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HomeMy WebLinkAboutMinutes Police Pension 091718City of Palm Beach Gardens Police Officers' Pension Fund Minutes of the Meeting Held September 17, 2018 The regular meeting of the Board of Trustees of the City of Palm Beach Gardens Police Officers' Pension Fund was called to order at 9:04 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 Jay Spencer, Chairman Audrey Ross (Resource Centers) Brad Seidensticker, Secretary Bonni Jensen (KKJ&L) Allan Owens, Trustee Steve Stack (Highland Capital) 9:13 Greg Mull, Trustee John McCann (AndCo Consulting) Marc Glass, Trustee ATTORNEY REPORT ACCOUNTING / BOOKKEEPING SERVICES RFP UPDATE: Bonni Jensen stated there have been no further responses for the service. The Board directed Ms. Jensen to send out the RFP again. BUYBACK POLICY: Mrs. Jensen presented the revised Buyback Policy and reviewed the updates with the Trustees. • Brad Seidensticker made a motion to approve the Buyback Policy as presented. The Motion received a second from Marc Glass and was approved by the Trustees 5-0. AMENDMENT 6 - FLORIDA CONSTITUTION: Bonni Jensen reviewed a memo from her firm regarding the impact to the pension plan related to Amendment 6. She explained the memo is informational at this time as it is currently being challenged. She explained the portion related to crime victims' rights is very compelling; however other, completely unrelated items were added into the amendment, one of which impacts potential forfeiture provisions. She explained the main three items were 1) Victims' rights, 2) Judge ages extended to age 75 and 3) Change to the rules regarding court action which affects entities such as pension funds. She explained the third item in detail using the example if the Board makes a decision to forfeit someone's benefit: Currently if a person takes the Pension Board's actions to court, the Court gives deference as long as the matter was handled fairly and within the rules of the Plan (due process, notice, treated fairly and rules correctly applied to the member's case). If the Amendment passes, the change would cause the Court to determine "de novo" and not give the Board the benefit of the doubt. Instead, the Court would review the case on its' own from the beginning and could rule differently. INVESTMENT MANAGER REPORT - HIGHLAND CAPITAL Steve Stack appeared before the Board to present a report of the period ending June 30, 2018. He reviewed the current market environment and up to date portfolio Minutes 09/17/2018 Page 1 information. He reported on fixed income noting they are keeping short on duration and are underweight in technology. He reviewed the top and bottom holdings in the portfolio. Mr. Stack explained the portfolio is positioned in preparation for a slight pullback in the market on the growth side. INVESTMENT CONSULTANT REPORT - ANDCO John McCann appeared before the Board to present a report of the period ending June 30, 2018. He began with a Flash Report (update through August 31, 2018). He reported fiscal year to date the fund was up 11.44%. Mr. McCann reviewed the detailed June 30th report advising of the following: The fund was up 2.66% beating the policy of 2.49%; equities were up 4.06% below the policy of 4.07% and fixed income was down -1.33% below the policy of -0.71%. He reported all managers are doing well and he hopes the market will continue to be up over the next couple of weeks to close out the fiscal year on a positive note. Mr. McCann explained this Plan has the highest return of all of his clients currently. He will discuss rebalancing with the Board at the next meeting. ADMINISTRATOR REPORT FIDUCIARY LIABILITY INSURANCE RENEWAL: Audrey Ross presented the fiduciary liability insurance renewal. • Marc Glass made a motion to approve the fiduciary liability renewal as presented. The Motion received a second from Allan Owens and was approved by the Trustees 5-0. 2019 MEETING DATES: Audrey Ross presented the 2019 meeting dates for consideration. It was noted the 2018/2019 Budget was missing from the agenda. • Greg Mull made a motion to amend the agenda adding the 2018-2019 Draft Budget. The Motion received a second from Marc Glass and was approved by the Trustees 5-0. Discussion followed regarding the Draft 2018-2019 Budget. • Marc Glass made a motion to approve the 2018-2019 Draft Budget. The Motion received a second from Allan Owens and was approved by the Trustees 5-0. INVESTMENT MANAGER REPORT — AMERICAN REALTY Richelle Hayes and Paul Czachorowski joined the meeting via conference call to provide an update of American Realty's portfolio. They explained what happened back in March; they had a disposition list at the meeting and subsequently provided a list with different information. Mr. Czachorowski reviewed the top three and bottom three holdings. He explained they have had 61 transactions since inception in 2011. The fund has a 91% occupancy rate. Discussion followed regarding leverage and Mr. Czachorowski explained they currently have 20% leverage and it is expected to increase to 23% soon; however they do not expect to go above 25%. He noted 90% of the debt is fixed rate. He reviewed their purchase and sale process in detail with the Board. There were no further questions and the call ended. Minutes 09/17/2018 Page 2 MINUTES The June 2018 minutes were presented in the Trustee packets for review. • Brad Seidensticker made a motion to approve the June Minutes as presented. The Motion received a second from Greg Mull and was approved by the Trustees 5-0. DISBURSEMENTS The Disbursements through September 12, 2018 were presented in the Trustee packets for review. • Allan Owens made a motion to approve the Disbursements as presented. The Motion received a second from Brad Seidensticker and was approved by the Trustees 5-0. BENEFIT APPROVALS The Benefit Approval was presented in the Trustee packets for review. It was noted one of the members was listed on the report twice in error. • Marc Glass made a motion to approve the Benefit Approvals as amended. The Motion received a second from Greg Mull and was approved by the Trustees 5-0. FINANCIAL STATEMENTS The board reviewed and discussed the financial statements that were provided through July 2018. OTHER BUSINESS Discussion followed regarding the Travel Policy. The Trustees instructed to change the daily maximum from $30 to $50. The revised Travel Policy will be provided for the next meeting. PUBLIC COMMENTS N/A AJOURN There being no further business, the Trustees officially adjourned the meeting at 10:46 AM. The next meeting is scheduled for Friday, December 7, 2018 at 9 AM. Respectfully submitted, Brad Seidensticker, Secretary Minutes 09/17/2018 Page 3