Appointed Representative Plan Administrator

JAMES M. CONCIALDI, CH JOEL THOMPSON Appointed Representative Plan Administrator KATHY KOEN Elected Representative MARK MEARS Elected Representative

ADELBERT OLIVAS County Treasurer

JUDY A. MARTINEZ Appointed Representative

BOARD OF RETIREMENT PUEBLO COUNTY, COLORADO MINUTES July 24, 2017

ROLL CALL

Board of Directors:

James Concialdi, CH Present Kathy Koen Present Mark Mears Present Judy Martinez Present Del Olivas Present

Also in attendance:

John Berg Principal Dale Connors Ellwood Michelle Fang Principal Andy Fiegel Ellwood Joel Thompson Plan Administrator K.C. Tucker Employee

CALL TO ORDER

A quorum was established and James Concialdi, chairman, called the meeting to order at 1:03 p.m.

APPROVAL OF CONSENT AGENDA

Mr. Concialdi asked for approval of the consent agenda. Ms. Martinez moved for approval. Ms. Koen seconded and the Board approved. Minutes July 24, 2017 Page 2

INVESTMENT MANAGER REPORT – PRINCIPAL

Ms. Michelle Fang, managing director, Real Estate and Mr. John Berg, Managing Director, Portfolio Management, representing Principal Real Estate Debt Funds, and Principal U.S. Property accounts respectively, were on hand to bring the Board up to date on the real estate holdings with Principal.

Mr. Berg updated the Board on the market environment for Real Estate, specifically the fundamentals of the space market, which continues to be strong with high demand for apartment living, and capital markets which continue to show high liquidity. The return was consistently high for the U.S. property account with five year returns at 11.6%, topping the index of 10.3%.

Ms. Fang gave an update on the Debt Fund I, which is all but complete, and the Debt Fund II which is beginning. The three year results for Debt Fund I were again strong with a gain on investment of 8.4%, net of fees compared to the index of 8% for the same period. Capital calls for Debt fund II will begin in mid-August though there have been transactions occurring already, using a bank line of credit for purchases. Our first capital call will be approximately 10% of committed capital. (Presentation attached)

MONTHLY INVESTMENT SUMMARY - ELLWOOD

Mr. Dale Connors, CFA, Senior Consultant and Mr. Andrew Fiegel, CFA for Ellwood were on hand to present the preliminary monthly summary for the month ended June 30, 2017. Returns were slightly up for the month though the figures are yet to come in on the real estate investments. June showed a .4% monthly gain, bringing year to date returns to a positive 5.7% net of fees return. Final June will be presented next month in the second quarter report. (Presentation attached)

OLD BUSINESS

NEW BUSINESS

At 1:50 Mr. Concialdi requested that the Board go into an executive session pursuant to C.R.S. section 24-6-402(4)(b) to discuss personnel matters. Board members only then went into executive session at that time.

RECONVENE

At 2:17 Mr. Concialdi reconvened the Boar for a continuation of the regular business meeting. Ms. Martinez moved that the Board raise the salary of the Administrator to $70,164 per year, effective August 1, 2017. Mr. Olivas seconded and the Board approved. Ms. Koen opposed.

Ms. Koen moved that the Board purchase a “Thank you” card and $50.00 Visa gift card for Ms. Debra Mansell to show appreciation for her years of service to the Board of Retirement. Mr. Mears seconded and the Board approved unanimously. Minutes July 24, 2017 Page 3

NEXT MEETING

The next regular meeting will be held on Monday, August 28, 2017, at 1:00 pm in the third floor conference room of the Courthouse.

ADJOURNMENT

There being no further business, the meeting was adjourned at 2:20 pm.

Joel Thompson Plan Administrator

PUEBLO COUNTY COURTHOUSE 215 WEST 10 TH STREET, PUEBLO CO 81003-2992 (719) 583-6026 FAX: (719) 583-6068