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HomeMy WebLinkAboutAgenda GEPF 022304City of Palm Beach Gardens 10500 N. Military Trail Palm Beach Gardens, FL 33410 GENERAL EMPLOYEES PENSION FUND NOTICE OF MEETING AND AGENDA Please take notice that the BOARD OF TRUSTEES OF THE CITY OF PALM BEACH GARDENS will conduct a meeting of the board at the above location on February 23,2004 at 2:OOPM in the Building Division Conference Room. AGENDA Approval of minutes dated November 17, 2003 2. Investment Reports A. Investment Manager — Lance Powers - Trusco B. Performance Monitor — Joe Bogdahn — Bogdahn Consulting 3. Old Business A. Payment of Invoices 4. New Business A. Joe Bogdahn- Trusco Performance Update B. Discussion — Attorney Hourly Rate Increase 5. Attorney's Report 6. Adjournment DISABILITY INFORMANTION In accordance with the Disabilities Act and F.S.S.286.26, persons with disabilities needing special accommodation to participate in this proceeding should contact the Human Resource Department no later than seven days subsequent to the proceeding at 561- 799 -4200 for assistance, if hearing impaired, telephone the Florida Relay Service Number at 800 - 955 -8770 (VOICE) for assistance. APPEAL NOTICE If a person decides to appeal any decision made by the Board, with respect to any matter considered at such meeting or hearing, he will need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. Jack Hanson — Building Official Secretary to the Board of Trustees (561) 799 -4283 Pension brdagenda City of Palm Beach Gardens General Employees Pension Fund Trustee Meeting November 17, 2003 The Meeting was called to order by Steve Parella at 2:10 PM. In attendance were Steve Parella, Jack Hanson, Judy Fox, Joe Boghdan, Ken Steele, Lance Powers, Maria Goncalves, and Ward Foster. A motion to approve the minutes of the August 18, 2003 was made by Steve Parella and seconded by Judy Fox. The vote to approve was unanimous. The Investment Managers report was given by Lance Powers. He stated that we are off to a very good start based on the September 2003 report. Tech stocks are looking strong overall, 2004 is an election year, and jobs outlook is positive. We are reallocating based on the assumption and experience that interest rates will rise. The Performance Monitors report was given by Joe Boghdan. We are doing O.K. overall but there is some concern in select areas. He will meet with Trusco to relay those concerns and set up a board meeting in December to discuss the outcome, if necessary. (A subsequent phone call between Joe Boghdan and Jack Hanson resulted in making this item an agenda topic for the first 2004 meeting) The Actuaries Report was given by Ward Foster and he stated that this is one of the best fiscal year reports we've had. The contribution rates of the City are very stable, our funding is solid, and the plan is sound. A motion to approve the invoices from Boghdan Consulting for $1,500.00 was made by Steve Parella and seconded by Judy Fox — the vote to approve was unanimous. A motion to approve the invoice from Christiansen & Dehner for $1,751.10 was made by Steve Parella and seconded by Jack Hanson — the vote to approve was unanimous. A motion to approve the invoice from Foster & Foster for $4,340.00 was made by Steve Parella and seconded by Ken Steele — the vote to approve was unanimous. A brief discussion regarding the pension plan restatement and the new administrative forms resulted in a motion to approve those documents by Steve Parella and seconded by Judy Fox — the vote to approve was unanimous. The purchase of a fire -proof file cabinet for pension plan records was deferred to the first 2004 meeting. The Attorney's Report and discussion of the return to employment after retirement options plan was also deferred to the first 2004 meeting. The meeting adjourned at 4:15 pm. Respectfully submitted„ Qeze,ok ..1r /Jack Hanson, - Secretary City of Palm Beach Gardens Pension Board of Trustees SCOTT R. CHUSTIANSEN H. LEE DEHNER LAW OFFICES CHRISTIANSEN & DEHNER, P.A. 63 SARASOTA CENTER BLvD. SUITE 107 SARASOTA, FLORIDA 34240 February 2, 2004 Mr. Jack Hanson, Secretary City of Palm Beach Gardens General Employees' Pension Plan 10500 North Military Trail Palm Beach Gardens, Florida 33410 Re: City of Palm Beach Gardens General Employees' Pension Plan Dear Jack: PHONE: (941) 377-2200 FAx: (941) 377 -4848 It has been brought to our attention by pension trustees, attorneys and other pension consultants that the fees being charged by attorneys who represent pension funds in Florida who have similar expertise and length of time providing legal services to these pension funds range from $250.00 to $275.00 per hour. Accordingly, effective April 1, 2004, we are appropriately increasing our fee to $250.00 per hour for legal services and, as currently charged, one -half that amount for travel time. As you know, our practice is limited to the exclusive representation of municipal and district retirement plans in Florida. We currently represent approximately 150 plans. With that number of clients and participation in at least six pension conferences each year, we are able to provide you with cost effective service. Due to the similar level of knowledge and expertise required for representation of all of our clients, the new fee is the same for all. We respectfully request the Board's approval of the fee at its next meeting. We guarantee that there will not be another increase for at least three years. We will be happy to answer any