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HomeMy WebLinkAboutPension General_Documentation_Tab 01_11/28/2005SYNOPSIS OF 9/19/05 GENERAL EMPLOYEES' PENSION BOARD MEETING • MINUTES 1. Welcomed new boardmember Archie C. Mangum, Jr. 2. Approved Bob Garlo as Chair and Archie C. Mangum, Jr. as Secretary for the coming year. 3. Approved minutes of the August 15, 2005 board meeting. 4. Voted to obtain an individual fiduciary liability policy of $1 million, with inside or outside defense coverage, with outside defense coverage preferred, so long as the premium was $1,500 with a leeway of 20%, and directed Dan Gallagher to take care of it. 5. Reviewed and approved custodial agreement and fee schedule with Salem Trust Company as presented. 6. Voted to terminate the contract with Rockwood Contravisory and approve Dana Investment Advisors, Inc., as the investment manager. 7. Voted that at every board meeting the board shall authorize transfer of funds necessary to meet the expenditures stated at the meeting and to maintain a $750 • minimum balance in the checking account. 8. Approved withdrawal of contributions or roll over for Jeff Newell and Brittany Bouse only upon each employee signing, so that a special meeting would not be needed. 9. Voted to adopt a policy for distribution of contributions whereby the Finance Department upon accumulating all the required data and verifying it, are authorized to transfer the money, pay the check, and report at the next board meeting. END OF SYNOPSIS U TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL BOARD OF TRUSTEES MEETING SEPTEMBER 19, 2005 I. CALL TO ORDER AND ROLL CALL The Tequesta General Employees' Pension Trust Fund Board of Trustees held a special meeting in the Emergency Operations Center (EOC) of the Tequesta Public Safety Facility, 357 Tequesta Drive, Tequesta, Florida, on September 19, 2005. The meeting was called to order at 8:30 a.m. A roll call was taken by Betty Laur, Recording Secretary. Boardmembers in attendance at the meeting were: Secretary and Acting Chair Tom Paterno, Board member Bob Garlo, Board member Koch, and Board member • Mangum. Also in attendance were Pension Coordinator Gwen Carlisle, Attorney Bonni Jensen, Risk Manager Dan Gallagher, Finance Director Joann Forsythe, and Accounting Manager Patrice Monaco. II. APPROVAL OF AGENDA MOTION: Board member Garlo made a motion to approve the agenda as submitted. Board member Koch seconded the motion, which carried by unanimous 4-0 vote. III. WELCOME NEW BOARDMEMBER ARCHIE C. MANGUM, JR. APPOINTEDBY VILLAGE COUNCIL ON 9/7/05 Acting Chair Paterno introduced Mr. Mangum and thanked him for his help. Mr. Mangum indicated he was happy to join the board and looked forward to working, hoping to make a contribution. IV. APPOINTMENT OF CHAIR AND SECRETARY FOR COMING YEAR Board member Koch nominated Board member Mangum, however, Mr. Mangum • preferred not to jump in too quick since he was not yet familiar with the plan. Board BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE a member Koch nominated Board member Paterno, however, Mr. Paterno indicated he could not do it-- he had made a promise to his family. MOTION: Board member Koch nominated Board member Garlo as Chair; Board member Mangum seconded the motion. Motion carried by unanimous 4-0 vote. Attorney Jensen explained that the duties of the secretary were to sign the minutes and to be responsible for second signature on many things for certification purposes. MOTION: Board member Paterno nominated Board member Mangum as secretary. Board member Koch seconded the motion, which carried by unanimous 4-0 vote. V. APPROVAL OF MINUTES • MOTION: Board member Paterno made a motion to approve the minutes of the August 15, 2005 regular meeting. Board member Koch seconded the motion, which carried by unanimous 4-0 vote. VI. UNFINISHED BUSINESS Fiduciary Liability Insurance Renewal Dan Gallagher, Risk Manager, confirmed that everyone had received the explanation of ERISA. Mr. Gallagher advised that the insurance companies he had contacted indicated to go with full coverage on fiduciary insurance, it would have to come from the excess pool of coverage since it would exceed $2 million, and there would be an annual premium of $20,000 to $25,000, and he should have that in writing this week. If the board wanted to do what had been done in prior years, to have one policy cover both General Employees and Public Safety Officers pension boards, $2 million coverage would cost approximately $4,000. The premium last year had been $3,987, pro-rated between General Employees and Public Safety, based on the amount of assets in each plan. An alternative would be for each plan to have separate policies, and the minimum coverage was $1 million coverage. Mr. Gallagher advised the board could have a separate policy, a joint policy with Public Safety, or go into the excess • pool. Mr. Gallagher asked for direction from the board so that he could finalize this BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE 3 matter. Secretary Mangum asked if this was a part of the city government's coverage, to which Mr. Gallagher responded it was this board only. Board member Paterno commented it was his understanding this was the only board in the city that could be sued individually. Attorney Jensen advised that officers and directors coverage excluded fiduciary relationships. Secretary Mangum commented he had had experience where the board was covered, and a special rider covered the pension trustees. Mr. Gallagher explained the rider we had was