HomeMy WebLinkAboutDocumentation_Pension Public Safety_Tab 01_04/18/2006• SYNOPSIS OF FEBRUARY 14, 2006 PUBLIC SAFETY OFFICERS PENSION
BOARD MEETING
1. Approved minutes of November 8, 2005 quarterly meeting.
2. Approved request that Police Dept elect a representative and an alternate.
Pension Coordinator Carlisle was to contact Chief Allison to relay this
information.
3. Presentation was made by. David West of Bogdahn Consulting.
4. Mr. West agreed to provide a written explanation why amounts from the
management company were not the same as shown on the monitor's report, or if
the monitor chose not to reply to give a reason why.
4. Mr. West agreed to add a column on the custodial report to show purchase dates
on equity holdings and fixed income and would ask Rockwood to address that.
5. Mr. West agreed to impress upon Rockwood that this account was supposed to be
individually. managed.
6. Mr. West reviewed his 3 marching orders for clarification:
(1) The board would like a letter explaining the basis of the return differences
• between the Rockwood and Bogdahn Consulting reports
(2) Rockwood was to add a column showing transaction dates as far as
security transactions in their report
(3) The board would like someone from Rockwood to attend the next meeting
to address the individual management, among other topics
7. Boardmember Nielson requested that the Executive Summary contain a written
analysis and not just talk about where to fmd something else in the report.
8. Consensus of the boazd was if there was not a pickup next quarter to look at other
managers. Attorney Jensen advised that there must be four consecutive quarters
below the 50`}' percentile, so after next quarter the board should take that step.
9. Mr. West agreed to add a new statement for the next agenda to zero in on trading
costs, etc., in order to address some form of directed brokerage with Lynch, Jones
& Ryan, possibly an opportunity for recapture.
10. A number of inaccuracies in Rockwood Capital Advisors' report were pointed
out. Boazdmember Nielson requested that the last page of the Rockwood report
titled Economic Environment & Outlook contain specifics about how they were
going to meet the benchmark, an explanation of why performance was so bad,
which stocks added and which detracted from performance, and what they were
• going to do about it.
11. Pension Coordinator Carlisle was to remind Boazdmember Genco to bring up at
the Village. Council meeting a request that a joint letter be sent from the Village
Council and the pension boazd to Jupiter Inlet Colony regazding their passing an
ordinance to comply with House Bill 1159--permitting fire departments who
provide all of the fire protection services to another municipality through an
interlocal agreement to collect premium tax from the other municipality.
Boazdmember Genco indicated she would be glad to attend Jupiter Inlet Colony's
meeting as a member of the Village Council.
12. Finance Director Forsythe reported there was no available softwaze that could
interface with the current softwaze used by the finance department, and
Boazdmember Genco acknowledged she now believed the current software was
adequate to address pension fund needs.
13. Boazdmember Genco requested that the employees receive a statement every six
months showing their pension benefit and what the Village had contributed.
Attorney Jensen advised that every other year the actuary prepared statements for
the employees, beginning September 2004 and in each even year thereafter.
14. Approved a motion to authorize Finance Director Forsythe to send a letter of
termination to Jerry Chioca to notify Rachlin Cohen & Holtz that the board would
not be going forwazd with a separate audit.
15. Approved a motion to have the items on the agenda under Standing Reports as
information items in the future.
16. Accounting Manager Monaco reviewed the budget report.
17. Approved payments of $322.20 to Business Services Connection, Inc., $703.07 to
Hanson, Perry & Jensen, P.A., $2,000 to Bogdahn Consulting, LLC, and
$3,893.07 to Rockwood Capital Advisors; and also approved Salem Trust
Company's fee advices for the period 711/05 to 9/30/05 and 10/1/OS to 12/31/05.
18. Consensus was to table recommendation for a new resident member of the board
to the. next meeting.
19. Approved a motion to have Attorney Jensen send a certified letter to Alex
Nathanson with two options (A) 20% withholding and the money paid to him, or
(B) a check made out to a financial institution without the withholding, to be
deposited into a qualified plan, and if after two weeks there was no response, the
funds were to be distributed with 20% withheld. The planned meeting with Bob
Gazlo and Mr. Nathanson was not to be held.
20. Boazdmember Genco suggested a rule that if someone attended trustee school and
• did not stay on the board a year, they must reimburse the cost.
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• ~ 21. It was clarified that Boardmember Nielson had just attended trustee school and
that Secretary Giblin was scheduled to go at some point when his schedule
allowed. The intent was to have at least one member attend each year, and this
item was to remain on each agenda.
22. Approved a motion to pay the membership fee for FPPTA only if the General
Employees board paid 50%.
23. Consensus was to change quarterly meeting dates to April, July, October, and
January, on the 3`d Tuesday of each of those months, with meetings to begin at 8
a.m., and to advise the General Employees board the reasons in case they wanted
to have their meetings the same day.
24. Boardmember Genco announced that effective the next day, February 15, the
board would have her letter of resignation.
END OF SYNOPSIS
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TEQUESTA PUBLIC SAFETY OFFICERS PENSION
TRUST FUND
QUARTERLY BOARD OF TRUSTEES MEETING
FEBRUARY 14, 2006
I. CALL TO QRDER AND ROLL CALL
The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a regular
quarterly meeting at the Emergency Operations Center (EOC) of the Public Safety
Facility, 357 Tequesta Drive, Tequesta, Florida, on February 14, 2006. The meeting was
called to order at 8.00 a.m. A roll call was taken by Betty Laur, Recording Secretary.
