MINUTES OF THE REGULAR MEETING OF THE FIREFIGHTERS PENSION BOARD MAY 23, 2012 Present: Chair T. J. Broom, Vice-Chair Mike Hartley, Secretary/reasurer Pamela Nadalini, Trustees Sheila Roberson and Scott Snow Absent: None Others Present: Attorney Robert Sugarman, Attorney Pedro Herrera, Ms. Mary McManus and Ms. Kimberly Bernard of Oak Ridge Investments, Mr. Rey Reza and Mr. Alan Christensen of Fayez Sarofim, Pension Plans Administrator Benita Saldutti, and Staff Member Janice Docking CALL THE MEETING TO ORDER Chair Broom called the meeting to order at 9:02 a.m. APPROVAL OF THE MINUTES APRIL 25, 2012 Trustee Roberson corrected Page 2, paragraph 4 to read as follows: "Trustee Roberson asked if there has been any discussion with either the City or County Commissions regarding alternative funding. Mr. Lyons stated that the City has few funding options and the only way would be to raise the millage rate." - On a motion of Vice Chair Hartley and a second of Trustee Roberson, it was moved to approve minutes of April 25, 2012 as corrected. Motion carried unanimously. INVESTMENT REVIEW = OAK RIDGE INVESTMENTS Ms. McManus reported that Oak Ridge has replaced an analyst that previously left the company with new analyst with 25 years of experience. Ms. Bernard then presented an overview of the company and the performance results of the portfolio, stating that the net return for the quarter ending March 31, 2012 is 6.49% VS. the Russell 2000 Growth of 12.44%. INVESTMENT REVIEW - FAYEZ SAROFIM Mr. Rey Reza reviewed the performance, stating the portfolio returned 10.9% for the quarter ending March 31, 2012 compared to the Russell 1000 Growth Index which returned 14.7%. He continued that for the last 12 months, the portfolio returned 14.8%. compared to the Russell 1000 Growth Index of 11%. Mr. Christensen reviewed the ndividual holdings in the portfolio. Vice Chair Hartley commented that Apple and Philip Morris hold large positions in the portfolio. Mr. Christensen stated that he will confer with consultant Charlie Mulfinger to ensure the portfolio is within the investment guidelines. May 23, 2012 1 Mr. Reza explained that Fayez Sarofim has partnered with SEI global services to provide administrative support. He stated that Salem Trust will need to provide SEI with access to the investment reports. REPORT RE: SETTLEMENT OF MERRILL LYNCH CLASS ACTION LAWSUIT Attorney Sugarman advised the Board that his firm was part of the legal team that brought suit against Merrill Lynch and will receive compensation as determined by the Court. He stated that the Board may hire outside counsel for an independent analysis of the settlement. Attorney Sugarman explained the options available to the Pension Board regarding the Merrill Lynch class action settlement. He stated that the Board can accept the terms of the settlement and receive approximately $150,000, they can opt out of the class and file their own suit, or they can opt out of the class action settlement and receive nothing. On motion of Vice Chair Hartley and second of Trustee Snow it was moved to file the claim as presented. In discussion, Attorney Sugarman stated that filing for the claim will forever bar the Pension Fund from seeking additional damages against Merrill Lynch. Motion passed unanimously. ATTORNEY'S REPORT Attorney Herrera reminded the Board to file their Financial Disclosure forms by July 1. He gave a status report on the Pharmacia case and reviewed upcoming educational opportunities. Trustee Roberson reported that Sarasota County is paying her expenses to attend the FPPTA conference. Vice Chair Hartley stated that he is paying his own expenses to attend for a day. OTHER MATTERS Pension Plans Administrator Ms. Saldutti informed the Board that a new Pension Plans Administrator will begin on June 18, 2012. Next Meeting The next regular meeting will be June 20, 2012, at 9:00 a.m. in the City Commission Chambers. ADJOURN Theeeting was adjourned at 10:16 a.m. 3B pa M. Nodeli Chair Broom Secretary/Treasurer: Nadalini May 23, 2012 2