Book 1 Page 98 3/26/18 12:00 p.m. MINUTES OF THE CITY OF SARASOTA GENERAL EMPLOYEES' PENSION PLAN BOARD OF TRUSTEES MEMBERSHIP MEETING OF MARCH 26, 2018 Present: Chair Barry Keeler, Vice Chair Ryan Chapdelain, Treasurer Kelly Strickland, Secretary Pamela Nadalini, Trustees Bonnie Wagner, and Kari McVaugh Others: Attorney Lee Dehner, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Lois Belle Absent: Trustee Gretchen Schneider 1. CALLI MEETING TO ORDER: Chair Keeler called the meeting to order at 12:00 p.m. 2. PLEDGE OF CIVILITY: Chair Keeler read into 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. ROLL CALL: Secretary Nadalini conducted the Board roll call, noting that Trustee Schneider was not in attendance and that she would seek an excused absence at the next meeting. 4. PUBLIC INPUT: No one signed up to speak. 5. APPROVAL OF THE MINUTES: 5.1. Approval Re: Minutes of General Employees' Pension Plan Board of Trustees Regular Meeting of January 26, 2018 AI motion was made by Vice Chair Chapdelain, and seconded by Treasurer Strickland, to approve the minutes of the General Employees' Pension Plan Board of Trustee Regular Meeting of January 26, 2018. Motion carried unanimously (6-0). 5.2. Approval Re: Minutes of General Employees' Pension Plan Board of Trustees Regular Meeting of February 12, 2018 A motion was made by Vice Chair Chapdelain, and seconded by Trustee Wagner, to approve the minutes of the General Employees' Pension Plan Board of Trustee Regular Meeting of February 12, 2018. Motion carried unanimously (6-0). 6. BOARD OF TRUSTEE REPORTS: 6.1. Presentation and Discussion Re: Attendance Report for 2017 Presenter(s): Secretary Nadalini Secretary Nadalini acknowledged Commissioner Ahearn-Koch in the audience and the Board welcomed her. Secretary Nadalini presented a copy of the Annual Attendance report as presented to the City Commission at their meeting of March 19, 2018 which was accepted; that the report is being presented to the General Employees' Pension Plan Board of Trustees as informational and can be accepted by either consensus or motion. By consensus, the Board accepted the Attendance Report for 2017. 6.2. Presentation and Discussion Re: Highlights of Pension Activity for 2017 Presenter(s): Secretary Nadalini Secretary Nadalini presented the Highlights of Pension Activity for 2017; that the highlights represent the Board's activity through 2017, and show that the Board has been quite busy, which is typical of this Body; that Secretary Nadalini commended the Board on the numerous accomplishments throughout 2017 and the Board continued focus on its retirees and fiduciary responsibilities; she thanked the Board for their diligence and efforts. By consensus, the Board accepted the Highlights of Pension Activity for 2017. 6.3. Presentation and Discussion Re: Treasurer's Report fori the Period Ending September 30, 2017 Presenter(s): Treasurer Strickland Treasurer Strickland presented a copy ofTreasurer's report fori the Period Ending September 30, 2017; that it was a very good report, prepared for her by the Pension staff; that there is quite a difference from year ended 9/30/2016 to year ended 9/30/2017; that the difference is primarily in investment income, a difference of $8.2 million; that the average money' weighted rate of return for the fiscal year was 13.4%; that the actuary used the 7.0% assumption rate so that this surplus will be smoothed over the next five (5) years; that the net position of the Plan is $153 million, with an increase of $13.5 million overall!; that the funded ratio of the Plan is 72.7%; that there are a total of 622 participants. Secretary Nadalini stated that she was very pleased to review the Treasurer's report; that the report shows the diversity throughout the portfolio and highlights that this Board is performing their fiduciary responsibility. A motion was made by Vice Chair Chapdelain and seconded by Trustee McVaugh, to accept the Treasurer's report as presented. Motion carried unanimously (6-0). Book 1 Page 99 3/26/18 12:00 p.m. Book 1 Page 100 3/26/18 12:00 p.m. 7. APPROVAL OF RETIREMENT REQUEST/S): 7.1. Approval Re: Deferred Retirement Option Plan (DROP) Request of Timothy Litchet Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Mr. Litchet is 62 years of age; that he has 30.02 years of service time and that he has elected the 66.67% Pop-up option; that Mr. Litchet will enter the DROP effective March 1, 2018. A motion was made by Vice Chair Chapdelain and seconded by Secretary Nadalini to approve the Deferred Retirement Option Plan Request of Timothy Litchet. Motion passed unanimously (6-0). 