MINUTES OF THE CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF JUNE 20, 2018 Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Pamela Nadalini and Trustee Charles Joseph Others: Attorney Pedro Herrera, Senior Pension Analyst Anthony Ferrer and Pension Specialist Lois Belle Absent: Trustee Scott Snow 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. Chair Hartley noted the Change to the Order of the Day Memorandum removing Item No. 8.1. from the meeting's agenda. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Plan Board of Trustees Regular Meeting of May 23, 2018 A motion was made by Vice Chair Roberson and seconded by Trustee Joseph to approve the Minutes of the Firefighters' Pension Plan Board of Trustee Regular Meeting of May 23, 2018. Motion carried unanimously (3-0). Secretary/Treasurer Nadalini entered Chambers at 9:03 a.m. 5. RETIREMENT REQUESTS: None 6. INVESTMENT PERFORMANCE REPORT: 6.1. Presentation and Discussion Re: Cushing Investment Performance as of March 31, 2018 Presenter(s): Mr. Paul Euseppi, Portfolio Manager & Partner, Cushing Asset Management Paul Euseppi, Portfolio Manager & Partner, Cushing Asset Management, came before the dais and introduced himself. Mr. Euseppi stated that the portfolio performed 21.22% down since inception; that the bench is down Book 1 Page 107 6/20/18 9:00 a.m. Book 1 Page 108 6/20/18 9:00 a.m. 24.55% and Cushing outperformed the bench mark; that he is optimistic going forward. Mr. Euseppi provided an overview of the firm; that the company utilizes three complimentary strategies: upstream (exploration and production), midstream (transportation and storage) and downstream (commercial, residential, industrial and refining). Mr. Euseppi discussed the market; that the fundamentals are very strong; that volume and production are growing and very positive on the supply side; that there are new demand sources but that the equities are not reflecting the positive market supply and demand; that the sector is focused on non-fundamental issues; that the shifting investor base has now started to stabilize; that while this transition created volatility, the shift has made the underlying position more positive; that stronger financially sound companies are emerging. Discussion ensued around the portfolio's continued investment in, and the long-term outlook for, Master Limited Partnership (MLP) options. The Board requested Cushing attend a Board meeting in the December.January timeframe for further review of MLP performance. In response to a question from Vice Chair Roberson asking for clarification on Cushing's figures since inception versus what Graystone Consulting provided at the Firefighters' Pension Plan Board of Trustee meeting of April 25, 2018, Mr. Euseppi stated that he would speak with his analysts to understand the rationale and provide a response back to staff before the next Board meeting; that Staff will follow-up and provide to the Board. The Board thanked Mr. Euseppi for his presentation. 6.2. Presentation and Discussion Re: Oak Ridge Investment Performance as of May 31, 2018 Presenter(s): Rob McVicker, Executive V.P. & Sr. Portfolio Manager, and Mary McManus, Senior Vice President, Oak Ridge Investments Rob McVicker, Executive V.P. & Sr. Portfolio Manager, and Mary McManus, Senior Vice President, Oak Ridge Investments came before the Board and introduced themselves. Ms. McManus stated that the firm has had one analyst depart; that the analyst was in the Healthcare sector and that they are looking for a replacement, that there has been no change in the management or strategy of the firm. Mr. McVicker provided an overview of performance; that the fund had a net-of-fees return of 6.65% through May 31, 2018; that Oak Ridge does not buy mid-cap values; that they have a unique strategy that they buy small-cap values and retain through to mid-cap growth; that Oak Ridge investment longevity is typically four (4) to five (5) years in duration; that Oak Ridge's philosophy is organic sales growth; that their portfolio of companies is consistent with faster compounding growth strategies. Discussion ensued around what constitutes a small versus mid cap holding. Mr. McVicker stated that companies above $10.25 billion are in the medium capitalization sector; that Oak Ridge is currently 6.7% versus the Russell 2500 Growth benchmark at 18%; that Oak Ridge is drastically underweighted in this sector; that between $3.5to $10.25 billion is the medium/small cap range and Oak Ridge is 49.8% versus the Russell 2500 Growth at 47%; that below $3.5 billion is considered small cap; that Oak Ridge is 40.2% versus the Russell 2500 Growth at 35%; that unclassified are the 2 cash positions at 3.2%. Chair Hartley requested this information be added to quarterly reports. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: 8.1. PreseniationandDisesoARe:Poniole.onbagSenseEdABaMaR-FVAFRuchteF&-Twersk LLP (Item Removed as a Change to the Order of the Day Memorandum) Presenterel-M6-Aar-Rseh-Eaure.ABaham-FweNehter&-TwerskyLP 9. ATTORNEY MATTERS: Attorney Herrera stated that he had nothing new to report; that he has reviewed the Fund's contract with Robbins Geller and recommends to the board to have a new contract drafted; that he looked at portfolio monitoring firms and Abraham, Fruchter & Twersky, LLC is a smaller, boutique firm; that Kessler, Topaz, Meltzer & Check, LLC is a larger, globally recognized firm; that there would be separate engagements if more than one firm is chosen; that there is some specialization of different areas and his recommendation is to have three to four firms chosen to run portfolio monitoring on the Fund; that portfolio monitoring services are no charge and there is no liability to the Plan. Discussion ensued around how the different portfolio monitoring firms work together. Attorney Herrera reminded Trustees that financial disclosure forms are due July 1st and to keep a receipt of submission. 10. OTHER MATTERS Secretary/Treasurer Nadalini stated that Pension Specialist Belle will be leaving the City; that her last day will be Friday, June 22, 2018; that she has been a pleasure to work with and her work contributions to the City and the Boards and will be missed. Secretary/Treasurer: Nadalini stated that she has extended an offer to a candidate who applied for the Senior Pension Accountant position; that the City is running background checks now and she will provide an update once confirmed; that the Pension Plans Administrator position is still open and they are looking for qualified applicants to fill that role; Secretary/Treasurer: Nadalini thanked the board members who attended the Advisory Board Dinner in April. 11. ADJOURN. Chair Hartley adjourned thé Firefighters' Pension Plan Board of Trustee Regular Meeting at 10:38 a.m. - - A -- - BAcR - Chair Michael Hartley FaR Secretary/Tieasurer Pamela Nadalini Book 1 Page 109 6/20/18 9:00 a.m.