05-13-1999 Regular Meeting•
MIAMI SHORES VILLAGE
PENSION BOARD
MAY 13, 1999
The regular meeting of the Miami Shores Village Pension Board was held on Thursday, May 13,
1999 in the Chamber of the Village Hall. The meeting was called to order at 8:08 A.M. with the
following members present:
Present: Mary Ross Agosta, Councilwoman
Joseph Charles
Ellen Friberg
Richard Trumble
Tom Benton, Village Manager
Absent: Mark Ulmer, Mayor - Chairman
Officer Timothy Dearden
Also Present: Lisa Keeley, Accountant - Finance
EMERGENCY AGENDA ITEM - APPOINTMENT OF CHAIRPERSON
Due to Mr. Ulmer's absence, Mr. Benton moved to appoint Mrs. Ross Agosta as acting chairperson
for today's meeting. Mr. Trumble seconded the motion and the vote was unanimous in favor.
Mr. Charles 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 1.1%. The quarterly return on the fixed
income fund was ahead of the Lehman Gov't Corp -1.2% return with -.4%. The equity fund return
of 2.0% came in under the S&P 500 return of 5.0%. Mr. Tarry spoke of the S&P 500's recent
growth.
• ib. INVESTMENT REPORT FROM MR. CRAIG HAMILTON, MERRILL LYNCH
Mr. Hamilton reported that the total fund return of 1.1% was just under the target index of 2.5% for
the 60/40 asset allocation. For this period, Miami Shores Village ranked 25th compared to other
Florida Municipal Clients. Mr. Hamilton spoke of how growth funds have outperformed value
funds over the last year.
Pension Board May 13, 1999 Page 2
2. REQUEST APPROVAL FOR THE RENEWAL OF FIDUCIARY INSURANCE AND
FIDELITY BOND
Mrs. Keeley explained that the fiduciary insurance and fidelity bond will expire on June 15, 1999.
The fidelity bond remains at the same premium of $156.00. However, due to time constraints, there
was difficulty in finding a fiduciary policy with the same coverage as held previously. Travelers
would not provide coverage with a defense outside the limit. The current quote is for a limit of $3
million with a defense inside the limit. After speaking with the agent, it was determined that the
limit could be raised to an amount equal to previous coverage. The agent stated that the quote for
an increase to a $5 million limit should not be more than 30% of the current quote. Mrs. Keeley
asked the Board for blanket approval with a $5 million limit and the premium being no more than
$10,000.
Mr. Benton moved for approval of the renewal of the fidelity bond with a premium of $156.00 and
of the renewal of the fiduciary insurance with a $5 million limit and a premium of no more than
$10,000. Mr. Tremble seconded the motion. The vote was called with a unanimous vote in favor.
3. DISCUSSION AND POSSIBLE ACTION REGARDING AMENDED CHAPTERS 175
& 185, FLORIDA STATUTES.
Mrs. Keeley spoke of the recent bill signed by Govemor Bush amending Chapters 175 & 185,
Florida Statutes pertaining to police officer pension plans. The new bill provides for a separation
of the general employee's and police officer's assets establishing a separate plan for police officer's.
After speaking with the actuary, Stephen Palmquist, the Board was advised that an impact study be
done after the State revenue is received. This should occur by July 1, 1999. At that time, the actuary
can better estimate if there is enough money to fund the necessary changes.
Mr. Benton moved that the actuary be directed to perform an actuarial impact study once the State
revenue is received. Mr. Trumble seconded the motion and the vote was unanimous in favor.
4. DISCUSSION AND POSSIBLE ACTION REGARDING THE ASSUMED RATE OF
SALARY CHANGES.
Mrs. Keeley referred to the actuarial comparative study for the general employee's assumed rate of
salary increases that the Board requested at the last meeting. She noted that Mr. Palmquist stands
by his recommended change from 6.5% to 5.5%. This will also decrease the Village's cost from
$12,341 to $0.
Mr. Benton moved that the Board keep the 5.5% assumed salary rate for general employees as
presented in the actuarial evaluation. Mr. Tremble seconded the motion. The vote was unanimous
in favor.
Pension Board May 13, 1999 Page 3
5. REQUEST APPROVAL OF PAYMENT TO SUNTRUST
Mr. Charles moved for approval of payment to SunTrust Banks of Florida, N.A. in the amount of
• $27,898.24 for quarterly management fees for the period ending March 31, 1999. Mr. Trumble
seconded the motion and the vote was unanimous in favor.
•
6. APROVAL OF THE FEBRUARY 11, 1999 MINUTES
Mr. Trumble moved for approval of the February 11, 1999 minutes as submitted. Mr. Benton
seconded the motion and the vote was unanimous in favor.
10. ADJOURNMENT
Mr. Charles questioned why the Village Council had to appoint a representative to the Pension Board
when the position has been traditionally given to the previous Chairperson. Mr. Benton stated that
this procedure was outlined in the Code of Ordinances.
Mrs. Friberg moved for adjournment with a second from Mr. Charles. The vote was unanimous in
favor. The May 13, 1999 meeting of the Pension Board was adjourned at 9:32 A.M.
Ellen Friberg, Secr
i
Mary Rods Agosta, Acting s. ' oman