Book 1 Page 20 04/22/16 8:15 A.M. MINUTES OF THE APRIL 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: Vice Chair Baty reviewed a 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: Ernest Cave, retired City of Sarasota Firefighter and President of the Retired Firefighters' Association, Edward Whitehead, retired City of Sarasota Police Officer, and Alan Woodle, retired City of Sarasota Police Officer and Chair of the City's Benefit Focus Group, came before the Board to present the correspondence that they received from City of Sarasota Human Resources (HR) Department regarding their healthcare payment request. Mr. Woodle read into the record an email received from Director Stacie Mason of the HR Department, which stated that she has received the information regarding the healthcare payment request and will include the issue in future discussions. Attorney Dehner stated that under the Ordinance, a change can be implemented to make direct payments to healthcare providers. : Mr Whitehead asked the Board if it would be possible to receive an update on Chapter 185 within the next.60days, and Chair Stiff stated that the information is currently available in the Annual Réport. us 4. APPROVAL OF THE MINUTES: 4.1. Approval Re: Minutes of Regular Police Officers' Pension Board Membership. Meeting of March 25, 2016 A motion was made by Vice Chair Baty, seconded by Trustee Miller, to approve the minutes oft the March 25, 2016, Police Officers' Pension Plan Board of Trustees Membership Meeting. Motion carried unanimously (5-0). 5. APPROVAL OF RETIREMENT REQUEST/S): 5.1. Approval Re: DROP Retirement Request of Todd Tschetter Pension Plans Administrator Ramphal stated that Todd Tschetter requested to enter the DROP effective April 30, 2016; that Mr. Tschetter is 45 years of age, has 25.02 years of service, and elected the 100% to Joint Annuitant Option. A motion was made by Trustee Nixon, seconded by Secretary/Treasurer Nadalini, to approve the Retirement Request of Todd Tschetter. Motion carried unanimously (5-0). 6. INVESTMENT REVIEW: 6.1. Presentation and Discussion Re: SSI Investment Management Michael Opre, Portfolio Manager, SSI Investment Management, came before the Board to provide an update of the SSI Investment Management portfolio, and stated that the portfolio has shown positive returns in the last three years, including earning returns in excess of the benchmark by 1.47% of net fees, to-date for the fiscal year; that the portfolio had a cumulative gain of $2.47 million and a current account value of $2.47 million. Mr. Opre continued and gave a brief overview of the market outlook and the opportunities available in the small and midcap areas. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: independent Auditor's Report for the Fiscal Year Ending September 30, 2015 Alison Wester, CPA Partner, Mauldin & Jenkins, LLC presented before the Board via teleconference, the Independent Auditor's Report for the fiscal year and provided an. overview of the financial statement, and stated that there has been significant changes since last year with incorporating the requirements under Governmental Accounting Standards Board (GASB) No. 67; that she did not identify any significant liabilities or accounting policies that were controversial; that the financial statement disclosures were neutral, consistent and clear with no difficulties encountered. Secretary/Treasurer Nadalini stated that it was a pleasure working with Ms. Wester and her team and expressed appreciation for the thorough Independent Auditor's Report from Mauldin & Jenkins. 8.2. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2016-17 Pension Plans Administrator Ramphal presented the proposed Annual Budget for fiscal year 2016-17, and provided the Board with an overview of the changes in investment reconciliation and other processes since last year and increase in DROP requirements, and stated that the Pension Department requests approval to hire a new Pension Analyst. Secretary/Treasurer Nadalini stated that the position has been approved and it has been determined that the workflow has increased to a point where an additional staff member is needed; that the funds for the new staff member would be split between the three pension plans and the Employee Retirement Account Committee (ERAC). A motion was made by Trustee Miller, seconded by Trustee Nixon, to accept the proposed Annual Budget for fiscal year 2016-17. Motion carried unanimously (5-0). Book 1 Page 21 04/22/16 8:15 A.M. Book Page 22 04/22/16 8:15. A.M. 8.3. Presentation and Discussion Re: Request for Proposals for Custodial Services (RFP #16-05BK) - Police Officers' Pension Fund Senior Procurement Specialist Francis "Barney" Kavanagh, Purchasing Division, Financial Administration Department, came before the Board to discuss the five Request for Proposals (RFP) received for Custodial Services (RFP #16-05BK) - Police Officers' Pension Fund. SecretaryTreasurer Nadalini stated that at the last Board meeting she expressed concerns with changing the Custodian from Salem Trust, and Attorney Dehner stated that pursuant to the purchasing rules of the City of Sarasota, Florida, the Board has the opportunity, through unanimous vote, to allow Salem Trust to remain as the Custodian. A motion was made by Secretary/Treasurer Nadalini, seconded by Vice Chair Baty, to select Salem Trust Company to remain as the Custodial service provider for the Police Officers' Pension Fund. Motion carried (4-1), with Trustee Miller voting no. Chair Stiff stated that since there was not a unanimous vote to have Salem Trust remain as the Custodian for the Board, discussion has to continue. Discussion ensued regarding selecting a Custodian for the Police Officers' Pension Fund. In response to a question from Secretary/Treasurer Nadalini regarding the Board's authority to choose a Custodian, Attorney Dehner stated that the Board has the ultimate authority to choose a Custodian and is not bound by the City of Sarasota, Florida. The Board recessed at 9:20 a.m. and reconvened at 9:40 a.m. Continued Presentation and Discussion Re: Request for Proposals for Custodial Services (RFP #16- 05BK) - Police Officers' Pension Fund Mr. Kavanagh distributed scoring sheets to the Board and once all the scoring sheets were returned and tallied it was determined that Salem Trust and Fifth Third Bank tied for first place with the highest scores. Chair Stiff noted Board consensus for Members of the Board review the material presented from both Salem Trust Company and Fifth Third Bank. Mr. Kavanagh stated that the Board will have the opportunity to meet with both companies in order to make a final vote at that time for selecting a Custodian for the Police Officers' Pension Fund. 9. ATTORNEY MATTERS: 9.1. Discussion Re: Operating Rules and Procedures - Rule 2.1, Attendance at Board Meetings Attorney Dehner presented to the Board the Operating Rules and Procedures - Rule 2.1, Attendance at Board Meetings and stated that the rules are created by the Board and can be amended by the Board Members if they sO choose; that the Operating Rules and Procedures provides that special meetings of the Board can be called by the Chair, and a Regular Police Officers' Pension Meeting is to be held at least once each month; that if a member misses two consecutive Regular Police Officers' Pension Meetings without an acceptable excuse for the Board will be deemed as a resignation. Discussion ensued regarding Board Members attendance at Police Officers' Pension Meetings. 10. OTHER MATTERS: Discussion ensued regarding a question posed by Chair Stiff about trading practices as related to SSI Investments, and Attorney Dehner stated that the Actuarial Valuation Report must be filed electronically with the Division of Retirement within 60-days and also posted on the City of Sarasota, Florida website. Secrelary/Treasurer Nadalini stated that the Actuarial Valuation Report will be filed and posted on the City's website. 11. ADJOURN. Chair Stiff adjourned the Police Officers' Pensions Board of Trustees Regular meeting at 10:15 a.m. on.dld - Mande Chair Kevin Stiff Secretary/Treasurer Pamela M. Nadalini Book 1 Page 23 04/22/16 8:15 A.M.