02-14-2008 Regular Meeting•
MIAMI SHORES VILLAGE
POLICE PENSION BOARD
REGULAR MEETING
FEBRUARY 14, 2008
1. CALL TO ORDER
The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, February 14, 2008
in the Conference Room of the Village Hall. The meeting was called to order at 8:15 A.M.
2. ROLL CALL
In order for the record to reflect those present, the roll was called with the following members present:
Present
JC Rodriguez Hunt Davis
Lieutenant David McLeod Officer Clifford Vickers
Currently 1 Vacant Seat
Also Present: Steve Cypen, Pension Board Attorney
Lisa Keeley, Interim Plan Administrator / Recording Secretary
3. APPROVAL OF MINUTES — November 8, 2007
• Mr. Cypen noted that on Page 1, Item 5, regarding the policies from the Investment Consultant should have added
"to the Manager" at the end of the sentence. Also, on Page 2, Item 7, paragraph 1, the third sentence should end
with "investment consultant", not manager. Same paragraph, last line, delete "bring the best results" and add "be
in the best interest of the Board."
•
Mr. Davis moved for approval of the November 8, 2007 minutes as amended with a second from Lt. McLeod.
The motion passed unanimously.
4. APPROVAL OF PAYMENT WARRANT — Police Warrant No. 2008 — 003 & 003A
Lt. McLeod moved for approval of payment warrant Police Warrant No. 2008 — 003 as submitted. Mr. Davis
seconded the motion which was passed unanimously.
There was no motion on Warrant 2008-003A.
5. CUSTODIAN REPORT — Salem Trust — Karen Russo
Mrs. Russo was introduced and reviewed the custodial functions of Salem Trust. She gave a briefoverview ofthe
reporting system and indicated that there would be a new reporting software system utilized by Salem Trust
effective 6/1/08. Mrs. Russo advised the Board of the on-line opportunity to view pension plan statement& It was
the consensus of the Board to have a representative from Salem Trust attendmeetings annually to provide updates
on the custodial functions.
Police Pension Board February 14, 2008 Page 2
6. INVESTMENT CONSULTANT REPORT - Merrill Lynch — Trevor Smallwood
Mr. Smallwood introduced himself and provided the quarterly returns for the plan. Mr. Smallwood
reviewed the investment manager's returns for the quarter ending December 31, 2007. The total
market value of the fund was $12,199,180, a net decrease of $88,270. The total fund returned -0.7%
down less than the -0.8% return of the target index. The domestic equity portfolio return of -2.2%
beat the Russell 100 return of -3.2%. The international equity portfolio returned 1.6% and outpaced
the EAFE return of -1.7%. The bond portfolio beat the benchmark of 2.9% with a 3.2% return. The
plan ranked in the top forty-three percent compared to the public balance fund sample.
It was noted that for a second quarter, the equity portfolio was over the maximum investment allowed
per the Miami Shores Village investment guidelines. Mr. Smallwood indicated he would speak with
Troy Brown or Daniel Johnson of Merrill Lynch regarding this non-compliance and an answer would
be forthcoming within a week.
7. DISCUSSION AND POSSIBLE ACTION REGARDING INVESTMENT CONSULTANT,
MERRILL LYNCH
Mrs. Keeley reviewed the list of Investment Consultants provided by Mr. Cypen and the FPPTA. Mr. Cypen
recommended the Board send out an Request for Proposal to those firms on the list that were not affiliated with a
"large wire house" that would have a consulting branch, but rather with independent consulting firms. The Board
inquired as to which from his list would be his top three recommendations. He indicated that Milliman, Inc.,
• Burgess Chambers and Bogdahn Consulting would be his choices. He also added Mr. Jason Pulos of Asset
Consulting Group (not on the list) and Dehab & Associates from the list would also be apropos.
Mr. Cypen said all firms on the list, except the large wire houses, should receive a copy of the Request for
Proposal. He strongly recommended the fine be an independent. A motion to commence the process to replace
the current investment consultant, to instruct the Plan Administrator to send out the Request for Proposal, to
appoint one person from the Board to a RFP committee to review submissions and make recommendations for a
"short" list to the Board and to have a two person committee make final review and recommendation for the final
three contenders to interview was made by Lt. McLeod. Mr. Davis seconded the motion which passed
unanimously.
•
After a brief discussion, Lt. McLeod volunteered to sit on the one person RFP committee.
8. OTHER BUSINESS
There was no other business.
9. ADJOURNMENT
The February 14, 2008 regular meeting of the Police Pension Board was adjourned at 10:20 AM.
Lisa Keeley, Recording Secretary
*Due to technical difficulties, an audio record of this meeting is not available.
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Police Warrant - No. 2008 - 003
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 11/08/07 to 02/14/08 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 10/01/07 —12/31/07 $10,197.10
Authorize payment to Aletheia Research and Management, Inc
Quarterly management fees for the period 10/01/07 —12/31/07 $ 6,557.18
Authorize payment to Salem Trust Company
Quarterly fee for period 10/01/07 —12/31/07 $ Amount not to exceed $2,000.00
Dated this 14th day of February, 2008 Approved by:
JC Rodriguez, Chairperson
As Chair of - of Trustees Village Pension Fund for Police
Officer=s the Village of Miami Shores, Florida