Loading...
HomeMy WebLinkAboutMinutes_Pension Public Safety_11/08/2005• SYNOPSIS OF NOVEMBER 8, 2005 PUBLIC SAFETY OFFICERS BOARD MEETING 1. Approved minutes of August 11, 2005 quarterly meeting. 2. Welcomed new member Ken Nielson, who was appointed by the Village Council on September 7. 3. Accepted resignation of police representative Jason Fleming. 4. Approved Ed Sabin as Chair and Ray Giblin as Secretary for the coming year, and dropped the position of Vice President. 5. Presentation was made by Andrew Holtgrieve, Rockwood Capital Advisors, the investment manager. 6. Presentation was made by Joe Bogdahn, monitoring consultant. 7. Voted to do the paperwork required to transfer all assets and close the Wachovia account; to get the form and have authorized signatories sign it. • 8. Agreed to change the date of the February meeting to February 13 as requested by Mr. Bogdahn, with the starting time for meetings to remain at 8 a.m. 9. Discussed the consultant's questionnaire. Mr. Bogdahn advised that his firm would reaffirm their answers and send out the questionnaire annually. 10. Consensus was that the committee formed to meet to clarify the duties of the Plan Administrator did not need to meet. Ms. Carlisle as Pension Coordinator was able to find the best person on staff to handle items, with everything funneled back through Ms. Carlisle. Betty Laur was preparing the agendas and going through the minutes to make sure unresolved items got put on the agendas until resolved so that things did not get forgotten as in the past. The process was currently working well. 11. Finance Director Forsythe reported her efforts to find software to help manage the bookkeeping process for the fund. Consensus of the board was that Ms. Forsythe continue looking for software and report back to the board. 12. The situation with Jupiter Inlet Colony's lack of response to passing an ordinance so that the Fire Department could get that municipality's premium tax was discussed. Pension Coordinator Carlisle was to advise all members of the board the date of the Jupiter Inlet Colony meeting. • 13. Voted to renew $2 million fiduciary liability coverage with Travelers Insurance Company for this fund's pro-rated portion of the $3,961 premium; or if the • General Employees pension board decided on no coverage, to pay the full premium. 14. Discussed a stand alone audit and the question of relief of fiduciary responsibility for the volunteer board members. This was tabled to the next meeting. Chair Sabin indicated he would contact the person who spoke at the trustee school and would report back to the board. Ms. Forsythe was asked to find out where the board stood and report back at the next meeting. Board member Genco in her motion also requested that an outline of costs be presented to the board as well as a proposal of audit dates and years for future audits, in a table-such as every odd or even year-along with the costs of doing a separate letter to the board. 15. Approved new applicants for participation in the pension plan: Christopher Allen Broedell, hired as Police Officer 9/6/05; Police Officer Michael C. Morrill, transferred from FRS; and Kristopher Wilhelm, hired as Fireman 9/19/05. 16. Approved withdrawal of contributions in amount of $8,878.02 by Jason Fleming, who left employment 10/18/05. 17. Received and filed the Budget Report, which was to be a standing report in the future. • 18. Approved payments of $300.90 to Business Services Connection, Inc., $360.60 to Hanson, Perry & Jensen, P.A., and $2,000 to Bogdahn Consulting, LLC. 19. Voted to send Board member Nielson to FPPTA conference on January 29, 2006 and to pay the registration fee, travel and per diem. 20. Secretary Giblin, who had previously been approved to attend the Division of Retirement school but had been unable to do so, was to check his schedule to see if he could attend the State school in December. 21. Pension Coordinator Carlisle announced a free 2-day conference from Florida League of Cities and indicated she planned to attend. • 22. Discussed disposition of 175 funds; this was to be discussed further when it was known whether funds would be received from Jupiter Inlet Colony. 23. Mr. Bogdahn's firm was to research this fund's past holdings of Concord EFS, Inc. so that if there had been at least 1,000 shares held then a claim could be filed in their securities litigation. END OF SYNOPSIS 2 • TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND QUARTERLY BOARD OF TRUSTEES MEETING NOVEMBER 8, 2005 I. CALL TO ORDER AND ROLL CALL The Tequesta Public Safety Officers Pension Trust Fund Board of Trustees held a regular quarterly meeting at the Emergency Operations Center (EOC) of the Public Safety Facility, 357 Tequesta Drive, Tequesta, Florida, on November 8, 2005. 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: Vice Chair Geraldine Genco, Interim Secretary Ed Sabin, Board member Ray Giblin, and Boazd member Ken Nielson. Also in attendance were Attorney Bonni Jensen, Joe Bogdahn, Bogdahn Consulting LLC (monitoring consultant); Andy Holtgrieve, Rockwood Capital Advisors (investment manager), Pension Coordinator Gwen Carlisle; Finance Director JoAnn Forsythe; and i Accounting Manager Patrice Monaco. II. APPROVAL OF AGENDA MOTION: Vice Chair Genco requested that items 10 and 12 be combined since they both had to do with a plan administrator. Interim Secretary Sabin made a motion to approve the agenda as amended. Board member Giblin seconded the motion, which was unanimously approved. III. APPROVAL OF MINUTES 1. MOTION: Board member Giblin made a motion to approve the minutes of the August 11, 2005 quarterly meeting as submitted. Interim Secretary Sabin seconded the motion, which carried by unanimous vote. IV. CHANGES I N BOARD MEMBERSHIP 2. Acting Chair Genco welcomed new member Ken Nielson, who had been appointed by Village Council on September 7, 2005, and announced that the board had received the resignation of Police Representative Jason Fleming. Pension Coordinator Gwen Cazlisle • indicated she would follow up with Chief Allison regarding a new police representative. • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINiITE.S November 8, 2005 PAGE 2 3. MOTION: Interim Secretary Sabin moved to accept the resignation of Police Representative Jason Fleming. Board member Giblin seconded; motion carried unanimously. V. APPOINT OFFICERS TO SERVE FOR ONE YEAR TERM 4. Interim Secretary Sabin nominated Geraldine Genco to serve as Chair from November 2005 to November 2006. Ms. Genco declined. Ms. Genco nominated Ed Sabin, who accepted. MOTION: Acting Chair Genco nominated Ed Sabin as Chair; Board member Giblin seconded; motion carried unanimously. 5. Attorney Jensen advised that under State Statute there was no position of Vice Chair~nly Chair and Secretary; this board had created the position of Vice Chair to run meetings in the absence of the Chair. Attorney Jensen advised that the plan documents did not show a Vice Chair as a signatory. Board member Genco expressed her opinion that the board should get rid of that position. 6. MOTION: Board member Genco nominated Ray Giblin as Secretary. Mr. Giblin accepted and the nomination was approved by unanimous vote. VI. PRESENTATIONS 7. Presentation by Investment Manager Andrew Holtgrieve, Rockwood Capital Advisors, provided a presentation. Mr. Holtgrieve advised that page 1 in his presentation booklet was a recap of what the account looked like at the end of the period, in this case 9/30/05. Mr. Holtgrieve reviewed the beginning market value, ending market value, percentage of portfolio, estimated annual income, and current yield and the changes in this quarter. The ending balance was reported as $2,857,300. Cash had been included for a very short time. Inception of the account had been 4/22/05. Mr. Holtgrieve explained that page 2 broke down fixed income and this quarter had been a roller coaster. The Federal Reserve raised interest rates two more times in the third quarter. The Federal Reserve was looking to slow the economy and another'/4% raise was expected in the next two meetings of the Fed before Mr. Greenspan retired because of inflation concerns. Inflation was the number one nemesis of an investor. This fund was positioned very defensively to withstand future increases in rates by the Fed. Page 3 contained a breakdown • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE g of characteristics and how the fund compared to a benchmark. This fund fell short of the index, which showed a defensive posture. Average quality had been very good and yield to maturity for this fund was 4.6% compared to the benchmark's 4.8%. When new money from contributions was received it was generally spread 60/40; in October 10-year treasuries had been purchased; smaller amounts were allocated to cash temporarily and larger amounts of cash were allocated as shown in the portfolio. Page 4, equities were reviewed. Equity markets had done better in the third quarter than fixed income. The materials sector was a negative performer at this time, so there had been no investments in that sector. This portfolio's return since inception was almost 11 %. Returns were actual and not annualized. Page S looked at the portfolio makeup of 39 stocks, nicely diversified. Sector weighting was reviewed. The top 10 holdings were reviewed. Chesapeake Energy made up the largest sector of the equity portfolio. Sales and purchases were listed on page 6 and had followed the model. Actual holdings for each portfolio were listed on pages 7 and 8. 