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HomeMy WebLinkAboutDocumentation_Regular_Tab 7A_11/12/1998~f ~ F a ~~ 9 f ~~ ~ c { N ~ VILLAGE OF TEQUESTA Post Office Box 3273 357 Tequesta Drive Tequesta, Florida 33469-0273 (561) 575-6200 Fax: (561) 575-6203 II~A TEQUESTA EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES MEETING APRIL 29, 1998 I. CALL TO ORDER AND ROLL CALL The Tequesta Employees' Pension Trust Fund Board of Trustees held a regularly scheduled meeting at the Village Hall, 357 Tequesta Drive, Tequesta, Florida, on Wednesday, April 29, 1998. The meeting was called to order at 9:03 A.M. by Secretary Thomas G. Bradford, who conducted the meeting in the absence of Chairman Ron T. Mackail. A roll call was taken by Betty Laur, the Recording Secretary. Boardmembers in attendance at the meeting were: James B. Trube, William Sharpless, Allan Oslund, and Thomas G. Bradford. Also in attendance were Finance Director Bill Kascavelis, Attorney John McCracken sitting in for Village Attorney John C. Randolph, and Loomis, Sayles & Company representative Peter V. Van Beuren. Chairman Ron T. Mackail and Boardmember Carl C. Hansen were absent from the meeting. A resignation had been received from Boardmember Shawn Thurmond. II. APPROVAL OF AGENDA Finance Director Kascavelis requested addition under Any Other Matters of a corporate resolution to provide authorization by a member of the Board to withdraw funds and authorize rollovers. Boardmember Trube requested addition under Any Other Matters of the firefighter's desire for information regarding a defined contribution plan. Boardmember Sharpless made a motioa to approve the ageada as Recycled Paper BOARD OF TRIISTEES TEQIIESTA E~LOYEES' PENSION TRIIST FUND MEETING MINOTES April 29, 1998 PAGE 2 amended. Boardmember Trube seconded the motion. The vote oa the motioa was: Thomas Bradford - for Allan Osluad - for Nilliam Sharpless - for James Trube - for The motioa was therefore passed aad adopted aad the Agenda was approved as amended. III. APPROVAL OF MINOTES A) Tequesta 8mployees• Pension Trust Fuad Board of Trustees meeting minutes for January 29, 1998 Boardmember Osluad made a motioa to approve the minutes as submitted. Boardmember Trube seconded the motioa. The vote oa the motioa was: Thomas Brad€ord - for Allan Osluad - for 1Pilliam Sharpless - for James Trube - for The motion was therefore passed aad adopted and the minutes were approved as submitted. IV. STANDING REPORTS A) Approval of New Applicants for Participation in Plaa (January-March 1998): 1) Noae B) Approval of Beneficiary Changes (January-March 1998) 1) None BOARD OF TRUST88S T8QU7~STA Sb~LOY88S' 888TING MINOTBS April 29, 1998 PAGE 3 PENSION TRIIST FUND C) Request for ~Pithdrawal of Coatributioas (employees termiaatiag employment with Village (January-March, 1998) 1) None No action was seeded oa these three items since there had bees ao activity. V. FINANCIAL REPORTS A. Fiscal Year 1997 Aaaual Report (Bill Kascavelis, Fiaaace Director) Finance Director Kascavelis reported a copy of the Annual Report had been filed with the Municipal Police Officers and Fire Fighters Retirement Trust Funds office. Finance Director Kascavelis explained that three funds, police, fire rescue, and general employees, comprised the entire plan. Assets of the Police fund as of 9/30/97 totaled $21,973.01. Assets of the Fire Rescue fund as of 9/30/97 totaled $606,073.49. Assets of the General Employees' fund as of 9/30/97 totaled $14,659.49. Total assets of all three funds as of 9/30/97 were $642.705.99. Finance Director Kascavelis reported that the rest of the Annual Report was comprised of supporting data, and the assets had been reconciled by the Village auditors. The report had been submitted the first part of April. Boardmember Osluad made a motioa to approve the 1997 Annual Report as submitted. Boardmember Sharpless secoaded the motion. The vote oa the motion was: Thomas Bradford - for Allay Osluad - for Nilliam Sharpless - for James Trube - for The motioa was therefore passed sad adopted. BOARD OF TRIISTESS TSQIISSTA S~LOYSSS' PENSION TRIIST FUND b~STING MIN'OTSS April 29, 1998 PAGE 4 B) Loomis, Sayles & Company, L.P., Iavestment Manager's Financial Statement for Quarter Sndiag March 31, 1998 (Peter v. Van Beuren, V.P. & Sr. Partner), Prudential Securities, Inc., Custodial Broker,. Account Statements (January-March 1998), Reconciliation and Fund Statements (Bill Rascavelis, Director of Finance) Finance Director Kascavelis commented that three packets, one each for January, February, and March, had been provided to each Soardmember and that the next to last page in each packet showed the allocation for the first quarter of revenues and expenses and reconciliation to the Prudential Securities brokerage account. The total investments shown per Loomis report v~rere $742,431, or a