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06-02-2011 Regular Meeting MIAMI SHORES VILLAGE GENERAL EMPLOYEE PENSION BOARD MEETING The Miami Shores Village General Employee Pension Board and the Police Retirement Pension Board jointly met on Thursday,June 2, 2011 at the C. Lawton McCall Community Center. The meeting was called to order at 8:25 AM with the following individuals present: GENERAL EMPLOYEE PENSION BOARD Averill Dorsett Tom Benton Jim McCoy Angela Dorney Hunt Davis Absent from the General Employee Pension Board was Mary Ross Agosta and Betsy Heagle. Also present were Elizabeth Keeley, Plan Administrator, Dave West from the Bogdahn Group,Steve Palmquist from Gabriel, Roeder Smith Actuarials,and Steve Cypen,special counsel to the Pension Boards. ELECTION OF ACTING CHAIRPERSON Mr. Benton moved to appoint Hunt Davis as the Acting Chairperson. Ms. Dorsett seconded the motion and the vote was unanimous in favor of the motion. APPROVAL OF PAYMENT WARRANT: 2011-004 Ms. Keeley listed the scheduled payments included in the warrant. Ms. Dorsett moved to approve payment of warrant#2011-004. Mr. Benton seconded the motion and the vote was unanimous in favor of the motion. Due to a scheduling conflict, Mr. Palmquist's presentation was moved to a later part of the agenda. INVESTMENT CONSULTANT REPORT Mr. Dave West,a representative of The Bogdahn Group, provided an overview of the first quarter's events which influenced the market and the rate of returns. Mr.West also provided information regarding the performance of the various funds. The specific investment performances referenced are attached hereto and made a part hereof. APPROVAL OF TRANSITION MANAGER Mr. West outlined the options available to the Village regarding liquidating the funds currently held by Aletheia, and made his recommendation to use Capis as the transition manager to effectively and efficiently make the desired change. A lengthy discussion ensued among the Board Members, Mr.West, and Mr.Cypen, regarding the available options,their pros and cons,and the possible impacts. At the conclusion of the discussions, Ms. Dorsett moved to authorize Mr.Cypen and Mr.West to negotiate an acceptable agreement with Wells Fargo,and if not possible,to allow for Salem Trust Company to effect the liquidation of funds. Ms. Dorney seconded the motion and the vote was unanimous in favor of the motion. In order to complete the transfer process, Mr.West has recommended the use of a third party transition manager, Capis. Based on the recommendation, Ms. Dorsett moved to authorize execution of the Capis Agreement previously approved by Mr.Cypen and Mr.West. Ms. Dorney seconded the motion and the vote was unanimous in favor of the motion. APPROVAL OF AUTHORIZED SIGNORS As an administrative, housekeeping issue, Ms. Keeley requested an additional signor be authorized to sign documents, i.e. payment warrants approved by the Board. Ms. Keeley indicated that currently she and Mr. Benton are authorized as the required two signatures. Ms. Keeley suggested that Ms. Estep be added as a signor so that if she or Mr. Benton were not available,documents could still be processed. Ms. Dorsett moved to approve the addition of Barbara Estep as an authorized signor. Ms. Dorney seconded the motion and the vote was unanimous in motion. PRESENTATION OF THE 2009 ACTUARIAL VALUATION Mr.Stephen Palmquist of Gabriel Roeder Smith,offered highlights of the 2009 Actuarial Valuation to the Board, including the anticipated employer contribution. Mr. Palmquist indicated that there has been a required change in the mortality rate schedules and that use of the new rate schedule will result in an increase in the cost of the plans from 1—3%approximately. Due to the lack of a quorum for the latter portion of Mr. Palmquist's presentation, acceptance of the report will be scheduled for the next Pension Board Meeting. ADJOURNMENT The General Employee Pension Board Meeting was adjourned at 10:18 AM. Hunt Davis,Acting Chair f' me Barbara A. Estep, MMC Village Clerk General Employee Warrant - No. 2011 - 004 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 04/01/11 to 05/31/11 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 Aletheia Research and Management,Inc Quarterly management fees for the period 01/01/11 —03/31/11 $ 3,937.17 Authorize payment to Boston Company Quarterly management fees for the period 01/01/11 —03/31/11 $ 1,964.64 Authorize payment to Cutwater Asset Management Quarterly management fees for the period 01/01/11 —03/31/11 $ 1,465.66 Authorize payment to Salem Trust Company Quarterly fee for period 01/01/11 —03/31/11 $ 1,370.14 Authorize payment to Gabriel Roeder Smith&Company Actuarial Services through 03/31/11 Invoice date 04/11/11 $ 1,047.00 Authorize Lump Sum Distribution of Employee Pension Contribution Clara Bender $ 18,382.63 For information only: Ratify previously authorized signature warrant 2011-003 Lump Sum Distribution-Jack St.Thomas $ 6,427.84 Dated this 2nd day of June,2011 Approved by: Hunt Davis,Acting Chairperson As Chair of the Board of Trustees Village Pension Fund for General Employees in the Village of Miami Shores,Florida