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1 MINUTES OF THE MEETING OF THE BOARD OF TRUSTEES OF THE TAMPA FIRE & POLICE PENSION FUND 3001 North Boulevard Tampa, FL (813) August 28, :30 p.m. The Board of Trustees of the City Pension Fund for Firefighters and Police Officers in the City of Tampa met in the Pension Office Conference Room on Wednesday, August 28, 2013 at 1 :30 p.m. for a regular meeting with the following members present: Richard Griner, Chairman Mark McRae, Vice Chairman Sharon Fox, Secretary Mark Bogush John Cannon Rick Cochran P.J. Gray Ocea Lattimore Also present were Mr. Stuart Kaufman, General Counsel, Mr. Mark Lenker, External CPA, and active and retired plan members. Please turn off your cell phones and pagers or set them to silent mode. 1. Approved the minutes of the July 24, 2013 regular board meeting. It was moved by Mr. McRae, seconded by Mr. Cannon and by unanimous vote to approve the minutes of the July 24, 2013 regular board meeting as written. 2. Approved the minutes of the August 12,2013 emergency board meeting. Mr. Gray requested that the second motion under item 1 be amended to read as follows, "It was moved by Mr. Gray, seconded by Mr. Cochran to increase Ms. Ernst's salary to half the difference between her present salary and Ms. Campbell's salary while acting as interim plan administrator." He noted that his requested changes are reflective of the words actually spoken. It was moved by Mr. Gray, seconded by Mr. Cannon and by unanimous vote to approve the minutes of the August 12, 2013 emergency board meeting as amended. Consent Agenda Items on the consent agenda shall be acted upon in one motion. If an item requires additional discussion, that item shall be removed from the consent agenda for discussion. [Items 3-8] Mr. Griner requested that item 6 be removed from the consent agenda. It was moved by Mr. McRae, seconded by Mr. Cannon and by unanimous vote to approve consent agenda items 3-5 and Ratified pension benefits. 4. Investment Management Report from Bowen, Hanes & Co. Inc. Noted receipt of the following: a. Investment management report for the month ended 7/ Market value of investments as of 7/ was $1,738,934, Investment return has been % on the total portfolio so far this fiscal year. b. Money Market Fund Institutional Class. Ending market value on 7/ was $2,141,979.59, yield +0.01%. c. Addendum distributed at meeting. Market value of investments as of 08/27/20 13 was $1,709,049,743. Investment return has been % on the total portfolio so far this fiscal year. 5. Approved billing for services rendered by Klausner, Kaufman, Jensen & Levinson during July 2013: a. General Counsel - $8, b. Parker - $3, c. Pena - $ d. Ribaya - $150.00

2 August 28, 2013 Page 2 [Item 6 removed from consent agenda 1 7. Noted receipt ofletter received from Mayor Buckhorn reappointing Sharon Fox to the Board of Trustees for a three year term commencing and ending 10/ Noted that quarterly Retirement & Financial Planning Educational Workshops are to be conducted by Jeff Helms as follows. Recall that these workshops are free, open to the public, and can apply towards continuing professional education (CPE). Flyer attached. Tuesday Wednesday 11105/ / :00 am and 2:00 pm 10:00 am and 2:00 pm Investing Made Easy: Simple Yet Successful Investing Strategies [Item 6 taken out of order 1 6. Approved billing for services rendered by P. Gonyea ofdld Lawyers: a. General Counsel- August $ b. General Counsel- September $ c. General Counsel- October $1, d. General Counsel- November $ e. Pena - $3, Mr. Griner expressed concern regarding item 6 because some of the invoices are almost 1 year old, noting that he was informed by Ms. Ernst that a couple of items listed have already been paid. Ms. Ernst noted that she has left a message with Mr. Gonyea's office and is waiting for a return call. Mr. Kaufman advised that it is appropriate to pay the Pena invoice. It was moved by Mr. Gray, seconded by Ms. Lattimore and by unanimous vote to approve item 6e and table items 6 a-d. 9. Financial Reporting Presentation. Noted receipt of Accountant's Compilation Report prepared by Mark Lenker, CPA of Nobles, Decker, Lenker & Cardoso for: a. Month ended 04/30/ market value of assets as of 04/30/2013 was $1,729,168,168. b. Month ended 05/ market value of assets as of 05/ was $1,732,783,548. c. Month ended 06/30/ market value of assets as of 06/30/2013 was $1,688,252,065. Mr. Lenker provided an overview of the quarter, noting that the plan's total assets are 98.5% invested. He advised that contributions and administrative costs have been fairly consistent, while benefits paid are up due to the 13 th check distribution in June. Regarding the monthly report, Mr. Lenker explained that he reconciles to the custodial report and BH&Co' s report looking for differences. He noted that the differences are in the inclusion and exclusion of accrued interest and dividends (included by the bank, but not included by BH&Co. because they are not available to be invested), pricing differences, as well as assets that are not included in either report, such as the office facility. In comparing 06/30/2012 and 06/30/2013, Mr. Lenker noted that the bulk of the iocrease was in the area of investments. He commented that cash, cash equivalents and equities were up, mostly due to iocreased value not new dollars added. Mr. Lenker also noted that in terms of fixed income, additional investments were offset by reduced market value. Regarding the total fund performance, Mr. Lenker pointed out that we are starting to see the effect of the increase in size of the portfolio in the investment manager fees. He also noted that contributions are up, as expected, while buy-backs have decreased. Mr. Lenker advised that there was a big change in benefits paid due to the 13 th check distribution in June, while other components are the increased DROP and longevity payments. He continued that administrative costs are up due to increases in actuarial and legal fees, salaries,

