MINUTES OF THE CITY OF SARASOTA GENERAL EMPLOYEES' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF APRIL 16, 2018 Present: Chair Barry Keeler, Vice Chair Ryan Chapdelain, Treasurer Kelly Strickland, Secretary Pamela Nadalini, Trustees Bonnie Wagner, Gretchen Schneider and Kari McVaugh Others: Attorney Lee Dehner, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Lois Belle Absent: Secretary Pamela Nadalini 1. CALL MEETING TO ORDER: Chair Keeler called the meeting to order at 8:30 a.m. 2. PLEDGE OF CIVILITY: Chair Keeler read into the record a memorandum from former acting Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." Trustee McVaugh entered Chambers at 8:31 a.m. 3. ROLL CALL: Senior Pension Analyst Ferrer conducted the Board roll call, noting that Secretary Nadalini was not feeling well and would not be in attendance; 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 Membership Meeting of March 26, 2018 A motion was made by Vice Chair Chapdelain, and seconded by Trustee McVaugh, to approve the minutes of the General Employees' Pension Plan Board of Trustee Membership Meeting of March 26, 2018. Motion carried unanimously (6-0). 6. APPROVAL OF RETIREMENT REQUESTIS): 6.1. Approval Re: Early Retirement Request of Kim De Nais Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Ms. De Nais is 60 years of age; that she has 18.55 years of service time and that she has elected the 50% Pop-up option. Book 1 Page 103 4/16/18 8:30 a.m. Book 1 Page 104 4/16/18 8:30 a.m. A motion was made by Trustee Schneider and seconded by Vice Chair Chapdelain to approve the Early Retirement Request of Kim De Nais. Motion passed unanimously (6-0). 6.2. Approval Re: Deferred Retirement Option Plan (DROP) Request of Scott Pattinson Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Mr. Pattinson is 65 years of age; that he has 18.59 years of service time and that he has elected the 100% Pop-up option; that Mr. Pattinson will enter the DROP effective April 1, 2018. A motion was made by Trustee McVaugh and seconded by Trustee Schneider to approve the Deferred Retirement Option Plan Request of Scott Pattinson. Motion passed unanimously (6-0). 6.3. Approval Re: Vested, Deferred Retirement Request of Michele Russo Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Ms. Russo is 55 years of age; that she started with the City of Sarasota August 2000 through December 2010, and earned 10.12 years of pensionable service time; that she has elected the Lifetime Only option. A motion was made by Trustee Schneider and seconded by Trustee McVaugh to approve the Vested, Deferred Retirement Request of Michele Russo. Motion passed unanimously (6-0). 6.4. Approval Re: Early Retirement Request of Janice Wagner Presenter(s): Senior Pension Analyst Ferrer Senior Pension Analyst Ferrer stated that Ms. Wagner is 62 years of age; that she has 20.48 years of service time and that she has elected the 100% Pop-up option. A motion was made by Vice Chair Chapdelain and seconded by Trustee Schneider to approve the Early Retirement Request of Janice Wagner. Motion passed unanimously (6-0). 7. INVESTMENT PERFORMANCE REPORT: 7.1. Presentation and Discussion Re: Franklin Templeton Investment Performance Report as of December 31, 2017 Presenter(s): Brian Benneman, VP and Senior Advisor Consultant, Franklin Templeton Distributors, Inc. Mr. Brenneman came before the Board and introduced himself. Mr. Brenneman began his discussion at the Fund's performance and characteristics section of his presentation; that the total Net Assets of the fund at September 30, 2017 were $11,294,839; that the total Net Assets oft the fund at December 31, 2017 were $11,689,241; that the Average Annual Total Returns were shown gross of fees but that he would follow up with Staff to provide the Board with Total Returns net of fees; that gross performance last year was 22.5%, slightly down from bench. Mr. Brenneman discussed the fund's section allocation and Franklin's current perspectives regarding those sectors as of December 31, 2017. In response to a question from Trustee Wagner asking Mr. Brenneman to explain diversified financials and provide example, Mr. Brenneman stated that diversified financials tend to be conglomerates, globally diversified financial company such as ING, MetLife or AIG, a Firm along those lines; that there is oversaturation in consumer staples and real estate; that there is a tremendous opportunity in Financials, Healthcare and Energy. In response to a question from Trustee Wagner asking Mr. Brenneman about Deutsche Bank, Mr. Brenneman stated Deutsche Bank was one of the most leveraged banks; that Franklin does not work with any German banks currently but have positions with French and Italian financial institutions. Mr. Brenneman shared the fund's geographical allocation and his firm's current perspectives. In response to a question from Chair Keeler asking Mr. Brenneman about the impact of President Trump's proposed trade tariffs, Mr. Brenneman stated that regional tariffs or restrictions are never conducive to global trade. He discussed the fund's top ten (10) equity holdings; that the firm is heavy on banks and energy. Vice Chair Chapdelain requested a copy of Franklin Templeton newsletter and fund performance net of fees be sent to Board. The Board thanked Mr. Brenneman for his presentation. 8. UNFINISHED BUSINESS 8.1. 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 Scott Christiansen, Christiansen & Dehner, P.A. Attorney Christiansen stated that the updated proposed changes reflect minor tweaks proposed by Assistant City Attorney Warren and City of Sarasota Human Resources Director Mason; that the suggested language changes are not material changes and explained what those suggested changes were. In response to a question from Chair Keeler and Vice Chair Chapdelain asking if this changes the timeline, Senior Pension Analyst Ferrer confirmed the proposed Ordinance will still be presented May 7, 2018 for first reading. A motion was made by Vice Chair Chapdelain, and seconded by Trustee Schneider, to accept the revised ordinance with incorporated suggested language. Motion carried unanimously (6-0). 10. NEW BUSINESS: None 11. ATTORNEY MATTERS: Attorney Christiansen reminded the Board that Officer elections will be held at the May Board meeting; that the Operating Rules and Procedures are on hold until the accounting system has been changed from the City's Financial Management System (FMS) to the Peachtree accounting system that currently Book 1 Page 105 4/16/18 8:30 a.m. Book 1 Page 106 4/16/18 8:30 a.m. records both the Firefighters' Pension Plan and the Police Officers' Pension Plan accounting. Senior Pension Analyst Ferrer stated that Staff has studied, analyzed and reviewed the transition from the City's financial management system to Peachtree; that Pension Administration will migrate once the department is fully staffed. Attorney Christiansen provided a status update on the Goenne overpayment situation; that he wanted to address potential next steps with the Board prior to the statute of limitations running out; discussion ensued around possible options to pursue and the risk management of further pursuit; Chair Keeler stated that he is in contact with employees that can get in touch with Mr. Goenne. Attorney Christiansen will work with Chair Keeler to determine Mr. Goenne's current situation; that he will bring information back to Board to determine if it is fiscally responsible to continue pursuit of the overpayment. 12. OTHER MATTERS: None 13. ADJOURN. Chair Keeler adjourned the General Employees Pension Plan Board of Trustees Regular Meeting at 9:19 a.m. M.N Bapanlleape CRRT. un g Chair Barry Keeler Secretary Pamela Nadalini