HomeMy WebLinkAboutMinutes Police Pension 06112011 City of Palm Beach Gardens Police Officers' 11
Pension Fund
Minutes of the Meeting Held
June 11, 2020
The special meeting of the Board of Trustees of the City of Palm Beach Gardens
Police Officers' Pension Fund was called to order at 9:05 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
REPORTS
OTHERS PRESENT
Scott Baur (Resource Centers)
A.C. Lovingood (Resource Centers)
Bonni Jensen (KKJ&L)
John McCann (AndCo Consulting)
IMF GLOBAL INFRASTRUCTURE INVESTMENTS: Mr. McCann informed the Board that
Chris Falzon's wife had their baby last night and was unable to attend the Board
meeting.
HIGHLAND CAPITAL: Steve Stack started his presentation by reviewing the S&P 500
from 1996 through till March 31, 2020 with the Board then proceeded to review the
historical crude oil price history, noting that there are similarities to the cost of crude
oil now and back in late 2008 during the last recession, noting that oil rebounded
70%. Mr. Stack then reviewed the historical Bull and Bear Markets with the Board
along with the market corrections when each type had ended, noting that the
duration is 22 months on average for each correction. In March, US Treasuries were
the only money -making fixed income investment. Mr. Stack then reviewed the
Federal Reserve Actions made from March 3rd through April 9th with the Board. The
current unemployment umbers were discussed with the Board in detail along with
the changes in Corporate Bond Ratings caused by the Global Pandemic. Mr. Stack
informed the Board that Large Cap Growth is the place to be in the Fixed income
sector. In April Large Cap Growth was up 12-14% and in the month of May the
Large Cap Growth Sector was up an additional 4%. The Portfolio has gone from 88
securites down to 65 securities to become more concentrated. Mr. Stack concluded
his presentation by informing the Board that as of June 8, 2020, the portfolio is down
29% for Fiscal -Year -To -Date and the yield is down 1.47%.
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. Mr. McCann
reviewed each investment manager in detail, noting that Rhumbline refunded the
Fees that they charged the Plan so far this year and will not charge the Plan for the
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rest of 2020 due to the Pandemic. Mr. McCann stated that the market did a reset,
and the Plan is within its balance parameters and that for the time being, to stay the
course. Mr. McCann concluded his presentation by giving the Board an update on
how the plan is doing. As of June 9, 2020, Equities are up 1.9%, the Plan went from
$88.5 Million in assets to $102 Million, the Fiscal -Year -To -Date returns are now at
5.5%, and the plan is up an additional 15%. Mr. McCann did note that Real Estate is
not included in these numbers due to the manner that they are valuated.
Mr. McCann then reviewed what was stated at the May 1, 2020 Special Board
Meeting regarding IMF Global and informed the Board that IMF expects to call capital
no earlier than March of 2021. American Realty also informed Mr. McCann that they
do not expect to call capital until the end of the year or sometime in March of 2021
as well, noting that the ability to perform their due diligence has been impleaded due
to travel restrictions.
Mr. McCann then reviewed a memo that he received from American Realty with the
Board. The memo stated that with the Pandemic, May and June rents will be
affected, as well as the valuation of the properties held by the portfolio and there
was a detailed conversation regarding rents, contract extensions, and the short term
future of the real estate markets.
Chairman Jay Spencer requested a Special Meeting if the Capital Call is made for
American Realty, Mr. McCann agreed with the request and stated that he does not
expect a Capital Call for at least six months. The Board then decided to hold a
Special Meeting in July for an update on how the markets are doing and to address
any potential changes that may be needed.
ATTORNEY REPORT
JENSEN MEMO - CARES ACT: Mrs. Jensen reviewed the CARES Act with the Board. It
was noted that the tax penalty for the withdrawal of funds from a retirement plan or
account has been suspended for the entire year of 2020 for COVID-19 related
expenses.
JENSEN MEMO - COVID-19 SOCIAL DISTANCING: Mrs. Jensen provided the Board
with an update on the operations of her firm. Klausner, Kaufman, Jensen & Levinson
will remain in remote operation through the end of April and remote operations may
continue if concerns of public safety do not improve. Mrs. Jensen stated that her
firm has the capability to host both video and telephone conferences and that her
firm is researching options to securely obtain remote signatures.
JENSEN MEMO - EXTENSION OF VIRTUAL MEETINGS: Mrs. Jensen informed the
Board that Governor DeSantis extended the suspension of the requirement that a
quorum be present in the public meeting place with Executive Order 20-112. This
Executive Order allows Pension Boards to meet via video or telephone conference
though till July 7, 2020.
