MINUTES OF THE JULY 27, 2016 CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Pamela Nadalini (arrived at 9:03 a.m.), and Trustees Charles Joseph and Scott Snow Others: Attorney Pedro Herrera, Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Chinyere Deehan Absent: None 1. CALL THE MEETING TO ORDER: Chair Hartley called the meeting to order at 9:00 a.m. 2. PLEDGE OF CIVILITY: Trustee Snow read into the record a memorandum from Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Board Meeting Protocols and Pledge of Civility." Secretary/Treasurer Nadalini entered the Chambers at 9:03 a.m. 3. PUBLICI INPUT: Ernest Cave, retired firefighter, came before the Board and stated that he did not see the discussion regarding the tax deduction for public safety officers on the agenda. Pension Plans Administrator Ramphal stated that the tax deduction discussion was not placed on the agenda as there has been no update; that once there is an update, it will be placed on the agenda for discussion. Mr. Cave stated that he does not want the issue to die without further discussion; that ADP is not willing to change their software to accommodate the request and other payroll companies are able to facilitate this request; that the other payroll companies have contracts with health insurance companies to make health care payments directly to them. Mr. Cave stated that the retirees have no representation on the Board that can advocate for retirees' issues. He further stated that there is a provision in the pension ordinance that provides for the appointment of the fifth seat on the Board; that the current Board members responsibility is to the fund, not the retirees; that he communicates with most of the retired firefighters in the City of Sarasota, except those he does not have addresses for. Trustee Snow stated that Mr. Cave can detail information in a letter and give it to the Pension Administration staff and they will forward the letter to the retirees; that the Pension Administration staff are not able by law to give out addresses of the retirees to Mr. Cave. Attorney Herrera stated that under the public records law, the home addresses of active and retired police officers and firefighters are exempt from public inspection; that Mr. Cave would be able to get a list of retired firefighters' names but not their addresses. Secretary/Treasurer Nadalini stated that she is aware of Mr. Cave's request for the addresses of retired firefighters; that she regrets that she is not able to accommodate his request but that Pension Administration staff must follow public record laws and are unable to forward information from Mr. Cave to the retirees. Secretary/Treasurer Nadalini further stated that the information from Mr. Cave can be shared on the appropriate websites for the retirees to view and that she is willing to have the information shared on the City's intranet website. Book 1 Page 35 07/27/16 9:00 A.M. Book 1 Page 36 07/27/16 9:00 A.M. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Plan Board of Trustees Regular Meeting of May 25, 2016 Vice Chair Roberson stated that she would like reference made regarding the historical summary sheet being included in the agenda packet. Secretary/Treasurer Nadalini stated that pension staff will review the minutes of the May 25, 2016 Firefighters' Pension Plan Board of Trustees Regular Meeting and make the corrections if necessary to be approved at the next board meeting. 4.2. Approval Re: Minutes of the Firefighters' Pension Plan Board of Trustees Special Meeting of June 17, 2016 A motion was made by Trustee Joseph and seconded by Vice Chair Roberson to approve minutes of the Firefighters' Pension Plan Board of Trustees Special Meeting of June 17, 2016. Motion carried unanimously (5-0). 5. APPROVAL OF RETIREMENT REQUEST(S): None. 6. INVESTMENT PERFORMANCE REVIEW: 6.1. Presentation and Discussion Re: HGK Asset Management Investment Performance Matthew Witschell, Director of National Accounts, HGK Asset Management, came before the Board to present the investment portfolio for the Firefighters' pension fund. Mr. Witschell provided an overview of the firm and the changes made in the investment team. He stated that there were $13.1 million in assets under management since May 31, 2016; that the total fund rate of return for the firefighters' pension fund is 6.45% versus the benchmark of 5.39%. Mr. Witschell briefly discussed the current market and its effect on the investment performance. In response to Vice Chair Roberson's request for the portfolio's performance for the fiscal year ending June 30, 2016, Mr. Witschell stated that he will provide that information to Pension Plans Administrator Ramphal, who will share it with the Board members. 6.2. Presentation and Discussion Re: Oak Ridge Investments Small/Mid-Cap Growth Report Rob McVicker, Executive Vice President, Senior Portfolio Manager and Mary McManus, Senior Vice President, of Oak Ridge Investments, came before the Board to present the small to mid-cap growth report for the firefighters' pension fund. Ms. McManus gave a brief overview of changes within the firm and the characteristics of the portfolio. Mr. McVicker provided an update of the market and the firm's investment philosophy. He stated that for the current fiscal year to date the portfolio gross return is -0.60% versus benchmark of -0.46%; that since inception in February 2006 the fund performance is 123.07% versus the benchmark of 96.34%. Vice Chair Roberson requested that the performance results comparisons are added to the future reports. Vice Chair Roberson left Chambers at 9:51 a.m. and returned to Chambers at 9:52 a.m. 6.3. Presentation and Discussion Re: Graystone Quarterly Performance Evaluation as of May 31, 2016 Charlie Mulfinger, Managing Director, and Scott Owens, Institutional Consultant of Graystone Consulting, came before the Board to present the quarterly performance evaluation as of May 31, 2016. Mr. Owens gave a market update and detailed how the United Kingdom's exit from the European Union affected the market. He further discussed the breakdown of returns between managers and the international growth. Mr. Mulfinger discussed the growth of the individual managers. He stated that as of the quarter ending June 30, 2016 the portfolio value is $132.9 million; that the rate of return for the quarter ending June 30, 2016 is 2.35% versus the benchmark of 1.77%; that since inception, September 30, 2006, the rate of return is 5.57% versus the benchmark at 7.25%. Mr. Mulfinger further stated that there is no need for rebalancing and that this has been a strong quarter compared to earlier in 2016. Chair Hartley left Chambers at 10:50 a.m. and returned to Chambers at 10:51 a.m. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: Annual State of the City's Pension Plans Workshop of the City Commission Pension Plans Administrator Ramphal stated that the Annual State of the Pension Plans Workshop is on August 23, 2016 at 5:00 p.m.; that the plan's attorney, actuaries, auditor and consultants will be in attendance to present to the City Commission. Discussion ensued regarding the presentations at the Annual State of the Pension Plans Workshop. 8.2. Presentation and Discussion Re: IRS Proposed Regulations regarding Normal Retirement Age and In-Service Distributions Attorney Herrera stated that the IRS has issued proposed regulations regarding normal retirement age for pension funds and in-service distributions. He further stated that in-service distributions are not illegal or prohibited if the plan provides for this; that it is not an issue for the City of Sarasota Firefighters' pension plan as the plan already complies with imposed regulations for safety officers. SecretarytTreasurer Nadalini stated that she is pleased that Attorney Herrera gave an explanation regarding the IRS regulations and that it does not apply to the Firefighters' pension plan. 9. ATTORNEY MATTERS: Attorney Herrera discussed the upcoming educational opportunities for the Board members; that the Florida Public Pension Trustees Association (FPPTA) trustees' school will commence in September. He stated that the International Foundation of Employee Benefits conference will be held in Orlando in November. Attorney Herrera advised the Board that the form 1 financial disclosure were due on July 1, 2016 and all Board members confirmed that they have filed their forms before the deadline. 10. OTHERI MATTERS: Book 1 Page 37 07/27/16 9:00 A.M. Book 1 Page 38 07/27/16 9:00 A.M. Trustee Snow stated that he would like to attend the FPPTA conference in September and discussed reservations for the conference. Attorney Herrera stated that he is accepting revisions to the travel policy from the Board members. Secretary/Treasurer Nadalini stated that the Board should consider cancelling the August 24, 2016 Board of trustees meeting as the Annual State of the Pension Plans Workshop is scheduled for the day before. She further stated that the September 28, 2016 Board of trustees meeting should be changed to September 21, 2016 as some of the Board members will be attending the FPPTA trustees' school during that time. Chair Hartley noted Board consensus to cancel the August 24, 2016 Board of trustees meeting and change the September 28, 2016 Board of trustees meeting to September 21, 2016. 11. ADJOURN. Chair Hartley adjourned the Firefighters' Pension Plan Board of Trustees Regular meeting at 11:20 a.m. MO Chair Michael Hartley Secretary/Treasurer Pamela M. Nadalini