Members Present Also Present: Ronald A. Glass, Chair ... · Douglas Zabin, Secretary Katie Zuccarini, Employee Benefits Mario A. Garcia, Trustee Shelly Burlon, Pension Coordinator

MINUTES FROM MEETING

OF OCTOBER 17, 2013

R. Glass called the meeting to order at 9:00 a.m. in the 2nd floor, conference room R, in City Hall.

Members Present Also Present: Ronald A. Glass, Chair Christopher P. McCullion, Executive Director

Shannon Raybon, Vice Chair James Loper, Board Attorney (via phone)

Kevin Edmonds, Trustee Amanda Green, Department Advocate

Douglas C. Zabin, Secretary Shelly Burlon, Pension Coordinator

Mario A. Garcia, Trustee Katie Zuccarini, Employee Benefits

David Harris, District Chief, Health & Safety

1. PUBLIC COMMENTS-None

2. APPROVAL OF MINUTES FROM AUGUST 15, 2013

A MOTION TO APPROVE THE MINUTES FROM APRIL 15, 2013 was made by

K. Edmonds and seconded by S. Raybon; MOTION CARRIED UNANIMOUSLY.

3. CONSENT AGENDA

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made

by D. Zabin and seconded by S. Raybon; MOTION CARRIED UNANIMOUSLY.

SEPTEMBER 2013 RETIREMENTS

Michael Droege

Jerry Keith

Raymond Dixon

4. PENDING/OLD BUSINESS

a. STATUS OF DISABILITY APPLICANTS-None

b. UPDATE ON GARY GAMMAGE DEATH BENEFITS

J. Loper gave an update. K. Zuccarini advised that the lump sum payments have been

made to the beneficiaries.

c. ADDITIONAL EMPLOYEE CONTRIBUTION

TO COVER STATE REVENUE SHORTFALL

C. McCullion gave an update on the shortfall for 2013.

5. NEW BUSINESS

a. INVESTMENT CONSULTANT RFP UPDATE

C. McCullion gave an update on the RFP process that occurred. A MOTION TO

RETAIN NEPC AS THE INVESTMENT CONSULTANT FOR A THREE YEAR

PERIOD WITH TWO ONE YEAR EXTENSIONS, was made by S. Raybon and

seconded by K. Edmonds; MOTION CARRIED UNANIMOUSLY.

b. MASTER CUSTODIAN RFP UPDATE.

C. McCullion updated the Board on the RFP Advisory Committee’s meetings. A

MOTION TO RETAIN BNY MELLON AS THE MASTER CUSTODIAN FOR A

THREE YEAR PERIOD WITH TWO ONE YEAR EXTENSIONS, was made by K.

Edmonds and seconded by D. Zabin; MOTION CARRIED UNANIMOUSLY.

c. FLORIDA STATUTES 286.0114

J. Loper reviewed this Senate bill that went into effect October 1, 2013. A policy was

prepared and reviewed.

A MOTION TO APPROVE POLICY #018 THAT INCORPORATES FLORIDA

STATUTES 286.0114 EFFECTIVE IMMEDIATELY, was made by K. Edmonds and

seconded by S. Raybon; MOTION CARRIED UNANIMOUSLY.

There being no further business the meeting adjourned at 9:40 a.m.

Respectfully submitted,

Rochelle (Shelly) Burlon

Rochelle (Shelly) Burlon

Pension Coordinator

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MINUTES FROM MEETING OF

FEBRUARY 25, 2014

R. Glass called the meeting to order at 2:03 p.m. in City Hall, 2nd floor conference room R.

Members Present Also Present:

Ronald A. Glass, Chair Christopher P. McCullion, Executive Director

Shannon Raybon, Vice Chair James Loper, Board Attorney

Kevin Edmonds, Trustee Amanda Green, Department Advocate

Douglas Zabin, Secretary Katie Zuccarini, Employee Benefits

Mario A. Garcia, Trustee Shelly Burlon, Pension Coordinator

Matthew Negedly, District Chief

Michele Keane, Sr. Admin Assistant

1) PUBLIC COMMENT-None

2) DISABILITY HEARING FOR TAMRA HULL

James Loper, Board Attorney reviewed the procedures. Mike Clelland represented the applicant and Amanda Green represented the Department. T. Hull was sworn in by S. Burlon. Chairman Glass advised that the disability packet, IME, Department Review and additional evidence from both attorneys submitted today were to be entered into evidence.

M. Clelland and A. Green waived opening statements. The applicant didn’t testify. Questions were asked by the trustees and M. Clelland responded. Vice Chair Raybon and J. Loper requested the physician’s report from Dr. Nocero which T. Hall had in her car. The Board tabled the hearing until she returned with copies.

3) APPROVAL OF MINUTES

A MOTION TO APPROVE THE MINUTES OF OCTOBER 17, 2013 was made by K. Edmonds and seconded by S. Raybon; MOTION CARRIED UNANIMOUSLY.

