02-20-2003 Regular Meeting MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
FEBRUARY 20, 2003
1. CALL TO ORDER
The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday,
February 20,2003 in the Conference Room of the Village Hall. The meeting was called to order at 4:10 P.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Present Absent
Thomas J.Benton Ronald Platt Al Davis
Joseph Charles Richard Trumble Wendy Reiner Mary Ross Agosta
Also Present:
Mark A.Malatak,Plan Administrator Janna K.Woods,Davis,Hamilton,Jackson
Lisa Keeley,Recording Secretary Carl O'Connell&Ryan Fitzpatrick,The Boston Company
Jeff Swanson,Merrill Lynch
EMERGENCY ITEM—APPOINTMENT OF ACTING CHAIRMAN
Mr.Benton moved to appointment Mr.Charles as Acting Chairman for today's meeting. Mr.Trumble seconded
the motion. The motion passed with three in favor—Mr.Trumble,Mr.Benton,Mr.Platt and one opposed—Mr.
Charles.
Mr.Malatak introduced Mr. Platt as the newly appointed General Employees' Board member.
3. APPROVAL OF PAYMENT WARRANT
Mr.Malatak reviewed the expenditures for Mr.Platt's benefit. He reviewed the new policies from the actuary,
Gabriel,Roeder,Smith,due to the increase in fee structures going from a flat rate to an hourly rate. Mr.Malatak
asked for direction regarding the increased cost for actuarial services. The Board asked for a comparison of other
similar sized cities. Additionally, clarification on the pricing structure was sought as well as preference for a
fixed cost rather than an hourly rate. It was proposed that other actuaries be found. Mr. Trumble moved for
approval of Payment Warrant G No.03-2 as submitted with a second from Mr.Benton. The motion was passed
unanimously.
6. ADMINISTRATIVE REPORT—Mark Malatak,Plan Administrator
A. Mr.Malatak indicated the audited financial reports for the Pension Plan are available for review.
B. Mr.Malatak provided a brief summary of the actuarial report for the year ending September 30,
2001. He indicated a possible increase in contributions for the General Fund as a result of the
losses over the last two years.
C. Mr. Malatak indicated that there would be a special Board meeting for a proposed budget
detailing administrative costs associated with the Pension Fund.
General Employee Pension Board February 20,2003 Page 2
5C. INVESTMENT GUIDELINE UPDATE—Merrill Lynch—Jeff Swanson
Mr. Swanson reviewed the investment policy guidelines to clarify the benchmarks used for the investment
managers. The primary objective is an asset allocation of 60/40 equity/fixed income allocation of the Russell
1000 and Merrill Lynch Government/Corporate. Each manager has the same targets compared to the respective
equity investment style.
Mr. Trumble moved to adopt the investment policy as submitted subject to Mr. Cypen's final approval. Mr.
Benton seconded the motion which passed unanimously.
4B. INVESTMENT MANAGER REPORT-Davis,Hamilton,Jackson&Associates-Janna Woods
Ms. Woods indicated that the quarter provided conservative asset allocation diversifying the portfolios. She
reported that the fund's total market value as of December 31,2002 was$3,236,425. The total equity return for
the quarter was 6.7%compared to the Russell 1000 Growth of 7.1%. As intermediate bond managers,the 1.7%
fixed income return was equal to the Lehman Intermediate US Government/Corporate return.
Mr. Benton left at this time.
4A. INVESTMENT MANAGER REPORT-The Boston Company-Carl O'Connell&Ryan Fitzpatrick
Mr.O'Connell reviewed the performance of the fund with a total market value of$3,181,804 as of December 31,
2002.The total return for the period was 6.6%;the equity earnings of 10.5%beat the Russell 1000 Value return
of 9.2%and the fixed income return of 1.4%was just under the Merrill Lynch Government/Corporate return of
1.6%.
5A&B. COMPLIANCY DISCUSSION-Merrill Lynch—Jeff Swanson
Mr. Swanson indicated that the current trend is a significant bear market, but the fund has tremendous
diversification to offset the trend. He reviewed market conditions and the impact on the investment manager's
returns for the quarter ending December 31, 2002. The total fund earned 5.3%ranking in the top 11%of the
public balanced fund sample.
7. OTHER BUSINESS
There was no other business.
8. ADJOURNMENT
The February 20,2003 regular meeting of the General Employee Pension Board was adjourned at 5:35 PM with a
motion from Mr.Trumble seconded by Mr.Platt unanimous in favor.
Josepq Charles,Acting Chairman Lisa Keeley,Recording Secretary
f A
WARRANT - G No. 03 - 2
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 02/20/03 ,pensions from 08/01/02 to 02/20/03 inclusive,or for the period of time opposite the name of
said persons.
Name(Pensions,Benefits,Services Provided or Obligations) Amount
Authorize payment to Davis,Hamilton,Jackson&Associates
Quarterly management fees for the period 01/01/03—03/31/03 $4,063.56
Authorize payment to The Boston Company
Quarterly management fees for the period 10/01/02- 12/31/02 $4,772.70
Authorize payment to Merrill Lynch Consulting Services
Quarterly consulting services for the period 10/01/02— 12/31/02 $3,544.55
Authorize payment to Salem Trust Company
Quarterly fee for period 10/01/02- 12/31/02 $ 960.59
Authorize payment to Cypen&Cypen
Monthly fee for period December 2002 $ 450.70
Authorize payment to Summit Global Partners of Florida,Inc
Third Extension for Commercial Surety Bond
Payable at 40%of Cost($473.00 x 40%) $ 189.20
Authorize payment to Summit Global Partners of Florida,Inc
Annual renewal of Commercial Surety Bond
Payable at 40%of Cost($10,796.00 x 40%) $4,318.40
Authorize payment to FPPTA
Annual Membership Renewal $ 350.00
Lump Sum Distribution of pension contribution—Daniel Wilson $5,288.74
Dated this 20`h day of February,2003 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