MINUTES OF THE CITY OF SARASOTA GENERAL EMPLOYEES' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF JUNE 15, 2020. VIA TELECONFERENCE, which is allowable under Executive Order No. 20-69 issued by Governor DeSantis on March 20, 2020 Present: Chair Ryan Chapdelain, Vice Chair Susan Blake, Secretary Shayla Griggs, Treasurer Kelly Strickland, Trustee Kari McVaugh, Trustee Mark Nicholas, and' Trustee Robert Reardon. Others: Attorney Scott Christiansen, Pension Plans Administrator Debra Martin, and Pension Specialist Peter Gottlieb. Absent: None 1. CALL MEETING TO ORDER: Chair Chapdelain called the General Employee's Pension Plan Board of Trustees Regular Meeting of June 15, 2020 to order at 8:31 a.m. 2. PLEDGE OF CIVILITY: Chair Chapdelain stated for the record, "We may disagree, but we will be respectful to one another. We will direct all comments to issues, and we will not engage in personal attacks.' 3. ROLL CALL: Secretary Griggs conducted the Board roll call. Chair Chapdelain and Secretary Griggs appeared in person. Vice Chair Blake, Treasurer Strickland, Trustee McVaugh, Trustee Nicholas, and Trustee Reardon appeared telephonically. Also appearing telephonically were Attorney Scott Christiansen and Pension Plan Administrator Debra Martin. Pension Specialist Peter Gottlieb appeared in person. Secretary Griggs asked Pension Plan Administrator Martin to perform all roll call votes for this meeting. Attorney Christiansen and Chair Chapdelain asked participants to state their name before commenting or making a motion. 4. PUBLIC INPUT: None. 5. NEW BUSINESS: 5.1 Presentation and Discussion Re: Gabriel, Roeder, Smith & Company Supplemental Actuarial Valuation Report: FRS Mortality Rate. Presenter(s): Pete Strong, FSA, EA, MAAA, FCA, Senior Consultant and Actuary, Gabriel, Roeder, Smith & Company via Teleconference. Mr. Strong came before the Board telephonically and introduced himself. Mr. Strong stated that the Florida Retirement System (FRS) issued revised mortality rate tables in its July 1, Book 1 Page 197 06-15-2020 8:30 a.m. Book 1 Page 198 06-15-2020 8:30 a.m. 2019 valuation which decrease projected cost to the Plan. Mr. Strong advised the Board that, because it is a closed plan, it should continue to reduce the assumed rate of investment return to 6% by the time all members are retired. By recognizing the revised mortality tables, Mr. Strong offered the following projections of how various reductions in the ARR effective September 30, 2020 would change employer contribution requirements effective September 30, 2022: Not changing the ARR in conjunction with implementing the new FRS mortality tables would reduce the employer contribution requirement by approximately $485,000. Reducing the ARR in conjunction with mplementing the new FRS mortality tables by 10 basis points would reduce the employer contribution requirement by approximately $270,000. Mr. Strong stated that actual investment returns would also have an effect on contribution requirements, and stated that the Board would need to advise of any change in its ARR by November or December 2020 for GRS to begin its valuation of the Plan for the fiscal year ending September 30, 2020. Mr. Strong noted that the City of Sarasota Police Officers' Pension Plan, which is an open plan, applied its cost savings from the revised tables to reduce its ARR in a cost neutral and offsetting manner; he recommends all his clients reduce their ARRs by conservative amounts based on the revised mortality tables. The Board discussed reducing its declared ARR now versus delaying a declaration until a later date to obtain more budget and investment performance information. Treasurer Strickland made a motion to table a decision to change the expected rate of return until the Board's October 19, 2020 meeting. Vice Chair Blake seconded the motion. The motion carried unanimously (7-0). 6. APPROVAL OF MINUTES: 6.1 Approval Re: Minutes of the General Employees' Pension Plan Board of Trustees Regular Meeting of January 24, 2020. Presenter(s): Chair Chapdelain. Chair Chapdelain asked for a status report on the Green Dot litigation. Attorney Christiansen stated that he was advised other entities, which had larger out-of-pocket claim amounts, had applied to be lead plaintiff, and the Plan is not involved in that litigation. Vice Chair Blake asked for her absence from the January 24, 2020 meeting to be excused. Trustee McVaugh made a motion to accept the minutes from the January 24, 2020 meeting. Trustee Nicholas seconded the motion. The motion carried unanimously (7-0). Treasurer Strickland made a motion to excuse Vice Chair Blake from its January 24, 2020 meeting. Trustee McVaugh seconded the motion. The motion carried unanimously (7-0). 7. BOARD OF TRUSTEE REPORTS: 7.1. Presentation and Discussion Re: Highlights of Pension Activity for 2019. Presenter(s): Secretary Griggs. Secretary Griggs presented the Highlights of Pension Activity for 2019. The Board accepted the report on consensus. 7.2. Presentation and Discussion Re: Treasurer's Report for the period ending September 30, 2019. Presenter(s): Treasurer Strickland via teleconference. Treasurer Strickland presented the Treasurer's Report which compared the fiscal years ending September 30, 2019 and September 30, 2018. The Board accepted the report on consensus. 7.3. Presentation and Discussion Re: Annual Board Report for 2019. Presenter(s): Secretary Griggs. Secretary Griggs presented the Annual Board Report for 2019, which was provided to the City of Sarasota Commission on March 16, 2020, and is presented to the Board now for information. The Board accepted the report on consensus. 7.4. Presentation and Discussion Re: Proposed Annual Budget for Fiscal Year 2020-2021. Presenter(s): Secretary Griggs. Secretary Griggs presented the Proposed Annual Budget for Fiscal Year 2020-2021 of administrative expenses. Secretary Griggs stated that the proposed budget was a responsible and accountable budget. Pension Plan Administrator Martin clarified the Personnel Services amount represented a full staff of 4 persons, whose expenses are shared with other pension boards. Vice Chair Blake made a motion to accept the Proposed Annual Budget for Fiscal Year 2020-2021. Trustee McVaugh seconded the motion. The motion carried unanimously (7-0). 8. APPROVAL OF RETIREMENT REQUESTIS): 8.1. Approval Re: Early Retirement Request of Joyce Williams. Presenter(s): Debra Martin, Pension Plans Administrator via teleconference. Pension Plan Administrator Martin stated that Ms. Williams is 61 years old, has 17.38 years of service time, and requests a lump sum payment as an early benefit. Trustee McVaugh made a motion to accept Ms. William's retirement request; Treasurer Strickland seconded the motion. The motion carried unanimously (7-0). 8.2. Approval Re: DROP Retirement Request of Terry Ruthruff. Presenter(s): Debra Martin, Pension Plans Administrator via teleconference. Pension Plan Administrator Martin stated that Mr. Ruthruff is requests a normal DROP retirement; he is 65 years old, has 19.7 years of service time, and has selected the option to change his joint annuitant at 100%. Book 1 Page 199 06-15-2020 8:30 a.m. Book 1 Page 200 06-15-2020 8:30 a.m. Trustee McVaugh made a motion to approve Mr. Ruthruff's retirement request; Vice Chair Blake seconded the motion. The motion carried unanimously (7-0). 8.3. Approval Re: Early Retirement Request of Madelia Felder. Presenter(s): Debra Martin, Pension Plans Administrator via teleconference. Pension Plan Administrator Martin stated that Ms. Felder is 57 years old, has 16.69 years of service time, and requests al lump sum payment of her accrued pension benefit. Vice Chair Blake motioned to accept Ms. Felder's retirement request; Trustee Nicholas seconded the motion. The motion carried unanimously (7-0). 8.4. Approval Re: DROP Retirement Request of Matthew Bartlett Presenter(s): Debra Martin, Pension Plans Administrator via teleconference. Attorney Christiansen asked if lump sum payments are computed or checked by the Plan's actuary. Pension Plan Administrator Martin stated that the Plan uses actuarial tables provided by the actuary to compute lump sum amounts and sends computations to the actuary for verification when it suspected to be in conflict with IRS section 415. Plan Administrator Martin further assured Attorney Christiansen that Pension Administration has implemented stronger internal reviews and controls within the last 18 months to ensure benefit computations are performed in accordance with the Plan. Pension Plan Administrator Martin stated that Mr. Bartlett is 56 years old, requests a normal retirement to enter the DROP program; he has 30.05 years of service time, and selects the lifetime only option. Trustee McVaugh motioned to accept Mr. Bartlett's retirement request; Trustee Nicholas seconded the motion. The motion carried unanimously (7-0). 