• Boardmembers in attendance at the meeting were: Chair Ed Sabin, Secretary Ray Giblin,
Boardmember Geraldine Genco, and Boardmember Ken Neilson. Also in attendance
were Attorney Bonni Jensen, David West from Bogdahn Consulting LLC (monitoring
consultant); Pension Coordinator Gwen Carlisle; Finance Director 3oann Forsythe;
Accounting Manager Patrice Monaco; and Risk Manager Dan Gallagher.
II. APPROVAL OF AGENDA
Hearing no revisions to the agenda, Chair Sabin announced the agenda was approved
as submitted.
III. APPROVAL OF MINUTES
1. MOTION:
Boardmember Genco made a motion to approve the minutes of the November 8,
2005 quarterly meeting as submitted. Boardmember Nielson. seconded the motion,
which carried by unanimous vote.
IV. CHANGES I N BOARD MEMBERSHIP
2. Discussion of Police Department Representative
• Pension Coordinator Carlisle reported the Police Department was in the process of
BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
February iq,, 2006
PAGE 2
selecting a representative and she assumed that by the next meeting they should have
made a selection. Boardmember Genco suggested appointing an alternate, which Ms.
Cazlisle indicated she would relay that request to the Chief. Attorney Jensen noted
there should be no problem with having an alternate if they held an election.
MOTION:
Boardmember Genco made a motion to request that the Police department elect
a representative and an alternate. Boardmember Nielson seconded the motion,
which carried by unanimous 4-0 vote.
V. PRESENTATIONS
3. Presentation by Monitoring Consultant
David West, Bogdahn Consulting, provided a presentation, and discussed the
• $24,000 loss for the quarter ending 12/31 /O5. Boazdmember Genco asked why
amounts from the management company were not the same as shown on the
monitor's report. Mr. West promised to make a note to get on the same
accounting standard and to reconcile with the management company prior to
printing his reports, commenting there might be some subtle differences in bond
pricing. Boardmember Genco advised she had asked that question every quarter
since there had been a report, and she would like an explanation in writing, and if
the monitor chose not to reply to give a reason why. Mr. West assured her he
wauld be haPPY to comply.
Boardmember Genco referred to the calendar year returns on page 2, commenting
that when talking about our policy, it was talking about the index that was
supposed to be used as a tazget, so if we had the returns that the investment policy,
i.e., index, would have suggested, we would have had a yeaz-to-date return of 3.91
versus the negative return of 1.57; then when you were talking about difference,
you were talking about a gross difference, not net. Mr. West responded the report
was talking about absolute. differences. Boazdmember Nielson asked what a good
up capture ratio was in up and down mazkets. Mr. West responded he would like.
more than 100% in an up mazket and less than 100% in a down mazket he would
like to see Rockwood come in at 105%-110% in an up market and 80% + or - in a
down market.
• Boardmember Genco noted that with the next report, Rockwood would have had a
full year, and only one quarter so far came close to meeting the board's policy,
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• TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
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and asked how much longer the board should go before considering a change in
managers. Boazdmember Genco commented that once she saw three bad quarters
she wanted to get somebody else. Mr. West responded that Rockwood had been
hired Apri14, 2005, and his firm would give them 4 quarters and if they were not
meeting objectives, a red flag would go up. An exhaustive interview of
Rockwood by Bogdahn Associates would take place and they would report back
to the boazd. Mr. West commented that hopefully the reason for under
performance would be identified and Bogdahn Associates would make a
recommendation. ~ Mr. West noted Rockwood was on thin ground and in one or
more quarters Bogdahn would go out for a seazch. Boazdmember Genco stated
she was very concerned-that three down quarters on short-term trading meant
they were not hitting too many winners and she felt if they did not make the next
quarter that they should go on probation. Mr. West commented Rockwood's
return for January was 4-4-1/2% and the S&P for January was azound 2-1/2%.
They anticipated the current quarter being an excellent quarter, and it looked like
• Rockwood was on track. Mr. West explained the mazket had been in a transition
period and in a transition period Rockwood's approach typically lagged. They
had communicated that they had shifted the portfolio to the next leadership group,
but they had done well during the month of January. Mr. West noted his firm
would be prepared to address these concerns at the next meeting, if need be.
Boazdmember Nielson noted on page 5 under calendaz yeaz returns that 100
percentile was the worst possible score, and that Rockwood must be watched
closely. Chair Sabin commented when the boazd chose Rockwood, their
performance leading into that decision had been very good, and it was a question
of whether this was a cycle or the beginning of a continual decline. Boardmember
Genco commented that principal preservation was not being considered by
Rockwood and that was something they should be concerned about because they
were dealing with pension assets. Chair Sabin commented the data shown prior,
in 2004 and the yeaz before that was for the previous manager, and that
investment manager had ranked number one, so they had gone through a poor to
excellent performance as well. Boardmember Genco responded that Bogdahn
never accounted for the change in the investment philosophy-Northstaz had had
a different management philosophy, and they barely missed it in a down year, and
they were being measured under the new criteria. They had minimized
percentages invested and it had provided the fund with a good yield.
