MINUTES OF THE CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF APRIL 25, 2018 Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Pamela Nadalini and Trustees Charles Joseph and Scott Snow Others: Attorney Pedro Herrera, Senior Pension Analyst Anthony Ferrer and Pension Specialist Lois Belle Absent: None 1. CALL THE MEETING TO ORDER: Chair Hartley called the meeting to order at 9:01 a.m. 2. PLEDGE OF CIVILITY: Chair Hartley read into the record a memorandum from Former Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Board Meeting Protocols and Pledge of Civility." 3. PUBLICINPUT: No one signed up to speak. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Plan Board of Trustees Membership Meeting of March 28, 2018 A motion was made by Trustee Snow and seconded by Trustee Joseph to approve the Minutes of the Firefighters' Pension Plan Board of Trustee Membership Meeting of March 28, 2018. Motion carried unanimously (4-0). Secretary/Treasurer Nadalini entered Chambers at 9:03 a.m. 5. RETIREMENT REQUESTS: 5.1. Approval Re: Normal Retirement Request of Gregory Garrison Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Mr. Garrison had over 28 years of service; that he had begun his employment in October 1989 and that what was being presented was estimated; that final payroll figures are pending County. In response to a question from Chair Hartley asking what form of benefit Mr. Garrison has elected, Senior Pension Analyst Ferrer stated that Mr. Garrison had not made his election. In response to a question from Chair Hartley asked what the proper procedure was in circumstances where an election has not been made. Attorney Herrera stated that the Board can accept an estimate for informational purposes and authorize staff to proceed accordingly; that staff can bring back final benefit election and signed final declaration to the Board. Book 1 Page 99 4/25/18 9:00 a.m. Book 1 Page 100 4/25/18 9:00 a.m. Ernest Cave approached the dais, introduced himself and asked if there would be any potential delay to Mr. Garrison's retirement. Attorney Herrera stated that no potential delay will occur resulting from Mr. Garrison's final declaration being presented next month because the Board has approved by consensus to authorize staff to proceed with finalization of Gregory Garrison's retirement and that the Board will act at the Firefighters' Pension Plan Board of Trustee Regular Meeting of May 23, 2018 on Mr. Garrison's completed declaration request. 6. INVESTMENT PERFORMANCE REPORT: 6.1. Presentation and Discussion Re: Graystone Consulting Investment Performance Report as of March 31, 2018 Presenter(s): Mr. Charlie Mulfinger, Managing Director, and Scott Owens, Institutional Consultant, Graystone Consulting Charlie Mulfinger, Managing Director, and Scott Owens, Institutional Consultant, Graystone Consulting came before the Board and introduced themselves for the record. Mr. Mulfinger discussed the quarterly performance; that the fund had a loss of $1,556,475 net of fees but that the fund performed less negative than benchmark; that fixed income was increased and still within target range; that large cap funds were decreased as directed by the Board; that the portfolio is $149,459,381 as of March 31, 2018. Mr. Owens provided an overview of the market and the economy; that there was a great deal of volatility in the market but that this is what the portfolio has been preparing for with the selection of investment managers; that the fundamentals of the market continue to be strong; that unemployment is down to 4.1% with some states at record low unemployment, that Gross Domestic Product is 2.5 = 3.3%; that smaller companies outperformed larger companies; that all benchmarks were negative for quarter and 8 out of 10 sectors were negative. In response to a question from Vice Chair Roberson asking if the Oakridge cash question was researched after last month's discussion, Mr. Owens stated that Oakridge confirmed the company is not holding cash rather the amount held was simply a function of the calendar. In response to a question from Vice Chair Roberson asking what the initial Master Limited Partnership (MLP) investment was, Mr. Mulfinger stated that the initial investment was just under $7,000,000 with another $1M added. Vice Chair Roberson stated, for the record, that Ron Lanier and UBS Investments continue to represent the Firefighters' Pension Plan fund well. Mr. Mulfinger discussed thei individual investment managers' performance; that DePrince, Race and Zollo, Inc. had a very difficult quarter; that Oakridge had been put on watch due to decline is assets and performance but that the Company did have a good quarter and both management and strategy same. In response to a question from Secretary/Treasurer Nadalini asking if there is any concern regarding legal compliance, Mr. Mulfinger stated that internal audits are performed annually and that the Securities and Exchange Commission audit is a random selection process. Mr. Mulfinger continued his review of the investment managers and stated that both international investment managers performed ahead of bench; that MLPs performed better than bench in a tough quarter and that he felt it would be better to hold; that Graystone would prefer not to sell while down; that Graystone would send details on MLPs and Oakridge prior to the Firefighters' Pension Plan Board of Trustee Regular Meeting of June 20, 2018. Secretary/Treasurer: Nadalini stated that the MLP strategy is long-term and that she is optimistic that MLPs will be a positive for the portfolio. Chair Hartley stated that the Firefighters' Pension Plan invested in Real Estate around the same time and that investment has turned around; he asked if there is a possibility to insulate the Portfolio. Attorney Herrera will reach out to Cushing to provide a detailed review of MLP; similar to what was provided to the Police Officers' Pension Plan Board of Trustees. Mr. Mulfinger concluded his presentation by stating that the Portfolio is in the northwest quadrant and is well positioned at capturing the upside of the market at 99.25%, while capturing 93.56% of the downturn. 7. UNFINISHED BUSINESS: None 7. NEW BUSINESS: None 8. ATTORNEY MATTERS: Attorney Herrera stated that the legislative session has ended and that there were no bills passed that would impact the pension funds; that the upcoming educational opportunities are the FPPTA conference in June and the Division of Retirement conference in June 2018 as well; that there were changes to Workers' Compensation laws where Post Traumatic Stress Disorder has been qualified as a presumption of compensable injury and that this could affect a disability claim. Secretary/Treasurer: Nadalini stated that there had been discussion regarding the Interlocal Agreement between the City and County; that perhaps this could be placed on a future agenda to understand responsibility of City liability in regards to the Pension fund when the Interlocal Agreement terminates in 2023. Discussion ensued around renewal of Interlocal Agreement and Employer liability concerning Pension fund. Ernest Cave came back up to the dais and stated that the Interlocal Agreement (IA) does not end in 2023; that according to the 2003 IA there is an automatic renewal every 20 years; additional questions were raised regarding Share Plan money if the IA terminates and how does that affect the City's ability to collect excise tax. Attorney Herrera stated that he will provide an opinion but that this issue must be discussed with the City and County attorneys. 10. OTHER MATTERS Secretary/Treasurer Nadalini reminded the Board that financial disclosures are coming up; that the Advisory Board dinner is scheduled for Thursday, May 24, 2018 at 5:30 p.m., that the Annual State of the Pension Workshop to the City Commission is scheduled for August 23, 2018 at 5:00 p.m. Book 1 Page 101 4/25/18 9:00 a.m. Book 1 Page 102 4/25/18 9:00 a.m. Senior Pension Analyst Ferrer stated that the Financial Markets seminar held at USF on April 5, 2018 was excellent, very informative. 11. ADJOURN. Chair Hartley adjourned the Fhyefighters' Pension Plan Board of Trustee Regulàr Meeting at 11:27 a.m. A A 0A o Ohair Michael Haryleyv Secretary/Treasurel Pamela Nadalini