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Clermont Fire 04-17-2020 Quarterly Meeting MinutesCity of Clermont Minutes �ERoNFIREFIGHTERS' PENSION BOARD OF TRUSTEES T PENSION BOARD MEETING Choice of Cham�[ons April 17, 2020 The Firefighters Retirement Plan Board of Trustees met on Friday, April 17, 2020 via RingCentral Video Conference. Firefighter Board Members present: Ryan Moore, Judy Proli, and Judd Lent. Attorney Bonni Jensen was present. Burgess Chambers & Associates member present: Larry Cole and Mitchel Brennan. Staff members present: Assistant Finance Director Pam Brosonski, and Risk and Benefits Manager Nadine Ohlinger. The Resource Centers staff members present: Scott Baur and A.C. Lovingood. CALL TO ORDER The Board Meeting was called to order at 10:01 AM. ELECTRONIC MEETING POLICY Attorney Bonni Jensen reviewed the Policy Governing the Use of Audio -Video Conferencing or Teleconferencing that was drafted for the Penson Plan. Chairman Judd Lent made a motion to approve the Policy Governing The Use of Audio -Video Conferencing or Teleconferencing or Teleconferencing. Secretary Ryan Moore seconded the motion, approved by the Trustees 3-0. REPORTS Investment Monitor Ubdate — Larry Cole, Burgess Chambers & Associates Larry Cole thanked the Board for holding this special Board Meeting. The reason for the meeting is due to the volatility in the markets due to the COVID-19 Global Pandemic, which has thrown off the long-term goals of the Pension Plan along with Mr. Cole's concern of not having the ability to rebalance the Plan if needed. At the end of business on Wednesday, April 8, 2020, the market was down 12% and the Plan is down 7.5% for Fiscal Year to Date. This month has seen an increase of 6%, unsure if we have hit bottom yet and would not be surprised if we see a resurgence of the COVID-19 virus. Valuations have decreased significantly along with interest rates dropping down to 0% and negative in some areas. The reason or calling this Board Meeting was to give the Plan more flexibility to have ability to rebalance the Plan as needed in this volatile market. Scott Baur stated that under the responsibility as Fiduciary for the Plan $200,000 of available cash was used to purchase iShares Convertible ETF on March 26, 2020 and $250,000 of available cash was used to purchase the Fidelity Large Cap Value Fund on April 1, 2020. In total about 2% of the portfolio was moved. Mr. Cole stated that the Plan is a little bit over the target on equities, however Mr. Cole stated that he would like flexibility on rebalancing until the market becomes more stable. Bonni Jensen stated that the first move that the Board needs to take is to make a motion approving the two rebalancing requests that were made. Secretary Ryan Moore made a motion to approve the March 26, 2020 $200,000 purchase of iShares Convertible ETF and the April 1, 2020 $250,000 purchase of the Fidelity Large Cap Value Fund. Trustee Judy Proli seconded the motion. The motion passed 3-0. Attorney Bonni Jensen made the recommendation to have a motion giving the consultant the authority to recommend and direct rebalancing the portfolio to the range or target of the Investment Policy Statement with approval of the Chairman. Mr. Baur stated that he would and requested that the Secretary be added as an authorized person as a backup if the Chairman is unavailable. Secretary Ryan Moore made a motion giving the consultant the authority to recommend and direct rebalancing of the portfolio to the range or target of the Investment Policy Statement with the approval from the Chairman or Secretary of the Pension Board effective until the next regular Board Meeting or 90 days, whichever comes first. Trustee Judy Peroli seconded the motion. The motion passed 3-0. Mr. Cole stated that he has a recommendation for a change to take some risk out of the portfolio. Given the nature of the Bond Market. The U.S. Bond Fund has a lot of Treasuries in it, not that it is risky, however the yield has come down. Mr. Cole would like to take $1,000,000 out of the Fidelity U.S. Bond Fund and place $1,000,000 in the Vanguard Short Term Corporate Bond Fund. This Bond Fund has a shorter maturity structure due to the yield going from 1.4% in the Fidelity U.S. Bond Fund to 1.7% in the Vanguard Short Term Corporate Bond Fund and take $300,000 in available cash and place it in the Fidelity Large Cap Value Stock Fund due to the Plan being underweight equities. Secretary Ryan Moore made a motion to approve the Investment Consultant's recommendation to move $1,000,000 out of the Fidelity U.S. Bond Fund, place $1,000,000 into the Vanguard Short Term Corporate Bond Fund, and invest $300,000 of available cash into the Fidelity Large Cap Value Stock Fund. Trustee Judy Proli seconded the motion. The motion passed 3-0. Attorney Rebort — Bonni Jensen Attorney Bonni Jensen stated that she had nothing to address at this time. ADMINISTRATOR REPORT — Scott Baur and A.C. Lovingood, Resource Centers Mr. Baur informed the Board that The Resource Centers is functional and that his office can accommodate virtual meets for as long as it is needed. Mr. Baur noted that Governor DeSantis Executive Order 2020-69 expires on May 8, 2020, however he is unsure if the May Board Meeting will be virtual meeting or not. Mr. Baur asked Pam Brosonski if she could give an update to the payroll and overtime issues. Pam Brosonski stated that her office is working on the payroll and overtime issues and that it should be completed in the next week or two. OTHER BUSINESS There was no other business to discuss at this time. PUBLIC COMMENT There was no public comment NEXT OUARTERLY MEETING: Wednesdav, Mav 27.2020 (d, 11:00 AM ADJOURN: With no further comments, this meeting adjourned at 10:42 AM. Respectfully submitted,