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Home My WebLink About2017 08 10 Consent 300 Unapproved Minutes from the May 9, 2017 Regular Meeting BOARD OF TRUSTEES AGENDA ITEM Informational ITEM 300 Consent X Public Hearings Regular August 10, 2017 Regular Meeting REQUEST: The Office Of The City Clerk Is Requesting The Board Of Trustees Consider And Approve The Of Wednesday, May 9, 2017 Board Of Trustees Regular Meeting Minutes. ATTACHMENT(S): A. Unapproved Copy Of The Wednesday, May 9, 2017 Board Of Trustees Regular Meeting Minutes (6 Pages) CITY OF WINTER SPRINGS, FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING MAY 9, 2017 CALL TO ORDER The Regular Meeting of Wednesday, May 9, 2017 of the Board of Trustees was called to Order by Vice-Chairperson Robin Paris at 5:32 p.m. in the Commission Chambers of the Municipal Building(City Hall, 1126 East State Road 434,Winter Springs,Florida 32708). Roll Call: Vice-Chairperson Robin Paris,present Board Member Stephen Krohn,present Board Member Cindy Sosa,present Board Member David Withee,present Assistant to the City Clerk Antonia Della Donna, present A moment of silence was held followed by the Pledge of Allegiance. No changes to the Agenda were mentioned. REGULAR AGENDA- PART I REGULAR 500. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Hold An Election For The Position Of Chairperson For Calendar Year 2017. RELATED TO THE ELECTION OF CHAIRPERSON, "I WOULD LIKE TO RECOMMEND DAVID WITHEE AS CHAIR." MOTION BY VICE- CHAIRPERSON PARIS. SECONDED BY BOARD MEMBER SOSA. DISCUSSION. VOTE: VICE-CHAIRPERSON PARIS: AYE BOARD MEMBER WITHEE: AYE BOARD MEMBER KROHN: AYE BOARD MEMBER SOSA: AYE MOTION CARRIED. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-MAY 9,2017 PAGE 2 OF 6 REGULAR 501. Office Of The City Clerk The Office Of The City Clerk Is Requesting The Board Of Trustees Hold An Election For The Position Of Vice-Chairperson For Calendar Year 2017. REFERRING TO THE POSITION OF VICE-CHAIRPERSON, CHAIRPERSON WITHEE STATED, "ROBIN [PARIS], WOULD YOU CONSIDER..." VICE- CHAIRPERSON PARIS STATED, "...YES..." CHAIRPERSON WITHEE CONTINUED, "...BEING VICE-CHAIR?" VICE-CHAIRPERSON PARIS STATED, "I WOULD BE WILLING TO DO THAT." ASSISTANT TO THE CITY CLERK ANTONIA DELLA DONNA ASKED, "IS THAT YOUR NOMINATION?" CHAIRPERSON WITHEE STATED, "YES." MOTION BY CHAIRPERSON WITHEE. SECONDED BY BOARD MEMBER SOSA. DISCUSSION. VOTE: BOARD MEMBER SOSA: AYE CHAIRPERSON WITHEE: AYE VICE-CHAIRPERSON PARIS: AYE BOARD MEMBER KROHN: AYE MOTION CARRIED. AWARDS AND PRESENTATIONS AWARDS AND PRESENTATIONS 100. Not Used INFORMATIONAL AGENDA INFORMATIONAL 200. Not Used PUBLIC INPUT Vice-Chairperson Paris opened "Public Input". No one spoke. Vice-Chairperson Paris closed "Public Input". CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-MAY 9,2017 Z, PAGE 3 OF 6 r CONSENT AGENDA CONSENT 300. Office Of The City Clerk The Office of the City Clerk Is Requesting The Board of Trustees Consider And Approve The Wednesday, February 15, 2017 (Rescheduled from Tuesday, February _ 14,2017) Board Of Trustees Regular Meeting Minutes. AS TO THE FEBRUARY 15, 2017 REGULAR MEETING MINUTES, "MOTION TO APPROVE." MOTION BY CHAIRPERSON WITHEE. SECONDED BY VICE-CHAIRPERSON PARIS. DISCUSSION. VOTE: VICE-CHAIRPERSON PARIS: AYE BOARD MEMBER SOSA: AYE BOARD MEMBER KROHN: AYE CHAIRPERSON WITHEE: AYE MOTION CARRIED. PUBLIC HEARINGS AGENDA PUBLIC HEARINGS 400. Not Used REGULAR AGENDA-PART II REGULAR 502. Finance And Administration Services Department The Finance And Administrative Services Department Is Requesting The Board Of Trustees Receive From AndCo Consulting, Inc The Second Quarter Investment Return Report And To Enter Into Discussion. Mr. Dave West, Senior Consultant, AndCo Consulting, 4901 Vineland Road, Suite 600, Orlando, Florida: briefly commented on AndCo Consulting's rebranding process and expressed the company's philosophy of"putting clients first". Next, Mr. West referred to the Investment Return Report and reviewed the composition of the portfolio for the benefit of the newer Board Members. Continuing, Mr. West commented on the Crescent Direct Lending Fund as well as aspects of private equity offerings and allocations. Further remarks followed on commitments and closings. CrFY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-MAY 9,2017 PAGE 4 OF 6 Chairperson David Withee inquired how funds were invested and to what level of specificity. Mr. West replied, "We're essentially in a pool where we are participating -` directly in—these company loans. Rather than buying,you know,a publically traded bond, we are—direct lending through this managed pool, and it could be used for operating funds, and actually that's usually what most of the loans are for." Additional comments ensued 4 on the process. Brief discussion followed on a previous meeting's action. Mr.West referenced the Investment Return Report,Page 2, and discussed the performance over the quarter. Mr. West commented further on investment rates, the Federal Reserve, payroll numbers, and various stocks. Continuing on Page 18, Mr. West referred to some financial data and remarked further on quarter, fiscal year to date, and one (1), three (3), and five(5)year numbers. Board Member Stephen Krohn asked about the comparison data being used by AndCo Consulting. Mr. West explained, "We subscribe to one of the more—common consultant databases, and—we don't get the names of the accounts." Discussion. Next,Mr.West reviewed peer group rankings on Page 19 and commented further on bonds, benchmarks, interest rates, diversification strategies, and inflation. On a related note, Mr. West expanded on diversification strategies and mentioned commercial real estate investments. Mr. West added, "Needless to say, in a period of time where real estate has performed exceptionally well, the American Core Realty Fund, from a peer group perspective,is going to lag the peers,and they have. Now,the returns have been excellent." Referencing recent financial news, Chairperson Withee asked what percentage of retail was being pursued and then commented on price appreciation. Mr. West replied, "The short answer is that yes, we can pull the positions and get the percentage allocations for each of the sectors. We've got full transparency looking into the portfolios." Mr. West continued, "Strategically, all of the real estate managers that we work with have anticipated Amazon[.com, Inc.] taking over as the real estate mogul. So, American [Core Realty Fund] and Intercontinental,to the extent that they are in retail,it's more—they limit themselves to the Publix-type strip malls, and if there's not a quality grocer anchor in the strip mall,they're generally not interested in that retail property. Neither of these managers have gone into mall-type investments or other retailers unless it's anchored accordingly." Further comments. At Chairperson Withee's request,Mr. West explained the purpose,function,and difference of the two (2) managers, Intercontinental and American Core Realty Fund. Discussion followed. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING-MAY 9,2017 < PAGE S OF 6 " Regarding Page 20, Mr. West commented on internal rates of return. Additional remarks C� � followed. Mr.West then referenced Page 17 mentioning cash flow,portfolio contributions, management fees, as well as asset allocation as shown on Pages 11 and 12. A ' Chairperson Withee inquired about asset reallocation. Mr. West pointed out, "The allocations are basically set up starting with equities to rebalance to the five percent(5%) rule—referencing Page 12 again—the domestic equity target, the long term target, at fifty percent (50%) of total plan assets, we basically set up a rebalancing target plus or minus five percent(5%) around that, and then the same applies for international equity. Then the rebalancing targets compress a little bit as the remaining assets are left volatile, right? So, we don't need as much head room and—we want to have a rebalancing event. So those ranges are a little more compressed. And then as far as systematic or not, the process, as prescribed in the Investment Policy Statement, is designed to keep this completely objective." Mr. West commented further on rebalancing and policy targets. Summarizing, Mr. West stated, "So, right now, bottom line — we have no action recommendations." Further comments. Mr.West referenced Page 38 next and briefly remarked about the Crescent Direct Lending Fund. Then referring to Page 41, Mr. West reviewed the investments and their related Fees. Chairperson Withee commented on new investments with the Crescent Direct Lending Fund and wondered if reallocation was necessary or if the funds for the capital call would be pulled from another fund. Mr. West stated, "The latter,"and referenced Page 12. "I WILL MAKE THAT MOTION TO ACCEPT THE REPORT AS PRESENTED." MOTION BY CHAIRPERSON WITHEE. SECONDED BY BOARD MEMBER KROHN. DISCUSSION. VOTE: VICE-CHAIRPERSON PARIS: AYE BOARD MEMBER SOSA: AYE BOARD MEMBER KROHN: AYE CHAIRPERSON WITHEE: AYE MOTION CARRIED. 600. REPORTS No Reports were given. CITY OF WINTER SPRINGS,FLORIDA MINUTES BOARD OF TRUSTEES REGULAR MEETING—MAY 9,2017 PAGE 6 OF 6 M PUBLIC INPUT Vice-Chairperson Paris opened "Public Input". No one spoke. Fibry Vice-Chairperson Paris closed "Public Input". ADJOURNMENT Vice-Chairperson Paris adjourned the Regular Meeting at 6:39 p.m. RESPECTFULLY SUBMITTED: ANTONIA DELLA DONNA ASSISTANT TO THE CITY CLERK NOTE: These Minutes were Approved at the 2017 Board of Trustees Regular Meeting.