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HomeMy WebLinkAboutMinutes_Pension General_08/07/2006SYNPOSIS OF GENERAL EMPLOYEES' PENSION BOARD QUARTERLY MEETING MINU"I ES OF 8.7.06 1. Approved minutes of 4.24.06 quarterly meeting. 2. Consultant Joe Bogdahn reviewed the monitor's quarterly report. 3. Approved changing the quarterly meeting date to the first Monday and to rotate the starting times of 8 a.m. and 10:30 a.m. with the Public Safety Boazd, with the next meeting to be Monday, November 6, 2006 at 10:30 a.m. 4. Authorized Gabriel Roeder & Smith to do a study to determine the cost impact to the fund of crediting interest on the employee contribution payout prior to vesting, calculated on 1 % through 5%, calculated on the balance, not compounded, and effective upon passage. Discussed providing employee benefit statements annually and the cost from Mr. Pahnquist. Chair Gazlo indicated he would discuss this with Human Resources and bring it back to the next meeting. 6. Approved payments to: • Business Services Connection - $ 265.82 • Hanson, Perry & Jensen, P.A. $ 932.20 • Bogdahn Consulting, LLC $ 750.00 • Dana Investment Advisors $ 1,175.30 • Salem Trust Company fee advice $ 543.01 7. Approved new applicants: Russell White Kevin Sossi Lorraine S. Ferina Merlene Reid Christopher Dittneir Roger Ramdeen Date of hire 11/19/75 (5/31/06) Date of hire 5/22/06 Date of hire 5/22/06 Date of hire 6/5/06 Date of hire 6/12/06 Date of hire 6/ 1 /06 8. Ratified withdrawals made since the last meeting on 2 signature basis: Vicky Rolen 3/31/06 Gross: $1,315.52; Net Payout $1,052.42 Walter Schmanski 5/15/06 Gross: $ 903.91; Net Payout $ 903.91 William Taylor 5/26/06 Gross: $1,537.39; Net Payout $1,537.39 Roger Ramdeen 6/12/06 Gross: $ 70.00; Net Payout $ 56.00 9. Approved budget report. 10. Consensus of the Board was to direct the Finance Department to close the Wachovia account. 11. Accepted investment manager's report for quarter ended 6/30/06. 12. Approved Catherine Harding to attend the FPTTA school to be held October 8-11 at 5t. Petersburg, Florida. 13. Board member Paterno announced he would be leaving the board when a replacement was found. 14. Attorney Jensen announced website and in emails that become public record. a change in the law that the public must be notified on the by responding with an email their a-mail address would END OF SYNOPSIS TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND MINUTES OF REGULAR QUARTERLY BOARD OF TRUSTEES MEETING AUGUST 7, 2006 I. CALL TO ORDER AND ROLL CALL The Tequesta General Employees' Pension Trust Fund Boazd 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 August 7, 2006. The meeting was called to order at 8:00 a.m. A roll call was taken by Betty Laur, Recording Secretary. Boazd members in attendance at the meeting were: Chair Bob Garlo, Secretary Archie C. Mangum, Jr., Board member Anne Koch, and Boazd member Catherine Harding. Boazd member Tom Paterno arrived at 8:06 a.m. Also in attendance were Monitoring Consultant Joe Bogdahn, Attorney Bonni Jensen, Pension Coordinator Gwen Carlisle, Accounting Manager Patrice Monaco, and Accounting Clerk Monica Rahim. II. APPROVAL OF AGENDA Chair Gazlo requested item 6 on the Consent Agenda be pulled for discussion. MOTION: Board member Harding made a motion to approve the agenda as amended. Secretary Mangum seconded the motion, which carried by unanimous vote. III. APPROVAL OF MINUTES -TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES QUARTERLY MEETING MINUTES - APRIL 24, 2006 MOTION: Secretary Mangum made a motion to approve the minutes of the April 24, 2006 regular quarterly meeting as submitted. Boardmember Harding seconded the motion, which carried by unanimous vote. IV. PRESENTATIONS PRESENTATION BY MONITOR AND RESPONSE TO BOARD'S REQUESTS MADE AT LAST QUARTERLY MEETING Joe Bogdahn, Bogdahn Consulting, LLC, provided a presentation for the quarter ended June 30, 2006. Mr. Bogdahn explained there had been two large contributions of about $50,000 that were the reason for the cash balance, but that usually Dana tried to stay fully invested. During review of the report, Mr. Bogdahn noted this was a good report with positive cash BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES August 7, 2006 PAGE 2 flow and the portfolio was up 11.25% year to date, with the benchmark indexes up by only 5.25%. The most recent quarter the fund was up only 1/2% but the benchmark was down. The figures shown all reflected Dana's performance. Boardmember Paterno arrived at this point in the meeting at 8:06 a.m. Mr. Bogdahn explained that returns for the past three quarters was the most important number; that the board was looking for 8% between now and September 30, but through June 30 the returns were up 8.38%. More than half of their peers did not beat the indexes for that time period. The bond portion of the portfolio had outperformed during the most recent quarter. All returns were reported net of fees. Mr. Bogdahn advised that the benchmarks used were not true and that his company was working on a true benchmark within the equity universes by hiring a new employee who had started working on that last week. Mr. Bogdahn reported holdings were 25% in large cap stocks, 14.4% inmid-cap stocks, 11 % in small cap stocks, and 6% in international securities. The Turkish investment funds were of no particular value. Dana was sector neutral for domestic indexes, and for international they added value by purchasing country specific I-shares, which was like buying the S&P of a particular country. I- shares were a very inexpensive way to get international exposure. Mr. Bogdahn reviewed the measurements for risk, and reported risk measures showed more risk was being taken-the fund was more volatile than the benchmarks-but it was all on the up side. There were no questions from the board. Mr. Bogdahn indicated that when his company made their original presentations they had quoted their fee significantly reduced for the General Employees Pension Board based on meeting on the same day as the Public Safety Officers' Pension Board, since for such a small fund their standard fee would have had an adverse impact on the assets. In fact, they had not charged at all for the first year, and there had been few dates when the boards had actually met on the same day. Mr. Bogdahn explained he had not been able tv attend the last meeting because the date conflicted with established meetings he must attend in Lake City and he would like the board to address this matter, noting both boards wanted to meet at 8 a.m.; however, the Public Safety Board had agreed to rotate times with this board for one to meet at 8:00 and the other at 10:30 on alternate quarters. Chair Garlo commented the board had made a motion that carried unanimously to keep +their meetings on the 4~' Monday at 8 a.m. Mr. Bogdahn responded that he would be unable to attend, but could have another representative from his office attend. Secretary Mangum indicated it was important to have an established time. Boardmember Paterno BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES August 7, 2006 PAGE 3 asked that he not be considered in this decision since this might be his last meeting. Discussion ensued regarding the date. MOTION: Board member Koch made a motion to change the meeting date from the 4th Monday to the first Monday and rotate the times of 8:00 a.m. and 10:30 a.m. to synchronize every other meeting with the Public Safety Officers' Pension board. Secretary Mangum seconded the motion, which carried by unanimous 5-0 vote contingent upon the Public Safety Officers board agreeing to coordinate. It was announced that the next meeting would be at 10:30 a.m. on November 6. Chair Garlo noted the fund in comparison to the indexes was doing well and questioned what the market was like, to which Mr. Bogdahn responded this fund had a better chance of getting to their assumption than 99% of the funds-most had a 4%-5% range. It had been a tough time, and more and more were asking about hedge funds but his opinion was that pension funds could not invest in them-they did not tell you what they were doing so you did not know if they were violating other rules the pension must follow. Mr. Bogdahn reported hedge funds were blowing up and when they failed it disturbed the markets. Historically the stock market made 10%; last year it was up less than 5%, and for 2006 it would not come close to 10%. In his opinion until the regulation of hedge funds the market volatility would continue and it was not a rosy outlook for the market, but this fund was in a great position with Dana outperforming the market. V. UNFINISHED BUSINESS REPORT BY FINANCE DEPARTMENT REGARDING COST OF A STUDY REGARDING COST TO PAY INTEREST ON NON-VESTED WITHDRAWALS Patrice Monaco, Accounting Manager had provided an a-mail indicating Mr. Palmquist would do the requested study to provide calculations for the fund to pay 3% interest on non- vested withdrawals for $600-$800, and this would be a minimal increase in the Village contribution. Secretary Mangum made a motion for discussion purposes to have Gabriel Roeder Smith do a study to determine the cost impact to the fund of crediting 3% interest on the employee contribution prior to vesting. Board Member Koch seconded the motion. Discussion ensued. Secretary Mangum felt the calculation could be done very simply on 1 % and then increased to the percentage desired. It was clarified that a study was required. The motion was amended to clarify the calculation would be on 1 % through 5% calculated on the balance, not compounded. The amended motion was seconded by BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES August 7, 2006 PAGE 4 Board Member Koch. Motion carried 5-0. 1t was clarified that this would be effective on passage In response to Boazdmember Hazding's question as to whether the Village Council might change the recommended percentage, it was clarified that the Council would look at the amount of increase in the Village's contribution and either approve or deny this boazd's recommendation. Chair Garlo referred to page 4 of the minutes, which mentioned Gabriel Roeder Smith, but should have been the auditing firm, and Ms. Cazlisle clarified that needed to be changed in the minutes to Rachlin Cohen. RESPONSE TO CHAIR GARLO REGARDING WHETHER THE EMPLOYEE BENEFIT STATEMENT IS PROVIDED ANNUALLY OR EVERY TWO YEARS Gwen Carlisle, Pension Coordinator, advised she had spoken to Mr. Palmquist, who advised the benefit statements were done every other year, and he would be happy to provide them every yeaz but there would be an additional cost for this service. Chair Gazlo indicated he had thought it was in the plan the statements were to be provided every yeaz. Mr. Palmquist had not indicated what the cost would be. Chair Garlo expressed his opinion employees were entitled to a statement every