MINUTES OF THE JANUARY 22, 2016 CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING Present: Chair Kevin Stiff, Vice Chair Ron Baty, Secretary/Treasurer Pamela Nadalini, and Trustees Duncan Miller and Darrell Nixon Others: Attorney H. Lee Dehner, Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Chinyere Deehan Absent: None 1. CALL MEETING TO ORDER: Chair Stiff called the meeting to order at 8:15 a.m. 2. PLEDGE OF CIVILITY: Chair Stiff read in to the record a memorandum from Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." 3. ANNUAL UPDATE ADVISORY BOARDS COMMITTEE: Deputy City Auditor and Clerk Karen McGowan, Office of the City Auditor and Clerk, came before the Board, distributed to the Board a form entitled "Information Technology (IT) Division - Workplace, Email, Internet, and Internet Acceptable Use Policy", and requested the form be completed and returned to the Board's Liaison upon the meeting adjourning, and provided a brief overview on and referenced from sections of "Florida Government-in-the-Sunshine Law" manual and stated that the requirements of the Sunshine Law are three-fold as follows: 1. All public Boards must be open to the general public, for example, no luncheon or dinner meetings are to be held among members, but the Sunshine Law does not apply when meeting with a member(s) from a different Board. 2. Reasonable Notice must be given for all meetings, generally considered to be three business days in advance or one day for emergency posting. 3. Minutes of the meeting must be taken and promptly posted on the City's webpage once approved; however no specific format is required. Deputy City Auditor and Clerk McGowan continued that the Sunshine Law applies to Boards or Commissions of any State agency or municipal authority within the State of Florida; that Fact-Finding Committees are limited to discovering facts only while making no recommendations based upon the facts; that all written correspondence is subject to the Sunshine Law along with the use of personal computers and cellular telephones; that the same applies to using Staff or Liaisons as message carriers, which is a violation; that the Public Records Act applies to all material made or received in connection with official business of the public entity, including but not limited to documents, maps, any notes taken at meetings, and data processing software; that all emails and telephone records in connection with official business are subject to disclosure in the absence of a specific statutory exemption. Deputy City Auditor and Clerk McGowan provided a brief overview and references from the recently revised 11th edition of "Robert's Rules of Order" related to quorums in Boards and Committees, and proceedings in the absence of a quorum, and the manner of enforcing the quorum requirement, and provided a brief overview of the "Florida Commission on Ethics - Guide to the Sunshine Amendment Book 1 Page 1 01/22/16 8:15 A.M. Book 1 Page 2 01/22/16 8:15A.M. and Code of Ethics for Public Officers and Employees", and explained the use of "Form 8B - Memorandum of Voting Conflict for County, Municipal, and other Local Public Officers", and concluded with the distribution of folders to each Board Member which contained the information discussed for reference and their reading pleasure. Chair Stiff on behalf of the Board thanked Deputy City Auditor and Clerk McGowan for her presentation. 4. CHANGES TO THE ORDER OF THE DAY: Secretary/Treasurer: Nadalini sought Board consensus to add Agenda Item 7, Item No. 1, Approval Re: DROP Retirement Request of Eric Bolden. Secretary/Treasurer Nadalini sought Board consensus to add Agenda Item 7, Item No. 2, Approval Re: DROP Retirement Request of Dan Griesdorn. SecretaryTreasurer Nadalini sought Board consensus to add Agenda Item 7, Item No. 3, Approval Re: DROP Retirement Request of Carmen Woods. Chair Stiff noted Board consensus to the Changes to the Order of the Day. 5. PUBLIC INPUT: None 6. APPROVAL OF THE MINUTES: 6.1. Approval Re: Minutes of Regular Police Officers' Pension Board Meeting of December 11, 2015 A motion was made by Trustee Miller, seconded by Trustee Nixon to approve the minutes of the October 23, 2015, Police Officers' Pension Plan Board of Trustees Regular Meeting. Motion carried unanimously (5-0). 7. APPROVAL OF RETIREMENT REQUESTS: 7.1. Approval Re: DROP Retirement Request of Eric Bolden Pension Plans Administrator Ramphal stated that Eric Bolden requested to enter the DROP effective January 1, 2016. Pension Plans Administrator Ramphal stated that Mr. Bolden is 45 years of age and has 25.47 years of service. Mr. Bolden selected the 100% Joint Annuitant Option. 7.2. Approval Re: DROP Retirement Request of Dan Griesdorn Pension Plans Administrator Ramphal stated that Dan Griesdorn requested to enter the DROP effective January 1, 2016. Pension Plans Administrator Ramphal stated that Mr. Griesdorn is 50 years of age and has 23.71 years of service. Mr. Griesdorn selected the 100% Joint Annuitant Option. 7.3. Approval Re: DROP Retirement Request of Carmen Woods Pension. Plans Administrator Ramphal stated that Carmen Woods requested to enter the DROP effective January 1, 2016. Pension Plan Administrator Ramphal stated that Ms. Woods is 50 years of age and has 24.68 years of service. Ms. Woods selected the Lifetime Only Option. 