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08-10-1995 Regular MeetingMIAMI SHORES VILLAGE PENSION BOARD REGULAR MEETING AUGUST 10, 1995 The regular meeting of the Miami Shores Village Pension Board was held on Thursday, August 10, 1995 at the Miami Shores Village Hall. The meeting was called to order by Mr. Louis Imburgia, Jr. at 8:03 A.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 Richard Trumble Also Present: William Fann, Village Attorney Patricia Varney, Plan Administrator Karen Cole, Merrill Lynch Mike Calloway, Merrill Lynch Don Bryant, Barnett Bank Philip Robert, Sun Bank 1A. REPORT FROM DON BRYANT, BARNETT BANK Mr. Don Bryant of Barnett Bank reported that the account's total market value ending 6/30/95 was $4,956,165. The account return was up 8.36% for the quarter. The fixed income return was up 6.10% compared to 6.50% of the Lehman Government Group. The equity investment return was up 10.29% compared to 9.5% of the S&P 500. 1B. REPORT FROM PHILIP ROBERT, SUN BANK Mr. Philip Robert of Sun Bank reported that the total market value of the account was $5,099,348 ending 6/30/95. For the quarter, the account return was up 6.42%. The equity portfolio gave a 6.60% return for the quarter compared to 9.5% of the S&P 500. The fixed income return was up by 6.1% compared to 6.50% of the Lehman Government Group. Mr. Heffernan inquired as to when the value fund was acquired and how much was put into it. Mr. Robert responded that it was obtained in the fourth quarter of last year and 30% of the equity portfolio was invested. 1C. REPORT FROM MIKE CALLOWAY, MERRILL LYNCH Mr. Mike Calloway of Merrrill Lynch reported that, as of 6/30/95, the fund had a total market value of $10,414,543. This was an increase of $627,828 from the previous quarter. For the quarter, the fund earned a 7.1% return, slightly below the target index of 8.0%. For the year, the total return was 16.7%. The equity portfolio trailed behind the S&P 500 which prevented the fund from meeting the target index. Pension Board August 10, 1995 Page 2 The equity portfolio returned 8.2% for the quarter compared to 9.5% of the S&P 500. The bond portfolio was up 6.1% compared to 6.50% of the Lehman GovtlCorp. Mr. Latimer inquired about Sun Bank's performance and questioned if the drop was due to the change in management. Mr. Calloway stated that the previous year's performance was much worse, and if anything, the change in management was better for the fund. Ms. Karen Cole reported on information received from Floyd Boyce of Nations Bank. She stated that the Village should be receiving a letter the week of 8/18/95 regarding the liquidation of funds. A decision must be made by 10/28/95 should the Board decide to come out of the fund. Mr. Heffernan inquired as to the value of the liquidation. Ms. Cole stated that Arthur Anderson is giving services for valuation. Mr. Charles asked for a recommendation from Merrill Lynch regarding the liquidation. Ms. Cole stated that Arthur Anderson should make a recommendation since they have a fudiciary responsibility to the Village. 2. DISCUSSION AND POSSIBLE ACTION REGARDING THE REVISED PENSION SUMMARY PLAN DOCUMENT. Ms. Varney explained that the Pension Summary Plan must be revised every two years. By performing an in-house revision, there is minimal cost involved. Kruse, O'Connor & Ling has given the Village a disk which contains the previous Plan so that revisions can be made to the original document. Mr. Heffernan asked if this the revision was due to the PBA. Ms. Varney confirmed that it was. Mr. Heffernan moved to approve an in-house revision of the Pension Summary Plan to be submitted for review. Mr. Charles seconded the motion. The vote was unanimous in favor. 3. DISCUSSION AND POSSIBLE ACTION REGARDING PENSION BOARD MEMBERS AITENDING THE FLORIDA PUBLIC TRUSTEES ASSOCIATION SCHOOL IN ST. PETERSBURG, FL Ms Varney explained that some of the Board members have expressed an interest in attending the October, 1995 school. Officer Tim Dearden stated that it would be beneficial for everyone to attend such a conference. Mr. Heffernan suggested one Board member attend to critique the school and report back to the Board. Mike Calloway stated that the Board could benefit from speaking to other municipal Pension Board members since they deal with similar circumstances. Mr. Dearden stated that he would like to attend the school at a future date. • • Pension Board August 10, 1995 Page 3 4. REQUEST APPROVAL OF PAYMENT TO BARNETT BANK Mr. Latimer moved approval of payment to Barnett Bank in the amount of $8,301.58 for quarterly management fees ending June 30, 1995. Mr. Heffernan seconded the motion and the vote was unanimous in favor. 5. REQUEST APPROVAL OF PAYMENT TO SUN BANK Mr. Latimer moved approval of payment to Sun Bank in the amount of $10,186.28 for quarterly management fees ending June 30, 1995. The motion was seconded by Mr. Heffernan. The vote was unanimous in favor. 6. REQUEST APPROVAL OF MINUTES - JULY 24,1995 MEETING Mr. Latimer moved to approve the July 24, 1995 Pension Board meeting minutes. Mr. Charles seconded the motion and the vote was unanimous in favor. 7. ADJOURNMENT The Pension Board meeting of August 10, 1995 was adjourned at 9:09 A.M.