difference of $3,574.02 in what was shown by the Village. This difference was comprised of over transmittal by Florida League of Cities of $802.10 and an amount of $2,805.24 believed to have been transmitted in error by the Village as an overpayment of employee contributions from the Village General Fund to Prudential Securities, for which research was continuing. Mr. Van Beuren commented that the total investments per Loomis Report shown were at cost, and the market value on that date was approximately $808,000. Mr. Van Beuren commented this was the first full quarter that his firm and the village had been together with full funding, and that his firm would attempt to provide consistent reports for each quarter. Mr. Van Beuren presented an Investment Review booklet for the Village of Tequesta Employees' Pension Trust Fund dated April 29, 1998 prepared by Loomis, Sayles & Company. Section One contained information regarding the firm and highlighting personnel which made up the investment team and the Florida office strategies. Section two restated investment guidelines. An interesting development during this quarter had been that the stock market went up temporarily, making it difficult for stocks not to BOARD OF TRIISTI38S TEQIIESTA ~~LOYEES' PENSION TRIIST FUND MEETING MINUTES April 29, 1998 PAGE 5 appreciate over the 50~ level, and Loomis had had to make a sale during March to equalize that, which was a difficulty of being fully invested. Mr. van Beuren reported there had been a change during the quarter on short-term interest rates; and that for the three months ending 3/98 Loomis had kept up with their benchmark index. Mr. Van Beuren explained that with the volatility of this market, cash took away from performance of other asset classes, but in some quarters we would be glad to have cash. In section three of the report, Mr. Loomis discussed equity characteristics of types of companies vs. the S&P 500 Index. Mr. Van Beuren explained that in asset allocation, cash position was mostly in the bond side at this stage because we were close to the ceiling in. stocks, and we were in the process of acquiring more bonds. Mr. Van Beuren explained that Loomis was trying to avoid economic sectors they felt would not perform well, and had placed their emphasis on technology, health care, and consumer products. Looping forward, corporate earnings had been slowing the percentage of growth but was expected to catch up with market valuations. Mr. Van Beuren discussed the past scare in the Far East and his opinion that issue should still be seriously considered because he was not sure sufficient information was coming from the Far East, and this would affect many companies. The market was expected to go down by some degree. Loomis would continue searching for companies. Presently there were 23 companies and not more than 30 would be included in the portfolio. Mr. Van Beuren commented that it would be good to see a sideways market throughout the summer. Mr. Van Beuren reported that stocks purchased during the quarter had been Cisco Systems, Coca Cola, and Kohls Corporation, and stocks sold were Conagra, Inc., and Diebold, Inc. Mr. Oslund commented that this portfolio looked good, and he would be interested in seeing information each quarter on how individual companies were functioning. BOARD OF TRIIST88S T8QU8STA B~PI~OY~i8S' PENSION TRIIST FUND ~BTINC~ ffiINUTBS April 29, 1998 PAGE 6 Boardmember Sharpless questioned the status of the 60/40 asset allocation. Discussion ensued regarding this issue. Finance Director Kascavelis reported Steve Palmquist had advised the Village plans were Local law plans which were only restricted as to foreign investments. Attorney McCracken advised the mix was up to the Board and they could change from 50/50 to 60/40 if they desired. Boardmember Sharpless recommended more flexibility than allowed by the 50/50 mix. Secretary Bradford inquired where the mix was established, to which Finance Director Kascavelis responded that at the last meeting Mr. Van Beuren had presented guidelines of 50/50 which had been approved. There had been a question as to whether the original plan could be amended, and the Attorney Biagotti had volunteered to look into this, but no word had been received. Attorney McCracken advised that so far as State law was concerned, the original plan could be amended. Secretary Bradford responded the plan had been adopted by Ordinance in accordance with State law requirements at that time. Attorney McCracken stated that Boardmember Sharpless' question was whether the issue of investment policy rested with the Village Council or this Board, and he would need to look at the Ordinance to make a determination. Secretary Bradford commented it was his understanding that the plan was adopted by the Village Council and if a change was desired that the Board needed to make a recommendation to the Village Council that portion of the plan be amended to allow a 60/40 mix. Boardmember Sharpless urged that be done as soon as possible. Secretary Bradford directed Finance Director Kascavelis to work with Attorney McCracken on this matter. Boardmember Sharpless clarified that the intent was not to go to 60~ immediately, but to have that flexibility. Soardmembe~ Sharpless made a motioa to request the village Cout1cil to act to amead the Employees Peasioa Plan to change the investment mix fzom 50/50 to 60/40. BOARD OF TRIISTEBS TEQII$STA ~II~LOYELS' PENSION TRIIST FDND FETING ~dINOTES April 29, 1998 PAGE 7 Bosrdo~ember Osluad seconded the motioa. The vote oa the motion was: Thomas Bradford - for Allan Osluad - for William Sharpless - for Jams Trube - for The motioa was therefore passed sad adopted. Boardmember Trvbe made a motioa to accept the report made by Db:'. van Seurea, contingent on verification of transfer of $2,085.24. Boardmember Osluad seconded the motioa. The vote oa the motioa was: Thomas Bradford - for Allay Osluad - for gPilliam Sharplesa - for James Trube - for The motioa was therefore passed and adopted. VI. PAYEENTS TO SE RSVI89QSD AN`D APPROVED A) 2/1/98 Loomis, Sayler & Company, L.P. $1,677.00 (Iaveatment Eaaagemeat Fees) Boardmember Sharpless made a motioa to approve payment of investment management fees is the amount of $1,677.00 oa February 18, 1998. Boardmember Trube seconded the motion. The vote oa the motioa was: Thomas Bradford - for Allan Osluad - for William Sharpless - for James Trube - for BOARD OF TROSTEES TEQOSSTA B~PLOYEES' PENSION TROST FOND M88TING MINOTSS April 29, 1998 PAGE 8 The motioa was therefore passed aad adopted. VII. RESIGNATION LETTER RECEIVED FROM MBD~ER SHAWN M. TSIIRMAN Secretary Bradford reported receipt of a letter from Shawn M. Thurmond, Firefighter representative to the Board, stating his resignation from the Board effective March 1, 1998. Boardmember Trube reported the Firefighters had held an election for a new representative, that ballots were being counted, and that he would forward the outcome to Secretary Bradford. VIII. ANY OTHER MATTERS Boardmember Trube reported an interest had been expressed by the Firefighters in a defined contribution plan, and requested direction from the Board as to whether a workshop or a formal vote was needed. Secretary Bradford advised that if they wished to proceed in that direction, at some point a designee of the group should write a letter to him so that he could present it to the Village Council. Secretary Bradford commented that the General Employees had also expressed interest in a defined contribution plan. Boardmember Sharpless suggested that Mr. Palmguist be contacted to provide pros and cons for consideration by the firefighters. Secretary Bradford suggested Mr. Palmquist might be available to hold a seminar. Boardmember Sharpless suggested anyone who was knowledgeable could talk to the firefighters. Boardmember Trube commented that at this point the firefighters were cautiously interested and needed more information. Secretary Bradford indicated that someone should be found to do a presentation and after that if the firefighters still wanted to pursue it, he would then take the matter before the Village Council. BOARD OF TRIISTBES TEQIIESTA E~LOYEES' FETING DSINUTSS April 29, 1998 PAGE 9 PENSION TRIIST FOND Finance Director Kascavelis advised of the need for a corporate resolution defining who had authority to make withdrawals, approve rollovers, etc. for the Prudential Securities brokerage account. After discussion, the Board agreed to authorize the Chairman and Secretary of the Board to handle these matters. Boardmember Sharpless moved that the Chairman and Secretary of the Board be authorized to act for the Board is the matter of withdrawals, rollovers, etc., for the Prudential Securities brokerage account. Boardmember Trube seconded the motion. The vote on the motion was: Thomas Bradford - for Allay Osluad - for Nilliam Sharpless - for James Trube - for IX. The motion was therefore passed and adopted Attorney McCracken advised he would draw up a corporate resolution incorporating the above motion. Finance Director Kascavelis stated he would send copies of the completed corporate resolution to Prudential Securities and to Loomis Sayles. ADJOIIRN~NT Boardmember Oslund moved that the meeting be adjourned. Boardmember Sharpies seconded the motion. The vote on the motion was: Thomas Bradford - for Allan Oslund - for Nilliam Sharpless - for James Trube - for BOARD OF TRUSTEES TSQUESTA S~LOYESS' PENSION TRUST FOND STING N;INOT$S April 29, 1998 PAaS 10 The motioa was therefore passed and adopted and the meeting was adjourned at 10:00 A.D~. Respectfully submitted, Betty Laur Recording Secretary ATTEST: Joann Manganiello village Clerk DATE APPROVED: