Loading...
HomeMy WebLinkAboutDocumentation_Regular_Tab 06A_02/11/1999~r f ,r VII,LAGE OF TEQUESTA Post Office Box 3273 • 250 Tequesta Drive • Suite 300 Tequesta, Florida 33469-0273 (561) 575-6200 Fax: (561) 575-6203 ~~ TEQUESTA EMPLOYEES' PENSION TRUST FUND BOARD OF TRUSTEES MEETING OCTOBER 28, 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, October 28, 1998. The meeting was called to order at 9:00 A.M. by Chairman Ron T. Mackail. A roll call was taken by Betty Laur, the Recording Secretary. Boardmembers in attendance at the meeting were: Peter Allen, Cheryl DeBlasio, William Sharpless, Chairman Ron T. Mackail, and Secretary Tom Bradford. Also in attendance were Attorney John McCracken sitting in for Village Attorney John C. Randolph, Finance Director Connie Holloman, and Loomis, Sayles & Company representative Peter V. Van Beuren. Shawn Miller and Boardmember Carl C. Hansen were absent from the meeting. II. APPROVAL OF AGiSNDA Finance Director Holloman requested the following additions to new applicants for participation in the Pension Plan: Matthew C. Wick, 10/29/98 Donald C. Jackson, 10/2/98 Boardmember Bradford made a motion to approve the ageada as submitted amended. Boardmember Sharpless secoaded the Recycled Paper 80ARD OF TRIISTSES TBQIISSTA Sl~LO'Y'$SS' P$NSION TRIIST FDND ~STINt3 MINOTSS October 28, 1998 PA(~38 2 mbtioa. The vote oa the motion was: Roa T. Mackail - for Thomas Bradford - for peter Ailea - for fChezyl DeBlasio - for ~Pilliaat Sharpless - for The motion was therefore passed and adapted and the Agenda was approved as amended. III. APPROVAL OF I[INLITRS A} 1} Tequesta Smplbyees' Peasioa Trust Fund Hoard of Trustees meeting minutes for April 29, 1998 2) Tequesta SaoQaloyees' Pension Trust Fund Bbard of Trustees meeting minutes for Jt~.1y 29, 1998 Boardmember Sharpless made a motion to approve the minutes as amended by correction of typographical errors. Boardmember Bradford seconded the motion. The vote on the motion was: Rbn T. ~ackail - for Thomas Bradford - for Peter Allen for Cheryl DeBlasio - for Nilliam Sharpless - fvr The motion was therefore passed and adopted and the minutes were approved as amended. IV. STANDINti REPORTS A) Approval of New Applicants for Participation is Plaa (April-September, 1998): BOARD OF TRIISTRBS TBQIII~ESTA ~LOY"BSS' ~sTlrra asrrrnTgs October 28, 1998 PAag 3 PSNSION TRIIST FIIND The starting date for employee Jason T. Turner was corrected from 9/29/98 to 10/4/98, and the additions of Matthew C. Wick, 10/29/98 and Donald C. Jackson, 10/2/98 were made as requested by Finance Director Holloman. 1) Tracey Friscia, 4/17/98 2} Todd Lynch, 4/30/98 3) Cheryl DeBiasio, 6/1/98 4) Lori Montague, 6/15/98 5) Connie Holloman, 8/3/98 6) Elizabeth Ransom, 8/31/98 7) Jason R. Turner, 10/4/98 8) Matthew C. Wick, 10/29/98 9) Donald C. Jackson, 10/2/98 B} Approval of Beneficiary Changes (April - September 1998) 1 } None C} Request far ~'ithdrawal of Contributions (employees terminating ealploymeat with Village (April - September 1998) Name Term. Date Payout Amo~,tnt Mercy Cables 6/25/97 $ 473.38 Christopher Crawford 9/19/97 3,692.41 Bruce Pauletti 9/17/97 279.46 Robert Fieris 3/15/98 6,736.24 Michel~.e Thomas 3/6/98 1,164.94 Jennifer Y~Test 4/15/98 2,245.64 David Adams 7/20/98 3,612,14 Michelle Falasz 9/16/98 1,148.56 Al Oslund 9/25/98 4,010.80 Boardmember Bradford made a motipn to approve the new applicants Eor participation is the pension plan with the two additions and one change made this mor~iag. BOARD of TROSTEEs TEQUESTA F~dPLOYEES' FETING MINOTES October 28, 1998 PAGg 4 PENSION TRUST FUND Boardmember Sharpless seconded the motion. the motion was: Ron T. Mackail - for Thoasas Bradford - for Peter A11en - for Cheryl DeBlasio - for Nilfiam Sharpl~ss - for The motion was therefore passed and adopted. The note on Boardmember Bradford made a motion to approve the request for withdrawal of contributions for those employees listed April through September 1998. Boardmember Allen seconded the motion. The vote on the motion was: Ron T. Nackail - for Tho~os.s Bradford - for Peter Allen - for Cheryl DeBlasio - for Nilliam Sharples8 - for The motion was therefore passed and adopted. v. FINANCIAL REPORTS A) Laomis, Bayles a Company, L.P., Investment Naanager's Financial Statement for quarter $ntYing September 30, 1998 (Peter V. Vaa Beuren, V.P. ~ Sr. Partner) 1) Review and Discussion; Mr. Van Beuren presented an Investment Review booklet for the Village of Tequesta Employees' Pension Trust Fund dated October 28, 1998 prepared by Loomis, Bayles & Company. Mr. Van Beuren reviewed the report booklet beginning with Section Two, and explained that tY~.e mix BOARD OF TRIISTSBS TgQtJ$STA SISBLOYRSS' PSriSION TRIIST FIIND ffiSRTINCs NINtYT$S OCtOber 28r 1998 PAGB 5 was still at 50~ for fixed income and 50$ for common stocks. Mr. Van Beuren explained that criteria for equities was the growth equity product where the investment manager was looking