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HomeMy WebLinkAboutPension General_Documentation_Tab 01_02/05/2007• • • SYNPOSIS OF GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINUTES OF 11.6.06 1. Approved minutes of 8.7.06 quarterly meeting. 2. New member of the board Merlene Reid, who had been selected for the employee position formerly occupied by Anne Koch, was introduced. Chair Garlo announced that Carl Hansen would be considered by the Village Council at their December meeting to replace Board member Tom Paterno, who had resigned. 3. Mike Dana, Dana Investment Advisors, presented the Investment Manager's report. 4. David West, Bogdahn Consulting LLC, presented the Monitor's report. 5. Steve Palmquist, Gabriel, Roeder, Smith and Company, was to provide costs of amending the plan to add interest on employee contributions and present that at the next meeting on February 5, 2007, and make a presentation to the Village Council on this at their March meeting. 6. Mr. Palmquist advised that the cost to provide benefit statements in the off years when an actuarial report was not prepared would be approximately $2,000. 7. The board approved tabling the decision of whether to have employee benefit statements prepared annually until a meeting could be held with the plan members. 8. Consensus was to set up employee meetings to follow the next regular quarterly meeting on February 5, 2007. Consensus was that Mr. Bogdahn and Attorney Jensen would attend to make presentations to the employees. 9. Voted to update Administrative rules to change from meeting months in April, July, October and January to be May, August, November, and February. 10. Voted to update the Expense Policy to reflect the standard IRS rate for mileage reimbursement. 11. Approved the following payments: Business Services Connection $193.32; Hanson, Perry & Jensen, P.A. $771.11; Bogdahn Consulting, LLC $1,1125.00; Dana Investment Advisors $1,252.87; Salem Trust Company fee advice $198.80; and Village of Tequesta for shipping fees $11.71. 12. Approved new applicants: Truman A. Blanchard Daniel Soltis Darlene Madden Mark Heynes Walter Paris Date of hire 8/7/06 Date of hire 8/28/06 Date of hire 9/26/06 Date of hire 10/17/06 Date of hire 10/ 17106 13. Ratified withdrawals made since the last meeting on 2 signature basis: Kevin Sossi 8/10/06 Gross: $251.88; Net Payout $201.50 Anna Koch 9/1/06 Gross: $2,821.04; Net Payout $2,256.83 David Cooper 9/18/06 Gross $1,446.12; Net Payout $1,156.90 14. Approved budget report. • l5. Accounting Clerk Monica Rahim reported Mr. Fred Kinney at Wachovia had indicated the one cent balance was no longer being shown. 16. Approved renewal of the Fiduciary Liability Policy (coverage joint with Public Safety Officers' Pension Fund), with the General Employees' Pension Fund portion of the annual premium being $839.20. 17. Approved adoption of a procedure that invoices submitted in accordance with authorized expenditures by the board can be paid timely without prior approval by the board. 18. Voted to leave the policy as it was regarding the amount of funds kept in Independent Community Bank, and to continue to transfer funds as needed. 19. Approved Catherine Harding to attend the FPTTA school to be held in January 2007 at Amelia Island, or an alternate if she could not attend. END OF SYNOPSIS • U • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND MINUTES OF REGULAR QUARTERLY BOARD OF TRUSTEES MEETING NOVEMBER 6, 2006 I. CALL TO ORDER AND ROLL CALL The Tequesta General Employees' Pension Trust Fund Board of Trustees held a regular quarterly meeting in the Emergency Operations Center (EOC) of the Tequesta Public Safety Facility, 357 Tequesta Drive, Tequesta, Florida, on November 6, 2006. The meeting was called to order at 10:51 a.m. A roll call was taken by Betty Laur, Recording Secretary. Board members in attendance at the meeting were: Chair Bob Garlo, Secretary Archie C. Mangum, Jr., Board member Catherine Harding, and Board member Merlene Reid. Also in attendance were Monitoring Consultant Joe Bogdahn and David West from Bogdahn Consulting, Mike Dana from Dana Investment, Steve Palmquist, Gabriel, Roeder & Smith, Attorney Bonni Jensen, and Accounting Clerk Monica Rahim. II. APPROVAL OF AGENDA • MOTION: Board member Harding made a motion to approve the agenda as submitted. Secretary Mangum seconded the motion, which carried by unanimous 4-0 vote. III. APPROVAL OF MINUTES -TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES QUARTERLY MEETING MINUTES - August 7, 2006 MOTION: Boardmember Harding made a motion to approve the minutes of the August 7, 2006 regular quarterly meeting as submitted. Secretary Mangum seconded the motion, which carried by unanimous vote. IV. CHANGES TO THE BOARD Chair Gazlo introduced new employee board member Merlene Reid, who had been selected for the position formerly held by Anne Koch. Chair Garlo announced that Tom Paterno officially had announced his resignation, and a plaque expressing appreciation for his service on the board would be presented at a later date on behalf of the boazd members. Recording Secretary Laur advised that the former Pension Board Coordinator, Gwen Carlisle, had • indicated by a memo that former boazd member Carl Hansen was interested in volunteering to serve on the board, which would be placed on the December 14, 2006 Village Council • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 2 agenda for Council approval. Chair Gazlo commented this was very good news, since the boazd would have an immediate replacement for Mr. Paterno. V. PRESENTATIONS Semi-Annual Presentation by Investment Manager Mike Dana, Dana Investment Advisors, advised if members of the board would like to receive his newsletter by e-mail they should give him their a-mail addresses. Mr. Dana reported that during the third quarter only a very small band of stocks had done very well, and those were the mega size companies. Their company did not invest in only mega size companies, but provided diversification by also investing in small and mid-caps. The stocks that had not been working during that period of time were now working very well, and things were back on track with the portfolio doing very well. Mr. Dana reviewed rates on page 3 of his presentation booklet, reporting prime was now up to 8.25%, and all the rates had come • up. The Fed seemed to be taking a break. The current climate was bad for bonds, but good for stocks, which was why diversification was important. Mr. Dana reviewed performance since inception, noting stocks were above the benchmazk except for the third quarter. There was a nice yield on the bonds, which were high quality, and it would not make sense to take more risk by going out with farther terms. The whole portfolio was presented on page 18 of the report. Secretary Mangum asked the yield on the money market account. Mr. Dana indicated he could get that, but now the yield was pretty flat, and he would prefer to keep the amounts in money mazkets very low. Mr. Dana asked the boazdmembers to review the portfolio and if anyone knew of a problem with one of the companies, to report that to him. Mr. Dana concluded his report by announcing there was good earnings growth, over 12%, and the current slowdown of economic activity was good for bonds. The housing market had slowed, but it would come back. Chair Garlo commented the board was very pleased with the returns. Presentation by Monitor David West of Bogdahn Consulting commented the investment manager's report was exceptional, the target return had been exceeded and the portfolio had outperformed by 2.47% net of fees, which was huge. Mr. West reviewed cash flow, investment gain, and reported the fund was in the top third percentile of other similar programs for the past yeaz. Fixed income return for one yeaz was 17.85%-number one. Mr. West concluded this was a great report. Mr. Dana explained he could not predict the next quarter, but he would not • change investments based on only a month or two, and the portfolio was in tune with the • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 3 whole world economy. Secretary Mangum stated he was very pleased with the reports. Mr. Dana left the meeting at this point. Presentation by Actuary Steve Palmquist, Gabriel Roeder & Smith Company, commented that his firm had not costed out amending the plan to add interest on employee contributions. Chair Garlo advised that a report was needed in order to amend the plan, and Recording Secretary Laur reported the board had made a motion authorizing Gabriel Roeder & Smith to do a study to determine the cost impact to the fund. Mr. Palmquist responded it would probably be about $800 worth of time, and they would get that done within the next week or two. Mr. Garlo clarified the work was to be incrementally on 1 % to 5% as to what the various impacts would be. Mr. Garlo advised