Book 1 Page 64 04/28/17 8:15 a.m. MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF APRIL 28, 2017 Present: Chair Kevin Stiff, Vice Chair Ron Baty, Secretary/Treasurer Pamela Nadalini, Trustees Duncan Miller and Darrell Nixon Others: Attorney Lee Dehner, Senior Pension Analyst Anthony Ferrer, Senior Pension Accountant Cynthia Akersloot, and Pension Specialist Lois Belle Absent: None 1. CALL MEETING TO ORDER: Chair Stiff called the meeting to order at 8:16 a.m. 2. PLEDGE OF CIVILITY: Chair Stiff 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: Two individuals signed up to speak: John LeBlanc and Kevin Churchilll. Mr. LeBlanc and Mr. Churchill came before the Board together. Mr. LeBlanc introduced himself to the Board; that he was a retired Police Lieutenant. Mr. Churchill introduced himself to the Board that he was a retired Police Sargent. Mr. LeBlanc stated that he retired from the City of Sarasota Police Department in June 2016 and his purpose in speaking before the Board was to bring attention to his retirement experience and what he perceives to be a lack of timeliness regarding the payment of his deferred retirement option plan (DROP) rollover funds as of separation from employment; that he believes that delay resulted in lost investment income and is requesting a review of procedures; that if the delay he experienced is not in accordance with required pension procedure then he is requesting appropriate reimbursement. Mr. LeBlanc provided a summary of his retirement timeline and his paperwork submission to the Board; that he expressed dissatisfaction with the timing of his DROP rollover to Mass Mutual and was advised that the timing was in accordance with Pension procedures; that he was provided with the option to bring a formal grievance before the Board. And at that time Mr. LeBlanc chose not to pursue. Mr. LeBlanc advised that Mr. Churchill did not experience such delay. Mr. Churchill advised the Board that the timeframe for the rollover of his DROP distribution was eleven (11) days. 4. APPROVAL OF THE MINUTES: 4.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Annual Membership Meeting of March 24, 2017 A motion was made by Trustee Miller and seconded by' Vice Chair Baty to approve the Minutes of the Police Officers' Pension Plan Board of Trustees Annual Membership Meeting of March 24, 2017. Motion carried unanimously (5-0). Chair Stiff stated he would like to the following put into the record. "It has been brought to my attention that Commissioner Chapman referred to a conversation I had with her about a recent audit of financial statements. It is my understanding that she stated that I told her I had resigned from the board because I had lost faith in the Board. I did not. I do not know if she misheard or misunderstood what I said. I did not say to her that I'd lost confidence in the Board. I did tell her that the Board had discussed the audit and believed that the steps being taken were sufficient. I did tell her this meeting was my last meeting because - had resigned my position. There are several reasons why I resigned my position from the Board, primarily because Board Member Nixon and I are retiring before the end of the year and are already seeking a replacement for Board Member Nixon and I thought it would be better for the flow of the Board to have two new Members come on at the same time. My resignation from the Board has been discussed at this table numerous times. The only comments I made to her about city staff were that I'd spoken to the pension attorney and he had advised me that city staff does not work for the Board but with the Board. I believe the comments she said I referred to during her meeting were comments I made about pension department at our last meeting. If anybody needs any further clarification of the pension department please get with me I will assist you. She also referred to a copy of the audit that had highlighted and said that had made comments on that, that she thought I was frustrated. The only information on that audit were questions that was asking at the table at our last meeting. Thank you. 5. BOARD OF TRUSTEES' REPORT: 5.1. Presentation and Discussion Re: Treasurer's Report for the Period Ending September 30, 2016 Presenter(s): Secretary/reasurer Nadalini Secretary/lreasurer Nadalini presented the Treasurer's Report to the Board; that a requirement is to present the annual Attendance Report to the Board and the Members of the Plan; that the Attendance Report is based on the records and as reflected in the approved monthly Board Minutes throughout 2016. A motion was made by Vice Chair Baty and seconded by Trustee Miller to accept the Treasurer's Report as presented. Motion carried unanimously (5-0). 6. APPROVAL OF RETIREMENT REQUEST/S): 6.1. Approval Re: Non-line of Duty Disability Retirement Request of David Van Gostein Presenter(s): Senior Pension. Analyst Ferrer Senior Pension Analyst Ferrer stated that the non-line of Duty Disability Retirement Request of David Van Gostein calculation was prepared as approved at the Police Officers' Pension Plan Board of Trustee Special Meeting of February 24, 2017; that Mr. Van Gostein elected the 100% Joint and Survivor Option; that the final calculation was certified by the actuary. A motion was made by Secretary/Treasurer Nadalini and seconded by Trustee Nixon for the Board to approve the non-line of duty disability retirement request of David Van Gostein. Motion carried unanimously (5-0). In response to a question by Secretary/Treasurer Nadalini asking how to handle the confidential disability copies provided for the Board as needed, Attorney Dehner stated that at the conclusion of the final disability hearing all individual Board disability packages should be scheduled for destruction though administrative convenience. 