MIAMI SHORES GE-MINUTES MEETING-9-22-2020.edited1
MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD MEETING
The Miami Shores Village General Employee Pension Board and Police Retirement Board
jointly met on September 22, 2020, via web conference as follows: Please join my
meeting from your computer, tablet, or smartphone. https://global.gotomeeting.com/join/995836349
You can also dial in using your phone. United States (Toll Free): 1 877 309 2073 United States: +1
(646) 749-3129 Access Code: 995-836-349.
The General Employee Pension Board meeting called to order at 8:23 AM. The following
individuals were present for the meeting:
PRESENT: ABSENT:
Tom Benton, Pro-Tem Chairman
Angie Dorney, Trustee
Averill Dorsett, Trustee
Stephen K. Loffredo, Trustee
Thomas J. Longman, Trustee
Jim McCoy, Trustee
Bob Williamson, Trustee
Also Present:
Dina Lerner & Melissa Moskovitz, Gabriel Roeder Smith (GRS), Adam Levinson, Klausner,
Kaufman Jensen & Levinson, Dave West, AndCo Consulting, Doug Falcon & Yolanda Shea,
FHA-TPA Benefit Administrators, Inc.
APPROVAL OF MINUTES
The Pro-Tem Chairman asked if anyone had any questions regarding the meeting's minutes on
June 15, 2020. There being no questions,
A motion made by Trustee Dorney seconded by Trustee Dorsett to approve the
meeting's minutes held on June 15, 2020, motion passed unanimously passed.
PUBLIC COMMENTS
None
APPROVAL OF WARRANT – 2020-0013
The Pro-Tem Chairman asked if there were any questions regarding Warrant 2020-0013 for
$2,275.00. Trustee Williamson asked if this warrant was included in the actual expense
illustration discussed later on in the meeting. Mr. Falcon responded that this warrant is not
included in the actual expense illustration sheet, as it had not been approved when he populated
the expense spreadsheet. There being no further questions,
A motion made by Trustee Williamson seconded Trustee McCoy to approve Warrant
2020-0013 in the amount of $2,275.00, motion passed unanimously.
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RATIFY PAYMENT OF WARRANTS – 2020-0009-2020-0012
The Pro-Tem Chairman asked if there were any questions. The Pro-Tem Chairman asked for the
reason there were two separate warrants for Gabriel Roeder Smith (GRS). Mr. Falcon responded
that because GRS billed the two invoices separately, Warrant 2020-0009 billed in July, and the
invoice listed on Warrant 2020-0012 was billed in September. Trustee Williamson asked if these
Warrants were included in the actual expense illustration. Mr. Falcon responded those warrants
are included in the actual expense illustration sheet.
The Pro-Tem Chairman asked Mr. Levinson if the Board had to approve each warrant separately,
or could they be approved collectively. Mr. Levinson advised the Board that the contracts could
be approved individually or collectively at the Board's discretion; the Board moved to approve
the warrants collectively.
A motion made by Trustee Williamson seconded Trustee Dorney to approve Warrant
2020-0009($4,266.92), Warrant 2020-0010($5,463.64), Warrant 2020-
0011($3,947.48) & Warrant 2020-0012($5,105.00) motion passed unanimously.
INVESTMENT REPORT
Trustee Williamson thanked Mr. West for illustrating the numbers in the fashion he did. It
helped him see the results and compare the pension's financial allocation.
Mr. West advised that Board that before he discusses the investment results, he will be
making a rebalancing recommendation.
He discussed the Miami Shores Village General Employee’s Pension Fund Investment
Performance Review Period Ending August 31, 2020. Mr. West emphasized the
outperformance of value stocks, which have reached historical positive results, including
extraordinary returns for the fixed and equity managers. He reported the fiscal year to
date returns as positive.
Because of these very positive results, he recommends rebalancing by selling $690,000
Wells Fargo Growth Fund Class R6, transferring the proceeds to the Integrity account, to
maintain policy targets.
Trustee Williamson asked Mr. West if there were any transaction fees associated with the
rebalancing. Mr. West responded there are no transaction fees associated with the
transfer of money to Integrity other than minor trading costs.
Trustee Williamson asked Mr. West if the rebalancing process is an action AndCo can take,
or does the Board have to get involved. Mr. West responded that AndCo could only make
recommendations. Any changes to the portfolio require Board approval.
Trustee Longman asked Mr. West what the percentage is for equity income. Mr. West
responded the policy outer limit is 70% for all equity.
