HomeMy WebLinkAboutMinutes Police Pension 050120City of Palm Beach Gardens Police Officers'
Pension Fund
Minutes of the Meeting Held
F May 1, 2020 1
The special meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers' Pension Fund was called to order at 9:02 AM by Jay Spencer via
RingCentral Video Conference.
TRUSTEES PRESENT
Jay Spencer, Chairman
Brad Seidensticker, Secretary
Marc Glass, Trustee
Greg Mull, Trustee
Allan Owens, Trustee
OTHERS PRESENT
Scott Baur (Resource Centers)
A.C. Lovingood (Resource Centers)
Bonni Jensen (KK7&L)
John McCann (AndCo Consulting)
Attorney,, Bonni Jensen reviewed Executive Order 2020-69 issued by Governor
DeSantis with the Pension Board Trustees. Mrs. Jensen informed the Board that the
Executive Order relaxed the Sunshine Law requiring the Board to meet in person and
allow for the Board Meetings to be conducted via video or teleconference due to the
COVID-19 Pandemic. Executive Order 2020-69 has an expiration date of May 8,
2020; however, the Executive Order could be extended to a later date.
Mrs. Jensen the introduced a Policy for the Board on the use of A-V or telephone
conferencing. Mrs. Jensen reviewed the Policy with the Board., noting that the
expiration date of the Policy coincides with the expiration date of Executive Order
2020-69.
• Marc Glass made a motion to approve the Policy on Use of A-V or Telephone
Conferencing. The Motion received a second from Allan Owens and was
approved by the Trustees 5-0.
MELLON INFRASTRUCTRE INVESTMENTS: Mr. McCann informed the Board that
Mellon Infrastructure Investments buys international stocks. However, Salem Trust
is unable to support international investments. Mellon Investments offered an
alternative ADR as an option. He stated that 75% of the Mellon Infrastructure
Investments would be available in the ADR option; however, international stocks
would not. Currently there is one international stock in the Portfolio that the Plan
would not have the opportunity to invest in. An alternative option would have a
second custodian., which would allow the Plan to have access to the international
stock portion of the Mellon Portfolio. Chairman Jay Spencer stated that the options
that the Plan has at this point are to go with the ADR or hold on investing in Mellon.
Chairman Spencer continued, stating that if the Plan cannot invest with the original
intent, the Plan should not move forward. Trustee Marc Glass agreed.
Minutes 05-01-2020
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Greg Mull made a motion to not invest in the Mellon Infrastructure
Investment. The Motion received a second from Marc Glass and was approved
by the Trustees 5-0.
IFM GLOBAL INFRASTRUCTURE INVESTMENTS: Mr. McCann updated the Board
regarding IFM Global Infrastructure. He informed the Board that the account is open
and expects the account to be fully invested by 2021.
AMERICAN REALTY ADVISORS: Mr. McCann informed the Board that he had spoken
with Mrs. Hayes at American Realty Advisors to find out how they are doing. Mrs.
Hayes stated that nothing has changed. She did note that American Realty Advisors
is working with their tenants due to the COVID-19 Pandemic shutdown.
INVESTMENT POLICY STATEMENT: Mr. McCann informed the Board that IFM Global
and American Realty are not calling capital at the moment, but he wishes to be ready
for when the capital calls start to come in. Mr. McCann reviewed the modified
Investment Policy Statement with the Board. There was a discussion regarding what
percentages to invest in IFM Global and American Realty Advisors.
Allan Owens made a motion to update the Investment Policy Statement,
investing 5% into IFM Global and 2.5% in American Realty Advisors. The
Motion received a second from Brad Seidensticker and was approved by the
Trustees 5-0.
Brad Seidensticker made an inquiry into how IFM Global and American Realty
Advisors value their investments since they are not investing in traditional stocks.
There was a lengthy discussion regarding how the investments are valued, concerns
regarding the COVID-19 Pandemic and the effects on these investments, and the
concerns regarding the possibility of the investments being overvalued.
03-31-2020 QUARTERLY PERFORMANCE REPORT: Mr. McCann informed the Board
that the Quarterly Performance Report was a horrible quarter. On December 31,
2019, the Plan had $105,093,376 and at the close of March 31, 2020 the Plan had a
total of $88,966,598 in investments. The quarter ended with-14.07% investment
return compared to the policy index of-14.56%. For the fiscal year to date, the Plan
is down -9.32. Mr. McCann requested that the Investment Managers send him an
update regarding the status of the Plan's investments as of April 30, 2020. In one
month, the Plan was up 7.8%. For the fiscal year to date the Plan is at 1.5%, which
is great news considering where the Plan was as of March 31, 2020. Attorney Bonni
Jensen stated that the Plan was out of balance as of March 31, 2020 and inquired if it
reset itself with the market uptick. Mr. McCann stated that the market did reset and
the Plan is within its balance parameters.
ATTORNEY REPORT
Attorney Bonni Jensen informed the Board that she will discuss the CARES Act and
the recent changes to the minimum required distributions at the next Quarterly
Board Meeting. Trustee Marc Glass inquired about the pending HEROS Act. Mrs.
Jensen stated that she was not aware of this pending legislation. Mr. Glass informed
the Board that the Act would place a pause on Federal Income Taxes withheld on
active police officers for a period of four months, similar to the income tax incentives
given to active duty military members located in an active war zone.
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A&DHINI§jR=R REI!QRT
RESOURCE CENTERS OPERATIONS: Scott Baur informed the Board that The
Resource Centers is operating normally; however, guests are not allowed in for the
time being. As the situation with the COVID-19 Pandemic improves, The Resource
Centers will start allowing guests in with an appointment and everyone, including
employees will be screened upon entry.
RESOURCE CENTERS PAYMENT VERIFICATION PROCESS: Mr. Baur informed the
Board that the Payment Verification Process has been delayed due to the COVID-19
Pandemic. Once the Pandemic subsides to a more comfortable level, The Resource
Centers will move forward with the planned Payment Verification Process.
BENEFIT APPROVALS
The Benefit Approvals for May 1, 2020 were presented in the Trustee packets for
review. Mr. Lovingood informed the Board that the Benefit Approvals were included
in this Special Board Meeting due to one member's DROP Distribution requiring
Board Approval before disbursement.
• Brad Seidensticker made a motion to approve the Benefit Approvals as
presented for May 1, 2020. The Motion received a second from Allan Owens
and was approved by the Trustees 5-0.
HER BUSINESS
There was no other business to discuss at this time.
PUBLIC COMMENTS
There were no public comments.
D O!jRN
There being no further business,. the Trustees officially adjourned the meeting at
9:55 AM. The next meeting is scheduled for Thursday, June 11, 2020 at 9:00 A.M.
Respe y su mi end,
Brad Seidensticker, Secretary
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