27 of 39 positions in this portfolio were profitable at this point in time. Pages 9-14 contained economic data supporting their stance, and it was believed the Fed would maintain its stance on moderate rate hikes to slow the economy to control inflation. Page 13 covered comparison between bond prices and value stocks. At this point it was felt stocks were a better buy than treasuries. Board member Genco requested the presentation booklets ten days in advance in the future. Mr. Holtgrieve indicated there was one organizational issue in that Frank Aten would be leaving the firm to pursue other interests, but assured the board that would not affect what their firm did. 8. Presentation by Monitoring Consultant Joe Bogdahn reviewed his presentation booklet, noting on page 2 the ending value and that as of 9/30 there was still a small balance in Wachovia. Board member Genco asked why Mr. Bogdahn's ending balance was different that that provided by Mr. Holtgrieve; Mr. Bogdahn indicated he would do a reconciliation and report back to Board member Genco. Board member Genco commented the numbers should be the same if they were using the same time period and adding Wachovia money did not account for the difference, and asked if Mr. Bogdahn was adding cash, to which he responded yes, that cash was included in total performance. Board member Genco commented the difference was in the disbursements. Mr. Bogdahn went on to review his report. Returns were time weighted; Rockwood's were net. Mr. Bogdahn reported the big differences were shown on page 8 in the equity piece-for the past one year ending 9/30 the total fund had been up 8.5%. Mr. Bogdahn recommended moving the money from Wachovia as soon as possible. Ms. Monaco indicated forms would be needed to close the account. Board member Genco commented the board had authorized transfer; they just needed to be told to sweep the account. Discussion ensued. Ms. Carlisle indicated she believed Wachovia had never been told to close the account. BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE 4 ------------------------------------------------------------------------------ MOTION: Board member Genco made a motion to do the paperwork required to transfer all assets and close the Wachovia account; to get the form and have authorized signatories sign it. Secretary Giblin seconded the motion, which carried by unanimous vote. Mr. Bogdahn advised that cash flows should not affect return other than investment of the monies when they came in. Mr. Bogdahn indicated he was consistent in his reporting. Board member Genco noted they had to show fees net in the performance; they were included and almost invisible to the board, rather than having a separate chart. Mr. Bogdahn advised that the equity and fixed income piece was coming out. The next meeting date was discussed. Mr. Bogdahn asked if the next meeting could be moved from Tuesday, February 14, to Monday, February 13. Attorney Jensen noted she had a conflict with Monday the 13th; however, Board member Genco asked if there were any legal issues pending, to which the response was there were not. Board member Genco indicated with no legal issues pending then she would say to go ahead and have the meeting when requested. Chair Sabin stated there was a request to change the next meeting from February 14 to February 13, which would be at 8 a.m. Finance Director Forsythe asked if the meeting could start at 8:30 instead of 8, so she would not have to pay overtime. Chair Sabin commented the meetings were held early so board members could get on with their day and he preferred to stay at 8; Board member Genco suggested starting at 8 and Ms. Forsythe could let her employees go early. Ms. Monaco questioned foreign tax withholding. Mr. Bogdahn responded that was a tax than came through from ADR's and was a tax that was withheld. It was explained that the fund was purchasing foreign equities and this was just an expense associated with the investment, and 99 foreign governments had a right to tax such investments. VII. UNFINISHED BUSINESS 9. Consultant's Questionnaire Pension Coordinator Carlisle asked if a questionnaire should be obtained from each consultant. Mr. Bogdahn explained that it was targeted to monitors. Attorney Jensen advised the questions came out of an investigation conducted by the SEC on business investment consultants. The one that Dana had was different; this one would only be required from Mr. Bogdahn. Mr. Bogdahn noted that his firm would reaffirm their answers annually and send out the questionnaire again. (Items 10 and 12 were combined since both had to do with the Plan Administrator) • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November S, 2005 PAGE 5 --------------------------------------------------------------------------------- 10. Discussion of Plan Administrator -Committee to meet following appointment of a New Chair of the Board Pension Coordinator Carlisle commented that on item 10, the original discussion had been about the Plan Administrator and his or her function. The board did not have a plan administrator-the board administered the plan, and had a Pension Coordinator, Finance Director, and Chair. The committee was looking to get together to determine the function of each of those positions. Ms. Carlisle advised she was the Pension Coordinator who coordinated the agenda, got documents together, and presented the information to the board; the Finance Director was overseeing the fmancial aspects of this board in order to meet requirements; so it was just a matter of