02-08-2007 Regular Meeting•
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MIAMI SHORES VILLAGE
POLICE PENSION BOARD
REGULAR MEETING
FEBRUARY 8, 2007
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, February 8, 2007
in the Conference Room of the Village Hall. The meeting was called to order at 8:30A.M.
2. ROLL CALL
In order for the record to reflect those present, the roll was called with the following members present:
Al Davis
JC Rodriguez
Present
Lieutenant David McLeod
Officer Clifford Vickers
Absent
Kurt Gustinger
Also Present: Steve Cypen, Pension Board Attorney
Mark A. Malatak, Plan Administrator
Lisa Keeley, Recording Secretary
Al Davis passed the gavel to Mr. Rodriguez for the remainder of the meeting.
3. APPROVAL OF MINUTES — November 9, 2006 and January 10, 2007
Ofc. Vickers moved for approval of the November 9, 2006 minutes as submitted with a second from Lt. McLeod.
The motion passed unanimously. Lt. McLeod moved for approval of the January 10, 2007 minutes as submitted.
The motion was seconded by Ofc. Vickers and passed unanimously.
4. APPROVAL OF PAYMENT WARRANT — Police Warrant No. 2007 - 002
Mr. Davis discussed the fees paid to both the investment managers and the investment consultant.
Ofc. Vickers moved for approval of payment warrant Police Warrant No. 2007 — 002 as submitted. Lt. McLeod
seconded the motion which was passed unanimously.
6. CONSULTANTS REPORT - Merrill Lynch — Alan Kirchner
Mr. Kirchner reviewed the investment manager's returns for the quarter ending December 31, 2006. The total
• market value of the fund was $10,884,880, a net increase of $365,220. The total fund returned 4.6% exceeding
the target index but ranking in the sixty-third percentile compared to the public balance fund sample.
Police Pension Board February 8, 2007 Page 2
• Al Davis left at this time.
5. DISCUSSION AND POSSIBLE ACTION REGARDING THE MONEY MANAGER
Mr. Kirchner confirmed the Board's direction based on the last few meetings with the objective as terminating the
Plan's contract with Davis, Hamilton, Jackson and Associates due to underperformance over the five-year period
and confirming interest in an alternate investment firm. Lt. McLeod made a motion for the Board to pursue
Aletheia Research and Management subject to appropriate contract negotiation and approval from the Board
attorney. Ofc. Vickers seconded the motion which passed unanimously.
Based on this premise, an overview of the changes to the Plan's asset allocation was provided showing the move
to Small/Midcap Equities, International Equities, Large Cap Growth (Aletheia) and Large Cap Value (Boston
Company) with a weighting in Fixed Income through the Boston Company. Mr. Kirchner provided an Addendum
to the Statement of Investment Policy for the Boston Company Revised February 8, 2007 based on the new asset
allocations. The Board reviewed the changes and accepted them as the changes were indicative of prior Board
actions.
Lt. McLeod then moved to terminate Davis, Hamilton, Jackson & Associates coincident with entering into an
agreement with Aletheia Research and Management subject to attorney approval. Ofc. Vickers seconded the
motion which passed unanimously.
Review of the Statement of Investment Policy Addendum for Aletheia Research and Management was provided
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by Mr. Kirchner and Mr. Cypen. Mr. Cypen noted that the agreement must have references to Edgewood
Management removed. Additionally, on page 1, under Guidelines #6, it should read "Convertible bonds and
preferred stocks shall be prohibited. He also indicated that on page 2, paragraph 1, "Private placements shall be
prohibited." Page 2, Investment Objective #2, should quantify "over the longer term" to a 3-5 year period.
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Lt. McLeod moved for approval of the Statement of Investment Policy Addendum for Aletheia Research and
Management with the changes as indicated by Mr. Cypen. Ofc. Vickers seconded the motion which passed
unanimously.
9. OTHER BUSINESS
There was no other business.
10. ADJOURNMENT
The February 8, 2007 regular meeting of the Police Pension Board was adjourned at 9:35 AM with a motion from
Lt. McLeod seconded by Ofc. Vickers, passing unanimously.
Lisa Keeley, Recording Secretary
Police Warrant - No. 2007 - 002
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 11/01/06 to 02/01/07 inclusive, or for the period of time opposite the name of said persons.
Name • ensions, Benefits Services Provided or Obli:ations Amount
To be paid by Trustee:
Authorize payment to Davis, Hamilton, Jackson & Associates
Quarterly management fees for the period 01/01/07 — 03/31/07 $ 6,048.40
Authorize payment to The Boston Company
Quarterly management fees for the period 10/01/06 —12/31/06 $ 8,898.18
Authorize payment to Merrill Lynch Consulting Services
Quarterly consulting services for the period 10/01/06 —12/31/06 Not to exceed $4,250.00
Authorize payment to Salem Trust Company
Quarterly fee for period 10/01/06 —12/31/06 $ 1,754.07
Authorize Lump Sum Distribution ofEmployee Pension Contribution
Matthew Westbrook $ 1,030.00
Dated this 8th day ofFebruary, 2007 Approved by:
JC Rodriguez, Chairperson
As •+,6 ofthe Board ofTrustees Village Pension Fund for Police
Officer's in the Village of Miami Shores, Florida