02-13-1997 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD
FEBRUARY 13, 1997
The regular meeting of the Miami Shores Village Pension Board was held on Thursday,
February 13, 1997 in the Chamber of the Village Hall. The meeting was called to order at
• 8:10 A.M. with the following members present:
•
Present: Louis S. Imburgia, Jr., Chairman
William Heffernan
Joseph Charles
Officer Timothy Dearden
Walter Latimer
Richard Trumble
Michael R. Couzzo, Jr.
Also Present: Mark Ulmer, Village Attorney
David Weinstein, Acting Plan Administrator
EMERGENCY AGENDA ITEM - APPOINTMENT OF ACTING CHAIRMAN
Due to the late arrival of Mr. Imburgia, Mr. Charles moved to appoint Mr. Heffernan as Acting
Chairman for today's meeting. Mr. Couzzo seconded the motion. The vote was unanimous in
favor.
la. INVESTMENT REPORT FROM MR. DON BRYANT, BARNETT CAPITAL
ADVISORS, INC.
Mr. Bryant reported that the total yearly market value ending 12/31/96 was $6,229,802 with a
return of 12.6%. For the quarter, the fixed income return was 3.1% equal to the Merrill Lynch
Gov't Corp. The equity fund was under the S&P 500 of 8.3% with a return of 6.0%.
Mr. Charles inquired as to why there was a lag behind in the equity fund. Mr. Bryant responded
that the top 50 companies of the S&P 500 (in which our fund was not heavily weighted)
contributed 60% of the S&P quarterly returns. Mr. Charles also questioned the basis for the price
earnings ratio. Mr. Bryant replied that the P/E is based on earnings anticipated over the next
twelve months. Mr. Bryant noted that Barnett is looking at ways to reduce risk for the equity
portfolio.
Mayor Imburgia arrived at this time. The gavel was passed to Mayor Imburgia.
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February 13, 1997 Page 2
ib. INVESTMENT REPORT FROM MR. PHILIP ROBERT, STI CAPITAL
MANAGEMENT
Mr. Robert reported that the total yearly return for the fund was 13.1%. The quarterly return on
the fixed income fund was 2.8% just under the Lehman Gov't Corp of 3.1%. The equity fund
411 return was also under the S&P 500 return of 8.3% with 5.3%. Mr. Robert spoke of the value of
the stock market compared to the market of some overvalued stocks in regards to a market
correction in the current bull market.
lc. INVESTMENT REPORT FROM MS. KAREN COLE, MERRILL LYNCH
Ms. Cole reported that the fund's net earning for the period was $543,735 with a total market
value of $12,860,398. The fund has a total return of 12.9% for the year compared to the target
index of 12.6 %. The equity portfolio was up 20.4% for the year just under the S&P 500 by
2.6%. The fixed income return of 3.3% beat the ML Govt Corp return of 2.9%. The portfolio
ranked 23rd for the year in comparison to other Florida Municipal clients. Mr. Latimer questioned
the quarterly ranking for the portfolio. Ms. Cole stated that the managers should manage the
portfolio up to S&P 500 performance. She stated that Barnett is currently trying to address their
risk exposure. However, there should be more consistency in return.
Mr. Heffernan stated that the concern lies with the under performance of Barnett for the last four
years. He suggested that Barnett Bank be reevaluated at the five year interval. Although Barnett
is strong in the fixed asset market, the equity portfolio may need adjusting. Mr. Latimer noted
that the size of the fund may warrant a need for a third manager. Ms. Cole stated that she would
provide the Board with some information regarding money managers at the next meeting.
ITEM #2 PRESENTATION OF ACTUARIAL REPORT - J. STEPHEN PALMQUIST
Mr. Palmquist stated that the experience of the plan was good this year. The Village contribution
cost have remained steady at 6.8% of payroll. The reason for this was due to pay increases being
lower than the assumed rates of pay increases and more employees terminated employment
creating an actuarial gain.
