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I can't believe it's already Monday is what I can't get over. No. Hello.

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Looks like we're all here. We'll call the meeting of January 26, 20, 26, first meeting of 26 to order. Chris, can I get a roll call? Yes, sir. Trustee Bergman. Trustee Burt. Yeah. Trustee Dackis. Here. Trustee Fox. Yeah. Trustee Gle. Here. Trustee Horgan.

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again. Here. Trustee Jill. Trustee Lone. Here? Trustee Resnick. Chair Gras. Here.

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All right. We'll move into the approval of the agenda. We also have somebody that's

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going to speak on this. Catherine the vote.

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When we get into the applications for disability

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the community retirement, the county attorney is not available today because of a emergency.

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So my initial thought is to move or boom into February, I know on item B, the reconsideration.

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The applicant is online and would like to still speak today.

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My thought is that we could decide on whether we're going to do a reconsideration or not and move the second part of that to February when the county is available.

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to make a comment and represent their side of that.

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Sure, go ahead.

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I just want to clarify something regarding their boom in,

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all the parties did agree to the continued answer requested on that one.

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Thank you.

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So Catherine, I'll have you come up.

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We'll take your comment and then we'll decide how we're going to go forward.

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Good morning everyone and happy new year.

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So as noted, Ms. Kempner, who as many of you know has represented the county

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for many years. I'm here before the board had expressed her intention to be here today

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in representation of the county on both items that were agendized. Unfortunately on Thursday,

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one of her family members was killed in an accident, which immediately necessitated

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her having to leave California. She's deeply concerned about her inability to be here today

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with the idea that things might move forward without her properly representing the county.

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I very much appreciate the recommendations already of the chair and would simply ask for

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this extension, which is less than 30 days total time.

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So we appreciate that and would hope that we could grant that courtesy based on the extraordinary

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nature of the circumstance.

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Thank you.

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Thank you, Ms. Levo, and our condolences for our losses.

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Does anybody want to make a comment?

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We're dealing with that item now because it's related to the approval of the agenda and how we're going to proceed today.

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I guess I'm in favor of continuing the item because I'd like to hear from the county.

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Okay.

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I would agree as well.

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Okay.

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Thank you.

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It's here to speak though.

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We can.

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Okay. Why don't we leave item B,

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Doug Otto on the agenda?

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He can make his comment.

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No good decision will be made if that's okay for your motion.

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It's okay.

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Okay.

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Thank you, Horton and Kelly.

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Wait

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for the item and then vote, but the way it can tell us.

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We need to vote on the approval of the agenda, though, with those changes.

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I'll motion to approve the agenda.

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As amended.

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As amended.

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Thank you.

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Shegan,

55
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I don't have anything on my screen.

56
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Yes, this is my vote, though.

57
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Good, okay.

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Motion passes.

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All right, they see it up there now.

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All right, we'll move into consent.

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Any board members have questions or comments on any of the items on consent?

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And if not, can I get a motion?

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Thank you.

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I

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just like to say I'm going to vote, but if I will abstain from item A, as I was

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not in that meeting, otherwise my vote.

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Thank

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you.

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My vote is yes again.

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That motion passes.

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We'll move into applications for disability retirement, as we just discussed, item A is being

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pushed.

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Item B, we're just going to hear the applicant's statement and we'll move forward.

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Mr. Delgado, I see you're online.

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Yes, take it away.

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I was actually going to make a statement, but I'm out of respect for Mrs. Campner's situation.

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I'm just going to hold off until next month, and I don't want to provide a statement at this point.

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It's she's not present, so we'll just wait.

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Thank you, Mr. Delgado. I appreciate that.

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Moving along, investment manager presentations.

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Item A, annual investment presentation by...

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Okay. Can I motion to move that item to the following meeting? Please.

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We have to vote to move it. Okay. Yes. Second. I thought that though. Okay. There you go.

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Thank you.

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And that's a motion for both items A and B.

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A was already moved.

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Um, per the approval of the agenda. It's for B and C, which are both for Delgado.

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I do appreciate that we all work well together.

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We've got each other's bags. Thank you.

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My vote is yes, Chris. I've got nothing on my screen.

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Motion passes. Now we'll move

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into investment management presentations. First item is the annual investment presentation

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of the Sal Value Partners and I'll hand it over to Dan.

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I think you are right. Real estate managers are often viewed in one

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of additional categories, but those are really the main ones.

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We'll be hearing presentations today

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from two top real estate managers,

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both firms are very strong and deep organizations,

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but they manage very different mandates for Vicerah.

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LaSalle manages the value-add strategy

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and PGM, a core strategy.

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The first up is LaSalle.

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The board committed 100 million to LaSalle's growth

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and income fund eight, a 2019 vintage year,

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and 75 million follow-on fund to Value Fund 9, which is a 2023 vintage fund, both the

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cell funds of Value Ed. Value funds invest in high quality but unstabilized properties

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where they can add value. They develop properties, they buy properties with below-market rents to

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upgrade in order to command higher rents, or they might simply look for properties that

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price or in the markets that they think will outperform. After adding value, they will

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typically sell these stabilized properties to core managers. They'll be like Proventile

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or like PGM, which is coming up next. Fund A properties are at various stages of executing

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their business plans and fund nine is at the front end of its deployment. Now I'm going

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to turn over to head of investor relations, Chad with Cunningham, who will introduce

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Sal Value Partners and its presidents and CIO, Jeff Schuster.

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Chad Odieu.

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Thanks, Dan.

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And thank you to the Vissera Board of Retirement.

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We appreciate this opportunity to present Sal Value Partners U.S.

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or LVP U.S. as we call it.

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As Dan said, my name is Chad Wood,

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Cunningham and I'm a Relationship Manager

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with LaSalle's Investor Relations Team.

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I am based in Chicago at our Global Headquarters,

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which is where I've been since joining the firm

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over 20 years ago. I work with institutional investors and consultants across the western

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half of the United States, which means I have the good fortune of working with two of

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my favorite people in Dan and Paris. As Dan also referenced, joining me this morning

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is Jeff Schuster, president of LVP U.S., which is our flagship closed-in value ad fun series

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in the U.S. Jeff is based in New York City and joined LaSalle in 2020 after spending 12

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years at Starwood Capital Group where he completed real estate transactions valued in the

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billions. Before I hand things over to Jeff, who

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We'll go into detail on your investments in our Value Add Fund series. We wanted to give you a brief overview on LaSalle. And I promise to keep this short. So if we go to the next slide, admittedly, there's a lot of text on this slide. So let me just focus on really three key takeaways. First, is scale and experience. LaSalle manages almost 90 billion in assets and has been investing exclusively in real estate for 45 years.

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That experience gives us a long-term perspective and a discipline approach across market cycles.

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The second thing is breadth of capability.

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We manage a full spectrum of real estate strategies and products from

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Pomegal funds like LVP US to separate accounts, equity debt and even listed securities.

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That flexibility helps us to meet a wide range of client objectives.

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And then lastly, alignment with US-based public pension plans.

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More than 50% of our AUM in the Americas comes from U.S. public pension plans, and nearly

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50% of LVP's commitments in the last two funds come from U.S. public pension plans.

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So we're naturally aligned with investors like Ventura County Employee's Retirement

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Association, who shares similar goals around generating attractive risk-adjusted returns.

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If we go to the next slide, Global Reach with Vocal Presence, Real Estate is inherently

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local, which is why having teams on the ground and the markets we invest in is so important.

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OSAW's 850-person global platform spends North America, Europe, and Asia Pacific, giving

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us both local insight and global perspective.

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We see firsthand how capital flows and investor demands across regions influence pricing

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here in the U.S. and that ability to share intelligence across markets, and paired with global perspective

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with local execution, is one of the OSAW's key differentiators.

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If we go to the next slide, how we leverage the strength of JLL.

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So the Sal is a wholly owned subsidiary of Jones and Lesal, a Fortune 500 company with

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over 112,000 employees in a 250-plus year history.

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Under the Jones and Lesal umbrella sits two groups, Lesal and JLL.

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Lesal focuses exclusively on real estate investment management and JLL focuses exclusively on real

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real estate services, which means the entire organization is 100% centered on real estate

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from top to bottom.

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So for clients, that means the sale operates independently, but with access to things

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like JLL's expansive research resources, business support services, whether it's HR, technology,

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et cetera, and even its value sheet, as demonstrated by JLL's investment alongside your investments

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in our Value-Ad Fund series.

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So with that quick overview on the sale and our platform, unless there are any questions,

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on all two things over to Jeff.

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Thank you, Chadwick.

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Good morning.

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I just wanted to thank the board for the opportunity

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to present this morning.

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I also want to thank Dan, your team,

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and NEPC who really continue to be excellent partners

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and a pleasure to work with.

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If we could put two slide six please.

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I'm going to spend the next few minutes talking through

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and providing an update on the two value ad funds

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that BCERA is invested in, fund 8 and fund 9.

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As Dan mentioned, fund 8 is a 2019 vintage fund.

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It was primarily invested during 2020 through 2022,

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and fund 9 is a 2023 vintage fund.

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It's currently a little bit under 50% invested

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and is still within its investment period.

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Both of these strategies and funds are closed-end

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and focused on value ad.

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And as Dan mentioned, unlike a core strategy

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which primarily focuses on acquiring stabilized assets, these two funds really focus on investing

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in high quality but unstable as properties that will generally appeal to investors with

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a lower cost of capital like a core investor when it's time to sell and it typically takes some

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time to extract the value from these types of properties that were invested in. So turning to the

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Next slide, we'll first dive into fund eight.

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So fund eight is an $832 million fund.

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It's fully committed and we've called 93% of its capital.

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The portfolio had 35 investments at its peak.

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And we've since sold 10 that have generated

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approximately a 20% net higher up.

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And have also returned about a quarter

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of your committed capital through this process

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of selling those assets.

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Turning to slide 8, the funds investment period ended about 2.5 years ago.

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We're now in the process of executing our business plans

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and have really been focused on stabilizing and leasing

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the transitional assets that we have in our portfolio

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and then we'll be looking to choose the optimal time for selling those properties.

