09-22-2004 Special Meeting MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD SPECIAL MEETING
SEPTEMBER 22, 2004
1. CALL TO ORDER
The special meeting of the Miami Shores Village General Employee Pension Board was held on
Wednesday, September 22, 2004 in the Conference Room of the Village Hall. The meeting was
called to order at 8:00 A.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members
present:
Mayor Jim McCoy, Chairman
Mary Ross Agosta Thomas J. Benton
John Rumble Joseph Charles
Wendy Reiner, via telephone
Also Present: Steve Cypen, Pension Board Attorney
Mark A. Malatak,Plan Administrator
Lisa Keeley, Recording Secretary
3. DISCUSSION AND POSSIBLE ACTION REGARDING THE RETENTION OF
CONSULTANT, MERRILL LYNCH
Mr. Malatak explained that this special meeting was requested by several Board members who have
expressed some recent concerns regarding the services provided by Merrill Lynch. Mr. Malatak gave a
brief overview of the consulting services provided by Merrill Lynch relating to the overall operations of
the investment component of the plan. In addition, Merrill Lynch handles some of the trades through
their brokerage firm which is disclosed quarterly through an offset against the quarterly fees.
The question proposed is whether or not Merrill Lynch, through Jeff Swanson and his associates, is
providing the proper and necessary recommendations to the Board. Mr. Cypen gave a brief overview
regarding the two consulting styles between"large"houses and independent firms.
Mary Ross Agosta expressed her own concerns regarding the relationship between Merrill Lynch and the
investment managers especially the neutrality that does not seem to exist in the relationship. Additionally,
she spoke of concerns regarding the advice, or lack there of, from Merrill Lynch. Mr. Benton spoke of
the budgetary concerns due to the possible strategy recommended by Merrill Lynch. Additionally, he
added that Mr. Swanson was not amenable to questions brought to his attention.
Discussion regarding a possible change in the consulting group at Merrill Lynch ensued. Mr. Cypen
broke down the current four person team as Jeff Swanson, Melissa (Jeff's sister) who is married to Mike
Callaway, the head of the team, and Larry Cole. None of the Board members knew of this "family"
relationship.
General Employee Special Meeting September 22,2004 Page 2
Mr. McCoy noted the concerns expressed by the Board additionally noting the stagnant presentations of
and attention deficit to the Police plan. He provided two options in order to proceed. The first option
would be to retain Merrill Lynch, requesting another team assignment. The second would be to explore
other consulting firms. Mr. Charles noted that over the years, the plan has paid excessive annual fees that
do not seem justified by the quality of service received.
Wendy Reiner joined the meeting via telephone at this time.
A motion instructing staff to make inquires into the possibility of changing investment consultants
(performance monitors)was made by Mr. Benton. The motion was seconded by Mrs. Ross Agosta. The
vote was unanimous in favor.
Mr. Cypen provided independent consultants listing GRS Asset Consultants, Burgess Chambers and
Joseph Bogdhan. Mr. Benton noted that it was not the size of the company, rather it is the service
provided. Mr. Cypen also suggested contacting Smith Barney as a comparable company to Merrill
Lynch.
4. ADJOURNMENT
The September 22, 2004 special meeting of the General Employee Pension Board was adjourned at 8:45
A.M.
/N
J McCoy, Chairman
Lisa Keeley, Recording Secretary