this would be on the Board's next agenda and then on the subsequent Village Council meeting agenda. • Mr. Palmquist reported employee benefit statements were done every other year along with an actuarial report-the last one was done as of 10/1/O5, so the next one would be as of 10/1/07. Chair Garlo commented it was his understanding that the Public Safety Board required employee benefit statements annually. Mr. Palmquist advised it was in his company's contract with that board to provide annual statements; he did not know if it was in the plan as a requirement. Chair Garlo commented the issue to this board would be the additional cost of having it done on the off years. Mr. Palmquist advised that would be about $2,000.00, since they would have to gather data just as if they were doing an actuarial report. Mr. Palmquist noted $2,000.00 seemed very expensive for the small number of people in the plan; however, in the years they did the actuarial report it took very little time to do the benefit statements but to gather the data and organize it in the off years it took considerable amount of time. Chair Garlo commented the next actuarial report would be as of 10/1 /07, so the board could revisit this a year from now to make this decision. Ms Reid reported she had been contacted by employees who wanted benefit statements and wanted someone to meet with them. Mr. Palmquist reported some plans had a meeting with employees annually. It was confirmed that there were 24 employees in this plan. Mr. Bogdahn suggested holding two meetings in the afternoon following the next regular quarterly board meetings, one for general employees and one for public safety officers. Discussion ensued. Attorney Jensen expressed her opinion the interest in having benefit statements was because employees thought they had a defined contribution plan. Mr. Palmquist commented employees would receive their next benefit statement either late in 2007 or early in 2008. Chair Garlo • suggested that before deciding to incur this expense to have a meeting to educate the employees on their type of plan. Ms. Reid commented that HR could disseminate the • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 4 information. Mr. Bogdahn requested that the employees also receive their summary plan description for discussion at the meeting. Secretary Mangum noted there would have to be at least two meetings of each plan in order not to take everyone away from their work at once. Chair Garlo suggested HR work out a meeting schedule. MOTION: Secretary Mangum made a motion to table the decision of whether to have employee benefit statements prepared annually until a meeting could be held with the plan members. Board member Catherine Harding seconded the motion, which carried by unanimous 4-0 vote. Consensus was to set up employee meetings to follow the next regular quarterly meeting on February 5, 2007. Discussion ensued. Consensus was that Mr. Bogdahn and Attorney Jensen would attend to make presentations to the employees. • Chair Garlo announced that Mr. Palmquist would present the information on paying interest on contributions at the February 5, 2007 meeting, so that it could be presented to the Village Council at their March, 2007 meeting. Mr. Palmquist indicated he would be happy to make a presentation to the Village Council. VI. UNFINISHED BUSINESS Consideration of Approval of Updated Draft Administrative Rules Attorney Jensen reported the administrative rules presented previously did not contain the change in meeting months; therefore, today an updated draft was before the board for approval with the change from meeting months in April, July, October, and January to now be May, August, November, and February, scheduled in conjunction with the Public Safety Officers' Pension Board meetings, and to now be on the first Monday of the month. MOTION: Secretary Mangum made a motion to change meeting months to the first Monday in February, May, August, and November. Board member Catherine Harding seconded the motion, which carried by unanimous 4-0 vote. Consideration of Approval of Updated Draft Expense Policy • Attorney Jensen advised the Village had changed the rate reimbursed for mileage. The • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 5 board's travel expenses were currently at 42 cents per mile, which needed to be updated. The municipality was now reimbursing at 48-1 /2 cents per mile, and the current IRS rate was 44- 1 /2 cents per mile. The Public Safety Officers' Board had tied their rate to the standard IRS rate. Attorney Jensen reported from September through December 2005 the IRS rate had been 48-1 /2 cents because of the rise in gas prices; in January 2006 the IRS had reduced their rate back to 44-1 /2 cents. Discussion ensued. Chair Garlo requested that Ms. Rahim check with Finance Director Forsythe to see if the policy of the Finance Department was to be consistent with IRS. Chair Garlo expressed his opinion that from this board's standpoint it should be consistent with the IRS rate. MOTION: Board member Reid made a motion to update the Ezpense Policy to reflect the standard IRS rate for mileage reimbursement. Secretary Mangum seconded the motion, which carried by unanimous 4-0 vote. • VII. CONSENT AGENDA PAYMENTS TO BE REVIEWED AND APPROVED • Business Services Connection - 8/7/06 meeting and minutes $ 193.32 • Hanson, Perry & Jensen, P.A. Services to 10/15/06 $ 771.11 • Bogdahn Consulting, LLC $ 1,125.00 • Dana Investment Advisors $ 1,252.87 • Salem Trust Company fee advice for period 7/1/06 to 9/30/06 $ 198.80 • Village of Tequesta -shipping fees $ 11.71 Approval of new applicants for participation in Pension Plan • Truman A. Blanchard Date of hire 8/7/06 -Building Inspector • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 6 Daniel Soltis Date of hire 8/28/06 - Meter Reader Darlene Madden Date of hire 9/26/06 (full time 10/1/06) - Police Dept. Records Specialist Mark Heynes Date of hire 10/17/06 -Public Works Walter Paris Date of hire 10/17/06--Service Tech Trainee Approval of Beneficiary Changes Mary Spiegel -beneficiary changed 8/10/06 Request for withdrawal of contributions (employees terminating employment with Village of Tequesta) -Ratification of withdrawals made since the last meeting on 2 signature basis: Kevin Sossi 8/10/06 Gross: $ 251.88; Net Payout $ 201.50 • Anne Koch 9/1/06 Gross: $2,821.04; Net Payout $2,256.83 David Cooper 9/18/06 Gross: $1,446.12; Net Payout $1,156.90 Budget Report MOTION: Board member Harding made a motion to approve the Consent Agenda as submitted. Secretary Mangum seconded the motion, which carried by unanimous 4-0 vote. VIIL FINANCIAL REPORTS There were no questions regarding the financial reports. Ms. IZahim reported she had spoken to Mr. Fred Kinney at Wachovia regarding the one cent balance and he had indicated that one cent was no longer being shown. Board member Harding left the meeting at this point, at 11:45 a.m. IX. NEW BUSINESS Fiduciary Liability Policy Annual Premium Chair Garlo reported the renewal premium had to be paid right away in order to bind • coverage, and he and the Chair of the Public Safety Board had agreed to authorize • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 7 renewal and then advise the boards. The General Employees portion of the premium was $839.20, which Ms. Reid reported was a very slight increase over last year's premium, and the policy remained the same. The board was saving money by having this coverage jointly with the Public Safety Officers' board. MOTION: Board member Reid made a motion to approval renewal of the liability insurance. Secretary Mangum seconded the motion, which carried by unanimous 3-0 vote. Report by Attorney Bonni Jensen regarding State Regulation that invoices be paid timely Attorney Jensen reported the Public Safety Officers' Board had changed their policy on payment of invoices. Mr. Ken Nielson on their board, who used to be an internal auditor for the City of West Palm Beach, had brought to that board's attention a law that invoices • must be paid on a timely basis, and that the Statute defined timely payment basis as 45 days after the due date, and the due date was established as the date the invoice was received. The Public Safety Officers' Boazd had adopted a policy to pay invoices in between meetings and those payments were ratified at their next meeting. Attorney Jensen noted she was happy with the way her invoices were currently paid, on a quarterly basis, and if this law was an issue for the board she would be happy to change her bills to quarterly instead of monthly bills. Mr. Bogdahn noted that if someone's invoice was not paid within that time period, whether the provider's contract included finance chazges or not, the board could be billed for finance charges and would have to pay them, because State statutes outlined that, which Attorney Jensen confirmed. Attorney