CITY OF CAPE CORAL

MUNICIPAL POLICE OFFICERS’ PENSION TRUST FUND

BOARD OF TRUSTEES

MINUTES OF QUARTERLY MEETING

NOVEMBER 3, 2011

The meeting was called to order at 8:40 A.M. in the Community Room located in the Cape Coral City Complex.

Those Trustees present on behalf of the Cape Coral Municipal Police Officers’ Pension Trust Fund were Christopher Ellis, Paul Blanchard, David Toumey, Michael Urraro and Lyndia Bradley

Also Present:Lee Dehner, Christiansen & Dehner

Linda Runkle & Robert Kovacs, Pension Resource Center

Jeff Swanson, Southeastern Advisory Services

John Musser & Joseph Maguire, Penn Capital Management

Leta Chaney, Salem Trust Company

AMEND AGENDA

David Toumey made a motion to amend the agenda to delete item 7 (a). The motion was seconded by Lyndia Bradley, approved by the Trustees 4-0.

APPROVAL OF MINUTES

The Board reviewed the minutes of the meetings held August 4, 2011, September 8, 2011 and October 17, 2011. David Toumey made a motion to approve the minutes of the three meetings. Lyndia Bradley seconded the motion, approved by the Trustees 4-0.

Michael Urraro arrived at the meeting.

CUSTODIAN REPORT

Leta Chaney appeared before the Board on behalf of Salem Trust Company. She advised that there are no issues regarding the processing of claims and pension payments. Linda Runkle informed the Board that Salem Trust Company recently requested a verification of all pension payments, and advised the Board that a review would be time consuming and unduly burdensome.

INVESTMENT MANAGER REPORT: PENN CAPITAL MANAGEMENT

John Musser and Joseph Maguire appeared before the Board on behalf of Penn Capital Management to provide a report on the performance of the small to mid-cap equity portfolio for the quarter ending September 30, 2011. Mr. Musser reported that there have been no personnel changes, and that currently over $1.1 billion dollars is under management in this strategy. Mr. Maguire advised that Penn Capital Management under performed the benchmark for the quarter and for the calendar year. He explained that Penn out performs during a recovery, and reported that the company needs to do a better job managing through a crisis event. He advised that October was a positive month with a return of 15%. Jeff Swanson explained that he has placed Penn under review, but that now is not the appropriate time to change managers. He recommended that no changes be made at this time.

INVESTMENT CONSULTANT REPORT

Jeff Swanson appeared before the Board on behalf of Southeastern Advisory Services to provide a report on performance of the portfolio for the quarter ending September 30, 2011. He reported that the portfolio experienced a 10% loss for the quarter, and explained that the quarter was very challenging and volatile. He advised that the return for the fiscal year ending September 30, 2011 was -0.7%

Mr. Swanson explained that the investment in American Core Realty has been funded, and has been a positive addition to the portfolio.

Mr. Swanson reviewed the performance of each of the investment managers in detail. He highlighted the positive performance of Sawgrass Asset Management,

and advised that after three quarters of performance above the benchmark, they are no longer under review status. He reported that ICC Capital Management under performed for the past two quarters. Mr. Swanson advised that CS McKee and Tradewinds Global All-Cap have been positive additions to the portfolio.

ATTORNEY REPORT

Lee Dehner recommended that issues regarding accrued sick and vacation days for pension purposes be resolved in collective bargaining negotiations. He provided the Board with two memoranda regarding the implementation of Senate Bill 1128.

Mr. Dehner advised that the new legislative session will commence in January, and that one pension reform bill has already been pre-filed.

David Toumey left the meeting.

ADMINISTRATIVE REPORT

The Trustees reviewed the disbursements and benefit approvals provided by the Administrator for review. Lyndia Bradley made a motion to approve the disbursements and benefit approvals as presented. Michael Urraro seconded the motion, approved by the Trustees 4-0.

The Trustees reviewed the proposed schedule of meeting dates for 2012. Lyndia Bradley made a motion to approve the dates: February 2, May 3, August 2, and November 1, 2012. The motion was seconded by Christopher Ellis, approved by the Trustees, 4-0.

Linda Runkle advised that the Board’s fiduciary liability insurance coverage expires on December 31, 2011. She explained that the current carrier, Travelers Insurance Company, has declined to renew the policy, and a quote from Hudson Insurance Company is expected to arrive soon. Michael Urraro made a motion to authorize Ms. Runkle to bind coverage with Hudson Insurance Company if the quote is within a reasonable range of the current insurance cost. The motion was seconded by Lyndia Bradley, approved by the Trustees 4-0.

OTHER BUSINESS

Paul Blanchard requested that the Board provide comments on the form utilized for the election of retirement benefit. Ms. Runkle will provide a copy of the form to the Board, and will then forward Board comments to Mr. Dehner.

SCHEDULE NEXT MEETING

With there being no further business and the next quarterly meeting scheduled for February, 2012, the meeting adjourned at 10:10 A.M.

Respectfully submitted,

Lyndia Bradley, Secretary

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