questions you may have at the meeting or prior thereto. We have enjoyed our relationship with the Trustees and look forward to working with you in the coming years. Yours very truly, Christiansen & Dehner, P.A. BOGDAHN CONSULTING, LLC, simplifying your investment decisions MEMORANDUM TO: All Trustees FROM: Joe Bogdahn RE: SEC Investigations of Pension Consultants DATE: 15 January, 2004 Just this week, the Securities and Exchange Commission announced an examination of investment consulting firms about their dealings with pension fund clients. To quote the WSJ article of January 13, 2004, "Not all consultants have relationships with the firms they recommend, but some receive substantial fees for various services from money managers they recommend to pension fund clients." As more information is released, pension trustees around the country will be questioning exactly whose interests their consultants have been placing first and foremost in their decisions and recommendations. Attached please find a copy of my memo to all clients from roughly two years ago, which has the WSJ article copied on the back. I would like to refresh our commitment to you with the following declarations: ♦ We act as fiduciaries to you and your fund. ♦ We do not provide any brokerage, trading or custody services for our clients. ♦ We do not accept any form of soft dollar payments. ♦ Our only compensation for the work we do for your fund is received through the checks you send to Bogdahn Consulting. ♦ We have never required, or even suggested, that any investment manager compensate us in any way in order to be recommended by our firm or be included in our search database. In no manner do we practice `PAY TO PLAY.' Bogdahn Consulting is an independent firm, providing objective, unbiased advice to our clients. We thank you and your Board for the opportunity to represent you and your fund, and look forward to a successful long -term relationship. Please do not hesitate to contact us if you have any questions or would like more detailed information concerning these topics, and if you are attending the FPPTA in Ponte Vedra, make sure you attend the consultant's panel discussion on Monday afternoon. We look forward to seeing you in Ponte Vedra or at our next meeting. 62 Fourth Street Southwest • Winter Haven, Florida 33880 Telephone (863)293 -8289 • Facsimile (863) 298 -6762 BOGDAHN CONSULTING. LLC. simplifying your investment decisions MEMORANDUM TO: Board of Trustees - 7 FROM: Joe Bogdahn RE: Firm Update DATE: 22 April, 2002 As we settle into 2002, I want to express my sincere thanks to each of our clients. We now have the pleasure to represent 72 municipal pension boards throughout Florida, and I truly appreciate the opportunity to serve your board. I believe that the three primary factors that have contributed to this success have been hard work, our independent status and your generous referrals and kind recommendations to boards seeking a new advisor. Thank you for this support. I expect that, in light of the current Anderson/Enron issues, you will soon be reading/hearing that many consulting firms have not fully disclosed their relationships with various investment managers, and how in many cases the compensation they receive from these relationships far exceeds the fees quoted to the clients. Given this environment, I believe it prudent to reiterate that, as an independent firm, we are not tied to any investment management firm. We do not accept extravagant gifts from investment managers nor do we engage in soft - dollar arrangements. While we maintain professional, cordial relations with investment management firms, objectivity is our watchword. We understand our role as plan fiduciaries and serve accordingly. While anyone can say they are independent, I would like to make sure that our clients are comfortable that we actually are independent. To confirm this statement, I would welcome a visit by your plan auditors, and we will open our financial records and tax returns for their review. They may review my personal tax returns as well. Our total compensation for working with your Board is paid by you from the invoices we send each quarter, as outlined in our agreement. Thank you again for your business, and I welcome any suggestions you may have as to how we can improve our services. I look forward to meeting with you soon. 62 Fourth Street Southwest • Winter Haven, Florida 33880 Telephone (863)293 -8289 • Facsimile (863) 298 -6762 BOGDAHN CONSULTING, LLC, simplifying your investment decisions January, 2004 With the holiday season a fresh and pleasant memory, I hope that you had the opportunity to slow down and reflect on the many blessings in our lives, and were able to relax and visit with family and friends. We would like to start the new year by expressing our gratitude and appreciation for the opportunity to serve you and your Board. Marketwise, 2003 was a major improvement over the recent years, and we hope that it was a fruitful year for you and yours as well. 2003 was also an exciting year for our firm. We were selected to represent eleven new clients, and we are most pleased to announce that Michael Welker has joined the jtrm. a oo z orb o seeing each of you in 2004, and as always would appreciate any comments or suggestions as to how we may increase or improve our service to you. Thank you again for being part of our business family. 62 Fourth Street Southwest • Winter Haven, Florida 33880 Telephone (863) 293 -8289 • Facsimile (863) 298 -6762