Minutes of the Regular Meeting of The s10

Minutes of the Regular Meeting of the Board of Trustees of the Monroe County Employees Retirement System

Regular meeting of the Board of Trustees of the Monroe County Employees Retirement System held on June 25, 2007 at 5:00 P.M. in the Board of Commissioner’s Meeting Room at 125 E. Second St., Monroe, Michigan.

PRESENT: Clayton Charron, Nancy Colpaert (left at 6:30), George Jondro, Pamela Jones, Jim Morgan, and David Thompson.

ABSENT: Jim Davies and Bill Sisk excused, Henry Lievens absent.

ALSO PRESENT: Debra Elmore, Retirement Specialist; Charles Londo, Secretary; Sam Galanis, Michael Cho, Consultants and Thomas Michaud, Legal Counsel.

With a quorum being present, Chairman Thompson called the meeting to order at 5:00 P.M.

Motion by George Jondro, supported by Nancy Colpaert to approve minutes of the May 29, 2007 meeting as submitted. All in favor, motion carried.

Motion by Pam Jones, supported by Jim Morgan to approve agenda as submitted. All in favor, motion carried.

Citizens Time – none

Presentations - Lisa George – NWQ Investment Management & Tradewinds Global Investors

Ms. George advised the Board that Nuveen Investment is to be acquired by private equity group led by Madison Dearborn Partners, LLC. There should be no change in personnel or they way the portfolio is handled. Mr. Cho will send the press release to the Trustees.

NWQ has a net gain of $2.2 million year to date for 2007. They are ahead of their benchmark for year to date. Their benchmark is S&P 500/Citigroup Value & the Russell 1000 Value. Tradewinds Global has a net gain of $1.5 million year to date for 2007 but are below their benchmark that is MSCI EAFE. This is due to a 6.4% cash holding in the portfolio. This has cost 400 basis points. Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 2

There were three presentations for International Real Estate:

Mark Blinder from Clarion Real Estate Securities that is a division of ING (International Netherlands Group). They are #10 on the Forbes Annual Global List for 2007.

Michael Guetzkow, from Chohen & Steers International Realty Fund, which is a REITS manager. This portfolio has been in place for two years. The portfolio is up 44% from last year.

Mark Rappaport with Alpine International Real Estate Equity Fund. The company has been doing business since 1989. Their best performance is in a bear market.

Dave Thompson asked Mr. Galanis how much the Board should invest in one of these companies. Mr. Galanis stated that $2 million would be a good start. Mr. Thompson would like Mr. Galanis to put together a presentation on these three money managers for July’s meeting. The Trustees need to review the three booklets for next month’s meeting and then the Board can move forward. Mr. Galanis will let the Board know where the $2 million should be transferred.

Motion by George Jondro, supported by Pam Jones to approve consent agenda.

A. Retirements – Eugene Baker, Mental Health June 1 Paula Wells-Baker, Mental Health June 1 Debra Beckman, Mental Health June 1 Diane Bezeau, Mental Health June 1 Carolyn Bitz, Mental Health June 1 Joni Bosse, Mental Health June 1 Janet Bozek, Mental Health June 1 Debra Cagle, Mental Health June 1 Karen S. Cooley, Mental Health June 1 Robert DeSmith, Mental Health June 1 Linda Durell, Mental Health June 1 Donna Evans, Mental Health June 1 Candice Goodwin, Mental Health June 1 Rose Hopkins, Mental Health June 1 Theresa Joyce, Mental Health June 1 John Kornowski, Mental Health June 1 Marilyn Malters, Mental Health June 1 Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 3

Christine Meyer, Mental Health June 1 Stephanie Morich, Mental Health June 1 Fred Richardson, Mental Health June 1 Rudolph Shorter, Mental Health June 1 Joann Swinkey, Mental Health June 1 Jean VanDine, Mental Health June 1 Diane Barrett, Deferred, Finance June 18

B. Financial Reports – On File with Retirement Specialist

1. Comerica Bank Consolidated Statement, Cash Account Statement, Alliance Capital Management, Anchor Capital Advisors, Boyd Watterson Asset Management, Brandywine Asset Management Global, Brandywine Asset Management Large Cap, NWQ Investment Management and International Value Equity, Pacific Income Advisors, Templeton Portfolio Advisors for period 05/01/07 through 05/31/07 and Securities Lending Statement for April 2007.

2. Boyd Watterson Asset Management, LLC portfolio appraisal for period ending May 31, 2007.

3. Brandywine Global Investment Management – Global Fixed Income and Large Cap Value (PCG) Portfolio for May 2007.

4. Morgan Stanley Vision Account for AllianceBerstein Regent, Anchor Capital Advisors, Brandywine Global Fixed, NWQ LCV, NWQ International and Templeton Private Client Group for period ending May 31, 2007.

5. Pacific Income Advisors fixed income quarterly report for period ending April 30 and May 31, 2007.

6. Tradewinds Global Investors investment portfolio for period ending March 31, 2007.

7. AllianceBernstein management portfolio summary for period ending March 31, 2007.

C. Communication

1. Brandywine Global Investment Management Disaster Recovery. Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 4

2. Letter dated May 29, 2007 from Franklin Templeton concerning changes in the portfolio management team.

3. GRS News Scan, May 2007.

4. Hartford Investment Management fixed income outlook, May 2007.

5. Letter dated May 22, 2007 from Tradewinds Global Investors concerning performance summary.

All in favor, motion carried.

Invoices

Motion by Pam Jones, supported by Clayton Charron to approve for payment the following invoices, subject to house audit:

1. Invoice dated May 2, 2007 in the amount of $30,600.73 from AllianceBernstein for investment management services for 1st quarter, 2007.

2. Invoice #21464 dated June 11, 2007 in the amount of $35,576.00 from Boyd Watterson Asset Management for investment management services for 1st quarter, 2007.

3. Invoice #37166 dated May 14, 2007 from Brandywine Global Investment Management for investment management services for 1st quarter 2007.

4. Invoice dated May 31, 2007 in the amount of $13,731.20 from Comerica Commercial Card Service for hotel rooms for 2007 NCPERS Conference.

5. Invoices in the amount of $4,400.00 from Steven Dovitz, M.D. for independent medical re-exams for disability retirees Johnna Althouse, Ronald Bitz, Scott Ferguson, Roger Lambert, John Neely, Denise Smith, Sheila Stiner and Robert Vanisacker.

6. Invoice #101411 dated May 30, 2007 in the amount of $13,875.00 from Gabriel Roeder Smith & Co. for regular actuarial services for April & May 2007.

7. Invoice #0409-576-19 dated April 9, 2007 in the amount of $77.28 from Monroe County Printing for envelopes. Minutes Monroe County Employees Retirement System Board of Trustees

June 25,2007 – Page 5

8. Invoice dated May 15, 2007 in the amount of $66,339.33 from Morgan Stanley for management fees of vision accounts for 1st quarter 2007.

9. Invoice dated May 30, 2007 in the amount of $700.00 from North Alabama Bone & Joint Clinic for per-payment of re-examination of Mark Winter, disability retiree.

10. Reimbursement in the amount of $261.90 to Clayton Charron for expenses from the 2007 MAPERS Spring Conference.

11. Reimbursement in the amount of $208.76 to Debra Elmore for expenses from the 2007 NCPERS Conference.

12. Reimbursement in the amount of $39.25 to Pamela Jones for expenses from the 2007 NCPERS Conference.

13. Reimbursement to David Thompson in the amount of $77.43 for expenses from the 2007 NCPERS Conference and $293.17 for the 2007 MAPERS Spring Conference.

Refunds

Motion by Jim Morgan, supported by Clayton Charron to pay the following refunds:

1. Diane Barrett, deferred, Finance Department $ 6,320.01 2. Edward Jones (FBO Diane Barrett) $13,215.00 3. Alan Brown, Road Commission $ 3,509.49 4. Kenneth Browne, Sheriff’s Office $ 3,115.87 5. Candice Goodwin, Mental Health $ 4,978.40 6. Marilyn Malters, Mental Health $ 2,753.14 7. Oppenheimer Funds (FBO Marilyn Malters) $ 6,528.14 8. Andrew Spoering, Sheriff’s Office $ 3,634.03

All in favor, motion carried. Minutes Monroe County Employees Retirement System Board of Trustees

June 25,2007 – Page 6

Retirement Payments

Motion by George Jondro, supported by Clayton Charron to pay the following retirement payments:

1. Eugene Baker, Mental Health $ 786.58 2. Paula Wells-Baker, Mental Health $1,245.71 3. Diane Barrett, deferred, Finance Department $ 358.15 4. Debra Beckman, Mental Health $1,045.93 5. Diane Bezeau, Mental Health $ 471.84 6. Carolyn Bitz, Mental Health $1,526.28 7. Joni Bosse, Mental Health $ 683.18 8. Janet Bozek, Mental Health $ 855.74 9. Debra Cagle, Mental Health $ 485.73 10. Karen Cooley, Mental Health $ 762.42 11. Robert DeSmith, Mental Health $1,082.20 12. Rosemary Dunholter, Employment & Training $2,038.84 (May – 809.40; June – 1,229.44) 13. Linda Durell, Mental Health $ 620.81 14. Donna Evans, Mental Health $1,704.43 15. Candice Goodwin, Mental Health $1,381.89 16. Rose Hopkins, Mental Health $1,246.79 17. Theresa Joyce, Mental Health $ 953.07 18. John Kornowski, Mental Health $2,088.25 19. Marilyn Malters, Mental Health $3,440.63 20. Christine Meyer, Mental Health $1,519.08 21. Stephanie Morich, Mental Health $1,627.19 22. Fred Richardson, Mental Health $2,011.36 23. Rudolph Shorter, Mental Health $1,054.55 24. Joann Swinkey, Mental Health $ 931.87 25. Jean VanDine, Mental Health $2,323.47

Communications

1. Application from Peggy Howard, Human Resources to purchase one month of CETA Service Credit.

Motion by Pam Jones, supported by Clayton Charron to accept, place on file and grant the request.. All in favor, motion carried. Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 7

2. Letter dated May 15, 2007 from Janet Bozek, Monroe Community Mental Health Authority concerning reciprocal service for Mark Welliver.

Motion by Jim Morgan, support by George Jondro to accept and place on file. All in favor, motion carried.

3. Medical report dated June 14, 2007 from Dr. Steven Dovitz concerning re- examination of disability retiree Johnna Althouse.

Motion by George Jondro, supported by Clayton Charron to accept and place on file. All in favor, motion carried.

4. Medical report dated June 7, 2007 from Dr. Steven Dovtiz concerning re- examination of disability retiree Ronald Bitz.

Motion by Jim Morgan, supported by George Jondro to accept and place on file. All in favor, motion carried.

5. Medical report dated May 30, 2007 from Dr. Steven Dovtiz concerning re- examination of disability retiree Scott Ferguson.

Motion by Pam Jones, supported by Clayton Charron to accept and place on file. All in favor, motion carried.

6. Medical report dated June 13, 2007 from Dr. Steven Dovitz concerning re- examination of disability retiree Roger Lambert.

Motion by George Jondro, supported by Jim Morgan to accept and place on file. All in favor, motion carried.

7. Medical report dated May 24, 2007 from Dr. Steven Dovtiz concerning re- examination of disability retiree John Neely.

Motion by Pam Jones, supported by Clayton Charron to accept and place on file. All in favor, motion carried.

8. Medical report dated June 6, 2007 from Dr. Steven Dovtiz concerning re- examination of disability retiree Denise Smith.

Motion by Jim Morgan, supported by Pam Jones to accept and place on file. All in favor, motion carried. Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 8

9. Medical report dated June 8, 2007 from Dr. Steven Dovitz concerning re- examination of disability retiree Sheila Stiner.

Motion by Clayton Charron, supported by George Jondro to accept and place on file. All in favor, motion carried.

10. Medical report dated May 31, 2007 from Dr. Steven Dovitz concerning re- examination of disability retiree Robert Vanisacker.

Motion by Clayton Charron, supported by Jim Morgan to accept and place on file. All in favor, motion carried.