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On slide 9, you can see our current portfolio is about 86% invested

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in residential and logistics based on total capitalization,

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and the balance sits in two lab investments that are in Boston and Philadelphia.

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Our average investment was about 3% of total commitments.

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You'll also notice that about two thirds of the portfolio consists of operating assets,

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or properties that really have very little value ad work remaining.

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We continue to make progress stabilizing portfolio assets,

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that's which is why that percentage continues to tilt iron higher.

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Within residential and logistics, we own properties that are considered traditional property types,

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such as class B apartments, but have also invested in some subsectors,

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such as manufactured housing, single-family rental, and active adult,

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which is really geared towards residents that are 55 and older.

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And these subsectors have proven in many cases to perform similarly,

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If not better, then the more conventional typical traditional formats.

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The last couple of years have definitely been challenging in our space on the macro front

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as interest rates have got up and operating fundamentals in a lot of areas have slowed

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down, although unevenly.

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Solar operating fundamentals have impacted the amount of time it has taken to stabilize

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some of our assets, and also on the capital market side, higher rates, and higher cap rates

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have led to some volatility and below average sales volumes.

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So as a result, we're being selective in deciding when to sell our assets with an eye both

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towards maximizing profits, but also maximizing returns.

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The funds life extends until the middle of 2028, or if extended the middle of 2029.

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So we do the benefit of time for the current cycle to develop, which we believe, conjunction

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with continuing to complete our business plans,

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we'll better position the fund to optimize

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investment performance when we sell.

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Turning to slide 10,

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we've been very disciplined

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about where we've invested,

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and we've focused our residential investments

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in markets with growing employment

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and population,

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and have also concentrated our logistics investments

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in key nodes in major markets.

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We believe fund eight owns

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a high quality portfolio of assets

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that are largely in the sectors, the sub-sectors in the market,

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which are primarily coastal and growth-oriented,

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that core and core-plus investors want to own long-term.

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And this is really important because as short-term investors and holders,

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we're very focused on our exit and take-out.

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Turning to slide 11.

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This summarizes, there's a lot of text on this slide,

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but this summarizes our remaining portfolio.

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As you can see, most of the heaviest business plan risk

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as I talked about a few minutes ago is behind us

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as we make progress stabilizing our assets

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and they begin to generate cash flow.

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Turning to slide 12.

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Wanna share a couple of updates across our portfolio.

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First, the Real Estate.Markets have continued to improve

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and we've been taking full advantage of this.

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We completed five refinancings over the past year and then doing so we reduced our spreads

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on those assets by approximately 75 basis points and we also added three years of term.

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We also completed the loan restructuring for the fund's largest life science exposure,

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which is a building that's in Fenway right across from Fenway Park in Boston, it's the

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building that has the sick go sign on top of it.

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But this restructured loan will give us a lot more time to finish stabilizing and leasing

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up the property.

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On the top right is a photo of a manufactured home community that we're developing in Fort

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Worth, Texas, and here we've really continued to see strong demand as we sell individual

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homes to residents who then lease their sites back from us.

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And the project is now 38% occupied and it's continuing to climb.

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And finally on the bottom right is one of our active adult projects.

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This is called Sage Plum Creek, it's in Kyle, Texas, which is south of Austin.

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We own three active adult properties that we developed in this portfolio and these are really

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all geared towards 55 and older residents.

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and here really across all three properties we've been making really strong

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progress leasing them up they've all hit 85% or higher on the occupancy front

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and we expect to get them into the low to mid-90s this year.

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Now turning to slide

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13. I want to spend a couple of minutes on Fund 9. The Fund's final close was

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about a year ago, and we're still in the middle of its investment period. We've called

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approximately 15% of the funds capital thus far, and have committed a little bit under

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50%. Over the past year, we've committed approximately 30% of the funds capital.

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In total, we've made about 20 investments spread across logistics, residential, and healthcare,

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which is really met at the law office in this case and we've been making really good progress on executing our business plans for the assets that we purchased.

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Moving to slide 14, the funds investment period ends in a little bit over a year, though it can be extended for an additional 12 months as needed and the funds life stretches into 2032 or 2033 extended.

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Turning to slide 15, we continue to anticipate building a portfolio that's going to be tilted

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00:26:07,600 --> 00:26:12,920
heavily towards logistics and residential, though it may include some smaller exposures

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to other sectors of pricing is interesting, such as healthcare. To date, about two-thirds

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of our investments are logistics oriented, but we do expect this tilt to come down as we continue

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00:26:24,260 --> 00:26:25,940
need to commit the rest of the fund.

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We've been very disciplined in our deployment thus far,

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00:26:30,460 --> 00:26:33,200
and have been very selective with our capital.

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As I mentioned with fund eight,

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we've been navigating a challenging macro environment

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with a capital markets landscape that's still

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adjusting to the current rate and cap rate environment.

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This is caused transaction reliance to be below average.

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And in some cases has created a gap in pricing

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between what sellers expect and also what buyers want to pay.

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And we think that that will continue to persist in several cases.

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00:27:01,920 --> 00:27:06,520
We've also been seeing operating fundamentals in certain areas cool off from their peaks.

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00:27:07,580 --> 00:27:12,900
And all of this combined is very meaningful when you're investing for a relatively short term,

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00:27:13,100 --> 00:27:14,420
whole period, like we are.

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00:27:15,740 --> 00:27:20,000
So all of this being said, we do continue though to see some really interesting opportunities

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and our focus on making investments with the right balance of risk reward, and we'll

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also pay in close attention to the quality of the real estate, our pricing, and where

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00:27:31,760 --> 00:27:36,160
that sits relative to construction costs to replace that property.

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00:27:37,140 --> 00:27:41,380
And we do like to find opportunities with some in-place cashflow when we can find them,

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00:27:41,500 --> 00:27:42,320
and when that's available.

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00:27:42,940 --> 00:27:44,160
So you could risk mid-again.

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00:27:45,700 --> 00:27:46,860
Turning to slide 16.

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00:27:48,120 --> 00:27:54,820
The portfolio that we own to date consists of assets that are situated in primary or secondary

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00:27:54,820 --> 00:27:59,980
major markets, and as you can see, are geographically diversified.

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00:28:00,980 --> 00:28:06,240
The majority of our assets are in very dense, in fill locations as well as fewer to zoom

308
00:28:06,240 --> 00:28:08,580
in and look at their microlocations.

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00:28:10,830 --> 00:28:16,970
Turning to slide 17, the portfolio we put together so far includes a mix of asset types

310
00:28:16,970 --> 00:28:22,470
and business plans. On the residential side, we've made a preferred equity investment on a new

311
00:28:22,470 --> 00:28:28,770
apartment project in an A school district in New Jersey and have also purchased a newly built

312
00:28:29,390 --> 00:28:35,190
90% lease apartment project in Northern Atlanta that we purchased below and it would cost to build

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00:28:35,190 --> 00:28:43,170
that asset today. Within logistics, we've invested in a broad cross-sectional strategies.

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00:28:44,150 --> 00:28:49,050
We've been assembling, as we talked about last year, an industrial outdoor storage portfolio.

315
00:28:50,230 --> 00:28:55,070
We purchased a property that was also recently built, but at a good basis, and

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00:28:55,070 --> 00:28:57,350
which still has about 40% to lease out.

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00:28:58,910 --> 00:29:04,990
We have two well-located development projects underway, one is in Charlotte, one is in Houston.

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00:29:06,610 --> 00:29:13,050
And we finally purchased a few in fill, very well-located industrial

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00:29:13,050 --> 00:29:15,710
properties that we call shallow bay properties.

320
00:29:17,150 --> 00:29:23,870
And finally, within healthcare, we've acquired a 55% lease property in Gilbert, Arizona,

321
00:29:24,210 --> 00:29:27,330
which is in the Phoenix metro area.

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00:29:27,770 --> 00:29:33,390
It's located right across the highway from a top-ranked hospital in that market,

323
00:29:34,170 --> 00:29:40,070
and we're in the process of finishing the conversion of that property into a medical office property.

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00:29:40,070 --> 00:29:40,130
Okay.

325
00:29:42,620 --> 00:29:51,380
Turning to slide 18. Here are some maps in terms of slide 18, please.

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00:29:53,740 --> 00:29:54,220
Thank you.

327
00:29:54,720 --> 00:29:59,640
Here are maps and photos of the two residential assets that we've invested in.

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00:30:00,000 --> 00:30:07,300
The first one up top is outside of Philadelphia, and the second one is in Northern Atlanta. On

329
00:30:07,300 --> 00:30:12,060
the slide 19. So on the industrial assets that we purchased so far, three of them happened

330
00:30:12,060 --> 00:30:17,800
to be in Charlotte, which is a market that we like quite a bit, although the strategy and

331
00:30:17,800 --> 00:30:22,760
business plan for each of these assets is quite different. The top asset is the building

332
00:30:22,760 --> 00:30:28,820
I mentioned before that has remaining lease up. The second is a development project located

333
00:30:28,820 --> 00:30:34,920
located in an A location in one of the best industrial cell markets in Charlotte.

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00:30:35,920 --> 00:30:42,700
And the third property is an infill shallow bay property, the CARES 2, a number of different

335
00:30:42,700 --> 00:30:43,000
tenants.

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00:30:45,420 --> 00:30:51,600
And then finally on slide 20, this is a snapshot of the medical office property that we acquired

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00:30:51,600 --> 00:30:52,500
in Phoenix.

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00:30:53,960 --> 00:30:58,320
And here you can see the map, the picture, and across the way.

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00:30:58,320 --> 00:31:02,200
you can see the close proximity to the major health system.

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00:31:03,760 --> 00:31:06,220
So with that, I wanted to thank you for your time this morning.

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00:31:06,600 --> 00:31:11,400
We are and remain very focused on optimizing the value of our

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00:31:11,400 --> 00:31:15,620
fundate portfolio and driving value as we stabilize the

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00:31:15,620 --> 00:31:19,460
transitional assets in that portfolio and patiently time our

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00:31:19,460 --> 00:31:23,520
sales. And for fund nine, we remain really excited about

345
00:31:23,520 --> 00:31:26,740
the portfolio that we put together and about the

346
00:31:26,740 --> 00:31:32,700
opportunity set that's ahead of us. Dislocation and changes in fundamentals like we have been seeing

347
00:31:32,700 --> 00:31:38,060
tend to create some of the most interesting opportunities in our space. And while the

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00:31:38,060 --> 00:31:44,400
markets reset a bit more slowly than certainly we'd hoped, we are continuing to see a growing

349
00:31:44,400 --> 00:31:50,360
number of interesting opportunities and pricing that's attractive within the markets and the sectors

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00:31:50,360 --> 00:31:51,820
that we are targeting.

