PALM BAY POLICE AND FIREFIGHTERS' PENSION PLAN BOARD OF TRUSTEES Quarterly Meeting 17 12 Held on the 3m of November 2017 at Robert J Conlan Professional Center 1501 R J Conlan Blvd. NE Suite 240 Palm Bay Florida This meeting was properly noticed pursuant to law, the minutes are on file in the Office of the City Clerk, City Hall Palm Bay Florida Timothy W Lancaster, Chairperson, called the meeting to order at the hour of 9: 00 a.m ROLL CALL PRESENT EXCUSED Timothy W Lancaster Chairman Police Elected James W Brock Secretary Trustee Jason Dorey, Vice Chairman, Fire Elected City Councilmember Appointee Richard B Adams, Trustee, Board Appointee Guillermo William Capote, Sr, Trustee, City Councilmember Appointee Also in attendance was Ms Kathy Adams, Board Administrator and Ms Katie Taglia Polak, Office Manager; Ms Joanne Tomeo, HR Benefits Analyst, City of Palm Bay, Mr Jeremy A Lieberman, Managing Partner and Jennifer Pafiti Partner Head of Investor Relations Pomerantz LLP arrived at 9:05 a. m. Mr Larry Cole, Senior Consultant, and Ms. Karla Engard Operations Manager Burgess Chambers & Associates, and Mr Blake Myton, First Vice President, Institutional Advisory Services, SunTrust Private Wealth Management, arrived at 10: 00 a. m Motion by Adams, seconded by Mr Dorey to excuse Mr Brock and Mr Capote Motion carried with members voting as follows Mr Dorey, Yea, Adams, Yea, and Mr Lancaster, Yea AGENDA REVISIONS Motion by Mr Adams seconded by Mr Dorey to remove from Consent, Adoption of Minutes Quarterly Minutes 17 09, Regular Minutes 17 10; and Regular Minutes 17 11as they were not ready for adoption remove from Old Business No 6 c Application of Disability- Police Officer Robert Rama as it is already listed under New Business, add under New Business, * 1 Consideration of Warrants for Payment. n SunTrust Bank-$73,594. 62- Investment Management Fees for Quarter End 7/ 1/ 2017-9/ 30/2017 Invoice No. 279718 o Wells Capital Management-$ 11188. 64- Management Fees for Quarter End 07/ 01/ 2017 09/30/ 2017, Invoice No 11392804 ( Police Fund Only), p Wells Capital Management-$6, 59713- Management Fees for Quarter End 07/ 01/ 2017 09/30/ 2017, Invoice No 11392805 ( Fire Fund Only) 9 Federal State and Local Death Benefits * 10 Termination Refund/ Rollover/ or Vested Termination If Eligible- Firefighter Leslie Hoog Motion carried with members voting as follows. Mr Dorey, Yea, Mr Adams, Yea, and Mr Lancaster, Yea
J T PBP& F Pension Fund CONSENT AGENDA Motion by Mr Dorey seconded by Mr Adams to approve the Consent Agenda as revised Motion carried with members voting as follows Mr Dorey Yea Mr Adams Yea and Mr Lancaster Yea. Mr Capote arrived at 9:06 a. m ADOPTION OF MINUTES Quarterly Minutes 17-09 Regular Minutes 17 10 Regular Minutes 17 11 These items were tabled as they were not ready for adoption POMERANTZ LLP PRESENTATION AT 9: 30 A.M. 1 Securities Litigation Review Mr Jeremy A. Lieberman, Managing Partner, Pomerantz, and Ms Jennifer Pafiti, Partner Head of Investor Relations- Mr Lieberman said Pomerantz has been doing litigation for over a decade He introduced Ms Pafiti. Pomerantz has been around for eighty (80) years They want to become a leader in the action of cases and have been successful The largest case is money laundering in Brazil with the Petrobras which is an oil company Mr Lieberman discussed the various components of the case They are also lead counsel in the Yahoo Data Breach case Ms Pafiti reviewed the new report format They include international cases She said to make sure the claims have been filed by seeing if SunTrust, Regions, and SunTrust can tell how much they have recovered Pomerantz offers a file claims process charged at fee of eight percent ( 8%) Mr Lieberman and Ms Pafiti left the meeting at 9:39 a. m and did not return Discussion moved to Old Business SUNTRUST QUARTERLY REPORT AT 10: 30 A. M. 1 SunTrust Institutional Investment Solutions- Mr Blake Myton, First Vice President, Investment Manager a Quarterly Report-Mr Myton said it was a good quarter The environment is where growth is picking up The forecast is slow and steady growth in the three percent ( 3%) range Fixed income is very conservative We have good solid numbers for the year International is starting to contribute, even though SunTrust doesn' t handle that in the portfolio Returns for the quarter were 178%, fiscal year to- date for one year is 7.44% The next Fed chairman is to be announced Underemployment is still a concern The market value of the SunTrust portfolio is $ 74,446, 776. 00 The asset allocation is. Equity, $ 33, 370,083; Fixed Income, $ 39,834, 161, and Short Term, 1, 242, 532 2
