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HomeMy WebLinkAboutDocumentation_Regular_Tab 7B_11/12/1998~t f i VILLAGE OF TEQUESTA Post Office Box 3273 • 250 Tequesta Drive • Suite 300 Tequesta, Florida 33469-0273 (561) 575-6200 Fax: (561) 575-6203 `]~ - 3 TEQUESTA EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES MEETING ,JULY 29, 1998 I. CALL TO ORDLR 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, July 29, 1998. The meeting was called to order at 9:26 A.M. by village Attorney John C. Randolph, who conducted the meeting in the absence of Chairman Ron T. Mackail and Secretary Thomas G. Bradford. A roll call was taken by Betty Laur, the Recording Secretary. Boardmembers in attendance at the meeting were: Peter Allen, William Sharpless, and Allan Oslund. Also in attendance were Village Attorney John C. Randolph, Assistant Finance Director Cheryl DeBlasio, Personnel Specialist Kim Bodinizzo, and Loomis, Sayles & Company representative Peter V. Van Beuren. Chairman Ron T. Mackail, Secretary Thomas G. Bradford, and Boardmember Carl C. Hansen were absent from the meeting. A resignation had been received from Boardmember James B. Trube. Village Attorney Randolph announced that the meeting had been delayed 25 minutes and telephone calls had been made to determine that no one else would be present, and that because a quorum of the members of the Board was not present, no action could be taken at this meeting; however, reports could be presented. 1 BOARD OF TRIIST88S TBQU'ESTA Bb~LOY88S' PENSION TRIIST FUND ~938TING ffiINOTES July 29, 1998 PAGE 2 II. APPROVAL OF AGENDA No actioa could be takes oa this item. III. APPROVAL OF MINUTES A) Tequesta Employees' P~easiga Trust Fund Board of Trustees meeting minutes for April 29, 1998 No actioa could be taken oa this item. Mr. Peter van Beuren was requested to provide his report next. IV. FINANCIAL 128PORTS A) Loomis, Sayles & Company, L.P., Investment Manager's Financial Statement for Quarter 8ndiag Juae 30, 1998 (Peter V. Vaa Beuren, V.P. & Sr. Partner) Mr. Van Beuren presented an Investment Review booklet for the Village of Tequesta Employees' Pension Trust Fund dated July 29, 1998 prepared by Loomis, Sayles & Company. Mr. Van Beuren reviewed the report booklet beginning with Section Two, and explained that the mix was still at 50~, altho~xgh the Board had discussed increasing equities to 60~, which would establish fixed income at 40~. Mr. Van Beuren explained that cash was discretionary and could be allocated to either category. Mr. Van Beuren reported that since the last meeting a new Florida law had been passed effective May 22, 1998, which would allow up to 10~ of assets in Police and Fire Department funds to be invested in international securities effective October 1, ].998. In response to a question whether general employees were included, Mr. Van BOARD OF TRUSTSSS TSQUESTA $A~LOYELS' PEIJSION TRUST FUND DIETING MINOTSS July 29, 1998 PAG$ 3 Beuren advised he would provide the statute so that research could be done. Mr. Van Beuren quoted from a newspaper article regarding the new law and stated that he would provide a copy of the article to Administration, and mentioned several foreign-based companies which he believed would be good investments in case in the future the Board wished to consider foreign securities. Mr. Van Beuren commented that the prime rate had remained unchanged since the beginning of the year and reviewed the status of benchmarks for fixed income, which he stated was a vote of Confidence in the future. The Merrill Lynch index had been chosen as a benchmark since Prudential Securities believed the Village should be investing in those types of securities. Mr. Van Beuren reviewed the results of the pension fund for the last six months and since inception, and explained the funds had done well according to the benchmarks in all categories, and stated that cash was coming into the portfolio on a continual basis. Mr. Van Beuren explained that the portfolio had done quite well and was now over $900,000. The effect of cash on returns, especially in an environment with equities on the up side, was discussed, and thae fact that a balancing act was necessary to comply with allocation rules to keep equities at 50~. Section Three of the report showed the portfolio at the end of June with no Cash in the equity portion of the account because it was close to 49~, and therefore had to be put into fixed income. Mr. Van Beuren expressed his opinion that a strong economic cycle would continue, with concentration on high quality companies. The difficulty of adding high quality fixed income investments was discussed. Mr. Van Beuren concluded his summary of the investment position by stating that the current value of the portfolio was $931,574 as of 7/27/98. During review of Section Four of the report, Mr. Van