year. Discussion ensued. It was clarified that although the Finance Department had the information, the benefit statements must be provided by the actuary. In discussing whether the Public Safety Officers' Pension provided annual statements, Attorney Jensen indicated she thought they had their actuary report one yeaz and then only the benefit statements the next yeaz. Chair Garlo commented he would research this matter, talk with Human Resources, and bring this back to the next meeting. VI. CONSENT AGENDA Chair Gazlo announced he had pulled item 6, Approval of New Applicants in the Pension Plan, because Kevin Sossi was no longer here. Attorney Jensen advised he was a member of the plan for the time he worked here. Ms. Carlisle commented Roger Ramdeen had also worked for a very short time, 12 days, and it was pointed out that he should have been listed as a new applicant as well as under ratification of withdrawals. Boardmember Hazding made a motion to approve the Consent Agenda with the addition as stated. Secretary Mangum seconded the motion, which cazied by unanimous 5-0 vote. Therefore, the following items were approved on the Consent Agenda Payments: Business Services Connection - 4/24/06 meeting and minutes $ 265.82 Hanson, Perry & Jensen, P.A. $ 932.20 Bogdahn Consulting, LLC $ 750.00 BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES August 7, 2006 PAGE 5 Dana Investment Advisors $ 1,175.30 Salem Trust Company fee advice for period 4/1/06 to 6/30/06 $ 543.01 Approval of new applicants for participation in Pension Plan: Russell White Kevin Sossi Lorraine S. Ferina Merlene Reid Christopher Dittneir Roger Ramdeen Date of hire 11/19/75 (5/31/06) Date of hire 5/22/06 Date of hire 5/22/06 Date of hire 6/5/06 Date of hire 6/12/06 Date of hire 6/1/06 Ratification of withdrawals made since the last meeting on 2 signature basis: Vicky Rolen 3/31/06 Gross: $1,315.52; Net Payout $1,052.42 Walter Schmanski 5/15/06 Gross: $ 903.91.; Net Payout $ 903.91 William Taylor 5/26/06 Gross: $1,537.39; Net Payout $1,537.39 Roger Ramdeen 6/12/06 Gross: $ 70.00; Net Payout $ 56.00 Budget Report VIII. FINANCIAL REPORTS Account Statements (April-June 2006) Pension Coordinator Gwen Carlisle advised the statements were in the book for Wachovia, Independent Community Bank, and Salem Trust. Consensus of the Board was to direct the Finance Department to close the Wachovia account. Accept Investment Manager Report from Dana Investment Advisors, Inc. Pension Coordinator Gwen Carlisle reported Mike Dana could not be present and was not available by telephone after the meeting date was changed. MOTION: Secretary Mangum made a motion to accept the Investment Manager's report. Boardmember Harding seconded the motion, which carried by unanimous 5-0 vote. BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES August 7, 2006 PAGE 6 IX. NEW BUSINESS CONSIDERATION OF SENDING A MEMBER TO FPPTA TRUSTEES SCHOOL - October 8-11, 2006 at St. Petersburg, Florida Pension Coordinator Gwen Carlisle announced the next school would be held October 8-11, 2006 at St. Petersburg. Boazdmember Harding expressed interest in attending. Chair Gazlo commented he would attend when it was held in Palm Beach Gardens in October of 2007. MOTION: Boardmember Koch made a motion to approve Catherine Harding to attend the FPTTA School. Secretary Mangum seconded the motion. Boardmember Paterno indicated she would be given a check for her hotel and she would be reimbursed for expenses. Ms. Harding indicated she would like to fly. Driving with mileage reimbursement of 48.5 cents versus flying was discussed. Secretary Mangum indicated he would attend the school if no one else was going and if he could have a week's notice. Boardmember Koch indicated she would attend if someone went with her. Chair Garlo stated the approval would be according to the provisions of the policy. Motion carried by unanimous 5-0 vote. X. ANY OTHER MATTERS Boardmember Paterno commented he had been appointed by the Village Council and they would have to approve a replacement, since he felt it was time for him to move on. Pension Boazd Coordinator Carlisle advised the position would be advertised and a list of interested parties would be presented to the Village Council. Boardmember Paterno indicated his willingness to attend the November meeting if a replacement had not been found. It was noted that Public Safety Officers Board had a list of applicants and some of those people might be interested in serving on this board. Attorney Jensen announced a change in the law that a notice must be placed on the Village's website and provided with emails to let the public know that by responding to emails that their email addresses would become public record. The notice should be bold and in a larger font than the rest of the email. Attorney Jensen had the language available that would be needed. Boazdmember Paterno asked about the email addresses of firemen and policemen, to which Attorney Jensen responded there was currently no exemption in the law for their email addresses to be protected. XI. COMMUNICATIONS FROM CITIZENS BOARD OF TRUSTEES TEQUESTA GENERAL EMPLOYEES' PENSION TRUST FUND REGULAR QUARTERLY MEETING MINUTES August 7, 2006 PAGE 7 No citizens were present. XII. ADJOURNMENT There being no further business, upon motion by Boardmember Koch, seconded by Secretary Mangum, the meeting was adjourned at 9:35 a.m. Respectfully submitted, ~' Betty Laur Recording Secretary