Boazdmember Genco commented that when looking at prior performance, one
• needed to consider that Northstaz had had a different target, and when they were
measured by today's tazget it was not going to be consistent..Mr. West
• BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
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commented Northstaz had only been in lazge caps and the new manager had been
chosen because they were all cap and their performance would be less cyclical.
Mr. West noted from the time Rockwood was hired they had actually shifted-
prior to being brought on board they had nice returns-and they had started to
transition into larger cap growth from mid-cap space; they were doing what the
boazd asked, but the problem was being in transition. Mr. West noted the
concerns were well warranted and Rockwood would be watched closely.
Turnover of equity was discussed. Boazdmember Nielson asked how volatility
affected turnover. Mr. West noted Rockwood was using their approach to make
adjustments they hoped would be timely. Chair Sabin commented they were
around 75%. Boardmember Genco commented such a low institutional rate
allowed us to absorb more turnover, and stated she would like to know when
everything was purchased. Mr. West indicated a column could be added on the
custodial report to show purchase dates on equity holdings and fixed income. Mr.
West commented they would ask Rockwood to address that. There were similar
• concerns regazding fixed income; there had been a very nice quarter for returns
and it appeazed there was a market transition strategy in place, which would not
pay off until the last quarter. Regazding the fixed income ranking, continued close
observation and monitoring would be necessary. Mr. West commented the asset
allocation was right on with the investment policy.
Boazdmember Genco commented Rockwood was managing the Village's assets
similar to a commingled fund--a lot that had been sold had had better yields and
they took a loss on some and bought the same asset with a lower return.
Boazdmember Genco stated this troubled her, and the board was paying a fee that
should get them personalized, customized management. She stated she wanted
Rockwood to come to meetings; both Bogdahn and Rockwood needed to be at the
meetings so the board could heaz each talk. Chair Sabin noted the boazd had
agreed that Rockwood would be present every six months and they had been
present last quarter, and they had offered to be available by conference call.
Boardmember Genco asked who the other people were that they were managing
assets for in this "commingled fund"-other pension funds or institutions/
individuals. Mr. West advised the Village was in an institutional program.
Attorney Jensen stated the funds were supposed to be individually managed. Ms.
Cazlisle advised that the General Employees' Pension board had been with
• Rockwood but had moved to Dana to be individually managed. Boardmember
Genco stated, they were to individually manage this fund and she did not like to
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• TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES _
February ~.q., 2006
PAGE 5
be managed like a commingled fund-#hey were violating their agreement, and
she asked Mr. West to impress upon them that this account was supposed to be
individually managed. Boardmember Genco stated this was her last day here and
these were points the boazd really needed to focus on; she would request a copy of
the reports and would attend future meetings as an interested person for the
Village of Tequesta. Boazdmember Genco commented she did not like what she
was seeing. Boazdmember Genco stated we had to go through Bogdahn to get to
Rockwood Bogdahn was number one as far as dealing with Rockwood.
Mr. West reviewed his three mazching orders, for clarification: (1) The boazd
would like a letter explaining the basis of the return differences between the
Rockwood and Bogdahn Consulting reports. (2) Rockwood was to add a column
showing transaction dates as faz as security hansactions in their report. (3) The
boazd would like someone from Rockwood to attend the next meeting to address
the individual management, among other topics.
• Boazdmember Nielson referred to page one, Executive Summary, which he
pointed out only talked about where to fmd something else in the report, and
asked why the boazdmembers should have to dig to come up with an analysis
which they should have in the executive summary. Mr. West suggested it be re-
labeled asReport Directory. Boazdmember Nielson advised he would like the
analysis in the executive summary, in writing. Boazdmember Nielson commented
if it was along-term process to change managers it might not be too early to start
looking. Chair Sabin advised the process by this board had taken about a year-
- after that the responses by others had been timely, depending on the board's
decision and request. Mr. West advised they would work at the pace the board
wanted. Boazdmember Genco stated she felt it was the board's opinion if the next
quarter did not meet the tazget that Bogdahn Associates should start coming up
with a recommendation. Boardmember Genco asked if Lockwood was being used
as a rating agency; Mr. West responded that they used Mobius.
Chair Sabin clarified that it was the consensus of the boazd if there was not a
pickup next quarter to look at managers. Attorney Jensen advised that there must
be four consecutive quarters below the 50~' percentile, so after next quarter the
board should take that step.
Attorney Jensen noted that Rockwood was trading through Lynch, Jones & Ryan,
• and asked if he would recommend to the board that Rockwood should consider
some form of directed brokerage with Lynch, Jones & Ryan. Mr. West
• BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
- MEETING MIrTUTFS
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PAGE 6
responded, yes, and they could address this at the next meeting, but given the size
of the assets he wanted to see the trading volume and with $2,000 for the last
quarter there could be some opportunity for recapture. Boazdmember Genco
stated that $2,000 was a high commission, but she could not tell what our
commission was versus the market value of securities bought or sold. Mr. West
stated if they were to implement a recapture program, they could add a
consolidated statement to zero in on trading costs, etc., and could add that to the
agenda if the boazd wanted. Boazdmember Nielson asked if Lynch, Jones & Ryan
had been bought out or merged. Mr. West indicated that was true but it did not
affect their attractiveness, and explained they did not trade on their own behalf
Mr. West commented the new statement would be added to the next agenda.