just general liability explained the coverages there would be under employee benefit liability coverage. Secretary Mangum asked the advantage of having a separate policy, to which Mr. Gallagher responded it had been a savings to have the policy together; the cost for separate policies would have been close to $5,000. He recalled that this board's share had been close to $600. Board member Paterno commented the policy could be $2 million jointly, or separate policies, but for him to be on this board he thought the • funds must insure the trustees because if there was a lawsuit the trustees needed to be protected. All of the trustees were volunteers, and they must make sure the assets were covered. Mr. Gallagher commented the board had ahands-off position, having given responsibility to the investment manager, and asked if the investment manager had the initial liability. Attorney Jensen advised that if there was a lawsuit the pension board would be first in line. There was a contract with the monitor, and there would be contracts today with the custodian and the investment manager; however, the buck would stop with this board. Attorney Jensen advised that having this coverage was for two reasons-one, to provide defense coverage so that did not eat up the fund assets, and two, the municipality was responsible to provide defense coverage, so this insurance would be actually be helping the municipality as well as providing protection for the trustees. Finance Director Forsythe asked if this coverage could be added as a rider on insurance carried by the Village Council. Mr. Gallagher indicated it was not available as a rider and would have to be a separate policy. Chair Garlo commented this had been discussed at the last meeting. Board member Paterno recalled the discussion had been about having less coverage-20% of the fund; however, $1 million was the minimum and you would pay the same for $200,000 as $1 million because that was the minimum, so you might as well get the $1 million coverage. Mr. Gallagher reported that last year Palm Beach had gone with full coverage at a cost of $20,000, and they were not going to do that this year. The current amount in the fund was $525,000. Board member Paterno commented that this • BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE 4 fund now had a different manager than Public Safety, and was reducing exposure by being more diversified. Mr. Gallagher reported the premium would be approximately $4,000 for $2 million coverage and around $1,500 if a separate policy for $l million. Secretary Mangum commented he thought $1 million was adequate at this particular time. Mr. Gallagher commented he would get a figure on $1 million coverage, but needed to know if the board wanted separate or a joint policy, and October 1 was the deadline and he wanted to get a rider. Secretary Mangum indicated he preferred to have a separate policy. Board member Koch asked the attorney's opinion. Attorney Jensen stated she recommended that the board have fiduciary liability insurance, but whether they had a separate policy or a joint policy with Public Safety for cost savings was a business decision. Attorney Jensen advised that from past experience, the board had wanted to go their own way, and this might be another way of going their own way, and not having to make • decisions on what the other board had done. Mr. Gallagher noted prior boards had wanted to go individually, but it came up that they could save money by going together. Board member Paterno explained for the benefit of Secretary Mangum that the boards had previously been one, but the law had changed and the funds had to be split. The decision had been made to piggyback on the other board in order to save money. Now this fund was growing, and Board member Paterno stated he would back the motion either way. Chair Garlo indicated if the board got a $1 million policy covering fiduciary liability, he would like to see the policy as soon as possible to see if defense coverage was included. Board member Paterno commented, get an individual $1 million policy assuming the premium would be around $1,500 and defense coverage had to be included. Attorney Jensen advised the defense coverage could be inside or outside the $1 million limit. Chair Garlo commented outside would be preferred. Mr. Gallagher was asked to get a quote on the coverage. Mr. Gallagher indicated he had not gotten a quote on $1 million but would get that today. MOTION: Board member Paterno made a motion to obtain an individual fiduciary liability • policy of $1 million, with inside or outside defense coverage, with outside defense BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE 5 coverage preferred, so long as the premium was $1,500 with a leeway of 20%, and for Mr. Gallagher to take care of it. Board member Koch .seconded the motion, which carried by unanimous 4-0 vote. Mr. Gallagher stated he would get the quote that day. VII. NEW BUSINESS ('n Consideration of Approval of Custodial Agreement and Fee Schedule with Salem Trust Company Attorney Bonni Jensen reviewed responsibilities in the custodial agreement, and Exhibit A, the proposed fees, which had been provided in the packets. Attorney Jensen advised that the board should also be aware that Salem Trust provided a money market account for the-cash in the fund's account, for which there was a fee, and Salem Trust received up to 25 basis points of that fee for providing a money market account. Dana would tell them • which of the 4 available money market accounts to choose. Salem Trust