MINUTES OF THE CITY OF SARASOTA GENERAL EMPLOYEES' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF JULY 17, 2017 Present: Chair Barry Keeler, Vice Chair Ryan Chapdelain, Secretary Pamela Nadalini (arrived at 8:40 a.m.), Treasurer Kelly Strickland, Trustees Gretchen Schneider and Kari McVaugh Others: Attorney Scott Christiansen, Senior Pension Analyst Anthony Ferrer, Senior Pension Accountant Cynthia Akersloot and Pension Specialist Lois Belle Absent: Trustee Bonnie Wagner 1. CALL MEETING TO ORDER: Chair Keeler called the meeting to order at 8:30 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: Chair Keeler requested Senior Pension Analyst Ferrer call roll in Secretary Nadalini's absence; Senior Pension Analyst Ferrer called the roll and a quorum of the Trustees in attendance was noted. 4. PUBLIC INPUT: No one signed up to speak. 5. APPROVAL OF THE MINUTES: 5.1. Approval Re: Minutes of General Employees' Pension Plan Board of Trustees Regular Meeting of June 19, 2017 A motion was made by Vice Chair Chapdelain and seconded by Trustee Schneider to approve the minutes of the General Employees' Pension Plan Board of Trustees Regular Meeting of June 19, 2017. Motion carried unanimously (5-0). 6. APPROVAL OF RETIREMENT REQUEST(S): None 7. INVESTMENT PERFORMANCE REVIEW: 7.1. Presentation and Discussion Re: Investco Investment Performance Presenter(s): Suzanna Sanchez, Senior Associate Director, and Marvin Flewellen, Head of Client Management- - Fixed Income, Investco Ms. Suzanna Sanchez, Senior Associate Director, and Mr. Marvin Flewellen, Head of Client Management - Fixed Income, Investco came before the Board. Book 1 Page 73 7/17/17 8:30 A.M. Boo 'age 74 7/17/17 8:30 A.M. Ms. Sanchez ntroduced herself to the Board and stated that Mr. Flewellen would provide an overview of the market economy and how the Fund has performed through June 30, 2017. Mr. Flewellen provided an overview of the portfolio for the first half of 2017 and stated the Fund's investment guidelines. Secretary Nadalini entered Chambers at 8:40 a.m. Mr. Flewellen discussed the current market environment and Investco's investment strategy. There were no questions from the Board and Investco thanked the Board for their time. 7.2. Presentation and Discussion Re: Graystone Consulting Investment Performance as of June 30, 2017 Presenter(s): Charlie Mulfinger, Managing Director, and Scott Owens, Institutional Consultant, Graystone Consulting Mr. Charlie Mulfinger, Managing Director, and Mr. Scott Owens, Institutional Consultant, Graystone Consulting, came before the Board. Mr. Mulfinger provided the Board with an overview of the topics to be presented and stated that Scott would discuss the economy and the market; that he would speak about managers; that the Fund made over $3 million for Q2, 2017 and beat benchmark. Mr. Owens briefly discussed the economic environment, and stated that the markets are synchronized right now; that the current environment is pro-growth; that positive earnings revisions and growth outperforms value again this quarter; that inflation for the quarter is 1.9%. Mr. Mulfinger stated that as of June 30, 2017, the market value of the Plan's assets is $148,153,951 with a total gain, net of fees, of $3,313,359 for the quarter; that the Plan's investment allocation is within the Plan's ranges on asset class and that there is no need to rebalance, he briefly discussed the performance of each of the Plan's Investment Managers. Mr. Mulfinger stated that he did speak with Michele Cameron/Allianz about possibility of combining the NFJ and Allianz's fee structure and that Ms. Cameron would be prepared to present a fee reduction proposal at the General Employees' Pension Plan Board of Trustee meeting on August 21, 2017. There were no questions from the Board and Chair Keeler thanked Mr. Mulfinger and Mr. Owens for their presentation. 8. UNFINISHED BUSINESS 8.1. Continued Discussion Re: Revised Operating Rules and Procedures Presenter(s): Attorney Scott Christiansen, Christiansen & Dehner Attorney Christiansen stated that he would defer to Secretary Nadalini to present memorandum from the City Attorney's office; Secretary Nadalini stated that the memorandum clearly indicates the changes proposed in the Revised Operating Rules and Procedures document have the potential to conflict with the Office of the City Auditor and Clerk's internal processes. Discussion ensued around the best way to proceed. There was consensus noted by the Board to have Attorney Christiansen speak directly with the City's Attorneys to resolve any potential conflicts within the Revised Operating Rules and Procedures document. 9. NEW BUSINESS: None 10. ATTORNEY MATTERS: Attorney Christiansen reminded Board members that Financial Disclosure Statements were due July 1, 2017; that Form 1 must be filed with the Supervisor of Elections. 11. OTHER MATTERS: Chair Keeler noted Board consensus to cancel the General Employees' Pension Plan Board of Trustee regular meeting of August 21, 2017 in lieu of the Annual State of the Pension Commission Workshop scheduled on Thursday, August 31, 2017 from 5:00 pm to 8:00 pm. Chair Keeler noted Board consensus to request a review of the current Ordinance; that based on the Plan's closed status and how the Ordinance notes employment divisions there will be future issues with viable eligible Board candidates. Secretary Nadalini stated that she will set up a meeting with the Plan Attorney and the City Attorney to identify potential solutions to bring to the City Commission to update the Ordinance. 12. ADJOURN. Chair Keeler adjourned the General Employees' Pension Plan Board of Trustees Regular Meeting at 10:06 a.m. DHBR) KEELPR C.P.PT. mo MM Chair Barry Keeler Secretary Pamela Nadalini Book 1 Page 75 6/19/17 8:30 A.M.