4. Investment Manager Report Provided For Information By Rockwood Capital
Advisors, LLC
Boazdmember Nielson observed that the Rockwood report was lacking, for example,
on page 2 the last bulleted item under market environment for fixed income referred
to equity, which had nothing to do with fixed income. Chair Sablin agreed it was not
relevant for them to be commenting on returns in excess of 2%. Boazdmember
Nielson also observed that on page 6 under characteristics, the number of stocks was
shown as 37, but when he counted them, there were 38. Ms. Carlisle commented
inaccuracies in their reports had been noted several times. Ms. Forsythe advised
when the General Employees' pension fund had been with Rockwood they had stated
the number of shares was audited every month by a CPA firm; however, when her
staff had reconciled the numbers, what Rockwood showed as positive was actually a
negative. Boardmember Nielson commented on page 7 they had printed a name
backwards: Price T. Rowe Group Inc. Boazdmember Nielson also commented on
page 9, their report showed 12,845 shares voted for Seagate Technology; however,
on the opposite page it showed Seagate only had 2,165 shazes. Boazdmember
Nielson pointed out that the last page of the Rockwood report titled Economic
Environment & Outlook had information that any local paper with a business section
would tell you, and he would like to know specifics about how they were going to
meet the benchmark, and an explanation of why the performance was so bad. Mr.
West commented he thought they were trying to answer that on page 5 of their report
where they had made comments specific to strategy. Boazdmember Nielson
commented when he got a report of mutual funds, normally they said which added
• and which detracted from performance and what they were going to do about it to
correct the situation, and he would like that kind of report. Mr. West responded
• BOARD OF TRUSTEES
TEQUF.SrA PUBI-IC SAFETY OFFICE~tS PENSION TRUST FUND
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PAGE ~ __~~~________~-.._----
when he contacted Rockwood ~ mbe tNielson commented when therepwere so
the necessary corrections. Boar
many corrections, one wondered how good they were at their job.
Boardmember Genco commented they were looif~thgere was a limitt, since sheowould
m the information technology sector and asked
be very uncomfortable with 40%. Attorney Jensen noted the investment policy only
limited as to companies, not sectors. " Boazdmember Genco commented she hoped
Bogdahn's firm monitored not to have too much in any one sector, because that
increased risk dramatically. Chair Sabin noted that three sectors were heavy right
now. Mr. West stated they did pay attention to that.
VI. UNFINISHED BUSINESS
5. Further Discussion Of Procedure To Get Jupiter Inlet Colony To Pass Ordinance To
Comply With House Bill 1159 Permitting Fire Departments Who Provide All Of The
• Fire Protection Services To Another Municipality Through An Interlocal Agreement
To Collect Premium Taz From The Other Municipality
Pension Coordinator Gwen Cazlisle advised that she had contacted Jupiter Inlet
Colony to ask their meeting times in case a member of this board wanted to approach
them. Ms. Cazlisle reported she had d~s~ w sane ea s follow up. Boardmember Genc°
with Secretary Giblet separately, andJ
commented she had been hoping we had been soliciting Jupiter Inlet Colony to put
the pension board on their agenda, and noted that she could attend as a meampbero hed
Village Council. Ms. Cazlisle advised that Jupiter Inlet Colon had been p
to place a resolution on their ~ ~ from the Village Counc Lana tazhe~pens an board
requested a letter be sent to
jointly, asking to have this matter placed on their agenda. Ms. Carlisle expressed her
opinion the matter would need to be brought up at a Village Council meeting;
Boardmember Genco stated she would bring it up at the Village Council meeting
'Thursday night, and that the larger issue was to get Jupiter Inlet Colony to put this on
their agenda. Ms. Cazlisle indicated they might respond to a letter from themVillageo
Council. Boazdrnember Genco asked Ms. Carlisle to remind her Thursday gh
bring this up, and commented she would like to see this on Jupiter Inlet Colony's
agenda the first of March. Boazdmember Giblin advised that he had left messages for
JoAnn at Jupiter Inlet Colony with no response, and he was trying to get Chief
• Weinand to attend their meeting with him. Attorney Jensen commented that in the
other municipality where this occurred, she had had to be in contact with their
1 • BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINiJTF,S
February 14, 2006
PAGE 8
attorney weekly to get on their agenda. Boardmember Genco commented the issue
really was with the political issue and threatened litigation, and she thought that
Jupiter Inlet Colony was hanging that over Tequesta's head to see things their way. It
was noted this had been placed on the agenda for informational purposes.
6. FOLLOWUP REPORT BY FINANCE DEPARTMENT REGARDING RESULTS
OF CONTACTING COMPARABLE MUNICIPALITIES TO FIND OUT THE
SOFTWARE USED TO HELP MANAGE THE BOOKI~EPING PROCESS FOR
THE FUND
Finance Director Joann Forsythe reported that Fund Balance, the maker of the
software used in the Finance Department, had said they were not aware of any other
software that would interface with theirs. Ms. Forsythe advised that the current
software gave the contributions by year. Boardmember Genco noted the current
software had more information than she had thought, and she really did not think a
• separate system was needed, since what was needed could be pulled from the existing
system. Ms. Monaco indicated there had been no problem with specialized reports.