Jensen advised no one was having an issue, but the Public Safety Board had changed their policy based on Mr. Nielson's experience with the law, to pay invoices in between meetings. Discussion ensued. Secretary Mangum expressed his opinion that staff should be able to pay the bills when due and the board ratify them at their next meeting. MOTION: Secretary Mangum made a motion to adopt a procedure that invoices submitted in accordance with authorized expenditures by the board can be paid timely without prior approval by the board. Board member Reid seconded the motion, which carried by unanimous 3-0 vote. Consideration of increasing minimum amount of funds held in Independent • Community Bank • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 8 Boazd member Reid advised that Robbie Russo of HR had presented this request, and Boazd member Reid had not had a chance to discuss it with her to find out exactly why she had wanted this, but she was presenting it to the Boazd for discussion. Ms. Rahim advised the account required a minimum of $750 be kept in the account at all times. Chair Garlo advised that each time someone had to be paid out, there was a cost for each transfer of $10, but Robbie's issue was it took time to get the money transferred and therefore she had requested putting a little more in so that there she would not have to wait for a transfer. Chair Garlo expressed his opinion there was no way to do that because there was no way to predict the amount that would be needed. Discussion ensued. Ms. Reid advised there had not been that many $10 fees. Secretary Mangum suggested grouping invoices so there would not need to be so many transfers to pay invoices. Recording Secretary Laur advised that for the Public Safety Officers' board invoices, there had only been two-her invoice and Attorney Jensen's invoices. Although Attorney Jensen submitted monthly bills, and the payment had been timed so • that one of Attorney Jensen's invoices was paid within 45 days along with the Recording Secretary's bill, and the attorney's next monthly bill could be presented at the next quarterly meeting, which would be within 45 days. That had been done in order to group the invoices so that only one transfer would be needed. The problem with keeping more than needed in the checking account was those funds could have been invested. Mr. Bogdahn suggested depositing contributions into the checking account and transferring out the excess to Salem Trust. Ms. Rahim suggested looking at the balance when it was known that a payout was going to be coming up and going ahead with a transfer, and getting signatures from those members of the board who were readily available, to cut down on the time to complete payouts. Secretary Mangum suggested paying bills on a certain date each month in order to control the amount of transfers. Chair Gazlo commented if bills were paid each 45 days that would satisfy the requirement, and that would mean only one payment in between quarterly meetings. Following further discussion, Chair Gazlo advised present policy was to transfer funds as needed, and there was no way to anticipate how much would be needed, because each payout was a different amount and they varied widely. MOTION: Secretary Mangum made a motion to leave the policy as it was regarding the amount of funds kept in Independent Community Bank, and continue to transfer funds as needed. Board member Reid seconded the motion, which carried by unanimous 3-0 vote. • • BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES November 6, 2006 PAGE 9 Consideration of Sending a Member to FPPTA Trustees School -January 28-31, 2006 at Amelia Island Plantation, Fernandina Beach. Florida Chair Garlo recalled the board had approved sending Boardmember Harding to the October trustee school, but she had been unable to go, and she did want to go to this one. MOTION: Secretary Mangum made a motion to authorize Catherine Harding to attend the FPTTA School in January or to send an alternate if she could not go. Board member Reid seconded the motion. Motion carried by unanimous 3-0 vote. X. ANY OTHER MATTERS There were no other matters to come before the board. XI. COMMUNICATIONS FROM CITIZENS No citizens were present. XII. ADJOURNMENT There being no further business, upon motion by Secretary Mangum, seconded by Board member Reid, the meeting was adjourned at 12:07 p.m. Respectfully submitted, ,~ ~~ Betty Laur Recording Secretary •