4) CONSENT AGENDA

The following items will be acted on by the Orlando Firefighters’ Pension Board in one motion; if separate consideration of an item is requested that item may be removed from this Consent Agenda. Approve & Ratify: Note the following retirement(s)/medical disability(s) calculation(s) prepared by Employee Benefits and reviewed by Accounting & Control (pension calculation will change upon receipt of COLA benefits) authorize payment of appropriate benefit (s):

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October 2013 Retirement

Michelle Roger

February 2014 Retirements

Kevin Mohr and Kevin Riley

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by S. Raybon and seconded By M. Garcia; MOTION CARRIED UNANIMOUSLY.

5) PENDING/OLD BUSINESS

a. STATUS OF DISABILITY APPLICANTS

None

b. GARY GAMMAGE DEATH

C. McCullion gave an update on the documents we have received for the guardianship of his son.

c. RETIREMENT

C. McCullion advised the trustees that Shelly Burlon, Pension Coordinator is retiring on April 11,

2014 after almost twenty-four years of service to the City of Orlando. Discussion ensued.

6) NEW BUSINESS

C. McCullion advised the board of trustees on the status of the 2013 Actuarial Valuation. Randall Stanley

will present the report at the April 17, meeting.

2) DISABILITY HEARING FOR TAMRA HULL (CONTINUED)

T. Hull gave copies of Dr. Nocero’s physicians report to all trustees. Chairman Glass had it submitted into evidence.

Both attorneys waived closing statements. Chairman Glass advised that the Board would now go into the

determination phase.

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A MOTION THAT THIS IS A PERMANENT AND TOTAL DISABILITY was made by M. Garcia and seconded by K. Edmonds; MOTION CARRIED UNANIMOUSLY. A MOTION THAT THIS IS A LINE OF DUTY DISABILITY UNDER FLORIDA STATE STATUTE CHAPTER 112.18 PRESUMPTION was made by R. Glass and seconded by D. Zabin; S. Raybon opposed; MOTION CARRIED. A MOTION THAT THERE IS NO LIMITED DUTY PERMANENT POSITION AVAILABLE IN THE FIRE DEPARTMENT WITHOUT A REDUCTION IN PAY OR BENEFITS was made by R. Glass and seconded by K. Edmonds; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT TAMRA HULL DOES HAVE TWENTY YEARS OF SERVICE AND IS ENTITLED TO COST OF LIVING PAYMENTS was made by R. Glass and seconded by S. Raybon; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT THE LINE OF DUTY DISABILITY PENSION WILL BE EFFECTIVE MARCH 1, 2014 was made by K. Edmonds and seconded by M. Garcia; MOTION CARRIED UNANIMOUSLY. There being no further business the meeting adjourned at 2:40 p.m. Respectfully submitted,

Shelly Burlon

Rochelle (Shelly) L. Burlon Pension Coordinator

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APRIL 17, 2014

Chairman Glass called the meeting to order at 9:01 AM in conference room R, 2nd floor of City Hall.



Shannon Raybon, Vice Chair James Loper, Board Attorney (via telephone)

Kevin Edmonds, Trustee Katrina Laudeman, Deputy Executive Director

Douglas Zabin, Secretary Katie Zuccarini, Employee Benefits

Mario A. Garcia, Trustee (entered at 9:02 AM) Randall Stanley, Actuary, Nyhart

David Harris, Actuary, Nyhart

Michele Keane, Sr. Administrative Assistant

1) PUBLIC COMMENT - None

2) APPROVAL OF MINUTES

A MOTION TO APPROVE THE MINUTES OF FEBRUARY 20, 2013 was made by Chairman Glass and seconded by Mr. Raybon; MOTION CARRIED UNANIMOUSLY. 3) 2013 ACTUARIAL VALUATION Mr. Stanley and Mr. Harris, from Nyhart, reviewed the Actuarial valuation as of October 1, 2013. The Plan’s funded ratio is 83.6% vs. 82.3% last year. Actuarial value of assets is $306,624,964 compared to a Market value of $300,270,613. The Plan had a market value return of 11.0%. Contributions last year totaled for City & State: $14,962,383 which is 32.71% of payroll. Percentage is determined net of the expected state contribution of $2,386,687. Mr. McCullion stated the Board’s investment consultant, NEPC, is currently performing an asset liability study and will be providing recommendations for investment changes and expected future returns. A MOTION TO APPROVE THE 2013 ACTUARIAL VALUATION was made by Mr. Raybon and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY.

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4) CONSENT AGENDA


March Retirement

Tamra Hull

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Chairman Glass and seconded by Mr. Raybon; MOTION CARRIED UNANIMOUSLY.


a. STATUS OF DISABILITY APPLICANTS

None

6) NEW BUSINESS

b. 5th Member – Shannon Raybon’s Retirement letter

Mr. Raybon spoke briefly about his retirement and future plans. He will remain as the 5th

member, attending the meetings by telephone until a replacement is found. Mr. McCullion and

Chairman Glass thanked him for his service to the Board.

There being no further business the meeting adjourned at 10:12 AM. Respectfully submitted, Michele Keane Sr. Administrative Assistant

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JUNE 19, 2014

Chairman Glass called the meeting to order at 9:06 AM in conference room R, 2nd floor of City Hall and

determined a quorum was present.



Douglas Zabin, Secretary James Loper, Board Attorney

Mario A. Garcia, Trustee Katie Zuccarini, Employee Benefits

Amy Iennaco, Chief Assistant City Attorney

Mike Clelland, Attorney

Christopher Polaszek, Attorney, Morgan & Morgan


1) CHRISTOPHER POLASZEK – MORGAN & MORGAN Chairman Glass turned the meeting over to Christopher Polaszek, an attorney with Morgan & Morgan.

Mr. Polaszek described the services that will be provided should the Board approve his application to

provide securities monitoring. A MOTION TO ENTER INTO AN AGREEMENT WITH MORGAN & MORGAN

FOR SECURITIES MONITORING was made by Mr. Zabin and seconded by Mr. Garcia. MOTION CARRIED

UNANIMOUSLY. Mr. Polaszek will email the agreement to Mr. Loper for any necessary changes.

(Mr. Polaszek and Mr. Clelland left the meeting at 9:50 AM.)

2) PUBLIC COMMENT - None

3) APPROVAL OF MINUTES – MARCH 6, 2014

A MOTION TO APPROVE THE MINUTES OF MARCH 6, 2014 was made by Mr. Zabin and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. 4) APPROVAL OF MINUTES – APRIL 17, 2014 A MOTION TO APPROVE THE MINUTES OF APRIL 17, 2014 was made by Mr. Zabin and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY.

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5) CONSENT AGENDA


April Retirements – None

May Retirements – Shannon Raybon and Dion Schreiner

June Retirement – Kane Miller

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Mr. Garcia and seconded by Chairman Glass; MOTION CARRIED UNANIMOUSLY.


a. STATUS OF DISABILITY APPLICANTS – MIKE RYAN

Chairman Glass told the Board that Mike Ryan had passed away on June 4, 2014. Mr. Ryan’s

widow will be meeting with Ms. Zuccarini this afternoon to discuss filing a Line of Duty death

application. Discussion ensued regarding the various options available to Mrs. Ryan. If Mrs.

Ryan does pursue the filing Mr. Loper will amend the disability package as necessary. The

Board will decide upon a special deadline if necessary to allow sufficient time for the family

to file the application and produce medical documents. (Ms. Iennaco left the meeting at

10:02 AM.)

6) NEW BUSINESS

a. DISCUSSION OF COMPLAINT – BRAD ARNOLD – CONTINUING DISABILITY STATUS

Mr. McCullion noted the Brad Arnold complaint was forwarded to him from Risk

Management. Mr. McCullion will locate Mr. Arnold’s latest affidavit and bring it to the July

10th meeting; at which point the Board will continue the discussion.

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b. AMENDMENT TO AGREEMENT FOR LEGAL SERVICES – JAMES B. LOPER

A MOTION TO ACCEPT THE AMENDMENT TO THE AGREEMENT FOR LEGAL SERVICES FOR

JAMES B. LOPER was made by Mr. Garcia and seconded by Mr. Zabin. MOTION CARRIED

UNANIMOUSLY.

There being no further business the meeting adjourned at 11:07 AM. Respectfully submitted,

Michele Keane

Michele Keane Sr. Administrative Assistant

JOINT MINUTES – July 10, 2014

Police and Firefighters’ Pension Boards

Chairman Smith called the meeting to order on Thursday, July 10, 2014 in the Sustainability Conference Room, 2nd floor, City Hall at 9:40 AM. He determined that both the Police and Firefighters’ Pension Boards had quorums.

Board Members – Police Others Present Jay L. Smith, Chairman Christopher McCullion, Executive Director Vince Montgomery, Vice-Chair (Absent) Katrina Laudeman, Deputy Executive Director William Long, Secretary Kevin Leonard, NEPC Antonio Blanca, Trustee (Absent) Keith Stronkowsky, NEPC Laurie Botts, Trustee Mark Guariglia, Entrust Gregg Hymowitz, Entrust Board Members – Firefighters Frances D’Alessio, Thornburg Ron Glass, Chairman David Rafanowicz, PAC Representative Shannon Raybon, Vice-Chair (Absent) Shannon Hetz, Department Advocate Douglas Zabin, Secretary Matt Fleury, OPD Officer Mario Garcia, Trustee (Absent) Michele Keane, Sr. Administrative Assistant Kevin Edmonds, Trustee

1. PUBLIC COMMENT

Chairman Smith asked if there was any public comment. There was none.

2. ENTRUST SPECIAL OPPORTUNITIES III PRESENTATION

Mr. Leonard introduced Mr. Hymowitz who gave a summary of the Entrust business philosophy and the current standing of Special Opportunities II fund. Mr.

Hymowitz then spoke about the diverse types of investments which will make up the Special Opportunities III Fund. Mr. Guariglia and Mr. Hymowitz left the meeting at

10:18 AM. Chairman Smith called for a short break.

3. THORNBURG PRESENTATION AND INTERNATIONAL EQUITY MANAGER DISCUSSION

Chairman Smith reconvened the meeting at 10:35 AM at which time Mr. Leonard introduced Ms. D’Alessio of Thornburg. Ms. D’Alessio spoke about the portfolio management changes and risk management changes Thornburg has implemented.

(Mr. Edmonds left the meeting at 10:37 AM.) Some discussion ensued; Ms. D’Alessio left the meeting at 11:15 AM. Both Boards decided to delay the Thornburg and Entrust discussions until after the Lord Abbett discussion. 4. ASSET LIABILITY STUDY

Mr. Leonard stated that both pension funds are doing well; the Firefighters Pension is

funded at 84% and the Police Pension fund at 81%. He cautioned that the historically lower expected returns means that actuarial return assumptions may be difficult to achieve over the next few years. (Mr. Edmonds returned at 11:27 AM.) Mr. Leonard presented three different asset allocation mixes that would require minor adjustments to the current allocation in order to achieve the expected return of each fund .

Mr. McCullion proposed utilizing the Joint Quarterly Performance meeting scheduled for

September 4th as an education session on private debt and an opportunity to discuss Thornburg, Entrust and the international equity manager search. Both Boards agreed this would be useful and Mr. Leonard and Mr. Stronkowsky will attend.

A MOTION TO ENTERTAIN INTERVIEWING PERSPECTIVE REPLACEMENTS FOR THORNBURG AS AN INTERNATIONAL EQUITY MONEY MANAGER FOR THE POLICE PENSION BOARD was made by Chairman Smith and seconded by Mr. Long. MOTION CARRIED UNANIMOUSLY. A MOTION TO ENTERTAIN INTERVIEWING PERSPECTIVE REPLACEMENTS FOR THORNBURG AS AN INTERNATIONAL EQUITY MONEY MANAGER FOR THE FIREFIGHTERS’ PENSION BOARD was made by Chairman Glass and seconded by Mr. Edmonds. MOTION CARRIED UNANIMOUSLY. 5. LORD ABBETT BENCHMARK DISCUSSION

Mr. Leonard stated that effective June 30, 2014, Lord Abbett changed its primary benchmark for their SMID Cap Value strategy from the Russell 2500 Value to the Russell 2500. NEPC is recommending that clients review their relationship with Lord Abbett to ensure the mandate still meets their investment needs. It was decided to postpone any decisions until the December 4th Joint Quarterly Performance meeting, at which time the members will explore alternative SMID companies. 6. POLICE - APPROVAL OF MINUTES OF APRIL 10, 2014

A MOTION TO APPROVE THE MINUTES OF APRIL 10, 2014 was made by Mr. Long and seconded by Ms. Botts. MOTION CARRIED UNANIMOUSLY. 7. POLICE - CONSENT AGENDA

A MOTION TO ACCEPT THE CONSENT AGENDA was made by Chairman Smith and seconded by Ms. Botts. MOTION CARRIED UNANIMOUSLY. 8. POLICE – PENDING STATUS OF DISABILITY APPLICANTS Chairman Smith stated that there were no changes regarding Mr. Candelaria’s appeal of the denial of his disability pension application. 9. A MOTION TO ADJOURN was made by Ms. Botts and seconded by Mr. Long. The Police Pension Board portion of the meeting adjourned at 12:26 PM. Chairman Glass contacted Mr. Loper and informed him of who was in attendance and that the three members constituted a quorum. 10. FIREFIGHTERS’ – APPROVAL OF MINUTES JUNE 19, 2014 A MOTION TO ACCEPT THE MINUTES OF JUNE 19, 2014 was made by Mr. Edmonds and seconded by Mr. Zabin. MOTION CARRIED UNANIMOUSLY. 11. FIREFIGHTERS’ DISCUSSION OF BRAD ARNOLD DRAFT LETTER WITH JAMES

LOPER VIA TELEPHONE

Mr. Loper gave a brief history of Mr. Arnold’s disability background. After some discussion it was determined that Mr. Loper will be sending the “reporting on disability status by disability retiree” letter, the “affidavit of disability status” form and the “disability status letter”, attachment #7, to Mr. Arnold. He will also notify Mr. Arnold that some photographs have been received that have raised concerns regarding his current status. Mr. Loper will request that the forms be completed and returned within 20 days and explain that policy requires the Board investigate his disability status. A MOTION TO REQUEST MR. ARNOLD TO COMPLETE THE LETTER AND FORM AND APPEAR BEFORE THE BOARD AT THE NEXT SCHEDULED MEETING, AUGUST 21, 2014, was made by Mr. Edmonds and seconded by Mr. Zabin. MOTION CARRIED UNANIMOUSLY. Meeting adjourned at 12:37 PM. Respectfully submitted,

Christopher P. McCullion Michele V. Keane

Christopher P. McCullion Michele V. Keane Treasurer Sr. Administrative Assistant


AUGUST 28, 2014

Chairman Glass called the meeting to order at 9:05 AM in The Sustainability Conference Room, 2nd floor of

City Hall and determined a quorum was present.

