Loading...
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 Page 1 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. Minutes 05-01-2020 Page 2 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 Minutes 05-01-2020 Page 3