Public Safety Retirement Board

City of Fort Myers Firefighters’ Retirement System Minutes: Meeting of November 2, 2011

1. CALL TO ORDER

Chairman Matt Galewski called a special meeting of the Board of Trustees for the Fort Myers Firefighters’ Retirement System to order at 9:00 AM. Those persons present included:

TRUSTEES OTHERS Matt Galewski, Chair Scott Baur & Linda Runkle, Pension Resource Center Dino Magas, Secretary Debra Emerson, City of Fort Myers Paul Stavich Mark Marzella & John Trujillo, Members Chief Ken Dobson

Richard Fimbel participated via telephone

2. SERVICE PROVIDER EVALUATION

a. Christiansen & Dehner

Matt Galewski explained that he is dissatisfied with the relationship the Board Attorney, Scott Christiansen, has with the Board for two reasons. First, he feels that the timing of a fee increase during the past year was inappropriate, and second, he believes that there have been too many problems with moving forward on the Share Plan Ordinance. Mr. Galewski reported that Mr. Christiansen was not receptive to the advice of the Union’s attorney, Mark Floyd, regarding the appropriate language to utilize to accomplish the objective of including DROP participants in the share distributions.

Scott Baur advised that the Pension Resource Center works with several plans where DROP participants receive shares, and he explained that the language utilized in the ordinance is the key to receiving approval from the State Division of Retirement. He reported that “participants in the plan that are actively employed by the City on or after a specific date” is contained in other City ordinances for Share Plan distributions. Mr. Baur advised that he spoke with Mark Floyd after the meeting of September 1, 2011, and that the draft ordinance was sent to Patricia Shoemaker, and to the City Clerk and the City Attorney.

The Board discussed the alternatives of ending the employment of Christiansen & Dehner immediately and hiring an interim attorney, versus distributing a Request for Proposal (RFP) and offering Christiansen & Dehner the opportunity to respond along with other service providers. Paul Stavich recommended that the Board utilize the RFP process. Richard Fimbel commented that the attorney must perform the work as directed by the Board irrespective of whether he agrees with it or not.

A discussion of the Share Ordinance ensued. Scott Baur agreed to talk with Patricia Shoemaker prior to the December 2, 2011 meeting. It was the consensus of the Board that Mr. Baur should determine if Ms. Shoemaker has any issues regarding the ordinance that would jeopardize compliance with Florida statutes. Meeting of November 2, 2011 Page 2 of 3

Dino Magas made a motion to direct Scott Baur to forward the Share Plan Ordinance to the City, and to request a response from Patricia Shoemaker regarding the Ordinance. Paul Stavich seconded the motion, passed by the Trustees 5-0.

Dino Magas made a motion to issue a Request for Proposal to law firms with experience and expertise with public pension plans, including Christiansen & Dehner. Paul Stavich seconded the motion, passed by the Trustees 5-0.

Scott Baur will forward a draft RFP to the Trustees for comments. The RFP will be issued in November, requesting a response in mid-December.

b. Foster & Foster

Matt Galewski reported that he is very satisfied with the performance of the Board’s actuary, Foster & Foster. He stated that Patrick Donlan and Christine Laufer are responsive to his inquiries. Paul Stavich advised that he has never had an issue with Foster & Foster. It was a consensus of the Board that the Trustees are satisfied with the service provided by Foster & Foster.

c. Bogdahn Consulting

Paul Stavich reported that he is dissatisfied with the performance of Bogdahn Consulting, and stated that he will not vote in favor of a fee increase. Mr. Stavich expressed concern over the fact that the Board had requested additional information from Tim Nash during the workshop held on August 5, 2011, and that Mr. Nash did not attend the quarterly meeting on September 1, 2011, and his replacement was unaware of the request for information. Mr. Stavich reported that Bogdan’s results, net of fees, are below the benchmark.

Scott Baur advised that the Board will still need an investment consultant, even if the decision is made to invest in indexed funds. He also reported that a change in the investment consultant will likely result in substantial changes of investment managers. Mr. Baur explained that the fees that the Board is paying Bogdahn Consulting are lower than average, and advised that even with the requested increase, the fees would be below average. He suggested that if the Board decides to engage in a Request for Proposal for an investment consultant, the focus should be on performance, not on fees.

The Trustees agreed that there will be a further discussion regarding the investment consultant after receipt of the next quarterly report.

3. OLD BUSINESS

The Trustees discussed two situations where a pension benefit was erroneously overpaid. An issue regarding a member’s buy-back was also raised. Scott Baur is gathering information regarding the overpayments and will contact the individuals to seek repayment to the plan. Mr. Baur is in the process of obtaining detailed payroll information from the City, and does not yet have a report that includes buy-backs. Meeting of November 2, 2011 Page 3 of 3

Mr. Baur reported that he has notified all service providers to inform them that the Pension Resource Center should receive invoices and reports.

4. NEW BUSINESS

Matt Galewski recommended that the Trustees watch the October 17, 2011 City Council meeting on the City’s website. He advised that the City is considering changing the composition of the pension board by replacing the Mayor with the City Manager or his designee.

5. NEXT REGULAR MEETING

The Trustees previously set the schedule for the next regular quarterly meeting on Thursday, December 1, 2011 at 1:00 pm.

6. ADJOURNMENT

There being no further business, the meeting was adjourned at 10:25 AM.

Respectfully submitted,

Dino Magas, Secretary