Boardmember Genco commented she would like the employees to get a statement
every six months of their pension benefit, showing what the Village had put in. She
felt it was really important for the people who participated in the plan to have the
information every six months, and it would only show what the Village had put in
and what their benefit was. It would be a positive thing for them to see their assets
growing and the contribution from the Village. Finance Director Forsythe
commented she would get hold of HR on this. Ms. Carlisle commented she would
like to see what the Village put in on the employees' behalf. Boardmember Genco
commented wherever she had worked they got such a statement quarterly and she had
been shocked to learn the Village did not even do it until Ms. Forsythe came, and
now they got it annually. Ms. Forsythe commented the annual statement through the
actuary could be looked at to see how it was developed. Attorney Jensen advised that
every other year the actuary prepared statements for the employees, beginning
September 2004 and in each even year thereafter. Chair Sabin asked if the
conclusion was that the existing software was adequate. Ms. Forsythe commented
there had not been a good understanding of how much information the existing
software collected. Boardmember Genco indicated her concern had teem that there
had had to be manual manipulation in the past, which was.not the case now.
• 7. DISCUSSION OF WHETHER A FULL AUDIT SHOULD BE DONE IN FUTURE
YEARS
BOARD OF TRUSTEES
• TEQUFSTA PUBLIC SAFE'T'Y OFFICERS PENSION TRUST FUND
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February 14, 2006
PAGE 9
Pension Coordinator Gwen Cazlisle reported she and Ms. Forsythe had been working
with the auditors on this item, tabled from the last meeting, when the boazd had
suggested having a separate audit. The auditors had advised that a separate audit was
no more than what they currently did for the V illage. The pension plan was included
in the Village audit, but if the board wanted a separate audit it needed to be
discussed, and the audit firm was available by telephone. Chair Sabin commented
the reference point was that he had originally come back from the trustee school with
the information that a separate audit should be done, and asked if Boardmember
Nielson had encountered that issue in the trustee school he had recently attended.
Boazdmember Nielson responded he had mentioned it several times and responses
were all over the map. No one could cite any particular requirement to have a
separate audit report. The Jacksonville Public Safety Officers Board had 1.75 billion
dollars in their fund and they relied on the audit for their city. Boazdmember Nielson
advised he had been unable to find anyone to give a solid reason to have a separate
audit report. Chair Sabin reported a speaker who was an attorney had said it was
• advisable from a fiduciary point of view, and the primary difference was who the
report was directed to. The current report was directed to the Village of Tequesta,
not to this board, and that attorney's opinion had been it was in the best interest of the
board that the letter be written to the board. Chair Sabin commented that based on
the fact others were not doing this, then he was comfortable moving away from this
one opinion. Boazdmember Genco commented this pension was guaranteed by the
financial status of the Village and they had to make it good. Ms. Forsythe noted the
new auditor partner she had been working with since Jerry Chioca's illness had
contacted an attorney who worked with 40 different pension funds and he"was not
aware of any cases having to do with this. Attorney Jensen advised she was not
aware of any cases and she agreed with Mr. Chioca, who had indicated they were
unable to provide a letter to the boazd without doing a separate audit. Ms. Forsythe
advised that an audit report was written for a third party-anyone who would be
expected rely on that report could come back and sue the auditors--that had been held
up in law. Discussion ensued. Boazdmember Nielson asked if this was a board of
the Village. Attorney Jensen advised it was, but it was .separate. Boaramember
Genco commented this board was only formalized 4 years ago. Chair Sabin indicated
since the risk was low he was comfortable without a separate audit. Attorney Jensen
advised the board did have an auditing services contract with Rachlin Cohen and that
should be terminated.
• MOTION:
Boardmember Genco made a motion to notify Rachlin Cohen & Holtz that the
• BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND.:_:
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PAGE io
board would not be going forward with a separate audit by sending a letter of
termination to Jerry Chioca. Secretary Giblin seconded the motion. Boardmember
Genco amended the motion to allow Finance Director Forsythe to send the letter on
behalf of the board. Secretary Giblin seconded the amended motion, which carried
by unanimous 4-0 vote.
VIII. STANDING REPORTS
8. Approval of new applicants for participation in Pension Plan
Robert Neier Date of Hire: 11/29/05 Police Officer
David McGovern Date of Hire: 12/2/05 Firefighter.
Mazmilian Lally Date of Hire: 1/17/Ob Police Officer
Boardmember Genco requested that social security numbers be redacted. It was
• noted it was an error that they had not been blanked out.
MOTION:
Boardmember Genco made a motion to approve the new applicants for participation in
the pension plan as submitted. Boardmember Nielson seconded the motion, which
carried by unanimous 4-0 vote.
9. Approval of Beneficiary Changes
James Trube Firefighter
Boazdmember Nielson asked if it was necessary for the board to approve changes
in beneficiary. Boardmember Genco indicated she had never seen it on the
agenda before. Attorney Jensen commented it was only an issue if someone died
and there was no beneficiary. Discussion ensued as to why this was on the
agenda for approval. It was indicated this had always been the standazd format on
the agenda. Boazdmember Genco indicated it should only be presented if the
change was for anon-family member. Recording Secretary Laur asked if this was
to be left off the agenda in the future, to which the response was yes.
