MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF OCTOBER 27, 2017 Present: Chair Ron Baty, Vice Chair Duncan Miller, Secretary/Treasurer Pamela Nadalini, Trustees Demetri Konstantopoulos and Johnathan Todd Others: Attorney Lee Dehner, Pension Plans Administrator Cynthia Akersloot, Senior Pension Analyst Anthony Ferrer and Pension Specialist Lois Belle Absent: None 1. CALL MEETING TO ORDER: Chair Baty called the meeting to order at 8:15 a.m. 2. PLEDGE OF CIVILITY: Chair Baty 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. PUBLIC INPUT: No one signed up to speak. 4. APPROVAL OF THE MINUTES: 4.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of September 27, 2017 AI motion was made by Vice Chair Miller and seconded by Trustee Todd to approve the Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of July 28, 2017. Motion carried unanimously (5-0). Secretary/Treasurer Nadalini entered Chambers at 8:16 a.m. 5. APPROVAL OF RETIREMENT REQUEST/S)!: None 6. INVESTMENT PERFORMANCE REVIEW: 6.1. Presentation and Discussion Re: Salient Investment Performance as of September 30, 2017 Presenter(s): David Hicks, CFA, Head of Institutional Investments, Salient David Hicks, CFA, Head of Institutional Investments, Salient, came before the board and introduced himself. Book 1 Page 83 10/27/17 8:15 a.m. Book 1 Page 84 10/27/17 8:15 a.m. Mr. Hicks provided a strategic overview of the firm; that there are no team changes and that Salient deals with high quality, mid-stream companies and began to discuss oerformance but his presentation was interrupted by an unruly member of the public. Chair Baty called for a brief recess at 8:25 a.m. Meeting resumed at 8:40 a.m. Mr. Hicks resumed his presentation and stated that valuations are very attractive; that the fundamentals are strengthening; that the principal factor controlling Master Limited Partnerships (MLPs) is the correlation to crude oil; that pipelines are taking product to refineries and/or chemical companies. Larry Coles, Senior Consultant, Burgess Chambers and Associates came before to Board to add to the conversation; that the outlook on the MLP space is positive but that there is a major disconnect between market and performance; but that he would recommend holding the current position; Chair Baty agreed with Mr. Cole's recommendation to hold position. The Board thanked Mr. Hicks for his presentation. 6.2. Presentation and Discussion Re: Burgess Chambers Investment Performance as of September 30, 2017 Presenter(s): Larry Cole, Senior Consultant, Burgess Chambers & Associates Mr. Larry Cole remained at the dais. Mr. Cole stated that the final numbers for the quarter are good and stocks are up; that there are no compliance issues; that net of fees the Plan was up 3.8% for the quarter and up from benchmark; that the Plan is 12.3% for the year, also beating benchmark. Mr. Cole provided an overview of each Investment Manager; that there are no concerns with any of the Investment Managers; that the diversity of the portfolio helps smooth the volatility. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: Expected Rate of Return Presenter(s): Larry Cole, Senior Consultant, Burgess Chambers & Associates and Pete Strong, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company Pension Specialist Belle conferenced Mr. Pete Strong, Gabriel, Roeder, Smith & Company into the meeting. Mr. Cole stated that he is not recommending any change to the current 7.0% expected rate of return for the Police Officers' Pension Plan; Mr. Strong agreed that the expected rate of return should remain at 7.0%; there was Board consensus to remain at an expected rate of return of 7.0% for Fiscal Year 2018. 8.2. Presentation and Discussion Re: Proposed Audited Engagement Letter for Fiscal Year Ended September 30, 2017 Presenter(s): Alison Wester, CPA, Partner, Mauldin & Jenkins, LLC Ms. Alison Wester came before the Board and introduced herself. Ms. Wester presented the Audit Engagement letter for Fiscal Year ended September 20, 2017; that this year's engagement letter is consistent with prior years. Discussion ensued around changing the engagement letter to ensure that any additional fees would require Board approval prior to being incurred. Direction to remove "if possible" from page 7 first paragraph. A motion was made by Secretary/Treasurer Nadalini, and seconded by, to approve the Audited Engagement Letter for Fiscal Year Ended September 30, 2017 with changes as noted on the record. The motion carried unanimously (5-0). 9. ATTORNEY MATTERS: Attorney Dehner stated that Senate Bill 80 legislation passed; that we are required to post notice of Public Records; Secretary/Treasurer Nadalini stated that this has been completed. Attorney Dehner stated that his firm is in the process of transitioning clients outside of their current travel zone to other firms; that there are no changes to services provided fort the Police Officers' Pension Plan Board. Attorney Dehner provided an update on Proposed Ordinance No. 15-5149 and Proposed Ordinance No. 17-5232; that both passed on first reading by the City Commission and will be going for second reading and approval at the City Commission Regular Meeting on November 6, 2017. 10. OTHER MATTERS: Secretary/Treasurer: Nadalini stated that Cynthia Akersloot has been promoted to Pension Plans Administrator; that the 2018 proposed meeting schedule has been included in the handout material and that if there are any conflicts to please email Staff. 11. ADJOURN. Chair Baty adjourned the Police Officers' Pension Board of Trustees Regular meeting at 9:45 a.m. CMol 01 Chair Baty Secretary/Treasurer: Nadalini Book 1 Page 85 10/27/17 8:15 a.m.