08-14-1985 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING
August 14, 1985
The meeting of the Miami Shores Village Pension Board was
called to order at 8:00 a.m. by Mayor Kirby, with the following in
attendance:
Board Members: Mayor Karen Kirby
Dr. Robert Butler
Sam Michels
William Walker
John Fletcher
Les Forney
John Moore
Absent: None
Also Present: Karen Cole of Kidder, Peabody, Inc.
William Fann, Esq.
1. Approval of Minutes.
Upon motion made by Sam Michels and seconded by Dr. Butler,
the Minutes of August 6, 1985 were approved as written.
Pending the arrival of William Walker, who advised the Board he
would be briefly delayed, Mayor Kirby opened the meeting for general discussion:
NCNB Fees discussion was tabled for a later date.
Copies of a follow-up letter from Bill Eickhoff of Eickoff &
Pieper and an article from MEDICAL ECONOMICS, which cited
Ashland Management as one of the top money managers in the
country,were distributed to the Board by Les Forney (copies on
file.
Mayor Kirby and Chief Fletcher indicated their first preference
for equity manager would be Ashland, second Eickhoff & Pieper,
Dr. Butler indicated he was not ready to make a firm decision,
and requested clarification of the reliability and authenticity
of the figures furnished the Board by Kidder -Peabody. Karen
Cole addressed this request, with the explanation that all the
figures furnished are audited ones and the best information
available, and described the methods used to arrive at the
figures and graphs.
8/14/85
Sam Michels expressed the opinion that fees should be
a serious consideration in the selection of an equity
manager. He felt that Ashland's and ICM's 1% was excessive,
and ICC's 1/2 of 1%, and Eickhoff & Pieper's .75% - reasonable.
Mr. Fann was queried about the wisdom of passing a multiple
trustee ordinance. He stated that under the present ordinance
we are allowed only one trustee, that in splitting the port-
folio, the new equity manager would act as an advisor to the
trustee if the trustee (NCNB) agrees to that therefore making
a multiple trust agreement unnecessary; however, possibly a
prudent and desirable option.
At this point, Mr. Walker arrived and Mayor Kirby gave a brief
summary of what had transpired.
2. A motion was made by Dr. Butler that a round -the -table vote be
called. Seconded by John Moore and carried. Consensus of vote:
4/3 in favor of Ashland - Kirby, Fletcher, Moore and Forney
1st choice Ashland, 2nd choice Eickhoff & Pieper. Walker:
Eickhoff & Pieper 1st choice. Michels: ICC. Butler: No
decision.
A motion was made by Les Forney that the Board select Ashland
for 35% of the fund. After a brief interim the vote was seconded
by John Fletcher.
Further discussion ensued and Mayor Kirby called for a vote
of all in favor of awarding 35% of the portfolio to Ashland
for the equity portion of the fund. Vote: 3/4 - Fletcher,
Forney and Moore pro. Kirby, Walker, Michels and Butler opposed.
Subsequently a vote was taken upon motion made by Mr. Forney
that 35% of the fund be awarded to Eickhoff & Pieper. Seconded
by John Fletcher. Vote: 5/2 with Kirby, Fletcher, Walker,
Moore and Forney pro, and Sam Michels and Dr. Butler opposed.
Vote carried.
3. At this time, Mr. Fann again reaffirmed his views on the multiple
trust matter for the Board (see statement page 1).
4. The matter of the impact of NCNB fee changes will be addressed
at the next meeting of the Pension Board, which was scheduled
for Wednesday, September 18, 1985 at 4:00 p.m. Representatives
of NCNB, Kidder, Peabody, members of this Board and Gail Macdonald,
Pension Administrator, will review in detail the NCNB fee structure
from the start (1982), the trust agreement, and any and all
necessary adjustments.
8/14/85
3
•
Mr. Walker moved for adjournment at 4:50 p.m. Motion seconded
by Dr. Butler.
APPROVED:
Karen Kirby, Mayor
•
‘1.-.46-1-1Cht
Pension Secretary