MEETING NO JOURNAL OF PROCEEDINGS BOARD OF TRUSTEES OF THE GENERAL RETIREMENT SYSTEM OF THE CITY OF DETROIT HELD WEDNESDAY, AUGUST 12, 2015

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1 MEETING NO JOURNAL OF PROCEEDINGS BOARD OF TRUSTEES OF THE GENERAL RETIREMENT SYSTEM OF THE CITY OF DETROIT HELD WEDNESDAY, AUGUST 12, :00 A.M. RETIREMENT SYSTEMS CONFERENCE ROOM ONE DETROIT CENTER, 500 WOODWARD; SUITE 3000 DETROIT, MICHIGAN TRUSTEES PRESENT Wendell Anthony Scott Benson Lori Cetlinski Tasha L. Cowan Lou Hatty Felicia Johnson June Nickleberry Thomas Sheehan Trustee Ex-Officio Trustee/City Council Member Trustee Trustee Trustee/Chairman Trustee Trustee Trustee/Vice-Chairman TRUSTEES EXCUSED None TRUSTEES ABSENT Eric Higgs John Naglick Ex-Officio Trustee/Deputy CFO Ex-Officio Trustee/Finance Director ALSO PRESENT Cynthia Thomas Deborah A. Wilkerson Ryan Bigelow Michael VanOverbeke Rita Coats Executive Director Assistant Executive Director Chief Investment Officer General Counsel Recording Secretary STAFF EXCUSED None

2 CHAIRMAN LOU HATTY The Board s Recording Secretary took a verbal Roll Call at 10:15 a.m. and Chairman Hatty called the meeting to order. Present at Roll Call: Wendell Anthony, Lori Cetlinski, Tasha L. Cowan, Lou Hatty, Felicia Johnson, June Nickleberry and Thomas Sheehan. Re: Service Retirement(s) Motion By: Trustee Sheehan - Supported By: Trustee Nickelberry RESOLVED, that the application(s) for SERVICE RETIREMENT which is outlined below be hereby APPROVED: NAME, TITLE, DEPARTMENT Schrion Baggett Refrigeration Equipment Operator-1 st Class General Services SERVICE CREDIT EFFECTIVE DATE Re: Early Retirement(s) Motion By: Trustee Sheehan - Supported By: Trustee Nickelberry RESOLVED, that the application(s) for EARLY RETIREMENT which is outlined below be hereby APPROVED: NAME, TITLE, DEPARTMENT Mark Grove Transportation Equipment Operator - Transportation SERVICE CREDIT EFFECTIVE DATE

3 Re: Vested Retirement(s) Motion By: Trustee Sheehan - Supported By: Trustee Nickelberry RESOLVED, that the application(s) for VESTED RETIREMENT which is outlined below be hereby APPROVED: NAME, TITLE, DEPARTMENT Nick A. Sessa Senior Accountant Municipal Parking SERVICE CREDIT EFFECTIVE DATE Re: Receipts The receipts which are referenced below were Acknowledged: - 3 -

4 Re: Fees and Expenses Resolution Moved By: Trustee Sheehan - Supported By: Trustee Nickelberry WHEREAS, the Board has been presented with the List of Disbursements for Board Approval which is referenced below requesting payment for Fees and Expenses, and WHEREAS, the Board has been requested to approve payment of said Fees and Expenses; THEREFORE BE IT RESOLVED, that subject to staff audit and approval of all Legal Fees by the Board s General Counsel, the Board APPROVE payment of the following Fees and Expenses: - 4 -

5 Re: Refunds of Accumulated Contributions Motion By: Trustee Sheehan - Supported By: Trustee Nickelberry RESOLVED, that the contributions to the Annuity Savings Fund by members of the General Retirement System, as set forth on List No in the amount of $425, including interest, be REFUNDED, pending audit by the Retirement Systems Accounting Staff. Re: Employee Loan Program Motion By: Trustee Sheehan - Supported By: Trustee Nickleberry RESOLVED, that the disbursements for the Employee Loan Program by members of the General Retirement System, as set forth in the amount of $89, including interest, be hereby APPROVED. Re: Minutes/Journal No Motion By: Trustee Sheehan Supported By: Trustee Nickleberry RESOLVED, that the Minutes/Journal of Proceedings, Meeting No of the meeting of the Board of Trustees of the General Retirement System of the City of Detroit, held Wednesday, July 29, 2015 be hereby APPROVED as recorded and submitted. ASSISTANT EXECUTIVE DIRECTOR S REPORT Nothing to report or any action required at today s meeting

6 EXECUTIVE DIRECTOR S REPORT The Executive Director, Cynthia Thomas, discussed the following informational item to the Board: Re: Plante & Moran The audit kick-off meeting with Plante & Moran was August 10, 2015 and will be inhouse beginning September 11, The Scope of Services will be provided to the Board. Re: Audit Committee The Audit Committee hasn t responded back in scheduling a meeting with the Executive Director. Re: Reporting Requirements New Reporting Requirements will be GASB 68 in the new plan. Re: Head Accountant Resignation The Executive Director informed the Board that the Head Accountant, India Armstrong, turned in her intent to resign. Through the Chair: Trustee Sheehan is requesting the Executive Director to provide an update on India Armstrong s resignation from the Retirement System. ~Concludes Executive Director s Report~ CHIEF INVESTMENT OFFICER S REPORT The Chief Investment Officer, Ryan Bigelow, reported to the Board the following informational items: Jefferson Property: Expected to close deal next week and will provide an update at next week s meeting. Investments/Portfolio: NEPC will report to the Board next month to discuss General s portfolio. Through the Chair: Trustee Anthony is requesting the Chief Investment Officer to give an update on the overall performance of General s investments

