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