Book 1 Page 48 01/23/17 10:00 A.M. MINUTES OF THE CITY OF SARASOTA GENERAL EMPLOYEES PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF JANUARY 23, 2017 Present: Chair Barry Keeler, Vice Chair Ryan Chapdelain, Secretary Pamela Nadalini, Treasurer Kelly Strickland, Trustees Gretchen Schneider, Kari McVaugh, and Bonnie Wagner Others: Attorney Scott Christiansen, Pension Plans Administrator Harry Ramphal, Senior Pension Analyst Anthony Ferrer, and Pension Specialist Lois Belle Absent: None 1. CALLI MEETING TO ORDER: Chair Keeler called the meeting to order at 10:14 a.m. 2. PLEDGE OF CIVILITY: Chair Keeler 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. ROLL CALL: Secretary Nadalini called the roll and a quorum for the meeting was noted. 4. PUBLIC INPUT: Former Mayor, Vice Mayor, Commissioner and Prequalified Candidate for the 2017 City Election for an At-Large Seat Fredd "Glossie" Atkins came before the Board and stated that he has always supported and continues to support the General Employees of the City of Sarasota. Susan Blake, Member of the Teamsters 173, a Union representing certain General Employees', came before the Board and requested approval for an Actuarial Impact Study; that the Sarasota Police Department currently has civilians and these individuals are covered under the Southwest Florida Police Benevolent Association (PBA), Inc. contract; that the question to be addressed is what is the Board doing to represent those individuals? A motion was made by Secretary Nadalini, seconded by Vice Chair Chapdelain for the Board to authorize the City and/or the Union to request Actuarial Impact Study for benefit changes with the condition that the requesting party pays the full cost. Motion carried unanimously (7-0). 5. APPROVAL OF THE MINUTES: 5.1. Approval Re: Minutes of General Employees' Pension Plan Board of Trustees Regular Meeting of December 5, 2016 Vice Chair Chapdelain stated that the General Employees' Pension Plan Board of Trustees Regular Meeting Minutes of December 5, 2016 needed a correction, that verbiage should read "Vice Chair Chapdelain stated that he would like to address incrementally lowering the Assumed Rate of Return in the next year and added that he would like to see the rate lowered in increments of 5 or 10 basis points at a time, over a 10 to 15 year period, rather than 50 to 100 basis points at a time". A motion was made to approve the minutes of the General Employees' Pension Plan Board of Trustees Regular Meeting December 5, 2016 with changes noted from Vice Chair Chapdelain. Motion carried unanimously (7-0). 6. APPROVAL OF RETIREMENT REQUEST/S): 6.1. Approval Re: Retirement Request of Elaine Bilello Pension Plans Administrator Ramphal stated that Elaine Bilello requested a retirement date of February 1, 2017; that Ms. Bilello is 62 years of age, has 10.49 years of service, and elected the Lifetime Option. A motion was made by Trustee Schneider, seconded by Secretary Nadalini for the Board to approve the requested retirement of Elaine Bilello. Motion carried unanimously (7-0). 6.2 Approval Re: Retirement Request of Richard Humphrey, Jr. Pension Plans Administrator Ramphal stated that Richard Humphrey, Jr. requested a retirement date of January 1, 2017; that Mr. Humphrey, Jr. is 65 years of age, has 13.59 years of service, and elected the One-Time Lump Sum Option. AI motion was made by Trustee Schneider, seconded by Secretary Nadalini for the Board to approve the requested retirement of Richard Humphrey, Jr. Motion carried unanimously (7-0). 6.3 Approval Re: Retirement Request of Robin Klay Pension Plans Administrator Ramphal stated that Robin Klay requested a retirement date of January 1, 2017; that Ms. Klay is 51 years of age, has 30.08 years of service, and elected the 75% to Joint Annuitant Option. A motion was made by Trustee Schneider, seconded by Trustee McVaugh for the Board to approve the requested retirement of Robin Klay. Motion carried unanimously (7-0). 6.4 Approval Re: DROP Retirement Request of Mark Stinson Pension Plans Administrator Ramphal stated that Mark Stinson requested a DROP retirement date of January 1, 2017; that Mr. Stinson is 50 years of age, has 30.03 years of service, and elected the 100% to Joint Annuitant Option. A motion was made by Trustee McVaugh, seconded by Secretary Nadalini for the Board to approve the requested retirement of Mark Stinson. Motion carried unanimously (7-0). 7. INVESTMENT PERFORMANCE REVIEW: 7.1. Presentation and Discussion Re: Graystone Consulting Investment Performance as of December 31, 2016 Charlie Mulfinger, Managing Director, and Scott Owens, Institutional Consultant, Graystone Consulting, came before the Board. Mr. Mulfinger provided the Board with an update on thel Plan's Investment Performance as of December 31, 2016. Mr. Owens briefly discussed the macroeconomic environment, and stated that the expectation is the economy will grow during the first half of the year and corporate earnings will improve. Mr. Mulfinger stated that on Deçember 31, 2016, the market value of the Plan's assets is $141,474.288.93; that the Plan's investment allocation is within the Plan's Investment Policy, briefly discussed each of the Plan's Investment Managers, and concluded his presentation by stating that the Plan's Investment portfolio had a good quarter and the return exceeded the benchmark. In response to a question by Trustee Wagner regarding investment fees, Mr. Mulfinger stated that each of the Plan's holdings will be reviewed and a report on the fees paid to each Investment Manager will be provided to the Board. Book 1 Page 49 01/23/17 10:00 A.M. Book 1 Page 50 01/23/17 10:00 A.M. Chair Keeler noted Board consensus to accept the Investment Performance Report as of December 31, 2016. A motion was made by Vice Chair Chapdelain, seconded by Treasurer Strickland for the Board to accept the Investment Performance Report as of December 31, 2016. Motion carried unanimously (7-0). 