LimeBike Memorandum of Understanding

Police Pension Board Meeting Minutes - October 25, 2016

MIAMI SHORES VILLAGE

POLICE OFFICERS’ RETIREMENT SYSTEM BOARD MEETING

The Miami Shores Village Police Officers’ Retirement System Board and General Employee Pension Board jointly met on Tuesday, October 25, 2016 at the C. Lawton McCall Community Center. The Police Officers’ Board meeting was called to order at 8:30 AM.   The following individuals were present for the meeting:

POLICE OFFICERS’ RETIREMENT SYSTEM BOARD                               

              

               Herta Holly

               John Bolton

               Natasha McKay

              

Also present were Pension Plan Administrator, Doug Falcon, Dave West of the Bogdahn Group, and Pension Attorney Adam Levinson. Melissa Moskovitz from the actuarial firm of Gabriel, Roeder Smith participated in a portion of the meeting via telephone.

APPROVAL OF MINUTES – July 28, 2016

Mr. Bolton moved approval of the July 28, 2016 Board Meeting Minutes. Ms. McKay seconded the motion and the vote was unanimous in favor of the motion.

PUBLIC COMMENT:

Police Officer Joshua Koop asked about the Board Member selection process for police officers. Ms. Estep provided a brief response and asked that Officer Koop speak with her following the meeting for additional information if he wished.

APPROVAL OF PAYMENT WARRANT: 2016-018

Mr. Bolton moved to approve Payment Warrant number 2016-018. Ms. McKay seconded the motion and the vote was unanimous in favor of the motion.

RATIFY PAYMENT WARRANTS: 2016-13, 2016-14, 2016-15, 2016-16, and 2016-17

Mr. Bolton moved to ratify payment warrants as provided. Ms. McKay seconded the motion and the vote was unanimous in favor of the motion.

ACTUARY – MELISSA MOSKOVITZ: ACTUARIAL VALUATION REPORT AS OF OCTOBER 1, 2015

Ms. Moskovitz attended the meeting via telephone and provided highlights of the Police Officers' Retirement System Fund’s valuation report compiled by Gabriel Roeder Smith (GRS).   Ms. Moskovitz reviewed, among other data, the required contributions, the calculation method and the rate of return. Ms. Moskovitz spoke of the Plan Valuation being required every year as compared to the General Employee Fund only every other year. In addition, Ms. Moskovitz spoke of the State 185 Funds being provided to the Village. Ms. Moskovitz advised the Board that GRS is recommending that the Board look to lower the rate of return (ROR) further over the next number of years, from 7.5% to 7.0%.

Mr. Bolton moved to accept the Actuarial Valuation Report as of October 1, 2015. Ms. McKay seconded the motion and the vote was unanimous in favor of the motion.

INVESTMENT CONSULTANT REPORT

Mr. Dave West from The Bogdahn Group provided information regarding the Plan’s fiscal year end 2016 performance. Mr. West provided an overview of the various Plan investment earnings, rankings, cash flow, and the fees associated with the Fund’s management. Specifically, Mr. West indicated that the Fund’s gross rate of return closed the year up 10.09%.   Based on discussions during the previous Board Meeting and in an attempt to lower management fees, Mr. West recommends moving the Wells Fargo SGRNX funds to a newer, lower share class; Wells Fargo SGRNIX. A brief discussion regarding the recommendation ensued with Mr. West explaining the conceptual difference between the two funds and the fact that there is no difference in the type of investments covered within the funds. Mrs. Holly moved to accept the Investment Consultant’s recommendation to move the Wells Fargo SGRNX funds to the Wells Fargo SGRNIX account. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.

Mr. West then spoke of The Bogdahn Group’s rebranding and name change which is scheduled for early 2017. He indicated that the people within the company will not change. He referenced the informational letter included in the front of the Investment Performance Review. Mr. West reviewed the company’s fee structure and the fact that fees have not increased, with the contract guarantee expiring as of June, 2011. Mr. West proposed a new fee structure for the company to continue to provide investment consulting services. Following a discussion regarding the proposed fee increases, Mr. Bolton moved to approve increasing the consulting fees to $22,000 effective October 1, 2016 with a 3% inflation increase for a contract period of three years (through September 30, 2019). Ms. McKay seconded the motion and the vote was unanimous in favor of the motion.

       

ATTORNEY REPORT

Attorney Adam Levinson provided a handout regarding legal services. In addition, Attorney Levinson spoke about the State 185 funds available to the Village and some of the acceptable options for use of the funds. Attorney Levinson stressed that use of the funds should be negotiated and determined by the Village. He further spoke about a new State requirement that will require a Plan amendment to include a provision in the Plan for a “share plan”. Attorney Levinson provided a brief explanation of a “share plan” to the Board and indicated that he would send a proposed ordinance to the Village once drafted. Ms. Estep advised the Board she would provide a copy of the proposed ordinance to them for their information.   Attorney Levinson requested a motion regarding authorization of a plan amendment. Mrs. Holly moved to authorize the plan amendment as proposed by Attorney Levinson. Mr. Bolton seconded the motion and the vote was unanimous in favor of the motion.    

ADMINISTRATOR REPORT

Mr. Falcon provided the Board with a listing of the 2017 Board Meeting dates and advised the Board that the Chapter 185 funds had been received and deposited by the Village. In addition, Mr. Falcon requested the Board vote on authorizing payment to Board Members to reimburse expenses incurred during authorized travel. The payment would then be ratified by the Board. Mr. Bolton moved to approve payment of authorized expenses related to Pension Board education and training, ratification of which will occur at the next scheduled Board Meeting.   Mrs. Holly seconded the motion and the vote was unanimous in favor of the motion.

ADJOURNMENT

The General Employee Pension Board meeting was adjourned at 10:45 AM.

                                                                                                                        _________________________

                                                                                                                        Herta Holly, Chair

_________________________

Barbara A. Estep, MMC

Village Clerk