11-09-2006 Regular Meeting r +
MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
NOVEMBER 9, 2006
1. CALL TO ORDER
The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday,
November 9,2006 in the Conference Room of the Village Hall. The meeting was called to order at 8:15A.M.
2. ROLL CALL
In order for the record to reflect those present the roll was called with the following members present:
Present
Mary Ross Agosta Angela Dorney
Tom Benton Averill Dorsett
Absent
Herta Holly James McCoy
Joseph Charles
Also Present: Steve Cypen&Alison Bieler,Pension Board Attorneys
Mark A.Malatak;Plan Administrator
Lisa Keeley,Recording Secretary
3. ELECTION OF ACTING CHAIRPERSON
Due to the absence of chairperson, Herta Holly, Mr. Benton moved to elect Mary Ross Agosta as the acting
chairperson for today's meeting. Ms.Dorsett seconded the motion. The motion passed unanimously.
4. APPROVAL OF MINUTES—May 10,2006 and August 10,2006
Ms. Dorsett moved for approval of the minutes as submitted with a second from Mrs. Dorney. The motion
passed unanimously.
5. APPROVAL OF PAYMENT WARRANT—General Employee Warrant No.2007-001
Mr. Benton moved for approval of payment warrant General Employee Warrant No.2007—001 as submitted.
Ms.Dorsett seconded the motion which was passed unanimously.
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General Employee Pension Board November 9,2006 Page 2
6. APPROVAL OF REVISED INVESTMENT POLICY AND ADDENDUMS
Mr.Kirchner reviewed the changes to the Statement of Investment Policy Goals and Guidelines.The intent ofthe
change as directed by the Board was to add international investment securities and a component of small and mid-
cap securities to the portfolio with a change to the target to judge manager performance.
The Investment and Fiduciary Standards paragraph,page 2,was added as advisable under Chapter 112 of State
Statutes. On page 3,the Primary Objective was changed to include the international(EAFE index)equities. The
Investment Guidelines were updated to show the target allocation to include the International Equity Securities
with an adjustment to the Equity and Fixed Income Securities allocation. Page 4,Equity Securities#4 shows the
deletion of the restriction to investments in foreign companies limited to ADRs.
Ms. Bieler recommended statutorially required Section 112.661 language be added to the policy along with
supplementary suggested language. Mrs.Ross Agosta asked if,on Page 9,events that warrant immediate review
of the Manager,be amended to include accusation of criminal,illegal,unethical or inappropriate dealings by an
agency.
Mr.Benton moved for approval of the Investment Policy as amended with the Addendums. Ms.Dorsett seconded
the motion which passed unanimously.
9. OTHER BUSINESS
The Board had discussions regarding the starting time of the meeting.Mrs.Dorney moved that the Board meeting
time be moved to 8:15 am. Mrs.Dorsett seconded the motion which passed unanimously.
7a. INVESTMENT MANAGER REPORT-The Boston Company—Ryan Fitzpatrick
Mr.Fitzpatrick reported that the fund's total market value as of September 30,2006 was$4,493,037. The total
return for the quarter was 4.5%; with a 4.8%return on equities compared to the Russell 1000 Value of 6.2%.
The 4.0%fixed income return beat the Merrill Lynch Government/Corporation return of 3.9%.
Mrs.Ross Agosta asked that Mr.Fitzpatrick include a copy of this quarter's Sector Attribution page with the next
quarter's report for comparison. Mr.Fitzpatrick indicated who would comply with this request.
9. OTHER BUSINESS—Q&A on amendment to General Employee Pension Ordinances
Mr. Cypen and Ms. Bieler discussed the updates to the General Employee Pension Plan with changes to the
language to comply with State Statutes and Federal IRS guidelines. Mr.Benton moved to recommend to the
Village Council, the adoption of the proposed ordinance. Mrs. Dorney seconded the motion which passed
unanimously.
General Employee Pension Board November 9,2006 Page 3
8. CONSULTANTS REPORT-Merrill Lynch—Alan Kirchner
Mr.Kirchner reviewed the investment manager's returns for the quarter ending September 30,2006. The total
market value of the fund was $8,271,920, a net increase of $177,570. The total fund returned 3.6%
underperforming the target index but ranking in the top fifty-fifth percentile compared to the public balance fund
sample.
Based on prior discussion with the Board,Mr.Kirchner made a presentation of possible investment managers that
would meet the General Employee Plan investment objectives. He recommended that the Board consider
presentations from three of the five companies. Mr.Benton moved to direct Mr.Kirchner to find the top three
candidates who show interest in the Plan to make presentations at a future meeting. Ms.Dorsett seconded the
motion which passed unanimously.
10. ADJOURNMENT
The November 9,2006 regular meeting of the General Employee Pension Board was adjourned at 9:40 AM with
a motion from Ms.Dorsett seconded by Mr.Benton,passing unanimously.
Mary Ross Agosta,Acting Chairperson Lisa Keeley,Recording Secretary
General Employee Warrant No. 2007 - 001
For payment from the Village Pension Fund for General Employee's in the Village of Miami Shores,Florida.
To Chair and Administrator,or such other officers,who from time to time are duly designated and authorized by the Board of Trustees of
said Fund,to sign checks,drafts or orders for the payment of money;You are hereby authorized by the Board of Trustees of the Miami
Shores Village Pension Fund for General Employees in Miami Shores Village to pay the amounts listed below for services rendered to the
said Board of Trustees,and to pay the persons named below,hereby certified by the Board of Trustees as being on the Pension list of said
Board via this payment request pensions from 07/01/06 to 11/01/06 inclusive,or for the period of time opposite the name of said persons.
Name(Pensions,Benefits,Services Provided or Obligations) Amount
To be paid by Trustee:
Authorize payment to Davis,Hamilton,Jackson&Associates
Quarterly management fees for the period 10/01/06—12/31/06 $4,723.60
Authorize payment to The Boston Company
Quarterly management fees for the period 07/01/06—09/30/06 $6,696.90
Authorize payment to Merrill Lynch Consulting Services
Quarterly consulting services for the period 07/01/06—09/30/06 $3,437.35
Authorize payment to Salem Trust Company
Quarterly fee for period 07/01/06—09/30/06 $ 1,240.48
L�ADated this 9th day of November,2006 Approved by:
Mary koss Agosta,Actin Chairperson
As Chair of the Board of Trustees Village Pension Fund for
General Employee's in the Village of Miami Shores,Florida