MINUTES OF THE CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF FEBRUARY 22, 2017 Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Pamela Nadalini (arrived at 9:10 a.m.) and Trustees Charles Joseph and Scott Snow Others: Attorney Pedro Herrera (arived at 9:05 a.m.), Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Tony Colby, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Lois Belle Absent: None 1. CALL THE MEETING TO ORDER: Chair Hartley called the meeting to order at 9:02 a.m. 2. PLEDGE OF CIVILITY: Chair Hartley 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: Brad Armstrong, Actuary, Gabriel Roeder Smith & Company requested to come before the Board to provide a status update on GASB and Actuarial Valuation. Consensus by Board to hear from Mr. Armstrong after Approval of the Minutes. 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firefighters' Pension Plan Board of Trustees Regular Meeting of January 25, 2017 A motion was made by Trustee Snow, seconded by Trustee Joseph to approve the Minutes of the Firefighters' Pension Plan Board of Trustees Regular Meeting of January 23, 2017. Motion carried unanimously (4-0). Attorney Herrera arrived at 9:05 a.m. Change to the order of the day was made by consensus to allow Brad Armstrong to come before the Board to speak. Brad Armstrong came before the Board to provide a status update to the Board on the GASB 67 & GASB 68 reports and the. Actuarial Valuation; Mr. Armstrong stated that he was in on otherbusiness and wanted to provide update; that the GASB 67 and GASB 68 reports are finished but there was not enough time for the Board to receive and review prior to this meeting; that the Auditor's Report may change preliminary GASB figures and should be completed by Friday or Monday. In response to question by Trustee Snow asking when Mortality Table costs become effective, Mr. Armstrong stated that the costs become effective October 1, 2017 and suggested inviting City and County members to the March meeting. SecretaryTreasurer Nadalini arrived at 9:10 a.m. 5. APPROVAL OF RETIREMENT REQUESTS: None Book 1 Page 53 02/22/17 9:00 A.M. Book 1 Page 54 02/22/17 9:00 A.M. 6. INVESTMENT PERFORMANCE REVIEW: 6.1. Presentation and Discussion Re: DePrince, Race & Zollo Investment Performance as of December 31, 2016 Matthew Williams, Portfolio Manager, and Randy Renfrow, Co-Portfolio Manager, DePrince, Race & Zollo (DRZ) came before the Board to discuss the Plan's overall Investment Performance as of December 31, 2016. Mr. Williams gave a brief overview of DRZ's history with the Plan and introduced Mr. Renfrow. Mr. Renfrow gave a brief overview of DRZ's continuity of management and strategy for 2017; that funds chosen must have at least 1% dividend yield to provide quality bias over time. Mr. Renfrow stated that DRZ likes to see acquisitions within portfolio; that in 2016 there were three acquisitions. In response to a question from Secretary/Treasurer: Nadalini about the risks with takeovers, Mr. Renfrow stated there were three acquisitions in 2016: a chemical company, a refinery company and a service technology company; that all three companies were looking for scale and traded up. DRZ minimized risk by moving out after offers announced. Mr. Renfrow stated that the Plan is up 150 basis points year to date; that the dynamic of the market changing and the last ten years were dominated by growth market; that now see value outperforming growth and portfolio is well situated. In response to a question from Chair Hartley asking if the Board should not be looking toward more farmland funds, Mr. Renfrow stated the current portfolio exposure to farmland is nearly 0; that farmland is not a robust opportunity in the current market. In response to a question from Attorney Herrera asking if the Board if there is anything in the current investment policy that could make DRZ's job easier, Mr. Williams and Mr. Renfrow stated that the investment policy is well situated. In response to a question from Trustee Snow asking if there should be any concern with the index, Mr. Williams stated that DRZ's role is to outperform. Chair Hartley stated that Mr. Mulfinger had advised in his presentation to the Board in January that DRZ is up in all funds. The Board thanked Mr. Williams and Mr. Renfrow for their presentation. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: None 9. ATTORNEY MATTERS: Attorney Herrera stated that the Florida State Legislative Delegation is still in session for another week or so; that there will likely be discussion regarding amending Chapter 112 proposed language in this session; that Financial Disclosure forms will be sent out, usually in May, and are available online. Secretary/Treasurer: Nadalini reminded Board members to retain a receipt of submission. In response to a question from Chair Hartley asking for clarification on termination status based on shifts, Attorney Herrera stated that termination status is based on end of shift date. In response to a question from Chair Hartiey asking for clarification on partial Lump Sum Distributions (LSD) from the Plan, Attorney Herrera stated that only the portion earned after Normal Retirement as defined in Section 24-30 of the Firefighters' Pension Plan Code of Ordinance are eligible for LSD (Section 24-48(4)a.1.). In response to a question from Chair Hartley asking if any legislative updates, Attorney Herrera stated that there is a proposed Bill that seeks to prohibit actuarial assumed rate of return of Plan from exceeding long-range return rate and specifies the method of reducing actuarial assumed rate of return under certain conditions; that Senate Bill 632 was sponsored by Senator Brandes and its companion House Bill 603 was sponsored by Representative Fischer. 10. OTHER MATTERS: Senior Pension Analyst Tony Colby was introduced. Trustee Joseph stated that he has received the UBS conference cost; Attorney Herrera stated that attendance to the UBS conference is within Trustee travel allowances and to forward to Staff for submission. 11. ADJOURN. Chair Hartley adjourned the Firefighters' Pension Plan Board of Trustees Regular Meeting at 10:16 a.m. Chaif Michaell Hartley Secretary/Treasurer Pamela M. Nadalini Book 1 Page 55 02/22/17 9:00 A.M.