MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES MEMBERSHIP MEETING OF MARCH 27, 2025 Present: Chair Johnathan Todd, Vice Chair Ronnie K. Baty, Secretary/Treasurer Shayla Griggs, Trustee Joseph Jody" Hudgins, and Trustee Tyler Rossnagle. Others: Attorney Stuart Kaufman, Pension Plans Administrator Debra Martin, and Pension Specialist Peter Gottlieb. Absent: None. 1. CALL MEETING TO ORDER: Presenter(s): Chair Todd. Chair Todd called the March 27, 2025, membership meeting of the Police Officers' Pension Plan (Plan) Board of Trustees to order at 8:15 a.m. 2. PLEDGE OF ALLEGIANCE: Presenter(s): Secretary/reasurer Griggs. Secretary/Treasurer: Griggs led the Board and meeting attendees in the Pledge of Allegiance. 3. PLEDGE OF CIVILITY: Presenter(s): Chair Todd. Chair Todd stated for the record, We may disagree, but we will be respectful of one another. We will direct all comments to issues. We will not engage in personal attacks.' 4. ROLL CALL: Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin called roll; all trustees were present. 5. PUBLIC INPUT: None. 6. APPROVAL OF MINUTES: 6.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of February 20, 2025. Presenter(s): Chair Todd. Vice Chair Baty made a motion to approve the minutes of the Board's Regular Meeting of February 20, 2025; Trustee Rossnagle seconded the motion. The motion passed unanimously (5-0). 7. BOARD OF TRUSTEE REPORTS: Book 1 Page 448 03-27-2025 8:15 a.m. 7.1. Presentation and Discussion Re: Annual Board Report for 2024. Presenter(s): Secretany/Treasurer Griggs. Secretarylreasurer: Griggs presented the Annual Board Report for 2024 and thanked the Trustees for their exemplary service to the Plan. Trustee Hudgins made a motion to accept the Annual Board Report for 2024; Vice Chair Baty seconded the motion. The motion passed unanimously (5-0). 7.2. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2025 - 2026. Presenter(s): Secretany/reasurer Griggs. SecretaryfTreasurer Griggs presented the Proposed Annual Budget for Fiscal Year 2025 - 2026. To Trustee Hudgins' questions, Pension Plans Administrator Martin advised that the Fiscal Year 2024 - 2025 budget was $300,639, and iti includes the actuarial experience study proposed by Gabriel, Roeder, Smith and Company (GRS). Secretary/Treasurer: Griggs added that staff salaries also increased. Trustee Hudgins made a motion to approve the Annual Budget for Fiscal Year 2025 - 2026; Vice Chair Baty seconded the motion. The motion passed unanimously (5-0). 8. RETIREMENT REQUESTS: None. 9. INVESTMENT PERFORMANCE REVIEW: 9.1. Presentation and Discussion Re Lazard Asset Management, Performance Report for Period Ending December 31, 2024. Presenter(s): Ben Young, Vice President, Lazard Asset Management. Ben Young of Lazard Asset Management (Lazard) appeared before the Board and intrcduced himself and his presentation. Mr. Young reviewed the page of the materials titled Lazard Global Listed Infrastructure (USD Hedge); he explained that Lazard considers itself a deep value investor and it maintains a constant passive hedge to remove the volatility associated with converting into and out of local currencies. He asserted that currency hedge reduces volatility by 1/3 as compared to an un-hedged version of the portfolio. He reviewed the types of companies Lazard invests in, as listed on the page titled Not All Infrastructure is Created Equal, noting that it seeks companies with consistent, predictable, and even regulated returns, in industries with wide barriers to entry; Lazard avoids volatile companies, such as those which are sensitive to energy prices, master limited partnerships, and some types of utility companies. Turning to the Portfolio by Country and Sector page, Mr. Young reviewed the geographic allocation. The allocation to the United States is significantly underweight relative to its benchmark which ranges from 50% to 60%; the portfolio is underweight as it avoids mâny of the energy-sensitive utilities which are prevalent in the benchmark. The portfolio's exposure to utilities comes predominantly from Europe. He added that the portfolio is holding approximately 7.5% in cash while short term interest rates are high, and it waits for infrastructure valuations to decline and become more attractive. He explained that Lazard has a fondness for publicly traded Book 1 Page 449 03-27-2025 8:15 a.m. airports because airline usage fees and vendor usage fees generate stable and consistent income. Trustee Hudgins and Mr. Young discussed the portfolio's allocation to Europe as the United States levies tariffs against other parts of the world. Mr. Young asserted that the infrastructure companies in the portfolio will not be adversely affected by tariffs, and therefore Lazard continues to expect the same 8% to 10% return itt typically seeks. Referencing the Stock Contribution Top Contributors and Detractors, Mr. Young cited SES and Eutelsat Communications, both French satellite companies, which were down in 2024, but have rebounded significantly in the last month; he asserted their upward drives have been a result of the realizations by European countries that they will each need to increase spending on military and defense as the United States withdraws. Mr. Young reviewed the Performance Summary page of the materials and focused his commentary on the 1- year return compared to the Global Infrastructure Index. Artificial Intelligence (AI) has dominated world economies, and the energy demands of Al data centers have been sufficiently substantial to drive up values of utility companies; in 2024, the sector was up approximately 25% and narrowly outpaçed the S&P 500. Because Lazard tends to favor energy distributors over energy producers, the portfolio lagged its index over the 1-year timeframe. He discussed some of the specific portfolio holdings, noting that while it leans away from energy producers, it does hold some in the portfolio, such as Ferrovial. Mr. Young concluded his remarks with a market outlook. The page titled Lazard Global Listed Infrastructure VS MSCI World shows the portfolio's price to earnings ratio compared to those of global equities. He noted that the portfolio is currently the least expensive in the last 15 years, making it an attractive component of a broad and diversified portfolio. To Trustee Hudgins' question, Pension Plans Administrator Martin advised that the Plan has approximately $9 million invested with Lazard. The Board had no further questions and thanked Mr. Young for his presentation. 10. UNFINISHED BUSINESS: 10.1. Presentation and Discussion Re: Gabriel, Roeder, Smith & Company Engagement Letter for Experience Study Report. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin advised that, as requested by the Board, GRS has provided an engagement letter which explains its proposed fee and timing for the preparation of a comprehensive experience study for the Plan. The letter notes that the proposed fee will not exceed $15,000, and the Plan may remit half of the payment in both the current and subsequent fiscal years. A discussion amongst the Board, Attorney Kaufman, and Pension Plans Administrator Martin ensued. The Plan does not have GRS's hourly rate, however $450 - $600 is an industry standard. Attomey Kaufman will review the engagement letter, as well as GRS's contract with the Plan, for any required updates as required by Florida law. By consensus, the Board agreed to direct Attorney Kaufman to review the engagement letter and GRS's contract for updates as required by law and to resolve any amendments with GRS. 11. NEW BUSINESS: None. 12. ATTORNEY MATTERS: Attorney Kaufman advised he is reviewing the Summary Plan Description, as Florida law requires that to be updated every 2 years. By consensus, the Board approved. Book 1 Page 450 03-27-2025 8:15 a.m. Attorney Kaufman advised that Attorney Tanya Oliver has requested the Board meet to review a supplemental record in the Pangallo matter which will be provided in advance of any continuation of the informal hearing; the Board discussed possible dates on which it could continue the informal hearing. Attorney Kaufman noted that due process requires the full Board to be present at an informal hearing, however Officer Pangallo may waive the requirement to allow an informal hearing with as few as 3 trustees; if a quorum. is physically present at the meeting, Attorney Kaufman advised that the remaining trustees may appear and participate virtually. He anticipated the supplemental informal hearing would take 30 to 60 minutes. Trustee Hudgins advised he will not be present at the April 24, 2025, meeting, Chair Todd expressed preference for the full Board to be present at the continuation. Attorney Kaufman advised he would consult with Attorney Oliver for Officer Pangallo's preference. 13. OTHER MATTERS: 13.1. Presentation and Discussion Re: Administrative Expense Budget for October 1, 2024, through December 31, 2024. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin presented the Administrative Expense Budget for he period listed. She noted that the items with no expenditure are due to the timing of the respective invoices. To Trustee Hudgins' question, Pension Plans Administrator Martin expressed confidence in the budgeted amounts, with the exception of Legal & Judicial services due to the unpredictability of disability requests; she noted that Pension Administration could request budget adjustments if needed. 13.2. Presentation and Discussion Re: Check Register for October 1, 2024, through December 31, 2024. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin presented the check register for the period listed. Payment in check 3072 was the refund of contributions, and payment to the trustee was reimbursement of that trustee' 'si travel expenses. She added that the erratic payments to the City for mail room services were due to the active hurricane season in 2024 which delayed mailouts. To Trustee Hudgins' question, Pension Plans Administrator Martin advised that payment to Fifth Third Bank is for the custodial fees. 13.3. Presentation and Discussion Re: Asset Allocation as of March 17, 2025. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin presented the asset allocation as of March 17, 2025, for the Board's information. The Board had no questions regarding this item. Pension Plans Administrator Martin advised that the Annual Report required by the Bureau of Local Retirement Systems, Division of Retirement for Chapters 175 or 185 defined benefit plans, was timely filed and approved. Trustee Hudgins advised the Board that he will not be available to attend all the calendar year 2025 meetings in person; while he will attempt to attend virtually when he cannot be physically present, he offered to resign his seat should the Board prefer. Chair Todd expressed his confidence in Trustee Hudgins' attendance either in person or virtually; the Board agreed. Book 1 Page 451 03-27-2025 8:15 a.m. 10. ADJOURN. Chair Todd adjourned the meeting at 8:48 a.m. - - Onyo S Chair Johnathan Todd Secrelary/Trglasurer Shayla Griggs Book 1 Page 452 03-27-2025 8:15 a.m.