11-08-2007 Regular Meeting•
MIAMI SHORES VILLAGE
POLICE PENSION BOARD
REGULAR MEETING
NOVEMBER 8, 2007
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, November 8, 2007
in the Conference Room of the Village Hall. The meeting was called to order at 8:40A.M.
2. ROLL CALL
In order for the record to reflect those present, the roll was called with the following members present:
Present
Hunt Davis Lieutenant David McLeod Officer Clifford Vickers
Absent
JC Rodriguez
Also Present: Steve Cypen, Pension Board Attorney
Lisa Keeley, Interim Plan Administrator / Recording Secretary
EMERGENCY AGENDA ITEM - ELECTION OF ACTING CHAIRPERSON
Due to the absence of chairperson, JC Rodriguez, a motion to alter the agenda to include an emergency to elect an
acting chairman was made by Lt. McLeod with a second from Ofc. Vickers. The motion passed imanimously. A
motion to elect Hunt Davis as acting chairman for today's meeting was made by Lt. McLeod and seconded by
Ofc. Vickers. The motion passed unanimously.
3. APPROVAL OF MINUTES — August 9, 2007
Lt. McLeod moved for approval of the August 9, 2007 minutes as submitted. Ofc. Vickers seconded the motion
which passed unanimously.
4. APPROVAL OF PAYMENT WARRANT — Police Warrant No. 2008 - 001
Ofc. Vickers moved for approval of payment warrant Police Warrant No. 2008 — 001 as submitted. Lt McLeod
seconded the motion which was passed unanimously.
5. INVESTMENT MANAGER REPORT — The Boston Company — Jerry Navarrete
Mr. Navarrete reported that the funds total market value as of September 30, 2007 was $7,224,517. The total
return for the quarter was 2.92%; with a 0.11% return on equities compared to the Russell 1000 Value of -0.24%.
The 3.0% fixed income return was comparable to the Merrill Lynch Government/Corporation return of 3.01%.
Mr. Cypen noted that the asset allocation was not in compliance with the investment guidelines as approved in
May 2007. The new policies were not forwarded by the Investment Consultant to the Manager. However, the
error will be corrected going forward.
Police Pension Board November 8, 2007 Page 2
• 6. INVESTMENT CONSULTANT REPORT - Merrill Lynch — Joe Liles
Mr. Liles introduced himself and read a statement from Merrill Lynch regarding the SEC investigation into certain
aspects of Merrill Lynch's pension consulting business in Florida. At this time Mike Callaway is on a leave of
absence. Merrill Lynch is committed to providing the appropriate services during this period Mr. Liles will not
permanently be assigned to the Miami Shores Village account. He reviewed the current Ponte Vedre team that
will continue to consult with Miami Shores Village.
Mr. Liles reviewed the investment manager's returns for the quarter ending September 30, 2007. The total
market value of the fund was $12,287,450, a net increase of $732,990. The total fund returned 2.9% ranking in
the top forty-one percent compared to the public balance fund sample.
7. DISCUSSION AND POSSIBLE ACTION REGARDING INVESTMENT CONSULTANT,
MERRILL LYNCH
Mr. Cypen spoke of the SEC investigation into Merrill Lynch's consulting business. However, the SEC is not
releasing any details on the case. It was Mr. Cypen's recommendation to begin a search for a new investment
consultant. He also recommended not paying the any invoices for consultant fees as there may be damages for
which the Village would be eligible depending on the outcome of the SEC investigation. Damages may include
inappropriate compensation or damages that would have resulted from the "pay -to -play" or Merrill Lynch
recommending a manager that would not necessarily be in the best interest of the Board.
• Mr. Davis stated that the Board should provide due diligence in this process. Lt McLeod moved to direct Mrs.
Keeley to provide a list of investment consultants for consideration at the next Board meeting. Ofc. Vickers
seconded the motion which passed unanimously.
•
8. OTHER BUSINESS
There was no other business.
9. ADJOURNMENT
The November 8, 2007 regular meeting of the Police Pension Board was adjourned at 10:05 AM.
„,./;./t7")
Hunt Davis, Acting Chairperson Lisa Keeley, Recording Secretary
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Police Warrant - No. 2008 - 001
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 ofsaid Board
by circulation of this warrant, pensions from 08/09/07 to 11/08/07 inclusive, or for the period of time opposite the name of said persons.
Name (Pensions, Benefits, Services Provided or Obligations) Amount
To be pall by Trustee:
Authorize payment to The Boston Company
Quarterly management fees for the period 07/01/07 - 09/30/07 $10,484.04
Authorize payment to Aletheia Research and Management, Inc
Quarterly management fees for the period 07/12/07 - 09/30/07 $ 5,748.40
Authorize payment to Salem Trust Company
Quarterly fee for period 07/01/07 - 09/30/07 $ 1,838.42
Dated this 8u' day of November, 2007 Approved by:
fet-Redriguee, Chairperson
l- ui+'Dcavis, Acf r
As Chair ofthe Board of Trustees Village Pension Fund for Police
Officer's in the Village of Miami Shores, Florida