mr. mccullion called the joint quarterly performance ... · mr. mccullion called the joint...

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

Committee, Police and Firefighters’ Pension Boards to order at 8:27 a.m. on Thursday, December 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) William C. Long, Chairman Todd Berube, S.E.I.U. Representative Jay L. Smith, Vice-Chairman Steve Brown, L.I.U.N.A. Representative Jose Vicente, Secretary Jay Carr, Police Department Tony Blanca, Trustee (Absent) Gustavo Castro, Economic Development Laurie Botts, Trustee Gerald Poke, L.I.U.N.A. Representative (Absent) David Rafanowicz, Executive Offices (8:46 a.m.) Firefighters’ Pension Board Trustees Charles Ramdatt, Public Works Ronald A. Glass, Chairman (8:55 a.m.) Michael Rhodes, Economic Development (Absent) Kevin Edmonds, Trustee Rick Suggs, S.E.I.U. Representative (Absent) Mario A. Garcia, Trustee (Absent) Tamara Wilson, Fire Department Edward Torres, Trustee Douglas Zabin, Secretary Others Present Christopher P. McCullion, Treasurer& Executive Director Fire & Police Pension Boards Katrina Laudeman, Treasury Manager & Deputy Director Fire & Police Pension Boards Kevin Leonard (8:38 a.m.) & Keith Stronkowsky, NEPC Jim Nevola, Bank of New York Mellon 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. MARKET UPDATE – Keith Stronkowsky, NEPC

Mr. Stronkowsky gave an update on the market overview for the third quarter of 2014. Volatility in the

foreign market escalated as the US dollar surged. The Federal Reserve wound down its bond purchases

(QE3) and oil prices fell significantly.

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3. PERFORMANCE UPDATE – Keith Stronkowski, NEPC

Mr. Stronkowsky stated the General Employees’ Pension Plan in the fiscal year to date returned 9.0%

and returned a negative 0.8% in the third quarter. The plan has outperformed for the one-year period

at 9.0%.

The Firefighters’ and the Police Pension Funds both returned 9.3% in the fiscal year to date and a

negative 0.6% for the third quarter. The Firefighters’ and Police Pension Funds both outperformed for

the one-year period, at 9.3%.

4. SMID Value Manager Search – Kevin Leonard, NEPC

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

potential replacements for Lord Abbett that will also complement William Blair, the SMID Growth

Manager for the Boards.

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

HILL, WELLINGTON AND TS&W AS POTENTIAL SMID VALUE MANAGERS by Mr. Ramdatt and seconded

by Mr. Rafanowicz. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE POLICE PENSION BOARD TO INTERVIEW DIAMOND HILL, WELLINGTON

AND TS&W AS POTENTIAL SMID VALUE MANAGERS by Vice-Chairman Smith and seconded by Ms.

Botts. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE FIREFIGHTERS’ PENSION BOARD TO INTERVIEW DIAMOND HILL,

WELLINGTON AND TS&W AS POTENTIAL SMID VALUE MANAGERS by Mr. Edmonds and seconded by

Mr. Zabin. MOTION CARRIED UNANIMOUSLY.

The interviews will be scheduled for mid to late January 2015.

5. GENERAL EMPLOYEES’ PENSION ADVISORY COMMITTEE – APPROVAL OF MINUTES –

SEPTEMBER 4, 2014 AND SEPTEMBER 26, 2014

A MOTION TO ACCEPT THE MINUTES FROM SEPTEMBER 4, 2014 AND SEPTEMBER 26, 2014 was made

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

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

was taken.

Meeting reconvened at 10:25 a.m.

7. DIRECT LENDING EDUCATION AND MANAGER SEARCH – Kevin Leonard, NEPC

Mr. Stronkowsky and Mr. Leonard educated the Board about the opportunities and advantages of the

various types of direct lending. Mr. Stronkowsky compared and contrasted Comvest Capital Advisors,

LLC a Florida based company and Park Square Capital, LLC an international company based out of

London, England.

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A MOTION WAS MADE BY THE POLICE PENSION BOARD TO INTERVIEW PARK SQUARE CAPITAL, LLP

AND COMVEST CAPITAL ADVISORS, LLC AS POTENTIAL DIRECT LENDING OPPORTUNITIES MANAGERS

by Chairman Long and seconded by Vice-Chairman Smith. MOTION CARRIED UNANIMOUSLY.

A MOTION WAS MADE BY THE FIREFIGHTERS’ PENSION BOARD TO INTERVIEW PARK SQUARE

CAPITAL, LLP AND COMVEST CAPITAL ADVISORS, LLC AS POTENTIAL DIRECT LENDING OPPORTUNITIES

MANAGERS was made by Mr. Zabin and seconded by Mr. Torres. MOTION CARRIED UNANIMOUSLY.

After a brief discussion, it was decided to schedule both the SMID Value Managers interviews and the

Direct Lending Opportunity Managers interviews on the same day in January, 2015. The SMID Value

Managers interviews will be scheduled for the morning and the Direct Lending Opportunities Managers

after lunch.

NEPC will conduct a private equity discussion and provide a recommendation before the trustees decide

how much to commit and how to fund these allocations.

Mr. McCullion updated the trustees about Artisan’s side letter that is nearing completion.

Mr. Nevola, Bank of New York Mellon, spoke briefly.