getting together to decide what those people were to do, and it was not as big a question as before when the board had been really trying to have a Plan Administrator. The committee could still meet and write a list of the duties if that was needed, but she thought they had each fallen into their roles and knew what to do at this point. Finance Director Forsythe commented she thought there had been a need to fmd one person the Trustees could go to when they needed staff to do work on something. She . thought that was the intent for the position Ms. Carlisle now filled, and that Ms. Carlisle could find the best person on staff to handle things, with everything funneled back through Ms. Carlisle, and she thought that was why this had turned out so well, because Ms. Carlisle was able to do that. Ms. Carlisle commented this had been mentioned because items were brought up and a year later someone asked what had happened; actually Betty Laur was the one who put the agendas together, she went through the minutes to make sure that the board had not dropped anything, and as far as she knew no issues had been totally dropped since this process started. Ms. Carlisle advised that the committee could meet and make a list, if that was the desire of the board. Chair Sabin commented when he joined the board two or three years ago, Betty had been there plus only one representative from the Village, and now there were several and they seemed well coordinated, and the board relied on them to have everything. Ms. Carlisle reported they spent a lot of time on the pension board. Board member Genco thanked staff for the agenda book. Both Chair Sabin and Board member Genco indicated they thought the staff was doing a super job. Chair Sabin indicated everyone seemed comfortable and commented as long as everyone was comfortable with this arrangement, it could continue, but down the road if issues came up, then some time could be spent on this. 12. Report by Finance Department regarding results of contacting comparable municipalities to find out the software used to help manage the bookkeeping process for the fund Finance Director Forsythe advised she had contacted other smaller municipalities and they did not have software--they either hired an administrator or were with Florida League of Cities, or were with FRS. She talked with a larger, medium-sized municipality, and they had • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November S, 2005 PAGE 6 had an in-house administrator, but were now outsourcing. She had researched on the intemet to see if there was software to look at, and found two, but did not have prices yet, but could continue. Chair Sabin favored continuing if it would help the Finance Department's work load. Board member Genco commented it would be a big help-all enrolling and contributions could be computerized and when there was an audit there would be an audit trail. Board member Genco commented that if the software had a dual purpose where the Village could use it for Human Resources as well, the Village might pay for either a portion of it or all of it, and she felt it would be a big advantage to streamline the information so that a clerk could do input rather than having the fmancial officers do routine work. Consensus of the board was that Finance Director Forsythe would to continue to look for software and report to the board anything promising. 11. Discussion of 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 Attorney Bonni Jensen advised the board had discussed this, and there had been communication to her, which she had apparently misunderstood, and she had sent a letter to Jupiter Inlet Colony. The new law was effective October 1, 2005 and the first distribution under it would be the end of March, 2006. At this point a letter had been sent and a draft, document prepared for Jupiter Inlet Colony to implement. Chair Sabin confirmed with Attorney Jensen that Jupiter Inlet Colony was required to take action. Board member Genco commented she had hoped one of the board members would attend that meeting and explain to them with sensitivity so they would understand there had been no lawsuit filed or threatened where they had said the Fire Department had a response time that may be affected by a postal zip code problem. This was more than a pension problem and needed to be handled really tactfully. Board member Genco commented she thought a firefighter would be the right person, and Chief Weinand was very familiar with this. Board member Genco cautioned that the persons attending should be prepared to answer questions. Pension Coordinator Carlisle reported she had called Jupiter Inlet Colony the previous day to talk to Joann Manganiello but had had no reply, so she didn't know if they were looking at this as a legal problem. Board member Genco advised if she was available she would be glad to go to the meeting with Secretary Giblin. Chair Sabin commented if this dragged on, the Village would be providing services but not getting the money. Attorney Jensen