7 CHIEF INVESTMENT OFFICER S REPORT (Con t) GM Leaseback: The Escrow has not been transferred yet. Will touch basis with Lou Vogt and report back to the Board regarding this transaction. Mesirow re: Hedge Funds Trustee Scott Benson joined the Board Meeting at 10:30 a.m. ~Concludes Chief Investment Officer s Report~ Open Forum Chairman Lou Hatty opened the meeting for public discussion: City of Detroit Retiree and President of Detroit Active and Retired Employee Association (DAREA) William Davis addressed the Board regarding the following: DAREA update City of Detroit Retiree Cedric Cook addressed the Board regarding the following: Code of Conduct Policy City of Detroit Retiree Gerald Thompson addressed the Board regarding the following: Annuity Posting ~Concludes Public Comment~ The Board RECESSED at 10:55 a.m. The Board RECONVENED at 11:20 a.m. Re: Entering Into Closed Session Resolution Moved By: Trustee Sheehan Supported By: Trustee Anthony WHEREAS, the Retirement System is subject to the limitation of the Open Meetings Act ( OMA ) being MCL et seq. and has adopted a resolution on April 25, 2012 relative thereto; THEREFORE BE IT - 7 -

8 Re: Entering Into Closed Session (Con t) RESOLVED, that the Board enters into Closed Session for the purpose of discussing Attorney-Client Privileged matters regarding Capozzoli litigation strategy which is exempt under Public Act 314. A Roll Call vote was taken as follows: Yeas: Anthony, Benson, Cetlinski, Cowan, Hatty, Johnson, Nickelberry and Sheehan 8 The Board entered into Closed Session at 11:20 a.m. Re: Open Session Motion By: Trustee Sheehan Supported By: Trustee Anthony RESOLVED, that the Board come out of Closed Session. The Board returned to Open Session at 12:46 p.m. The Board RECESSED for LUNCH at 12:46 p.m. The Board RECONVENED at 1:45 p.m. GENERAL COUNSEL S REPORT General Counsel discussed the following: Purchase Agreement Entry In Minutes: Re: PFRS/GRS Jefferson Avenue Corp./Approval of Sale Documents Unanimous Written Consent of Directors Secretary s Certificate Conflict of Interest Policy - 8 -

9 Re: Capozzoli Advisory for Pensions/Joe Capozzoli/Workforce Trust Resolution Moved By: Trustee Sheehan - Supported By: Trustee Cetlinski WHEREAS, Special Legal Counsel, Racine & Associates has reported on the status of the Legal Proceedings and the matter of the status of the services, costs and fees of Stout Risius Ross, Inc. ( SRR ) at this time, and WHEREAS, Special Legal Counsel has requested that The Board increase the existing cap on (SRR) costs to authorize an additional $25,000 so that (SRR) can continue to provide assistance and litigation support to Racine & Associates; and WHEREAS, The Board has discussed this matter, THEREFORE BE IT RESOLVED, that The Board approves the request of Special Legal Counsel and expressly authorizes a $25,000 increase in the existing cap on (SRR) costs for (SRR) services in providing assistance and litigation support to Racine & Associates, and BE IT FURTHER RESOLVED, that a copy of this resolution be immediately forwarded to Racine & Associates (Attention: Marie T. Racine), 1001 Woodward Avenue, Suite 1100, Detroit, MI 48226; Stout Risius Ross (Attention: Mick Kahaian), 4000 Town Center, 20 th floor, Southfield, MI 48075: Yeas: Anthony, Benson, Cetlinski, Cowan, Hatty, and Sheehan 6 Nays: Johnson and Nickleberry - 2 ~Concludes General Counsel s Report~ OLD/NEW BUSINESS Re: Foundation Establishment Marilyn Roc Berdijo, Manager of the Retirement System, appeared before the Board to discuss the Foundation Establishment, to help fund retirees who need assistance with health care. This matter will be brought back before the Board with an update on the Foundation on the best way to allocate the foundation and to get legal advice. The Foundation Establishment Committee consists of Marilyn Roc Berdijo, Trustee June Nickleberry and Trustee Scott Benson

10 ADJOURNMENT There being no further business before the Board, Chairman Hatty adjourned the meeting at 3:45 p.m. The Board s next meeting is scheduled for Wednesday, August 19, 2015, at 10:00 a.m. in the Retirement Systems Conference Room, 500 Woodward Avenue Suite 3000; Detroit, Michigan RESPECTFULLY SUBMITTED, DEBORAH A. WILKERSON ASSISTANT EXECUTIVE DIRECTOR