08-12-1999 Regular MeetingMIAMI SHORES VILLAGE
PENSION BOARD
AUGUST 12, 1999
The regular meeting of the Miami Shores Village Pension Board was held on Thursday, August 12,
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: Mark S. Ulmer, Mayor
Mary Ross Agosta
Joseph Charles
Officer Timothy Dearden
Tom Benton, Village Manager
Absent: Ellen Friberg
Richard Trumble
Also Present: Steve Cypen, Pension Board Attorney
Mark A. Malatak, Plan Administrator
Lisa Keeley, Recording Secretary
Due to the late arrival of Mr. Swanson, Merrill Lynch and Mr. Malatak, the agenda was taken out of
order.
3. REQUEST APPROVAL OF PAYMENT TO SUNTRUST
Officer Dearden moved for approval of payment to SunTrust Banks of Florida, N.A. in the amount of
$28,862.39 for quarterly management fees for the period ending June 30,1999. Mr. Charles seconded
the motion and the vote was unanimous in favor.
4. REQUEST APPROVAL OF REIMBURSEMENT TO MIAMI SHORES VILLAGE
Mr. Charles moved for approval of reimbursement to Miami Shores Village in the amount of
$9420.00 for payment made to Century Financial Servies for the fiduciary and fidelity bond. Officer
Dearden seconded the motion. The vote was unanimous in favor.
5. APPROVAL OF THE MAY 13, 1999 MINUTES
Officer Dearden moved for approval of the May 13, 1999 minutes as submitted. Mr. Charles
seconded the motion and the vote was unanimous in favor.
Mary Ross Agosta arrived at this time.
Pension Board August 12, 1999 Page 2
2. DISCUSSION AND POSSIBLE ACTION REGARDING AMENDED CHAPTER 175
& 185, FLORIDA STATUTES - STEVE CYPEN.
Mr. Cypen gave a brief overview of the changes to Chapters 175 & 185, Florida Statutes. He
indicated that the two plans, Police and General Employee Pension Plans must be separated by
October 1, 1999. However, there are no indications from the State that a penalty would be imposed
should the deadline not be met. The Village does not offer a Firefighters' Pension Fund; therefore no
election will be required. The actuary should use the September 30, 1999 values to determine the net
plan value for each fund. A new Pension Board must be established for the Police Pension Fund.
This Board as mandated by Statute, would consist of 2 residential members appointed by the Village
Council, 2 police officers elected by a majority of the active police participants and a 54' member
chosen by a majority of the previous 4 members. The fifth member shall be appointed as a ministerial
duty by the Village Council.
In reviewing the Code of Ordinances pertaining to the Pension Plan, Mr. Cypen noted several
discrepancies. The first is the retirement dates for police officers jumps from 9/30/93 to 9/30/94. A
year is missing in the Code. The second is the ordinance for retirees subsequent to September 30,
1998. As a side note, Mr. Cypen indicated that the amount of coverage on the fiduciary policy should
be indicated on the policy as the one he reviewed did not indicate the amount of coverage. Mrs.
Keeley replied that the policy had a $4 million limit.
Mr. Cypen noted ifthe terms ofthe pension plan are defined in the Village Charter, then any changes
to the plan must be made by referendum. The Village Attorney should make a ruling on the statutory
language of the Charter that no referendum is required for changes to the Pension Plan.
A recess was taken at 8:22 a.m. The meeting was called to order at 8:55 a.m.. Mr. Malatak arrived
at this time.
Because the State casualty contributions were less than last year, there is no mandate to increase
benefits to minimum levels. Mr. Cypen suggested that the Board authorize Mr. Palmquist to work
with him to establish the new Police plan complying with State guidelines. A new Police Pension
Board must be established as previously outlined. The current Pension Board can continue as the
General Employee Pension Board as there are no requirements set forth by the State for such a plan.
However, guidelines must be established for the General Employee Pension Board. Discussion
regarding the establishment of the two Pension Boards ensued.
• Mr. Ulmer inquired as to the establishment of two plans and the increase in fees associated with
maintaining two plans. Mr. Swanson indicated that the STI manager should aggregate the two fiords
together for fee schedules.
Mr. Ulmer asked that the Village Manager make a recommendation to the Village Council regarding
the ordinances needed for establishment ofthe new Police Pension Board. Mrs. Ross Agosta moved
to authorize the Finance Director, the Pension Board Attorney and the Actuary to work with Village
Administration to create an ordinance(s) to present to the Village Council as soon as possible. Mr.
Charles seconded the motion and the vote was unanimous in favor.
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la. INVESTMENT REPORT FROM MR. BILL TARRY, STI CAPITAL
MANAGEMENT
Mr. Tarry did not attend today's meeting.
ib. INVESTMENT REPORT FROM MR. JEFF SWANSON, MERRILL LYNCH
Mr. Swanson reported that the total fund earned 5.6% beating the target index of 3.8% for the quarter
ended June 30, 1999. The fixed income fund return of -1.0% was on par with the overall market
results of -1.1%. The equity fund return of 9.7% exceeded the S&P 500 return of 7.0% due to the
aggressive allocation. For this period, Miami Shores Village ranked 27th compared to other Florida
Municipal Clients.
Mrs. Ross Agosta inquired as to international investing. It was the consensus of the Board to have
Merrill Lynch provide up-to-date information on international investing at the next regularly
scheduled meeting.
7. ADJOURNMENT
The August 12, 1999 meeting of the Pension Board was adjourned at 9:30 A.M.
Lisa Keeley,Recording Secretary
deco
Mark S. Ulmer, Chairman