02-20-2003 Regular Meeting•
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MIAMI SHORES VILLAGE
POLICE PENSION BOARD REGULAR MEETING
FEBRUARY 20, 2003
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, February 20, 2003
in the Conference Room of the Village Hall. The meeting was called to order at 4:15 P.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Present: Mark Ulmer, Chairman
Robert Blum
Detective Timothy Dearden
Sergeant David McLeod
Also Present:
Late Arrival: William Heffernan
Mark A. Malatak, Plan Administrator Janna K. Woods, Davis, Hamilton, Jackson
Lisa Keeley, Recording Secretary Carl O'Connell & Ryan Fitzpatrick, The Boston Company
Jeff Swanson, Merrill Lynch
3. APPROVAL OF PAYMENT WARRANT
Mr. Malatak reviewed Payment Warrant P No. 03-02. He reviewed the new policies from the actuary, Gabriel,
Roeder, Smith, due to the increase in fee structures going from a flat rate to an hourly rate. Mr. Malatak asked for
direction regarding the increased cost for actuarial services. The Board asked for a comparison of other similar
sized cities. Additionally, clarification on the pricing structure was sought as well as preference for a fixed cost
rather than an hourly rate. It was proposed that other actuaries be found. Detective Dearden moved for approval
of the payment warrant as submitted. Mr. Blum seconded the motion which was passed unanimously.
6. ADMINISTRATIVE REPORT — Mark Malatak, Plan Administrator
A. Mr. Malatak indicated the audited financial reports for the Pension Plan are available for review.
B. Mr. Malatak provided a brief summary of the actuarial report for the year ending September 30,
2001. He indicated a possible increase in contributions for the General Fund as a result of the
losses over the last two years.
C. Mr. Malatak indicated that there would be a special Board meeting for a proposed budget
detailing administrative costs associated with the Pension Fund.
Police Pension Board February 20, 2003 Page 2
5C. INVESTMENT GUIDELINE UPDATE — Merrill Lynch — Jeff Swanson
Mr. Swanson reviewed the investment policy guidelines to clarify the benchmarks used for the investment
managers. The primary objective is an asset allocation of 60/40 equity/fixed income allocation of the Russell
1000 and Merrill Lynch Government/Corporate. Each manager has the same targets compared to the respective
equity investment style.
Mr. Heffernan arrived at this time.
Mr. Blum moved to adopt the investment policy as submitted subject to Mr. Cypen's final approval. Mr.
Heffernan seconded the motion which passed unanimously.
4B. INVESTMENT MANAGER REPORT - Davis, Hamilton, Jackson & Associates - Janna Woods
Ms. Woods indicated that the quarter provided conservative asset allocation diversifying the portfolios. She
reported that the fund's total market value as of December 31, 2002 was $4,533,216. The total equity return for
the quarter was 6.6% compared to the Russell 1000 Growth of 7.1 %. As intermediate bond managers, the 1.7%
fixed income return was equal to the Lehman Intermediate US Government/Corporate return.
4A. INVESTMENT MANAGER REPORT - The Boston Company - Carl O'Connell
Mr. O'Connell reviewed the performance of the fund with a total market value of $4,460,459 as of December 31,
2002. The return for the period was 6.5%; the equity return being 10.5% compared to the Russell 1000 Value
• return of 9.2% and the fixed income earnings of 0.4% just beat the Merrill Lynch Govemment/Corporate return
of -0.5%.
5A&B. COMPLIANCY DISCUSSION - Merrill Lynch — Jeff Swanson
Mr. Swanson indicated that the current trend is a significant bear market, but the fund has tremendous
diversification to offset the trend. He reviewed market conditions and the impact on the investment manager's
returns for the quarter ending December 31, 2002. The total fund earned 5.3% ranking in the top 11% of the
public balanced fund sample.
7. OTHER BUSINESS
Detective Dearden asked to discuss the results of the special Police Pension Board meeting held on January 14,
2003. He provided highlights of benefits of participating in the FPPTA conferences.
8. ADJOURNMENT
The February 20, 2003 regular meeting of the Police Pension Board was adjourned at 5:50 P.M. with a motion by
Det. Dearden, seconded by Sgt. McLeod with the vote unanimous in favor.
• Mark Ulmer, Chairman
Lisa Keeley, Recording Secretary