3 August 28, 2013 Page 3 training/education and DROP expenses, offset by reduced medical fees. Mr. Lenker advised that the fund performance this year versus the same period one year ago is down, while contributions and benefits paid are up. It was moved by Mr. Gray, seconded by Mr. Cannon and by unanimous vote to receive and file item 9. Medical Disability 10. Authorized referral to Cardiac Medical Board comprised of Drs. J. Casellas, W. Cheng, and R. Medina for LOD disability applicant C. Hicks, TPD, as recommended by Medical Director. It was moved by Mr. Gray, seconded by Ms. Fox and by unanimous vote to authorize referral of LOD disability applicant C. Hicks to Cardiac Medical Board, as recommended by Medical Direcor. 11. Authorized referral to Cardiac Medical Board comprised of Drs. J. Casellas, W. Cheng, and R. Medina for LOD disability applicant B. Bartlett, TPD, as recommended by Medical Director. It was moved by Mr. Gray, seconded by Ms. Fox and by unanimous vote to authorize referral of LOD disability applicant B. Bartlett to Cardiac Medical Board, as recommended by Medical Director. Old Business 12. Committee #1 report - options for fulfillment of permanent plan administrator position. Mr. McRae advised that the committee met for about an hour and discussed the necessary qualifications and whether or not the Board should use a headhunter. He noted that the committee also discussed potential advertising options. Mr. McRae further advised that Mr. Klausner will be providing proposals and pricing from a few headhunters for the committee's review at the next committee meeting, scheduled for Tuesday, September 24,2013 at 10:00 a.m. New Business 13. Noted receipt of listing of upcoming conferences. Disclosure of planned attendance, if any. a. Consideration of moving of Wednesday 10123/2013 pension board meeting to Wednesday 10130/2013 due to conflict with Division of Retirement Trustee's School in Orlando, Tuesday, 10/ Thursday, Ms. Ernst disclosed that she went to the office of Bowen, Hanes & Company with Mr. Griner on August 20,2013. Ms. Ernst also disclosed that she and Tiffany Corry will be attending the Division of Retirement conference in October, while Ginny O'Keefe will be attending the FPPTA Trustees School in September. Ms. Fox tentatively disclosed for Division of Retirement conference. It was moved by Mr. Gray, seconded by Ms. Fox and by unanimous vote to receive and file item 13 and approve item 13a to avoid conflict with the Division of Retirement conference. 14. Recommended revision to P&P 702 Investment Policy to reflect change in the actuarially assumed rate of return from 10% to 8.5%. It was moved by Ms. Fox, seconded by Mr. McRae and by unanimous vote to adopt recommended revisions to P&P Recommendation to extend Buck Consultants' contract for one fiscal year upon its expiration on September 30, Bi-ennial review of all board professionals tentatively scheduled for January Mr. Griner explained that Buck Consultants' contract expires on an off year, in terms of the bi-ennial review of professionals, and asked for a I-year extension, noting that Buck is currently in the middle of the

4 August 28,2013 Page 4 stochastic study. Mr. Griner confinned that fees will not change. It was moved by Mr. Bogush, seconded by Ms. Fox and by unanimous vote to approve the I-year extension of Buck Consultants' contract. 16. Update on Trustee P. Gray's request to install Wi-Fi internet access in the pension office. [Mr. Cochran entered at 2:09 p.m.] Tiffany Corry advised the Board that there are two wireless internet options available through the City. The first option is public Wi-Fi, which is what is available throughout the rest of the City and is not password protected. The second option is to create a wireless internet connection that requires users to log in using their City login LD. and password. She explained that with either option, the City would cover the cost of the wireless router. Ms. Corry continued to offer some insight regarding a T &1 ipad pilot program, which would allow the Board to go paperless in tenns of the monthly board packages. Discussion ensued regarding the pilot program and it was agreed that the Board has no interest in the pilot program at this time. It was moved by Mr. Gray, seconded by Mr. Cochran and by unanimous vote to approve the installation of open access wireless internet at no cost to the fund. 17. Chair's call for any new business items from trustees to be placed on next agenda. None. [Brief recess from 2: 19 p.m. to 2:25 p.m. for Public Comment cards to be turned in.] 18. Chair's report. Nothing to report. 19. Attorney's report. Mr. Kaufman advised that the external auditor does not feel that an immediate exit audit for the fonner plan administrator is warranted, but plans on conducting some extra testing during the regular audit. Mr. Kaufman noted that all of the court pleadings make up about 2/3 ofthe monthly board package, and asked if the Board wants to continue to receive these documents in the meeting packet? Ms. Fox opined that the documents are educational and infonnative reading. 20. Plan Administration - F&P pension office priorities, projects, deadlines. Ms. Ernst advised that the scanner has been installed and is fast and functional. She also advised that the State Premium Tax Money has been received and deposited in the amounts of $2,972, for Chapter 185 and $3,219, for Chapter 175. Ms. Fox asked if hiring a temporary employee needs to be considered? Ms. Ernst responded that she has discussed it with staff and feels confident that staff will be able to handle the workload. Public Comments Limited to two (2) minutes per person and maximum often (10) persons. None. The statements made by speakers under Public Comments are solely the opinion of each speaker and do not necessarily reflect the views of the Board of Trustees, its staff, or its professionals. Litigation 21. Parker Lawsuit Florida Supreme Court Case No. 2 nd District Court of Appeals Case No. Hillsborough County Circuit Court Case No. SC Dll Noted receipt of the following: a. Petitioner's Motion for Leave to File Memorandum in Support of Acceptance of Jurisdiction dated 05/13/2013.

