11-12-1998 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD
NOVEMBER 12,1998
The regular meeting of the Miami Shores Village Pension Board was held on Thursday, November
12, 1998 in the Chamber of the Village Hall at 8:15 A.M. with the following members present:
Present: Mary Ross Agosta, Mayor
Joseph Charles
Ellen Friberg
Richard Trumble
Tom Benton, Village Manager
Also Present: Patricia Vamey, Plan Administrator
Absent: Officer Timothy Dearden
Louis S. Imburgia
The agenda was taken out of order, as the Board was awaiting the arrival of Mr. Benton as the Board
chose not to hear the investment reports until his arrival.
5. REQUEST APPROVAL OF DATES FOR PENSION BOARD MEETINGS FOR
UPCOMING YEAR.
Mr. Charles moved for approval of the dates for the 1999 Pension Board meetings with a second
from Mr. Trumble. The vote was unanimous in favor.
6. REQUEST APPROVAL OF THE AUGUST 13, 1998 AND OCTOBER 6, 1998
MINUTES.
Mr. Trumble moved for approval of the minutes as submitted which was seconded by Mr. Charles.
The vote was unanimous in favor.
3. REQUEST APPROVAL OF PAYMENT TO SUNTRUST
Mr. Trumble moved to approve payment to SunTrust in the amount of $25,756.34 for quarterly
management fees for the period ending September 30, 1998. Mrs. Friberg seconded the motion
which passed unanimously.
Pension Board November 12, 1998 Page 2
3A. REQUEST APPROVAL OF PAYMENT TO GABRIEL, ROEDER, SMITH & CO.
Mr. Trumble moved to approve payment to Gabriel, Roeder, Smith & Company in the amount of
$1,950.00 for regular annual services. Mrs. Friberg seconded the motion which passed unanimously.
Mr. Benton arrived at this time.
la. INVESTMENT REPORT FROM MR. BILL TARRY, STI CAPITAL
MANAGEMENT
Mr. Tarry reported that the total return for the quarter was -4.7%. The 5.2% quarterly return on the
fixed income fund beat the Lehman Gov't Corp of 4.8%. The equity fund return of -10.7% was
under the -9.9% S&P return. Mr. Tarry indicated that the bond market protected the fund against
the stock market loss for the quarter.
2a. DISCUSSION AND POSSIBLE ACTION REGARDING INTERNATIONAL
INVESTING - PRESENTATION BY MR. NED DOW, STI
Mr. Dow gave a brief background on his experience as an international investment manager. He
indicated that the STI international investment strategy is a value process rather than chasing
earnings growth.
Mr. Charles observed there are two questions to consider. The first is the asset allocation if
international investing is an option. The second is which manager will handle the investing. Mr.
Charles asked the Board if there was interest in pursuing international investment opportunities and
Mrs. Varney inquired if the Board was willing to take the risk. Mr Hamilton expressed Merrill
Lynch's belief that international diversification is good. Mr. Tarry provided information regarding
the asset allocation should control be given to STI. STI would then have the authority to invest up
to 10% of the fund in the international market.
A straw vote was taken with all members voting in favor of international investing. Mr. Benton
recommended that he and Mrs. Varney collectively gather information on international investment
for the next Board meeting whereby the Board can vote on beginning international investing with
a maximum allocation. Upon voting, a international investment manager must be determined.
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Pension Board November 12, 1998 Page 3
lb. INVESTMENT REPORT FROM MR. CRAIG HAMILTON, MERRILL LYNCH
Mr. Hamilton acknowledged Ms. Karen Cole was also present on behalf of Merrill Lynch. He
indicated that the yearly returns were strictly STI investments and the two year numbers included
Barnett Bank as well as STI.
Mrs. Friberg left at this time.
Mr. Hamilton reviewed STI's returns relaying the expectations of the investment policy checklist
and compliance therewith. For the quarter, Miami Shores Village ranked 23rd compared to other
Florida Municipal Clients.
2. DISCUSSION AND POSSIBLE ACTION REGARDING CONTRACTING LEGAL
SERVICES FOR THE PENSION BOARD.
Mrs. Varney referred to Miami Shores Village Ordinance which allows the Pension Board to obtain
outside legal counsel. Due to the specifications of the pension arena, Mr. Sarafan has indicated that
a pension attorney would be better qualified to represent the Board. Mr. Steve Cypen has been
recommended as his experience is vast. Recent legislation requires a contract with our investment
consultant, Merrill Lynch. Mr. Cypen has previously negotiated such a contract and will provide it
to the Village at no cost. His fee has been negotiated at $250.00 per hour broken down into one -
tenths paid through the Pension fund.
Mr. Benton spoke in favor of the appointment of Mr. Cypen as legal counsel. Mr. Charles inquired
as to the need for outside counsel when several consultants are currently available. Mrs. Varney
replied that legal consultation is needed for various administrative issues.
Mr. Trumble moved to approve Mr. Stephen Cypen as legal advisor to the Pension Board. Mr.
Benton seconded the motion and the vote was unanimous in favor.
4. DISCUSSION AND POSSIBLE ACTION REGARDING ATTENDANCE AT THE
FLORIDA PUBLIC PENSION TRUSTEES ASSOCIATION TRUSTEES SCHOOL.
. Mr. Charles stated his belief that the school should not be a requirement as Officer Dearden indicated
in his memorandum.
Mr. Benton moved that two any Board members attend the Trustees school in January 1999. Mr.
Trumble seconded the motion. After further discussion, Mr. Benton amended his motion to allow
any three Board members attend the Trustees school. Mr. Trumble seconded the motion and the vote
was unanimous in favor. Mr. Charles suggested that the Board members attend the FPPTA schools
on a rotating basis.
The Board asked that the issue of certification be placed on the next agenda.
Pension Board November 12, 1998 Page 4
7. ADJOURNMENT
The November 12, 1998 meeting of the Pension Board was adjourned at 10:00 a.m.
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Ellen Friberg, Secre
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