Members Present Also Present


Douglas Zabin, Secretary Katrina Laudeman, Deputy Executive Director

Kevin Edmonds, Trustee James Loper, Board Attorney

Katie Zuccarini, Employee Benefits

Amy Iennaco, Chief Assistant City Attorney

Mike Clelland, Attorney

Brad Arnold, Retired Firefighter

William Loveland

Bob Coschignano, Firefighter


1) PUBLIC COMMENT – None

2) APPROVAL OF MINUTES –July 10, 2014

A MOTION TO APPROVE THE MINUTES OF JULY 10, 2014 was made by Mr. Edmonds and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY. 3) BRAD ARNOLD DISABILITY REVIEW Mr. Loper, Board Attorney, explained the review procedures. Mr. Clelland represented Mr. Arnold. Mr. Arnold was sworn in by Ms. Keane. Mr. Loper and the trustees asked Mr. Arnold questions to which he responded. Mr. Loveland was sworn in by Ms. Keane and testified on behalf of Mr. Arnold. After some deliberation, A MOTION TO HAVE MR. ARNOLD EXAMINED BY AN INDEPENDENT MEDICAL EXAMINER (IME) TO DETERMINE THE CURRENT STATUS OF HIS INJURY was made by Mr. Edmonds and seconded by Chairman Glass; MOTION CARRIED UNANIMOUSLY. A SECOND MOTION TO HAVE MR. ARNOLD EXAMINED BY THE SAME DOCTOR WHO PREVIOUSLY EXAMINED HIM, IF AVAILABLE, was made by Mr. Edmonds and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY.

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A THIRD MOTION to defer to the doctor’s decision regarding the need for any further testing was made by Chairman Glass and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY. (At this time Mr. Arnold, Mr. Clelland and Mr. Loveland left the meeting.) Mr. Loper will prepare questions for the IME to ask. 4) CONSENT AGENDA The following items will be acted on by the Orlando Firefighters’ Pension Board in one motion; if separate consideration of an item is requested that item may be removed from this Consent Agenda. Approve & Ratify: Note the following retirement(s)/medical disability(s) calculation(s) prepared by Employee Benefits and reviewed by Accounting & Control (pension calculation will change upon receipt of COLA benefits) authorize payment of appropriate benefit(s):

July Retirement – Randy McGowan

August Retirement – James Harris

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Mr. Zabin and seconded by Mr. Edmonds; MOTION CARRIED UNANIMOUSLY. Some discussion followed regarding Back Drop procedures that will be addressed at the next meeting.


a. ACCEPTANCE OF MORGAN & MORGAN, PA SECURITIES LITIGATION MONITORING AGREEMENT

Chairman Glass and Mr. Zabin signed the agreement permitting Morgan & Morgan, PA to

provide Securities Litigation and Monitoring. Copies of the document will be sent to Mr.

Loper and Mr. Polaszek, of Morgan & Morgan, PA.

b. RESULTS OF THE 2014 TRUSTEE ELECTION

Chairman Glass and Douglas Zabin were congratulated for being re-elected to the Board.

Mr. McCullion noted that Mr. Edmonds has agreed to continue serving as an appointed

trustee. Mr. McCullion added that he has contacted Mr. Garcia to see if he is willing to

continue as a trustee.

c. FIFTH MEMBER DISCUSSION

Chairman Glass stated he has spoken with District Chief Edward Torres about filling the

fifth member position. A MOTION TO HAVE EDWARD TORRES AS THE FIFTH MEMBER OF

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THE FIREFIGHTERS’ PENSION BOARD was made by Chairman Glass and seconded by Mr.

Zabin; MOTION CARRIED UNANIMOUSLY.

6) 2013 PREMIUM TAX DISTRIBUTION & SHARE PROGRAM DISTRIBUTION CALCULATION

Mr. McCullion provided the Board with the Share Program Distribution calculations for 2013. The

spreadsheet will be posted online for 30 days to allow verification of the information. After 30 days the

numbers will be finalized and presented to the Board for approval. A MOTION TO APPROVE THE SHARE

PROGRAM DISTRIBUTION CALCULATIONS AND POST THEM TO THE WEBSITE was made by Chairman

Glass and seconded by Mr. Edmonds; MOTION CARRIED UNANIMOUSLY.

7) OTHER BUSINESS

Mr. McCullion updated the Board about the recent resignation of Wendy Trevisani at Thornburg. He

reassured them that the meeting scheduled for the following week with NEPC will provide ample time to

make changes to the Thornburg account.

Mr. Zabin thanked Ms. Zuccarini for participating in a recent seminar for Firefighters nearing retirement.

Mr. McCullion told the trustees that he is working with Angela Buchanan of Nationwide to resolve a

beneficiary question regarding Gerald Kasper’s Share Program distribution. He added that as a result of a

meeting with Nationwide, they will be reducing their asset management fees.

There being no further business Chairman Glass adjourned the meeting at 10:43 AM.


Michele Keane

Michele Keane Pension Coordinator

Mr. McCullion called the Joint Quarterly Performance Meeting of the City of Orlando Pension Advisory

Committee, Police and Firefighters’ Pension Boards to order at 8:22 a.m. on Thursday, September 4,

2014, in the Harvard Conference Room, 9th floor, City Hall, Orlando. There were quorums representing

all boards.

PAC Members Police Pension Board Trustees Rebecca W. Sutton, Chairman (Absent) Jay L. Smith, Chairman Todd Berube, S.E.I.U. Representative Tony Blanca, Trustee (Absent) Steve Brown, L.I.U.N.A. Representative Laurie Botts, Trustee (8:31 a.m.) Jay Carr, Police Department William C. Long, Secretary Gustavo Castro, Economic Development (8:30 a.m.) Vince B. Montgomery, Vice-Chair Gerald Poke, L.I.U.N.A. Representative (Absent) Jose Vicente, Trustee (Effective 10-01-2014) David Rafanowicz, Executive Offices Charles Ramdatt, Public Works (8:35 a.m.) Firefighters’ Pension Board Trustees Michael Rhodes, Economic Development Rick Suggs, S.E.I.U. Representative (Absent) Ronald A. Glass, Chairman (9:17 a.m.) Tamara Wilson, Fire Department Kevin Edmonds, Trustee Mario A. Garcia, Trustee (Absent) Edward Torres, Trustee (9:24 a.m.) Douglas Zabin, Secretary (8:37 a.m.) Others Present Christopher P. McCullion, Treasurer& Executive Director Fire & Police Pension Boards Katrina Laudeman, Treasury Manager & Deputy Director Fire & Police Pension Boards (8:43 a.m.) Kevin Leonard & Keith Stronkowsky, NEPC Amy Iennaco, Chief Assistant City Attorney Dionna Little, Assistant City Attorney Earle Sanborn, Retired Police Officer Michele Keane, Pension Coordinator

1. PUBLIC COMMENT

Mr. McCullion asked if there was anyone from the public who wished to speak on an agenda item.

There was no response.

2. WELCOME NEW PAC MEMBER AND NEW POLICE TRUSTEE

Mr. McCullion welcomed Ms. Tamara Wilson as the new member of Pension Advisory Committee and

Mr. Jose Vicente as the newly elected trustee to the Police Pension Board.

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3. MARKET UPDATE – Keith Stronkowsky, NEPC

Mr. Stronkowsky gave an update on the market overview for the second quarter of 2014. The quarter

ended with nearly all asset classes moving higher. Emerging market assets continued their recovery as

large investor flows moved into equities and debt. Geopolitical instability in Iraq and Ukraine attracted a

fair share of global headlines. The first quarter GDP was -2.9%; however the markets assumed a strong

rebound for the second quarter.

4. PERFORMANCE UPDATE – Keith Stronkowski, NEPC

Mr. Stronkowski stated the General Employees’ Pension Plan in the fiscal year to date returned 9.8%

and returned 3.2% in the second quarter. The plan has outperformed for the one-year period at 14.9%.

The Firefighters’ and Police Pension Funds both returned 9.9% in the fiscal year to date and 3.2% in the

second quarter. The Firefighters’ and Police Pension Funds outperformed for the one-year period,

respectively 14.8% and 14.7%.

Managers’ performances were reviewed for the quarter and it was decided to address the Lord Abbett

benchmark change at the December meeting.

5. INTERNATIONAL EQUITY MANAGER SEARCH UPDATE – Kevin Leonard, NEPC

Mr. McCullion asked Mr. Leonard to recap the reason for the manager search to replace Thornburg. Mr.

Leonard noted that changes in management structure and Thornburg’s underperformance over the past

year had raised concerns with NEPC. In addition, Wendy Trevisani, a key portfolio manager, has

tendered her resignation from Thornburg. This latest action has elevated NEPC’s recommendation for

Thornburg’s customers from “watch” to “sell”. Mr. McCullion stated we hope to decide today which

managers to interview to replace Thornburg as the plans’ international equity manager.

Mr. Leonard explained the vetting process used by the research team at NEPC to narrow the choices of

potential replacements. Some discussion ensued regarding the various money managers and the

different types of investment strategies they focus on.

A MOTION WAS MADE BY THE FIREFIGHTERS’ PENSION BOARD TO INTERVIEW ARTISAN, EARNEST,

MFS, INC., AND NEUBERGER BERMAN AS POTENTIAL INTERNATIONAL EQUITY MANAGERS by

Chairman Glass and seconded by Mr. Edmonds. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE POLICE PENSION BOARD TO INTERVIEW ARTISAN, EARNEST, MFS, INC.,

AND NEUBERGER BERMAN AS POTENTIAL INTERNATIONAL EQUITY MANAGERS by Chairman Smith

and seconded by Ms. Botts. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE GENERAL EMPLOYEES’ PENSION BOARD TO INTERVIEW ARTISAN,

EARNEST, MFS, INC., AND NEUBERGER BERMAN AS POTENTIAL INTERNATIONAL EQUITY MANAGERS

by Mr. Rhodes and seconded by Mr. Ramdatt. MOTION CARRIED UNANIMOUSLY.

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6. GENERAL EMPLOYEES’ PENSION ADVISORY COMMITTEE – APPROVAL OF MINUTES – JULY 10,

2014

A MOTION TO ACCEPT THE MINUTES FROM JULY 10, 2014 was made by Mr. Rafanowicz and seconded

by Mr. Rhodes. MOTION CARRIED UNANIMOUSLY.

7. MEETING ADJOURNED FOR THE PENSION ADVISORY COMMITTEE at 10:15 a.m. - A brief recess

was taken.

Meeting reconvened at 10:30 a.m.

8. ENTRUST SPECIAL OPPORTUNITIES III UPDATE – Kevin Leonard, NEPC

Mr. Leonard explained that unlike the Special Opportunities II fund, rated as preferred by NEPC, NEPC is

rating the Special Opportunities III fund as neutral for three reasons. Current investment opportunities

in the marketplace are not as strong as they were for Special Opportunities I and II, the fund size of $3

billion to $4 billion is significantly higher than the previous funds and the “key man” risk, due to Gregg

Hymowitz’ ownership and active involvement in the firm. NEPC remains confident in EnTrust and their

opportunistic investing and feel this fits with their recommendations to the City. Some discussion

ensued.

A MOTION WAS MADE BY THE POLICE PENSION BOARD TO INCREASE THE HEDGEFUND ALLOCATION

FROM 7% TO 8%, TAKING THE 1% FROM CORE BONDS, MAINTAIN THE DIVERSIFED FUNDS AT 5% AND

REALLOCATE SPECIAL OPPORTUNITIES II TO FUND ENTRUST SPECIAL OPPORTUNITIES III WAS MADE

BY Chairman Smith and seconded by Mr. Montgomery. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE FIREFIGHTERS’ PENSION BOARD TO HAVE NEPC PERFORM A MANAGER

SEARCH, INCLUDING ENTRUST, FOR OTHER OPPORTUNISTIC HEDGE FUND STRATEGIES was made by

Chairman Glass and seconded by Mr. Zabin. MOTION CARRIED UNANIMOUSLY.

9. PRIVATE DEBT EDUCATION – Kevin Leonard, NEPC

Mr. Leonard stated that direct lending strategies are a substitute for fixed income investments, however

the investments are illiquid. These types of strategies can fit within the investment program in several

areas: opportunistic investment and private market investments.

A MOTION WAS MADE BY THE FIREFIGHTERS’ PENSION BOARD TO HAVE NEPC PERFORM A MANAGER

SEARCH FOR A DIRECT LENDING MONEY MANAGER was made by Chairman Glass and seconded by

Mr. Edmonds. MOTION CARRIED UNANIMOUSLY.

Mr. Leonard stated that NEPC will be providing a Private Equity Strategic Plan for 2015.

A MOTION WAS MADE BY THE POLICE PENSION BOARD TO HAVE NEPC PERFORM A MANAGER

SEARCH FOR A DIRECT LENDING MONEY MANAGER was made by Chairman Smith and seconded by

Mr. Long. MOTION CARRIED UNANIMOUSLY.

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10. MEETING ADJOURNED FOR THE FIREFIGHTERS’ PENSION BOARD at 11:47 a.m.

11. POLICE PENSION BOARD – APPROVAL OF MINUTES – AUGUST 14, 2014

A MOTION TO ACCEPT THE MINUTES OF AUGUST 14, 2014 was made by Ms. Botts and seconded by Mr.

Long. MOTION CARRIED UNANIMOUSLY.

12. POLICE PENSION BOARD CONSENT AGENDA

A MOTION TO APPROVE THE CONSENT AGENDA was made by Mr. Long and seconded by Ms. Botts.

MOTION CARRIED UNANIMOUSLY.

13. POLICE PENSION BOARD STATUS OF DISABILITY

Chairman Smith stated that the Writ of Certiorari for Dante Candelaria was denied by the Court. Mr.

McCullion added that Mr. Candelaria has submitted his request to Ms. Zuccarini for the return of his

contributions.

14. RESULTS OF 2014 TRUSTEE ELECTION

Chairman Smith announced that Mr. Long was re-elected and Mr. Vicente was newly elected to the

Board.

15. FIFTH MEMBER DISCUSSION

Mr. McCullion updated the Board on the fifth member process and it was decided to wait until the

October meeting to vote. The October meeting will need to be re-scheduled due to a conflict for Ms.

Botts. Alternate dates will be emailed to the Board.

Mr. Long asked if it will be acceptable for him to attend the October meeting electronically. Mr.

McCullion stated this has been done before and does not foresee any problem.

