performance of that
agency's duties as prescribed by law. Also, that the social security numbers
collected by an agency may not be used for any purpose other than the
purpose provided in the written statement, that an individual must be
provided a copy of the written statement, and that each agency shall review
whether its collection of social security numbers is in compliance with Florida
Statute §119.071. Agencies must certify compliance to the State no later
than January 31 each year. Attorney Jensen suggested adoption of a policy,
and since the Village had adopted Resolution 24-07/08, the Board could
adopt it as their policy. Attorney Jensen reminded staff that social security
numbers should be redacted from any documents seen by the Board; to
give each member a copy of the written statement when they filled out their
packet, and it should be included in the summary plan description. Pension
Coordinator McWilliams advised the policy was adopted by the Village
Council in January and all Department Heads were required to give the
statement if they collected a social security number, and she was the one
who reported to the State each year. Chair Nielson asked if beneficiaries
would be treated the same; Attorney Jensen expressed her opinion this
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
NOVEMBER 5, 2007
PAGE 9
document would not exclude beneficiaries. Discussion ensued.
MOTION:
Board Member Sabin moved to adopt Resolution 24-07/08 as it applies
to the Pension Board. Board Member Cooper seconded the motion,
which carried by unanimous 4-0 vote.
XI. ANY OTHER MATTERS
Meeting dates were clarified as being on the first Monday of February, May,
August and November in 2008. The May meeting would be at 8 a.m.; August
meeting at 10:30 a.m., and the November meeting at 8 a.m.
XII. COMMUNICATIONS FROM CITIZENS
There were no communications from citizens.
XI11. ADJOURNMENT
MOTION:
Board Member Sabin made a motion to adjourn the meeting; seconded by
Board Member Cooper and carried by unanimous 4-0 vote. Therefore, the
meeting was adjourned at 12:16 p.m.
Respectfully submitted,
~1e~/
Betty Laur
Recording Secretary