Beuren commented that continued slowdown of the economy BOARD OED' ~ TRIISTSSS TSQU'SSTA S~LOYSSS' PSNSION TRIIST FUND b~STING MINUTES July 29, 1998 PALS 4 was expected, and discussed the effect of the Far Eastern problems on the market. Mr. Van Beuren commented that continued slowing of the economy might lead at some point to the Fed cutting short-term rates, and that we were looking at a flat yield curve, meaning short-term rates were about the same as long-term rates, which happened because inflation had been controlled for some period of time. During review of Section Five, Mr. Van Beuren discussed changes in equities and explained that the ones sold had gone down and the ones bought had gone up, and that Prudential Securities would make changes from time to time with more activity in selling when they wished to build up cash. Section Six listed the investments within the portfolio. Mr. Van Beuren explained that in future reports he would include a brief corporate description of the companies in which the portfolio had invested, and commented the companies were recognizable and that Prudential Securities was trying to find value in medium cap to large cap companies. During discussion, Boardmember Sharpless commented that Prudential Securities liked to be in sectors which they believed would perform well, which was not true diversification. Mr. Van Beuren agreed, but explained that rotation or more weight in certain sectors was needed in order to add to the portfolio; and that companies were chosen which fit a growth profile, and they seemed to fall into those economic categories. Mr. Van Beuren explained that in the current type of market there were some self-correcting mechanisms, and that one self-correcting stock had been Intel. V. STANDING REPORTS BOARD OF TRIISTSLS TSQUTsSTA Eb~LOYSSS' PENSION TRIIST FUND MEETING MINQTS3 July 29, 1998 PAGE 5 The following items were reported by Personnel Specialist Kim Bodinizzo: A) Approval of New Applicants for Participation is Pension Plan: 1) Tracey Friscia, 4/17/98 2) Todd Lynch, 4/30/98 3) Cheryl Deslasio, 6/1/98 4) Lori Montague, 6/15/98 8) Approval of Seaeficiary Changes 1) None C) Request for withdrawal of Contributions (employees terminating employment with village 1) Mercy Cables, terminated 6/25/97, $173.38 had been paid out. 2) Christopher Crawford, terminated 9/19/97, $3,692.41 had bees paid out. 3) Bruce Pauletti, terminated 9/17/97, $279.46 had been paid out. q 4) Robert Pieria, terminated 3/15/98, $6,736.24 had been paid out. 5) Michelle Thomas, terminated 3/06/98, $1,164.94 had been paid out. 6) Jennifer aPest, terminated 4/15/98, $2,245.64 had been paid out. VI. ANY OTBSR MATTERS Boardmember Allan Oslund requested that Peter Van Beuren send documentation with backup information for the new Police and Fire law to the new Finance Director, Connie Holloman. Boardmember Sharpless requested that Ms. Holloman send a copy to each member of the Board. BOARD OF TRUSTEES TEQUESTA EMPLOYEES' PENSION TRUST FUND MEETING MINUTES July 29, 1998 PAGE 6 -------------------------------------------------------------------------------- Boardmember Oslund reported that his term would expire during October, 1998 and requested staff check on that as well as other expiring terms. Personnel Specialist Kim Bodinizzo stated she would research those items. Village Attorney Randolph introduced Assistant Finance Director Cheryl DeBlasio. Boardmember William Sharpless commented that the Village Council had apparently done nothing regarding the Board's request that the plan be amended to provide 60~ in equities, and requested that Secretary Thomas G. Bradford be reminded that should be done. Village Attorney Randolph stated that the Board had already taken action on that matter and that Ms. Bodinizzo could remind Mr. Bradford. Boardmember Peter Allen questioned whether the Police Department had taken action to provide a replacement Boardmember since Boardmember Trube had resigned. It was stated that a memo from Secretary Tom Bradford had indicated that the Chief of Police would solicit volunteers. Village Attorney Randolph stressed the importance of having a full board in order have a quorum present to conduct .business. Boardmember Oslund commented that Chairman Mackail had been absent for several meetings, which created a burden on the Board, and suggested that if Mr. Mackail could not attend meetings that perhaps he should reconsider his position on the Board. village Attorney Randolph advised that these points should be brought to the attention of the Village Manager. IX. ADJOURI~NT The meeting was adjourned at 10:12 a.m, BOARD OF TRIISTEES TEQIIESTA EMPLOYEES' PENSION TRIIST FIIND MEETING MINOTES July 29, 1998 PAGE 7 Respectfully submitted, V l~ Betty Laur Recording Secretary ATTEST: Joann Manganiellq village Clerk DATE APPROVED: