MIAMI SHORES POLICE - MINUTES MEETING-9-24-2019rev-PART I1
MIAMI SHORES VILLAGE
POLICE OFFICERS’ RETIREMENT SYSTEM BOARD MEETING
PART I
The Miami Shores Village General Employee Pension Board and Police Retirement Board
jointly met on Tuesday, September 24, 2019, at the C. Lawton McCall Community
Center. The Police Officer Pension Board meeting called to order at 8:20 AM. The
following individuals were present for the meeting:
PRESENT: ABSENT:
Alice Burch, Chairwoman Jonathan Meltz, Trustee
John Bolton, Secretary
Shmueal Mauda, Trustee
Christopher McDonald, Trustee
Also present were Pension Plan Administrators, Doug Falcon and Yolanda Shea FHA-TPA
Benefit Administrators, Inc., Karen Russo, Salem Trust, Dina Lerner and Melissa
Moskovitz, Gabriel Roeder Smith (GRS), Dave West, AndCo Consulting, and Pension
Attorney Adam Levinson, Klausner Kaufman Jensen & Levinson.
TRUSTEES PRESENT: TRUSTEES NOT PRESENT
Alice Burch Jonathan Meltz
John Bolton
Christopher McDonald
Shmueal Mauda
APPROVAL OF MINUTES
The Chairman asked if anyone had any questions regarding the minutes of the meeting April 30, 2019.
Trustee Bolton pointed out that at the last meeting he suggested to Mr. Koop to present to the Board a
letter detailing his specific questions in order for the Board to address them; he asked the
administrator if they had received any correspondence from Mr. Koop, the administrator confirmed they
have not, therefore Trustee Bolton considered that item to be closed. There being no further
questions,
A motion made by Trustee Bolton seconded by Trustee Mauda to approve the minutes of
the meeting held April 30, 2019 motion passed unanimously.
PUBLIC COMMENTS
None
CUSTODIAN – Karen Russo – Salem Trust
Ms. Russo discussed the TMI Trust Company announcement of merger dated April 1, 2019 regarding Combined
Synergies of TMI Trust Company and Salem Trust Company. She confirmed that there are no material changes to
operations. The relationship Manager will not change, the account numbers will remain the same, the account
access will not change, there will be no impact on the client service and Salem’s services will not change. What
does change is clients will now have access to the combined strengths of both organizations. TMI has deep
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corporate trust expertise as a bond Trustee and escrow agent, while Salem is the recognized leader of custody
services to government retirement plans and institutional clients. All the fees will remain the same.
Mr. West reported that from AndCo’s respective the transition has been very transparent and are very comfortable
with the acquisition’s transition.
The next item Ms. Russo discussed is how the Money Market Sweep Vehicle works. She highlighted some of the
small changes, which do not affect the current process in place. Mr. West advised the Board that he is not
recommending any change to the current fund that the plan is participating in. The purpose of these moneys is to
provide for absolute liquidity. These moneys are not being invested in these funds to generate total returns; the
return advantage is secondary benefit primary focus of the fund selection is on safety principle dollar in dollar out.
She updated the Board on the Quarterly Salem Trust Service Report results.
The next item she discussed was the existing letter of direction on file regarding the monies directed to Insight
investment, which is a manager no longer active on the plan. The letter of direction needs to be amended to
reflect funds be sent to Integrity as per Mr. West’s recommendation. Mr. West pointed out the one amendment to
the standing letter of direction would be to reassign that allocation to Integrity Fixed Income which is the fund
that replaced Insight investment.
A motion made by Trustee Bolton seconded by Trustee McDonald to authorize the Chairman to sign
the standing letter of direction addressed to Salem Trust as stated above motion passed
unanimously.
The next item Ms. Russo discussed is the Mutual Funds. Ms. Russo advised they have mutual funds that are in a
mutual fund account, the suggestion is to move all your mutual funds in to the receipts disbursement account and
close the mutual fund account. This way all the mutual funds will be in one account the receipts and
disbursement account. By consolidating these accounts, the Plan would also reduce the annual fee by $500. Mr.
West has been working with Ms. Russo discussing operational efficiencies while they were doing revisions this was
identified and is an opportunity to save $500. If the Board agrees to move forward, he will work with Ms. Russo
to move forward accordingly. Mr. Levinson asked if there were any disadvantages consolidating these account,
Mr. West responded that moving in this direction would make the process more fluid and sees no disadvantage to
move in this direction.
A motion made by Trustee Bolton seconded by Trustee Mauda to consolidate the mutual fund
account with the receipts and disbursement account as state above motion passed unanimously.
Mr. Levinson advised the Board that for the next meeting he will be bringing a memo regarding identity theft and
cyber-crime as it has been an increasing problem affecting all sorts of businesses small, large, cities, etc. He
asked Ms. Russo what type of cyber liability insurance does Salem Trust have. Ms. Russo confirmed Salem Trust
does have cyber coverage and would be happy to provide a copy of the policy and terms. Ms. Russo went over
the internal process they have in place to ensure the information received at Salem all the security checks are
performed prior to releasing funds and or sensitive information.
