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09-25-1987 Regular MeetingMIAMI SHORES VILLAGE PENSION BOARD MEETING The meeting of the Miami Shores Village Pension Board was called to order on Friday September 25, 1987 at 8:15 a.m. by Mayor Spero Canton with the following In attendance: Board Members: Also Present: Absent: Mayor Spero Canton Dr. Robert Butler Mr. Eily Johnson Sargeant Jack Ulmer Mr. Melvin Moore Mr. William Walker arrived at 8:55 a.m. Mr. James Jackson and Mr. Scott Givens of NCNB Ms. Karen Cole and Mr. David Newman of Kidder Peabody Ms. Gail Macdonald - Plan Administrator Mr. William Heffernan 1. Discussion of NCNB Fees and Trustee Relationship Mr. James Jackson described his duties as Administrative Officer for the Pension Board and presented his proposals for fee Increases for NCNB's management of the fund. Mr. Jacksons' proposal of a 25% fee increase on the direct portion of the Pian was refected by the Board and Mr. Jackson resubmitted a new proposal offering a 15% discount on the Trustee portion handled by Eickhoff and Pieper and a 5% Increase In the Trustee portion of the Plan. See Attached fee estimate. Sargeant Ulmer made a motion to accept Mr. Jackson's proposal of a 9% Increase on the direct portion of the Pian and a 5% increase on the trustee portion of the Plan effective January 1, 1988. The motion was seconded by Mr. Moore. The motion passed unanimously. 2.Kidder Peabody Proposal of additional Equity Managers Ms. Karen Cole and Mr. David Newman recommended soliciting a con- vertible bond manager because the growth of the fund has been sub- stantial enough to warrant an additional manager. Ms. Cole and Mr. Newman provided the Board with Information describing the managers they endorsed. The top five managers are: Ashland Management, NWQ Investment Management Co., Eagle, ICM and Froley, Revy. The Board took Kidder Peabody's suggestion Into consideration for future action. 3.Update on Labor Negotiations Ms. Macdonald reported to the Board with respect to the last meeting and the one mil limit on contributions clause in the ordinance. A legal opinion was sent to the Board which specified that the one mil cap cannot be changed without a referendum. Correspondense from the labor attorney discussing the legal ramifications of setting age limits was reviewed. 4. Announcement - New Pension Board Composition Mr. Johnson announced to the Board that Ms. Patricia Varney has been appointed the representative for the General Employees to the Pension Board and Mr. William Walker and Mr. Heffernan have been re -appointed. All appointments become effective October 1, 1987. 5. Old Business Ms. Macdonald reported that as far as disability insurance#or the Board was concerned, the matter Is still being researched and she Is awaiting reports. With regard to the fiduciary Insurance, Ms. Macdonald reported that she is also awaiting reports before any conclusions can be drawn. 6. Approval of 8/7/87 Minutes Mr. Walker made a motion to accept the minutes of the 8/7/87 meeting as written. The motion was seconded by Mr. Johnson. The motion passed unanimously. 7. Adjournment Mayor Canton made a motion to adjourn and the motion was seconded by Mr. Walker. The meeting adjourned at 10:20 a.m. . Johnson ge Manager/Secretary * At the November 17, 1987 Pension Board meeting, the minutes are corrected to strike the words "for the Board" from number 5. NCNB National Bank P.O. Box 1469 Tampa, Florida 33601 • September 28, 1987 • Pension Board Miami Shores Village 10050 N.E. 2nd Ave. Miami Shores, FL 33138 Dear Board Members: It was a pleasure meeting with you on Friday, September 25, 1987, to discuss the trust services, along with the related fee schedules. Based on our discussion, I have adjusted the proposed fee schedules. As you recall, a 15% discount will apply to the Directed/Master Trustee Schedule. In addition, the Investment Management and Trustee Schedule had a typographical error, which I have corrected. Both schedules are enclosed and reflect the above changes. On behalf of NCNB, we appreciate the opportunity to service your pension plan and we look forward to a long standing relationship. At a future pension board meeting, I will introduce you to Ann Held, who will serve as the account officer for your plan. Ann will be responsible for the relationship effective January 1, 1988. In the meantime, if you have any questions on this letter or on any other matter, please fee free to call me at (813)224-5333. Thanks for your business. ames C. Jackson, CPA Manager, Employee Benefits Account Administration Corporate Trust Division cb Enclosures cc: Gail MacDonald Karen Cole Scott Givens Ann Held An EOM Corporation company NCNB National Bank Master Trustee For Miami Shores Village Pension Trust/Eickhoff and Pieper FEE ESTIMATES • I. Assumptions: ... Annual charges based on market value of $3,100,000 ... Fees are charged quarterly on a pro rata basis II. Current Asset Charges: III. Proposed Asset Charges: .0050 on first $ 500,000 . 0040 on next $ 500,000 .0020 on next $1,000,000 . 0010 on remainder .0045 on first $1,000,000 .0025 on next $4,000,000 .0015 on next $5,000,000 A 15% discount will be applied to the above schedule IV. Fee Comparison Based on Current and Proposed Schedules: Annual charge based on current schedule: Annual charge based on proposed schedule: $9,750 (Less 15% discount): (1,462) $7,600 Discounted Annual Charge: $8,288 Annual Difference $ 688 • NCNB National Bank Trustee and Investment Manager For Miami Shores Village Pension Plan and Trust FEE ESTIMATES I. FACTORS: Annual charges based on market value of $2,400,000 The current fee of 1.2% for the $800,000 invested in the NCNB Real Estate Fund remains unchanged, and is charged in lieu of the below asset charges. Fees are charged quarterly on a pro rata basis II. Current Asset Charges: III. Proposed Asset Charges: . 0075 on the first $1,000,000 .0050 on the next $1,000,000 .0040 on the next $3,000,000 .0025 on remainder . 0085 on the first $ 750,000 . 0065 on the next $ 750,000 .0045 on the next $3,500,000 .0025 on remainder IV. Fee Comparisons Based on Current and Proposed Schedules: Annual charge based on current schedule: $20,100 Annual charge baded on proposed schedule: $21,300 Annual Difference $ 1,200 • NCNB Master Investment Miami Shores National Bank Trustee Services And Management Services For Village Pension Trust Notice of Acceptance The undersigned hereby acknowledges reciept of and agreement with the attached proposed Fee Schedules as agreed to at the Pension Committee meeting on September 25, 1987. Date of Acceptance Date of Acceptance • MIAMI SHORES VILLAGE Pension Board NCNB NATIONAL BANK OF FLORIDA Vice President and Trust Officer