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11-08-2007 Regular Meeting MIAMI SHORES VILLAGE GENERAL EMPLOYEE PENSION BOARD REGULAR MEETING NOVEMBER 8,2007 1. CALL TO ORDER The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday, November 8,2007 in the Conference Room of the Village Hall. The meeting was called to order at 8:40 A.M. 2. ROLL CALL In order for the record to reflect those present,the roll was called with the following members present: Present Herta Holly Joseph Charles Angela Dorney Averill Dorsett Tom Benton James McCoy Absent Mary Ross Agosta Also Present: Steve Cypen,Pension Board Attorney Lisa Keeley,Interim Plan Administrator/Recording Secretary 3. APPROVAL OF MINUTES—August 9,2007 Mr. Benton moved for approval of the August 9,2007 minutes as submitted with a second from Ms. Dorsett. The motion passed unanimously. 4. APPROVAL OF PAYMENT WARRANT—General Employee Warrant No.2008-001 Ms.Dorsett moved for approval of payment warrant General Employee Warrant No.2008—001 as submitted. Mr. Charles seconded the motion which was passed unanimously. 5. INVESTMENT MANAGER REPORT—The Boston Company— Jerry Navarrete Mr.Navarrete reported that the funds total market value as of September 30,2007 was$5,544,581. The total return for the quarter was 2.96%;with a 0.06%return on equities compared to the Russell 1000 Value of-0.24%. The 2.93%fixed income return was comparable to the Merrill Lynch Government/Corporation return of 3.01%. Mr. Cypen noted that the asset allocation was not in compliance with the investment guidelines as approved in May 2007. The new policies were not forwarded by the Investment Consultant to the Manager. However,the error will be corrected going forward. General Employee Pension Board November 8, 2007 Page 2 6. INVESTMENT CONSULTANT REPORT-MerriIl Lynch-Joe Liles Mr.Liles introduced himself and read a statement from Merrill Lynch regarding the SEC investigation into certain aspects of Merrill Lynch's pension consulting business in Florida. At this time Mike Callaway is on a leave of absence. Merrill Lynch is committed to providing the appropriate services during this period. Mr.Liles will not permanently be assigned to the Miami Shores Village account. He reviewed the current Ponte Vedre team that will continue to consult with Miami Shores Village. Mr. Liles reviewed the investment manager's returns for the quarter ending September 30,2007. The total market value of the fund was$9,425,020,a net increase of$271,530. The total fund returned 2.3%ranking in the top forty-one percent compared to the public balance fund sample. 7. DISCUSSION AND POSSIBLE ACTION REGARDING INVESTMENT CONSULTANT, MERRILL LYNCH Mr. Cypen spoke of the SEC investigation into Merrill Lynch's consulting business. However,the SEC is not releasing any details on the case. It was Mr. Cypen's recommendation to begin a search for a new investment consultant. He also recommended not paying the any invoices for consultant fees as there may be damages for which the Village would be eligible depending on the outcome of the SEC investigation. Damages may include inappropriate compensation or damages that would have resulted from the "pay-to-play" or Merrill Lynch recommending a manager that would not necessarily be in the best interest of the Board. Mr.Charles moved to direct Mrs.Keeley to provide a list of investment consultants for consideration at the next Board meeting. Ms. Dorsett seconded the motion which passed unanimously. 8. OTHER BUSINESS. There was no other business. 9. ADJOURNMENT The November 8,2007 regular meeting of the General Employee Pension Board was adjourned at 10:05 AM. Herta Holly,Chairperson Lisa Keeley,Recording Secretary General Employee Warrant No. 2008 - 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 08/01/07 to 11/8/07 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 The Boston Company Quarterly management fees for the period 07/01/07—09/30/07 $ 8,081.20 Authorize payment to Aletheia Research and Management,Inc Quarterly management fees for the period 07/12/07—09/30/07. $ 5,036.01 Authorize payment to Salem Trust Company Quarterly fee for period 07/01/07—09/30/07 $ 1,410.00 Authorize Lump Sum Distribution: Kimberly James $ 15,465.76 Joseph Remy Paillant $ 9,560.52 Dieune Benjamin $ 1,980.08 Robert McBride $ 4,051.15 Authorize Benefits Payable as a Result of Retirement Michael Melanefy (Vested Employee) $ 233.22/monthly Election of Modified Cash Refund Annuity Dated this 8th day of November,2007 Payments approved by: Herta Holly,Chairperson As Chair of the Board of Trustees Village Pension Fund for General Employee's in the Village of Miami Shores,Florida