11-14-2002 Regular Meeting•
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MIAMI SHORES VILLAGE
POLICE PENSION BOARD REGULAR MEETING
NOVEMBER 14, 2002
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, November
14, 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 results:
PRESENT: Detective Timothy Dearden ABSENT: Mark Ulmer
Sergeant David McCleod William Heffernan
Robert Blum
Also Present:
Steve Cypen, Pension Board Attorney
Mark A. Malatak, Plan Administrator
Lisa Keeley, Recording Secretary
Janna K. Woods, Davis, Hamilton, Jackson
Carl O'Connell & Ryan Fitzpatrick, The Boston Company
Jeff Swanson, Merrill Lynch
EMERGENCY AGENDA ITEM — Appointment of Acting Chairman
As the Chairman, Mr. Ulmer, was absent, Detective Dearden moved that Mr. Blum be appointed Acting
Chairman for this meeting. Sergeant McLeod seconded the motion which passed unanimously.
3. APPROVAL OF MINUTES — August 8, 2002 & October 24, 2002
Mr. Cypen inquired as to the status of the monies for the implementation of the minimum Chapter
Benefits as discussed at the last meeting. Mr. Malatak indicated the monies had not yet been received.
However, there is approximately $18,000 available for the three options available for employee vote.
Mr. Cypen noted a typographical error on page two, item 7b, line 1: "...and its' affect". There should
be no apostrophe after "its" and it should read "e"ffect.
Reference to October 24, 2002 minutes, Mr. Cypen confirmed that the selection of the fifth member was
approved by the Village Council.
Detective Dearden moved for approval of the August 8, 2002 and October 24, 2002 minutes with the
recommended amendments. Sergeant McLeod seconded the motion. The motion to approve passed
unanimously.
4. APPROVAL OF PAYMENT WARRANT
• Detective Dearden moved for approval of payment warrant P No. 03-1 as submitted. Sgt. McLeod
seconded the motion which was passed unanimously.
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Police Pension Board November 14, 2002 Page 2
5A. INVESTMENT MANAGER REPORT - Davis, Hamilton, Jackson & Associates - Janna Woods
Ms. Woods reported that the ninety-two percent of stocks were down. The fund's total market value as of
September 30, 2002 was $4,379,984. The total return for the quarter was -6.5%; with a -15.3% loss on
equities compared to the Russell 1000 Growth of -15.0%. The 4.6% fixed income return beat the 4.5%
return of the Lehman Intermediate US Government/Corporate return as the managers conservatively run
intermediate bonds.
5B. INVESTMENT MANAGER REPORT - The Boston Company - Carl O'Connell & Ryan
Fitzpatrick
Mr. O'Connell reviewed the performance of the fund with a total market value of $4,228,384 as of
September 30, 2002. The total return for the period was -11.3%; the equity loss of -21.8% compared to
the Russell 1000 Value return of -18.8% and the fixed income return of 6.6% beat the Merrill Lynch
Government/Corporate return of 5.9%.
6. CONSULTANTS REPORT - Merrill Lynch — Larry Cole
Mr. Cole reviewed market conditions and the impact on the investment manager's returns for the quarter
ending September 30, 2002. He indicated that the economy is not as bad as perceived in the media. The
current market is still growing. Mr. Cole indicated that the fund should stay the course in order to balance
out the short term loss effects.
Mr. Malatak asked for a comparison of Miami Shores Village to other Florida Public Pension Funds for
the last five years. Mr. Cole indicated he would provide the comparison for review.
7. DISCUSSION REGARDING IMPLEMENTATION OF A MINIMUM CHAPTER
BENEFIT
Mr. Cypen indicated that the Police employee's must vote on which on the three minimum chapter
benefits to be implemented with the monies from the State. As there is no cost to implement an early
retirement at age 50 with 10 years of service, reduce early retirement penalty to 3% that should be
implemented.
With approximately $18,000 currently available for implementation, the membership should vote as to
whether they would prefer to allow normal retirement at age 55 with 10 years of service or provide a pre-
retirement death benefit in the event of the death of a vested member. Detective Dearden indicated he
would organize the vote of the members and provide the results to the Board.
8. ADJOURNMENT
The November 14, 2002 regular meeting of the Police Pension Board was adjourned at 10:10 AM.
Robert Blum, Acting Chairman Lisa Keeley, Recording Secretary