8. MEETING ADJOURNED at 11:20 a.m.

Respectfully submitted,

Christopher P. McCullion Michele Keane

Christopher P. McCullion Michele Keane Treasurer Pension Coordinator

MINUTES FROM MEETING OF

DECEMBER 18, 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

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

Eddie Torres, Trustee Katrina Laudeman, Deputy Executive Director

Kevin Edmonds, Trustee James Loper, Board Attorney

Mario Garcia, Trustee Katie Zuccarini, Employee Benefits

Amy Iennaco, Chief Assistant City Attorney

Dionna Little, Assistant City Attorney

Mike Clelland, Attorney

Brad Arnold, Retired Firefighter

Matthew Negedly, District Chief

Michele Keane, Sr. Administrative Assistant

1) PUBLIC COMMENT – None

2) BRAD ARNOLD DISABILITY HEARING

Mr. Loper summarized Mr. Arnold’s case and the results of the Functional Capacity Evaluation and MRI

ordered by Dr. Faissal Zahrawi. Dr. Zahrawi’s Independent Medical Examination states Mr. Arnold’s

disability is permanent in nature, related to his job and renders him totally disabled to perform his duty as

a firefighter. Ms. Amy Iennaco, Chief Assistant City Attorney, stated she has conferred with the

Department and there is no objection to continuing Mr. Arnold’s disability status. Mr. Clelland waived

comments. A MOTION THAT BASED UPON THE EVIDENCE PRESENTED TO THE BOARD THERE HAVE

BEEN NO CHANGES THAT WOULD ALLOW BRAD ARNOLD TO RETURN TO SERVICE AS A FIREFIGHTER

was made by Chairman Glass and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY.

Mr. Loper instructed Mr. Arnold about his responsibilities to the Board if any changes occur to his health

or circumstances. Mr. Arnold agreed to do so and he and Mr. Clelland left the meeting at 9:13 a.m.

3) ELECTION OF OFFICERS

Attachment #2

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A MOTION TO ELECT RON GLASS AS CHAIR was made by Mr. Edmonds and seconded by Mr. Garcia;

MOTION CARRIED UNANIMOUSLY.

A SECOND MOTION TO ELECT DOUGLAS ZABIN AS SECRETARY was made by Chairman Glass and

seconded by Mr. Edmonds; MOTION CARRIED UNANIMOUSLY.

A THIRD MOTION TO ELECT EDDIE TORRES AS VICE-CHAIR was made by Mr. Glass and seconded by Mr.

Edmonds; MOTION CARRIED UNANIMOUSLY.

4) APPROVAL OF MINUTES –August 28, 2014, September 3, 2014 and September 26, 2014

A MOTION TO APPROVE THE MINUTES OF AUGUST 28, 2014, SEPTEMBER 3, 2014 AND SEPTEMBER 26, 2014 was made by Mr. Edmonds and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. 5) 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):

September Retirement – Chad Williamson

October Retirement – Jeffrey Bailey

November Retirement – Jeffrey Ponds

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Mr. Edmonds and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. 6) PENDING/OLD BUSINESS

Ms. Keane informed the Board that Ms. Tracy Farina has submitted her application and notebook for a line-of-duty disability. Ms. Farina’s Independent Medical Examination (IME) is scheduled for January 6, 2015. Chairman Glass notified the Board that Mr. Jeffrey Roe will be applying for a disability. Mr. McCullion asked for clarification of the time frame and process for delivering applications and notebooks to the trustees. Chairman Glass confirmed Mr. McCullion was correct in his understanding of the procedures to be followed. Mr. Loper would like to receive the application and IME results to aid in his understanding of disability cases. Copies of Ms. Farina’s application will be sent to the Board members following the meeting. (Ms. Iennaco left the meeting at 9:26 a.m.)

7) RATIFY 2013 PREMIUM SHARE PROGRAM DISTRIBUTION

Attachment #2

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Mr. McCullion stated that there were no objections to the spreadsheet and the distributions were made

in November. A MOTION THAT FOR FUTURE YEARS, THE BOARD DELEGATE TO THE CHAIRMAN THE

AUTHORITY TO SIGN OFF ON THE SHARE PROGRAM DISTRIBUTION ONCE THE SPREADSHEET IS

APPROVED, TO ALLOW TIMELY DISTRIBUTION OF THE SHARES was made by Mr. Edmonds and seconded

by Mr. Torres; MOTION CARRIED UNANIMOUSLY.

8) BACKDROP INFORMATION

Mr. Loper explained the circumstances necessitating the proposed Contingency Back Drop Election form

and the three options available. He added that item #4F needs to be changed to read “my estate” instead

of “any other pension”. The form is irrevocable; however, Mr. Loper will amend #4A to allow changing

the option. Mr. Loper will bring the amended form to the next meeting for approval.

9) OTHER BUSINESS

Mr. Torres stated he had attended the 44th Annual Police Officers and Firefighters’ Pension Trustees’

Conference and fiduciary liability insurance for Board members was a key topic. He asked about personal

liability, the necessity of the insurance and the cost. Discussion ensued. Mr. Loper will investigate and

will bring more information to the next meeting. Mr. McCullion will check into the cost of the insurance

and advise the Board at the next meeting.

There being no further business Chairman Glass adjourned the meeting at 10:32 AM.


Michele Keane

Michele Keane Pension Coordinator

Attachment #2

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

Committee, Police and Firefighters’ Pension Boards to order at 9:04 a.m. on Friday, January 30, 2015, in

the Veteran’s Conference Room, 2nd floor, City Hall, Orlando. There were quorums representing all

boards.

