Book 1 Page 20 04/27/16 9:00A.M. MINUTES OF THE APRIL 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, 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 9:04 a.m. 2. PLEDGE OF CIMILITY: Trustee Joseph 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". 3. PUBLICINPUT: Ernest Cave, retired City of Sarasota firefighter and president of the Retired Firefighters' Association, Edward Whitehead, retired City of Sarasota police officer, Alan Woodle, retired City of Sarasota police officer and chair of the benefit focus group, and David Flatt, Accounting Manager for the City of Sarasota, came before the Board to further discuss the IRS tax deduction for public safety officers' payment of qualified health insurance premiums. Mr. Flatt stated that he received an email from Pension Plans Administrator Ramphal which detailed ways in which the tax deduction could be preserved for those members who pay qualified premiums outside of the City provided plan and that Pension Plans Administrator Ramphal asked if there is anything that the City of Sarasota could do to facilitate these payments directly to the insurance providers in order for these retirees to maintain this tax deduction. Mr. Flatt further stated that the health insurance payments have to be made by the Pension Plan to reçeive the tax deduction; that making the payment through the City of Sarasota to would potentially jeopardize the tax deduction, and he does not advise that course of action. Mr. Flatt continued by stating that one potential solution would be for the Plan's third-party payroll provider, ADP, to remit the funds from the retirees' monthly pension benefit back to the Plan, after which the Plan would disburse the payments to the health insurance providers and that the Plan could be absolved of any potential liability if there is an issue with these payments to the insurance providers. Mr. Flatt briefly discussed how health insurance payments are processed in other states, such as. California, as possible solutions. He further stated that he recommends that the Plan continue with ADP as the payroll platform as there would be a signifiçant software conversion if the payroll provider is changed. In response to a question from Mr. Whitehead regarding payments from the Plan, Attorney Herrera stated thati in order for the retirees to receive the tax deduction, the payments to the health insurance providers have to be made from an institution rather than individual, and ADP is not willing to make these payments to the health insurance providers. Secretary/Treasurer: Nadalini stated that ADP is not willing to make payments to a third party, such as health insurance providers, asi iti is not able to offer this service. Attorney Herrera stated that he will check with other cities that may use ADP as their payroll provider and how these municipalities resolve this tax deduction issue. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Board of Trustees Membership Meeting of March 23, 2016 A motion was made by Trustee Snow, seconded by Trustee Joseph, to approve the minutes of the March 23, 2016, City of Sarasota Firefighters' Pension Plan Board of Trustees Membership Meeting. Motion carried unanimously (5-0). 5. APPROVAL OF RETIREMENT REQUEST(S): 5.1. Approval Re: Retirement Request of Brian Beauchamp Pension Plans Administrator Ramphal stated that Brian Beauchamp has requested approval for retirement benefits; that Mr. Beauchamp is 50 years of age, had 15.19 years of service, and elected the 67% to Joint Annuitant Option. A motion was made by Vice Chair Roberson, seconded by Secretary/Treasurer Nadalini, to approve the Retirement Request of Brian Beauchamp. Motion carried unanimously (5-0). Attorney Herrera stated that he and other attorneys are finalizing their opinion regarding a share distribution and will provide an opinion letter for discussion at the next Board meeting. Brian Beauchamp came to the dais and discussed his service with the City of Sarasota/Sarasota County Fire Department and his retirement benefit. 6. UNFINISHED BUSINESS: None. Vice Chair Roberson left the Chambers at 10:00 a.m. 7. NEW BUSINESS: 7.1. Presentation and Discussion Re: Independent Auditor's Report for the Fiscal Year Ending September 30, 2015 Alison Wester, CPA Partner, Mauldin & Jenkins, LLC came before the Board to present the final Auditor's Report for the Fiscal Year Ending September 30, 2015 and gave an overview of the financial summary, and stated that the Plan's financial statements fairly represent the Plan's financial position and that no material weaknesses in internal control were found; that she appreciated the opportunity to be of service to the Plan. Secretary Nadalini stated that it was a pleasure working with Ms. Wester and her team and expressed appreciation for the thorough audit received. A motion was made by Trustee Joseph, seconded by Trustee Snow to accept the Independent Auditor's Report for the Fiscal Year Ending September 30, 2015. Motion carried unanimously (4-0). Trustee Snow left the Chambers at 10:19 a.m. and returned at 10:24 a.m. Chair Hartley