for higher potential earnings growth than in the previous five years and projected out five years, as well as above average return on equity relative to the S&P 500 and a reasonable price times earnings to earnings growth ratio. Additional returns were being sought in the bond area by trying to select particular types of credits. Mr. Van Beuren explained that this past quarter had been very unusual for fixed income because of the continued flight to quality worldwide, thereby widening the spread between U.S. Treasury obligations and other credits. However, by lengtk~ening maturity and looking for fixed income credits outside of the U.S. Treasury, some additional value had been garnished for the portfolio. Financial markets were reviewed. A dramatic change had taken place since July, a gradual decline in fixed income and a relatively volatile stock market. This was reflected in the total return figures on the S&P index of a single digit figure of 6~. Fixed income return was still moving along nicely. Mr. van Beuren reported the stocks in the pension trust fund were doing twice as good as the S&P index, and that bonds were holding their own. During review of Section Three of the report, Mr. Van Beuren compared the portfolio with the benchmarks and explained that keeping the funds invested in their particular Categories as much as possible in each area had resulted in the portfolio doing as well as it had. Equity characteristics were showing substantial price times earnings multiple relative to the S&P 500, which Loomis Bayles believed was justified given the other characteristics of the earnings growth relative to the S&P 500. Mr. Van Beuren explained that i,n order to receive this type of growth, Loomis Bayles had made decisions regarding weighting or unweighting certain BOARD OF TRIIST88S T$QIIBSTA E~LOYSgS' PENSION TRIIST FQND I~BTING ~INUTTsS October 28, 1998 PAGE 6 economic sectors and had over-weighted consumer staples, consumer cyclicals, communication services, technology, and health care. Nothing was invested in utilities, or basic materials, and very low percentages in energy and capital goods which were growing much more slowly than other areas of the economy. Mr. Van Beuren explained that in fixed income, maturities were being lengthened to pick up yield and still maintain very high quality. Total portfolio at the end of September was $942,645 and as of October 26 was $957,277. Mr. Van Beuren explained that a statistical page had been included in Section Four to show the gross domestic product and CPI for this year and for the coming year. The CPI was down significantly and a slowdown in the economy was ~iredicted. Investors worldwide had realized the significance of the financial crisis which began in the Far Bast a year ago. This was driven home by the financial problems in Russia, and the TMF had been putting together financial packages to try to salvage the economies of countries in difficulty. The situation seemed to slightly improve mid-September, and steps were being taken to improve the banking situation in Japan and currencies in Brazil. It was hoped that rates would be lowered world wide. Mr. van Beuren expressed his opinion that this was the beginning of improvement globally which would lead to tremendous growth over the next decade. Mr. Van Beuren stated that the question was whether enough action was being taken to stave off a growth recession and whether other countries were cutting rates fast enough tv avoid recessions in their countries. Mr. Van Beuren reported the philosophy had not changed for Tequesta's pension fund and Loomis Sayler planned to continue looking for attractive companies growing faster than others, and they liked multi-national companies home b~.sed in the United States. As of October, 1998, a new law allowed investments based in foreign countries, which Mr, van Beuren commented the village might want to BOARD OF TRIIST$ES T$QUBSTA 8'd~LOYSBS' PgNSION TRIIST FUND ffi8$TINa rclNOTSs October 28, 1998 PAGE 7 consider. Individual transactions were reviewed. The euro dollar was discussed. Chairman Mackail expressed his opinion that Europe had no choice other than to accept the euro dollar, and commented he believed Loomis Sayler was on the right track. During discussion, Mr. Van Beuren predicted lower rates ahead. 