PAC Members Police Pension Board Trustees Rebecca W. Sutton, Chairman William C. Long, Chairman Todd Berube, S.E.I.U. Representative Jay L. Smith, Vice-Chairman Steve Brown, L.I.U.N.A. Representative Jose Vicente, Secretary Jay Carr, Police Department (Absent) Tony Blanca, Trustee Gustavo Castro, Economic Development Laurie Botts, Trustee Gerald Poke, L.I.U.N.A. Representative David Rafanowicz, Executive Offices Firefighters’ Pension Board Trustees Charles Ramdatt, Public Works (Absent) Michael Rhodes, Economic Development Ronald A. Glass, Chairman Rick Suggs, S.E.I.U. Representative (Absent) Kevin Edmonds, Trustee (9:06 a.m.) Tamara Wilson, Fire Department Mario A. Garcia, Trustee Edward Torres, Trustee Douglas Zabin, Secretary Others Present Christopher P. McCullion, Treasurer& Executive Director Fire & Police Pension Boards Katrina Laudeman, Treasury Manager & Deputy Director Fire & Police Pension Boards Kevin Leonard & Keith Stronkowsky, NEPC Michele Keane, Pension Coordinator

1. DIAMOND HILL CAPITAL MANAGEMENT PRESENTATION

Mr. Chris Welch and Mr. Josh Alderman gave the presentation for Diamond Hill. Mr. Alderman stated that Diamond Hill’s primary focus is to provide lasting value for their clients through a long-term intrinsic value philosophy. Mr. Welch explained the five-year time horizon, the margin of safety and how individual stocks become part of a portfolio. 2. TS&W PRESENTATION Ms. Tracey Ivey and Mr. Brett Hawkins represented TS&W and spoke about the use of a four-factor screen in identifying undervalued stocks, evaluating risk and reward and then setting mileposts for progress. A brief recess was taken. Mr. Castro left. The meeting resumed at 10:45 a.m.

Attachment #2

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3. WELLINGTON MANAGEMENT COMPANY LLP Mr. Stephen Moorhead, Mr. Shaun Pedersen and Mr. Gardiner Holland made the presentation for Wellington. Mr. Pedersen explained the investment process of identifying inexpensive, high-quality companies through in-depth research and analysis. Mr. Rhodes returned at 10:50 a.m. Mr. Berube returned at 10:55 a.m. A MOTION WAS MADE TO HIRE WELLINGTON AS THE SMID VALUE MANAGER FOR THE GENERAL EMPLOYEES PENSION PLAN by Mr. Rhodes and seconded by Mr. Brown. MOTION CARRIED UNANIMOUSLY. A MOTION WAS MADE TO HIRE WELLINGTON AS THE SMID VALUE MANAGER FOR THE POLICE PENSION PLAN by Mr. Smith and seconded by Ms. Botts. MOTION CARRIED UNANIMOUSLY. A MOTION WAS MADE TO HIRE WELLINGTON AS THE SMID VALUE MANAGER FOR THE FIREFIGHTERS’ PENSION PLAN by Mr. Torres and seconded by Mr. Garcia. MOTION CARRIED UNANIMOUSLY. Meeting adjourned for the Pension Advisory Committee at 12:00 p.m. The Police and Firefighters’ Pension Boards recessed for lunch. The Firefighters’ and Police Pension Boards reconvened at 12:54 p.m. 1. COMVEST PARTNERS PRESENTATION

Mr. Daniel Lee, Mr. Robert O’Sullivan and Mr. Greg Reynolds made the presentation for Comvest. Mr. O’Sullivan stated the company focuses on the lower middle-market in areas where Comvest has direct expertise or strong operating partners. 2. PARK SQUARE CAPITAL PRESENTATION Mr. Roger Kempink and Mr. Osvaldo Pereira represented Park Square Capital. The company focuses on large, high quality European companies that are stable and predictable. A MOTION WAS MADE TO HIRE BOTH COMVEST PARTNERS AND PARK SQUARE CAPITAL, AS DIRECT LENDING OPPORTUNITISTIC MANAGERS, ALLOCATING 1.5 PERCENT TO EACH COMPANY (THREE PERCENT TOTAL) FROM THE CORE BONDS PORTION OF THE FIXED INCOME ALLOCATION, FOR THE FIREFIGHTERS’ PENSION PLAN by Mr. Edmonds and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY. A MOTION WAS MADE TO HIRE BOTH COMVEST PARTNERS AND PARK SQUARE CAPITAL, AS DIRECT LENDING OPPORTUNITISTIC MANAGERS, ALLOCATING 1.5 PERCENT TO EACH COMPANY (THREE PERCENT TOTAL) FROM THE CORE BONDS PORTION OF THE FIXED INCOME ALLOCATION, FOR THE POLICE PENSION PLAN by Chairman Long and seconded by Mr. Smith; MOTION CARRIED UNANIMOUSLY.

Attachment #2

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The meeting was adjourned at 2:58 p.m. by Mr. McCullion. Respectfully submitted,

Christopher P. McCullion Michele V. Keane

Christopher P. McCullion Michele V. Keane Treasurer Pension Coordinator

Attachment #2


FEBRUARY 19, 2015





Eddie Torres, Vice-Chair Katrina Laudeman, Deputy Executive Director

Douglas Zabin, Secretary James Loper, Board Attorney

Kevin Edmonds, Trustee Katie Zuccarini, Employee Benefits

Mario Garcia, Trustee (Arrived 9:03) Amy Iennaco, Chief Assistant City Attorney



Tracy Farina, Firefighter

Michele Keane, Pension Coordinator

1) PUBLIC COMMENT – None

(The Board decided to take item 8, the Opportunistic Credit Hedge Fund Search, out of order to allow Mr.

Garcia to participate in the disability hearing and accommodate Mr. Leonard’s time constraint.)

2) OPPORTUNISTIC CREDIT HEDGE FUND SEARCH

Ms. Laudeman contacted Kevin Leonard, with NEPC, while Mr. McCullion reminded the Board of a

previous discussion regarding the EnTrust Special Opportunities III. Mr. Leonard and Mr. McCullion added

there are several options available to the Firefighters’ Pension Board to reinvest the distributions from

EnTrust Special Opportunities II. A MOTION TO CANCEL THE SEARCH FOR AN OPPORTUNISTIC CREDIT

HEDGE FUND MANAGER, TO REALLOCATE THE DISTRIBUTIONS FROM THE ENTRUST SPECIAL

OPPORTUNITIES II FUND TO CURRENT PRIVATE DEBT MANAGERS, AND TO INCREASE THE ALLOCATION

TO THE PRIVATE DEBT PORTION OF THE PORTFOLIO was made by Mr. Edmonds and seconded by Mr.