would maintain a $15 million fidelity bond and $5 million errors and admissions insurance. The agreement could be modified only by written agreement signed by the Chairman and Secretary. Salem Trust would provide online access to the custodial accounts only for viewing and printing. Ms. Forsythe indicated she would call to find out if that was available now. Attorney Jensen indicated termination could take place with 30 days notice by either party, and reviewed Exhibit B, the signature authorization, noting the board must tell Salem Trust the number of signatures required. Ms. Forsythe advised that Dana was agreeable to working with Salem Trust. Board member Paterno asked Attorney Jensen to explain the last paragraph on page 4 of the agreement "The Custodian shall not be responsible for any action ornon-action taken in accordance with written instructions or notice received and may rely upon and shall be protected in acting upon any written order from the trustees or authorized agent or any other notice, request, consent, certificate, or other instrument reasonably believed by the Custodian to be genuine and to have been properly executed hereunder. " Attorney Jensen explained that the custodian would not be responsible for any action on inaction they took at the board's direction, and any information the board gave them must be accurate. Board member Paterno commented it would not affect inaction if the board told them to do something and they did not do it; only if the board told them to do something and it was incorrect or the board did not tell them to do something. Attorney Jensen gave • as an example if they always sent proxy voting material and then did not do it, and the BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September 19, 2005 PAGE 6 board had relied on the fact they had done it in the past, then the board could pursue them legally unless they said, you're right, we should have done it. Board member Paterno commented that paragraph seemed very open to interpretation. Attorney Jensen indicated it was fairly common. Secretary Mangum expressed his opinion that the paragraph was pretty specific and referred solely to any written instructions from anyone. If he wrote them instructions that were wrong, then they were not responsible. Board member Paterno indicated his concern was that if they were supposed to do something and the board did not send them written instructions to do it, and something happened, they could say they had not been supposed to do it. Discussion ensued. Attorney Jensen advised this was .less open-ended than one would think-it was really attempting to be specific in regard to written instructions or notice received, and any action or inaction iri accordance with those particular instructions. They were trying to protect themselves from the circumstance that trustees changed or information changed and they were not made aware of it. Board member Paterno stated he was fine with that. Board member Paterno commented it was up to the board who would have access to the • online information. Discussion ensued. It was noted that the online information would not be particularly valuable to the participants-it would basically be a bank statement. It would be helpful to Finance to let them know if a check had been cashed, if there had been buys and sells, if a retiree had been paid out if his check had gone through, etc. Consensus was that the Finance Department under the direction of the Finance Director, Dana, and Joe Bogdahn would have access and that Director Forsythe would coordinate registration with Salem Trust. Board member Paterno asked if there was any reason to change the number of signatures required; it was currently two. Attorney Jensen advised that there should be at least two and she believed three would be unwieldy. MOTION: Secretary Mangum made a motion to approve the custodial agreement and fee schedule with Salem Trust Company as presented. Board member Paterno seconded the motion, which carried by unanimous 4-0 vote. (8) Consideration of Approval of Investment Manager Agreement with Dana Investment Advisors, Inc. Attorney Jensen reviewed the investment manager agreement and the fee schedule on Exhibit A which had been provided in the packets. Attached were Dana's forms and also • BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE ~ a copy of the investment policy guidelines which told Dana what they could do with the fund's investments, and a copy of the pension plan document provision dealing with investment guidelines. Attorney Jensen advised that Dana would have absolute discretion to invest so long as they complied with the investment policy guidelines, and to place orders with brokers and dealers. The board could express a preference for them to place transactions with a certain broker, but this board had not done that to this point. The manager had the responsibility to vote proxies; since the board did not have a policy on that, the proxy policy from Dana was being attached. Under this agreement and language that had been added by Dana, the manager was authorized to retain the services of a proxy voting agent to assist the manager in researching, monitoring, and voting proxy statements. Due to the nature of class actions; however, they were not taking responsibility of making sure the board's class actions were filed. A quarterly report would be provided on the assets and it would be presented by a representative on a quarterly basis. Dana would maintain a $500,000 fidelity bond and $5 million errors and omissions