advised the board had no authority, but it was their obligation to make sure they had done everything they could to get the assets into the pension plan. Secretary Giblin commented the money would be going to the State instead of the pension plan. Chair Sabin suggested possibly the board i attending a meeting. Pension Coordinator Carlisle agreed, stating this could be presented as public comment in front of the Jupiter Inlet Colony Council-it would not have to be on their agenda. Board member Genco commented that Jupiter Inlet Colony had a very high total tax . BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE ~ -------------------------------------------------------------------------------- assessment, and this should be a lot of money for the pension. Attorney Jensen commented the firefighters benefited from property taxes, and in many municipalities there had been tremendous benefit. Board member Nielson asked if there would be any benefit for Jupiter Inlet Colony. Secretary Giblin responded they were already collecting the tax, but it was going to the State. Chair Sabin noted it sounded political rather than economic, and asked Ms. Carlisle to advise all of the members of the board the date of the Jupiter Inlet Colony meeting. Board member Genco suggested the firefighters show up in uniform. Secretary Giblin explained there was already an Interlocal agreement. Attorney Jensen advised that the interlocal agreement would not suffice for this matter--Jupiter Inlet Colony had to pass an ordinance this was a new provision passed this year. 13. Renewal of Fiduciary Liability Coverage Pension Coordinator Carlisle advised that Dan Gallagher, Risk Manager, was recommending Travelers with $2 million coverage and a premium of $3,961. The General Employees Board • would pay $743 and Public Safety Officers Board would pay $3,218-approvals were needed from both boards. MOTION: Board member Genco made a motion to approve payment of this board's pro-rated portion of the premium of $3,961 to Travelers Insurance for fiduciary Lability coverage in the amount of $2 million, and if the General Employees Board decided on no coverage then the Public Safety Officers board would pay 100% of the premium. Secretary Giblin seconded the motion, which carried by unanimous vote. 14. Discussion of whether a full audit should be done in future years Pension Coordinator Carlisle asked if the board wanted to do a schedule for audits so that it would be known when an audit would be done and there would be no question. Financial Director Forsythe advised that actually the board got an audit every year. Last year they had requested a stand alone audit. Ms. Forsythe advised she believed there had been a misunderstanding, and she had spoken to the State as to whether it was necessary for this board to have a stand alone audit and they had advised no, that most funds were included in the CAFR-if they were just issuing fmancial statements that were not a part of the CAFR they would not accept those. Chair Sabin commented he was the one who had brought this up after attending the trustee school and he had not misunderstood he knew it was not required. An attorney stood up in one of the classes and advised if the board accepted the CAFR that had other financial information and was a report for the Village, they were not • getting an audit for protection for the board of trustees. Board member Genco commented she thought the board was given a separate one even though it was part of the CAFR. Chair • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE 8 Sabin advised no, if you read the opinion it was given as supplementary financial information and the opinion was directed to the Village Council as opposed to the trustees. Chair Sabin commented the board had sent him to trustee school to get knowledge and he had that knowledge. Discussion ensued. Ms. Forsythe advised the audit was written for anybody who was a third party who relied on that audited financial statement and the reason it was made to the Village Council was the auditors were not supposed to give an audit report back to the people who worked with the information because they could change the numbers. Chair Sabin commented the board would have a more difficult time indicating they were a party to that opinion. Board member Genco suggested asking the auditors whether in doing the audit they could write each pension board a separate opinion letter. Ms. Forsythe stated there would be a charge. Chair Sabin agreed there would be a charge because the auditors would be doing additional work. Ms. Forsythe indicated there would not be extra work. Chair Sabin asked then why would there be a charge of $4,000 to $6,000. Ms. Forsythe commented he did not understand-Chair Sabin advised he was a CFO of a public company • and he did understand. Ms. Forsythe commented auditors were independent and were not allowed to do any of the work-they were like doctors who went in to see if transactions could be supported, and identify certain risks and put