07-11-1985 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING
July 11, 1985
A meeting of the Miami Shores Village Pension Board was held on
Thursday, July 11, 1985, at 8:00 a.m., in Village Hall, with the following
in attendance:
Pension Bd. Members: Mayor Karen Kirby
Dr. Robert Butler, Jr., Councilman
Sam Michels, Citizens"Rep.
William Walker, III, Citizens' Rep.
John Fletcher, Chief of Police
Les Forney, Village Manager
Absent: John Moore, Employee Rep.
Also Present:
William F. Fann, Jr., Village Attorney
Gail Macdonald, Finance Director/Pension Admin.
Gerald Bott & Karen Cole, of Kidder, Peabody & Co.
Terry R. Wood, President, Erisa Compliance Systems
1. Equity Manager Search Report - Gerald Bott & Karen Cole.
The following firms were contacted and specific information requested
regarding their equity management qualifications:
- Ashland Management Inc.
- Eikhoff & Peipers, Inc.
- First Union Bank
- rcM
- Investment Counsel
- United Investment Counsel
Mr. Bott distributed to Board members a notebook which analyzed the
above companies and their responses (copy on file), and discussion
ensued.
A motion was made by Mr. Walker that the following four firms be
interviewed:
- Ashland Management
- Eikhoff & Peipers
- ICM
- ICC
under date of August 6, 1985. The motion was seconded by Dr, Butler,
and carried.
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2. Approval of Minutes.
Mayor Kirby requested the Board to approve the Minutes of the 5/23/85
meeting, pending the arrival of ECS President, Terry Wood from Jackson-
ville. Chief Fletcher moved that the Minutes of the May 23, 1985 Pension
Board meeting be approved as written. Mr. Michels seconded and the
motion was unanimously carried.
Recess declared at 9:00 a.m. by Mayor Kirby pending the arrival of Mr. Wood.
Reconvened - 30 minutes later.
3. Orientation for New Trustees.
Mr. Wood reviewed the responsibilities of Trustees as set forth in the
Florida Statutes Chapter 112. He defined the fiduciary responsibilities/
liabilities of Plan Trustees and cited the fact that the Law recommends
and provides funding for the hiring of professionals (actuary, Attorney,
etc.) to provide professional advice in order to avoid personal liability
by Board members.
4. Presentation by ECS of Annual Actuarial Evaluation.
Mr. Wood gave Board members (copy on file) copies of the first draft of
the ECS Actuarial Evaluation of Miami Shores Village. He noted one
change made: i.e., change made in actuarial assumption to relieve the
City of liability for sex discrimination due to failure to use the
Unisex Table.
Questions were raised regarding a higher payroll increase in the Police
Department as opposed to the general employees. Dr. Butler requested
to see corrected figures. (It was subsequently determined that because
of the Union negotions, the Police Department COLA increase for October
1983 was delayed until February, 1984. Since another COLA was applied
in October 1984, the salary figures for the calendar year 1984 were
disproportionately high.)
Mr. Walker made a motion to approve the recommended funding of the
Pension Plan by the City for $184,398 for fiscal year 1986. The motion
was seconded by Chief Fletcher and unanimously carried. Subsequent
discussion brought forth a recommendation by Mr. Wood that 9.2% be
kept as a constant percent of payroll.
Les Forney moved that we modify the previous motion to read 9.2% of the
covered payroll in lieu of $184,398. This motion was seconded by
Mr. Walker, and carried.
Mr. Forney then moved that we accept the Actuarial Evaluation with adjust-
ments/corrections to be furnished by Gail Macdonald. The motion was
seconded by Mr. Michels and unanimously carried.
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411/ 5. Cost of Living Adjustment.
Mr. Walker challenged the appropriateness of Board discussion regard-
ing this item, and moved that it be removed from the agenda. Motion
was seconded by Dr. Butler.
Vote in favor: Walker, Kirby and Michels
Opposed: Forney, Fletcher and Butler
Motion does not pass.
Motion by Mr. Walker: I move that the matter of COLA increases for
retirees be referred to Council for consideration.
Motion seconded by Mr, Michels.
Vote in favor: Kirby, Butler, Michels and Walker
Opposed: Forney and Fletcher.
Further discussion ensued.
Motion by Mr. Walker: Motion to reconsider motion which was referring
COLA discussion to Council.
Motion seconded by Mr. Michels and carried unanimously.
Upon reconsideration, the original motion again passed by a 4 - 2 vote,
Forney and Fletcher still dissenting.
Motion by Dr. Butler: Motion to withdraw the COLA discussion from the
agenda.
PASSED 5 - 1, with Mr. Forney dissenting.
6. Mayor Kirby called for adjournment of the meeting at 11:00 A.M.
APPROVED:
Karen Kirby, Mayor