MINUTES OF THE REGULAR MEETING OF THE POLICE OFFICERS' PENSION BOARD, SEPTEMBER 23, 2011 Present: Chair Ron Baty, Vice Chair Jody Hudgins (arrived at 8:25 a.m.), Secretary/Treasurer Pamela Nadalini, Trustees Kevin Stiff and Tim Van Schultz Absent: None Others Present: Mr. Larry Cole, Burgess Chambers, Attorney Lee Dehner, Pension Plans Administrator Benita Saldutti, Pension Analyst Gail Loeffler, and Staff Member Diane Torres CALL THE MEETING TO ORDER Chair Baty called the meeting to order at 8:18 a.m. APPROVAL OF THE MINUTES OF AUGUST 26, 2011 On a motion of Trustee Van Schultz and a second of Trustee Stiff, it was moved to approve the minutes of August 26, 2011. Motion carried unanimously. APPROVAL OF DROP REQUEST OF KENNETH CASTRO AND LINDA DENIRO Ms. Saldutti stated that Kenneth Castro, with 27.27 years of service has applied for DROP effective October 1, 2011, with the normal retirement option. Ms. Saldutti stated that Linda DeNiro, age 50 with 22.53 years of service has applied for DROP effective November 1, 2011, with the 100% joint annuitant option. On a motion of Secretary/Treasurer Nadalini and a second of Trustee Van Schultz, it was moved to approve the DROP requests of Kenneth Castro and Linda DeNiro. Motion carried unanimously. MANAGER REVIEW Mr. Cole stated that the Board made the decision to replace Aletheia and presented an analysis of candidates to consider. He suggested that the Board select two or three firms for interviews at the next meeting. He gave an overview concerning the search criteria used to select the firms, which will complement the style of Fayez Sarofim. Vice Chair Hudgins stated that Board should not discard the idea of only having one large-cap growth manager. Mr. Cole stated that he is comfortable with having two large-cap growth managers which will provide more diversification. He presented the performance and statistics for the last five and ten years of the firms presented for consideration. September 23, 2011 1 It was the consensus of the Board to interview Black Rock, ING, and Silvant Capital. STATUS RE: DISABILITY REQUEST OF RICHARD CONWAY AND JANINE CROUGH Attorney Dehner stated that the status of the disability requests have not changed since the last meeting. He continued that the responses to the interrogatories have not been received from Mr. Conway. He continued that Ms. Crough requested a delay on her IME. He continued that the Board may wish to ask Mr. Conway and Ms. Crough attend a scheduled meeting to discuss their situation. Chair Baty suggested that a letter of confirmation be sent to determine if Mr. Conway and Ms. Crough are still pursuing the disability requests as he is not comfortable with asking Mr. Conway and Ms. Crough come before the Board. OTHER MATTERS Lead Plaintiff Status Ms. Saldutti stated that a memorandum was received from Mr. Darren Robbins and Mr. David Walton, Robbins Geller Rudman & Dowd, requested the Board to seek lead plaintiff status in the lawsuit against the Great Atlantic & Pacific Tea Company, Inc. She recommended that the Board not seek lead plaintiff status as a lead plaintiff because it requires a lot of time and work and lead plaintiff does not receive any more money than other members of the class. On a motion of Vice Chair Hudgins and a second of Secretary/Treasurer Nadalini, it was moved not to consider the status as lead plaintiff in the lawsuit. Motion carried unanimously. General Employees' Pension Status Ms. Saldutti stated that a lot of staff time will be spent working on implementing the changes to the General Employees' Pension Plan. She continued that approximately 20 classes will be conducted to educate the general employees on their options. Regal Entertainment Vice Chair Hudgins stated that the comments made by Franklin Templeton regarding Regal Entertainment are still bothersome. He requested that Mr. Cole provide analysis on the company. Ms. Saldutti stated the Board must be careful not to move into the territory portfolio management. Vice Chair Hudgins replied that Franklin Templeton specifically called attention to the stock in their presentation, which opens the door for further scrutiny. September 23, 2011 2 Police Officers' Pension Plan Status Trustee Stiff stated that the members are trying to understand the pension plan changes that may be imposed by the City Commission. Secretary/Treasurer Nadalini stated that the City and PBA are at impasse. Attorney Dehner stated that the Board must be careful not to interfere with the collective bargaining process. Trustee Van Schultz stated that the next step is a public hearing by the City Commission, which has been scheduled for October 17, 2011. Trustee Van Schultz stated that the PBA and its members have a no contact order with the Commission. Next Meeting The next regular meeting will be at 8:15 a.m. on Friday, October 28, 2011, in the City Commission Chambers. Adjourn The meeting was adjourned at 9:22 a.m. Chair Baty Secretary/Treasurer Nadalini September 23, 2011 3