8.5. Approval Re: Early Retirement Request of Deborah Mains. Presenter(s): Debra Martin, Pension Plans Administrator via teleconference. Pension Plan Administrator Martin stated that Ms. Mains is 58 years old, has 15.03 years of service time, and selected the option to change her joint annuitant at a 50% level of payment. Trustee McVaugh motioned to accept Ms. Main's retirement request; Trustee Nicholas seconded the motion. The motion carried unanimously (7-0). 9. INVESTMENT PERFORMANCE REVIEW: Chair Chapdelain asked presenters to limit their presentations to 10 minutes due to the length of the agenda. 9.1. Presentation and Discussion Re: Franklin Templeton Quarterly Performance Review as of March 31, 2020. Presenter(s): Brian Brenneman, Vice President, Senior Adviser Consultant, Andrew Burkley, Vice President, Institutional Portfolio Manager, Franklin Templeton via teleconference. Mr. Burkley came before the Board telephonically and introduced himself. Secretary Griggs left Chambers at 9:08 a.m. and returned at 9:12 a.m. Mr. Burkley provided a brief institutional and operational overview in the context of remote working during the pandemic. He discussed Franklin Templeton's investment strategy, allocation, and benchmark performance. Mr. Burkley stated that year-to-date through May 31, 2020, the Plan's portfolio is down 17.5%, which is below the primary benchmark but well above the value benchmark at 22.3%. He discussed positive and negative contributing stocks, sectors, and regions, the rationale for its allocation weightings, and his outlook for future performance and strategy. Mr. Burkley discussed being over-weighted in energy compared to the index. Scott Owens of Graystone Consulting appeared before the Board telephonically and introduced himself. Mr. Owens asked Mr. Burkley to address the performances of value versus growth investments, and his predictioni fort the future. Mr. Burkley discussed historical performance differences, characteristics of each index, as well as strategies fori investing in each. Compared to the value and blended indexes on a year-to-date basis through May 31, 2020, Mr. Burkley stated that the Plan portfolio is down 17.5%, the MSCI All Country World ex-US primary benchmark is down 14.7%, and the value index is down 22.3%. Mr. Burkley explained that the portfolio under management has historically underperformed compared to the value index, however Franklin Templeton prefers to measure performance using the primary benchmark index because Franklin Templeton has a broader definition than the value index. Mr. Burkley noted Franklin Templeton's Global Equity Group has a new Chief Investment Officer, Alan Bartlett, who has changed its research strategies for identifying different investment opportunities and recommendations, which has expanded the traditional criteria for value investments, and the benefits for which have begun to be seen. The Board thanked Mr. Burkley for his presentation. 9.2. Presentation and Discussion Re: Renaissance Investment Management Quarterly Performance Review as of March 31, 2020. Presenter(s): Joe G. Bruening, Senior Partner, Portfolio Manager, Renaissance Investment Management via teleconference. Mr. Bruening came before the Board telephoniçally and introduced himself. Mr. Bruening explained there have been no institutional changes since it last appeared before the Board and discussed Renaissance's investment philosophy and experience through various market cycles. He noted the Plan's overall portfolio performance, sector performance, and weighting; Mr. Bruening predicted volatility and an inconsistent, "W" shaped recovery from the economic conditions resulting from the COVID-19 pandemic. Mr. Bruening expressed confidence in emerging markets, and noted the Plan holds near its maximum allocation in those areas. Mr. Bruening stated that Renaissance's strategy blends value and growth strategies, and believes the portfolio is well positioned for a market which favors value investing through the anticipated economic recovery. The Board thanked Mr. Bruening for his presentation. 9.3. Presentation and Discussion Re: HGK Asset Management Quarterly Performance Review as of March 31, 2020. Presenter(s): Matthew Witschel, Director, National Accounts, Michael Pendergast, CFA, CEO, CIO, and Portfolio Manager, HGK Asset Management via teleconference. Book 1 Page 201 06-15-2020 8:30 a.m. Book 1 Page 202 06-15-2020 8:30 a.m. Mr. Witschel came before the Board telephonically and introduced himself. Mr. Witschel gave an overview of HGK's presentation, investment philosophy and strategy, and the Plan's portfolio performance since inception, the first quarter of calendar year 2020, and calendar year to date. Mr. Witschel reminded the Board that the portfolio's worst performance since inception in April 2013, according to the Russell 1000 Value benchmark, was in 2015 due to energy exposure which causes general relative underperformance; since 2015, he asserted HKG's performance to benchmark has been very good. Mr. Pendergast came before the Board elephonically and introduced himself. Mr. Pendergast discussed the Plan's holdings and noted that the worst performing sectors in the Plan's portfolio during the first quarter of 2020 had performed significantly better from April 1, 2020 to date on absolute and relative bases; accordingly, they will emphasize the portfolio on cyclically oriented sectors in the value space as the market and economy improve. He explained that HGK's large cap value portfolio characteristics, investment strategies, and rational for sector positioning and weighting. Mr. Pendergast provided analyses of the market and economy during thei first quarter and his expectations for the near future, why value stocks have performed well relative to quality, which is synonymous to growth, in the current market, and HGK's rational for confidence in their process. Trustee Reardon expressed concern for having 20% of the portfolio allocated to financials considering anticipated continuation of low interest rates and asked how banks generate income at zero interest rates. Mr. Pendergast stated that, first, lending should accelerate during recoveries which benefits the pricing and spread, which in tum generates bank earnings. Second, Mr. Pendergast explained that valuations of the banks held in the Plan's portfolio are selling at close to book value, if not tangible book value, which has historically been a level bottom for valuation. Third, Mr. Pendergast stated that, generally, required annual stress testing demonstrates banks have their highest capital adequacy level, and are offering higher dividends yields in a low yield environment. As such, Mr. Pendergast believed the banking system was in better health from a capital standpoint and may be slightly underweighted in the portfolio compared to more attractive sectors. Mr. Pendergast also noted the portfolio's financial sector includes property and casualty insurance, and the banking subsector includes money center banks, regional banks, and some hybrid financial services companies. The Board thanked Mr. Witschel and Mr. Pendergast for their presentation. 9.4. Presentation and Discussion Re: Graystone Consulting, Quarterly Performance Review as of March 31, 2020. Presenter(s): Scott Owens, CFA, CIMA, Associate Vice President, Institutional Consultant and Andy Mclivaine, Institutional Consultant, Graystone Consulting via teleconference. Mr. MclIvaine came before the Board telephonically and introduced himself. Mr. MclIvaine provided an overview of Graystone Consulting's presentations. Secretary Griggs exited Chambers at 10:13 a.m. and returned at 10:15 a.m. Mr. Owens discussed the historic market and economic events during the calendar year 2020 to date; he predicted volatility and unpredictability, during which time he believes investors will seek security and lower risk levels, until stability returns. He stated that while the Plan's entire portfolio during the quarter ending March 31, 2020 lost 16.97% compared to the policy index which lost 18.82%, in the second quarter-to-date, from April 1, 2020 through Friday, June 12, 2020, the portfolio balance increased to $147,382,288. Mr. Owens explained that the only holding which was not in compliance with allocation ranges in the investment policy statement (IPS) as of March 31, 2020, has since come into compliance as the market improved. Mr. Owens discussed the executive summary for each fund, noting in summation that, other than master limited partnerships (MLPs), thel Plan's non-correlated investments performed as expected to preserve Plan asset values during the market's recent downturn. He had no fund recommendations at this time. 10. UNFINISHED BUSINESS: 10.1. Presentation and Discussion Re: Graystone Consulting, Global Listed Infrastructure. Presenter(s): Scott Owens, CFA, CIMA, Associate Vice President, Institutional Consultant and Andy MclIvaine, Institutional Consultant, Graystone Consulting. Mr. Owens gave an overview of infrastructure investments. He explained that it may be an opportune time to consider investment in infrastructure considering the general need for infrastructure projects. He explained the two factors which have negative impacts on infrastructure investments, economic down-turns and legislative reactions, have both occurred due to the COVID-19 pandemic. Mr. Owens discussed the types of entities the Plan could invest in and explained any Plan investment would be in companies which were listed and traded on public exchanges and have full liquidity. Mr. Owens explained that returns on infrastructure investments do not correlate with those of equity investments but are comparable, which diversifies a portfolio. Mr. Owens stated that because the Plan's IPS specifically allows for allocation in master limited partnerships (MLPs) the Board would need to change the IPS to allow investment in infrastructure and wait 31 days to begin purchasing infrastructure investments; Attorney Christiansen advised that the Plan is prohibited from investing in private placements or other restricted securities, but did not have any other specific prohibitions in ordinance, although the Board would still need to amend the IPS. 10.2. Presentation and Discussion Re: Graystone Consulting, Asset Allocation Study. Presenter(s): Scott Owens, CFA, CIMA, Associate Vice President, Institutional Consultant and Andy MclIvaine, Institutional Consultant, Graystone Consulting via teleconference. Mr. Owens explained that the funds for the Plan's investment in infrastructure would come from the assets currently held in MLPs, and that reallocating from MLPS to infrastructure would not change the Plan's long-term strategy. Mr. Owens stated that the Plan currently has 1.8% of its portfolio in MLPs with a target allocation of 5% and range from 0% 7%; he suggested thel Plan could liquidate its MLP holdings and rebalance the portfolio to include 5% allocation to infrastructure. Attorney Christiansen asked if Graystone Consulting advises other pension plans that invest in infrastructure, and Mr. Owens stated that he manages investments for other plans which have nfrastructure investments, including the City of Sarasota Firefighters' Pension Plan. Trustee Reardon made a motion to liquidate the Plan assets in MLPs and hold the proceeds in cash. Vice Chair Blake seconded the motion. The motion carried unanimously (7-0). Mr. Owens discussed the Infrastructure Summary Search, aspects of Cohen & Steers, Lazard Global Listed Infrastructure, and MainStay CBRE, including the respective investment strategies, holdings, performances, and risk versus return analyses relative to the applicable benchmark, the DJ Brookfield Glb Infra Comp TR. Mr. Owens compared Cohen & Steers and MainStay CBRE, and that of the two, he believed Cohen & Steers is superior with longer contract timeframes; he recommended the Board chose between Cohen & Steers and Lazard, noting Lazard appears overweighted in Non-U.S. Equity because Lazard avoids investments in commodities, whereas Cohen & Steers and MainStay CBRE both have allocations for MLPs, which is a subset of infrastructure. Secretary Griggs left Chambers at 11:12 a.m., and returned at 11:16 a.m. Mr. Owens believed Cohen & Steers would have greater returns in an up-market and Lazard would protect assets in a down-market. He further clarified that both Cohen & Steers and Lazard would generally have the same holdings, however Lazard does not contain MLPS. He also stated that Lazard is a mutual fund investment and it would sign a letter of fiduciary responsibility. Book 1 Page 203 06-15-2020 8:30 a.m. Book 1 Page 204 06-15-2020 8:30 a.m. Attorney Christiansen advised the Board regarding the process to change the asset class on the Plan's IPS from MLPS toi infrastructure, and noted that MLPS are a subset of infrastructure; Attorney Christiansen explained that after the Board executes the IPS and provides it to the City, the Plan would need to wait 31 days to begin investing in the infrastructure asset class. Trustee McVaugh made a motion to cancel MLPs and add infrastructure on the IPS and authorize the Board Chair to sign the IPS. Trustee Reardon seconded the motion. The motion carried unanimously (7-0). The Board discussed the process and timeframe to select fund managers. Trustee Reardon made a motion to obtain additional information and presentations from Lazard and Cohen & Steers at the Board's July 13, 2020 meeting. Trustee McVaugh seconded the motion. The motion carried unanimously (7-0). Mr. Owens stated he would contact Lazard, and Cohen & Steers to request presentations and invite them to the next meeting. The Board thanked Mr. Owens and Mr. Mcllvaine. Attorney Christiansen asked Mr. Owens for a recommendation of a reasonable expected rate of return. Mr. Owens stated 6.9% would be at the high end, and 6.8%, as currently stated, is reasonable for the short, intermediate, and long term. The Board noted with consensus that there is no objection to presenters appearing telephonically at the July 2020 meeting. 11. NEW BUSINESS: 11.1. Presentation and Discussion Re: Mauldin & Jenkins, LLC Independent Auditors Report for the Fiscal Year Ending September 30, 2019. Presenter(s): Alison Wester, CPA, Partner, Mauldin & Jenkins, LLC. via teleconference. Ms. Wester appeared before the Board telephonically and introduced herself. Secretary Griggs left Chambers at 11:30 a.m., and returned at 11:33 a.m. Ms. Wester presented the Independent Auditors Report for the Fiscal Year Ending September 30, 2019 which contained the Financial Statements for the Fiscal Year Ended September 30, 2019, and the Auditor's Discussion and Analysis. Treasurer Strickland made a motion to approve the Independent Auditor's Report for the Fiscal Year Ending September 30, 2019. Trustee McVaugh seconded the motion. The motion carried unanimously (7-0). The Board thanked Ms. Wester for her presentation. 11.2. Presentation and Discussion Re: Declaration of Expected Rate of Return. Presenter(s): Attorney Scott Christiansen, Esq., Christiansen and Dehner, P.A. via teleconference. Attorney Christiansen advised that Florida law requires, when a board approves an actuarial valuation as the Board did at its January 2020 meeting, the board must also declare an expected rate of return. Attorney Christiansen clarified this declaration does not change the assumed rate of return in the Plan's valuation. Treasurer Strickland made a motion, based on the advice oft the Board's consultant, to expect to receive a 6.8% investment return for the next year, the next several years, and for the long term thereafter. Vice Chair Blake seconded the motion. The motion carried unanimously (7-0). 11.3. Presentation and Discussion Re: Kessler Topaz Meltzer & Check, LLP Client Fee Addendum. Presenter(s): Jonathan Davidson, Esq., Kessler Topaz Meltzer & Check, LLP, via teleconference. Trustee Nicholas requested to be excused from the balance of the meeting due to an emergency. On consensus the Board approved. Trustee Nicholas disconnected from the meeting at 11:45 a.m. Attorney Christiansen affirmed the Board still had a quorum. Mr. Davidson appeared telephonically before the Board and introduced himself. Mr. Davidson explained that Kessler Topaz Meltzer & Check (KTMC) monitors the Plan's global investment portfolio for losses and lawsuits, performs domestic and international securities litigation, and files claims in securities class action settlements and judgments on behalf of the Plan. Mr. Davidson noted that he had an additional item for the Board after the fee addendum. Mr. Davidson discussed the contents of the KTMC's fee addendum letter and expressed his sensitivity to the Plan considering it recently engaged with KTMC. Mr. Davidson explained that because some of KTMC's clients pay for fund monitoring and claim filing and some do not, yet KTMC represent to courts that it receives nothing of value for its services, the two classes of clients creates a potential liability for KTMC which would be rectified by charging a contingency fee to all clients. Mr. Davidson assured the Board that KTMC it is not attempting to monetize or profit from its relationship with the Plan, and has no intention of increasing the 4% contingency fee in the future. Mr. Davison stated that he believes KTMC's contingency fee is significantly less than that other providers of the same service. Attorney Christiansen clarified the Plan is not making any payments to KTMC, and that the contingency fee is a portion paid only when recoveries are made on claims filed on or after January 1, 2020, and that while the Plan has another firm which performs fund monitoring, only KTMC is currently filing claims for recovery on the Plan's behalf. Trustee Reardon made a motion to approve KTMC's fee addendum. The motion expired for lack of second. Mr. Davidson and Attorney Christiansen explained that, prior to using KTMC to file claims, the Board's custodial bank, Salem Trust, performed that function by outsourcing it to Chicago Clearing; Salem Trust via Chicago Clearing, and charged approximately 12% contingency fee out of any recovery. Treasurer Strickland asked for clarification of KTMC's function considering it has another firm which represents the Plan in litigation. Mr. Davidson explained KTMC filed 8 claims for the Plan in 2019, and 11 year-to-date in 2020, which are waiting distribution. Attorney Christiansen further clarified that KTMC files claims on the Plan's behalf in any case, even if KTMC does not represent the Plan in a specific case. Mr. Davidson also explained that the contingency fee for filing for recovery is separate from any award to counsel for lead plaintiff in a class action. Vice Chair Blake made a motion to accept the addendum to KTMC's contract with the Plan. Trustee McVaugh seconded the motion. The motion passed unanimously (6-0). Mr. Davidson advised the Board that KTMC had received a report from Salem Trust which showed both KTMC and Salem Trust had filed claims in January 2020 on 2 cases, and that when a claims administrator reçeives Book 1 Page 205 06-15-2020 8:30 a.m. Book 1 Page 206 06-15-2020 8:30 a.m. duplicate claims, it rejects all claims as duplicates and deficient. Mr. Davidson asked the Board to consider accepting KTMC's claims as primary and directing Salem Trust to mark or reject its claims as duplicates. Attorney Christiansen recommended approving KTMC's proposal. Vice Chair Blake made a motion to have Salem Trust's claims filed in January 2020 marked as duplicates and accept KTMC's claims as primary. Trustee McVaugh seconded the motion. The motion passed unanimously (6-0). The Board thanked Mr. Davidson for his presentation. 12. ATTORNEY MATTERS: Attorney Christiansen reminded the Board that Trustee McVaugh's term expires June 30, 2020, and her seat requires an election; Pension Plan Administrator Martin advised the Board that election forms for Trustee McVaugh's seat were sent out to the membership already. Attorney Christiansen stated that the Board must select officers in the July 2020 meeting and asked it be added as an agenda item. Attorney Christiansen reminded the Board that financial disclosure forms are due to be filed by July 1, 2020 to avoid incurring any fines. There are no additional legislative requirements to report. Attorney Christiansen advised his firm will be sending new forms package to the Plan to allow for remote notarization in accordance with changes in the law in the prior year. 13. OTHER MATTERS: 13.1. Presentation and Discussion Re: Administrative Expense Budget Analysis. Presenter(s): Debra Martin, Pension Plans Administrator and Lori Boyer, Senior Pension Accountant via teleconference. Pension Plan Administrator Martin presented the Administrative Expense Budget Analysis as of March 31, 2020 for the administrative expense budget approved last year; overall, iti is at 46.7%. Chair Chapdelain stated the July 13, 2020 may require an in-person quorum, and he has a schedule conflict which may preclude his appearance if he is unable to attend via teleconference. Vice Chair Blake advised she could appear in person at the June 13, 2020 meeting. 14. ADJOURN. Chair Chapdelain adjourned the meeting at 12:08 p.m. hal Chair Ryan Chapdelain Secretary Shayla Griggs