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00:31:52,820 --> 00:31:56,500
So with that, I'm happy to answer any questions.

352
00:31:58,060 --> 00:32:00,140
Thank you. Any board member question or comments?

353
00:32:02,580 --> 00:32:03,480
If not, can I get a motion?

354
00:32:07,020 --> 00:32:08,260
I'll move we will see you in file.

355
00:32:08,820 --> 00:32:09,200
Thank you, Art.

356
00:32:09,860 --> 00:32:10,360
I'll second.

357
00:32:11,060 --> 00:32:11,600
Thank you, Taylor.

358
00:32:34,170 --> 00:32:36,550
Motion passes. Thank you, Chadwick and Jeffrey.

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00:32:37,010 --> 00:32:41,410
On to the second item, which is the annual investment presentation

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00:32:41,410 --> 00:32:44,130
of PGM Real Estate and on to you, Dan.

361
00:32:44,830 --> 00:32:45,430
Thank you.

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00:32:47,030 --> 00:32:55,110
A Sarah contributed about 60 million to PGM's core fund in 2005, but the value grown

363
00:32:55,110 --> 00:32:59,110
up to about 182 million as of December 31st.

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00:32:59,850 --> 00:33:07,290
As I noted a little bit earlier, the PGM's price of fund is a core strategy and invests

365
00:33:07,290 --> 00:33:12,450
in fully stabilized income-producing properties using an open-ended fund structure.

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00:33:12,450 --> 00:33:19,430
As a core fund, core funds are typically looked at and compares into what they call the

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00:33:19,430 --> 00:33:24,290
Odyssey universe, which is the universe's comprised of the biggest core funds out

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00:33:24,290 --> 00:33:24,510
there.

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00:33:24,690 --> 00:33:28,190
I think there's 26 funds in it, and PGM guys can correct me on that number.

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00:33:29,310 --> 00:33:35,210
PGM, the PGM's fund, the price of fund I think is about the ranked about the top third

371
00:33:35,210 --> 00:33:39,230
in size and scope within that entire universe.

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00:33:40,130 --> 00:33:45,190
Core funds are designed to take less risk, and thus lower expected returns than riskier

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00:33:45,190 --> 00:33:50,110
value add or opportunistic strategies over the long term, but PGM has done very well.

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00:33:51,070 --> 00:33:55,830
Now I'll turn it over to PGM's core fund director of business development, Steve Moan,

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00:33:56,050 --> 00:34:01,770
who will then introduce the funds and the portfolio managers online, which are James Glenn and

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00:34:01,770 --> 00:34:02,270
Lexi Wolf.

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00:34:03,270 --> 00:34:03,770
With that, Steve.

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00:34:04,370 --> 00:34:11,170
Thank you, Dan. And thank you all for having us today. I'm joined by, as

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00:34:11,170 --> 00:34:15,630
Dan mentioned, James Glenn and Lexi Wolfe from the Prisa Portfolio Management

380
00:34:15,630 --> 00:34:20,570
team, as well as my colleagues Simone Nelson on our business development team.

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00:34:21,410 --> 00:34:27,250
Since we saw you a year ago, things have been very stable at PGM as a platform and with

382
00:34:27,250 --> 00:34:31,850
the real estate and Prisa team, no changes on the team to note. So we can spend our

383
00:34:31,850 --> 00:34:35,870
time today, I'm really digging in and update on the fondness performance.

384
00:34:36,590 --> 00:34:42,730
Before I turn it over to James and Lexi, I just wanted to skip ahead to slide nine

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00:34:42,730 --> 00:34:47,970
if we could, which shows Ventura County's capital account statement in effect.

386
00:34:48,710 --> 00:34:54,110
This shows the original contributions. We've seen this in the past of 60 million back in 2005.

387
00:34:54,110 --> 00:34:57,990
Thank you for your trust with us for the past 21 years now.

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00:34:57,990 --> 00:35:04,630
and also just shows activity from income and appreciation over that time period with the current

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00:35:04,630 --> 00:35:11,310
NAV of a little over $182 million. Importantly that just to remind everyone the performance figures

390
00:35:11,310 --> 00:35:19,130
you see on the right here are showing Ventura County's specific dollar weighted returns or IRRs.

391
00:35:19,590 --> 00:35:25,010
And those account for any cash flows from additional contributions with draws as well as decisions

392
00:35:25,010 --> 00:35:30,570
on whether to have dividends that are paid quarterly by the fund, either paid out or re-invested

393
00:35:30,570 --> 00:35:35,170
in the funds. Those are specific to Ventura County. We have compared those here against

394
00:35:35,170 --> 00:35:41,110
the Odyssey Index, but just as a reminder, the Odyssey Index and benchmarks in general are

395
00:35:41,110 --> 00:35:49,050
time-weighted returns, and it's assumed that dividends are re-invested in other kind of changes

396
00:35:49,050 --> 00:35:54,250
in contributions of which are all from that universe. So not exactly apples to apples,

397
00:35:54,250 --> 00:36:00,490
but as Ventura County's contributions have remained relatively consistent over recent years,

398
00:36:00,990 --> 00:36:06,610
they are fairly applicable and incomparable here, so we've shown that just for comparison sake,

399
00:36:06,910 --> 00:36:12,330
and as you can see on the bottom right, Ventura County is currently having its dividends distributed

400
00:36:12,910 --> 00:36:20,130
to the plan. So we'll get more into the reasons for what you see in the one year and other periods

401
00:36:20,130 --> 00:36:26,390
here of Priests' recent strong out performance and I'll let Lexi and James take it from here.

402
00:36:28,590 --> 00:36:34,090
Okay, great. Thanks, Steve. Good morning, everybody. Can you hear me okay?

403
00:36:34,410 --> 00:36:41,110
Just want to make sure. Yes, yes. Okay, thank you. We've had a bit of a snow storm in the northeast

404
00:36:41,870 --> 00:36:48,990
over the last day or two, so I'm in my home office. It doesn't seem like that impacted you,

405
00:36:48,990 --> 00:36:55,210
which is nice. Let's start. I'll just put our comments in a little bit of

406
00:36:55,210 --> 00:37:00,410
context by spending a moment just on the market more broadly. So if we could

407
00:37:00,410 --> 00:37:04,850
turn to page seven, I'm not going to go into all these bullet points, but I'll

408
00:37:04,850 --> 00:37:10,850
just give you know, a brief perspective. You know, at this point, we went through

409
00:37:10,850 --> 00:37:16,450
a couple of years or more of repricing, you know, in response to higher

410
00:37:16,450 --> 00:37:23,530
interest rates and inflation. And we've been, I think, in a kind of stable environment for the

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00:37:23,530 --> 00:37:32,290
past year, starting to see values grow again, really all driven by income growth. So in terms

412
00:37:32,290 --> 00:37:38,050
of cap rates and discount rates and the metrics the appraisers use, those have pretty much

413
00:37:38,050 --> 00:37:45,470
stable. And with, with cap rates, you know, around the 5% mark and discount rates, you know,

414
00:37:45,470 --> 00:37:52,050
north of seven, I think the prazers are comfortable where those lie in the context of, you know,

415
00:37:52,050 --> 00:37:58,390
where interest rates are today. And so what we're starting to see now is modest appreciation.

416
00:37:59,250 --> 00:38:05,590
Again, you know, more driven by growing the income of the properties. And we expect that to

417
00:38:05,590 --> 00:38:08,510
continue and actually improve going forward.

418
00:38:09,530 --> 00:38:17,170
So our view is that it's a decent time for long-term investors to be in the core space.

419
00:38:17,370 --> 00:38:22,690
We think you're going to start seeing more normalized returns for core.

420
00:38:23,690 --> 00:38:30,870
Dan mentioned it's more of an income driven return profile with inflationary type appreciation.

421
00:38:30,870 --> 00:38:45,890
So we think we're going to move from the kind of mid-single digit to overturn rates we're seeing now and probably start getting more like high single digit rates of return as the income growth improves.

422
00:38:46,790 --> 00:38:56,850
And there's a couple of reasons why one is supply and demand balances are more or less in shock. There's some differences across markets and property types.

423
00:38:56,850 --> 00:39:01,250
But for the most part, we're seeing supply pipelines have receded.

424
00:39:01,830 --> 00:39:06,930
The demand side is decent, we're even seeing recovery in office now.

425
00:39:08,310 --> 00:39:12,330
And then there's some pockets of strength like the retail market is strong, some of the

426
00:39:12,330 --> 00:39:17,630
alternative housing sectors we've been investing in are doing very well.

427
00:39:18,370 --> 00:39:23,030
And then some of the sectors that we're struggling like office has started to turn the corner

428
00:39:23,030 --> 00:39:25,670
and we're actually seeing some strength in some of the key markets.

429
00:39:25,670 --> 00:39:32,290
like New York City. So that's kind of a backdrop we'll get into the fund in

430
00:39:32,290 --> 00:39:36,370
more detail and comment on, you know, some of the sectors in more detail.

431
00:39:36,810 --> 00:39:41,910
But any questions on that, or we'll move forward if done.

432
00:39:45,430 --> 00:39:46,250
No questions, okay.

433
00:39:46,970 --> 00:39:52,130
Great. Steve covered nine. Let's jump to 10 please.

