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02-14-2002 Regular Meeting 4 MIAMI SHORES VILLAGE GENERAL EMPLOYEE PENSION BOARD REGULAR MEETING FEBRUARY 14, 2002 1. CALL TO ORDER The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday,February 14,2002 in the Conference Room ofthe Village Hall. The meeting was called to order at 8:05 A.M. 2. ROLL CALL In order for the record to reflect those present the roll was called with the following members present: Present Absent Al Davis,Chairman Tom Benton Henry Courtney Mary Ross Agosta Joseph Charles Wendy Reiner Richard Trumble Also Present: Steve Cypen,Pension Board Attorney Mark A. Malatak,Plan Administrator Lisa Keeley,Recording Secretary 3. APPROVAL OF MINUTES Mr.Benton moved for approval of the minutes as submitted. Mr.Trumble seconded the motion and the vote was unanimous in favor. 4. APPROVAL OF PAYMENT WARRANT Mrs.Ross Agosta moved for approval of the payment warrant as submitted. Mr.Trumble seconded the motion which was passed unanimously. Mr. Charles arrived at this time. 5A. INVESTMENT MANAGER REPORT-The Boston Company-Carl O'Connell Mr.O'Connell reviewed the performance of the fund with a total market value of$3,718,001 as of December 31, 2001. The return for the period was 7.6%;the equity return being 12.3%compared to the Russell 1000 Value return of 7.4%and the fixed income loss of-0.4%just under the Merrill Lynch Government/Corporation return of -0.1%. 511. INVESTMENT MANAGER REPORT-Davis,Hamilton,Jackson&Associates-Janna Woods Ms. Woods reported that the fund's total market value as of December 31, 2001 was $3,602,291. The total equity return for the quarter was 10.2%compared to the Russell 1000 Growth of 15.1%and the 0.2% fixed income return was above the-0.1%Merrill Lynch Government/Corporation return. General Employee Pension Board February 14,2002 Page 2 6. CONSULTANTS REPORT -Merrill Lynch-Larry Cole Mr.Cole reviewed the investment managers returns for the quarter providing the total fund return at$452,166 or 6.5%. He noted that the stock market had a strong come back this quarter. The fund ranked in the top thirty- sixth percent compared to the public balanced public fund sample. Mr. Cole identified that the portfolio diversification as the source of the strong performance this quarter. Mr. Cole spoke briefly on the aspects of international investing signifying the volatility of the international market. If the market does not move in tandem with the domestic market,i.e.the lower the correlation between the domestic and international market,there is more potential benefit that could be arrived although with the international market,you do have a riskier asset class. 7. ADMINISTRATIVE REPORT-Mark A.Malatak,Plan Administrator Mr. Malatak reported that Colonial Bank continues to be problematic. The first issue addresses the Federal Withholding reports, 1099R,sent to the retirees. The forms reported all income as taxable;however,there is a portion of income that was nontaxable. The bank has reviewed the accounts and will reissue the corrected 1099R. The second issue addresses a tax payment during the second quarter of the year. The tax payment was made from another customer's account. We will reimburse the monies paid. Additionally,there has been an increase in annual pension audit fees as the fund values could not be identified as of September 30,2001. Colonial Bank did not properly record transactions throughout the year.However,Mr. Malatak advised there is no missing cash or assets. This has caused additional work for the auditors which would justify the increase in audit costs. Mr. Cypen suggested that the all monies due be withheld until such time that the total damage costs are determined. Mr.Benton moved to authorize reimbursement for the tax bill which was seconded by Mrs.Ross Agosta. The vote was in favor with Mr.Charles voting in the negative. Mr.Trumble moved to table the payment of management fees until such time that the audit costs are determined. Mrs.Ross Agosta seconded the motion which was unanimous in favor. 9. ADJOURNMENT The February 14,2002 regular meeting of the General Employee Pension Board was adjourned at 9:30 A.M.with a motio ro Mr.Benton seconded by Mrs.Ross Agosta. Al Davis,Chairman Tom Benton, Secretary Lisa Keeley,Recording ecretary .........................•-------....--------------------------------..... .................................................................................................................. WARRANT - G No. 02 - 1 REVISED 02/13/02 For payment from the Village Pension Fund for General Employee's in the Village of Miami Shores,Florida. To Chair and Administrator,or such other officers,who from time to time are duly designated and authorized by the Board of Trustees of said Fund,to sign checks,drafts or orders for the payment of money;You are hereby authorized by the Board of Trustees of the Miami Shores Village Pension Fund for General Employees in Miami Shores Village to pay the amounts listed below for services rendered to the said Board of Trustees,and to pay the persons named below,hereby certified by the Board of Trustees as being on the Pension list of said Board at its meeting held on 2/14/02 ,pensions from 10/01/01 to 01/31/02 inclusive,or for the period of time opposite the name of said persons. Name(Pensions,Benefits,Services Provided or Obligations) Amount Reimburse Miami Shores Village for: Miscellaneous Expenses: Lon Worth Crow-Fiduciary Policy and Surety Bond $4,631.40 FPPTA Conference and Certification Registration Fee W.Reiner $ 975.00 Federal Express Delivery $ 9.82 Reimbursement to W.Reiner for FPPTA conference expenses $ 195.62 Rachlin,Cohen&Holtz-Special audit of pension fund $2,215.00 Federal Express Delivery $ 7.42 FPPTA Conference and Certification Registration Fee W.Reiner $ 325.00 FPPTA Hotel&Per Diem costs-W.Reiner $ 545.00 Reimbursement to W.Reiner for FPPTA conference expenses $ 123.52 Attorney's fees Cypen&Cypen for period Sept thru Dec $ 1,414.83 Actuary fees Gabriel,Roeder,Smith Balance of annual service fee $5,107.00 TOTAL MISCELLANEOUS EXPENSES $15,101.09 Less overpayment of last reimbursement from Colonial Bank ( 24.58) TOTAL REIMBURSEMENT TO MIAMI SHORES VILLAGE 15 076.51 Authorize payment to Davis,Hamilton,Jackson&Associates Quarterly management fees for the period 01/01/02-03/31/02 $4,502.86 Authorize payment to The Boston Company Quarterly management fees for the period 10/01/01- 12/31/01 $ 5,577.00 Authorize payment to Merrill Lynch Consulting Services Quarterly consulting services for the period 10/01/01- 12/31/01 $ 3,116.86 Authorize payment to Salem Trust Company Pro-rated Quarterly fee for period ending 12/31/01 $ 264.12 Authorize refund of pension contribution of employee,Ernst Louis $ 3,468.23 Authorize payment to Cypen&Cypen Attorney's fees for period ending 01/01/02 to 01/31/02 $ 50.68 Dated this 14`b day of February,2002 Approved by: Al Davis,Chairman As Chair of the Board of Trustees Village Pension Fund for General Employee's in the Village of Miami Shores,Florida .................................................................................................................................................................