Proposed Resolutions

Motion by Pam Jones, supported by Clayton Charron to accept and place on file the following resolutions:

1. Johnna Althouse, Register of Deeds – Disability Re-examination 2. Ronald Bitz, Road Commission – Disability Re-examination 3. Scott Ferguson, Youth Center – Disability Re-examination 4. Roger Lambert, Central Dispatch – Disability Re-examination 5. John Neely, Sheriff’s Office – Disability Re-examination 6. Sheila Stiner, Sheriff’s Office – Disability Re-examination 7. Denise Smith, Sheriff’s Office – Disability Re-examination 8. Robert Vanisacker, Road Commission – Disability Re-examination 9. Patricia Beach, County Health – Application for Service Retirement 10. Jennifer Hensley, Library – Application for Service Retirement 11. Judy Kassuba, Sheriff’s Office – Application for Service Retirement 12. Deborah Libstorff, County Health – Application for Service Retirement 13. Jerry McKart, deferred, Commissioner – App. for Deferred Retirement 14. Eugene Baker, Mental Health – Service Retirement 15. Paula Wells-Baker, Mental Health – Service Retirement 16. Debra Beckman, Mental Health – Service Retirement 17. Diane Bezeau, Mental Health – Service Retirement 18. Carolyn Bitz, Mental Health – Service Retirement 19. Joni Bosse, Mental Health – Service Retirement 20. Janet Bozek, Mental Health – Service Retirement 21. Debra Cagle, Mental Health – Service Retirement 22. Karen Cooley, Mental Health – Service Retirement 23. Robert DeSmith, Mental Health – Service Retirement Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 9

24. Rosemary Dunholter, Employment & Training – Service Retirement 25. Linda Durell, Mental Health – Service Retirement 26. Donna Evans, Mental Health – Service Retirement 27. Candice Goodwin, Mental Health – Service Retirement 28. Rose Hopkins, Mental Health – Service Retirement 29. Theresa Joyce, Mental Health – Service Retirement 30. John Kornowski, Mental Health – Service Retirement 31. Marilyn Malters, Mental Health – Service Retirement 32. Christine Meyer, Mental Health – Service Retirement 33. Stephanie Morich, Mental Health – Service Retirement 34. Fred Richardson, Mental Health – Service Retirement 35. Rudolph Shorter, Mental Health – Service Retirement 36. Joann Swinkey, Mental Health – Service Retirement 37. Jean VanDine, Mental Health – Service Retirement 38. Diane Barrett, Finance Department – Deferred Retirement

Attorney Report

Due to length of meeting, legal will hold off on report until next month.

Consultant’s Report

Mr. Galanis reviewed the evaluation update for the period ending May 31, 2007. The Retirement System is up $3 million from previous month. Account is now at $186,756,542.56.

Old Business

 Disability Retiree Re-examinations  Theresa Haynes – Buildings & Grounds – waiting for appointment  Rosemary Larner – County Health – waiting for appointment  David Webb – Road Commission – pre-payment required  Ronald Whited – Sheriff’s Office – waiting for appointment  Mark Winter – Animal Control – pre-payment required Minutes Monroe County Employees Retirement System Board of Trustees

June 25, 2007 – Page 10

New Business

 Rehman Robson, Certified Public Accountants Financial Statements for the Monroe County Employees Retirement System for year ended December 31, 2006 and 2005.

Mr. Londo indicated that it was a good audit for the Retirement System. Rehman Robson does this audit as an extension of the County audit and does not cost the Retirement System anything.

Trustee Comments

Mr. Londo told the Trustees that the Retiree Health Care System is investing in REITS.

Dave Thompson attended the Monroe County Retirees Association annual meeting. He would like for the Retirement Specialist to hand out an enrollment form to each new retiree. As soon as Mr. Charron finds the by-laws for the Association, they will be put on the Retirement Web Page. Clayton Charron did a good job on explaining to the retirees how well the retirement system is doing.

Mr. Thompson would like to review the medical reports before disability retirees are sent for a re-examination next year. The doctor’s report on some of the individuals state that they will never go back to work and their condition is getting worse. He doesn’t believe the Board should send these individuals back for a re-examination.

Jim Morgan suggested that same thing last month and legal said the Board could not pick and choose who they are going to send for a re-exam. Mr. Michaud said it should be a rare occasion that someone should be exempt. But if the doctor states in his report that the individual will not ever be able to return to work, the re-exam could be waived.

Motion by Jim Morgan, supported by George Jondro to adjourn. All in favor, motion carried. Meeting adjourned at 7:30 P.M.

Respectfully Submitted,

David Thompson, Chairman Monroe County Employees Retirement System Board of Trustees