BURGESS CHAMBERS QUARTERLY REPORT AT 1100 A.M. 1 Burgess Chambers & Associates Mr Larry Cole, Senior Consultant, and Ms Karla Engard, Operations Manager a Quarterly Report-Mr Cole said there are no compliance issues The market value net of investment management fees" is $ 184, 660, 259.00 for the total portfolio, a gain of$ 5, 773,912. The one year return is $ 20, 153,629.00 It has been a good equity market run Unemployment is at 41%, people are underemployed Mr Cole is not recommending any rebalancing at this time The Managed Limited Partnerships ( MLP' s) had a slight down turn for the quarter Mr. Cole said to stay where we are! He reviewed the ranking The one year return is 12. 2%. He said diversification helps the risk He reviewed the fiscal year return going back several years b Annual Rate of Return Letter Motion by Mr Capote, seconded by Mr Adams to adopt the Annual Rate of Return Letter as required by Statute and for a copy to be forwarded to the State. Motion carried with members voting as follows Mr Dorey, Yea, Mr Adams, Yea, Mr Capote, Yea, and Mr Lancaster, Yea c The Cowen Group-Motion by Mr Capote seconded by Mr Adams to approve the consignment of agreement and of account from ConvergEx to The Cowen Group for recapture funding Motion carried with members voting as follows Mr Dorey, Yea, Mr Adams, Yea, Mr Capote, Yea, and Mr Lancaster, Yea d Trade Adjustment Error-Wells Fargo-Ms Adams said she was notified by Wells Fargo of a trading error at the beginning of August resulting in a credit on the September 30th invoice of 50.00 and$ 30. 00 OLD BUSINESS 1 Actuarial Services & Projects Foster& Foster, Inc a Police Share Plan-Mr Donlan will be working on the statements and reports b Firefighter Share Plan The draft Ordinance has been finalized by Mr Levinson, Board Attorney Motion by Mr Dorey seconded by Mr Adams to send the draft to the City Attorney for review and obtain an Impact Statement when ready Motion carried with members voting as follows Mr Dorey, Yea, Mr Adams, Yea, Mr Capote Yea and Mr Lancaster Yea c Annual Required City Contributions- The City remitted $ 53126 14 owed to the Fire Fund, however, Ms Janes, Board Accountant, has some questions A conference call is being scheduled to discuss it with her and Mr Donlan d On Line Reporting to the Division Motion by Mr. Dorey, seconded by Mr Adams to approve the Foster & Foster on line reporting fee to comply with the Division of Retirement mandate Motion carried with members voting as follows Mr Dorey Yea Mr Adams Yea Mr Capote Yea, and Mr Lancaster Yea Mr Cole Ms Engard and Mr Myton arrived at 10: 00 a. m Discussion moved to the quarterly presentations above. 3
2 DROP Returns for Quarter-Ending September 30, 2017 Gross returns for September 30 2017 was 3. 24% and 3.09% net of fees This item was considered under Consent Agenda and approved as presented 3 Review of the National Conference of Public Employee Retirement Systems ( NCPERS)- Mr Dorey said overall it was good but it pertained to larger funds attendance A lot of litigation companies were In 4 Review of the Florida Public Pension Trustees' School- Mr Lancaster said there were good conversations on Social Security and how it will impact the markets You need to have the app now to sign into classes. 