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Minutes 10-27-14.doc
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City of Palm Beach Gardens Police Officers’
Pension Fund
Minutes of the Meeting Held
October 27, 2014
The regular meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers’ Pension Fund was called to order at 9:17 AM by Jay Spencer in the
Council Chambers at the Palm Beach Gardens City Hall at 10500 North Military Trail,
Palm Beach Gardens, Florida.
TRUSTEES PRESENT OTHERS PRESENT
David Pierson, Secretary Audrey Ross (Resource Centers)
Brad Seidensticker, Trustee Bonni Jensen (Law Offices of Perry & Jensen)
Greg Mull, Trustee John McCann (Thistle Asset Consulting)
Marc Glass, Trustee Steve Stack (ICC Capital Management)
Allan Owens (Finance Director, City of PBG)
PUBLIC COMMENTS
Mr. Glass announced and congratulated Mr. Mull on his recent promotion to
Sergeant.
INVESTMENT MANAGER REPORT
ICC Capital – Presented by Steve Stack
Mr. Stack explained that the fund had a very strong fiscal year but the rates for the
10 year treasuries did go down, although they are starting to slowly rise again. He
reviewed the equity portfolio and noted that they are not holding onto any securities
in utilities, but they do have an overweight to materials and consumer staples. For
the quarter the equity fund was negative at -0.89%, but for the fiscal year they were
up 15.16%. Mr. Stack briefly reviewed the fixed income portfolio which did slightly
better for the quarter at 0.15%, and for the fiscal year they were up 3.35%. Fixed
income will remain steady throughout the end of the year.
INVESTMENT CONSULTANT REPORT
Thistle Asset Consulting – Presented by John McCann
Mr. McCann noted that as of September 30, 2014 the fund’s assets are up to
$70.9M. For the quarter the total fund net of fees was negative, but slight ahead of
the index at -1.36% versus -1.39%. Although for the fiscal year the Plan
outperformed its assumed rate of return and the index at 10.73% versus 10.29%.
Mr. McCann noted that this Plan had a great fiscal year. He reviewed the Plan’s
asset allocation and stated that American Realty still has another capital left for
$480K and then they will be fully funded. Mr. McCann briefly reviewed each
manager’s performance for the quarter and the fiscal year. Both the Rhumbline 400
& 600 accounts were negative, as well as the ICC equity fund. All the international
accounts are doing well and Mr. McCann noted that he does not have any
recommendations at this time for rebalancing.
Lastly Mr. McCann reviewed the American Realty letter. American Realty is looking
to allow foreign investors in their products so therefore they need the Boards
consent. He explained that they will not be investing directly into this portfolio as
American Realty will be running a feeder fund parallel to this fund, although the two
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funds will not be competing. This change would not directly impact this fund or this
Plan’s investments. Both Ms. Jensen and Mr. McCann are comfortable with American
Realty’s consent.
MOTION: Mr. Seidensticker made a motion to authorize and approve the
Board’s consent to solicit with American Realty.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
ATTORNEY REPORT
Law Offices of Perry & Jensen - Presented by Bonni Jensen
Ms. Jensen stated that as a follow up from the last meeting she has her Firm’s
assumption and agreement with Klausner and Kaufman regarding the transition, to
be executed by the Board of Trustees.
Ms. Jensen briefly discussed the new Senate Bill 534 requirements. There are 5 new
reports that will have to be completed this year and they will have to be submitted
within 60 days after the receipt of the Actuarial Valuation Report.
Ms. Jensen wanted the Board to be aware of the ongoing IRS/Governmental issue.
The Government wants a retirement age to be in place rather than just years of
service retirement eligibility. Pension Plans were supposed to acknowledge this and
do something about it by January 1, 2015, but yet again they keep delaying the
issue. Ms. Jensen will keep the Board updated as more information comes along.
Ms. Jensen presented that Board with the GRS letter regarding the new Senate Bill
534 requirements. Because of all the additional reports the Actuary will have to
create, GRS is proposing a fee increase between $2,500-$3,000 to complete all the
reports. Ms. Jensen noted that the Board is required by the Division of Retirement to
complete these reports, or the Plan’s State money could be withheld.
MOTION: Mr. Seidensticker made a motion to approve and accept the
proposed fee of (not to exceed) $3,000 as presented by GRS in
regards to the new Senate Bill 534 requirements.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
ADMINISTRATOR REPORT
Resource Centers – Presented by Audrey Ross
Ms. Ross presented the Board with the September 30, 2014 audit engagement letter
from Cherry Bekaert. She noted that the fee remains the same as last year. Ms.
Jensen noted that she reviewed the letter as well and does not have any objection.
MOTION: Mr. Mull made a motion to approve and accept the September
30, 2014 audit engagement letter as presented from Cherry
Bekaert.
SECOND: Mr. Pierson seconded the motion.
CARRIED: The motion carried unanimously 4-0.
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MINUTES
MOTION: Mr. Glass made a motion to approve the minutes from the
August 22, 2014 regular meeting.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
DISBURSEMENTS APPROVALS
MOTION: Mr. Seidensticker made a motion to approve the
disbursements.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
BENEFIT APPROVALS
MOTION: Mr. Mull made a motion to approve the applications to enter the
DROP for Jonathan Evans and Cheryl Bahr, the applications for
distribution of DROP accounts for Jules Barone and George
Betscha.
SECOND: Mr. Glass seconded the motion.
CARRIED: The motion carried unanimously 4-0.
OTHER BUSINESS
Mr. Owens stated that he would like to get the Boards permission to be able to work
directly with the Actuary, GRS, in regards to the new GASB 68 implementations that
are effective September 30, 2015. The City would pay for all charges associated with
this project. Ms. Jensen commented that she does not see an issue with this and
that it will actually be very beneficial for the City and this Board since all the
information will also be consistent since it is coming from the same Actuary.
MOTION: Mr. Glass made a motion to authorize and allow the City to
work directly with the Plan’s Actuary, GRS, in regards to the
new GASB 68 reports.
SECOND: Mr. Mull seconded the motion.
CARRIED: The motion carried unanimously 4-0.
Lastly Mr. Mill entertained the idea of having some kind of annual newsletter that
would be sent out to all the active members and retirees. Ms. Jensen commented
that she knows of a company that does this type of work, but it might be a little
more than what the board is looking for. Also the Resource Center’s website has a
link to all the information a member may need.
AJOURN
There being no further business, the Trustees officially adjourned the meeting at
10:35PM. The next meeting still needs to be determined.
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Respectfully submitted,
_____________________________
DAVID PIERSON, Secretary