MOTION:
Boardmember Genco made a motion to approve agenda item 9 and to make a policy
• ~ the board did not have to approve a change of beneficiary unless it was anon-family
- member, and the definition of family member was parents, children or immediate
BOARD OF TRUSTEES
• ~ TEQUF.STA PUBLIC SAFETY OFFICERS PENSION
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PAGE ~l
family people living in the same house and depending on your support, and a
brother would be family. Boardmember Nielson seconded the motion. Finance
Director Forsythe asked if the board could be put in jeopardy by voting on this
rather than giving it to an 13R person who could determine that through a labor
attorney. Attorney Jensen indicated there was no legal requirement for a
beneficiary, Consensus was these items, the standing reports, were meant only as
information items, but the board bad been a
stated she wished to withdraw the motion fortem 9 Boardmember Nielson Ge°co
withdrew the second.
Boardmember Genco stated she wished to also withdraw her motion for item 8;
Boardmember Nielson withdrew his second.
MOTION:
Boardmember Genco made a motion to accept the standing report items 8 and 9 as
• information items and in the future to have them on the agenda as information
items. Boardmember Giblin seconded the motion, which carried by unanimous 4-0
vote.
10. Request for withdrawal of contributions (employees terminating employment
with Village of Tequesta)
None
11. ~tification of withdrawals made since the last meeting on 2 signature basis:
None
12. Budget Report
Accounting Manager Monaco reviewed the report and noted it only showed services
in the current fiscal year. Expenses were always split pro rata based on asset value.
~Y~ng approved at the last meeting had been for the prior fiscal year. Chair Sabin
commented approximately $6,000-$7,000 would be approved today, which would
change the numbers.
IX. FINANCIAL REPORTS
• 13. Account
Statements (October-December 2005)
BOARD OF TRUSTEES
• TEQUE.STA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MIrTUTFS -
February 14, 2006
PAGE 12
Pension Coordinator Gwen Cazlisle advised the statements were in everyone's book,
and that Salem Trust did a very complete report. Staff was in contact with them quite
often, and they were very cordial and great to work with.
X. PAYMENTS TO BE REVIEWED AND APPROVED
14. .Business Services Connection -
11/8/06.meeting and minutes $ 322.20
15. Hanson, Perry & Jensen, P.A. $ 703.07
16. Bogdahn Consulting, LLC $ 2,000.00
17. Rockwood Capital Advisors $ 3,893.07
• 18. Salem Trust Company fee advice for period
7/1/05 to 9/30/05 - $ 750.00.
10/1/OS to 12/31/05 - $ 750.00
MOTION:
Boardmember Genco made a motion to approve the invoices in agenda items 14
through 18. Boardmember Nielson seconded the motion, which carried by unanimous
4-0 vote.
Chair Sabin noted that there were two statements from Salem Trust, and asked the
reason. Ms. Monaco responded that Salem Trust had gone to a new softwaze
program during the July-September period and had been consumed with getting
monthly statements correct. Their statements were wonderful and gave more
information than needed for reconciliation, and they were prompt on getting checks
out. Ms. Monaco .confirmed for Chair Sabin that Salem Trust had each month
accrued income.
XI. NEW BUSINESS
20. Recommendation of resident member appointment
Pension Coordinator Gwen Cazlisle reported there were two people interested in
• becoming a resident member of the board, who were applicants from the previous
vacancy, and they were both still very interested. -Ms. Cazlisle explained that she had
• BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES
February i4, 2006
PAGE ~3
placed an ad in Smoke Signals stating applications would be accepted until 3/31/06
and this would go to the April Village Council meeting. It was up to the boazd if they
wanted to make a recommendation of one of the two applicants to the Village
Council. Boazdmember Genco stated she would be sending a letter of resignation to
the board, and had wanted this on the Village Council agenda in March. Ms. Cazlisle
explained that a recommendation would not fill the seat until approved by Village
Council. Discussion ensued. Ms. Cazlisle suggested waiting until the April Village
Council meeting to be fair to people who might respond to the Smoke Signals ad
which gave a March 31 deadline to apply.
MOTION: (LATER WITHDRAWN)
Boazdmember Genco made a motion to fill the position with Kevin Pittman once the
position was officially vacant, and if there was another applicant later to appoint
them as an alternate resident member and they could fill in for any member who
didn't show up. Pension Coordinator Cazlisle advised that the Florida Statute did not
• allow for alternate members on the boazd. Chair Sabin seconded the motion to
continue discussion. Attorney Jensen advised that eazlier when an alternate was
suggested from the Police Department, she had been thinking they would have an
election for a representative and for an alternate, and in the event the representative
could no longer serve, then the alternate would already have been elected and could
step in as the representative. An alternate could not fill in for a member of the boazd.
Boazdmember Genco stated she knew the General Employee's Pension board had an
alternate, and was advised that they did not. Attorney Jensen advised that Florida
Statute did not have a provision in the law for someone to fill in, and she had never
asked the State if they would allow that, but could ask. If two police officers were
elected and one served out his full 2-yeaz term, then the alternate could not serve
without being re-elected. Boazdmember Genco asked as an example if the police
representative was sick for three meetings then an alternate could not show up, which
Attorney Jensen indicated was correct, and that the alternate could not serve unless
the police representative had resigned. Ms. Carlisle noted a problem was that not
many employees wanted to serve, and an alternate could be elected but be gone
tomorrow. Chair Sabin asked if there were any recommendations on the two
individuals that had been provided. Boazdmember Nielson recommended for fairness
that this should wait until everybody had had a chance to put their hat in the ring, and
he would be uncomfortable making a recommendation not having all the applicants.
