11-09-1995 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD
REGULAR MEETING
NOVEMBER 9, 1995
The regular meeting of the Miami Shores Village Pension Board was held on Thursday,
November 9, 1995 in the Chamber of the Village Hall. The meeting was called to order at
8:07 A.M. by Mr. Louis Imburgia, Jr. with the following members present:
Present:
Louis S. Imburgia, Jr., Chairman
Joseph Charles
Officer Timothy Dearden
Councilman William Heffernan
Walter Latimer
Absent: Michael R. Couzzo, Jr., Secretary
Richard Trumble
Also Present: Mark Ulmer, Village Attorney
Patricia Varney, Plan Administrator
At this time, Mr. Imburgia requested that Item 1, Investment Reports, be moved to the last item
on the agenda (Item 10).
1. EMERGENCY AGENDA ITEM - APPOINTMENT OF SECRETARY FOR
TODAY'S MEETING.
Due to Mr. Couzzo's absence, Mr. Heffernan moved that Mr. Latimer be appointed as
Acting Secretary. Mr. Charles seconded the motion and the vote was unanimous in favor.
2. REQUEST APPROVAL OF PAYMENT TO BARNETT BANK
Mr. Heffernan moved for approval of payment to Barnett Bank in the amount of
$8,648.88 for quarterly management fees ending September 30, 1995. Mr. Charles
seconded the motion. The vote was unanimous in favor.
3. REQUEST APPROVAL OF PAYMENT TO SUNBANK
Mr. Latimer moved for approval of payment to SunBank in the amount of $10,673.38 for
quarterly management fees ending September 30, 1995. Mr. Heffernan seconded the
motion and the vote was unanimous in favor.
4. REQUEST APPROVAL OF PAYMENT TO KRUSE, O'CONNOR & LING
Mr. Heffernan moved for approval of the first of three payments to Kruse, O'Connor &
Ling in the amount of $1,733.00 for Actuarial Valuation Report. Mr. Charles seconded
the motion. The vote was unanimous in favor.
•
Pension Board
November 9, 1995 Page 2
5. REQUEST APPROVAL OF PAYMENT FOR FPPTA MEMBERSHIP
Mr. Charles moved for approval of payment in the amount of $150.00 to the Florida
Public Pension Trustees Association for yearly 1996 membership. Mr. Latimer seconded
the motion and the vote was unanimous in favor.
6. DISCUSSION AND POSSIBLE ACTION REGARDING PENSION BOARD
POLICY FOR PAYMENTS INCURRED IN CONTRACT NEGOTIATIONS.
Mrs. Varney explained that the attorney for the PBA stated the PBA will not pay for any
"normal" actuarial study fees incurred in negotiations. In the course of negotiation, should
a drastic change to the contract be considered, the PBA may pay a portion of the cost
incurred. However, the cost must also become a negotiated item. Mr. Charles asked why
the Pension Plan, not the Village pays for the cost. Mr. Heffernan stated that the Board
should direct the Village Manager to be aware of the costs incurred during contract
negotiations and consider who should be responsible for payment of the incurred costs.
It was the consensus of the Board to direct the Village Manager to investigate procedures
used by other cities for contract negotiation costs incurred and to report back to the
Board.
7. REQUEST APPROVAL OF REIMBURSEMENT TO MIAMI SHORES
VILLAGE
Mr. Charles moved for approval of reimbursement to Miami Shores Village in the amount
of $775.00 for payment of services rendered by Kruse, O'Connor & Ling. Mr. Latimer
seconded the motion. The vote was unanimous in favor.
8. DISCUSSION AND POSSIBLE ACTION REGARDING MEETING DATES FOR
THE UPCOMING YEAR.
It was the consensus of the Board to adopt the following as the meeting dates for 1996:
- February 8, 1996 - August 8, 1996
- May 9, 1996 - November 14, 1996
• 9. APPROVAL OF THE SEPTEMBER 21,1995 MINUTES
Mr. Heffernan moved for approval of the September 21, 1995 minutes as submitted. Mr.
Charles seconded the motion and the vote was unanimous in favor.
Mr. Heffernan left at this time.
Pension Board
November 9, 1995 Page 3
10a. REPORT FROM DON BRYANT - BARNETT BANK
Mr. Don Bryant of Barnett Bank reported that the account's total market value ending
9/30/95 was $5,163,510. The account return was up 6.01% for the quarter. The fixed
income return was up 1.9% status quo with the Lehman Government Group. The equity
investment return was up 9.39% compared to 7.9% of the S&P 500.
10b. REPORT FROM PHILIP ROBERT, SUNBANK
Mr. Philip Robert of SunBank reported that the total market value of the account was
$5,359,123 for the period ending 9/30/95. The account return was up 5.1% for the
quarter. The equity portfolio gave a 7.2% return compared to 7.9% of the S&P 500. The
fixed income return was up 1.9% status quo with the Lehman Government Group. Mr.
Robert informed the Board that SunBank had changed its name to SunTrust / STI Capital
Management.
10c. REPORT FROM JEFF SWANSON, MERRILL LYNCH
Mr. Jeff Swanson of Merrill Lynch reported that, as of 9/30/95, the fund had a total
market value of $10,879,682. For the quarter, the fund earned a 5.3% return, slightly
ahead of the target index of 4.9%. Both the equity and fixed income portfolios
outperformed the index. It was noted that the Village Pension Fund ranked 16 out of 57
in Florida Municipal Clients.
Mr. Swanson asked the Board to review a Statement of Investment Policy for the City of
Miami Shores Village Employees' Retirement Plan. As this was not a scheduled agenda
item, Mr. Latimer moved that an emergency item be placed on the agenda for discussion
and possible action regarding the Statement of Investment Policy. Mr. Charles seconded
the motion and the vote was unanimous in favor.
Mr. Swanson stated that the policy reflects the guidelines of Chapters 175 and 185 for
Pension Plans. He noted the goals are similar to the policy adopted in 1992. However,
there is some new proposed language which makes the policy more conservative and
restrictive. Mr. Ulmer stated that the modification seemed significant and asked that the
Board defer the item to the next regularly scheduled meeting. Mr. Charles moved to defer
the item to the next regularly scheduled meeting. Mr. Latimer seconded the motion and
the vote was unanimous in favor. Mr. Latimer asked that a red -line copy be made
available to the Board so that the proposed changes may be seen.
•
•
Pension Board November 9, 1995
11. ADJOURNMENT
The Pension Board meeting of November 9, 1995 was adjourned at 9:45 A.M.
Page 4