5 Cowen and Company, LLC- Recapture Services- Consent to Transfer Account-This item was discussed under Burgess Chambers above 6 Follow-up Items from Ms Taglia Polak a Follow-up Process on Disability Applicant Michael Sharrow-Additional information is needed pending the member calling CORA They have payment to conduct the examination b Application for Disability-Firefighter Cheryl Parente-The member had another surgery pending receipt of the Medical Maximum Improvement and then we can move forward c Application for Disability Police Officer Robert Rama This item is listed under New Business, No 6 below for discussion d Open Enrollment for City Health Insurance- Enrollment through the City is scheduled for November 1SL1Th e Audit FYE September 30, 2016 We are working on audit items f Handyman Services-This item is pending as none can be located with workers compensation coverage and they need liability insurance g Upcoming Events- Educational Opportunities There was a short discussion on up coming schools during the beginning of 2018 NEW BUSINESS 1 Consideration of Warrants for Payment a Westwood Trust-$7, 089.42- Investment Management Fees for Quarter End 913012017 Invoice No 5000286 ( Fire Fund Only) This item was approved under Consent Agenda as presented b Westwood Trust-$7, 089. 42- Investment Management Fees for Quarter End 913012017, Invoice No presented 5000285 ( Police Fund Only)-This item was approved under Consent Agenda as c SSI Investment Management-$10, 220. 00- Management Fee 07/ 19/30/ 2017, Inv No 002017-0226 ( Police Fund Only) This item was approved under Consent Agenda as presented d SSI Investment Management-$10, 054.00- Management Fee 07119/ 30/ 2017, Inv No 002017. 0227 ( Fire Fund Only) This item was approved under Consent Agenda as presented e Polen Capital Management-$ 14, 229. 98- Management Fees for Quarter, 7119/ 30/ 2017, Police Fund Only)-This item was approved under Consent Agenda as presented 4
f Polen Capital Management-$7, 65519- Management Fees for Quarter, 7/ 19/30/ 2017, Fire Fund Only)-This item was approved under Consent Agenda as presented g Eagle Asset Investment Management-$3,201 33- Management Fees for Billing Period 711. 913012017, Invoice No 041006011521 ( Police Fund Only) This item was approved under Consent Agenda as presented h Eagle Asset Investment Management-$ 1, 322.28- Management Fees for Billing Period 7/ 19/30/ 2017, Invoice No 943769642844 ( Fire Fund Only) This item was approved under Consent Agenda as presented i JP Morgan Strategic Property Fund-$ 25, 117. 41- RE Strat Prop Fund Fee for Period Ending 0913012017, Invoice No 20170930. 57655-A ( Fire Fund Only) This item was approved under Consent Agenda as presented j JP Morgan Strategic Property Fund-$ 25, 117 41 RE Strat Prop Fund Fee for Period Ending 913012017, Invoice No 20170930 1788-A ( Police Fund Only) This item was approved under Consent Agenda as presented k Advent Capital Management-$ 12, 310. 91 Management Fees for Quarter End 9130/ 2017 Police Fund Only) This item was approved under Consent Agenda as presented 1 Advent Capital Management-$ 12, 107 88- Management Fees for Quarter End 913012017 Fire Fund Only) This item was approved under Consent Agenda as presented m Salem Trust-$ 14,354. 37-Account Management Fee for 711. 9130-2017, Fee A/ C# M05207 This item was approved under Consent Agenda as presented n SunTrust Bank-$73, 594. 62- Investment Management Fees for Quarter End 71112017 913012017, Invoice No 279718 This item was approved under Consent Agenda as presented o Wells Capital Management-$11, 188. 64- Management Fees for Quarter End 0710112017 0913012017, Invoice No 11392804 ( Police Fund Only)-This item was approved under Consent Agenda as presented. p Wells Capital Management-$ 6, 59713- Management Fees for Quarter End 0710112017 0913012017, Invoice No 11392805 ( Fire Fund Only) This item was approved under Consent Agenda as presented 2 New Plan Member Applications, Member Beneficiary Changes, Pre- Retirement Death Benefit Option Selection Forms, Member Retirement Beneficiary Forms, and DROP Beneficiary Designations-New plan member application/ beneficiary forms were accepted and approved for Firefighters Wyatt Dillon Diego Escobar Michael Hughes Theresa Matchett-Acker Alex Rodriguez; and Jennifer Walk; member beneficiary forms were accepted and approved for Police Officers Boyd E Williams, II, Caroline Jodoin, Michael T Smith and Firefighters Benjamin Nicholas Lamb and Alexia Muriel member beneficiary forms for retirement was accepted and approved for Police Officer Jesse Keith Eakins and Deferred Retirement Option Plan ( DROP) beneficiary designation for Police Officer Jesse Keith Eakins and Firefighter Richard Strickland These items were considered under Consent Agenda and approved as presented 5
3 Board Business Motion by Mr Capote, seconded by Mr Adams to approve the upgrade with Brighthouse/ Spectrum to increase the internet speed at a monthly savings of $ 80. 00 per month Motion carried with members voting as follows Mr Dorey, Yea, Mr Adams, Yea, Mr Capote, Yea, and Mr Lancaster Yea Ms Adams said she met with the TV company recommended by Computer Experts and he felt we could purchase a 50-55" TV to meet our needs He is researching video conferencing options and sent me something to review Computer Experts suggested bringing the Surface Pro's to the Board meetings to have them update while the trustees are here Richard said his would only upgrade in the office but no one else seems to have that issue Mr Kaufman met with Ms. Adams and Mr Lancaster about the leaks in the offices The leaks have been fixed, but he is looking for a roofer Mr Lancaster told him the window frames needed to be replaced because of the rust. We also discussed the mold concerns Mr Kaufman said he was in the area to meet with another tenant that wants to expand office usage He discussed the Board looking at purchasing the building and discussed some options for a partnership. After discussion the Board said they were not interested in the offer 4 Application for Disability- Police Officer Robert Rama Motion by Mr Capote seconded by Mr Adams to move forward in processing requests for medical and employment records and expenses for same Motion carried with members voting as follows Mr Dorey, Yea, Mr Adams, Yea; Mr Capote, Yea, and Mr Lancaster, Yea 5 Request to Close DROP Account-Firefighter James Hamor-This item was approved under Consent Agenda as presented 6 Final Annual DROP Payment in December, 2017 with Final Interest Payment in February, 2018 and Close DROP Account- Firefighter Brian Green Ms Taglia- Polak said Firefighter Green will be receiving his final DROP annual payment in December however it will not include interest owed through the end of December She will not know what that amount is until February Motion by Mr Dorey, seconded by Mr Capote to authorize the final annual payment to Firefighter Retiree Green in the amount of 23,27710 then to pay the final interest payment in February 2018 which will close his DROP account. Motion carried with members voting as follows Mr Dorey, Yea Mr Adams, Yea, Mr Capote, Yea, and Mr Lancaster, Yea 7 Police & Fire Board of Trustees Elected Representative Nominations & Election Process Ms. Adams said the election of the fire and police representative is due She will be preparing a notice to members that she will post on the website on December 15r Mr Lancaster and Mr Dorey will be given copies to post at the departments and stations The deadline for applications and nominations will be January 19, 2018 The certification of nominees will be held at the February meeting with ballots if required mail thereafter The ballots will be counted at the March meeting and elected representatives notified 8 Arthur J Gallagher Risk Management Services Application for Insurance Renewal- Motion by Mr Capote seconded by Mr Dorey to authorize the remittance of the premiums due for the Board insurance renewals upon receipt Motion carried with members voting as follows Mr Dorey, Yea, Mr Adams, Yea, Mr Capote, Yea; and Mr Lancaster, Yea 9 Federal, State, and Local Death Benefits- Memo from Mr Klausner' s office- Ms Adams discussed the memo from Mr Klausner She will add it to the website and see if any Ordinance amendment is needed 6
November 3 2017 10 Termination Refund/ Rollover/or Vested Termination, If Eligible- Firefighter Leslie Hoog This item was approved under Consent Agenda as presented INPUT FROM ACTIVE AND RETIRED PLAN MEMBERS There was no input from any active or retired plan members at this time INPUT FROM THE PUBLIC There was no input from the public at this time ADJOURNMENT There being no further business the meeting adjourned at 1144 a. m ATTEST Timothy W Lancaster Chairperson' isondorey, V" airman