Book 1 Page 195 10-23-2020 9:00 a.m. MINUTES OF THE CITY OF SARASOTA POLICE OFFICERS' PENSION PLAN BOARD OF TRUSTEES REGULAR MEETING OF OCTOBER 23, 2020 VIA TELECONFERENCE, which is allowable under Executive Order No. 20-69 issued by Governor DeSantis on March 20, 2020 Present: Chair Demetri Konstantopoulos, Vice Chair Johnathan Todd, Secretary/Treasurer Ronnie K. Baty, Trustee Joseph Jody" Hudgins, and City Auditor and Clerk Shayla Griggs Others: Attorney Scott Christiansen, Pension Plans Administrator Debra Martin, Senior Pension Analyst Anthony Ferrer, Senior Pension Accountant Lori Boyer, Pension Specialist Peter Gottlieb. Absent: None 1. CALL MEETING TO ORDER: Presenter(s): Chair Konstantopoulos, via teleconference. Chair Konstantopoulos called the meeting to order at 8:15 a.m. 2. PLEDGE OF CIVILITY: Presenter(s): Chair Konstantopoulos, via teleconference. 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, via teleconference. Pension Plans Administrator Martin called roll. Chair Konstantopoulos, Vice Chair Todd, Secretary/reasurer Baty, Trustee Hudgins, and City Auditor and Clerk Griggs appeared telephonically. Also appearing telephonically were Attorney Christiansen, Pension Plans Administrator Martin, and Senior Pension Analyst Anthony Ferrer. Pension Specialist Gottlieb appeared in person. 4. PUBLIC INPUT: None. Trustee Hudgins stated he will leave the meeting at approximately 8:45 a.m. and asked if the Chair would consider moving any items requiring a vote ahead on the agenda if he is needed, although a quorum appears to exist without him. 5. APPROVAL OF MINUTES: 5.1. Approval Re: Minutes of the Firefighters Pension Plan Board of Trustees Regular Meeting of September 25, 2020. Presenter(s): Chair Konstantopoulos, via teleconference. Secretary/Treasurer: Baty made a motion to accept the minutes of the September 25, 2020 meeting. Vice Chair Todd seconded the motion. The motion carried unanimously (4-0). 6. RETIREMENT REQUEST(S): 6.1. Approval Re: DROP Retirement Request of John Marcinkiewicz. Presenter(s): Debra Martin, Pension Plans Administrator via teleconference. Pension Plans Administrator Martin stated that John Marcinkiewicz requests to enter the DROP as of October 1, 2020 after 30 years of service time, and he has selected the 100% to joint annuitant option. Vice Chair Todd made a motion to accept Mr. Marcinkiewicz retirement request; Secretary/Treasurer: Baty seconded the motion. The motion carried unanimously (4-0). 7. INVESTMENT PERFORMANCE REVIEW: 7.1. Presentation and Discussion Re: BNY Mellon Wealth Management, Portfolio Review as of September 30, 2020. Presenter(s): Elizabeth H. McManus, Vice President, Relation Manager, BNY Mellon, via teleconference. Ms. McManus came before the Board telephonically and introduced herself and William Adams, Managing Director, and Senior Investment Strategist for the Large Cap Value Strategy at BNY Mellon. Ms. McManus thanked the Board for its business and investment into their Large Cap Value account. Mr. Williams discussed the portfolio's investment performance in the third quarter of 2020, noting that in the month of October 2020, the portfolio is up another 160 basis points which narrows the year-to-date gap to approximately 50 basis points, sector attribution, relative sector weights, portfolio structure noting the over- and under-weighted holdings, and concluded by noting the very wide valuation discount for value stocks compared to the broad market which suggest, over the next 12 months, he expects value stocks to outperform the market by 30%. Larry Cole of Burgess Chambers Consulting appeared before the Board telephonically and asked if BNY Mellon has any dividend or yield requirements on the stocks they purchase. Mr. Williams stated that the firm does not, but the significant dividend yield currently on the portfolio is due to overweighting in financials and utilities. Mr. Williams added that although this portfolio does not have an income requirement, they manage other portfolios which do and there has been overlap between the varying strategies. Book 1 Page 196 10-23-2020 9:00 a.m. Book 1 Page 197 10-23-2020 9:00 a.m. Mr. Cole also asked if BNY Mellon had an holdings or interest in holding gold or silver mining companies. Mr. Williams stated the firm has owned precious metal mining companies and is open to investment in that sector, but not currently. Mr. Cole noted, referring to Mr. Williams' expectation considering the valuation discount, that on a month-to-date basis as of October 22, 2020, the Russell 1000 Value Index is up 4.2%, and the Growth Index is up 2.1%. The Board thanked Ms. McManus and Mr. Williams for their presentation. 