A motion made by Trustee Loffreddo seconded by Trustee Longman to accept the
investment consultant's recommendation to rebalance the domestic equity policy
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target, which would entail selling $690,000 Wells Fargo Growth and transferring
all proceeds to the Integrity Fixed Income motion, passed unanimously.
The next item Mr. West discussed was the Miami Shores Village General Employee’s
Pension Fund Investment Performance Review Period Ending June 30th, 2020. He
reported that the June 30th returns were much lower than the YTD through August.
The next item Mr. West discussed in detail was the changes affecting the investment
target allocations.
Mr. West presented in detail the proposed changes to Miami Shores Village General
Employees’ Pension Fund Investment Policy Statement.
II. Target Allocations –
III. Investment Performance Objectives
A. Total Portfolio Performance, #1
C. Broad Market Fixed Income Performance
D. Treasury Inflation Protection Securities (TIPS) Non-Core Fixed Income
E. Real Estate Performance
IV. Investment Guidelines
A. Authorized Investments, #1, #2 & #5
D. Absolute Restrictions, #2, #3 & #4
IX. Review And Amendments
Mr. West advised the Board that the Investment Policy Statement's (“IPS”) proposed
changes were reviewed by Mr. Levinson and asked Mr. Levinson if he had any comments
to share with the Board. Mr. Levinson confirmed that he had reviewed the changes and
reminded the Board that this is a good time to ask any questions.
Mr. West advised the Board that the proposed IPS will become effective September 1st.
The document has to be posted by the Village, and after 30 days, the document becomes
effective as of September 1, 2020.
A motion made by Trustee Loffredo seconded by Trustee Dorsett to accept the
changes as recommended by the investment consultant to the Miami Shores
Village General Employees' Pension Fund Investment Policy Statement effective
September 1, 2020, motion passed unanimously.
ATTORNEY REPORT
Mr. Levinson advised the Board that the Governor extended the Executive Order regarding
meetings via web conference. There is still no information on whether or not the
Governor will extend the web conference meetings past 9/30/2020. Should the Executive
Order not be extended, Mr. Levinson advised the Board that they only need three
Trustees for a quorum. The Board may want to consider having three Trustees present for
the meeting, and the remaining Trustees attend via web conference. He pointed out that
he travels outside the State to attend pension meetings. If the Board feels more
comfortable having him or other service providers participate via web conference the
Board can make that request.
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The Pro-Tem Chairman reported that three Trustees already are working on-site at the
Village. If the Trustees agree, those Trustees could be physically present at the meeting,
and the remaining Trustee could join via web conference. Trustee Dorsett expressed that
in view of the present COVID situation, she would like to attend via Web Conference
This concluded the Mr. Levinson’s report.
ADMINISTRATOR REPORT
Mr. Falcon congratulated Trustee McCoy on entering the DROP effective 9/1/2020; Mr.
Oliver's DROP retirement and DROP account balance has been processed and distributed;
Ms. Herbert, a dual member who is in the Police Pension Plan and was in the General
Employee pension plan also finalized the DROP entry process. On a sad note, Ella Mae
Walker passed away. Lastly, He reported processing a refund of contribution to a
terminated employee.
The next item Mr. Falcon discussed was that Trustee Longman had contacted him after
the last meeting expressing some reluctance to fully accept certain assumptions. He may
want to further discuss this matter with the Board.
Trustee Longman advised that Board that he brought up the salary increases. He thinks it
should be brought down from 5% to 4% based on the reported US economic data. He
believes this would bring significant savings to the Village.
Ms. Moskovitz responded the salary scale assumption has a very minimal effect on the
required contribution. She explained that in looking at salary changes over a long period,
it does show several years of little or no growth, followed by higher than expected growth
in subsequent years. She recommends not lowering it too much; also, keep in mind that
the report GRS submitted the report to Tallahassee.
Ms. Moskovitz offered the Board to revisit this item. The Pro-Tem Chairman asked Ms.
Moskovitz to work with the Village to obtain the actual data she needs and put it on the
next meeting agenda.
A motion made by Trustee Longman seconded Trustee Loffredo to authorize the
actuary GRS to work with the Villages' representative to obtain additional
information about the salary and present the results as discussed motion passed
unanimously.
This concluded the administrator’s report.
ADJOURNMENT
There being no further business,
A motion made, seconded, and passed unanimously to adjourn the meeting at
9:53 AM.
Approved: Meeting 10/27/2020