insurance. Trustees were not liable for acts or omissions of the manager. The agreement could only be amended by an amendment signed by the Trustees; and could be • terminated by the trustees with 30 days written notice to the manager or by the manager with 90 days written notice to the trustees. For the benefit of new board member Mangum, Chair Garlo explained that some time ago the board had sought to change investment companies for several reasons and had heard presentations, and everything had been facilitated by the monitor, Joe Bogdahn. There had been a split vote by the board between this company and Rockwood, who offered a commingled fund. The board had gone with Rockwood but there had been lots of issues with that commingled fund which created problems for the Finance Department, which was why the change was being made to Dana Investment Advisors. Secretary Mangum asked if this was all fully documented in the minutes. Attorney Jensen advised there had been an analysis by the monitor and also in-person presentations by Dana, Rockwood, and a third company. Board member Paterno noted that had happened about a year ago, and approximately two months ago Joe Bogdahn had compared and evaluated the companies again for performance. Attorney Jensen advised that this board was not required to meet ERISA but had followed all the State requirements, and she believed had actually also fulfilled the ERISA requirements. Secretary Mangum commented he believed they paralleled, with which Attorney Jensen agreed. Board member Paterno questioned why the language on page 5 regarding the proxy voting agent was underlined. Attorney Jensen explained that was language added by Dana. . Board member Paterno asked who was paying for the services of a proxy voting agent that BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September 19, 2005 PAGE 8 Dana was authorized to retain. Attorney Jensen advised that would come from Dana. MOTION: Board member Paterno made a motion to terminate the contract with Rockwood Contravisory .and approve Dana Investment Advisors, Inc. as the investment manager. Board member Koch seconded the motion, which carried by unanimous 4-0 vote. Attorney Jensen advised she would be the person who would be sure this was signed, and she would send out a letter out to Rockwood to cancel them as soon as she received both documents signed by Dana and Salem Trust and she knew they were ready to open an account. Procedure to be followed was discussed. The letter was to state that the money was going from Rockwood to Salem Trust and Attorney Jensen could send the letter to the Village so it could be signed by the trustees. Following a short break, the meeting reconvened at 9:42 a.m. • Attorney Jensen advised that each time there was a new trustee, a new si nature g authorization would be needed for Salem Trust. (9) Consideration of establishing Minimum/Maximum amount of funds to keep in Checking Account at Independent Community Bank, with Authorization to Transfer Funds into Checking Account for the purpose of having sufficient funds to cover Employee Payouts, Approved Bills, and the minimum $750 needed to avoid Service Charges on the Account Accounting Manager Monaco advised that $26,916.78 needed to be transferred into the checking account to pay expenses approved at the last meeting plus the two payouts requested to be approved in the next agenda item. Ms. Monaco requested direction going forward, and advised the last direction had been to deposit the next two contributions into Independent Community Bank to pay distributions and bills approved at the last meeting. Those two contributions had covered the distributions, leaving only $381, so the bills still needed to be paid. Discussion ensued. Finance Director Forsythe advised that if all contributions were sent directly to the bank it would never be equal to the need and a monthly transfer from Salem Trust would still be needed, and it would be cleaner to have everything go to Salem Trust and then do one wire transfer for whatever was approved at the meeting. The cost of a wire transfer was $15. Ms. Forsythe advised that Salem Trust did not like to write checks to pay bills and charged $15 per check; however, they only • BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE 9 chazged $3.00 per check for repetitive checks such as payments to retirees. Ms. Monaco stated the amount of all expenses approved from the prior meeting was $9,231.59, and a transfer of $26,916.78 was needed to pay everything and keep the minimum of $750 to avoid a service charge. Chair Garlo stated the motion would be to maintain $750 in the checking account at Independent Community Bank and approve the Finance Department implementing a wire transfer as needed to pay all bills approved by the boazd. Board member Paterno did not want to leave it open-ended. Chair Gazlo indicated the language could be funds necessary to pay approved expenses. Boazd member Paterno asked Secretary Mangum's opinion as to whether a number should be stated or if it should be left open-ended. Secretary Mangum commented the boazd should know the number and they had a number today of $26,916.78; he questioned how Finance would get money between meetings if the board only met quarterly. Finance Director Forsythe explained that if someone terminated they would have to wait until the next quarterly meeting for approval-there was nothing set in place that allowed any payout for anything else between meetings. Secretary Mangum was advised that it was the policy of this boazd that if someone