Zabin; MOTION CARRIED UNANIMOUSLY.

3) DISABILITY HEARING FOR TRACY FARINA

Mr. Loper, Board Attorney, reviewed the procedures. Ms. Farina was represented by Mr. Clelland and

Ms. Iennaco represented the Department. Ms. Farina was sworn in by Ms. Keane. Chairman Glass called

for the application, disability packet and Independent Medical Examination to be entered into evidence.

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Mr. Clelland gave a timeline and brief description of Ms. Farina’s seven injuries, adding that all were

accepted as compensable by workers compensation. Ms. Iennaco waived opening statements, stating the

Department does not oppose the application. She but did ask for clarification on one point which Mr.

Clelland provided. Ms. Iennaco stated she has consulted with Chief Miller and there are no opportunities

for light duty for Ms. Farina. The applicant did not testify. Ms. Ienacco and Mr. Clelland waived closing

statements. Chairman Glass stated the evidence phase of the hearing was now closed and the Board

would enter the determination phase of the proceeding.

A MOTION THAT THIS IS A PERMANENT AND TOTAL DISABILITY was made by Chairman Glass and

seconded by Mr. Edmonds; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT THIS IS A LINE OF DUTY DISABILTY was made by Mr. Edmonds and seconded by Mr.

Zabin; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT THERE IS NO LIMITED DUTY PERMANENT POSITON AVAILABLE IN THE FIRE

DEPARTMENT WITHOUT A REDUCTION IN PAY OR BENEFITS was made by Chairman Glass and seconded

by Mr. Zabin; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT TRACY FARINA DOES NOT HAVE TWENTY YEARS OF SERVICE AND IS NOT ENTITLED TO

COST OF LIVING PAYMENTS was made by Chairman Glass and seconded by Mr. Torres; MOTION

CARRIED UNANIMOUSLY.

A MOTION THAT THE LINE OF DUTY DISABILITY PENSION WILL BE EFFECTIVE MARCH 1, 2015 was made

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

Ms. Farina and Mr. Clelland left the meeting at 9:20 a.m. and a brief recess was taken.

Meeting resumed at 9:27 a.m.

4) APPROVAL OF MINUTES -DECEMBER 4, 2014

A MOTION TO APPROVE THE MINUTES OF DECEMBER 4, 2014 was made by Mr. Edmonds and seconded

by Chairman Glass; MOTION CARRIED UNANIMOUSLY.

5) APPROVAL OF MINUTES – DECEMBER 18, 2014

A MOTION TO APPROVE THE MINUTES OF DECEMBER 18, 2014 was made by Mr. Edmonds and

seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY.

6) APPROVAL OF MINUTES – JANUARY 30, 2015

A MOTION TO APPROVE THE MINUTES OF JANUARY 30, 2015 was made by Chairman Glass and

seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY.

7) CONSENT AGENDA

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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):

December Retirement – None

January Retirement – John McGrath

February Retirements – Scott Gawler, Ronald Raymond, Frank Cornier, Diana Savalisch and

Raymond Biefelt

A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Mr. Edmonds and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. 8) PENDING/OLD BUSINESS

a. DISABILITY APPLICATION STATUS - Ms. Keane informed the Board that Mr. Jeffrey Roe is expected to submit his notebook for a line-of-duty disability today.

b. BACK DROP INFORMATION – Mr. Loper explained the changes made to the Contingency

Back Drop Election form and that it is irrevocable. The form protects the right of a firefighter to secure a

Back Drop benefit for a beneficiary (ies) in the event death should occur before electing the Back Drop

option. A MOTION TO APPROVE THE REVISED BACK DROP ELECTION FORM was made by Chairman

Glass and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. Some discussion followed

regarding how to distribute the information and form to all Firefighters.

c. FIDUCIARY LIABILITY INFORMATION / PLAN ADMINISTRATION – Mr. Loper stated Florida

Statute 175 applies to the Orlando Firefighters’ Pension Fund and states that the sole and exclusive

administration and the responsibility for the proper operation of the Pension Fund is with the Board of

Trustees. He added that Florida Statute 175 also provides for the compensation of reasonable attorneys

fees. Mr. Loper then spoke about Florida Statute 112.656 which states a fiduciary shall discharge their

duties with respect to a plan solely in the interest of the participants and beneficiaries for the exclusive

purpose of providing benefits to participants and their beneficiaries and defraying reasonable expenses of

administering the plan.

He stated there are two fiduciary responsibilities a Board has to its members: the duty to investigate and

the duty to inform.

Mr. Loper then spoke specifically about the email that Chairman Glass received from retiree Gary

Woodard. A MOTION TO HAVE A LETTER SENT TO MR. WOODARD STATING THAT THE BOARD HAS

REVIEWED HIS REQUEST AND DETERMINED HE IS NOT ELIGIBLE TO RECEIVE BENEFITS UNDER THE PLAN

ESTABLISHED BY FLORIDA STATUTE 175 was made by Mr. Garcia and seconded by Mr. Zabin. MOTION

CARRIED UNANIMOUSLY.

4



Michele Keane



APRIL 16, 2015


City Hall and determined a quorum was present. He telephoned Mr. Loper.



Eddie Torres, Vice-Chair (Arrived 10:07 AM) Katie Zuccarini, Employee Benefits

Douglas Zabin, Secretary James Loper, Board Attorney (via phone)

Kevin Edmonds, Trustee Dionna Little, Fire Advisor

Mario Garcia, Trustee Gitaanjali Sookdeo, Accountant I

Imtiaz Khan, Assistant Controller

David Harris, Nyhart

Randall Stanley, Nyhart



1) PUBLIC COMMENT

Mr. Clelland addressed the Board regarding an upcoming disability case for deceased firefighter, Mike

Ryan. Mr. Clelland is asking for a waiver of obligations to produce all medical records related to Mr.

Ryan’s care. Mr. Loper suggested Mr. Clelland provide the trustees with a preliminary application that

includes a death certificate that lists the cause of death, reason(s) why the death should be considered a

line-of-duty case and a deposition from Mr. Clelland’s expert witness. Some discussion ensued and Mr.

Clelland left the meeting at 9:35 AM.

2) ACTUARIAL VALUATION PRESENTATION AND SUMMARY

Mr. Stanley noted this was the 11th year that Nyhart has performed the actuarial valuation for the

Firefighters’ Pension Board and turned the meeting over to Mr. Harris. Mr. Harris summarized the

actuarial valuation findings, stating the Fund is now 85% funded. He added the expected City

contribution will be slightly less this year than last year at $13,450,900. Mr. Harris gave brief explanations

of GASB 67 and 68 and SB534; citing how their implementation will effect reporting. (Mr. Torres joined

the meeting at 10:07 AM.)

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A MOTION TO ACCEPT THE ACTUARIAL VALUATION was made by Chairman Glass and seconded by Mr.

Zabin. MOTION CARRIED UNANIMOUSLY.

3) 5 – YEAR EXPERIENCE STUDY PROPOSAL

Mr. Harris stated that it is time to conduct a 5-year experience study that will cover October 1, 2010 to

September 30, 2014. Some discussion ensued regarding lowering the current rate of return assumption,

currently at 8%, and lowering the current assumptions for inflation and payroll growth.

A MOTION TO AUTHORIZE THE 5 – YEAR EXPERIENCE STUDY was made by Mr. Garcia and seconded by

Mr. Edmonds. MOTION CARRIED UNANIMOUSLY.

4) APPROVAL OF MINUTES – FEBRUARY 19, 2015

A MOTION TO APPROVE THE MINUTES OF FEBRUARY 19, 2015 was made by Mr. Edmonds and seconded

by Mr. Garcia; MOTION CARRIED UNANIMOUSLY.

5) A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Chairman Glass and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY. (Mr. Khan left the meeting at 10:35 AM.) 6) PENDING/OLD BUSINESS

a. DISABILITY APPLICATION STATUS – No update on Mr. Roe. 7) NEW BUSINESS

a. Mr. McCullion informed the trustees that the Police Pension Board members have decided to move to an electronic format and after some discussion, the Firefighters’ Pension Board decided to do the same. Mr. McCullion will be ordering iPads for all of the trustees except Mr. Edmonds, who has already been issued one through the City. The trustees will discuss at a later date whether to require disability pension applicants to file their materials electronically. For now, disability applications will continue to be done via printed material in notebooks.



Michele Keane



MAY 19, 2015





Eddie Torres, Vice-Chair Katrina Laudeman, Deputy Executive Director

Douglas Zabin, Secretary James Loper, Board Attorney


Mario Garcia, Trustee Jeffrey Roe, Firefighter



1) PUBLIC COMMENT – Chairman Glass asked for public comment. There was none.

2) DISABILITY HEARING – JEFFREY ROE

Mr. Loper, Board Attorney, reviewed the procedures. Mr. Roe represented himself and was sworn in by

Ms. Keane. Ms. Little, Department Advocate, was unable to attend; however her email stating there are

not any limited duty positions available and that the Department does not oppose the application was

placed into evidence. There were no opening statements. Chairman Glass called for the applications,

disability packet and Independent Medical Examination to be entered into evidence. Mr. Roe

summarized his injuries and treatments. Chairman Glass stated the evidence phase of the hearing was

now closed and the Board would enter the determination phase of the proceeding.

A MOTION THAT THIS IS A PERMANENT AND TOTAL DISABILITY was made by Chairman Glass and

seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT THIS IS A LINE OF DUTY DISABILITY was made by Mr. Edmonds and seconded by

Chairman Glass; MOTION CARRIED UNANIMOUSLY.

A MOTION THAT THERE IS NO PERMANENT LIMITED DUTY POSITION AVAILABLE IN THE FIRE

DEPARTMENT WITHOUT A REDUCTION IN PAY OR BENEFITS was made by Chairman Glass and seconded

by Mr. Edmonds; MOTION CARRIED UNANIMOUSLY.

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A MOTION THAT JEFFREY ROE DOES HAVE TWENTY YEARS OF SERVICE AND IS ENTITLED TO COST OF

LIVING PAYMENTS was made by Chairman Glass and seconded by Mr. Zabin; MOTION CARRIED

UNANIMOUSLY.

A MOTION THAT THE LINE OF DUTY DISABILITY PENSION WILL BE EFFECTIVE JUNE 1, 2015 was made by

Chairman Glass and seconded by Mr. Torres; MOTION CARRIED UNANIMOUSLY.

A brief recess was taken at 9:29 AM and Mr. Roe and District Chief Negedly left the meeting.

Meeting resumed at 9:31 AM.

3) APPROVAL OF MINUTES – APRIL 16, 2015

A MOTION TO APPROVE THE MINUTES OF APRIL 16, 2015 was made by Mr. Zabin and seconded by; Mr.

Edmonds; MOTION CARRIED UNANIMOUSLY.

4) A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Chairman Glass and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. 5) PENDING/OLD BUSINESS

a. DISABILITY APPLICATION STATUS – Mr. Horn will be stopping by to review his application on May 21, 2015.

6) NEW BUSINESS

a. CHANGE OF EXECUTIVE DIRECTOR FOR PENSION BOARD - Mr. McCullion announced Ms. Laudeman’s promotion to Treasurer. He stated that historically the Pension Boards have appointed the Treasurer as their Executive Director and asked the Trustees to consider making Ms. Laudeman the Executive Director of the Firefighter’s Pension Board. A MOTION THAT MS. LAUDEMAN BE APPOINTED AS THE EXECUTIVE DIRECTOR OF THE FIREFIGHTERS’ PENSION BOARD was made by Mr. Edmonds and seconded by Chairman Glass; MOTION CARRIED UNANIMOUSLY.

b. ELECTRONIC POLICY - Mr. McCullion is working on an electronic policy for the iPad

usage and will send it out once completed.

c. DROP LETTER – Chairman Glass asked about the status of the letter that will be sent out with the new DROP forms. Mr. McCullion will forward the letter to Chairman Glass by the end of the week.

