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11-14-2008 Regular Meeting MIAMI SHORES VILLAGE GENERAL EMPLOYEE PENSION BOARD REGULAR MEETING NOVEMBER 14,2008 1. CALL TO ORDER The regular meeting of the Miami Shores Village General Employee Pension Board was held on Friday, November 14,2008 in the Conference Room of the Village Hall and called to order at 8:20 A.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 Joseph Charles Angela Dorney Averill Dorsett Tom Benton James McCoy Absent Herta Holly Also Present: Steve Cypen, Pension Board Attorney Lisa Keeley, Interim Plan Administrator/Recording Secretary 3. ELECTION OF ACTING CHAIRPERSON FOR MEETING Mr. Benton moved that Ms. Ross Agosta be elected acting chairperson for today's meeting. Mr. Charles seconded the motion which passed unanimously. 4. APPROVAL OF MINUTES—September 17,2008 Ms. Dorsett moved for approval of the September 17,2008 minutes as submitted with a second from Mrs. Dorney. The motion passed unanimously. 5. APPROVAL OF PAYMENT WARRANT—General Employee Warrant No.2009-002 Mr. Benton moved for approval of payment warrant General Employee Warrant No. 2009 — 002 as submitted. Ms. Dorsett seconded the motion which was passed unanimously. 6. DISCUSSION AND POSSIBLE ACTION REGARDING PLAN'S RS TAX-QUALIFIED STATUS—Steve Cypen Mr. Cypen briefly discussed the increased focus that the Internal Revenue Service has placed on governmental pension plans specifically the plan document requirements necessary to maintain the tax-qualified status of the plan. Plan documents must be updated by January 31, 2009 or apply for a determination letter with the possible proposed amendments from the IRS. It was the recommendation of Mr. Cypen to hire the firm of Holland&Knight to work on the IRS issue at $250 per hour for a cost not to exceed$25,000 and Mr.Benton so moved to approve the recommendation. Mr. Charles seconded the motion which passed unanimously. General Employee Pension Board November 14,2008 Page 2 8. INVESTMENT CONSULTANT RECOMMENDATIONS—Joe Bogdahn,,The Bogdahn Group Mr. Bogdahn provided a new Investment Policy Statement that was reformatted with the following changes recommended: - Page 2, III/A/I: change bond index from 10% Government credit to Barclay's Captial Aggregate Bond Index(A or better) - Page 3,IV/A/4/e): change the value not to exceed 3%of total fund(current policy has 10%). - Page 3, IVB/2: change language to reflect Collateralized Mortgage Obligations(CMOs)only. - Page 5, VII: language referring to violation of guidelines should be changed from "shall" to "may". Typo correction last line "Violation of five individual guidelines Sl-A may results in a termination recommendation:" - Page 6, IX: replace annually with periodically. - Schedule A,Page 1: BC"A"Aggregrate Ms. Dorsett moved to accept the Investment Consultant recommendations to the Investment Policy Statement with the changes as listed filing the document with the appropriate agencies. Mr. Benton seconded the motion which passed unanimously. 7. INVESTMENT CONSULTANT REPORT—Bryan Bakardjiev,The Bogdahn Group Mr. Bakardjiev noted that there were some changes to the reports to update the market values. Mr. Bakardjiev reviewed the investment manager's returns for the quarter ending September 30, 2008. The total market value of the fund was $7,883,556, a net decrease of$890,452. The total fund returned - 10.02%. The domestic equity portfolio return of-13.40%. The international equity portfolio returned - 19.71%. The fixed income portfolio return of-0.65%. The plan ranked in the eighty-first percentile compared to all public plans in the Total Fund Median. 9. OTHER BUSINESS There was no other business. 10. ADJOURNMENT The November 14, 2008 regular meeting of the General Employee Pension Board was adjourned at 10:00 AM. Mary Ross Agosta,Acting Chairperson Lisa Keeley, Recording Secretary General Employee Warrant - No. 2009 - 002 For payment from the Village Pension Fund for General Employees 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 by circulation of this warrant,pensions from 09/15/08 to 11/07/08 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 07/01/08—09/30/08 $ 7,050.00 Authorize payment to Aletheia Research and Management,Inc Quarterly management fees for the period 07/01/08—09/30/08 $ 4,431.06 Authorize payment to Salem Trust Company Quarterly fee for period 07/01/08—09/30/08 $ 1,178.04 Authorize payment to The Bogdahn Group Quarterly management fees for the period 07/01/08—09/30/08 $ 4,500.00 For information only: Ratify previously authorized Lump Sum Distribution: Rene Colon $ 6,068.13 Dated this 14 day of November,2008 Approved by: A" Maryoss Agosta,Acting j1hairperson As Chair of the Board of Trustees Village Pension Fund for General Employee's in the Village of Miami Shores,Florida