JENSEN MEMO - FORM 1: Attorney Bonni Jensen informed the Board that the State
Form 1 Financial Disclosures are due by July 1, 2020. Mrs. Jensen noted that Palm
Beach County Office of Elections does allow for these forms to be submitted
electronically via email.
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EXPENSE POLICY - NO PER DIEM: Mrs. Jensen provided the Board with the updated
Expense Policy that doe not include the Per Diem. The new Expense Policy now has
a flat $70 a day meals allowance.
• Brad Seidensticker made a motion to approve the Expense Policy - No Per
Diem as presented for March 11, 2020. The Motion received a second from
Allan Owens and was approved by the Trustees 4-0.
HEROS ACT: Mrs. Jensen gave an update on the HEROS Act that was mentioned at
the last Board Meeting. Mrs. reviewed what the HEROS Act was and that no action
has been taken on the bill at this time.
ADMINISTRATOR RORT
CHERRY BEKAERT 2020 AUDIT ENGAGEMENT LETTER: Mr. Lovingood presented the
Cherry Bekart 2020 Audit Engagement Letter to the Board for review and signature,
noting the Board's past request to have the annual audit started as soon as
administratively possible.
• Alan Owens made a motion to approve the Expense Policy - No Per Diem as
presented for March 11, 2020. The Motion received a second from Greg Mull
and was approved by the Trustees 4-0.
Allan Owens asked for clarification of what Cherry Bekaert meant by performing
some accounting activities. Mr. Lovingood stated that he would reach out to Cherry
Bekaert to confirm what they mean by that within the engagement letter.
Greg Mull left at 10:20am due to a meeting that he has to attend.
DROP STATEMENTS: Mr. Lovingood informed the Board that the DROP Statements
are now available online and that he had noticed an increase in DROP Statement
Requests. Mr. Lovingood also asked the Board if they wanted a letter to be included
with the next distribution of DROP Statements informing the members that they can
view their statements online. The Board agreed that a letter would be a great idea
for the retirees.
AYALA, ROBERT - 2018 MILITARY BUYBACK CALCULATION: Mr. Lovingood informed
the Board that Mr. Ayala contacted him, stating that he never received his 2018
Military Buyback Calculation back when it was originally requested. Mr. Lovingood
informed the Board that he did investigate the matter and was able to locate email
communications from 2018 that the calculation was sent to him via email and that
the calculation was sent via regular mail. There was a lengthy discussion regarding
the calculation costs.
SALEM TRUST
Mrs. Karen Russo thanked the Board for allowing her to attend today's Board
meeting. Mrs. Russo reviewed the information that she conveyed to the Board
informing them about the merger of Salem Trust and TMI along with the notification
that TMI was going to integrate both companies' programs. Mrs. Russo informed the
Board that the Platform update has been completed with no issues and informed the
Board that there was an update on the monthly statements in the month of March,
noting that the April statements were delayed due to the platform conversion and a
few discrepancies that Salem Trust noticed within that timeframe. Attorney Bonni
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Jensen asked if the April and May Statements were fine, Mrs. Russo stated that the
statements were fine and without any issues or discrepancies within them.
Chairman Jay Spencer asked if there were any issue with the transfer to data? Mrs.
Russo stated that the data transfer went smoothly with no issues to report.
MINUTES
The Board reviewed the Regular Meeting Minutes dated March 11, 2020.
• Brad Seidensticker made a motion to approve the Minuets as presented for
March 11, 2020. The Motion received a second from Allan Owens and was
approved by the Trustees 3-0.
The Board reviewed the Special Meeting Minutes dated May 1, 2020.
• Allan Owens made a motion to approve the Minuets as presented for May 1,
2020. The Motion received a second from Brad Seidensticker and was
approved by the Trustees 3-0.
DISBURSEMENTS
The Disbursements dated June 11, 2020 were presented in the Trustee packets for
review.
• Brad Seidensticker made a motion to approve the Disbursements as
presented for June 11, 2020. The Motion received a second from Allan Owens
and was approved by the Trustees 3-0.
BENEFIT APPROVALS
The Benefit Approvals for June 11, 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.
• Allan Owens made a motion to approve the Benefit Approvals as presented
for June 11, 2020. The Motion received a second from Brad Seidensticker and
was approved by the Trustees 3-0.
OTHER BUSINESS
There was no other business to discuss at this time.
PUBLIC COMMENTS
There were no public comments.
ADJOURN
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There being no further business, the Trustees officially adjourned the meeting at
10:50 AM. The next meeting is scheduled for Thursday, September 10, 2020 at 9:00
AM.
Respectfully submitted,
Brad Seidensticker, Secretary
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