5 August 28,2013 Page 5 b. Notice from Supreme Court of Florida dated 07/ granting petitioner's motion for extension of time to serve the initial brief. c. Petitioner's Initial Brief dated 07/18/2013. d. Respondent's Unopposed Motion for 30-day Extension of Time to Serve Answer Brief dated 08/02/2013. e. Notice from Supreme Court of Florida dated 08/09/2013 granting respondent's motion for extension of time to serve the answer brief on merits. f. Update by plan attorney, if any. Mr. Kaufman advised that Mr. Gonyea filed a request for a 30-day extension oftime, which was granted. He added that the Court advised there shall be no further extensions of time granted. Mr. Kaufman continued that once both parties file, the Court will set a date for oral arguments probably sometime toward the end of the year. It was moved by Ms. Fox, seconded by Mr. Gray and by unanimous vote to receive and file item Pena Lawsuit 2 nd District Court of Appeals Case No. Hillsborough County Circuit Court Case No. Noted receipt of the following: a. Notice of Appeal dated 07/22/ D b. Acknowledgement of New Case dated 07/26/2013 from the Second District Court of Appeal. c. Update by plan attorney, if any. Mr. Kaufman advised that the Fund was granted Summary Judgment, but it was appealed. He advised that there has been some discussion on who the Board wants representing the Fund in the appeal, including arguing the case. Mr. Kaufman noted that Mr. Klausner would argue the case. Mr. Griner opined that he would rather not pay two attorneys to oversee the same matter and that it is much easier to get in touch with general counsel. Mr. Bogush noted that he has a confidence issue with Mr. Gonyea, especially with the billing issues that have come through. It was moved by Mr. Bogush, seconded by Mr. McRae and by unanimous vote to discontinue Mr. Gonyea's service in the Pena case. It was moved by Ms. Fox, seconded by Mr. Gray and by unanimous vote to receive and file item Artz Lawsuit, Case No Update by plan attorney, ifany. Mr. Kaufman advised that this case has been dismissed three times. He continued that the party asked for an extension of time, which they missed. Mr. Kaufman advised that the best course of action at this time is to do nothing, rather than pay additional fees. 24. Ribaya Lawsuit, Case No a. Stipulation and Joint Motion to Vacate and Re-enter Order Dismissing Second Amended Complaint with Prejudice dated 08114/2013. b. Update by plan attorney, if any. Mr. Kaufman advised that he is in receipt of the signed Order Dismissing Second Amended Complaint with Prejudice, which means the only option left is to file an appeal. Mr. Kaufman requested authorization from the Board to advise Mr. Ribaya through counsel that the Board will seek attorney's fees if they file an appeal. It was moved by Mr. Gray, seconded by Mr. Cochran and by unanimous vote to authorize the attorney to advise Mr. Ribaya that if this continues, the Board will seek attorney's fees. It was moved by Mr. Gray, seconded by Ms. Fox and by unanimous vote to receive and file item 24.

6 August 28, 20 \3 Page 6 Regarding item 22, Ms. Fox asked if the attorney will notify Mr. Gonyea? Mr. Kaufman confirmed, explaining that he will prepare a letter for the Chairman's signature, which will be sent to Mr. Gonyea in a timely manner. 25. Noted receipt of legal fees paid to date on each case. It was moved by Mr. Gray, seconded by Mr. Cannon and by unanimous vote to receive and file item 25. Motion to adjourn was made by Ms. Fox at 2:40 p.m. ~~ ' Richard Griner, Chairman Any person who desires to appeal any decision of the Board of Trustees with respect to any matter considered at this Board meeting will need a record of the proceedings and for this purpose, may need to ensure that a verbatim record of the proceedings is made which includes testimony and evidence upon which the appeal is based. Persons needing a special accommodation to participate in this meeting should contact the F&P pension office at (813) or (888) toll free, or the Florida Relay Service at (800) toll free, or dial 711 from any phone (regular phone/land line or cell phone) for the Florida Relay Service. Please make your requests at least five (5) working days before this meeting Board meeting schedule 1 :30 p.m. September 25, 2013 October 30, 2013 're-scheduled November 20, 2013 'early due to holidays