434
00:39:55,370 --> 00:39:56,650
So, you know, much like

435
00:39:56,650 --> 00:40:02,490
the platform that the team has been very stable. There really hasn't been any changes

436
00:40:02,490 --> 00:40:09,730
at all in recent years. I've been working alongside Joanna now for coming up on a dozen

437
00:40:09,730 --> 00:40:18,770
years on the fund. And with the platform, Lexi has also been with us for 15 years total

438
00:40:18,770 --> 00:40:24,310
most of that on Prisa. Kay Murray is out in San Francisco. She's our West Coast representative

439
00:40:24,310 --> 00:40:28,950
been with the fund and platform for a handful of years, and then Clay

440
00:40:28,950 --> 00:40:34,110
Clements is also with us in New Jersey. And of course, we have a dedicated

441
00:40:34,110 --> 00:40:39,690
analytics team and then leverage the full resources of the PGM, real estate

442
00:40:39,690 --> 00:40:45,690
platform, 75 asset managers over 50 transactions, professionals and a large

443
00:40:45,690 --> 00:40:46,830
research team.

444
00:40:49,270 --> 00:40:51,630
Let's go forward to 11, please.

445
00:40:53,590 --> 00:41:02,130
So during this period of change with the reprising and now what's been a fairly modest recovery

446
00:41:02,130 --> 00:41:09,270
to date, we've continued to drive the fund's strategy and deliver pretty healthy outperformance

447
00:41:09,270 --> 00:41:15,710
that's been pre-notable in the recent time periods and then consistently over the longer-term

448
00:41:15,710 --> 00:41:24,610
time series and really coming into the repricing period in mid-2022, we had the fund position

449
00:41:24,610 --> 00:41:32,790
with a lower risk positioning, so lower debt levels, a very healthy balance sheet, and

450
00:41:32,790 --> 00:41:39,610
that not only allowed us to weather the storm a bit better than average, it also allowed

451
00:41:39,610 --> 00:41:40,010
us.

452
00:41:40,010 --> 00:41:42,850
and what's changed, I'd say, in the last year or 18 months

453
00:41:42,850 --> 00:41:44,950
is we've kind of gone more on the offense.

454
00:41:45,370 --> 00:41:48,570
So Lexi will touch on transactions in more detail,

455
00:41:48,590 --> 00:41:52,170
but we've shifted and pivoted and taken advantage

456
00:41:52,170 --> 00:41:54,990
of some of the opportunities we've seen in the market

457
00:41:55,690 --> 00:41:57,970
in the last year or two.

458
00:41:58,650 --> 00:42:02,210
And we've been able to do that because our leverage was lower.

459
00:42:02,690 --> 00:42:05,910
We didn't have any major obligations to fund.

460
00:42:06,750 --> 00:42:09,390
And so we've been much more active investing

461
00:42:09,390 --> 00:42:15,610
and we've taken the opportunity to normalize our leverage levels as a result.

462
00:42:15,830 --> 00:42:20,830
So we've used some debt capital, we're going to be probably in line with the benchmark

463
00:42:20,830 --> 00:42:26,790
when we get the Q4 numbers in a couple of weeks, and we're okay with that.

464
00:42:26,890 --> 00:42:32,990
We've used debt to be accretive again to long-term returns, and then we've seen the investing

465
00:42:32,990 --> 00:42:36,050
we've done be quite accretive to perform it.

466
00:42:36,050 --> 00:42:42,150
So, on average, the investments we've made in the last 18 months or so are up over

467
00:42:42,150 --> 00:42:43,650
cost of 14 percent.

468
00:42:44,210 --> 00:42:46,750
So, they've been, you know, a creative investment for the fund.

469
00:42:46,890 --> 00:42:52,430
They've also helped us, you know, move the fund's strategy and Lexi will talk about that

470
00:42:52,430 --> 00:42:52,910
in a second.

471
00:42:54,070 --> 00:42:58,670
You know, on the flip side, we've continued to sell non-strategic assets.

472
00:42:58,670 --> 00:43:03,770
We're always trying to upgrade the quality of the portfolio and we've been, you know,

473
00:43:03,830 --> 00:43:05,130
very active in doing that.

474
00:43:05,130 --> 00:43:12,290
we sold some office buildings and some non-strategic apartments and retail and industrial and we've

475
00:43:12,290 --> 00:43:19,790
re-invested that capital into investments we think will outperform going forward. And then finally,

476
00:43:19,890 --> 00:43:25,730
I kind of mentioned in the market overview, we do think NOI growth for 2026 and beyond, we do

477
00:43:25,730 --> 00:43:34,410
expect some acceleration. We're budgeting about 4% growth for the year and we do think that will help

478
00:43:34,410 --> 00:43:38,270
drive a little higher appreciation and in-turn total returns.

479
00:43:41,760 --> 00:43:42,660
Okay, I'll move forward.

480
00:43:43,560 --> 00:43:48,500
Next page provides a snapshot of fair amount of data here.

481
00:43:48,860 --> 00:43:51,840
So at $30 billion, Dan touched on it.

482
00:43:52,100 --> 00:43:55,740
We are the third largest fund in the Odyssey core benchmark.

483
00:43:56,380 --> 00:44:02,160
There's 25 funds, a couple hundred billion of equity capital.

484
00:44:03,520 --> 00:44:05,980
And we do think that's an advantage because we think

485
00:44:05,980 --> 00:44:11,060
we can obviously diversify the fund well but also own high quality buildings and some of the

486
00:44:11,060 --> 00:44:18,340
larger markets where some of the smaller funds that that's tricky to do. We're 92% least

487
00:44:19,700 --> 00:44:26,620
pretty healthy in that respect. The leverage level again is as well below, third quarter was 25 and

488
00:44:26,620 --> 00:44:34,520
a half, fourth quarter. This book is all Q3 because we sent it in no bit early. We don't have the final

489
00:44:34,520 --> 00:44:41,840
final reports for Q4, but most of the data is in. Our leverage moved up into the 26,

490
00:44:42,340 --> 00:44:48,720
high 26 percent range in Q4 well below our 35 percent maximum.

491
00:44:50,320 --> 00:44:57,800
As I said, we've been busy investing, so we had another active quarter in Q4, and for the year,

492
00:44:57,800 --> 00:44:59,940
We ended up...

493
00:45:00,000 --> 00:45:28,960
$2.4 billion of new investments, so that's more of a normal year for us, maybe a little bit above average, and again, taking advantage of opportunities we're seeing in the market right now. For sales, we ended up closing for 2025 1.1 billion, so that was about a 40% increase over the previous year, so saw some more liquidity there. And then finally, in terms of contributions,

494
00:45:28,960 --> 00:45:31,400
We also saw pickup in the 4th quarter.

495
00:45:31,760 --> 00:45:37,920
We had about 500 million come into the fund, finished the year on a strong note.

496
00:45:38,080 --> 00:45:43,340
And then for 2025, we drew an over 900 million of capital.

497
00:45:44,300 --> 00:45:50,260
So starting to see that turn, but starting to see flows come back into the core space,

498
00:45:50,580 --> 00:45:52,960
and I do expect that to continue.

499
00:45:53,920 --> 00:45:58,520
In terms of redemption, we made a large redemption payment in Q4.

500
00:45:58,960 --> 00:46:08,440
just under $500 million and that brought our redemption queue down to just under $1.5 billion.

501
00:46:09,320 --> 00:46:12,580
And so that's over 60% below peak.

502
00:46:13,400 --> 00:46:19,180
It represents about 6% of our NAV. The Odyssey average is about double that.

503
00:46:19,640 --> 00:46:23,240
So, you know, while the queue is still there, we're making good progress.

504
00:46:23,560 --> 00:46:28,080
Our hope is to extinguish the execute in 2026.

505
00:46:29,100 --> 00:46:32,380
And again, it's well below average for Odyssey.

506
00:46:35,240 --> 00:46:36,740
Next page, 13.

507
00:46:37,160 --> 00:46:38,960
Just touching on returns.

508
00:46:39,980 --> 00:46:44,640
These are net time-weight returns for pre-set on the benchmark.

509
00:46:46,300 --> 00:46:50,460
We've had a very healthy last year or so.

510
00:46:51,160 --> 00:46:53,500
I think a lot of that's coming from the funds positioning.

511
00:46:53,840 --> 00:46:56,300
Our retail portfolio is doing very well.

512
00:46:57,080 --> 00:47:00,840
some of the alternative housing that Lexi will talk about is doing well.

513
00:47:02,040 --> 00:47:06,240
And we've had outperformance over 200 basis points versus Odyssey.

514
00:47:07,080 --> 00:47:11,480
And then when you look at the longer term time series, it's pretty consistent theme.

515
00:47:12,160 --> 00:47:17,960
We've managed to deliver out performance in the kind of 30 to 75 basis point range

516
00:47:17,960 --> 00:47:20,180
in all these key time periods.

517
00:47:23,680 --> 00:47:28,920
The next page looks a little more closely at some of the drivers

518
00:47:28,920 --> 00:47:32,460
and so these are unlevered property type returns

519
00:47:32,460 --> 00:47:36,540
for the quarter of Q3 in this case and the trailing year.

520
00:47:37,660 --> 00:47:40,960
And pretty decent strength everywhere.

521
00:47:41,260 --> 00:47:44,780
So there's really not many places that values are still falling.

522
00:47:44,920 --> 00:47:47,400
The one exception is Life Science Lab.

523
00:47:48,960 --> 00:47:52,140
We have less than 2% of the front in that space.

524
00:47:52,140 --> 00:47:56,720
It's been a long-term outperformer, but there's been some challenges

525
00:47:56,720 --> 00:48:01,920
is in terms of both supply and demand, but we can touch on, but that's really the last

526
00:48:01,920 --> 00:48:09,020
remaining place, like a negative value growth at this stage. Even office has turned, we've

527
00:48:09,020 --> 00:48:15,060
seen a couple quarters of positive appreciation. And then you see some areas of very strong

528
00:48:15,060 --> 00:48:21,020
return. So retail, you know, almost 10% return in the last year. So the alternative housing

529
00:48:21,020 --> 00:48:25,720
sector, senior housing, manufactured housing, also double digit returns, and you're seeing

530
00:48:25,720 --> 00:48:26,800
strength there.

531
00:48:29,110 --> 00:48:32,990
With that, I will turn it to Lexi to talk a little bit more detail about

532
00:48:32,990 --> 00:48:40,690
property type strategy alternatives and transactions. Great. Thanks James if we can move ahead to

533
00:48:40,690 --> 00:48:41,730
the next slide.

534
00:48:46,020 --> 00:48:51,160
So we're always actively managing process property type exposures and I think when

535
00:48:51,160 --> 00:48:56,520
we look across the board today we're very comfortable with our allocations and what we really like

536
00:48:56,520 --> 00:49:01,820
is about 85% of the fund is invested in our high conviction property types so

537
00:49:01,820 --> 00:49:06,900
that includes industrial, residential, alternatives, housing, and grocery

538
00:49:06,900 --> 00:49:12,760
anchor retail. I think when you look across the board here likely the biggest

539
00:49:12,760 --> 00:49:17,720
shifts that you'll see in the near term is in traditional office. We've brought

540
00:49:17,720 --> 00:49:22,120
that down quite a bit. We like that we're below 13%. We like our underweight

541
00:49:22,120 --> 00:49:28,140
today, but we'd like to bring that down a little bit more into call at the 10% range or so.

542
00:49:28,880 --> 00:49:33,580
And we think that that's achievable. In the near term, we've been successful in selling

543
00:49:33,580 --> 00:49:39,520
some office buildings and we'll see growth in other areas of fund. I think the other place

544
00:49:39,520 --> 00:49:44,440
where you'll see a shift in our allocations is here on the alternative property types. You'll

545
00:49:44,440 --> 00:49:50,620
see that we're targeting about a 20 to 25% exposure overall. I'll talk about a little bit more on

546
00:49:50,620 --> 00:49:56,160
the next slide on how we intend to get there but that's been an area we've been actively investing

547
00:49:56,160 --> 00:50:01,540
in as James alluded to and these are three Q numbers. So in the fourth quarter again we were

548
00:50:01,540 --> 00:50:07,780
active investing in alternatives and that numbers come a little bit closer to 17%. So again I'll

549
00:50:07,780 --> 00:50:12,880
go through the alternatives on in a little bit more detail on the next slide. Then I think when

550
00:50:12,880 --> 00:50:20,140
you look at industrial apartment and retail in general, pretty comfortable with our allocations there,

551
00:50:20,140 --> 00:50:23,920
I think what you'll continue to see from us is active upgrading.

552
00:50:24,700 --> 00:50:30,360
So selling some of our older assets that may have maximized value and replacing that

553
00:50:30,360 --> 00:50:34,100
with newer and stronger assets through our acquisitions activities.

554
00:50:34,400 --> 00:50:40,640
So that includes a mix of existing assets that were able to acquire attractive price points

555
00:50:40,640 --> 00:50:46,140
along with continuing our bill to core program in these property types.

556
00:50:47,500 --> 00:50:52,860
So I think if we go to the next slide, just talking about the alternatives a little bit

557
00:50:52,860 --> 00:50:58,400
more, many of you are probably familiar with the fact that Prisa has been investing in

558
00:50:58,400 --> 00:51:04,620
alternative property types for a long time, over 20 years, anchors for that alternative

559
00:51:04,620 --> 00:51:10,760
portfolio today, our self-sourage and life sciences, but what we've been focused on investing

560
00:51:10,760 --> 00:51:14,860
a bit more recently is more of the housing alternatives.

561
00:51:15,300 --> 00:51:18,760
So manufactured housing, senior housing, and single-family rental.

562
00:51:19,560 --> 00:51:23,740
And today those property types represent about 4.5% of the funds.

563
00:51:24,200 --> 00:51:31,360
So really our goal in getting to that 20 to 25% exposure that I mentioned is effectively

564
00:51:31,360 --> 00:51:37,240
doubling our exposure to the alternative property types in the housing segment.

565
00:51:37,240 --> 00:51:43,240
So I think talking about those in a little bit more detail, manufactured housing, we started

566
00:51:43,240 --> 00:51:49,700
investing there back in 2021, really leveraging the experience of our platform, our value

567
00:51:49,700 --> 00:51:55,740
ad fund, it started investing there in 2017, that's been a very successful investment.

568
00:51:56,260 --> 00:52:01,080
We started our second programmatic joint venture about a year ago.

569
00:52:01,080 --> 00:52:06,740
We acquired a large 14-asset portfolio in the fourth quarter, so that's what helped

570
00:52:06,740 --> 00:52:13,080
to boost our alternative's allocation overall, and now today we own over 30 assets across

571
00:52:13,080 --> 00:52:18,640
the country and that manufactured housing allocations over 3% at the end of the fourth quarter.

572
00:52:20,120 --> 00:52:25,380
Senior housing is another property type where we've really been able to leverage the track

573
00:52:25,380 --> 00:52:27,580
record and experience of our program.

574
00:52:27,580 --> 00:52:41,520
We have a senior housing team that's been investing in the space since 1998, so the better part of the 27 plus your track record in that space that we've been able to leverage since we made our first investment in 2021.

575
00:52:42,540 --> 00:52:53,860
We acquired our seventh community in the third quarter, and so we did that alongside an operator that we have a very long track record and experience with.

576
00:52:55,180 --> 00:53:01,920
single-family rentals. This is a smaller allocation that we have today. We own two communities

577
00:53:01,920 --> 00:53:06,660
and part of the third. Recognize this is a property type that has been in the press

578
00:53:07,400 --> 00:53:12,120
recently with the current administration. And so what I'd say about the profile of our

579
00:53:12,120 --> 00:53:17,580
single-family rental exposure, those three communities that I mentioned are all new development.

580
00:53:18,120 --> 00:53:23,100
So we are mostly focused in a build-for-rent space and so we're adding to the housing stock.

581
00:53:23,100 --> 00:53:28,860
We're not competing with individual buyers on the MLS, which is where the current administration has been focused.

582
00:53:29,720 --> 00:53:35,340
Our pace overall in terms of single-family rentals has been slow and measured.

583
00:53:35,920 --> 00:53:39,420
And we think that that's been prudent as we continue to learn about the space.

584
00:53:40,060 --> 00:53:43,380
And overall, we are seeing more compelling risk-adjusted returns elsewhere,

585
00:53:43,560 --> 00:53:46,880
manufactured housing and senior housing as James alluded to.

586
00:53:47,060 --> 00:53:51,080
But at the end of the day when we look at single-family rentals,

587
00:53:51,080 --> 00:53:54,180
It's a large segment of the space that we like longer term.

588
00:53:54,920 --> 00:54:01,440
So in the near term, we'll largely continue to monitor the space especially on the regulatory

589
00:54:01,440 --> 00:54:02,080
side.

590
00:54:03,420 --> 00:54:06,640
Then I think the last piece here is data centers.

591
00:54:07,000 --> 00:54:13,640
This is a space we wanted to re-enter for some time, but we wanted to be thoughtful about

592
00:54:13,640 --> 00:54:16,480
the execution when we did re-enter that data center space.

593
00:54:16,480 --> 00:54:23,600
And what we've really learned about data centers over the years and what we've observed is the demand of shifting more towards

594
00:54:23,600 --> 00:54:26,280
hyperscale type facilities.

595
00:54:26,620 --> 00:54:29,340
But the challenge with that is they're very large investments.

596
00:54:29,760 --> 00:54:36,320
And we wanted to ensure that we had the appropriate levels of diversification within our data center exposure.

597
00:54:36,700 --> 00:54:45,160
So what we were able to structure is a co-investment alongside PGM's global data center fund for investments in the US.

598
00:54:45,160 --> 00:54:50,120
And we actually close on our first co-investment during the fourth quarter.

599
00:54:50,440 --> 00:54:55,680
So on our fourth quarter of materials, you'll now see that as a current investment in the fund.

600
00:54:56,020 --> 00:55:03,360
So I think all of these are very good examples of how we've leveraged the expertise of our platform,

601
00:55:03,640 --> 00:55:08,360
our relationships in order to execute efficiently in these property types.

602
00:55:08,360 --> 00:55:09,480
So

603
00:55:11,820 --> 00:55:17,580
if we go to the next slide, here we'll talk a little bit more about our acquisitions

604
00:55:17,580 --> 00:55:18,140
activity.

605
00:55:18,520 --> 00:55:25,540
As James mentioned, we have shifted to the offense in recent years in 2022 during the

606
00:55:25,540 --> 00:55:26,700
repricing environment.

607
00:55:27,500 --> 00:55:33,600
We have very limited deal activity and we really started investing again towards the end of 2023.

608
00:55:33,600 --> 00:55:41,620
And what we really saw in 2024 and in 2025 is a lot of buyers continue to be on the

609
00:55:41,620 --> 00:55:47,600
sidelines. And that created a lot of compelling investment opportunities for us. These are

610
00:55:47,600 --> 00:55:53,740
deals that are very much in line with our strategy. And as James said, the deals that we've

611
00:55:53,740 --> 00:56:01,180
done since late 2023 on average are valued about 14 percent above cost over relatively short

612
00:56:01,180 --> 00:56:08,960
pull periods. So we feel very good about those investments and that entry point. The other place

613
00:56:08,960 --> 00:56:15,960
where we've been active is rebuilding our build-to-core pipeline. We effectively went on

614
00:56:15,960 --> 00:56:21,280
pause with build-to-core development as we saw elevated supply in a number of markets but we believe

615
00:56:21,280 --> 00:56:27,660
now is the time to start new construction because we'll be able to deliver new product as those existing

616
00:56:27,660 --> 00:56:33,120
supply pipelines are absorbed. So we've started new projects in apartments,

617
00:56:33,480 --> 00:56:39,020
industrial, and we expect they'll be delivering again at the right time. So

618
00:56:39,020 --> 00:56:46,380
going forward, we continue to have a large pipeline with optionality, all deals

619
00:56:46,380 --> 00:56:49,560
in line with our strategy. So that includes some of these alternative housing

620
00:56:49,560 --> 00:56:54,380
programs that I mentioned, other built-up for developments, and we continue to

621
00:56:54,380 --> 00:56:57,920
evaluates and we'll move ahead at the right time.

622
00:57:00,880 --> 00:57:02,900
So, if we can go to the next slide,

623
00:57:03,560 --> 00:57:05,480
here we'll just wrap quickly on debt.

624
00:57:05,860 --> 00:57:08,080
I think this James prefaced a little bit earlier.

625
00:57:08,640 --> 00:57:11,800
Our third quarter leverage is at about 25 and a half percent.