8) Prudential Securities, tnc., Custodial Broker, Account Statemeata (July - Septemlaer, 1998) VI. PAYb~NT3 TO BE RRVINiPB'D AND A.PPROVBD A) 9/24/98 Gabriel, Roeder, Smith & Co. - $200 (Monthly Retainer - Sept.) 8/19/98 Gabriel, Roeder, Smith & Co. - $200 (Monthly Retainer - August) 8/19/98 Gabriel, Roeder, Smith & Co. - $200 (Monthly Retainer - July) 8/19/98 Gabriel, Roeder, Smith ~ Co. - $200 (Monthly Retainer - June) 9/30/98 Jones, Foster, Johnston & Stubbs - $527 (Legal Services) 9/30/98 Jones, Foster, Johnston & Stubbs - $591 (Legal Services) 9/30/98 Jones, Foster, Johnston & Stubbs - $687 (Legal Services) Boardmember Sharpless questioned when the pension fund had started paying legal expenses which had previously been paid by the Village. village Manager Bradford reported it had been changed in April, 1998 since the General Fund had carried the load for five years as of April and the pension fund had reached the point where it was in a position to pay the bills for which it was responsible. Soardmember Sharpless made a motioa to approve the BoARn of TRVSa~EEs TEQIIESTA E~LOYESS' PENSION TRIIST FUND MI~STINt~ MINUTES October 28, 1998 PAQE 8 payments shown on the agenda. Boardmember Allen seconded the motion. The vote on the motion was: Ron T. Mackail - for Thomas Bradford - for P®ter Allen - for Cheryl DeBla~sio - for Nilliana Sharpless - for The motion was therefore passed and adopted. vii. Review of Ordinance Amending Pension Fwnd Investment Options Boardmember Bradford reported that at the last meeting the Boardmembers had requested an update on the ordinance to amend the pension fund investment options. Village Manager Bradford explained that the Ordinance had been approved by the Village Council on first reading and requested any changes desired by the Board before final reading scheduled for November. Boardmember Sharpless questioned Mr. Van Beuren regarding whether he would like to have the ability to invest in some foreign securities. Mr. Van Beuren responded that he would like to have the flexibility, and gave an example of an attractive company based in Bermuda from which investments were presently excluded. Mr. Van Beuren recommended restricting the investments in that area to include and exclude certain types of investments. Discussion ensued. Tt was believed the new law al3owed up to 10~ of the portfolio to be invested in foreign securities. Village Manager Bradford advised that an amendment might need to be read on first reading at the November Village Council meeting and second reading in December. Chairman Mackail questioned whether income on U.S. territories based securities would be taxable upon entry into the United States. Mr. Van Beuren advised that type of securities were not what was under discussion. After further discussion, the following motion was made: BOARD OB TRIISTEES T8QII8STA EMPLOY8E3' ~68TIWG MINDTES October 28, 1998 PAGE 9 PEriSIOII TRIIST FvND Boardmember Bradford made a motion to request the Village Council to amend the Ordinance to allow for foreign-based securities that are traded in the form of ADRS on a national exchange, within the statutory limitations. 8oardmember Allen seconded the motion. The vote on the motion was: Roa T. Mackail - for Thomas Bradford - for Peter Allen - for Cheryl De8lasio - for ~1llii~m Sharpless - for The motion was therefore passed sad adopted. yr=I. Arm oTSER ]6ATTRRS Boardmember Allen reported the Fire Department had requested that he ask the Board for permission for someone to come and discuss the advantages and disadvantages between defined benefit and defined contribution plans. Boardmember Sharpless advised that permission had been granted at a previous meeting before Mr. Allen became a member of the Board. Boardmember Bradford commented that he did not believe it would be proffer for this Board to pay for someone to coarse since this Fund was in the defined benefit business and not in the defined contribution business. Boardmember 6harpless commented that an insurance person would probably come without a fee. Boardmember Bradford commented that the IC3~ Retirement Corporation would send their regional person to speak without charge, and recommended Boardmember Allen contact Kim Bodinizzo, Personnel Specialist, regarding providing a presentation on the defined contribution plan.. Boardmember DeBlasio advised that Kim was already doing that for the General Employees. Since no motion had been made concerning the financial reports of Prudential Securities, Inc., Boardmember Bradford made the following motion: No Text BOARD OF TRIISTELS TSQIIESTA E~LOYEBS• N$STING MINiJTES October 28, 1998 PAGE 10 PENSION TRIIST Fi?ND Boardmember Bradford made a motiaa to accept the account statements of Prudential Securities, inc. for July to September, 1998. Boardmember Sharpless seconded the motion. The vote on the motion was: Ron T. ~ackail - for Thomas Bradford - for Peter Allen - for Cheryl De8lasio - for Nilliam Sharpless - for The motion was therefore passed and adopted. I%. ADJ4IIRNMKNT Soardmember Bradford made a motion to adjourn the meeting. Soardmember Allen seconded the motion. The vote oa the motion was: Ron T. N~ackail - for Thomas Sradfo~d - for Peter Allen - for Cheryl De8lasio - for 1Pilliam Sharpless - for Th® motion was therefore passed sad adopted, sad the meeting was ad3ourned at 9:53 A.b~. Respectfully submitted, cz..~,(~ ~~~ ~ Betty Laur Recording Secretary S BOARD OF TRIISTEES TEQtT$STA S~LOYEES' PENSION TRIIST FtTND MEETING ~dINUTES October 28, 1998 PAGE I1 ATTEST: Joann Manganiello Village Clerk DATE APPROVED: