05-09-1991 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD MEETING MAY 9,1991
The meeting of the Village of Miami Shores Pension Board was
called to order by Mayor Steven Johnson at 8:03 a.m. The
following were In attendance:
Board Members:
Also Present:
Mayor Steven Johnson
Gall Macdonald
William Walker
Sgt. Ulmer
Jean Bryant
Kay McCoy
Mr. Hank Courtney
Mr. William Fann, Village
Attorney
Ms. Patricia Varney,
Plan Administrator
Mr. Scott Givens, of NCNB
Mr. Bill Eickhoff of
Eickhoff, Pieper & Willoughby
Ms. Karen Cole, Merrill Lynch
Mr. Ray Dunleavy and
Mr. Joe Luksis of Sun Bank
1. Mr. Ray Dunleavy stated that since Miami Shores Village
has a combined pension plan of both general employees and
police employees, Sun Bank is concerned with the provisions
of Investment for Chapter 185, as the Corporate Equity Fund
may not meet that demand. Sun Bank Is requesting a letter of
indemnification.
Mr. Walker made a motion to refer the matter to the Village
Attorney (Mr. Fann) and the Village Manager to take
appropriate action that they deem necessary. The motion was
seconded by Mr. Courtney and passed unanimously.
2. Quarterly Investment Review - Eickhoff, Pieper &
Willoughby, Mr. Bill Eickhoff reported that the plan had a
very good quarter and that the next quarter should be a
period of active reinvestment.
Sun Bank - Mr. Joe Luksis reported the overall performance of
the portfolio Is doing well from the Inception date of
January 1991. There Is a positive 11% return in the two
months since Sun Bank handled the portfolio.
NCNB - Mr. Scott Givens reported that the liquidation re-
structuring plan should be In place by October 1, 1991. Mr.
Walker requested from Mr. Givens a listing of all the
participants In the Real Estate portion of the Plan so as to
contact them on behalf of the Pension Board with regard to
what their position is In respect to the liquidation of the
NCNB Real Estate.
Mr. Walker also addressed the possibility that Miami Shores
Village may not be able to participate In a limited partner-
ship and requested that Mr. Fann review the situation.
Mr. Walker made a motion that a demand should be made to
withdraw the funds from the Plan. Mr. Courtney seconded the
motion and passed unanimously.
Merrill Lynch - Ms. Karen Cole reported as of December 30, 1990,
• the portfolio consisted of 13.1% In Cash Reserve; 48.0% In
Equity; 22% In Fixed Income and 16.7% In Real Estate. All in-
vestments have a positive return. Eickhoff & Pieper up 13.1%;
NCNB Fixed Portion up 2.6%; Fixed Income up 9.9%; Real Estate up
6/10% and Sun Bank up 11%.
3. Mr. Larry Wilson discussed the asset allocation method that
smooths the Investment return. However, the method must comply
with the ERISA 1974 Act which requires recognizing market value
between 80% and 120%. Based on the last 2 years contributions,
If we use the smoothing method, it will cost the City an extra
$50,000. Over a period of 5 years, contributions will be more
level, but slightly higher. The Board decided to continue using
the present method.
4. Sgt. Ulmer made a motion to approve the 50% Joint and
contingent retirement of Mr. George M. Bostic In the amount of
$435.15. The motion was seconded by Mr. Courtney and passed
unanimously.
5. Ms. Macdonald made a motion to approve 100% Joint and
contingent retirement of Mr. Armando E. Fernandez in the amount
of $611.91. Sgt. Ulmer seconded the motion and passed
unanimously.
6. Ms. Varney reported the analysis of the Increased pension
plan expenses from fiscal year 1989 to 1990.
7. Mr. Walker made a motion to approve payment to Eickhoff &
Pieper In the amount of $5,871.86 for management fees from
4/1/91 to 6/30/91. The motion was seconded by Ms. Macdonald and
passed unanimously.
8. Ms. Macdonald made a motion to approve payment of invoices
totaling $11,527.31 to NCNB. Mr. Walker seconded the motion and
passed unanimously.
9. Sgt. Ulmer made a motion to approve renewal of Fiduciary
liability Insurance with coverage of $3 million dollars and
unlimited defense with a premium of $7,723 with Aetna Insurance.
Ms. Macdonald seconded the motion and passed unanimously.
10. Sgt. Ulmer made a motion to approve the renewal of Fiduciary
Responsibility bond for the pension plan for $600,000 coverage
at a premium of $253 per year for 3 years with annual renewal.
The motion was seconded by Ms. Macdonald and passed unanimously.
•
•
11. Ms. Varney amended the agenda to approve payment to NCNB for
the fees charged on the transaction cost of Eagle Asset Manage-
ment In the amount of $530 and also payment to NCNB for the
management fees of Eagle Asset Management for $200. Sgt. Ulmer
made a motion to approve and it was seconded by Ms. Macdonald
and passed unanimously.
13. Ms. Macdonald made a motion to approve the minutes of the
February 22, 1991 pension board meeting. Sgt. Ulmer seconded
the motion and passed unanimously.
14. A motion for adjournment was made and passed at 11:10 a.m.
dee14-fi .41
Gall 4 cdonald, Secretary
- <�4
Mayor Stere Johnson