12-06-1984 Regular Meeting12/6/84
Miami Shores Village
PENSION BOARD MEETING
December 6, 1984
A meeting of the Miami Shores Pension Board was held on Thursday,
December 6, 1984, 8:00 a.m., at the Village Hall, with the following Board
members in attendance:
Mayor Kevin O'Connor
Councilwoman Elspeth Jensen
Mr. William H. Walker, III
Mr. Sam Michels
Village Manager Les Forney
Police Chief John Fletcher
Village Clerk Ann Vigneron
Absent: None
Also present:
Mr. William F. Fann, Village Attorney, who
arrived after he was called to attend.
Mr. Richard E. Fishman, Merrill Lynch, etc.
Mr. Gerald F. Bott, Kidder, Peabody & Co.
(1) APPROVAL OF MINUTES.
Mrs. Jensen moved that the minutes of 9/17/84 be approved
as written. The motion was seconded by Mr. Walker and
passed unanimously.
Mr. Michels wanted to speak on the discussion that took
place at the last meeting and commented on the remarks
made by Mr. Yearwood of NCNB in regard to their relationship
with the Wyatt Company. Mr. Michels continued that he
feels we were deceived by NCNB in that regard, as well as,
in regard to valuation of stocks, the loss we took on blue
chip stocks and that the information on their statements
was misleading and is not acceptable.
Mr. Walker stated that this is Mr. Michels' personal opinion
only. Other members of the Board concurred.
In other discussion it was confirmed to John Fletcher that
this is not a replacement for NCNB.
Mrs. Jensen wanted to have a review of why we went to this
bank in the first place. She felt we were doing alright
where we were and wanted to know what the indication was
for changing, which occurred before she came on the Board.
Mr. Forney stated this started with some questions Mr. Michels
raised as to performance with Barnett. As a result we have
taken several actions. He requested proposals on other
actuaries and should have them by the January meeting for
the Board to interview and select a different actuary if it
so desires.
12/6/84
-2-
Mr. Forney continued that the other aspect of this is
that when we changed from Barnett Bank to NCNB we may not
have done it for all the right reasons and that is
because the Board simply doesn't have the expertise or
time to evaluate the program. We made the change because
we felt Barnett was not providing adequate return. He
agreed with Mr. Michels that the report we got from our
actuary was not very good and that we should not have
asked our actuary to make it. In looking back on it,
actuaries are probably not the ones to ask.
Mr. Forney stated he was approached by Mr. Potter of
Thompson -McKinnon of Ft. Lauderdale, who offered to provide
an independent evaluation of our pension fund at no cost to
the plan with payment for their services coming out of
soft dollars, that is, commissions on transactions which
are paid now anyway. By directing our money manager to
make purchases through his office they would accrue the
soft dollars from our account for which they would make an
evaluation of the plan's performance. The proposals at
hand offer this type of service.
A five minute recess was called.
(2) THOMPSON-McKINNON proposal - Mr. Barry Potter could not
be present.
(3) MERRILL LYNCH proposal - Mr. Richard Fishman presented
their proposal for investment performance analysis
of the Pension Plan with a hard dollar fee of
$4,000.00 to be paid by the Village.
(4) KIDDER, PEABODY & CO. proposal - presented by Mr. Jerry
Bott. Their fee was $5,000 in hard dollars and
$10,000 in soft dollars, if the account makes that much.
Discussion followed as to the services offered. Mr. Walker suggested
that the Board make a recommendation to Council as to quarterly
reports or whatever is appropriate. He further stated that he would
like time to review the material presented.
Mrs. Jensen stated she would like to see the year end reports.
John Fletcher stated that he felt we should have an advisory service.
Concerning responsibility and expertise of the Board he suggested
that the Council review the composition of members with regard to
ex -officio members and other appointments.
Ann Vigneron questioned if the NCNB would accept this arrangement
and Mr. Forney stated he had already advised them of the proposal.
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APPROVED:
-3-
12/6/84
Mr. Forney advised the Board that the year end reports
should be available about the third week of January
and he suggested that we hold the next meeting the
first week in January.
Mayor O'Connor summed up the action: get a date for
a meeting the first week of January and get information
on the Florida Retirement System and the Hialeah plan.
It was requested that the Village Attorney be invited
to attend all Board meetings.
The meeting adjourned at 10:12 a.m.
Kevin O'Connor
Mayor
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2 ��
Village Clerk
Pension Secretary