7. INVESTMENT PERFORMANCE REVIEW: 7.1. Presentation and Discussion Re: SSI Investment Performance as of March 31, 2017 Presenter(s): James Kowal, Vice President, and Michael Opre, Portfolio Manager, SSI Investment Management James Kowal, Vice President, and Michael Opre, Portfolio Manager, SSI Investment Management, came before the Board. Book 1 Page 65 04/28/17 8:15 a.m. Book 1 Page 66 04/28/17 8:15 a.m. Mr. Kowal provided a brief overview of SSI Investment Management's strategy to the Board and stated that SSI specializes in Investment Bonds and Convertibles. Mr. Opre discussed portfolio performance and the market environment for the First Quarter of 2017; that the portfolio was below benchmark due to extremely low rated opportunities; that SSI is prohibited from investing in low rated opportunities as part of adherence to the Firefighters' Investment Policy Statement. In response to a question from Secretary/Treasurer: Nadalini asking what the rate of cash flow was, Mr. Opre stated that the rate of cash flow was below 5%. A motion was made by Secretary/Treasurer Nadalini and seconded by Trustee Nixon to accept the SSI Investment Performance report as of March 31, 2017. Motion carried unanimously (5-0). 8. UNFINISHED BUSINESS: 8.1. Approval Re: Additional Invoice for Auditing Services Presenter(s): Alison Wester, CPA Partner, Mauldin & Jenkins, LLC (via teleconference) Alison Wester, CPA, Partner, Mauldin & Jenkins, LLC came before the Board via teleconference. Ms. Wester stated that as discussed by the Board in the March 24, 2017 meeting, she provided an additional invoice for auditing services incurred during the audit for Fiscal Year ended September 30, 2016; that the invoice of additional fees, already discounted 50% because the hours were incurred were at manager and partner rate. In response to a question from Vice Chair Baty asking ift the additional invoice met contract stipulations, further discussion ensued. Chair Stiff noted Board consensus for Attorney Dehner to review contract further and that if Mauldin & Jenkins failed to meet the contractual requirements relating to request of additional fees then Ms. Wester will need to attend, in person, the Police Officers' Pension Plan Board of Trustee meeting to discuss. 9. NEW BUSINESS: 9.1. Approval Re Proposed Annual Budget for Fiscal Year 2017 - 18 Presenter(s): Secretary/reasurer Nadalini Secretary Nadalini presented the Proposed Annual Budget for Fiscal Year 2017 - 18; that there were slight increases on various line items; that the overall budget is $243,463, an increase of approximately $43k from prior yèar's approved budget; that these funds are allocated from the fund and any unused budget would return to the fund. A motion was made by Trustee Miller and seconded by Trustee Nixon to accept the Proposed Annual Budget for Fiscal Year 2017 - 18. Motion carried unanimously (5-0). 9.2. Presentation and Discussion Re Distribution of DROP funds as of Separation from Service from the Sarasota Police Department Presenter(s): Chair Stiff Chair Stiff stated that Mr. LeBlanc contacted him regarding this issue; that he had internal conversations with Staff and Attorney Dehner; that this is not a Code issue but rather an Internal procedure issue. Chair Stiff stated that he is asking Board to provide direction to staff that if a member chooses to waive the timeframe the Plan should be able to disburse Funds as quickly as possible and discussion ensued around the internal policy and procedure regarding the DROP disbursement and what the Code specifies. Mr. LeBlanc came back before the Board to clarify what interest he referred to; that he was referring to the potential interest he would have earned at 4% if funds were disbursed earlier to Mass Mutual. Secretary Nadalini stated that she will work with Staff and discuss with the Plan Attorney to determine if current procedures in place can be improved. There was Board consensus for Secretary Nadalini to present findings for discussion at the Police Officers' Pension Plan Regular Meeting of May 28, 2017. 9.3. Presentation and Discussion Re Management Fee Decrease for Wells Capital Presenter(s): Attorney Lee Dehner, Christiansen & Dehner, PA Attorney Lee Dehner, Christiansen & Dehner, PA, presented a proposed addendum for fee reduction for Wells Capital with an effective date of April 1, 2017; that he will review addendum and bring before the Board. 10. ATTORNEY MATTERS: Attorney Dehner stated that no updates are necessary regarding legislation; that more will be known at the next meeting. 11. OTHER MATTERS: Secretary/Treasurer: Nadalini reminded the Board that Financial Disclosure Statements are coming due and reminded everyone to retain a receipt of submission. Chair Stiff stated that this was his final meeting and that he would like to thank the Board, City Staff, Attorney Dehner and Larry Cole. 12. ADJOURN. Chair Stiff adjourned the Police Officers' Pension Board of Trustees Regular meeting at 10:12 a.m. * a Vice Chair Ron Baty Secretary/Treasurer Pamela Nadalini Book 1 Page 67 04/28/17 8:15 a.m.