MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OCTOBER 22, 2021 Present: Chair Demetri Konstantopoulos, Secretary/Treasurer Shayla Griggs, Trustee Ronnie K. Baty, and Trustee Joseph Jody" Hudgins. Others: Attorney Scott Christiansen, Pension Plans Administrator Debra Martin, and Pension Specialist Peter Gottlieb. Absent: Vice Chair Johnathan Todd. 1. CALL MEETING TO ORDER: Presenter(s): Chair Konstantopoulos. Chair Konstantopoulos called the regular meeting of the Police Officers' Pension Plan (Plan) Board of Trustees to order at 8:15 a.m. 2. PLEDGE OF CIVILITY: Presenter(s): Chair Konstantopoulos. Chair Konstantopoulos 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. 3. ROLL CALL: Presenter: Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin called roll; Vice Chair Todd was absent. 4. PUBLIC INPUT: None. 5. APPROVAL OF MINUTES: 5.1. Approval Re: Minutes of the Police Officers' Pension Plan Board of Trustees Regular Meeting of September 24, 2021. Presenter(s): Chair Konstantopoulos. Trustee Baty made a motion to accept the minutes of the September 24, 2021, meeting; Trustee Hudgins seconded the motion. The motion carried unanimously (4-0). 6. RETIREMENT REQUEST(S): 7. INVESTMENT PERFORMANCE REVIEW: 7.1. Presentation and Discussion Re: BNY Mellon Investment Management, Investment Performance Book 1 Page 247 10-22-2021 8:15 a.m. Book 1 Page 248 10-22-2021 8:15 a.m. Summary for Period Ending September 30, 2021. Presenter(s): William Adams, Sr. Principal, Investment Strategist; Elizabeth McManus, Relationship Manager; BNY Mellon Investment Management. Elizabeth McManus appeared telephonically and introduced herself as well as Mr. Adams, who also appeared telephonically. Ms. McManus discussed BNY Mellon's transition to Newton Investment Management, effective September 1, 2021; Newton would continue to use the same investment strategy it had as BNY Mellon. Mr. Adams discussed the Performance, noting it outperformed its benchmark by 170 basis points gross of fees. In reviewing Active Positioning, he explained the market has been more volatile due to the COVID 19 Delta variant, concerns of inflationary pressures, and the reduction of large-scale government economic stimulus. He believes these are normal market reactions and opined the next market phase will be driven by earnings delivery and prospective earnings growth going forward. He reviewed the Quarterly Sector Attribution, and Portfolio Structure, detailing the Top Five Active Over-weights and Top Five Active Under- weights. Secretary Griggs exited the meeting at 8.26 a.m. and returned at 8.27 a.m. Mr. Adams concluded his discussion with the Portfolio Holdings, noting the price-to-earnings ratio for the portfolio and stated that it aims to be al less expensive alternative to the Russell 1000 Value and the growth- dominated S&P 500 by holding undervalued stocks with better earnings recovery prospects from the broader market. Mr. Adams provided a market outlook. Larry Cole of Burgess Chambers & Associates appeared before the Board telephonically and introduced himself. Mr. Cole asked Mr. Adams if there were any changes to the investment team or strategy with the transition to Newton Investments. Mr. Adams stated that the only change is that the investment team has additional research resources than it had under BNY Mellon. Mr. Cole advised the Board he has a preliminary report which has Detter-than-Denchmark performance over 1, 3, and 5 years. Chair Konstantopoulos thanked Mr. Adams and Ms. McManus for their presentation. 8. UNFINISHED BUSINESS: 9. NEW BUSINESS: 9.1. Presentation and Discussion Re: Large Cap Growth Manager Search, Baron Capital. Presenter(s): Guy Tartakovsky, VP, Assistant Portfolio Manager; David Kaplan, VP, Institutional Sales; Baron Capital. Mr. Cole reminded the Board that it is interviewing large cap growth managers to invest approximately $26 million currently in the Fidelity Large Cap Growth fund, which is a passively managed index fund. David Kaplan and Guy Tartakovsky appeared before the Board and introduced themselves. Mr. Kaplan explained his and Mr. Tartakovsky's roles at the firm. He stated Mr. Tartakovsky works closely with Alex Umansky who is the Portfolio Manager for this strategy; Mr. Kaplan explained Mr. Umansky was unable to attend today's presentation as he had other commitments. Mr. Kaplan gave a firm overview and history and discussed their research team noting the longevity of its staff. Mr. Tartakovsky discussed Baron's investment philosophy, and explained it is a fundamental, bottom-up investor with an active share of 70% to 80%, has a long-term ownership mindset with a turnover rate in 2020 of 11%, and an average holding time of 9 years. Baron aims to invest in companies which have big ideas and are poised to take advantage of disruptive change, and therefore have significant and long-term growth potential. Another tenant of its philosophy is value; Baron estimates companies' intrinsic values and invests in those which are priced lower yet still have margins of safety. Even if a stock were to become fairly-valued, Baron would continue to hold it as long as the company had conviction in its duration of growth. Next, Baron bases investment decisions on probability and seeks to invest across the probability spectrum while minimizing risk; he noted Baron defines risk as the probability of permanent loss of capital. In that context, Baron is less concerned with relative volatility and more concerned with minimizing risk. It manages risk almost exclusively through the bottom of level, conviction in the company, duration of growth, ability to maintain a competitive advantages without becoming disrupted, and to ensure stability. Mr. Tartakovsky discussed how a company's competitive edge is comprised of information, analytics, behaviors, time arbitrage, and structural components. He explained that Baron's investment process was designed to overcome confirmational and recency biases. Mr. Tartakovsky stated that Baron's 37 research analysts are vertically structured across their respective industries, geographies, and market capitalizations. He lastly discussed idea generation within the investment strategy. Trustee Hudgins and Mr. Kaplan discussed Baron's ownership and structure; Mr. Kaplan explained there are 8 owners, its founder, Ron Baron, remains active in managing the firm, and the firm has no official nepotism policy. Trustee Hudgins observed Baron Capital was not subject to Sarbanes-Oxley regulations, which is a risk for the Board to consider, irrespective of performance. Mr. Kaplan noted the longevity of its employees. Trustee Baty asked Mr. Kaplan and Mr. Tartakovsky to describe Baron Capital using 1 word; both stated, "Collaborative." Mr. Cole explained Burgess Chambers & Associates has worked with Baron in various investment disciplines, and Mr. Baron has been involved in each. An investment contract drawn up by the Board's attorney would include a provision to allow the Board to terminate the contract within 30 days. Mr. Cole also noted the longevity of Baron's staff. At Mr. Cole's request, Mr. Kaplan explained Baron would charge 65 basis points on the first $10 million invested, 55 basis points on the next $10 million, and 50 basis points on any balance thereafter. Mr. Kaplan thanked the Board for its time and noted it has never lost a public plan in Florida. Chair Konstantopoulos thanked Mr. Kaplan and Mr. Tartakovsky for their presentation. 9.2. Presentation and Discussion Re: Large Cap Growth Manager Search, Granite Investment Partners. Presenter(s): Edward S. Han, Principal, Lead Portfolio Manager, Large Cap Equity; Richard A. Passafiume, Principal, Portfolio Specialist; Granite Investment Partners. Mr. Passafiume and Mr. Han appeared before the Board and introduced themselves. Mr. Passafiume explained his and Mr. Han's roles at Granite and presented a firm overview. He explained it is 100% employee owned with 16 principals, of whom 35% are minority and/or female; it has approximately $5 Billion in assets under management across the equity capitalization spectrum with al broad client base. He discussed the Large Cap Equity, how its diverse ownership allows it to focus on managing equity portfolios and serving clients. Its investment team has been stable or growing since inception. He discussed its research and investment process, noting its portfolio managers are also analysts and involved in new idea generation, and many members of their investment team have backgrounds in fixed income investments; this allows them to better understand cashflow and debt structure, and therefore reduce risk. The investment team also has some exposure to mid-cap to find more companies earlier in the growth Book 1 Page 249 10-22-2021 8:15 a.m. Book 1 Page 250 10-22-2021 8:15 a.m. phase. Mr. Passafiume discussed the Large Cap Equity Overview, noting it is currently holding 39 stocks. Mr. Han elaborated on Granite's research process as outlined on pages 9 through 13 of the presentation materials, explaining it typically purchases smaller quantities of stocks initially and gradually increases its holdings