Boazdmember Genco commented that meant the May meeting needed to take place
before the Village Council meeting, and her only concern had been if an emergency
• meeting was needed and there was not a quorum. It was confirmed the applicants did
not have to come before this board. Boazdmember Nielson stated he would like to
BOARD OF TRUSTEES
• TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MINUTES .
February iq., 2006
PAGE ~.4
leave the selection up to the Village Council to make the decision. Chair Sabin
expressed his opinion that this board should make a recommendation. Boardmember
Genco advised that to date the. Village Council did not interview---#hey left it up to
the board and if the board was happy the Council voted for the applicant. Since the
boazd had to work with that person she thought it was important that the board pick
the applicant they could best communicate with. Boardmember Genco stated she
would withdraw her motion; Chair Sabin stated he withdrew his second. Consensus
was to table this matter to the next meeting. Ms. Cazlisle commented it would be
nice to have the May pension board meeting before the Village Council meeting.
Boardmember Genco commented that under Any Other Matters the boazd would
have her resignation.
21. ~'ayout of contributions to Alen Nathanson
Risk Manager Dan Gallagher explained that after five years the tinastees had a right to
• mail funds that were on deposit in the plan to theparticipant, and the 5 years were up
for Alex Nathanson. Robbie Russo, HR representative, had contacted Mr. Nathanson
and he had not yet made a decision to roll over or get cash less the Federal
withholding. Bob Gazlo had set up a meeting with Mr. Nathanson, there had been
previous correspondence with Mr. Nathanson, and he had met with Village Manager
Couzzo. It was reported that Mr. Nathanson felt he had been told if there was a
change in the plan that he would benefit by the change in plan. About a yeaz ago,
Attorney Jensen had sent him a letter explaining the situation and that he was not
entitled to changes made in the pension plan after he left the Village; however, he
had not accepted that. Mr. Gallagher explained that Mr. Nathanson had a brain tumor
and sometimes was always with it. Boazdmember Genco asked if the boazd had the
option to send the payout or to leave it in the fund. Mr. Gallagher responded it could
not be left after five years. Mr. Gallagher advised that Mr. Nathanson had been
contacted with the option of rolling over the funds or taking a check. Discussion
ensued during which Boardmember Genco reported she had been issued the full
amount she had had in pension funds twice. Attorney Jensen advised that pension
rules required 20% for withholding must be taken out up front. Boardmember Genco
asked if Mr. Nathanson had understood from the letter that he could designate an
institute without the 20% withholding. Attorney Jensen recommended documenting
that. Boardmember Genco requested it be documented by stating he had two
alternatives; (A) or (B}-that he had "X" number of days; if not we aze going to do
(A) which is 20% withholding and send him a check. It was noted it should be sent
• certified. Pension Coordinator Cazlisle asked, if Mr. Nathanson passed away before
he was paid out if the Village would be paying his beneficiary for the rest of their
v__..
Bt,~ of TRUSTE~s
~~ MEE~A PUBLIC SAFETY OFFICERS PENSION
NG MINUTES TRUST FUND
+j PAGE~i~ ~' aoo6
5
r life. Attorney Jensen responded he would stil
' had not been vested. Boardmember Genco expgained that ue SeSe 20% because he
- done deliberately in the hopes if someone wanted to come back the az lunrt ~ been
the Plan• y could still be in
MOTIpN;
Boardmember Genco made a motion to write a letter '
option (A} 20% withholding. and the man ~V1pg Mr. Nathanson
made out to a financial institution without the withholding to ~ d n ~ ~ beck
qualified plan, and that we ~ mto a
give him two calendar weeks to respond, with the
attorney to write the letter and that it be sent out certified, The letter
that if after two calendar weeks there was no response that the should say
distributed with 20% withheld. Chair Sabin seconded the motion, which !d be
Gallagher asked for clarification regarding the meetin Mr.
which Boardmember Genco responded she did not want to intvolvethe Villola to
further and to leave the Village out of it. Motion carried by ananimoas ~ v g
Boardmember Nielson asked Attorney Jensen if she put. into her le ote.
individual might want to consult his taz advisor. tter that the
amended the motion to include that language ~ theB let derm,• eChair Sabin
seconded the amended motion. Motion carried by unanimous 4-0 vote.
22. Consideration of sending a member of the board to Trustee School
Pension Coordinator Gwen Cazlisle commented this was a standard item on the
agenda. Boazdcnember Genco stated she would like to make it a rule that if someone
attended school and did not stay on the board a yeaz they must reimburse the cost,
smce in the last two years, two people resigned 60 days after attendin
Boardmember Genco stated she wanted a co g ~~ school.
Boardmember Nielson expressed his opinionn that wasta good ea. Boazfor a year.