terminated the day after the quarterly meeting they would have to wait 90 • days until the next quarterly meeting to have their payout approved. Board member Paterno advised that the other board had paid out to a General Employee by mistake, and this board had to reimburse them, and that was why that policy came about. Secretary Mangum asked if the funds could be rolled over; response was they could be rolled over or paid out. Secretary Mangum expressed surprise that people were only paid quarterly and asked if there were any credit problems by doing that. Chair Gazlo responded there were unhappy employees if they had to wait 90 days and their money was not making any interest. Secretary Mangum commented he was also surprised that employees were required to put in 5% and their money earned no interest unless it was invested, and commented he was sure they were not happy about that. Board member Paterno commented the same thing happened when they did not fill out the forms to get their money. Secretary Mangum asked if after today Brittany Bouse could get her money; Board member Paterno responded it did not look that way. It was indicated this discussion was really for the next agenda item but it could be discussed now. Chair Garlo advised this had been discussed, and without an employee's signature on their pension payout, the boazd felt it difficult to approve the payout of a certain dollar amount. The two forms presented today had no signatures, and he had found out the reason was the figures had not been calculated by payroll. Chair Gazlo was advised at the time those forms were placed in the packets the figures had not been calculated but they were now, and Ms. • Monaco had the new forms with her today. Chair Gazlo commented there was probably BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE io only a verbal that the employees wanted their money. Finance Director Forsythe suggested the forms be signed at the exit interview. Chair Garlo responded he never got them in time. Director Forsythe suggested withholding the final paycheck so they had to come in and sign everything to get the paycheck. Chair Garlo advised these numbers came in after the final paycheck. Ms. Forsythe responded they did not have to, that Finance could calculate that because they knew what people were earning. Chair Garlo commented they had never been able to get those figures within that period of time. Ms. Forsythe commented that Finance should be able to get all their time sheets from the Department Heads within a week and be able to calculate that. Chair Gazlo said he had been told all along that it took another two weeks after the final paycheck to figure it out. Finance Director Forsythe asked if a contribution was taken out of their final paycheck, which was confirmed. Mr. Gazlo noted that was why there was lag time and the employee was .usually gone by that time, and they had to come back in to sign; which was okay except when, like now, they missed a boazd meeting. Boazd member Paterno commented the other problem was what if somebody wanted to do a roll over and they had been sent a check-then they could not roll it over-so the amount needed to be stated on the form • that was to be rolled over or paid. Board member Paterno gave as an example JeffNewell was owed $14,000+, a large amount, and if a check was issued and he cashed it but then he wanted it rolled over, and he never signed the form, the board would be held liable. Ms. Monaco advised she wrote those checks and did not write a check until the employee had signed off. Board member Paterno asked how they would know he wanted a check. Ms. Forsythe responded on an exit interview even without knowing the amount, the employee could sign as to which they wanted and Finance could fill in the amount later; it should not matter what the amount was as much as what they wanted done with it. Chair Garlo commented that made perfect sense but he could not count the times an employee wanted to wait and think it over, talk to their wife or husband, talk to an investment person, and he did not always get the answer right away. If they did know, they could sign. Ms. Forsythe commented there were three choices-roll over, take the money, or leave it in, and if they signed to leave it in that was okay. Board member Paterno felt it should be presented that there were two choices, roll it over or take the money and be taxed 20%, and there was a board meeting coming up and it would not get approved until the form was signed. Chair Gazlo advised the two people today anticipated getting their money. Board member Paterno expressed concern that it could be a mistake to write a check for the large amount for Mr. Newell because if it were his, he would want to roll it over. Chair Garlo stated all he had right now was asecond-hand verbal that Jeff wanted the money. • Ms. Forsythe commented if the goal was to move this forward, could the board just say BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE ~l they approved this is the amount they have, and after, they come and sign which way they want to go with it, we will then only withdraw from Salem Trust the amount needed to pay the employee. Board member Paterno said that could be done today, but this had been discussed before and it should not be like this, and the fault needed to be corrected. Director Forsythe commented she believed a procedure could be set up to make this go more smoothly. Chair Garlo stated, don't bring separation forms to the board without employee signatures. Ms. Forsythe noted there was no way this board knew how much these people had so the figures should not matter to the board, so just going on that could we just say these people have terminated and the board approves termination and payout of their amount. Board member Koch stated, but not without a signature. Board member Paterno stated he had no problem with that, but with a signature. Ms. Forsythe advised Finance would not pay out until this form was completed. Chair Garlo commented, in which case, these could be tabled and brought back in November. Attorney Jensen advised other funds had employees fill out an application and sign it that was basically saying, I want my money, with no numbers on it. Then there was a process to • follow up and they could work that out with the Village and there wouldn't be spaces there with no numbers. Attorney Jensen advised she could send a form which the Village could make their own. Chair Garlo asked that Attorney Jensen fax the form. Ms. Forsythe felt it would be best signed at an exit interview, and if they didn't know what they wanted to do then, they could sign that they wanted to leave the money in the fund and then get it later. Board member Mangum asked why anyone would want to leave it in. Ms. Forsythe commented maybe no one was telling them their money was not earning any interest. Chair Garlo commented when the form came to the board it needed to have a signature on it. Chair Garlo asked to return to item 9. MOTION: Board member Paterno made a motion that at every meeting the board authorize transfer of funds necessary to meet expenditures stated at the meeting and to maintain a $750 minimum balance in the checking account, and in practicality, the Finance Department would state the number that needed to be transferred. Secretary Mangum seconded the motion, which carried by unanimous 4-0 vote. (10) Approval of Withdrawal of Contributions Jeff Newell -terminated 8/26/06 and Brittany Bouse -terminated 8/29/05 Going back to item 10, Chair Garlo advised that all he had was asecond-hand verbal • indication these people wanted their money given to them, and he was not comfortable that BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September ~9, 2005 PAGE 12 Mr. Newell would really want that lazge amount of money given to him; and therefore, asked if the board wanted to consider a motion to come back in November with signed forms. Board member Koch asked if a special meeting could be held; Board member Mangum asked if this could be done by telephone. Attorney Jensen advised that if a quorum was present in a public place, then one member could be on the phone. Board member Paterno commented he believed in procedures to make it work right and the breakdown had been in our system, and the City had not worked out details from the last time this was discussed three months ago. Chair Garlo felt it was a timing problem. Boazd member Mangum commented he hated to see any employee go away unhappy, and he could come for a special meeting anytime and saw no reason there could not be a special meeting with only one item, and asked what else was required other than a quorum of the board. Attorney Jensen advised a special meeting could be held with 24-hour notice and there were no other particular rules. Chair Garlo asked Ms. Forsythe to repeat her suggestion. Finance Director Forsythe suggested approving the termination and paying out, and then later the amount could be determined and the Finance Department could come up with the paperwork. The employee • would need to sign if they were in agreement or disagreement or write in the form that if they failed to come in when notified they would automatically remain in the pension trust. Board member Paterno commented they weren't coming in initially because they understood they needed a final number in order to come in. Ms. Forsythe responded that was why she thought it should happen at the exit interview and give them three choices-leave it in, take it out, or roll itover--and they had to pick one. Boazd member Koch suggested a motion to have a special meeting to finalize this matter this time. Ms. Forsythe clarified that the correct amounts were $16,588.99 for Jeff Newell and $1,096.20 for Brittany Bouse. MOTION: Board member Paterno made a motion to instruct staff to pay out or roll over distributions to Jeff Newell and Brittany Bouse only upon each employee signing, so a special meeting would not be needed. Board member Koch seconded the motion, which carried by unanimous 4-0 vote. XI. ANY OTHER MATTERS Board member Paterno indicated he felt the forms should be signed before coming to the board, because he could not understand why Mr. Newell would want to take that amount of money. Chair Garlo commented he believed there was a bigger question, that in the past there was a policy of doing payouts with two signatures, and now if someone resigned the day after the board's quarterly meeting, they had to wait three months. Boazd member • BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE ig Mangum commented he thought the board could get over that by working with Jody on procedure so long as there was a signed document and a close estimate of the amount the board did not have to know the exact amount they could authorize payout upon proper procedure and go about their business. Chair Garlo indicated that was the procedure now; the other board did not wait but paid out upon two signatures, and they ratified it at the first opportunity they had, and the person did not have to wait, they got paid right away.. This board decided they would wait until they had a meeting and approve it before the cheek was cut. Board member Mangum stated he did not want anyone to wait three months, and suggested going back to ratification. Board member Paterno commented he was all for that but there had been problems with the City's part of the process and the procedures had not changed since there was a problem. Chair Garlo commented the problem had been that a person got paid out of the wrong fund. Board member Paterno expressed concern that someone would get paid without a signature; Ms. Forsythe responded Finance would never do that. Board member Paterno commented they would never pay someone out of the wrong fund, either. Ms. Forsythe commented that was when they did not go through Finance; that had been the Public Safety Board and they had ratified it. Ms. Forsythe explained they • approved it at their meeting and Finance found out after the fact. Board member Paterno stated the procedure was the problem and had not been corrected. Ms. Forsythe recommended having Finance sign off and that the board not approve it until Finance had signed off. Pension Coordinator Carlisle asked if the board was saying not to put distributions on the agenda until there was a signed form; Chair Garlo stated yes, unless the board decided to pay in advance, if it was not signed it was not to go on the agenda. Board member Mangum agreed with that but asked to give it another shot, stating, if you had all the documentation, a signed form, cleared with Finance, the board could authorize Finance to make the transfer and write the check. The board should be able to set up a system that was right and depend on their people to carry it out. Board member Koch asked who was to set up that system. Chair Garlo commented if Board member Mangum was saying the board had to authorize the disbursement then he was saying to wait for a board meeting; if you said the practice was Finance would pay it with two signatures and it would be ratified at the next board meeting then there would be no lag time. Ms. Forsythe commented this would go through Human Resources for all the forms and signatures, then it would come to Finance to review and be sure it was complete and then put in the figures. The figures did not have to be in when they signed it because they were signing whether they wanted to get the money or roll it over. Pension Coordinator Carlisle commented she would not sign without the figures being in; Chair Garlo commented that was the first thing they wanted toknow--how much. Ms. Forsythe responded that was fine too, they could wait until the whole form was completed and then it could go to Finance, and that would allow it to be done between meetings. • BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September ~9, 2005 PAGE 14 MOTION: Board member Mangum made a motion to adopt a policy whereby the Finance Department upon accumulating all the required data and verifying it, are authorized to transfer the money, pay the check, and report at the next board meeting. Board member Paterno seconded the motion, which carried 3-1 with Board member Koch opposed, stating it was not working. Finance Director Forsythe commented the last time it didn't work it actually went before the Public Safety Boazd and did not work. It was clarified that both Mr. Newell and Ms. Bouse would be rolled over or paid under the new policy. It was also clarified that the two Boazd signatures would be last, after all other signatures, to assure staff had complied with what the board asked for. Chair Gazlo stated what had been accomplished here was that the Boazd was no longer in an approving role. Attorney Jensen agreed with Ms. Forsythe regazding the numbers, that the board did not know what the numbers were and had to rely on the municipality. In her experience there were as many boards who approved it before it was • paid out as the other way. IX. ANY OTHER MATTERS Board member Paterno referred to the last meeting minutes on July 7, page 2, item 15, that Ms. Forsythe would contact Mr. Palmquist regazding an actuarial report, and the RFP that Attorney Jensen was to prepare. Recording Secretary Laur responded those items would be on the next quarterly meeting agenda that the RFP would be on the agenda for the board's approval. Finance Director Forsythe verified the board wanted an actuarial report by Mr. Palmquist as of 9/30/05 and after that would go out for RFP. Discussion ensued regarding getting figures to Mr. Palmquist and his determination of the contribution amount. Board member Koch commented she would like to know if Mr. Garlo could not go to the trustees school since if he could not go she was to go. Board member Koch explained she had voted against the motion earlier because she did not want a continual problem. Board member Mangum stated he thought it would be handled- on the other board on which he served the accounting department did the work and he reviewed it at the end of the month and had not caught an error in three years, noting there were problems there also, but different than here. X. COMMUNICATIONS FROM CITIZENS • BOARD OF TRUSTEES • TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND SPECIAL MEETING MINUTES September i9, 2005 PAGE 15 There were no comments from the public. XI. ADJOURNMENT Board member Koch made a motion to adjourn, seconded by Boardmember Paterno, and unanimously approved. Therefore, the meeting was adjourned at 10:34 a.m. Respectfully submitted, ~y:~1 Betty Laur Recording Secretary • ATTEST: Archie C. Mangum, Jr., Secretary •