MINUTES OF THE CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF JULY 26, 2017 Present: Chair Michael Hartley, Vice Chair Shelia Roberson (arrived at 9:06 a.m.), Secretary/Treasurer Pamela Nadalini (arrived at 9:08 a.m.), Trustees Charles Joseph and Scott Snow Others: Attorney Pedro Herrera, Senior Pension Analyst Anthony Ferrer, Senior Pension Accountant Cynthia Akersloot 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: 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." 3. PUBLICI INPUT: No one signed up to speak. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters Pension Plan Board of Trustees Regular Membership Meeting of June 21, 2017 A motion was made by Trustee Snow and seconded by Trustee Joseph to approve the Minutes of the Firefighters' Pension Plan Board of Trustee Regular Meeting of June 21, 2017. Motion carried unanimously (3-0). 5. Investment Performance Review: 5.1. Presentation and Discussion Re: HGK Investment Performance as of June 30, 2017 Presenter(s): Matthew Witschel, Director, National Accounts, HGK. Asset Management Matthew Witschel came before the Board and introduced himself. Mr. Witschel provided a high-level summary of HGK's Investment discipline. Vice Chair Roberson entered Chambers at 9:06 a.m. Mr. Witschel provided an overview of the Firefighters' Pension Fund since inception, May 2015 through June 2017; he provided a statement of change calendar year to date and fiscal year to date. Secretary Nadalini entered Chambers at 9:08 a.m. Mr. Witschel stated that the portfolio's relative terms to benchmark continue to lag; that 2015 was very difficult for energy sector; that HGK's underperformance was due to some underweighting but also in the Book 1 Page 71 7/26/2017 9:00 a.m. Book 1 Page 72 7/26/2017 9:00 a.m. selection of stocks; that HGK tends to hold stocks with a good history of earnings and cash flow historically; that HGK feels opportunities for a long term fundamental investing approach are increasing. The Board thanked Mr. Witschel for his presentation. 5.2. Presentation and Discussion Re: Graystone Consulting Investment Performance Presenter(s): Charlie Mulfinger, Managing Director, and Scott Owens, Institutional Consultant, Graystone Consulting Mr. Charlie Mulfinger, Managing Director, and Mr. Scott Owens, Institutional Consultant, Graystone Consulting, came before the Board. Mr. Mulfinger provided the Board with an overview of the topics to be presented and stated that Scott would discuss the economy and the market; that he would speak about managers; that the Fund made over $2 million for Q2, 2017 and beat benchmark. Mr. Owens briefly discussed the economic environment, and stated that the second quarter of 2017 is a carbon copy of Q1, 2017; that the current environment is pro-growth; that positive earnings revisions and growth outperforms value again this quarter. Mr. Mulfinger stated that as of June 30, 2017, the market value of the Plan's assets is $141,562,376 with a total gain, net of fees, of $2,118,719 for the quarter; that the Plan's investment allocation is within the Plan's ranges on asset class, he briefly discussed the performance of each of the Plan's Investment Managers. Mr. Mulfinger recommended a motion to increase MLPS up to the policy target and suggested rebalancing fixed assets down to the bottom of the range and, if needed, equity but to avoid any change for Real Estate. A motion was made by Secretary/Treasurer Nadalini, and seconded by Trustee Snow, to rebalance portfolio as suggested by Mr. Mulfinger. Motion carried 4-1 with Trustee Joseph voting no. Secretary/Treasurer Nadalini left chambers at 10:25 a.m. Discussion ensued around potential investment opportunity in farmland. The Board thanked Mr. Mulfinger and Mr. Owen for their time. 6. UNFINISHED BUSINESS: None 7. NEW BUSINESS: 7.1. Approval Re: Proposed Actuarial Fees for 2017 GASB 67 Reporting Presenter(s): Brad Armstrong, Actuary, Gabriel Roeder Smith & Company (via telephone) Chair Hartley provided a brief overview of proposed actuarial fees for 2017 GASB 67 Reporting; that this engagement letter and proposed actuarial fee was discussed at the Firefighters Pension Plan Regular Meeting of June 21, 2017; that it was not necessary to get Mr. Armstrong on the telephone and opened the floor for a motion. A motion was made by Trustee Snow, and seconded by Trustee Joseph, to accept the proposed actuarial fee of $3,950 fori the GASB Statement No. 67 Disclosure work tol be performed. Motion carried unanimously (4-0). 7.2. Presentation and Discussion Re: IRS Determination Letter Presenter(s): Attorney Pedro Herrera, Sugarman & Susskind, PA Attorney Pedro Herrera, Sugarman & Susskind, stated that the IRS has issued a favorable determination regarding the status of the Firefighters' Pension Plan. In response to a question by Vice Chair Roberson asking about the status of the Certificate of Tax Exemption for the Firefighters' Pension Plan, Attorney Herrera stated that his office did follow up on the status of the Certificate of Tax Exemption filed and that the requested for Tax Exemption for the Firefighters' Pension Plan is in process. 7.3. Adoption Re: Proposed Resolution No. 17R-2656, designating a Records Management Liaison Officer of the Firefighters' Pension Plan and adopting Records Retention Schedule GS1-SL Presenter(s): Attorney Pedro Herrera, Sugarman & Susskind, PA Attorney Herrera stated that, as discussed at the Firefighters Pension Plan Board of Trustee regular meeting of June 21, 2017, Chapter 119, Public Records, has changed and if a Records Management Liaison Officer is designated any filing of a public records request complaint must provide written notice of at least 5 days in advance of filing of the complaint along with the content of the request. Pursuant to that discussion, and consistent with the other City Defined Benefit Plans Resolution No. 17R-2656 seeks to designate a Records Management Liaison Officer fori the Firefighters' Pension Plan. Attorney Herrera stated that Records Retention Schedule GS1-SL has been previously adopted by the Board several years prior. A recommendation was made by Vice Chair Roberson to revise Section 1 of the Resolution No. 17R-2656 to state "the Board designates City of Sarasota City Auditor and Clerk or designee as the Records Management Liaison Officer". A motion was made by Vice Chair Roberson, and seconded by Trustee Joseph, to accept the Resolution No. 17R-2656 as revised. There being issues with the electronic tally system, the vote was verbally confirmed by the Chair. Motion carried unanimously (4-0) 8. ATTORNEY MATTERS: Attorney Herrera reminded the Board that Financial Disclosure forms were due July 1, 2017; that many counties are accepting forms online now. 9. OTHER MATTERS: In response to a question by Trustee Joseph asking about Annual conferences held by Investors and if that constitutes a gift or not, Attorney Herrera stated that it would be fine to attend an educational seminar as approved by the Board; that a recreational outing would be a gift. Senior Pension Specialist Ferrer stated that at the end of June the Office of the City Auditor and Clerk hosted an annual Advisory Board dinner that was well attended by many oft the City's Boards; that he had plaques from the dinner for the Firefighters' Pension Plan Board of Trustees. Book 1 Page 73 7/26/2017 9:00 a.m. Book 1 Page 74 7/26/2017 9:00 a.m. 10. ADJOURN. Chair Hartley adjgurned the Regular Meeting of the Firefighters' Pension Plan Board of Trustees at 10:51 a.m. P Y. Chair Michael Hartleéy SecretayTreasurer Pamela Nadalini