626
00:57:12,380 --> 00:57:14,720
That's below the Odyssey Benchmark

627
00:57:14,720 --> 00:57:16,200
and that was really intentional,

628
00:57:16,200 --> 00:57:18,260
just given the broader uncertainty in the market

629
00:57:18,260 --> 00:57:19,600
over the last couple of years.

630
00:57:20,160 --> 00:57:22,000
But now that debt is a creative again

631
00:57:22,000 --> 00:57:24,480
and we're seeing broader debt availability.

632
00:57:24,480 --> 00:57:29,460
Our plan was to move that leverage to more normalize levels closer to the benchmark,

633
00:57:29,800 --> 00:57:36,800
and as James said in the fourth quarter, our LTV ended in the higher 26% range.

634
00:57:37,840 --> 00:57:44,120
I think looking ahead at our maturity schedule overall, our maturity schedule is attractive.

635
00:57:45,080 --> 00:57:49,660
2025 was a very strong year in terms of debt execution with respect to the fund,

636
00:57:49,660 --> 00:57:56,320
and that does include extending three large office loans with minimal to no paydown at favorable rates.

637
00:57:57,000 --> 00:58:03,740
I'd say the other place that we were active in 2025 is getting ahead of some of our 26 and 27 maturities.

638
00:58:04,460 --> 00:58:11,320
So we were able to address over 40% of those maturities to get to the maturities schedule you see today.

639
00:58:11,320 --> 00:58:17,840
Okay, and when we look at the maturities in 26 and 27, in general, these are assets that

640
00:58:17,840 --> 00:58:22,540
have modest leverage and roughly the 50 percent range, so we don't have major concerns

641
00:58:22,540 --> 00:58:26,640
in terms of our ability to extend or refinance those loans.

642
00:58:27,160 --> 00:58:32,960
So overall, we feel the debt for Prusa is well positioned going forward.

643
00:58:36,660 --> 00:58:39,220
I think that's the end of our prepared remarks.

644
00:58:39,220 --> 00:58:44,440
If anyone has any questions on anything that we've covered today.

645
00:58:45,180 --> 00:58:47,680
Thank you, Lexi. Any board number question or comments?

646
00:58:47,960 --> 00:58:48,660
Yeah.

647
00:58:50,080 --> 00:58:55,480
In your alternatives, you had the single family rentals.

648
00:58:56,080 --> 00:58:58,340
Do you construct them or do you buy them?

649
00:59:00,180 --> 00:59:02,760
So it's a little bit of a mix of both.

650
00:59:03,120 --> 00:59:07,440
We are not the developers there, but we've partnered with the developers

651
00:59:07,440 --> 00:59:12,240
to acquire those homes. So we are adding to the supply.

652
00:59:13,800 --> 00:59:30,180
Now, the president and at least one of the candidates for Governor and California have suggested that the acquisition of single family housing by cooperation should be prohibited. How does that fit into your plans?

653
00:59:31,380 --> 00:59:42,340
So our understanding is really where the administration has been focused, is competing directly with buyers on the MLS for existing homes.

654
00:59:42,740 --> 00:59:56,700
That's not a strategy. We're really pursuing what we're focused on is the creation of new housing supply, which is independent from again competing directly with the homeowners or the home buyers on the MLS.

655
00:59:59,210 --> 00:59:59,870
Thank you.

656
01:00:00,660 --> 01:00:30,400
Mr. Chair. Yes. First of all, thank you very much. I thought that was an excellent presentation. And I'm just curious. I think it was on slide 16, which when you talked about the alternative investments. But you also said that one of the strategies is that you have been selling some older assets and replacing them with newer, newer ones. And I'm wondering if, if that goes across the board in all segments or are some segments, particularly

657
01:00:31,720 --> 01:00:40,500
old and the world has changed. I'm just wondering where are the older assets

658
01:00:40,500 --> 01:00:47,200
that you're selling? Sure. So probably the better place to look is slide 15. I

659
01:00:47,200 --> 01:00:51,820
say for the alternatives is we're adding newer exposure there that's

660
01:00:51,820 --> 01:00:56,760
probably less of a focus. And I think where we've really been active in that

661
01:00:56,760 --> 01:01:00,540
that upgrade strategy has been industrial apartment and retail.

662
01:01:01,440 --> 01:01:08,840
So for example, in retail this year, we sold some 20 plus year old retail centers that

663
01:01:08,840 --> 01:01:14,960
didn't have a grocer, and we reinvested those proceeds into new Whole Foods anchor developments

664
01:01:14,960 --> 01:01:16,340
that are largely released.

665
01:01:17,000 --> 01:01:22,840
So I think that's a really good example of where we've been able to sell what we would call

666
01:01:22,840 --> 01:01:27,060
more of a lively retail asset, you don't get the benefit of the grocer and replacing those

667
01:01:27,060 --> 01:01:32,440
proceeds into higher growth opportunities going forward. On the apartment side, I think

668
01:01:32,440 --> 01:01:38,500
where you're seeing some of that is maybe older product that might require a renovation strategy

669
01:01:38,500 --> 01:01:44,940
that isn't necessarily your creative or locations that may be less out of favor and replacing that

670
01:01:44,940 --> 01:01:51,020
exposure with some of our new bill to core developments that I address. Industrial, similar vein,

671
01:01:51,020 --> 01:01:57,200
older product that we might be able to replace your bill to port development or stronger locations that we've been targeting.

672
01:01:57,540 --> 01:02:02,040
So I think those are really the property types for you're going to see as active with that strategy.

673
01:02:02,600 --> 01:02:03,520
Thank you so much.

674
01:02:03,880 --> 01:02:04,260
Yeah.

675
01:02:05,360 --> 01:02:06,600
Thank you, any other questions?

676
01:02:07,600 --> 01:02:08,600
If not, can I get a motion?

677
01:02:10,300 --> 01:02:11,180
Oregon moves.

678
01:02:11,920 --> 01:02:12,360
Congratulations.

679
01:02:12,640 --> 01:02:13,280
Thank you.

680
01:02:16,690 --> 01:02:17,190
Thank you.

681
01:02:17,850 --> 01:02:18,170
Thank you.

682
01:02:18,870 --> 01:02:19,450
Thank you.

683
01:02:19,890 --> 01:02:20,270
Thanks all.

684
01:02:20,270 --> 01:02:20,270
All

685
01:02:38,280 --> 01:02:40,040
right,

686
01:02:45,790 --> 01:02:49,990
motion passes. Thank you again, Steve, Joanna, James, and Lexi.

687
01:02:50,550 --> 01:02:55,210
We're going to take a 10-minute break and we'll get into the second part of this, so

688
01:02:55,210 --> 01:02:57,270
we'll be back at 10 o'clock.

689
01:03:18,350 --> 01:03:22,230
Then the committee

690
01:14:29,180 --> 01:14:33,820
are proposing that the path forward for PAS modernization be Vitex velocity

691
01:14:33,820 --> 01:14:38,580
entity system and next steps are to enter contract negotiations with Vitec and bring back

692
01:14:38,580 --> 01:14:43,960
a proposed contract for the committee review and for board approval.

693
01:14:45,020 --> 01:14:50,640
In addition, staff will analyze what additional consulting and our staff resources may be

694
01:14:50,640 --> 01:14:55,780
needed to support this project and staff are happy to answer any questions on this item.

695
01:15:00,400 --> 01:15:09,720
At one point, Leah mentioned that if we went to velocity, we would not have to pay somebody

696
01:15:09,720 --> 01:15:16,220
else to host the data. Is that the case?

697
01:15:17,980 --> 01:15:27,100
Vitech would still be hosting the velocity solution, instead of being currently we are

698
01:15:27,100 --> 01:15:32,820
in their hosting environment by moving to a SaaS provider. We are essentially moving

699
01:15:32,820 --> 01:15:40,820
into Vitech's cloud. So in this instance, they use Amazon Web Services. So our environment

700
01:15:40,820 --> 01:15:45,980
would be hosted in Amazon Web Services more so than a physical data center on the

701
01:15:45,980 --> 01:15:53,980
East Coast. So it's more robust and redundant having different geographical locations for

702
01:15:55,280 --> 01:16:01,740
support and consistency with uptime. But we won't have a shepherd contract for hosting.

703
01:16:02,240 --> 01:16:09,700
Correct. It would all be under one contract. Yeah. That's correct. That extra VSG hosting contract

704
01:16:09,700 --> 01:16:15,640
then goes away and then we pay for essentially the hosting gets paid for through the SaaS subscription.

705
01:16:15,980 --> 01:16:17,860
and a better hosting.

706
01:16:20,520 --> 01:16:22,780
I'm supportive of the recommendation

707
01:16:22,780 --> 01:16:26,420
for the reasons stated, simplicity,

708
01:16:28,640 --> 01:16:30,600
continuity, all those things.

709
01:16:31,940 --> 01:16:34,980
So I think it's a good idea to go that way.

710
01:16:37,090 --> 01:16:39,710
I have a question or a comment.

711
01:16:40,190 --> 01:16:43,370
I appreciate the committee's work on this

712
01:16:43,370 --> 01:16:44,470
and staff's work on this.

713
01:16:44,490 --> 01:16:45,050
This is great.

714
01:16:45,250 --> 01:16:48,510
And these are tedious things to have to do.

715
01:16:48,510 --> 01:16:54,590
so thank you all. And I too am supportive of the recommendation, but I just wanted to make

716
01:16:54,590 --> 01:17:01,650
a comment or perhaps it's a question. I know the end of life for V3 is July 11th, 2028,

717
01:17:01,950 --> 01:17:08,730
which is more than 20 months from now. And I know that the estimated time at this moment is maybe

718
01:17:08,730 --> 01:17:18,170
a 20-month cycle. But we also are very well aware of these kinds of projects and how sometimes

719
01:17:18,170 --> 01:17:31,210
they might take longer than they think. So my tech has said that they will keep V3 operational

720
01:17:31,210 --> 01:17:36,630
until the upgrade is complete, which is a great thing. And the only thing I'm wondering

721
01:17:36,630 --> 01:17:48,150
is if the upgrade isn't completed by the end of life and they are not supporting and they're

722
01:17:48,150 --> 01:17:49,410
how they're going to do that.