Officer Dearden suggested that the Board consider a COLA increase for general employee
retiree's. He asked that the Board be provided with the current benefit amounts for those general
employees receiving pension benefits. Mr. Charles stated that an adhoc adjustment can be looked
at any time. However, any change in the assumptions can change the whole outlook of the plan.
Mr. Heffernan advocated a combined plan of both defined contributions and defined benefits. Mr.
Ulmer noted that the Board does not have the authority to make a recommendation to the Council
for a COLA increase. The Board has twelve powers which are strictly administrative in nature.
Officer Dearden left at this time.
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February 13, 1997 Page 3
Mr. Pahnquist stated that under GASB standards, disclosure #5 will no longer be required after
this year and GASB statement #25 will be used in the future. Mr. Pahnquist noted that basis one,
the total rate of return for the year, was 13% for the entire fund. Over 17 3/4 years, the average
rate of return in 9.8%. He also noted that Village costs remain level and were down one point
from last year, due mainly in part to investment earnings and low inflation.
ITEM #3 REQUEST APPROVAL OF PAYMENT TO BARNETT BANK
Mr. Latimer moved for approval of payment in the amount of $10,434.92 for quarterly
management fees ending December 31, 1996. Mr. Trumble seconded the motion and the vote
was unanimous in favor.
ITEM #4 REQUEST APPROVAL OF PAYMENT TO SUNTRUST
Mr. Latimer moved for approval of payment to SunTrust in the amount of $12,432.37 for
quarterly management fees ending December 31, 1996. Mr. Trumble seconded the motion and
the vote was unanimous in favor.
ITEM #5 REQUEST APPROVAL OF PAYMENT TO BARNETT BANKS TRUST
COMPANY, N.A.
Mr. Latimer moved for approval of payment to Barnett Banks Trust Company, N.A. in the
amount of $474.00 for administrative services ending December 31, 1996. Mr. Trumble
seconded the motion. The vote was unanimous in favor.
ITEM #6 REQUEST APPROVAL OF REIMBURSEMENT TO MLAMI SHORES
VILLAGE
Mr. Latimer moved for approval of reimbursement to Miami Shores Village in the amount of
$1,750.00 for payment of annual services provided by Gabriel, Roeder, Smith & Company. Mr.
Tremble seconded the motion and the vote was unanimous in favor.
ITEM #7 REQUEST APPROVAL OF REIMBURSEMENT TO MIAMI SHORES
VILLAGE
Mr. Latimer moved for approval of reimbursement to Miami Shores Village in the amount of
$4,400.00 for payment of annual services and impact study provided by Gabriel, Roeder, Smith &
Company. Mr. Tremble seconded the motion. The vote was unanimous in favor.
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February 13, 1997 Page 4
ITEM #8 REQUEST APPROVAL OF REIMBURSEMENT TO MIAMI SHORES
VILLAGE
Mr. Latimer moved for approval of reimbursement to Miami Shores Village in the amount of
$150.00 for payment ofF.P.P.T.A. annual membership. Mr. Tremble seconded the motion and
the vote was unanimous in favor.
ITEM #9 APPROVAL OF THE NOVEMBER 14, 1996 MINUTES
Mr. Charles moved for approval of the November 14, 1996 minutes as submitted. Mr. Heffernan
seconded the motion and the vote was unanimous in favor.
ITEM #10 ADJOURNMENT
Mr. Couzzo asked Ms. Cole to provide the Board with information regarding money managers
and the possibility of shifting assets to increase returns. Ms. Cole stated she would bring
recommendations to the next scheduled meeting.
Mr. Couzzo suggested that the employees be provided with a synopsis of the plan's status on an
annual basis.
It was the consensus of the Board to draft a letter to recognize Patricia Varney for her
outstanding work as plan administrator.
Mr. Couzzo moved for adjournment. Mr. Latimer seconded the motion. The vote was
unanimous in favor. The February 13, 1997 meeting of the Pension Boar as adjourned
10:00 A.M.
Louis S. Imb gia, Jr., C