over time to confirm its investment thesis against actual performance; further, Granite distributes trade information internally to the investment team sO that information is shared with transparency within the team. He reviewed the Company Lifecycle Matrix, explaining the different attributes of Emerging Growth, Growth, and Growth Reinvented categories, Portfolio Lifecycle Matrix, its Sell Discipline, and portfolio holdings and industry weights. Mr. Passafiume reviewed the portfolio's top 10 holdings and oortfolio characteristics, performance through September 30, 2021, and peer rankings. He explained the principals have significant portions of their personal assets invested with Granite sO that their interests are aligned with their customers'. Trustee Hudgins and Mr. Han discussed cash Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) relative to EBITDA as being a form of reserve liquidity and can that company generate what their income statements state. They discussed PayPal as Granite's second largest holding. At Mr. Cole request, Mr. Passafiume proposed 50 basis points on the first $25 million invested, and 40 basis points the next $25 million. Mr. Passafiume discussed, at Trustee Hudgins' request, Granite's inception resulting from changes at TransAmerica and TransAmerica's parent company, Aegon, in 2008 and 2009. The Board thanked Mr. Passafiume and Mr. Han for their presentation. Mr. Cole explained both Granite and Baron correlate closely to Wells, Barron approximately 91% and Granite 93%, however most large cap growth managers will also be similar. He discussed their upside and downside capture rates and noted Baron shares 3 of its top 10 holdings with Wells, and Granite shares 5 its top ten holdings with Wells. Both Baron and Granite list Amazon, Google, and Facebook in their respective top ten holdings. Mr. Cole reminded the Board it was interviewing large cap growth managers to replace Fidelity's Large Cap Index Fund; while the Fidelity fund performed well due to significant holdings in tech and consumer discretionary sectors, those sectors comprise approximately 60% of its portfolio which is inherently risky in his opinion. Additionally, Granite and Baron both have lower downside capture, which would further de-risk the portfolio. The Board discussed each of the large cap growth managers. Trustee Hudgins noted additional risk associated with privately held firms which are not subject to Sarbanes-Oxley, as well as having a limited number of owners. He expressed preference for Granite due to its methodologies and employee ownership. Trustee Baty and Chair Konstantopoulos similarly expressed preference for Granite due to its transparency and professionalism. Trustee Hudgins made a motion to invest the approximate $26 million currently held in the Fidelity Large Cap Growth Fund into Granite Investment Partners and authorize Attorney Christiansen to draft the appropriate contract. Trustee Baty seconded the motion. The motion carried unanimously (4-0). Secretary/Treasurer: Griggs thanked Trustee Hudgins for his insights and opinions on the subject. Mr. Cole advised he would draft an investment policy addendum and contact Granite. Mr. Cole advised he has a preliminary performance report, and stated for the quarter ending September 30, 2021, the portfolio was up 0.1%, and for the fiscal year it was up 23.7%, versus 19.7% for the benchmark. He does not expect these results to change by more than 1/10%. Trustee Hudgins asked what the current assumed rate of investment rate of return was and noted the performance will significantly reduce the Plan's unfunded liability as well as provide a cushion in the event of a market correction in the coming years. Mr. Cole confirmed it will and noted the gross 4-year average is 12.4% and the gross 5-year average is 12.5%; net would be approximately 1% less. Mr. Cole explained he has heard other plans' actuaries recommended those boards reduce their assumed rate of investment returns, and the Plan's actuary will be presenting to the Board at the December 2021 meeting. Mr. Cole explained the rationale for including performance history when considering the assumed rate of investment return in addition to capital market forecasts. Attorney Christiansen noted the assumed rate of investment return is 6.75%. Mr. Cole confirmed to Attorney Christiansen that the contract with Granite Investment Partners will be a separate contract, and it is not a mutual fund. 9.3. Presentation and Discussion Re: Private Credit Insurance. Presenter(s): Larry Cole, Executive Vice President, Burgess Chambers & Associates. Mr. Cole gave a brief overview of the WhiteHawk Strategy, specifically iti invests in private collateral-based lenders. The borrowers tend to have financial issues and require short-term loans which cannot be obtained from public banks. Typically, loans are shorter in duration with double-digit returns. Because WhiteHawk requires very liquid collateral it can sell the collateral and recover its investment and additional costs in the event of default; Mr. Cole asserted WhiteHawk has never lost money on any of its loans and produced double-digit returns. He believed this could be an appropriate investment in a low interest rate environment. If the Board is interested, Mr. Cole stated representatives from WhiteHawk could present at the December 2021 Board meeting and discuss its strategy in greater detail and decide if and how much the Board would consider investing; he would recommend $3 Million to $5 Million, based on a portfolio size, as of September 30, 2021, of $323.168 million. Al brief discussion ensued. Trustee Hudgins asked, for reporting purposes, how were values determined. Trustee Hudgins stated that as collateral is privately held assets, there are no market disciplines, other than WhiteHawk's internal analysis, to guide valuations. Mr. Cole explained collateral is valued at cost until liquidation. Trustee Hudgins opined on the value of investing in private credit with longer commitment period, versus waiting for interest rates to increase to for fixed income to provide a 2% return while remaining liquid. Mr. Cole noted investing in private credit relies on the fund manager to research and identify investments which are reasonably liquid for the risk, similar to a stock manager identifying reasonable stocks. He noted private credit is riskier than the Board's other investments and less liquid, and the portfolio has been generating good returns, but it may be worth considering for a small portion of the portfolio. Trustee Hudgins noted that the appearance of attempting to increase returns in the current environment Book 1 Page 251 10-22-2021 8:15 a.m. Book 1 Page 252 10-22-2021 8:15 a.m. may have negative consequences. He asked Mr. Cole if there are any investments in jumbo mortgages, which would be a less complicated investment than private credit and less risk. Mr. Cole explained that mortgage investments in rising interest rates may cause loss of principal due to mark-to-market accounting, but he would search for options. Mr. Cole explained the WhiteHawk Strategy fund will close by the end of the calendar year, sO there would be urgency if the Board determined it wanted to invest in it. The Board concluded that, while it seeks out-of-the-DoX solutions, the additional risk associated with private credit is not something it wants to assume at this time. Trustee Hudgins noted the item description should be private credit equity, and the strategy is not related to insurance. 10. ATTORNEY MATTERS: Attorney Christiansen asked if the Summary Plan Description was distributed to the membership; Pension Plans Administrator Martin confirmed it was. Attorney Christiansen noted Pension Letter 2 must be filed with the City Commission upon receipt of Burgess Chambers & Associates' year-end report. 10.1.Presentation and Discussion Re: Continuing Eligibility for Disability Benefits. Presenter(s): Scott Christiansen, Christiansen & Dehner. Attorney Christiansen explained that one of the processes for disability benefits includes periodically confirming a disability pension recipient continues to meet the requirements of being "disabled" as defined by the Plan. He noted the General Employees' Pension Plan ordinances require a person receiving disability benefits to, at their own expense, periodically obtain written certification from a physician affirming the person continues to meet the definition of "disabled," but that the Police Officers' Pension Plan did not contain the same language. He recommends the Board authorize him to draft language to amend the Plan, which would be discussed in greater depth at the next meeting. Trustee Baty asked when that requirement would end; Attorney Christiansen stated he recommended this requirement remain in effect until a member is of normal retirement age as defined by the Plan. Attorney Christiansen noted that it would be highly unlikely for a person who had reached normal retirement age, which is age 50, to be brought back to duty if they no longer met the requirements for being disabled. He stated some plans he works with use age 55, and the Board could allow the requirement to apply until a later age than 50 if it chose to do sO. Trustee Baty asked if there was a service component to the requirement, as a member is eligible for normal retirement benefits at age 50 or when the member earns 25 years of credited service. He asked what would happen if a member was determined to be disabled at 15 years of service and 45 years of age. Attorney Christiansen stated he would recommend tying the requirement to a specific age and not specifically to service. The Board and Attorney Christiansen discussed a scenario where a person who was approved by the Board to receive disability benefits, and subsequently received additional treatment which has enabled the person to satisfactorily perform the duties of a Police Officer. The Board would require the member to undergo an ndependent medical examination which would render a professional medical opinion for the Board to consider. Attorey Christiansen stated he would draft amendment language for the Board to consider. Trustee Baty asked if a member were determined to have been disabled in the line of duty for a period of 10 years and then returned to work; would the member receive service credit for the time served on disability. Attorney Christiansen stated the member would not because they were receiving disability benefits. Trustee Hudgins confirmed any proposed language amending the Plan would be discussed further by the Board as well as be made available to the membership for review and comment before it could be adopted. 11. OTHER MATTERS: Pension Plans Administrator Martin stated that nomination forms for Seat 1, currently held by Vice Chair Todd, were provided to the membership, however Pension Administration has not received any nomination forms to date for this seat. They are due by November 1, 2021. Pension Plans Administrator Martin advised Trustee Hudgins' seat becomes available in January 2022, and the occupant is appointed by the City Commission. 12. ADJORN. Chair Konstantopoulos adjourned the meeting at 10:00 a.m. 2 C - Mg a L CHair Demetri Konstantopoulos SecretaryEeasurer Shayla Griggs Book 1 Page 253 10-22-2021 8:15 a.m. Mr. Cole reviewed the Quarterly Market Summary noting the relatively flat performance was due to declines in September, the Investment Policy Compliance Review noting no compliance issues, and Investment Performance Net, Actual VS. Target Allocation. He asserted the market is performing well due to the amount of available cash due to Fed actions and government stimulus programs and continued lowi interest rates. He noted that, despite the current concerns about inflation, interest rates are still at historically low levels. He reviewed the Asset Allocation and reviewed changes since September 30, 2021, Asset Allocation & Performance - Gross pointing out a 1- year return of 23.7%, which ranks the Plan in the top 15th percentile of approximately 600 public pension funds, ranging in size from multi-billion dollar to $5 million. He had no concerns regarding any of the current fund managers. He reviewed the Asset Allocation & Performance Net, Fiscal Year Rates of Return, and the Total Fund. Mr. Cole stated he may bring information on additional real estate managers to the next meeting for discussion. While the portfolio currently has real estate exposure, he stated he would look for managers which are not as burdened with legacy retail or office space holdings. 10. UNFINISHED BUSINESS: 11. NEW BUSINESS: 11.1. Presentation and Discussion Re: Assumed Rate of Investment Return. Presenter(s): Pete Strong, Consultant and Senior. Actuary, Gabriel Roeder Smith. Mr. Strong of Gabriel Roeder Smith appeared before the Board telephonicaly and introduced himself. Mr. Strong noted the remarkable investment returns over the last year and the Plan's returns are better than most comparable plans. On a market value basis, Mr. Strong estimates the Plan will be fully funded even if the Board were to reduce the investment return assumption for the 2021 Plan valuation. Noting the current assumption rate is 6.75%, he stated that the last time the Plan was fully funded, the assumption rate was over 8%. Based on the current economic environment and circumstances, the 10-year outlook has come down from 6% to the 5% to 5.5% range for a portfolio such as the Plan's. The 20- to 30-year outlook is still in the 6% to 6.25% range but maintains a 5% to 5.5% return over the next 10 years. On an actuarial value basis, the Plan will not be fully funded because the actuarial value basis only recognizes 20% of the current year's returns, but ity will still be closer to fully funded. Mr. Strong recommends reducing the assumed rate ofinvestment return with a goal of reaching 6.25%. He noted investment consultants and actuaries are recommending the Florida Retirement System (FRS) target 6.25% as well; the FRS has not released its valuation however it reduced its assumed rate of return from 7% to 6.8% this year, and future reductions are expected. Mr. Strong recommends the Board reduce the Plan's assumed rate of investment return 10 to 20 basis points with the long-term goal of 6.25%. Trustee Hudgins explained that the lower the assumed rate of investment is, the more conservative the Board can be to satisfy its actuarial obligations. For planning and contractual purposes, this would aid in more accurately forecasting future employer contributions which could otherwise unnecessarily increase over 10 to 20 years. Mr. Strong concurred and noted that the decade from 2000 to 2010 was a difficult timeframe because the Plan had an assumed rate of return of 8.5% yet realized only a 3% to 4% actual investment return. To prevent a spike in employer contributions and dip in funded ratio, the Plan could now reduce its return assumption, which should keep the Plan fundamentally sound. At Chair Konstantopoulos request, Mr. Strong clarified that if the Board wished to have a lower rate of return applied to the 2021 valuation, it would need to approve a reduction in today's meeting as GRS is scheduled to present that valuation at the January 2021 meeting. Chair Konstantopoulos asked what the ramifications would be for reducing the assumed rate of investment return. Trustee Hudgins stated there are none, nowever the Plan would reduce its risk of having a lower funding ratio. Attorney Christiansen stated there would be no immediate risk to changing the employer's Book 1 Page 257 12-10-2021 8:15 a.m. Book 1 Page 258 12-10-2021 8:15 a.m. required contribution rate, however, if the actual investment return were substantially greater than the expected rate of return, the difference could be used to lower the required contribution amounts. Trustee Baty noted that lowering the assumed rate of return does not require a change to the investment strategy. Mr. Cole stated that Mr. Strong's recommendation, considering the minimal impact to the Plan's cost, as well as the timing of the recommendation, are both advantageous. He discussed his concerns with capital market forecasts and noted that when investment returns are strong, actuaries recommend reducing the investment return, however when investment returns are poor, such as from 2000 to 2010 when the earnings neared 0%, actuaries also recommended reducing the expected rate of return. Those notwithstanding, Mr. Cole expressed support for Mr. Strong's proposal, especially considering Trustee Hudgins' remarks. Mr. Cole explained that if the Board lowers its expected return rate, it could change its investment strategy to be more conservative; the Plan's currently strategy as it is would increase the probability the actual return rate would meet or exceed the assumed rate; he stated he would recommend the later. Mr. Strong explained that if the Plan reaches 100% funding, even with a lower assumed rate of return, there would be an opportunity to preserve that funding ratio with more conservative investments, however he would not wish to delve into investment advice. Trustee Hudgins proposed reducing the assumed rate of investment return from 6.75% to 6.5%, effective with the October 1, 2021 valuation; Trustee Baty seconded the motion. The motion carried unanimously (4-0). Mr. Strong thanked the Board for its time and stated he intends to appear at the January 2021 meeting in person. 11.2. Presentation and Discussion Re: Investment Policy Statement Addendum for Granite Investment Partners, LLC. Presenter(s): Larry Cole, Burgess Chambers & Associates. Mr. Cole stated this addendum is similar to most IPS addenda, with the exception of page 1, item 3, which limits investments in any single issuer, H to the greater of 5% or the benchmark weighting (Russell 1000 Growth Index) plus 3% (at market value)." While this may seem riskier, he noted Granite is only managing a portion of the portfolio and this would allow the manager to take more risks with a single stock; he reminded the Board that managers are still limited from holding more than 5% of the total portfolio in any single issuer. Trustee Hudgins made a motion to approve the Statement of Investment Policy Addendum for Granite Investment Partners, LLC (Large Cap Growth); Trustee Baty seconded the motion. The motion carried unanimously (4-0). 12. ATTORNEY MATTERS: 12.1. Presentation and Discussion Re: Proposed Ordinance Amendment Regarding Disability Benefits. Presenter(s): Scott Christiansen, Christiansen & Dehner. Attorney Christiansen stated this proposed ordinance was discussed at the last meeting and it amends the disability section of the Plan in 2 ways. In the first, the ordinance would allow the Plan to periodically require a disabilitant retiree's doctor to affirm the disabilitant continues to satisfy the Plan's medical requirements for disability benefits; this requirement is consistent with every other plan he advises but has been missing from this plan. In the second, the proposed ordinance would terminate the Plan requirement to inquire whether a disabilitant is able to return to work as Police Officer after the disabilitant reaches age 55. He explained that if a disabilitant were to recover from their condition, their disability benefit can be terminated ift they are able to return to work as a Police Officer; this amendment terminates that requirement when the disabilitant reaches age 55. Secretary/Treasurer: Griggs noted that the mayor is not Hagen Brody, but Erik Arroyo. She also noted that, if the Board approves the proposed amendment, the amendment would Inot likely go before the City Commission until the second week of January, 2022. Attorney Christiansen stated that would be satisfactory. Trustee Baty made a motion to approve the proposed ordinance and recommend it to the City Commission for adoption; Trustee Hudgins seconded the motion. The motion carried unanimously (4-0). Attorney Christiansen advised he would make the correction to the mayor and forward it to Secretary/Treasurer Griggs to be placed on an upcoming City Commission meeting agenda. 12.2. Presentation and Discussion Re: Litigation Report ITMO Conagra Brands, Inc. Presenter(s): Scott Christiansen, Christiansen & Dehner. Attorney Christiansen stated that this statement advises the Plan is waiting for the judge to issue an opinion on the plaintiff's appeal of the decision to dismiss the case. Attorney Christiansen stated House Bill 53 and Senate Bill 774 has been pre-filed which proposes to add COVID-19 as a presumptive condition for an in-line of duty disability benefit. The bill is going through committees prior to the legislative session. Attorney Christiansen stated there is an upcoming request for disability benefits from Bobbiesue Patrick. Attorney Christiansen has sent the interrogatories to the applicant and has not received them back. 13. OTHER MATTERS: 13.1. Presentation and Discussion Re: Administrative Expense Budget Report, July 1, 2021, Through September 30, 2021. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin explained this is the final Administrative Expense Budget Analysis for fiscal year 2021. Trustee Hudgins asked if any trustee training is available virtually. Pension Plans Administrator Martin advised the FPPTA has previously offered virtual training, however a virtual option has not been offered to date regarding the trustee school in January 2022. Chair Konstantopoulos stated he and Vice Chair Todd require continuing education units (CEUS); Secretary/Treasurer: Griggs also stated she requires CEUS. Attorney Christiansen noted this final expense budget analysis is a legislative requirement for the final and actual amounts. Trustee Hudgins made a motion to approve the Administrative Expense Budget Analysis as of September Book 1 Page 259 12-10-2021 8:15 a.m. Book 1 Page 260 12-10-2021 8:15 a.m. 30, 2021; Trustee Baty seconded the motion. The motion carried unanimously (4-0). 13.2. Presentation and Discussion Re: Check Register July 1, 2021, Through September 30, 2021. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin stated this is presented as payments are now made by ACH. The Board had no questions. 13.3. Presentation and Discussion Re: Investment Allocation as of November 30, 2021. Presenter(s): Debra Martin, Pension Plans Administrator. Pension Plans Administrator Martin advised this is a new document for the Board's information; it is in the same format as the cash analysis performed by Pension Administration each month before retiree payroll is issued. This will be presented quarterly with the Administrative Expense Budget Analysis and Check Register. 14. ADJORN. Chair Konstantopoulos adjourned the meeting at 9:22 a.m. cEla - Chair Demetri Konstantopoulos Secretary/fyeasurer Shayla Griggs