MINUTES OF THE CITY OF SARASOTA FIREFIGHTERS PENSION PLAN BOARD OF TRUSTEES REGULARMEETING OF MAY 22, 2019 Present: Chair Michael Hartley, Vice Chair Shelia Roberson, Secretary/Treasurer Shayla Griggs, and Trustee Charles Joseph Others: Attorney Pedro Herrera, Pension Plans Administrator Debra Martin, and Senior Pension Analyst Anthony Ferrer Absent: Trustee Scott Snow 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. PUBLICINPUT: None 4. APPROVAL OF MINUTES: 4.1. Approval Re: Minutes of the Firetighters' Pension Plan Board of Trustees Regular Meeting of April 24, 2019. A motion was made by Vice Chair Roberson and seconded by Trustee Joseph to approve the Minutes of the Firefighters' Pension Plan Board of Trustees Regular Meeting of April 24, 2019. Motion carried unanimously (4-0). 5. INVESTMENT PERFORMANCE REVIEW: 5.1. Presentation and Discussion Re: Wedge Capital Management Investment Performance as of March 31, 2019. Presenter: Leah Long, CFA, General Partner, Wedge Capital Management, LLP Ms. Long came before the Board and introduced herself. Ms. Long provided an overview of Wedge Capital Management, LLP; an independent institutional money manager located in Charlotte, NC; that the firm has added six (6) new partners and has eighteen (18) partners in all; that the Company is at $11.2 billion in assets under management as of March 31, 2019. Book 1 Page 145 05-22-19 9:00 a.m. Book 1 Page 146 05-22-19 9:00 a.m. Ms. Long discussed the portfolio's performance as of March 31, 2019; through May 17,2019 the Plan's portfolio is up 14.9% year to date and that's 2.6% ahead of the benchmark at 12.3%; that net of fees at the 1-year is 1.99% and 3-year is 11.31%; that Q1 2019 technology overweight was very positive; sector over and underweights were responsible for almost a percent of outperformance in the first quarter; stock selection in consumer cyclicals and financials contributed to 1.73% outperformance for a combined 2.7% outperformance in the first quarter. Ms. Long gave a brief overview of asset allocations; economic growth as shown through GDP and noted unemployment numbers are extremely strong right now. Vice Chair Roberson asked for a list of key staff to be included in the presentation packet. The board thanked Ms. Long for her presentation. 6. UNFINISHED BUSINESS: None 7. NEW BUSINESS: None 8. ATTORNEY MATTERS: Attorney Herrera reminded the board the Form 1 Financial Disclosures are due on July 1 and can now be submitted online. Attomey Herrera stated the Florida Legislative session has ended and there is one Bill that effects the Plan, Senate Bill 426 and house HB857 has passed and becomes effective July 1, 2019. Senate Bill 426 and House HB857 provide for firefighter's cancer presumption for death and disability along with providing support for medical assistance along with a ten year look back from the effective date; Attomey Herrera will propose a minor amendment to the Pension ordinance at the next meeting. Trustee Joseph asked how the Bill effects members whom are retired, Attorney Herrera replied this is currently being reviewed with the Division of Retirement for clarification. Trustee Joseph asked if the Plan's Actuary would then be required to review the Plan, Attorey Herrera replied that after discussions with the Actuary, there likely will be a cost impact at some point in the future, it is unknown if there would be an assumption change until there is more experience with this new benefit. Attorney Herrera discussed website Americans with Disabilities Act (ADA) compliance, there have been several successful litigations against public agencies for noncompliance. Attorney Herrera recommends making it known to the Plan's vendors sO that they start providing presentation materials that meet. ADA compliance. Attomey Herrera discussed educational opportunities coming up; FPPTA at the end of June in Orlando and registration is open; and that the FPPTA holds Trustee School in Ponte Vedra, FLi in the Fall; and noted that the Division of Retirement School in Orlando is coming up in the fall. 9. OTHER MATTERS: Ms. Martin informed the Board the required annual report to The Division of Retirement has been resubmitted. The first submission came back with a few items needing more clarifications. 9.1. Administrative Expense Budget Analysis Presenter(s): Debra Martin, Pension Plans Administrator and Lori Boyer, Senior Pension Accountant Ms. Martin stated the first sheet in the column second from the right is the administrative budget that Trustees approved in the March meeting. The first column is the actual year to date, the second column is where the Plan was at 2018 year to date; the percentage increase, decrease and in the last column the percentage expended. Ms. Martin discussed the second two sheets are currently, as of March 31, 2019, the statement of changes and fiduciary net positions which is essentially the income statement according to the Plan's accounting software. These are unaudited, there are no accruals sO there will be some timing issues as items are recognized and entered into the accounting system. Senior Pension Accountant Lori Boyer has recognized the need to establish additional accounts in order to provide more useful information to the Board. Ms. Martin noted The Administrative Expense Budget Analysis will be provided to the Board, quarterly. Chair Hartley asked for clarification on line item "City Allocations" on the bottom of page 2; Ms. Martin noted she will review and present this at the June meeting. Discussion ensued regarding this Fiduciary Insurance coverage. The Board noted consensus to review Fiduciary Insurance coverage current limits at the June meeting and then submission of Insurance quotes at the July Meeting for approval. Attorney Herrera asked that current Insurance documents be sent to him electronically. Vice Chair Roberson noted the Board had requested a representative from Salem Trust to be present at the May meeting; Ms. Martin replied Mr. Mark Rhein of Salem Trust will come before the Board at the June Meeting. 10. ADJOURN: Chair Hartley adjourned the Firetighters Pension Plan Board of Trustees Regular Meeting at 10:16 a.m. Rubusidli Chair Michael Hartéy Vice Chair Shelia Roberson Book 1 Page 147 05-22-19 9:00 a.m.