Some discussion followed regarding how Forward and Back DROP dates affect 10-year certain payouts. Chairman Glass and Mr. Torres also asked if it is possible to provide a formula that will allow firefighters to estimate their monthly pension. Mr. McCullion will see if something can be devised and advise the Board at the next meeting.

3

There being no further business Chairman Glass adjourned the meeting at 10:14 AM. Respectfully submitted,

Michele Keane


Ms. Laudeman called the Joint Quarterly Performance Meeting of the General Employees’ Pension Advisory Committee, Police and Firefighters’ Pension Boards to order at 8:23 am on Thursday, June 4, 2015, in the Harvard Conference Room, 9th floor, City Hall, Orlando. All three Pension Boards had quorums.

PAC Members Others Present Rebecca W. Sutton, Chairman (Absent) Katrina Laudeman, Treasurer and Todd Berube, S.E.I.U. Representative Executive Director Fire & Police Pension Steve Brown, L.I.U.N.A. Representative (Absent) Boards Jay Carr, Police Department Kevin Leonard, NEPC Gustavo Castro, Economic Development Keith Stronkowsky, NEPC Gerald Poke, L.I.U.N.A. Representative (Absent) Dionna Little, Asst. City Attorney II David Rafanowicz, Executive Offices Michele V. Keane, Pension Coordinator Charles Ramdatt, Public Works (8:43 am) (Jet) J.E. Taylor, III, The Carlyle Group Michael Rhodes, Economic Development (9:04 am) Margaret McKnight, The Carlyle Group Rick Suggs, S.E.I.U. Representative (Absent) Tamara Wilson, Fire Department

Police Pension Board Members Firefighters’ Pension Board Members Jay Smith, Vice-Chair Ron Glass, Chairman Laurie Botts, Trustee Edward Torres, Vice-Chair Antonio Blanca, Trustee Kevin Edmonds, Trustee William Long, Chairman (Absent) Mario Garcia, Trustee Jose Vicente, Secretary (Absent) Doug Zabin, Secretary (Absent) 1. PUBLIC COMMENT

Ms. Laudeman asked if there was anyone who wished to speak on an agenda item. There was

no response.

2. MARKET UPDATE

Mr. Stronkowsky gave an update on the market overview for the first quarter of 2015. He

stated that US stocks and government bonds continued to perform well and hedge funds

outperformed most major indices in the first quarter. The three funds have not had a negative

quarter for the past two years.

3. PERFORMANCE UPDATE

Mr. Leonard reviewed the performance of our money managers. The General Employees’

Pension Fund returned 1.9% for the first quarter and 4.5% for the fiscal year-to-date. The one

year return is 7.1% versus the policy index of 7.5% and the five year return is 9.6%

outperforming the policy index of 8.8%.

The Firefighters’ Pension Fund performed the best of all three funds and returned 2.0% for the

first quarter. The Police Pension Fund returned 1.8% for the first quarter. Fiscal year-to-date

the Firefighters’ and Police Pension Funds returned 4.8% and 4.5% respectively. Mr. Leonard

added that over the past five years, all three Pension Funds have outperformed their assumed

rates of return.

4. METROPOLITAN REAL ESTATE PRESENTATION

Mr. Leonard introduced Mr. (Jet) J.E. Taylor and Ms. Margaret McKnight of Metropolitan Real

Estate which has been the Non-Core Private Real Estate money manager for all three Pension

Funds since 2010. Mr. Taylor stated that Metropolitan has been purchased by The Carlyle

Group. He added that they will remain independent in their investment decisions but will have

access to all of Carlyle’s resources. Ms. McKnight stated that the portfolio is doing well and

there are no present areas of concern. The presentation concluded at 9:45 AM at which time

Mr. Taylor and Ms. McKnight left the meeting. A short break was taken.


5. METROPOLITAN REAL ESTATE DISCUSSION

Mr. Leonard stated he thought the presentation went well however he remains concerned

about the delay in the deployment of capital. He noted that one of the risks of investing in a

fund of fund is that there is not any direct control over when the capital is called. Mr. Leonard

added that despite the fact it is taking longer than anticipated to receive a return on our

money, it may still work to our advantage as opportunities can still be found in Europe due to

the start of their economic recovery.

6. GENERAL EMPLOYEES’ PENSION ADVISORY COMMITTEE - APPROVAL OF MINUTES-

APRIL 28, 2015

A MOTION TO APROVE THE MINUTES FROM MARCH 27, 2014 was made by Mr. Berube and

seconded by Mr. Carr; MOTION CARRIED UNANIMOUSLY.

MEETING ADJOURNED FOR THE GENERAL EMPLOYEES’ PENSION ADVISORY COMMITTEE AT

10:02 AM.

7. COLLER – PRIVATE EQUITY / ALTERNATIVE ASSET DISCUSSION

Mr. Leonard and Mr. Stronkowsky spoke about updating and maintaining the private equity

portion of the portfolios. Currently both the Police and Firefighters’ Pension Plans are invested

in Comvest, Park Square and Coller. It is NEPC’s recommendation that the private equity

portfolio be addressed on an annual basis. Coller has been successful in the past and is looking

for investors for its Fund VII. After much deliberation, both Pension Boards decided to delay

making a commitment to Coller.

NEPC will also be presenting other secondary investment opportunities in the Fall, including

energy strategies.

There being no further business Ms. Laudeman adjourned the meeting at 10:51 A.M.


Katrina A. Laudeman Michele V. Keane

Katrina A. Laudeman Michele V. Keane Treasurer Pension Coordinator

Ms. Laudeman called the Joint Quarterly Performance Meeting of the General Employees’ Pension Advisory Committee, Police and Firefighters’ Pension Boards to order at 8:23 am on Thursday, September 3, 2015, in the Harvard Conference Room, 9th floor, City Hall, Orlando.

PAC Members Others Present Rebecca W. Sutton, Chairman (Absent) Katrina Laudeman, Treasurer and Todd Berube, S.E.I.U. Representative Executive Director Fire & Police Pension Steve Brown, L.I.U.N.A. Representative (Absent) Boards Jay Carr, Police Department (8:42 am) Christopher P. McCullion, Deputy CFO Gustavo Castro, Economic Development Kevin Leonard, NEPC Gerald Poke, L.I.U.N.A. Representative (Absent) Keith Stronkowsky, NEPC David Rafanowicz, Executive Offices Dionna Little, Asst. City Attorney II Charles Ramdatt, Public Works Michele V. Keane, Pension Coordinator Rick Suggs, S.E.I.U. Representative (Absent) Jim Nevola, Bank of New York Mellon Tamara Wilson, Fire Department (Absent) Michael Fuehrer, Bank of New York Mellon Police Pension Board Members Firefighters’ Pension Board Members William Long, Chairman Ron Glass, Chairman (8:35 am) Jay Smith, Vice-Chair Doug Zabin, Secretary (8:24 am) Jose Vicente, Secretary Edward Torres, Vice-Chair (Absent) Antonio Blanca, Trustee (8:30 am) Kevin Edmonds, Trustee (Absent) Laurie Botts, Trustee Mario Garcia, Trustee (Absent) 1. PUBLIC COMMENT Ms. Laudeman asked if there was anyone who wished to speak on an agenda item. There was

no response.

2. MARKET UPDATE

Ms. Laudeman introduced Mr. Nevola and Mr. Fuehrer of the Bank of New York Mellon and

then turned the meeting over to Mr. Leonard and Mr. Stronkowsky of NEPC. Mr. Stronkowsky

gave an update on the market overview for the second calendar quarter of 2015, and spoke

about the volatility that was tied to China devaluing its currency, commodities, currencies and

the Federal Government

3. PERFORMANCE UPDATE

Mr. Leonard reviewed the performance of our money managers. The General Employees’

Pension Fund returned -0.2% for the second quarter and 4.4% for the fiscal year-to-date. The

one year return is 3.6% versus the policy index of 3.4% and the five year return is 10.9%

outperforming the policy index of 10.3%.

The Firefighters’ Pension Fund returned -0.2% for the second quarter and the Police Pension

Fund returned -0.3%. Fiscal year-to-date the Firefighters’ and Police Pension Funds returned

4.6% and 4.3% respectively.

4. GENERAL EMPLOYEES’ PENSION ADVISORY COMMITTEE - APPROVAL OF MINUTES-

JUNE 4, 2015

A MOTION TO APROVE THE MINUTES FROM JUNE 4, 2014 was made by Mr. Rhodes and

seconded by Mr. Carr; MOTION CARRIED UNANIMOUSLY.

MEETING ADJOURNED FOR THE GENERAL EMPLOYEES’ PENSION ADVISORY COMMITTEE AT

9:20 AM.

5. POLICE & FIREFIGHTERS’ 2014 PREMIUM TAX DISTRIBUTION CALCULATION

DISCUSSION

Mr. McCullion addressed the Police trustees regarding the receipt of the insurance premium tax

monies, which can be added towards purchasing remaining minimum benefits and fund a share

plan. Ms. Laudeman will be providing an update at a later date about plan changes.

Mr. McCullion then spoke with the Firefighters’ trustees regarding a shortfall of approximately

$64,000 of state insurance premium tax revenue over the base amount to cover the current

benefits. This shortfall will be covered by the Firefighters membership per the agreement

between the City and bargaining unit. The repayment will be spread out over the entire year,

with a minimum impact to the 500 members. Some discussion ensued.

Mr. McCullion left the meeting at 9:45 AM and a brief break was taken.


6. PRIVATE EQUITY ASSET ALLOCATION DISCUSSION – NEPC

Ms. Laudeman stated the pacing plans for private equity would be discussed next. She noted

that the figures have been corrected to show a 5% allocation approved for the private equity

sector of the fund. Mr. Leonard spoke about the pacing plan as a long-term form of budgeting

towards a target or plan that will be revisited on an annual basis.

Mr. Stronkowsky explained the different types of strategies the three managers they presented

to the Boards, AEA Investors LP, Brookfield Capital Partners, and Monomoy Capital

Management LP employ and spoke about the strengths and weaknesses of each company. Of

the three, NEPC feels that Brookfield is the best match for the City of Orlando Firefighters’ and

Police Pension boards. Some discussion ensued and the trustees for both boards asked NEPC to

arrange for Brookfield to be interviewed by a joint meeting of the Police and Firefighters’

Pension Boards on September 17, 2015 at 10:00 AM.

There being no further business Ms. Laudeman adjourned the meeting at 10:33 AM.


Katrina A. Laudeman Michele V. Keane

Katrina A. Laudeman Michele V. Keane Treasurer Pension Coordinator


SEPTEMBER 17, 2015

Chairman Glass called the meeting to order at 9:12 AM in the Sustainability Conference Room, 2nd floor

of City Hall and determined a quorum was present. Chairman Glass contacted Mr. Loper by phone.


Ronald A. Glass, Chair Katrina Laudeman, Executive Director

Eddie Torres, Vice-Chair Christopher P. McCullion, Deputy CFO

Douglas Zabin, Secretary James Loper, Board Attorney (By telephone)


Mario Garcia, Trustee Matt Dickey, Treasury Manager

Dionna Little, Asst. City Attorney II


1) PUBLIC COMMENT – Chairman Glass asked for public comment. There was none.