723
01:17:53,960 --> 01:17:56,740
Vitech did state that they would keep

724
01:17:56,740 --> 01:17:58,000
be through operational.

725
01:17:58,680 --> 01:18:03,400
They're very committed to moving off this environment

726
01:18:03,400 --> 01:18:06,880
that they have right now because for my understanding,

727
01:18:07,060 --> 01:18:09,900
is it is costing them a lot to keep this up.

728
01:18:10,100 --> 01:18:12,940
So there is driver behind the fact to keep,

729
01:18:13,280 --> 01:18:15,260
to move us to the new environment.

730
01:18:16,040 --> 01:18:20,120
At a certain point, if we were to upgrade,

731
01:18:20,120 --> 01:18:35,060
we would not be making any significant changes to the software, it would basically just be maintaining what we had up so ensuring that things are functional and can still be used until we can move into this new environment.

732
01:18:35,780 --> 01:18:47,040
So if they weren't able to get us live by the time our goal live date for velocity was our end of life for B3 would be they they would have to keep that environment up or

733
01:18:47,040 --> 01:18:53,920
figure another way to move us off the VSG hosting environment into maybe a different

734
01:18:53,920 --> 01:19:00,040
environment in their cloud still being able to run B3. So there are options, but I think

735
01:19:00,040 --> 01:19:07,140
it is in Vitex best interest that they would want to proceed to move us off timely for their

736
01:19:07,140 --> 01:19:15,220
own purposes as well. Thank you and obviously we're better off to go with Vitex in this case

737
01:19:15,220 --> 01:19:21,440
for all the reasons that you stated, but I do wonder if that commitment of theirs is

738
01:19:21,440 --> 01:19:24,740
a bit hollow, so we'll see, but I still am in support of it.

739
01:19:27,030 --> 01:19:27,210
Thank you.

740
01:19:28,710 --> 01:19:36,170
On this item, have they transferred any other public pension administration systems?

741
01:19:36,310 --> 01:19:40,030
Do you know what their timeframes were with this crossover?

742
01:19:41,630 --> 01:19:45,790
All of the systems that are on the current version are within the B3 hosting environment.

743
01:19:45,790 --> 01:19:52,810
were given the same end of life date. So they have either starting a migration process or an

744
01:19:52,810 --> 01:20:00,290
upgrade process prior to finding out the end of life or are in the same vote as us. So they are

745
01:20:00,290 --> 01:20:07,890
working potentially with a number of different pension systems, insurance systems. It depends

746
01:20:07,890 --> 01:20:16,590
on who is on the hosting environment, but Vitec, we are aware of one system that is currently

747
01:20:17,390 --> 01:20:24,930
moving forward with velocity here in California, but they were already on the track to modernization

748
01:20:24,930 --> 01:20:32,170
before receiving the end of life notification. So, Vitec is progressing through upgrades and

749
01:20:32,170 --> 01:20:40,260
operations from old systems to new systems, they have a specified project team that they

750
01:20:40,260 --> 01:20:45,820
had been for B3 or the hosting environment because it would be decommissioned at that

751
01:20:45,820 --> 01:20:46,100
point.

752
01:20:46,400 --> 01:20:46,620
Okay.

753
01:20:46,820 --> 01:20:52,200
And do we know what the increase of that, what our costs are?

754
01:20:53,240 --> 01:20:54,360
Not entirely.

755
01:20:54,580 --> 01:20:58,340
Those are some points of negotiation that we want to discuss with Vitec.

756
01:20:58,340 --> 01:21:03,580
is usually when they add new, they also add more expenses, so I would just be cautious on that.

757
01:21:03,900 --> 01:21:05,020
Absolutely, thank you.

758
01:21:05,980 --> 01:21:09,560
Any other questions or comments, if not, can I get a motion?

759
01:21:12,310 --> 01:21:13,790
Horton will move for approval.

760
01:21:14,530 --> 01:21:16,110
Goulays, Shacken, thank you.

761
01:21:32,800 --> 01:21:36,680
Thank you, motion passes, thank you to the committee, and thank you, Taylor.

762
01:21:37,400 --> 01:21:39,420
We'll be into new business now.

763
01:21:40,040 --> 01:21:43,120
Item A is a pension administration system subscription renewal.

764
01:21:43,720 --> 01:21:44,280
Bless you.

765
01:21:46,700 --> 01:21:47,260
Okay,

766
01:21:49,920 --> 01:21:55,420
this item is a final subscription renewal for V3 for annual support and maintenance

767
01:21:55,420 --> 01:21:59,440
that will take us through the end of life date or before if we come up before.

768
01:22:00,840 --> 01:22:06,280
And then of course we have our chief technology officer Leah here to speak more on this item

769
01:22:06,280 --> 01:22:07,700
and answer any questions.

770
01:22:08,960 --> 01:22:09,640
Thank you, Amy.

771
01:22:09,880 --> 01:22:16,020
As Amy mentioned, this is the contract renewal for V3 itself, the software through the

772
01:22:16,020 --> 01:22:22,580
end of life of 2028. We will be bringing back to the board in the next few months the renewal

773
01:22:22,580 --> 01:22:28,780
for the BSG hosting contract to take us through to the end of life. It's not currently up for

774
01:22:28,780 --> 01:22:33,820
renewal until August. So right now we just have the B3 support contract.

775
01:22:38,310 --> 01:22:39,570
Any board member questions

776
01:22:39,570 --> 01:22:46,190
or comments? I just appreciate this information because that's reading our board. I was like,

777
01:22:46,190 --> 01:22:47,790
Okay, and where is the next contract?

778
01:22:48,170 --> 01:22:52,010
I want to understand that, so appreciate the sensitivity on that.

779
01:22:55,240 --> 01:22:56,680
There's no other questions or comments.

780
01:22:57,020 --> 01:22:57,520
Can I get a motion?

781
01:23:01,580 --> 01:23:02,620
I'll motion to approve.

782
01:23:03,460 --> 01:23:03,840
I'll second.

783
01:23:04,380 --> 01:23:04,680
Thank you.

784
01:23:05,460 --> 01:23:06,020
They

785
01:23:16,350 --> 01:23:16,910
always do that.

786
01:23:17,670 --> 01:23:18,690
Thank you, motion passes.

787
01:23:20,730 --> 01:23:23,890
Moving along to item B, request for addition of one

788
01:23:23,890 --> 01:23:27,290
new full-time equivalent staff position and any ticket.

789
01:23:29,110 --> 01:23:29,830
Okay, thank you.

790
01:23:30,610 --> 01:23:33,250
This agenda item is requesting the addition

791
01:23:33,250 --> 01:23:39,710
of a third benefit specialist to the disability unit at the program administrator three level to

792
01:23:39,710 --> 01:23:45,390
function in more of a lead analyst role. After the board's direction to review staffing needs in

793
01:23:45,390 --> 01:23:52,450
this area, we took a deeper dive in the end result was actually more of a like a qualitative rather

794
01:23:52,450 --> 01:24:00,030
than quantitative analysis. We did compare to other soil systems but what we found was not only

795
01:24:00,890 --> 01:24:05,810
Do we have a slightly higher case load per staff member than those other teams?

796
01:24:07,050 --> 01:24:11,750
The comparable systems also generally have at least one higher level staff member on

797
01:24:11,750 --> 01:24:14,230
the team, such as an analyst or a supervisor.

798
01:24:15,110 --> 01:24:19,850
In Missouri has some additional process steps that either don't exist at other soil systems

799
01:24:19,850 --> 01:24:24,870
or in those other soil systems, they're performed in other units, whereas we do them in the

800
01:24:24,870 --> 01:24:25,650
disability unit.

801
01:24:26,830 --> 01:24:32,910
So, the proposed solution to add the PA-3 will allow us to reorganize and rebalance the

802
01:24:32,910 --> 01:24:38,110
workload within the unit, so that some of the more complex tasks can be shifted or shared

803
01:24:38,110 --> 01:24:44,530
with the manager level, and this will also provide the opportunity to add some helpful steps

804
01:24:44,530 --> 01:24:48,810
such as additional member communications and implement some other process improvements.

805
01:24:49,430 --> 01:24:54,630
It will also allow for better and more consistent support back up and even succession planning.

806
01:24:55,970 --> 01:25:01,210
I did want to mention the use of this job classification is pending review by county HR,

807
01:25:01,450 --> 01:25:03,690
but we don't expect any hurdles in that regard.

808
01:25:04,190 --> 01:25:07,930
It is simply the next step in the existing series that we're already using.

809
01:25:09,190 --> 01:25:13,490
And then whether a budget adjustment is needed, we'll be reviewed during the mid-year budget

810
01:25:13,490 --> 01:25:19,430
projection, but due to the timing of the recruitment, if we were to proceed with this, we may only

811
01:25:19,430 --> 01:25:23,770
be looking at a few months of the year, which we may be able to absorb with other salary

812
01:25:23,770 --> 01:25:30,090
savings. And lastly I just want to quickly thank our chief operations officer Betsy and

813
01:25:30,090 --> 01:25:33,990
our disability manager Katrina for their help in the analysis and preparation of this

814
01:25:33,990 --> 01:25:40,210
request and staff are happy to answer any questions on this item. Any board member questions

815
01:25:40,210 --> 01:25:47,870
or comments? Sue? I just have a question. So this position is a county,

816
01:25:50,710 --> 01:25:53,750
it's under the

817
01:25:53,750 --> 01:26:02,930
Has put in a mandate that says no no new positions is this approved by the county so the no new positions freeze as for

818
01:26:03,750 --> 01:26:08,670
My understanding is for county departments and we're funded differently the Sarah's funded differently

819
01:26:08,670 --> 01:26:11,250
So we actually didn't even receive that freeze notice

820
01:26:11,890 --> 01:26:13,170
I knew about it

821
01:26:13,170 --> 01:26:17,250
Because others told me about it, but yeah, it doesn't actually apply to the Sarah

822
01:26:17,250 --> 01:26:26,450
Yeah, since I suggested that you look at adding a higher level position, I obviously

823
01:26:26,450 --> 01:26:27,330
have the support.

