Book 1 Page 32 07/22/16 8:15 A.M. MINUTES OF THE JULY 22, 2016 CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING Present: Chair Kevin Stiff, Vice Chair Ron Baty, Secretary/Treasurer Pamela Nadalini, Trustees Duncan Miller and Darrell Nixon Others: Attorney H. Lee Dehner, Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Chinyere Deehan Absent: None 1. CALL MEETING TO ORDER: Chair Stiff called the meeting to order at 8:15 a.m. 2. PLEDGE OF CIVILITY: Chair Stiff reviewed the 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 Police Officers' Pension Plan Board of Trustees Regular Meeting of June 17, 2016 AI m Book 1 Page 7/22/16 8:15 A.M. otion was made by Trustee Miller, seconded by Vice Chair Baty, to approve the minutes of the June 17, 2016, Police Officers' Pension Plan Board of Trustees Regular Meeting. Motion carried unanimously (5-0). 5. APPROVAL OF RETIREMENT REQUEST/S): None 6. INVESTMENT PERFORMANCE REVIEW: 6.1. Presentation and Discussion Re: Franklin Templeton Small/Mid Growth Portfolio Brian Beda, SMA Business Manager, and James Farrell, SMA Advisor Consultant, Franklin Templeton, came before the Board to present the Franklin Templeton Small/Mid Growth Portfolio. Mr. Beda stated that there were no changes on the management team within the firm; that as of June 30, 2016, the value of the portfolio is $5.5 million. Mr. Farrell stated that for the quarter ending June 30, 2016, the rate of return is 5.01% versus the benchmark at 3.24%; that the performance since inception in 2006 is 9.53% versus the benchmark of 6.42%. Mr. Farrell continued and provided a market update, and stated that China is devaluing their currency created volatility in the equity markets; that the United Kingdom exiting the European Union, tepid inflation and low job growth in the U.S. also led to volatility in the market, and briefly discussed the sector weightings and top holdings in the City of Sarasota Police Officer's Pension Fund. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: Changes to Police Pension Ordinance Edward Whitehead and Alan Woodle, retired City of Sarasota Police Officers, came before the Board to discuss changes to the Police Pension Ordinance. Mr. Whitehead stated that there has been issues that have come before the Board which directly affects retirees; that he feels a retiree should have a permanent position as a Member on the Board; that he is not asking for any changes regarding how the Board members are appointed to the Board but feels that there should be a Member of the Board that represents the interests of the retirees. In response to a question from Vice Chair Baty regarding what the procedure would be if there is not a retiree who wishes to be appointed as a Member of the Board, Mr. Whitehead stated that the Board would go back to how it was previously, but he doubts that this would be the case. In response to a question from Vice Chair Baty asking if the Firefighters' Board of Trustees have these stipulations, Ernest Cave, retired Firefighter, came before the Board and stated that the Firefighters' Ordinance allows for retirees to be appointed as Members of the Board but there is nothing in the Ordinance that states that there must be a retiree on the Board. In response to a question from Chair Stiff asking if this change can be made to the Police Pension Ordinance, Attorney Dehner stated that the requirements of Statute 185 specifies what constitutes the Board and how the Members are chosen, therefore instituting this change would not be possible; that a retiree could be selected as one of the City of Sarasota's appointments if they are a resident of the City, or a retiree could be appointed by the Board which does not require residency; however the Board would be unable to restrict a seat on the Board to retirees only. Secretary/Treasurer Nadalini stated that she approves of the idea of having a retiree on the Board but agrees with Attorney Dehner that the Ordinance cannot to be changed because of the Statute; that interested retirees may currently submit an Advisory Board Application to be considered for Board Membership which are kept on file for one year; that when vacancies are available, the Members of the Board may consider the retirees that have applied for the position; that the current process allows for retires to apply for membership on any of the Pension Plan Boards; that two members are appointed by the City Commission and two members are elected by the Police Pension Board. 8.2. Status Report Re: Annual State of the City's Pension Plans Workshop of the City Commission Pension Plans Administrator Ramphal stated that the Annual State of the Pension Plans Workshop is scheduled for August 23, 2016 at 5:00 p.m.; that the plans' Attorneys, Actuaries, Auditors and Consultants for all four pension plans will be in attendance to present to the City Commission. Secretary/Treasurer Nadalini stated that the City Commission benefits from the Workshop as they are very interested in learning about the pension plans. 9. ATTORNEY MATTERS: Attorney Dehner discussed the Share plan and the Mutual Consent Agreement with the Board Members, and stated that in order to comply with the statutory requirements of having a Share Plan, a provision may be added to the Ordinance regarding adopting the Share Plan; however if the Board agrees, he can amend the provision. Book 1 Page 33 7/22/16 8:15 A.M. Book 1 Page 34 7/22/16 8:15 A.M. Discussion ensued regarding the provision to the Ordinance regarding the Share Plan. Attorney Dehner stated that the Actuarial Valuation Report is available on the City of Sarasota website and asked if the calculations have been received by the plan's Actuary, Pete Strong, and Pension Plans Administrator Ramphal stated that the information is available on the City of Sarasota website. Attorney Dehner confirmed that all Board Members had submitted their Form 1 Financial Disclosures. Chair Stiff left the Chambers at 9:17 a.m. and returned to the Chambers at 9:19 a.m. 10. OTHER MATTERS: None 11. ADJOURN. Chair Stiff adjourned the Police Officers' Pensions Board of Trustees Regular meeting at 9:20 a.m. Mwo Chair Kevin Stiffk Secretary/Treasurer Pamela M. Nadalini