more time into those areas. When they wrote the audit report they were saying they had looked at this and did not find anything that were material mistakes-they did not find anything that if it were changed it would cause a different understanding of the financial statements. Chair Sabin stated as a trustee and a volunteer who did not wish to have personal liability responsibility by being a board trustee member, he was looking for the level of assurance and fiduciary responsibility that he did not have that exposure. Ms. Forsythe commented he did not; Chair Sabin responded he had been told otherwise at the trustee school. Board member Genco commented she thought Finance Director Forsythe was saying the auditors were doing a full audit and that is the type of audit the board would get if they were addressing the letter to the board, and the difference was they were addressing it to the Village Council, and asked to fmd out what the auditors would charge to write a separate letter addressed to the trustees, for which there might be a $100 or $200 fee . Ms. Forsythe commented it would probably be about $4,000 because it would be a stand alone opinion. Board member Genco commented they were writing the same exact letter to the Village Council and they should be able to write a letter to the pension boards that said the same thing, and the work was exactly the same so there should not be a big difference. Discussion ensued as to what the auditors looked at. Attorney Jensen advised she had spoken with another auditor who had advised her that the difference was the level of analysis; Ms. Forsythe stated there should not be a difference. Chair Sabin stated he was asking to focus on one issue that came out of the trustee school and he knew it was not a • State requirement-but he wanted to know if there was a fiduciary responsibility of this board from a fmancial sense without an audit report directed to this board. If the answer was no, that it was adequate to relieve the fiduciary responsibility, then he was okay with it • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE 9 subject to what the boazd wanted to do-he was just one voice on the boazd--the but he was reacting to what he had been told at the trustee school. Boazd member Genco stated she agreed with Chair Sabin. Ms. Forsythe asked that the board look at this in terms of the SEC-that people bought securities based on audit reports, and if the information was wrong there was recourse back to the people who did that. Chair Sabin commented he had to trust the people who taught at the trustee school, and he was not saying others were incorrect, but he had to rely on their information as to how to run a board. Boazd member Genco agreed, stating the boazd should get a letter along with the full report for the Village Council, and asked Ms. Forsythe to find out the cost to do that it was her understanding the data the auditors were looking at was the same. Boazd member Genco asked that Rachlin Cohen come to the board and give a presentation and explain it to the boazd. Chair Sabin stated the boazd wanted an audit opinion addressed to this board, not as supplemental information in the CAFR. Chair Sabin stated he would contact the person who spoke at the trustee school and would report back to the board. Attorney Jensen stated she felt an independent report would give the trustees more information than the CAFR. Board member Genco asked that • Ms. Forsythe find out where the boazd stood and come back to the next meeting. Chair Sabin stated as a volunteer he was trying to help the Village, but he did not want to take personal liability. Ms. Forsythe stated she could ask the auditors if they felt the CAFR letter also protected board members. Pension Coordinator Carlisle asked if they were looking at the investments when they did the audit for the Village. Ms. Forsythe responded Village staff actually did the report-the payment was not for a report, it was for an opinion. Chair Sabin advised he did not caze what the auditors said-he would get the information from the person who had been at the trustee school. MOTION: Board member Genco made a motion to table this matter to the next meeting when all the official information had been obtained and that an outline of costs be presented to the board as well as a proposal of audit dates and years for future audits, in a table- such as every odd or even year or whatever the board wanted to do regarding the audits-along with the costs of doing a separate letter to the board. Secretary Giblin seconded the motion. During discussion of the motion Chair Sabin asked for clarification that if this were delayed to the February meeting, and then the board decided the auditors needed to do a separate report, when would that occur. Ms. Forsythe responded that the auditors were supposed to come in October 24 but that had been delayed. Board member Nielson commented 6e would like to hear what financial comfort the board would get from an audit to this board instead of just to the . Village