16. MEETING ADJOURNED FOR THE POLICE PENSION BOARD MEETING AT 12:00 p.m.


Christopher P. McCullion Michele Keane

Christopher P. McCullion Michele Keane Treasurer Pension Coordinator

Mr. McCullion called the Joint Quarterly Performance Meeting of the City of Orlando Pension Advisory

Committee, Police and Firefighters’ Pension Boards to order at 8:35 a.m. on Thursday, September 26,

2014, in the Sustainability Conference Room, 2nd floor, City Hall, Orlando. There were quorums

representing all boards.

PAC Members Police Pension Board Trustees Rebecca W. Sutton, Chairman Jay L. Smith, Chairman Todd Berube, S.E.I.U. Representative (Absent) Tony Blanca, Trustee Steve Brown, L.I.U.N.A. Representative (Absent) Laurie Botts, Trustee Jay Carr, Police Department William C. Long, Secretary (electronically) Gustavo Castro, Economic Development (8:40 a.m.) Vince B. Montgomery, Vice-Chair (Absent) Gerald Poke, L.I.U.N.A. Representative (8:50) Jose Vicente, Trustee (8:39) David Rafanowicz, Executive Offices Charles Ramdatt, Public Works Firefighters’ Pension Board Trustees Michael Rhodes, Economic Development Rick Suggs, S.E.I.U. Representative (Absent) Ronald A. Glass, Chairman Tamara Wilson, Fire Department Kevin Edmonds, Trustee (Absent) Mario A. Garcia, Trustee Edward Torres, Trustee Douglas Zabin, Secretary (Absent) Others Present Christopher P. McCullion, Treasurer& Executive Director Fire & Police Pension Boards Katrina Laudeman, Treasury Manager & Deputy Director Fire & Police Pension Boards Kevin Leonard, NEPC Michele Keane, Pension Coordinator Jamie Sandison & Claudia Corra, Artisan Partners Patmon Malcolm & Chris Hovis, EARNEST Partners, LLC Sean Kennedy & Ann Marie Costello, MFS Investment

Elias Cohen, Michael Savinelli, Brian Faleiro, Neuberger Berman

1. ARTISAN PARTNERS PRESENTATION

Mr. Jamie Sandison and Ms. Claudia Corra gave the presentation for Artisan Partners. Ms. Corra stated

Artisan’s philosophy is to Invest in high quality, well-managed companies that can generate sustainable

earnings growth and then described the processes they follow to identify these companies.

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2. EARNEST PARTNERS, LLC PRESENTATION

Mr. Patmon Malcolm and Mr. Chris Hovis represented EARNEST Partners, LLC and spoke about the

emphasis placed on building an international network maintained by an established, experienced and

eclectic investment team.

The meeting recessed at 10:05 a.m. and resumed at 10:15 a.m.

3. MFS INVESTMENT MANAGEMENT PRESENTATION

Mr. Sean Kennedy and Ms. Ann Marie Costello made the presentation for MFS Investment. Mr.

Kennedy stated emphasis is placed on high quality companies with profitable long-term investments.

4. NEUBERGER BERMAN PRESENTATION

Mr. Elias Cohen, Mr. Michael Savinelli and Mr. Brian Faleiro represented Neuberger Berman and noted

that their process emphasizes strategic analysis, valuation and risk management.

The Boards recessed at 11:45 a.m. for lunch and reconvened at 12:10 p.m.

After some discussion A MOTION WAS MADE BY THE GENERAL EMPLOYEES’ PENSION ADVISORY

COMMITTEE TO HIRE ARTISAN PARTNERS AS THE INTERNATIONAL EQUITY MONEY MANAGER AND

TERMINATE THORNBURG, ONCE THE ARTISAN PARTNERS CONTRACT IS COMPLETED by Mr. Rhodes

and seconded by Mr. Castro. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE POLICE PENSION BOARD TO HIRE ARTISAN PARTNERS AS THE

INTERNATIONAL EQUITY MONEY MANAGER AND TERMINATE THORNBURG , ONCE THE ARTISAN

PARTNERS CONTRACT IS COMPLETED by Ms. Botts and seconded by Mr. Long. MOTION CARRIED

UNANIMOUSLY.

A MOTION WAS MADE BY THE FIREFIGHTERS’ PENSION BOARD TO HIRE ARTISAN PARTNERS AS THE

INTERNATIONAL EQUITY MONEY MANAGER AND TERMINATE THORNBURG , ONCE THE ARTISAN

PARTNERS CONTRACT IS COMPLETED by Chairman Glass and seconded by Mr. Garcia MOTION

CARRIED UNANIMOUSLY.

Mr. Leonard responded to questions from the Board members

5. MEETING ADJOURNED at 12:37 p.m.


Christopher P. McCullion Michele Keane

Christopher P. McCullion Michele Keane Treasurer Pension Coordinator

Documents

Members Present Also Present: Ronald A. Glass, Chair ... · Douglas Zabin, Secretary Katie Zuccarini, Employee Benefits Mario A. Garcia, Trustee Shelly Burlon, Pension Coordinator