7.2. Approval Re: Vested, Deferred Retirement Request of Karen McGowan Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Ms. McGowan is 69 years of age; that she has been with the City of Sarasota for 28 years and has 22.08 years of pensionable service time; that she has elected the Lifetime Only option. A motion was made by Secretary Nadalini and seconded by Vice Chair Chapdelain to approve the Vested, Deferred Retirement Request of Karen McGowan. Motion passed unanimously (6-0). Secretary Nadalini took a moment to thank all of the employees and officials that stopped by Karen's retirement party; that Karen has been a great asset to her office and she wishes her nothing but success; that it will be difficult to replace someone with her expertise; that she is an attorney and speaks fluent French. 8. INVESTMENT PERFORMANCE REPORT: None 9. UNFINISHED BUSINESS 9.1. Approval Re: Proposed Changes to Section 24-98 of the City of Sarasota General Employees' Defined Benefit Pension Plan, amending the Board of Trustees Section of the Plan to Provide Eligibility for DROP Members and Retirees of the Plan to Become Trustees of the Board Presenter(s): Attorney Lee Dehner, Christiansen & Dehner, P.A. Attorney Dehner stated that there has been numerous discussion regarding the Board composition; that there is a redlined draft for final review and recommendation to the City Commission. Vice Chair Chapdelain acknowledged that the redlined draft reflects what had previously been discussed and discussion ensued as to whether any additional changes necessary. A motion was made by Vice Chair Chapdelain, and seconded by Trustee Wagner, to accept the proposal as drafted. Motion carried unanimously (6-0). Secretary Nadalini stated that the proposed Ordinance would be presented May 7, 2018 for first reading; that the proposed Ordinance requires public notification; that if the City Commission approves on first reading, the proposed Ordinance will be presented for final adoption on May 21, 2018. Attorney Dehner stated that his office will provide full documentation of the proposed Ordinance to Secretary Nadalini by next week and recommended a copy be sent to the Plan's actuary for an impact statement to be added to the proposal. The Board agreed and Secretary Nadalini stated that her office will provide the proposed Ordinance, as soon as received, to the Plan's actuary for an impact statement. 10. NEW BUSINESS: 10.1. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2018 - 19 Presenter(s): Secretary Nadalini Secretary Nadalini presented the Proposed Annual Budget for Fiscal Year 2018 - 19 to the Board; that the proposed Annual Budget for Fiscal Year 2018 19 remains flat; that the total budget being presented is $261,911; that the budget is consistent with prior year and the last page provides further breakdown of line item costs from the new budget system. Discussion ensued around what the various line items are composed of and Secretary Nadalini provided clarification; that it is important to find at least one training opportunity per year as a Trustee; Attorney Dehner stated that it is a requirement of Chapter 112 that Trustees receive both legal and investment level training or certification annually; that the Annual Budget requirement is two-fold: to prepare, approve and submit a budget annually to the City of Sarasota fort the upcoming fiscal year and to submit actual administrative expenses incurred in the prior fiscal year. A motion was made by Vice Chair Chapdelain, and seconded by Trustee McVaugh, to accept the Annual Budget for Fiscal Year 2018 = 19 as presented. Motion carried unanimously (6-0). 11. ATTORNEY MATTERS: Attorney Dehner stated that the legislative session has adjourned; that there were no bills passed which would be detrimental to the pension plan. 12. OTHER MATTERS: Secretary Nadalini stated that the Annual State of the Pension City Commission Workshop has been scheduled to be held on August 23, 2018. Secretary Nadalini stated that the Firefighters' Pension Plan Board of Trustees had requested Board shirts and business cards to represent them as City of Sarasota Firefighters' Pension Plan Trustees when attending conferences, etc. and that there was interest at the Police Officers' Pension Plan meeting; that if there is interest at the General Employees' Pension Plan Board to please contact Pension Specialist Belle directly. Book 1 Page 101 3/26/18 12:00 p.m. Book 1 Page 102 3/26/18 12:00 p.m. 13. ADJOURN. Chair Keeler adjourned the General Employees' Pension Plan Board of Trustees Membership Meeting at 12:34 p.m. A DAu Ujccer Qa)e Chair Barry Keeler Secretary Pamela Nadalini