Council. Attorney Jensen advised that the analysis in the CAFR was in a large document and many board members would not take the time to go through that, and stated her question was how much attention was paid to the pension fund as a stand • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE io alone item when it was included in the CAFR. Board member Nielson asked if the auditors signed an opinion letter--if they wrote a separate letter--would there be any additional comfort for this board. Attorney Jensen advised she believed it was within the board's fiduciary responsibility to have that type of an in-depth analysis, and additionally she had asked some auditors the difference and they had said the level of material that they would bring forward to the board of trustees would be different than if it were included in the CAFR as supplemental information. Chair Sabin commented they would have to do a scope of work that was a different level and the opinion to the board would be direct relationship, and it was better to have a direct relationship as opposed to being included in the CAFR for the Village, which would be an indirect relationship of fiduciary responsibility. Board member Genco advised that up until now the auditors had done more analysis than typical and had advised the Village of any irregularities, which was why she suggested to table this for more information. Chair Sabin commented he was not questioning their work, he was not questioning anything beyond the opinion page-who it was addressed to-that was the only thing. Board member Genco stated she agreed with him and there would be appropriate answers at the next board meeting. Chair Sabin commented the board was also going to talk about sending someone to trustee school and they could ask that question there because that was where the information was coming from as to how to run the board. Motion carried unanimously to table this item VIII. STANDING REPORTS 15. Approval of new applicants for participation in Pension Plan Christopher Allen Broedell Date of Hire: 9/6/05 Police Officer Michael C. Morrill Transfer from FRS Police Officer Kristopher Wilhelm Date of Hire: 9/19/05 Fireman 16. Approval of Beneficiary Changes None 17. Request for withdrawal of contributions (employees terminating employment with Village of Tequesta) • Name Date of Separation Total Amount • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE 11 Jason Fleming, Police Officer 10/18/05 $8,878.02 18. Ratification of withdrawals made since the last meeting on 2 signature basis: None MOTION: Board member Genco made a motion to approve agenda items 15, 16, 17, & 18 including the amount for Officer Fleming of $8,878.02. Secretary Giblin seconded the motion, which carried by unanimous vote. IX. FINANCIAL REPORTS 19. Statement of Accounts (July-September 2005) Pension Coordinator Gwen Carlisle advised that the statements had been included in the packet books and that Salem Trust statements were very complete, and the Wachovia account had already been discussed. Board member Genco stated the statements of accounts would be received and filed. 20. Budget Report Accounting Manager Monaco presented the budget report. Pension Coordinator Carlisle explained that if the board decided they wanted an audit, that would need to be added. Ms. Monaco advised that all numbers between police and fire were pro-rated based on the asset value, and for each meeting she should be able to provide a revenue and expenditure report.. Board member Genco stated the budget report would be received and filed, and that this would be a standing report at every meeting. X. PAYMENTS TO BE REVIEWED AND APPROVED 21. Business Services Connection - 8/11/OS meeting and minutes $ 300.90 22. Hanson, Perry & Jensen, P.A. $ 360.60 • 23. Bogdahn Consulting, LLC $ 2,000.00 • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE 12 --------------------------------------------------------------------------------- MOTION: Board member Genco made a Business Services Connection; $2,000 to Bogdahn Consulting. carried by unanimous vote. motion to approve payment of item 21 - $300.90 to item 22 - $366.60 to Hanson Perry & Jensen; item 23 - Board member Nielson seconded the motion, which XI. NEW BUSINESS 24. Consideration of sending a member of the board to Trustee School • FPPTA trustee school Jan 29-Feb 1, 2006 at Sawgrass Marriott in Ponte Vedra Beach and State Division of Retirement Trustee School December 7-9, 2005 Board member Genco commented she felt the board could afford to send two members. Mr. Giblin • reported he had been delayed in attending trustee school and had not gone in October because of a conflict in his schedule. Attorney Jensen advised that the free State conference was in December, and was to be held in St. Pete. Board member Nielson indicated the January 29 FPPTA trustee school in Ponta Verda would be fine for him. Secretary Giblin stated he would like to attend the State Division school December 7 through 9, but would have to look at his schedule because the class he needed to take kept being postponed, but he would go if there was no conflict. MOTION• Board member Genco made a motion to send Board member Nielson to the FPPTA conference in January and pay the registration fee and travel and per diem. Secretary Giblin seconded the motion, which carried by unanimous vote. Chair Sabin noted that Secretary Giblin would check his schedule as to whether he could attend the State school in December. 