2) APPROVAL OF MINUTES – MAY 19, 2015

A MOTION TO APPROVE THE MINUTES OF MAY 19, 2015 was made by Mr. Zabin and seconded by;

Mr. Torres; MOTION CARRIED UNANIMOUSLY.

3) APPROVAL OF MINUTES – JUNE 4, 2015

A MOTION TO APPROVE THE MINUTES OF JUNE 4, 2015 was made by Mr. Zabin and seconded by;

Mr. Edmonds; MOTION CARRIED UNANIMOUSLY.

4) A MOTION TO APPROVE THE CONSENT AGENDA AS PRESENTED was made by Mr. Zabin and seconded by Mr. Edmonds; MOTION CARRIED UNANIMOUSLY. 5) PENDING/OLD BUSINESS

DISABILITY APPLICATION UPDATE – Ms. Keane stated that Mr. Horn’s IME results have been

received and added to his notebook. She noted that Mr. Horn will be unavailable October 4th

through October 16th. Ms. Little stated she and Ms. Ienacco are still discussing his disability

package. Ms. Keane will set a date for the disability hearing.

6) NEW BUSINESS

2

a. RENEWAL OF MR. LOPER’S CONTRACT

Mr. Loper spoke briefly about his 15 years of service to the Firefighters’ Pension Board and asked that they renew his contract with an increase of 1.7%. The contract will go into effect October 1, 2015 and will end September 30, 2016. A MOTION TO APPROVE THE RENEWAL OF MR. LOPER’S LEGAL CONTRACT was made by Mr. Garcia and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY.

b. PRESENTATION OF PLAQUE TO MR. MCCULLION

Chairman Glass presented Mr. McCullion with a plaque and thanked him for all of his assistance and 7 years of service to the Firefighters’ Pension Board as the Executive Director. Mr. McCullion thanked the Board for the experience and their support.

There being no further business Chairman Glass adjourned the meeting at 9:46 AM. Respectfully submitted,

Michele Keane


MINUTES FROM JOINT MEETING OF

SEPTEMBER 17, 2015

Ms. Laudeman called the Special Joint Police and Firefighters’ Pension Board Meeting to order at 10:04 AM on Thursday, September 17, 2015, in the Sustainability Conference Room, 2nd Floor, City Hall, Orlando. Both Pension Boards had a quorum. Police Pension Board Members Firefighters’ Pension Board Members William Long, Chairman (Absent) Ron Glass, Chairman Jay Smith, Vice-Chair Edward Torres, Vice-Chair Jose Vicente, Secretary Doug Zabin, Secretary Laurie Botts, Trustee Kevin Edmonds, Trustee Antonio Blanca, Trustee (Absent) Mario Garcia, Trustee Others Present Katrina A. Laudeman, Treasurer and Executive Director Fire & Police Pension Boards Christopher P. McCullion, Deputy CFO Matt Dickey, Treasury Manager Kevin Leonard, NEPC David Neiman, Brookfield Asset Management Inc. Michele Keane, Pension Coordinator

1. PUBLIC COMMENT

Ms. Laudeman asked if there was anyone who wished to speak on an agenda item. There was no comment. Ms. Laudeman turned the meeting over to Mr. Leonard of NEPC.

2. NEPC INTRODUCTION Mr. Leonard stated that Brookfield would be making a presentation seeking funding for their Brookfield Capital Partners Fund IV. NEPC is recommending the Police and Firefighters’ Pension Boards consider allocating $13 million and $10 million respectively as part of their 5% approved allocation to private equity. Mr. Leonard reminded the trustees that this is a fully vetted fund. This fourth fund is focusing on opportunistic buyouts and distressed turnaround opportunities in good companies that are in out of favor sectors.

3. BROOKFIELD PRESENTATION

Mr. Neiman introduced himself, gave an overview of the company and the investment strategies they employ. He stated that Brookfield is a value investor with an established long-term track record. (Mr. Edmonds left the meeting at 10:30 AM.) He added that Brookfield has never had a realized loss in 15 years. Mr. Neiman addressed questions from the trustees, thanked them for their time and left the meeting.

4. DISCUSSION Mr. Leonard, Ms. Laudeman and Mr. McCullion responded to questions from the trustees. A MOTION THAT THE FIREFIGHTERS’ PENSION BOARD COMMIT $10 MILLION TO THE BROOKFIELD CAPITAL PARTNERS FUND IV, AS PART OF THEIR PRIVATE EQUITY PORTFOLIO ALLOCATION, was made by Mr. Zabin and seconded by Mr. Garcia; MOTION CARRIED UNANIMOUSLY. A MOTION THAT THE POLICE PENSION BOARD COMMIT $13 MILLION TO THE BROOKFIELD CAPITAL

PARTNERS FUND IV, AS PART OF THEIR PRIVATE EQUITY PORTFOLIO ALLOCATION, was made by Mr.

Smith and seconded by Mr. Vicente; MOTION CARRIED UNANIMOUSLY.

5. APPOINTMENT OF NEW DEPUTY EXECUTIVE DIRECTOR

Ms. Laudeman introduced Mr. Matt Dickey, the new Treasury Manager, gave a brief summary of his extensive work experience and asked the trustees to consider appointing him as the new Deputy Executive Director. A MOTION TO APPOINT MATT DICKEY AS DEPUTY EXECUTIVE DIRECTOR FOR THE POLICE PENSION BOARD was made by Ms. Botts and seconded by Mr. Smith; MOTION CARRIED UNANIMOUSLY. A MOTION TO APPOINT MATT DICKEY AS DEPUTY EXECUTIVE DIRECTOR FOR THE FIREFIGHTERS’ PENSION BOARD was made by Mr. Garcia and seconded by Mr. Zabin; MOTION CARRIED UNANIMOUSLY. There being no further business Ms. Laudeman adjourned the meeting at 11:15 AM. Respectfully submitted,

Michele Keane


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