Genco commented, just let them know, ~ a lic to ut dmember
would think about it. Chair Sabin noted that was done~pd1e business wo ld
requiring a year's employment for relocation, etc. Chair Sabin commented for
clarification that Boardmember Nielson just attended
Giblin was scheduled to go at some point when his schedule allowed1~The .Secretary
to have at least one member attend each yeaz. Chair Sabin indicated he fellt i'tewoul
be helpful to keep this item on the agenda,. d
• Pension Coordinator Carlisle reported that she had
membership dues needed to be paid to been unaware that annual
PT"TPA, and last year had been skipped. In
J
BOARD OF TRUSTEES
• ~ ME~~S'I'A PUBIC S;AFE,Z,,~, OFFICE
STING MINU1')~ R.S PENSION TRUST FUND
'~ PAGE 6' 14' 2006
reseai'c~g Pazt minutes, one could not tell if the membershi
included in the motion to send someone to the trustee school. P dues had been
from the board to pay the $450 membership fee on an A motion was needed
could attend the school, unless the boazd wanted t ~~ bazis so that members
person who attended. In this P Y an additional $200 per
particulaz deal, General Employees were thrown ~ ~
of charge for the $4.Sp, which mi
Village. If two ght not benefit this boazd, but it was a benefit to the
people from this boazd and two people from the General Employees
boazd it would cost $800,. or the
Boardmember Genco Y COald all go for the $450 membershi
would be commented if two people from this boazd went in a P fee
$200 versus $450 for membershi so Yom' that
Paying nothing. Ms. Carlisle responded the tthe General Board wasbe $50 ahead by
the $450. Boardmember Genco commented there ~,~,~ nothiri a ~O mcluded in
being a member. Ms. Cazlisle advised g xt<a received by
went in a yeaz. Boardmember Genco there would be a savings if three members
Discussion ensued. Boar pointed out tit the budget only allowed ~,o
member then the General Emploby es board $ho~ented if the board decided to be a
• uld pay half of it.
MOTION•
Boardmember Genco made a motion to a
if the General Employees Board paid 50%.thBoardme ber N eorl''PPTA only
the motion, which carried by unanimous 4-0 vote. ~OII seconded
Attorney Jensen announced
responsible for overseein 175/1851er trustee school from the State of Florida,
13, 14, and 15 in Tall g ~~• Their conference would be held March
ahassee.
23. Discussion of sugg~t~ ~~~ meeting dates throw h
Chair Sabin commented other boazds ~ g end of fiscal or calendar year
meetin ~ which he was involved set a yeazly schedule for
g dates which was helpful and avoided conflicts since everyone could
calendars. Chair Sabin suggested that the Ma Au mazk their
at this tune. The second Tuesda y' fit, and November dates be selected
determined none of those dates fell on a holiday. Boaz ugh 8' and November 14. It was
board might want to consider c dmember Genco suggested that the
investment man ~~g the month to April, July, and October since the
ager's reports came out quarterl
end of the calendar Y, and were available I 0 da s
make the date later in theemonths to allow more t ted in that case the boazd miy after the
• quarterl re line to re ~t~want to
Y ports were received. P Paze for the meeting after the .
day which was h'L'• West requested that both boazds meet on the same
part of the original discussion. It was confirmed that the General
• BOARD of TRUSTEF~s
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
- MEETING MINiITES
February i4, 2006 .
PAGE 1~
Employees currently met on the 3`~ Monday of May, August, November, and February.
Boazdmember Genco commented staff might want to bring this to that boazd for their
consideration to have timeliness with the investment manager report..Discussion ensued.
It was confirmed there was nothing in the ordinance against changing the month;
Attorney Jensen noted that the General Employees board had their date in their
administrative rules. Chair Sabin commented the objective was to set dates for the
quarterly meetings for this year and to try to coordinate that with the General Employees
board, and asked if they could have it after this boazd's meeting. Ms. Carlisle reported
they could have it at 10:30, but in ensuing discussion it was pointed out they had gone to
a different date in order to be able to meet at 8 a.m. Boazdmember Genco stated their
choice was whatever their choice was-this boazd had nothing to do with that, but we
could encourage them to do that. Ms. Cazlisle asked the board to let her know what this
boazd preferred, and she could recommend to that board but if they wanted something
totally different that was up to them. Boazdmember Genco stated that was what she was
proposing, but she was asking Ms. Cazlisle to explain the reasons to the General
• Employees Boazd. Ms. Carlisle responded she could take that up under Any Other
Matters at the General Employees Board meeting. Chair Sabin confirmed that this board
wished to meet on the 3`d Tuesday of April, July, October and January at 8 a.m. The next
meeting dates therefore would be Apri118, 2006; July 18, 2006, and October 17, 2006,
and in October dates would be set for next yeaz,
XII. ANY OTHER MATTERS
Pension Coordinator Carlisle noted the following items were for information only, and
item 27 was not relevant to this board.
25. Information Item - News Scan and Reseazch Memo developed by Gabriel,
Roeder, Smith & Company
26. Information Item -Senate passed pension legislation with provisions affecting
public sector
27. Information .Item -Dana Viewpoint -January 10, 2006
Boardmember Genco announced that effective tomorrow, the boazd would have her letter
of resignation. Chair Sabin and the other members of the board expressed their
appreciation for Boardmember Genco's service, and Chair Sabin welcomed her to attend
• meetings as a guest. Boazdmember Genco asked the boazd to feel free to call her if they
• BOARD OF TRUSTEES
TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND
MEETING MT.NfLJTF.5
February i4, 2006
PAGE 18
had any questions.
XIII. CO1~~ICATIONS FROM CITIZENS
There were no communications from citizens.
IX. ADJOURNMENT
There being no further business to come before the board, the meeting was adjourned at
10:14 a.m.
Respectfully submitted,
Betty Laur
• Recording Secretary
•