02-14-2008 Regular Meeting MIAMI SHORES VILLAGE
GENERAL EMPLOYEE PENSION BOARD
REGULAR MEETING
FEBRUARY 14,2008
1. CALL TO ORDER
The regular meeting of the Miami Shores Village General Employee Pension Board was held on Thursday,
February 14,2008 in the Conference Room of the Village Hall. The meeting was called to order at 8:15 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 Mary Ross Agosta
Absent
James McCoy
Also Present: Steve Cypen,Pension Board Attorney
Lisa Keeley,Interim Plan Administrator/Recording Secretary
3. APPROVAL OF MINUTES—November 8,2007
Mr. Cypen noted that on Page 1,Item 5,regarding the policies from the Investment Consultant should have
added"to the Manager"at the end of the sentence. Also,on Page 2,Item 7,paragraph 1,the third sentence
should end with "investment consultant", not manager. Same paragraph, last line, delete"bring the best
results"and add"be in the best interest of the Board." In paragraph 2, Ms. Averill's name should read Ms.
Dorsett.
Mr.Benton moved for approval of the November 8,2007 minutes as amended with a second from Mr.Charles.
The motion passed unanimously.
4. APPROVAL OF PAYMENT WARRANT— General Employee Warrant No. 2008—002 &
002A
Mr.Benton moved for approval of payment warrant General Employee Warrant No.2008—002 as submitted.
Ms. Ross Agosta seconded the motion which was passed unanimously.
There was no motion on Warrant No. 2008-002A
Ms. Dorsett arrived at this time.
5. CUSTODIAN REPORT—Salem Trust—Karen Russo
Mrs.Russo was introduced and reviewed the custodial functions of Salem Trust. She gave a brief overview of
the reporting system and indicated that there would be a new reporting software system utilized by Salem Trust
effective 6/l/08. Mrs.Russo advised the Board of the on-line opportunity to view pension plan statements. It
was the consensus of the Board to have a representative from Salem Trust attend meetings annually to provide
General Employee Pension Board February 14,2008 Page 2
INVESTMENT CONSULTANT REPORT-Merrill Lynch-Trevor Smallwood
Mr. Smallwood introduced himself and provided the quarterly returns for the plan. Mr. Smallwood
reviewed the investment manager's returns for the quarter ending December 31, 2007. The total
market value of the fund was$9,307,910,a net decrease of$117,110. The total fund returned-0.6%
down less than the-0.8%return of the target index. The domestic equity portfolio return of-1.9%
beat the Russell 100 return of-3.2%. The international equity portfolio returned 1.6%and outpaced
the EAFE return of-1.7%. The bond portfolio beat the benchmark of 2.9%with a 3.1%return. The
plan ranked in the top forty-one percent compared to the public balance fund sample.
It was noted that for a second quarter, the equity portfolio was over the maximum investment
allowed per the Miami Shores Village investment guidelines. Mr. Smallwood indicated he would
speak with Troy Brown or Daniel Johnson of Merrill Lynch regarding this non-compliance and an
answer would be forthcoming within a week.
7. DISCUSSION AND POSSIBLE ACTION REGARDING INVESTMENT CONSULTANT,
MERRILL LYNCH
Mrs.Keeley reviewed the list of Investment Consultants provided by Mr.Cypen and the FPPTA. Mr.Cypen
recommended the Board send out an Request for Proposal to those firms on the list that were not affiliated with
a"large wire house"that would have a consulting branch,but rather with independent consulting firms. The
Board inquired as to which from his list would be his top three recommendations. He indicated that Milliman,
Inc., Burgess Chambers and Bogdahn Consulting would be his choices. He also added Mr. Jason Pulos of
Asset Consulting Group(not on the list)and Dehab&Associates from the list would also be apropos.
Mr. Cypen said all firms on the list, except the large wire houses, should receive a copy of the Request for
Proposal. He strongly recommended the firm be an independent. A motion to commence the process to
replace the current investment consultant, to instruct the Plan Administrator to send out the Request for
Proposal, to appoint one person from the Board to a RFP committee to review submissions and make
recommendations for a"short" list to the Board and to have a two person committee make final review and
recommendation for the final three contenders to interview was made by Mr. Benton. Ms.Dorsett seconded
the motion which passed unanimously.
After a brief discussion, Ms. Dorsett volunteered to sit on the one person RFP committee.
8. OTHER BUSINESS
There was no other business.
9. ADJOURNMENT
The February 14,2008 regular meeting of the General Employee Pension Board was adjourned at 10:20 AM.
Herta.Holly,Chairperson Lisa Keeley, Recording Secretary
*Due to technical difficulties,an audio record of this meeting is not available.
General Employee Warrant No. 2008 - 002
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 fist of said
Board via this payment request pensions from 11/08/07 to 02/14/08 inclusive,or for the period oftime 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 10/0 1/07—12/31/07 $ 7,786.10
Authorize payment to Aletheia Research and Management,Inc
Quarterly management fees for the period 10/01/07—12/31/07 $ 5,721.83
Authorize payment to Salem Trust Company
Quarterly fee for period 10/01/07—12/31/07 $ An amount not to exceed$2,000.00
Authorize Lump Sum Distribution:
Shakita Ajac Ayodele $ 4,051.15
Dated this 14th day of February,2008 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
General Employee Warrant No. 2008 - 002A
For payment from the Village Pension Fund for General Employee=s in the Village of Miami Shores,Florid/Pension
To Chair and Administrator,or such other officers,who from time to time are duly designated and authorized Trustees of
said Fund,to sign checks,drafts or orders for the payment of money,You are hereby authorized by the Boarthe Miami
Shores Village Pension Fund for General Employees in Miami Shores Village to pay the amounts listed below dered to e
said Board of Trustees,and to pay the persons named below,hereby certified by the Board of Trustees as beinn fist oBoard via this payment request pensions from 11/08/07 to 02/14/08 inclusive,or for the period of time opposiaid
Name(Pensions,Benefits,Services Provided or Obligations) Amount
To be paid by Trustee:
Authorize payment to Merrill Lynch
Quarterly management fees for the period 01/0 1/07—09/30/07 10,766.58
Dated this 14d day of February,2008 Payments app ro ed by:
Holly,Chairperson
Chair of the of Trustees Village Pension Fund for
General Emplo s in the Village of Miami Shores,Florida
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