9. NEW BUSINESS: 9.1. Presentation and Discussion Re: Proposed 2021 Meeting Schedule. Presenter: Debra Martin, Pension Plans Administrator, via teleconference. To accommodate Trustee Hudgins' departure from the meeting, Chair Konstantopoulos called item 9.1. Pension Plans Administrator Martin presented the Proposed 2021 Meeting Schedule, noting the State of the Pension Workshop is anticipated to be held in August 2021 with the exact date to be determined. Secretary/Treasurer: Baty made a motion to accept the proposed 2021 Meeting Schedule. Trustee Hudgins seconded the motion. Motion carried unanimously (4-0). 7. INVESTMENT PERFORMANCE REVIEW (continued): 7.1. Presentation and Discussion Re: Burgess Chambers Consulting, Strategic Property Fund Fee Change. Presenter(s): Larry Cole, Executive Vice President, Burgess Chambers Consulting, via teleconference. Mr. Cole advised that this was a brief and preliminary update due to the volatility in the year, and expects some minor changes in the final amounts when he presents the quarterly report; he stated had no rebalancing recommendations at this time. He discussed the net and gross returns and explained growth has had an unusually long run. He stated the top five stocks in the S&P 500 produce approximately 40% of the returns; the remaining 495 stocks were negative for the year. 7.2. Presentation and Discussion Re: Burgess Chambers Consulting, Fiscal Year Update. Presenter(s): Lary Cole, Executive Vice President, Burgess Chambers Consulting, via teleconference. Mr. Cole explained the Plan is still invested in real estate with approximately $10 million in the disbursement queue for divestment; only small portions are being returned due to low liquidity in the real estate market. JP Morgan issued a fee adjustment on real estate divestments which will a minimal effect the Plan, the fee for disbursements up to the first $25 million remains at 1%, however the fee for amounts above $25 million is reduced by five basis points. He noted JP Morgan had a relatively flat quarter, which was a positive sign if accurate. Mr. Cole noted the other amendments in the notice do not apply to the Plan. Attorney Scott Christiansen appeared before the Board telephonically and introduced himself. He stated that JP Morgan's notification does not require the Board's action. Mr. Cole asked if the approval of an expedited process to rebalance accounts was still authorized; Attorney Christiansen stated he was unsure if it did. Mr. Cole stated he would consult with Pension Plans Administrator Martin. The Board thanked Mr. Cole for his presentation. 8. UNFINISHED BUSINESS: None. 9. NEW BUSINESS: No additional items. 10. ATTORNEY MATTERS: Attorney Christiansen advised Pension Plans Administrator Martin that the Plan must report its investment activity to the City Commission using Pension Letter 2. He asked Pension Plan Administrator Martin when it would report the actual administrative expenses for the concluded fiscal year; she stated it would be reported in December. Attorney Christiansen advised regarding the ConAgra case that the court has accepted opposing counsel's motion to dismiss the case without prejudice, meaning plaintiffs could re-draft a complaint to request a new hearing if they chose to do so. In the Van Gostein appeal, Attorney Christiansen advised all parties had a status conference on October 23, 2020 and the judge advised he would issue a ruling within 30 days. He noted Judge Stephen Walker is currently presiding over the case. Attorney Christiansen noted City Auditor and Clerk Griggs has an agenda item on the November 2, 2020 City Commission meeting to address her satisfaction of the residency requirement. Attorney Christiansen lastly advised the Governor of Florida has, to date, not issued any executive order to extend waiving in-person quorums at public meetings. Absent any action, meetings as of November would need to have an in-person quorum. 11. OTHER MATTERS: 12. ADJORN. Chair Konstantopoulos adjourned the meeting at 8:58 a.m. Book 1 Page 198 10-23-2020 9:00 a.m. Book 1 Page 199 10-23-2020 9:00 a.m. V 1 Chair Demetri Konstantopoulos Eity Auditor & Clerk Shayla Griggs