07-24-1995 Special Meeting•
MIAMI SHORES VILLAGE
SPECIAL PENSION BOARD MEETING
JULY 24, 1995
A special meeting of the Miami Shores Village Pension Board was held on July 24, 1995 at the
Miami Shores Village Hall. The meeting was called to order by Mr. Louis Imburgia, Jr. at
5:04 P.M. The following were in attendance:
Board Members: Louis Imburgia, Jr., Chairman
Michael R. Couzzo, Jr., Secretary
Joseph Charles
Tim Dearden
William Heffernan
Walter Latimer
Also Present: Patricia Varney, Plan Administrator
William Fann, Village Attorney
1. DISCUSSION AND POSSIBLE ACTION REGARDING 'HIE DESIGNATION OF
A FIDUCIARY TO PERFORM DUTIES ON BEHALF OF THE
PARTICIPATING TRUSTS, AS DESCRIBED IN THE STANDBY TRUST
DISCLOSURE DOCUMENT.
Ms. Varney explained that this issue had been discussed at length with the Village
Attorney, William Fann, Barnett Trust, Arthur Anderson and NCNB. The current trustee
for the Village, Barnett Trust, reviewed the documents. Barnett noted that any costs,
including attendance at quarterly meetings and appraisals would be exorbitant for the city.
Should Arthur Anderson be selected as the fiduciary, all costs would be exorbitant for
NCNB. If any other fiduciary should be chosen, NCNB stated the city would incur all
costs. It is therefore the recommendation of the Plan Administrator and the Village
Attorney to appoint Arthur Anderson as fiduciary for NCNB Real Estate Fund.
Mr. Dearden inquired as to the relationship between Arthur Anderson and NCNB. Ms.
Varney explained that Arthur Anderson is only an independent fiduciary. With the
Standby Trust, Nations Bank can no longer act as fiduciary. Mr. Charles stated that since
Arthur Anderson is a quite reputable firm, there should be no question as to its integrity.
Mr. Couzzo asked if, by choosing Arthur Anderson, the Village waives its right to choose
another fiduciary at a later date. Mr. Fann stated that Arthur Anderson is only a trustee.
Their function is to choose an election, which must be decided by October 1995. If no
decision is made regarding a fiduciary, Arthur Anderson is appointed by default. The
decision is merely a formality.
Mr. Charles moved that Arthur Anderson be appointed as fiduciary of NCNB trust. Mr.
Couzzo seconded the motion. The vote was as follows:
Those in Favor : Mr. Imburgia, Mr. Charles, Mr. Dearden, Mr. Couzzo
Opposed: Mr. Latimer
Mr. Fann noted that Arthur Anderson must be notified by October 30, 1995 of the
election.
2. REQUEST FOR APPROVAL OF REIMBURSEMENT TO MIAMI SHORES
VILLAGE FOR SERVICES RENDERED BY KRUSE, O'CONNOR & LING.
Ms. Varney explained Kruse, O'Connor & Ling's services were for the determination of
cost impact of certain proposed changes in pension benefits for police officers. These
changes are being considered in PBA negotiations.
Mr. Couzzo moved for approval of reimbursement to Miami Shores Village for services
rendered by Kruse, O'Connor & Ling. Mr. Charles seconded the motion and the vote was
as follows:
Those in Favor: Mr. Imburgia, Mr. Charles, Mr. Dearden, Mr. Couzzo
Opposed: Mr. Latimer
Mr. Latimer inquired why the money was coming out of the pension fund if this is part of
contract negotiations and why wouldn't the PBA pay for the cost incurred. Ms. Varney
explained that the PBA is requesting a calculation on pension issues. Mr. Couzzo added
that the information is utilized by both parties. Mr. Latimer's concern was that if
additional requests are made in the future by a collective bargaining unit, the cost should
be incurred by the negotiators.
Mr. Latimer moved that the Board establish a policy to determine whether it will
reimburse costs incurred as a result of contract negotiations. The motion died for lack of
a second.
Mr. Heffernan arrived at this time.
Mr. Charles noted that the information is beneficial to both parties. Any expense that is
taken out of the fund will increase liability in the future. Due to this increase, both parties
are sharing the cost anyway.
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Mr. Latimer stated that the Pension Fund should be protected for all employees. Mr.
Couzzo stated that requests for information where costs are incurred should come before
the Board for consideration before the cost is incurred. The objective is that the Plan
should not be burdened by incurred costs.
Mr. Heffernan noted that ultimately, it will still be an expense to the Village. He stated
that it may be negotiated for future collective bargaining units to pay from their own fund.
The PBA may have a fund to obtain information that benefits its members. The issue will
be considered at a future date.
3. REQUEST APPROVAL OF PAYMENT TO THE BENEFICIARIES OF
JOSEPHINE CHURCH.
Mr. Couzzo moved approval of payment to the beneficiaries of Josephine Church in the
amount of $2,537.86 due to employee's death. Mr. Latimer seconded the motion. The
vote was unanimous in favor.
Mr. Charles questioned the calculation of benefits due to Ms. Church. Ms. Varney
explained that Ms. Church did not exhaust her total contribution since her retirement date.
The total payment to the beneficiaries is calculated by subtracting the total amount paid
out in 1 1/2 years from the total amount contributed.
4. APPROVAL OF MAY 30, 1995 MINUTES.
Mr. Heffernan moved to approve the May 30, 1995 Pension Board minutes. Mr. Charles
seconded the motion. The vote was unanimous in favor.
5. ADJOURNMENT
The special meeting of the Pension Board was adjourned at 5:40 P.M.
tA
Louis S. Imbur+`a, Jr., C . rson