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: Quarterly Investment Performance Report as of December 31, 2015 Larry Cole, Executive Vice President, Burgess Chambers & Associates came to the board to discuss the quarterly investment performance report as of December 31, 2015. Mr. Cole advised that this is a preliminary report, as final end of the quarter end data is not fully available, though he does not expect any significant change in the final numbers. He confirmed that it was a good quarter with performance for the quarter up 3.5%. Mr. Cole briefly discussed changes in the market; highlighting that right now, China and oil are driving the markets down. He does not recommend adding anything to the MLP class right now due to the volatility of the market. Mr. Cole stated that he spoke with the MLP managers regarding presenting to the board and Secretary/Treasurer: Nadalini agreed that the Westwood and Salient MLP managers should present before the Board starting with February's meeting. Mr. Cole agreed to work with Pension Plans Administrator Ramphal to schedule Westwood for a future meeting after February. Chair Stiff noted Board consensus to have the MLP managers present before the Board at the February 2016, City of Sarasota Police Officers' Pension Plan Board of Trustees Regular Meeting. Mr. Cole stated that the three year average for the fund's performance for the quarter is 9.5% and the five year average is 8.2%. He advised that the market has not had a good start in calendar year 2015, but has improved over the last few days. Mr. Cole confirmed that he has spoken with the managers at National Investment Services and Sawgrass Asset Management and those contracts have been agreed upon. Attorney Dehner stated that Sawgrass has executed its contract and that the National Investment Service contract is complete. Secretary/Treasurer Nadalini confirmed that a copy of the contract will be distributed for Board signature and executed immediately. Attorney Dehner requested a letter from Mr. Cole explaining the reason why the MLPs are down for the quarter. Chair Stiff noted Board consensus to have Burgess Chambers and Associates Consulting submit a written report before the Board detailing the reasons for the decrease. In response to a question from Trustee Nixon regarding the health of the MLPS, Mr. Cole responded that MLP are companies with a wide spectrum of leverage and the Plan has two active managers that are researching companies and buying healthy ones that they believe can survive in this volatile market. Mr. Cole stated that he believes that healthy companies will rise to the top quicker than other companies that have not fared as well in the market. He reiterated that he recommends not making any changes in investment allocation at this time. 9. UNFINISHED BUSINESS: 9.1. Presentation and Discussion Re: Request for Proposals for Custodial Services (RFP #16-05BK) - Police Officers' Pension Fund Barry Kavanagh, Senior Procurement Specialist, City of Sarasota, came before the Board to discuss the request for proposals for custodial services. He advised the Board that the proposals can only be discussed during scheduled meetings and the Board may contact him Book 1 Page 3 01/22/16 8:15 A.M. Book 1 Page 4 01/22/16 8:15, A.M. with any additional information that they may need. Mr. Kavanagh reiterated that any opinions or details regarding the proposals can only be discussed during scheduled meetings and that any information gained from the opposing firms should only be discussed during the meetings. He briefly discussed the firms that were submitting proposals for custodial services. In response to a question from Secretary/Treasurer Nadalini requesting clarification regarding the number of committee members, Mr. Kavanagh confirmed that there are five committee members who will make a determination on the proposals. Secretary/Treasurer: Nadalini also asked for clarification regarding local preference and Mr. Kavanagh explained how the local preferences are determined. 9.2 Presentation and Discussion Re: Investment Management Agreement between Sawgrass Asset Management, LLC and the Board of Trustees of the City of Sarasota Police Officers' Pension Fund Attorney Dehner advised that an agreement between Sawgrass Asset Management, LLC and the Board of Trustees of the City of Sarasota Police Officers' Pension Fund has been negotiated and is ready to be signed. 10. ATTORNEY MATTERS: Attorney Dehner discussed the Legislative Session which will convene shortly and stated that there are no potential legislative issues which would concern the Plan; however members of the Board are reminded to complete their Form 1 - Financial Disclosures prior to July 1, 2016. In response to a question from Chair Stiff regarding the disability hearings for David Van Gostein and Kelvin Williams, Attorney Dehner stated that the Board should receive the documents soon and the hearings will be scheduled for the middle of March. Discussion ensued regarding scheduling the hearings for David Van Gostein and Kelvin Williams. In response to a question from Secretary/Treasurer Nadalini regarding the requirements for posting meeting notices, Attomey Dehner advised the requirements regarding the posting of meeting notices and minutes will remain the same. In response to a question from Chair Stiff regarding the legal fees incurred with Salem Trust, Attorney Dehner advised that based on the offer from Salem Trust, it should reimburse the Board for the cost. Secretary/Treasurer Pamela Nadalini requested that Attorney Dehner have the attorney fees submitted for reimbursement by Salem Trust for time spent on adverse audit issues. 11. OTHER MATTERS: None 12. ADJOURN. Chair Stiff adjourned the Police Officers' Pensions Board of Trustees Regular meeting at 9:35 a.m. V Gw Wa - Chair Kevin Stiff Secretary/Treasurer Pamela M. Nadalini