8. UNFINISHED BUSINESS: 8.1 Report Re: Status of Proposed Ordinance No. 16-5185, amending the City of Sarasota General Employees' Defined Benefit Pension Plan Attorney Christiansen stated that the Union is not in agreement with making any changes to lump sum language, Susan Blake came before the Board and stated that the Union is not in agreement with the proposed Ordinance change, that the Union-provided actuary has concluded that the specific language concerning lump sum distributions is vague and subject to different interpretations. Pete Strong came before the Board to briefly discuss lump sum distributions. Human Resources Director Stacie Mason, Human Resources Department, came before the Board and stated that she has been made aware of the Union's issues regarding the proposed Ordinance change. A motion was made by Secretary Nadalini, seconded by Treasurer Strickland to direct Attorney Christiansen to amend the proposed change in Ordinance to remove language regarding lump sum distributions. Motion carried unanimously (7-0). 8.2. Presentation and Discussion Re: Operating Rules and Procedures Attorney Scott Christiansen, requested discussion regarding Operating Rules be moved to end of meeting. Chair Keeler noted Board consensus to move discussion to the end of the meeting. 8.3. Presentation and Discussion Re: Revised Summary Plan Description Attorney Scott Christiansen stated changes made to Summary Plan Description last meeting were remove John Lege and add Kelly Strickland, and correction on total number of retirees, and that now the Actuarial Valuation highlights were added. A motion was made by Secretary Nadalini, seconded by Treasurer Strickland.to approve the Summary Plan Description as revised. Motion carried unanimously (7-0). 9. NEW BUSINESS: 9.1 Presentation and Discussion Re: Fiscal Year Ended September 30, 2016 Actuarial Valuation Pete Strong, Actuary, Gabriel Roeder Smith & Company, came before the Board to discuss the Plan's Actuarial Valuation as of September 30, 2016. Mr. Strong stated that the Market Value of Assets is less than the Actuarial Value of Assets, reiterated his position, and stated that, as the active members of the Plan retire, the expected Assumed Rate of Return should drift down to the 6% range relative to the current state of interest rates. Vice Chair Chapdelain requested Mr. Strong remove Indicator (3) on page B3, and Mr. Strong agreed to do so. A motion was made by Vice Chair Chapdelain, seconded by Trustee Schneider, to approve the Fiscal Year Ended September 30, 2016 Actuarial Valuation. Motion carried unanimously (7-0). 9.2 Presentation and Discussion Re: Updated GASB No. 67 Disclosure Information - Fiscal Year Ended September 30, 2016 Pete Strong, Actuary, Gabriel Roeder Smith & Company, came before the Board to briefly discuss the GASB No. 67 Disclosure Report. Secretary Nadalini stated that she wants to carefully review all factors prior to considering lowering the Plan's Assumed Rate of Return; that he is comfortable with the Plan's current Assumed Rate of Return of 7%. AI motion was made by Secretary Nadalini, seconded by Vice Chair Chapdelain to approve the GASB 67 Disclosure. Motion carried unanimously (7-0). 10 ATTORNEY MATTERS: Attorney Christiansen confirmed and stated that at the behest of the Board, presentation and discussion regarding Operating Rules and Procedures will be moved to the General Employees' Pension Plan Board of Trustees Regular Meeting of February 27, 2017. Attorney Christiansen indicated he has a scheduling conflict with the General Employees' Pension Plan Board of Trustees Regular Meeting of February 27 2017 and requested that meeting be moved to February 13, 2017. Chair Keeler noted Board consensus to move General Employees' Pension Plan Board of Trustees Regular Meeting to February 13, 2017. Chair Keeler requested Pension Staff follow-up with Board on availability. Based upon advice of the Investment Consultant and Actuary, a motion was made by Vice Chair Chapdelain, seconded by Treasurer Strickland to maintain a 7% Assumed Rate of Return for the short- term, intermediate-term and long-term. Motion passed unanimously (7-0). Attorney Christiansen briefly discussed some pending legislation regarding voting conflicts to restrict voting from special employment gain to any gain, and stated that he will keep an eye on this legislation Senate bill 306; however there is no companion Bill. 11. OTHER MATTERS: Secretary Nadalini reminded Board members to fill out the 2016 Form 1 Financial Disclosures and maintain a copy of the receipt. Pension Specialist Lois Belle was introduced and provided the Board with a brief overview of her qualifications. 12. ADJOURN. Chair Keeler adjourned the General Employees' Pensions Board of Trustees Regular meeting at 12:16 p.m. CRPT D ge AL BAenpLener yod Chair Barry Keeler Secretary Pamela M. Nadalini Book 1 Page 51 01/23/17 10:00 A.M.