25. Invitation to attend Florida Municipal Pension Trust Fund (FMPTF) and Florida Municipal Investment Trust (FMIvT) Member Workshops on November 30 and December 1, 2005 Pension Coordinator Gwen Carlisle explained that an invitation to attend a free 2-day conference November 30 and December 1 had been received from Florida League of Cities, which she planned to attend, and it was available for any board members to attend. Attorney Jensen advised it was directed towards their services; that they provided a bundled service. Ms. Carlisle advised she would attend and report back as pension coordinator. Board member Genco advised if Ms. Carlisle wanted • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE ~3 to attend one of the other schools she would support it. Ms. Carlisle responded she would like to do that eventually, but right now had to attend two a conferences year for her position as Village Clerk. Board member Nielson was excused and left the meeting at 9:56 a.m., stating he had another commitment. 26. Discussion of disposition of 175 funds Secretary Ray Giblin noted this had pretty well been covered, and the firefighters needed to get the funds before worrying about distribution of the benefits. Board member Genco asked about coverage of additional medical benefits. Secretary Giblin responded that the firefighters had been doing that from their individual contributions. Additional benefits were only good 10 years so funds for those benefits needed to be placed in separate accounts. The firefighters did not want to get into a situation where they had benefits now that had to be cut later, and asked about the logistics of that. Attorney Jensen advised the money was earmarked and the next actuarial evaluation should have a • separate page analyzing those numbers. Attorney Jensen explained there were amounts set aside each year for police officers and for firefighters. Secretary Giblin asked if things went through with Jupiter Inlet Colony would those funds be separately earmarked as 175 or commingled. Attorney Jensen advised it would come in as 175 and then could be allocated. Discussion ensued. Board member Genco commented when it was known if the fund was getting the money from Jupiter Inlet Colony then a decision could be made about what to do with it. XII. ANY OTHER MATTERS 27. Information Items: a) News Scan and Research Memo developed by Gabriel, Roeder, Smith & Company b) Proof of Claim and Release received from Concord EFS, Inc. Securities Litigation Pension Coordinator Carlisle commented that the board needed to decide if they wanted to pursue this to see if this fund had ever invested in these securities. Attorney Jensen advised that the fund was a record holder of this stock in order to get this form, and she recommended making a claim in this class action settlement. She had read where $1.6 billion was being left on the table because claims were not being made in these types of situations, and felt the board might as well file a claim. Mr. Bogdahn commented that his company could review very simply the custodial statements back to October 2000. Ms. Carlisle asked who would fill out the form. Attorney Jensen indicated she could do it; Board member Genco recommended that one of the portfolio • managers do it. Attorney Jensen advised that Salem Trust performed this service for a charge of $50. Mr. Bogdahn stated that his firm could give them past history. Mr. Bogdahn commented • BOARD OF TRUSTEES TEQUESTA PUBLIC SAFETY OFFICERS PENSION TRUST FUND MEETING MINUTES November 8, 2005 PAGE i4 he was not going to be back in his office for a couple of days but would call Donna to research this. Ms. Carlisle gave him the full packet to provide to Donna. Board member Genco commented the claim might result in only getting $8, and recommended first finding out if the fund had held a significant number of shares. Board member Genco recommended if this fund had not held at least 1,000 shares not to bother with it and to take that as a philosophical approach in these situations. Attorney Jensen advised that on an ongoing basis Salem Trust would perform that service with no charge; they charged $50 for holdings when they were not the custodian. Board member Genco commented if it was going to be worthwhile to go ahead and file and pay the fee, otherwise forget it. XIIL COMMUNICATIONS FROM CITIZENS There were no communications from citizens. • XIV. ADJOURNMENT There being no further business to come before the board, the meeting was adjourned at 10:05 a.m. Respectfully submitted, ~~Q~~ Betty Laur Recording Secretary •