05-09-2002 Regular Meeting•
MIAMI SHORES VILLAGE
POLICE PENSION BOARD REGULAR MEETING
MAY 9, 2002
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, May 9, 2002 in the
Conference Room of the Village Hall. The meeting was called to order at 8:05 A.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Mark Ulmer, Chairman
Robert Blum
Detective Timothy Dearden
Sergeant Robert Frame
William Heffernan
Also Present: Steve Cypen, Pension Board Attorney
Mark A. Malatak, Plan Administrator
Lisa Keeley, Recording Secretary
3. APPROVAL OF MINUTES
Mr. Heffernan moved for approval of the February 14, 2002 minutes. Mr. Blum seconded the motion. During
• discussion, Mr. Cypen indicated that in Item 3, the payment warrant should be identified by number rather than
"as submitted." Mr. Cypen also requested that in Item 5A, Line 2, the period be specifically identified. The
motion to approve passed unanimously.
4. APPROVAL OF PAYMENT WARRANT
Mr. Heffernan moved for approval of payment warrant P No. 02-2 as submitted. Mr. Blum seconded the motion
which was passed unanimously.
5A. INVESTMENT MANAGER REPORT - Davis, Hamilton, Jackson & Associates - Janna Woods
Ms. Woods indicated that the allocation includes approximately four percent cash which will be re -invested
shortly. She reviewed the performance of the fund with a total market value of $5,110,276 as of March 31, 2002.
The return for the period was 0.9%; the equity return being 1.6% compared to the Russell 1000 Growth return of
-2.6% and the fixed income loss of -0.6% just beating the Merrill Lynch Government/Corporate return of
-0.6%.
5B. INVESTMENT MANAGER REPORT - The Boston Company - Carl O'Connell & Ryan Fitzpatrick
Mr. O'Connell reported that the fund's total market value as of March 31, 2002 was $5,171,018. The total return
for the quarter was 2.5%; with a 5.6% return on equities compared to the Russell 1000 Value of 4.7%. Mr.
• Fitzpatrick reviewed the -2.2% fixed income return which was just below the -2.1% Merrill Lynch
Government/Corporate return.
Police Pension Board May 9, 2002 Page 2
• 6. CONSULTANTS REPORT - Merrill Lynch - Larry Cole
•
Mr. Cole reviewed the investment manager's returns for the quarter ending March 31, 2002. He noted that the
exclusion from the international investment market is somewhat limiting the funds growth. It is an asset class
that could provide some additional exposure. The Board requested that information on international investments
be brought to the table at the next meeting.
The fund ranked in the bottom ten percent compared to the public balanced public fund sample. He indicated
that, although the market is currently extremely volatile, both managers still fall within the investment policy
parameters. Both managers have had good returns for the fiscal year to date and reached those earnings in a
different manner which will stabilize the long run returns.
7. ADMINISTRATIVE REPORT - Mark A. Malatak, Plan Administrator
Mr. Malatak announced Detective Dearden's certification as Public Pension Trustee.
Mr. Malatak made announcements regarding the upcoming FPPTA June conference and the management online
service provided by Salem Trust.
Mr. Malatak indicated that Colonial Bank submitted the final custodial costs. He explained that the increased
final audit costs were a direct result of Colonial's failure to maintain accurate records. Mr. Malatak asked for the
Board to determine whether or not to pay the management fees or use it as an offset against the increased audit
fees paid due to Colonial's poor custodial performance.
Mr. Heffernan moved not to pay the custodial fees due to Colonial Bank as it should be considered an offset to the
increased audit fees paid as a direct result of Colonial Bank's reporting. Mr. Blum seconded the motion and the
vote was unanimous in favor.
8. APPROVAL OF STEVEN SADOWSKI'S RETIREMENT OPTION
Mr. Malatak explained that Detective Sadowski has retired into the DROP effective January 1, 2002. He has
elected the 66 2/3% joint and survivor annuity at a monthly payment of $3,121.44. Mr. Heffernan moved to
ratify and confirm the retirement and entry into the DROP effective January 1, 2002 for Steven Sadowski. Mr.
Blum seconded the motion and the vote was unanimous in favor.
9. OTHER BUSINESS -
An ensuing discussion regarding policy procedures resulted in a request for a formal pre -retirement procedure to
be developed.
9. ADJOURNMENT
The May 9, 2002 regular meeting of the Police Pension Board was adjourned at 9:45 AM.
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Mark Ulmer, Chairman Lisa Keeley, Recording Secretary