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02-02-2012 Regular MeetingMIAMI SHORES VILLAGE POLICE PENSION BOARD REGULAR MEETING February 2, 2012 1. CALL TO ORDER The regular meeting of the Miami Shores Village Police Pension Board was held on Thursday, February 2, 2012 at the Community Center and was called to order at 8:40 A.M. 2. ROLL CALL In order for the record to reflect those present, the roll was called with the following members present: Present Steve Loffredo JC Rodriguez Lt. David McLeod Ofc. Cliff Vickers Absent Al Davis Also Present: Lisa Keeley, Plan Administrator / Recording Secretary 3. APPROVAL OF MINUTES — November 24, 2008 / December 8, 2011 Mr. Rodriguez moved for approval of the minutes for November 24, 2008 and December 8, 2011 as submitted. Lt. McLeod seconded the motion which was passed unanimously. 4. APPROVAL OF PAYMENT WARRANT — Police Warrant No. 2012 — 002 Lt. McLeod moved for approval of payment warrant Police Warrant No. 2012 — 002 as submitted. Mr. Rodriguez seconded the motion which was passed unanimously. 5. APPROVAL OF THE INVESTMENT POLICY STATEMENT ADDENDUM FOR HEARTLAND ADVISORS As approved at the last Board meeting, the Heartland Advisors Addendum to the Investment Policy Statement guidelines were revised to be limited to 15% of the total portfolio. Mr. Rodriguez moved for approval of the Addendum to the IPS as revised. Lt. McLeod seconded the motion which was passed unanimously. Due to a scheduling conflict, Mr. West presented ahead of The Boston Company. 7. INVESTMENT CONSULTANT REPORT — Bogdahn Group, Dave West Mr. West discussed the European market conditions and how they affected the plan returns. He reviewed the investment manager's returns for the quarter ending December 31, 2011. The total market value of the fund was $12,998,423, a net increase of $869,406. • • • Police Pension Board February 2, 2012 Page 2 The total fund returned 5.77%. The domestic equity portfolio return of 11.66% was under the US Core Large Cap Equity Median return of 12.12%. The international equity portfolio return of 3.02%, was below the International Equity Multi -Cap Core Funds Median return of 3.38%. The fixed income portfolio return of 1.50% beat the US Broad Market Core Fixed Income Median return of 1.12%. The plan ranked in the fifty-seventh percentile compared to all public plans in the Total Fund Median.. 6. INVESTMENT MANAGER REPORT — The Boston Company - Jerry Navarette & Jessica Rochlin Mr. Navarette reviewed the management at The Boston Company as well as the overall ten year performance. Ms. Rochlin reviewed the sector attributions and the dynamic value of the plan. The quarterly return for the plan was 14.75%. 8. OTHER BUSINESS Request to attend FPPTA Conference June 2012 Lt. McLeod and Officer Vickersrequested that the Board approve the costs to attend the upcoming FPPTA conference. After discussion regarding the conference, Lt. McLeod moved to authorize two Police Board of Trustee members to attend the conference with costs not exceed $1000 per member. Mr. Rodriguez seconded the motion which passed unanimously. Discussion regarding Miami Shores Village Resolution No. 1207 Lt. McLeod requested information from the Trustees that are also Council Members regarding the Florida League of Cities Initiative regarding police officer pension and disability presumption reforms to make the plans sustainable, sound and secure for current and future police officers. To the best of his knowledge, Mr. Loffredo clarified the presumption removal and that some disabilities are non -service related. Discussion regarding the Chapter 185 monies from the State Mr. Axelrad, PBA attorney was present and made inquiries regarding the Chapter 185 money. Discussion regarding an impact study to implement the minimum benefits ensued. It was requested that the actuary provide a cost estimate for an impact study. 9. ADJOURNMENT The February 2, 2012 meeting of the Police Pension Board was adjourned at 10:06 AM. Lisa Keeley, Recording Secretary • • • Police Warrant - No. 2012 - 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 12/08/11 to 01/31/12 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 Boston Company Quarterly management fees for the period 10/01/11-12/31/11 Authorize payment to Cutwater Asset Management Quarterly management fees for the period 10/01/11-12/31/11 Authorize payment to Heartland Advisors Quarterly management fees for the period 10/01/11-12/31/11 Authorize payment to The Bogdahn Group Quarterly consulting fees for the period 10/01/11-12/31/11 Authorize payment to Cypen & Cypen Legal Counsel Services through 12/08/11 Invoice #6150 Authorize payment to Salem Trust Company Quarterly fee for period 10/01/11-12/31/11 Authorize payment to Gabriel Roeder Smith & Company Actuarial Services through 11/30/11 Invoice date 12/09/11 Actuarial Services through 12/31/11 Invoice date 01/09/12 Authorize payment to Holland & Knight LLP total costs not to exceed $25,000 Legal Counsel IRS Review 11/04/11 Invoice #2725105 Dated this 2nd day of February, 2012 Approved by: •1 vo .hen Loffr As Chair o the Board of T • ' illage Pension Fund for Police Officer's in the Village of Miami Shores, Florida $ 2,323.91 $ 2,429.20 $ 3,392.00 $ 5,000.00 $ 325.00 $ 1,943.05 $ 3,656.00 $ 2,639.00 $ 75.00