left the Chambers at 10:53 a.m. and returned at 10:58 a.m. 7.2. Presentation and Discussion Re: Schedule of Employer Allocations and Pension Amounts for the Fiscal Year Ending September 30, 2014 Alison Wester, CPA Partner, Mauldin & Jenkins, LLC presented the schedule of employer allocations and pension amounts for the fiscal year ending September 30, 2014. In response to a question from Chair Hartley regarding actuarial assumptions, Ms. Wester stated that Governmental Accounting Standards Boards reporting standards require the net pension liability to be allocated to the employers' schedules. Book 1 Page 21 04/27/16 9:00 A.M. Book 1 Page 22 04/27/16 9:00 A.M. Trustee Joseph left the Chambers at 10:55 a.m. and returned at 11:00 a.m. 7.3. Presentation and Discussion Re: Quarterly Performance Evaluation as of March 31, 2016 Charlie Mulfinger, Managing Director, Graystone Consulting, came before the Board to present the investment performance evaluation. He stated that the domestic economy's Gross Domestic Product was revised up to 1.4% for the fourth quarter and initial readings were below that, which is indicative of slow growth. Mr. Mulfinger gave an update on the market performance and stated that the last few months have shown the largest recovery in the market since 1933; that while the market is very volatile, the Plan's investment portfolio rose 1.45% before fees over the quarter ending March 31, 2016; that the fund portfolio's total value was $131.53 million at quarter end. Secretary/Treasurer Nadalini stated that a letter was requested from Swank Capital to explain its position regarding the poor performance of its MLP portfolio; that this statement it would demonstrate to the Board its due diligence for the Plan. Mr. Mulfinger stated that he will make sure that a letter is presented to the Board and that representatives from Swank Capital will attend at future Board meeting. 7.4. Adoption Re: Actuarial Report as of September 30, 2015 - Prepared by Gabriel Roeder Smith & Company Brad Armstrong, Actuary, Gabriel Roeder Smith & Company came before the Board and advised that there has been no changes on the actuarial report; that this report is ready for approval by the Board. In response to a question from Secretary/Treasurer Nadalini regarding the GASB 67 and GASB 68 reports, Mr. Armstrong stated that the GASB 67 and GASB 68 reports are independent of the actuarial report and this is reflected in the audit report. A motion was made by Secretary/Treasurer Nadalini, seconded by Trustee Joseph, to approve the actuarial report as of September 30, 2015. Motion carried unanimously (4-0). 7.5. Presentation and Discussion Re: Impact Statement and Actuarial Cost Estimate fort the City of Sarasota Firefighters' Pension Fund members - Prepared by Gabriel Roeder Smith & Company Brad Armstrong, Actuary, Gabriel Roeder Smith & Company presented the finalized impact statement as of September 30, 2014 and actuarial cost estimate for the City of Sarasota Firefighters' Pension Fund members with no changes. A motion was made by SecretarylTreasurer Nadalini, seconded by Trustee Joseph, to approve the actuarial impact statement as of September 30, 2014. Motion carried unanimously (4-0). 7.6. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2016 - 17 Pension Plans Administrator Ramphal presented before the Board the proposed annual budget for Fiscal Year 2016 = 17. He gave an overview of the increase in duties with Pension Administration and stated that the Pension Department requests approval to hire a new Pension Analyst. Trustee Joseph states that he feels that the budget allocated for travel for the Trustees should be increased for the fiscal year; Secretary/Treasurer: Nadalini states that she agrees that there is room in the budget for a travel budget allocation increase if the Board approves, and she further added that it is important for Trustees to attend FPPTA events and training sessions. The Board, by consensus, agreed to increase the travel budget as well as the budget for software and IT. Secretary/Treasurer: Nadalini stated that Pension Plans Administrator Ramphal would send out an amended budget to the Board with approval. A motion was made by Trustee Joseph, seconded by Trustee Snow, to approve the proposed annual budget for fiscal year 2016 - 17 as amended. Motion carried unanimously (4-0). 8. ATTORNEY MATTERS: Attomey Herrera stated that recommended suggestions from the Board members for the revised travel policy should be sent to Pension Plans Administrator Ramphal for discussion in the next meeting. In response to a question from Trustee Joseph regarding travel insurance for Board members, Attorney Herrera stated that he will bring information regarding travel insurance to the next meeting. 9. OTHER MATTERS: Attomey Herrera reminded the Board members to file their Form 1 financial disclosures by July 1, 2016. 10. ADJOURN: Chair Hartley adjourned the Firefighters Pension Plan Board of Trustees Regular meeting at 11:25 a.m. wo Chair Michael Harley SecretaryTreasurer Pamela M. Nadalini Book 1 Page 23 04/27/16 9:00 A.M.