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05-11-2006 Regular Meeting• • • MIAMI SHORES VILLAGE POLICE PENSION BOARD REGULAR MEETING MAY 11, 2006 1. CALL TO ORDER The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, May 11, 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 Al Davis JC Rodriguez Lieutenant David McLeod Officer Clifford Vickers Absent Kurt Gustinger Also Present: Mark A. Malatak, Plan Administrator Lisa Keeley, Recording Secretary JC Rodriguez arrived at this time. 3. APPROVAL OF PAYMENT WARRANT — Police Warrant No. 2006 — 004 Lt. McLeod moved for approval of Payment Warrant no. 2006 -004 which includes the authorization of benefits payable as a result of DROP participation for Kevin Reed who elected 100% joint and survivor annuity in the amount of $3,461.08 monthly. Officer Vickers seconded the motion which passed unanimously. 4A. INVESTMENT MANAGER REPORT - Davis, Hamilton, Jackson & Associates - Janna Woods Ms. Woods reviewed the performance of the fund with a total market value of $4,930,354 as of March 31, 2006. The return for the period was 1.6%; the equity return of 2.7% beaten by the Russell 1000 Growth return of 3.1% and the fixed income return of -0.3% beating the Lehman Government/Corporate return of -0.4%. 4B. INVESTMENT MANAGER REPORT - The Boston Company — Ryan Fitzpatrick Mr. Fitzpatrick reported that the fund's total market value as of March 31, 2006 was $5,647,660. The total return for the quarter was 3.5%; with a 6.1% return on equities compared to the Russell 1000 Value of 5.9%. The -1.1% fixed income return was just under the Merrill Lynch Govemment/Corporation return of -1.0%. • • • Police Pension Board May 11, 2006 Page 2 5. INVESTMENT CONSULTANTS REPORT - Merrill Lynch — Alan Kirchner Mr. Kirchner reviewed the investment manager's returns for the quarter ending March 31, 2006. The total market value of the fund was $10,576,960, a net increase of $263,170. The total fund returned 2.6% ranking in the bottom sixteen percentile compared to the public balance fund sample. Mr. Kirchner addressed two main issues. First, the growth style of Davis, Hamilton, Jackson and Associates and their performance against other growth style managers. Secondly, Mr. Kirchner spoke of both international investing as well as small to mid -cap stocks. Mr. Kirchner recommended an allocation be made to both international and small to mid -cap stocks for the long term. He requested a special meeting be held to discuss investment possibilities. The Board agreed and instructed administration to schedule a special meeting when most members are available. 6. OTHER BUSINESS There was no other business. 7. ADJOURNMENT The May 11, 2006 regular meeting of the Police Pension Board was adjourned at 9:40 AM. Al Davis, Chairperson Lisa Keeley, Recording Secretary .1 1 • • • Police Warrant - No. 2006 - 004 For payment from the Village Pension Fund for Police Officer'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 Police Officer's 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 11/01/05 to 03/31/06 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 fres for the period 01/01/06 — 03/31/06 Quarterly management fees for the period 04/01/06 — 06/30/06 Authorize payment to The Boston Company Quarterly management fees for the period 10/01/05 - 12/31/05 Quarterly management fees for the period 01/01/06 — 03/31/06 Authorize payment to Merrill Lynch Consulting Services Quarterly consulting services for the period 10/01/05 —12/31/05 Quarterly consulting services for the period 01/01/06 — 03/31/06 Authorize payment to Salem Trust Company Quarterly fee for period 10/01/05 —12/31/05 Quarterly fee for period 01/01/06 — 03/31/06 Ratify Lump Sum Distribution: Matthew Westbrook — previously approved by signature Warrant No. 2006 - 003 $ 6,066.78 $ 6,162.94 $ 8,188.30 $ 8,463.56 $ 2,725.17 $ 3,041.85 $ 1,569.53 $ 1,591.79 $27,288.20 Authorize Benefits Payable as a Result of DROP Participation commencing November 1, 2005 Kevin Lee Reed (100% Joint and Last Survivor Annuity) $ 3,461.08/monthly Dated this 11th day of May, 2006 Approved by: Al Davis, Chairperson As Ch ofthe Board of Trustees Village Pension Fund for Police Offi s in the Village of Miami Shores, Florida