Book 1 Page 175 03-27-2020 8:15 a.m. MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES SPECIAL MEETING OF MARCH 27, 2020 VIA TELECONFERENCE, which is allowable under Executive Order No. 20-69 issued by Governor DeSantis on March 20, 2020 Present: Chair Ron Baty, Vice Chair Demetri Konstantopoulos, Trustee Johnathan Todd, Trustee Jody Hudgins, and City Auditor and Clerk Shayla Griggs. Others: Attomey Scott Christiansen, Pension Plans Administrator Debra Martin, and Senior Pension Analyst Anthony Ferrer, Manager of Public Broadcasting Miles Larsen. Absent: None 1. CALL MEETING TO ORDER: Chair Baty called the meeting to order 8:14 a.m. Chair Baty called a roll call. Chair Baty, Vice Chair Konstantopoulos, Trustee Todd, Trustee Hudgins, Pension Plans Administrator Martin and Senior Pension Analyst Ferrer appeared telephonically. City Auditor and Clerk Griggs appeared in person. City Auditor and Clerk Griggs stated for the record that this meeting is being held via teleconference, in conjunction with Governor Ron DeSantis' executive order allowing such meetings. Attorney Christiansen noted Larry Cole from Burgess Chambers & Associates (BCA) is appearing telephonically. 2. PLEDGE OF CIVILITY: Chair Baty read into the record a memorandum from Former Mayor Willie Charles Shaw, dated February 13, 2015, entitled "City Commission and Advisory Boards Meeting Protocols and Pledge of Civility." City Auditor and Clerk Griggs stated that no members of the public had called to participate elephonically. 3. PUBLIC INPUT: None. 4. APPROVAL OF THE MINUTES: None. 5. RETIREMENT REQUESTIS): None. 6. INVESTMENT PERFORMANCE REVIEW: None 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: 8.1. Presentation and Discussion Re: BCA Request for Revised Rebalancing Procedures Presenter(s): Lary Cole, Executive Vice President, BCA Mr. Cole came before the Board and introduced himself. Mr. Cole suggested, considering the recent market volatility, the Board formulate and authorize a process to rebalance the Plan's portfolio assets between Board meetings. As market conditions had improved somewhat since he had announced his request, Mr. Cole did not have any specific rebalancing recommendation at the time of this meeting, other than to establish an expedited process. A detailed discussion ensued. The Board discussed limiting the time period during which such authority would be granted to approximately 90 days, or the June 12, 2020 regular Board meeting, as well as limiting the authority to rebalance the portfolio to the amounts specified in the Investment Policy Statement. Mr. Cole agreed he would, by 1 p.m. on any day he believed the portfolio required rebalancing, notify the Chair by e-mail to the Pension Plans Administrator to request rebalancing to the target levels. The Pension Plans Administrator would then notify the other members of the Board, via email, of the intended action; the Trustees would need to state by e-mail any request to the Chair to discuss this proposed action in a special meeting; if the Trustees did not request a further discussion, the Chair would provide by email a response by 3 p.m. the same day to the Pension Plans Administrator and Mr. Cole regarding the suggestion action. Vice Chair Konstantopoulos made a motion, which was seconded by Trustee Todd, to give the Chair the authority, upon notification by Larry Cole of BCA, to approve the movement of funds up to the stated amounts in the Investment Statement Policy. All Trustees will be notified of this by e-mail with a time stamp of when they need to respond if there is a request by a member of the Board for a special meeting and discussion. The authority expires in conjunction with the June 12, 2020 Regular Board Meeting, at which time it will be reviewed, and renewed or cancelled. Pension Plans Administrator Martin called a roll call vote. The motion carried unanimously (4-0). Mr. Cole stated the Plan's portfolio value this quarter was down approximately 13-14% through March 26, 2020, while the market in general was down approximately 19 to 20%. He noted the first quarter had started out being approximately up by 6.1%, and in the fiscal year, the Plan is down approximately 8.5- 9%. He assured the Board his office is open, but working from home, and expects to make recommendations under the approved motion as he believes appropriate. He suggested the Board may consider holding a special meeting in May 2020 due to being potentially over-weighted in real estate. He further noted the divestment process would not be instant, but over time, and as such, the Board would need to submit a withdrawal request by the end of May 2020 for the July 2020 disbursement, although he did not believe current action was necessary. He suggested the Board may consider adding some amount of funds in the disbursement queue, and disbursement could take several quarters because of the divestment process. Mr. Cole reminded that if a fund was hypothetically down 50%, it would need to recover 100% to recover from the price drop. City Auditor and Clerk Griggs advised all attendants who were not speaking to mute their telephones and take telephones off speaker due to feedback. She also reminded all attendants that the meeting was approved only to discuss rebalancing, and not for discussion of other matters. The Board thanked Mr. Cole for his presentation. 9. ATTORNEY MATTERS: Attorney Christiansen asked if Mr. Cole was still working on Cohen and Steers Collective Investment Trust. Mr. Cole replied it was approved but still in process due to requiring document signature. Pension Plans Administrator Martin advised the document had been received but pending signature of a Secretary/Treasurer. Attorney Christiansen recommended the Board appoint a temporary SecretaryfTreasurer, noting the nominee must be a Book 1 Page 176 03-27-2020 8:15 a.m. Book 1 Page 177 03-27-2020 8:15 a.m. Trustee. Chair Baty made a motion to nominate Trustee Todd as temporary Secretary/Trustee with a second from Vice Chair Konstantopoulos. In a roll call vote recorded by Pension Plans Administrator Martin, the motion carried unanimously (4-0). Attorney Christiansen also noted a decision had not been issued in the David Van Gostein's disability case. Attorney Christiansen requested a copy of adopted Ordinance 20-5314 from Pension Plans Administrator Martin. Attorney Christiansen noted the State of Florida has not enacted any new legislation requiring Board attention, adding that Senate Bill 1270 requiring appointed Public Officials obtain an additional five hours of training every four years in the area of Board Governance and fiduciary Responsibility did not pass. Trustee Todd expressed gratitude on behalf of himself and the Board to Mr. Cole for his service to the Board. 10. OTHER MATTERS: None. 11. ADJOURN. Chair Baty adjourned the meeting at 8:48 a.m. 1RAH Chair Ronnie K. Baty Vice Chair Demetri Konstantopoulos