This concluded Ms. Russo’s report.
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APPROVAL OF WARRANT
The Chairman asked if anyone had any questions regarding Warrant 2019-0010 in the amount of $3,775.00,
there being no questions,
A motion made by Trustee McDonald seconded by Trustee Bolton to approve Warrant 2019-0010
in the amount of $3,775.00 motion passed unanimously.
RATIFY PAYMENT OF WARRANTS
The Chairman asked if anyone had questions regarding Warrant 2019-0007 in the amount of
$22,884.57 the Board questioned the GRS invoice pertaining the GASB reports, the Trustees asked
whether the pension plan pays for the fees associated with the GASB report or does the village pay for
those fees. Mr. Falcon confirmed these fees have always paid for the fees associated with the GASB67
report. Mr. Levinson pointed out that GASB 67 is a Board required report and therefore, typically the
Board pays for the fees associated with the report and recommends paying for it if this is the way it
has been done historically. In lieu of this information the following motion was made,
A motion made by Trustee Bolton seconded by Trustee McDonald to approve Warrant
2019-0005 in the amount of $22,884.57 motion passed unanimously.
The Chairman asked if anyone had questions regarding Warrant 2019-0008 in the amount of
$5,834.95 there being no questions,
A motion made by Trustee Bolton seconded by Trustee Mauda to approve Warrant 2019-
0008 in the amount of $5,834.95 motion passed unanimously.
The Chairman asked if anyone had questions regarding Warrant 2019-0009 in the amount of
$12,754.78 there being no questions,
A motion made by Trustee McDonald seconded by Trustee Mauda to approve Warrant
2019-0009 in the amount of $12,754.78 motion passed unanimously.
The Chairman asked if anyone had questions regarding Warrant 2019-0011 in the amount of
$5,690.33, the Chairman asked who Mellon is, Mr. Falcon advised that Mellon took over the Boston
Company which is one of the investment managers you had, there being no further questions,
A motion made by Trustee Bolton seconded by Trustee Mauda to approve Warrant 2019-
0011 in the amount of $5,690.33 motion passed unanimously.
INVESTMENT
Mr. West discussed the Miami Shores Village Police Officers’ Pension Fund Investment
Performance Review Ending June 30, 2019. He reported that it is highly unlikely that the
actuarial required rate of return will be achieved this year.
Below some of the market highlights:
Broad asset class returns were positive during the 2nd quarter of 2019 with both equity and
fixed income indices extending their year-to-date gains. Us stocks outperformed international
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stocks during a very volatile quarter. Equity indices rose to start the period as progress in
global trade negotiations outweighed signs of weakness in macroeconomic data.
Similar to US markets, international markets were volatile during the 2nd quarter as investors
reacted to mixed economic data, heightened geopolitical uncertainty, particularly around the
outlook for global trade and Brexit, and increased accommodation in central bank policy with
the European Central Bank and People’s Bank of China pledging additional stimulus if needed.
Fixed income returns were in line with equities during the 2nd quarter. The broad market
Bloomberg Barclays Aggregate Index returned 3.1% as a more dovish stance from the Fed and
other global central banks pushed interest rates lower across the US Treasury Yield Curve.
US equity index returns were modestly positive across the style and capitalization spectrum for
the 2nd quarter.
During the quarter, higher market cap stocks outperformed lower market cap stocks across the
style spectrum with the only exception being the outperformance of mid cap growth stocks
relative to large cap growth stocks.
Growth indices outperformed value indices across the market cap spectrum during the 2nd
quarter. Growth stocks have outperformed value in nine of the last ten quarters.
Sector performance was broadly positive across large cap sectors for the 2nd quarter. There
were gains for ten out of eleven sectors within the Russell 1000 Index during the period with
four sectors outpacing the return of the Index.
Quarterly results for small cap sectors were generally worse than their large capitalization
counterparts with only two of eleven sectors (industries and utilities) outperforming their
corresponding large cap equivalents.
After reviewing the detail results of the Plan, Mr. West advised the Board that he would like to make an asset
recommendation. The fund is 8% overweight in the growth manager, Wells Fargo and a little underweight by just
under 3% in the value manager, Boston Company (Mellon). He thinks is a good time to take the overweight off
the table take the profits move back to the center line and have an equal allocation to the growth manager and
equal allocation going to the value manager. His recommendation is to rebalance the domestic equities back to
policy targets.
A motion made by Trustee Bolton seconded by Trustee McDonald to accept the investment
consultant’s recommendation as stated above motion passed unanimously.
This concluded the investment report.
ATTORNEY REPORT
Mr. Levinson advised the Board he did not have a report but for the next meeting he will be discussing
as previously stated cyber-coverage.
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ADMINISTRATOR REPORT
Mr. Falcon advised the Board that he distributed a memorandum regarding members who exit the DROP and will
discuss in more detail in Part II of the next meeting.
There being no further business,
A motion made, seconded and passed unanimously to adjourn the meeting at
9:32 AM.
Approved: Minutes approved at the 2/10/2020 meeting