824
01:26:29,530 --> 01:26:31,710
And I'll make the motion to approve.

825
01:26:32,430 --> 01:26:32,850
Thank you, Art.

826
01:26:45,640 --> 01:26:45,900
Thank you.

827
01:26:59,750 --> 01:26:59,990
Thank you.

828
01:27:07,380 --> 01:27:08,260
All right, motion passes.

829
01:27:08,500 --> 01:27:08,900
Thank you, Amy.

830
01:27:09,540 --> 01:27:11,320
And thank you to all who worked on this.

831
01:27:12,140 --> 01:27:16,920
The next item, summary of recent changes to county management resolution and consideration

832
01:27:21,080 --> 01:27:27,420
I have a letter that's in there, essentially, and we've talked about this a little bit back in our last meeting.

833
01:27:28,100 --> 01:27:32,700
On December 16th, Board of Supervisors approved change to the management resolution.

834
01:27:33,460 --> 01:27:39,080
You'll see that there's a few items on their general salary increases which we have already addressed.

835
01:27:39,900 --> 01:27:41,980
Changes of flexible benefit allowance.

836
01:27:42,840 --> 01:27:47,640
And number three, adding a provision to provide dental and vision benefits at no cost to employees.

837
01:27:48,140 --> 01:27:57,060
An additional holiday, Caesar Travese Day, and the fifth item that increases the number of vacation hours that are employees are able to cash out.

838
01:27:57,500 --> 01:28:10,840
My suggestion is that we direct staff to return to the board with proposed amendments to the resolution that we have here that are similar to what the county just adopted with the effective dates to coincide.

839
01:28:10,840 --> 01:28:18,120
with all of that. You can see it's all in my letter, that's my recommendation.

840
01:28:19,520 --> 01:28:23,820
Any questions or comments? I don't think we need to vote on this because we can

841
01:28:23,820 --> 01:28:32,880
just direct them to my only comment has to do with a 3.5% increase. As you recall,

842
01:28:33,220 --> 01:28:40,200
I objected to delegating the authority to establish cost of booming

843
01:28:40,200 --> 01:28:46,820
adjustments to the county and as you'll see later on the change from December to

844
01:28:46,820 --> 01:28:53,220
December was only 3%. So we're stuck with extra half percent.

845
01:28:57,780 --> 01:29:05,520
I would use different words besides stuck and so I appreciate your comments and I would

846
01:29:10,280 --> 01:29:28,760
I would assume that that could be wrapped up or will be wrapped up into anything that they bring back to us and the physical implications of that.

847
01:29:30,080 --> 01:29:37,540
That's a good point. We just need to understand physically in our budget where that is and how we're going to handle that.

848
01:29:40,550 --> 01:29:51,550
Okay, so I think at this point we don't need a vote on this but let's direct them to return and then we can look at the effect of all of this on everything in a future meeting.

849
01:29:51,550 --> 01:29:58,510
Just a question on that I see them file back to to Arts Point. Did we not decide

850
01:30:00,000 --> 01:30:29,160
We decide to go with the counties, whatever they do as opposed to a CPI adjustment. Did we? We did do that. You were the one that made the motions established apology. Well, it's been a while. It has. So did we, did we decide to go with the county? Yes. Okay. Right. Thank you. Sorry. Okay. That's why I was mentioning for a receiving file to ensure that this is within our notes. Okay. Perfect. Do we have a second on that?

851
01:30:29,900 --> 01:30:30,720
All second.

852
01:30:31,200 --> 01:30:31,660
Thank you, Taylor.

853
01:30:37,280 --> 01:30:37,700
Thank you, Kelly.

854
01:30:44,130 --> 01:30:44,810
Let's see.

855
01:30:51,310 --> 01:30:51,750
All right.

856
01:30:51,850 --> 01:30:52,570
Motion passes.

857
01:30:52,950 --> 01:30:55,030
We'll see all of this in a future meeting.

858
01:30:57,040 --> 01:30:57,790
Moving on.

859
01:31:00,980 --> 01:31:06,380
Item D is the consideration and approval of a merit increase for the retirement administrator.

860
01:31:07,300 --> 01:31:12,920
As everybody will recall, we had a closed session during our last board meeting where we did

861
01:31:12,920 --> 01:31:17,580
our performance evaluations for the retirement administrator, general counsel, and the chief

862
01:31:17,580 --> 01:31:18,520
investment officer.

863
01:31:21,180 --> 01:31:26,160
During that meeting, we talked about a variety of different things

864
01:31:26,160 --> 01:31:33,920
and reviewed those. At this juncture, regarding Amy's pay, the retired

865
01:31:33,920 --> 01:31:39,800
administrator, my recommendation is we approve a merit increase for her as assessed to be done

866
01:31:39,800 --> 01:31:46,000
in an open meeting based upon her performance review on December 15th, and as to be effective

867
01:31:46,000 --> 01:31:52,800
in April 26-2, opens up for any board member or questions or comments.

868
01:31:56,230 --> 01:31:56,550
I'll move.

869
01:31:56,670 --> 01:31:58,750
We'll increase your shallary by one step.

870
01:32:00,530 --> 01:32:00,790
Okay.

871
01:32:01,810 --> 01:32:03,130
Do we have a second on that?

872
01:32:05,480 --> 01:32:06,140
I'll second it.

873
01:32:07,040 --> 01:32:07,120
Oh.

874
01:32:07,120 --> 01:32:17,060
I was just going to say I really do want to appreciate Amy's coming on and taking over.

875
01:32:17,860 --> 01:32:24,620
I think you've done a great job in our leadership for Visera and hope to continue that with

876
01:32:24,620 --> 01:32:30,000
team working with all of our unions and county and everybody for the greater good of our

877
01:32:30,000 --> 01:32:30,440
constituents.

878
01:32:30,860 --> 01:32:34,740
Thank you for that, Kelly, and I appreciate that you publicly acknowledge.

879
01:32:34,740 --> 01:32:41,500
I think we do need to acknowledge some of this kind of things besides I want to make sure and I completely agree

880
01:32:41,500 --> 01:32:45,920
I appreciate your leadership and your role here at the sir. I think you're doing a great job

881
01:32:45,920 --> 01:32:49,640
So we have a motion and a second motion

882
01:33:17,480 --> 01:33:17,980
passes

883
01:33:17,980 --> 01:33:21,980
Thank you everyone moving on to itemy

884
01:33:22,620 --> 01:33:27,780
proposed trial election procedures for upcoming general member of vacancy special election

885
01:33:27,780 --> 01:33:33,070
This is for Jordan seat and I want in this over to Amy. Thank you

886
01:33:33,930 --> 01:33:39,410
Okay, so due to the departure of Jordan Roberts in December, we have a vacancy in the general

887
01:33:39,410 --> 01:33:45,230
number or a third position on the board and the term for this position expires December 31st,

888
01:33:45,290 --> 01:33:50,790
2027. Staff have been working closely with the CUNY Elections Division or office,

889
01:33:51,230 --> 01:33:56,450
which is part of the clerk recorder and registrar voters on the most efficient way to conduct

890
01:33:56,450 --> 01:34:03,030
elections for Visera. In fact, prior to this vacancy, we had already been meeting with elections to

891
01:34:03,030 --> 01:34:04,930
to discuss how to make the process better

892
01:34:04,930 --> 01:34:07,190
and had been planning to bring some proposed changes

893
01:34:07,190 --> 01:34:09,290
to the governance committee for their review.

894
01:34:10,450 --> 01:34:13,070
Discussions with elections were based on experience

895
01:34:13,070 --> 01:34:15,070
from recent elections we had run,

896
01:34:15,410 --> 01:34:18,690
the need for clarification and inclusion of current practice

897
01:34:19,120 --> 01:34:21,590
and the desire to remove some of the inefficient

898
01:34:21,590 --> 01:34:25,190
back and forth processing via a more logical assignment

899
01:34:25,190 --> 01:34:27,310
of duties between Visera and elections.

900
01:34:28,310 --> 01:34:30,890
So in summary, we've come up with a proposed way

901
01:34:30,890 --> 01:34:35,870
to conduct this upcoming election that includes some of these improvements and a requesting

902
01:34:35,870 --> 01:34:40,010
that the board approve this as a trial run with the understanding that these changes will

903
01:34:40,010 --> 01:34:45,110
also be sent to the governance committee for review with the goal of ultimately incorporating

904
01:34:45,110 --> 01:34:49,070
them into the Sarah's appointment, any election of trustees policy.

905
01:34:49,890 --> 01:34:54,290
By implementing this now as a trial run, it will enable us to perform the election more

906
01:34:54,290 --> 01:34:57,690
efficiently and have the vacant seat filled by the May board meeting.

907
01:34:58,610 --> 01:35:03,370
On a side note, I do acknowledge that for the past two elections, we've encountered some

908
01:35:03,370 --> 01:35:07,010
scheduling issues with elections where they haven't been able to start the process.

909
01:35:07,210 --> 01:35:12,710
Maybe as soon as we would like due to competing election activities with their own staffing,

910
01:35:13,410 --> 01:35:17,990
however, making these changes will hopefully help minimize this going forward by condensing

911
01:35:17,990 --> 01:35:18,710
the timeline.

912
01:35:19,190 --> 01:35:23,730
And as I mentioned, cleaning up the back and forth processing steps that have made scheduling

913
01:35:23,730 --> 01:35:24,490
a challenge.

914
01:35:24,490 --> 01:35:30,010
And I do want to thank the Cloak Recorder, Michelle Ascension and her staff for their

915
01:35:30,010 --> 01:35:35,010
collaboration and the time and effort they've taken to review this process with us and

916
01:35:35,010 --> 01:35:38,330
especially Michelle for her additional advice and guidance on this.

917
01:35:40,710 --> 01:35:45,130
And I did also mention, I should mention, because I know that this will be a question, but

918
01:35:46,230 --> 01:35:51,890
we have briefly liked and surveys and looked into other alternatives for running elections

919
01:35:52,650 --> 01:35:56,410
and it's something that we will probably look into a little more for the next

920
01:35:56,410 --> 01:36:01,430
selection, but for this election we would like to propose that we do this

921
01:36:01,430 --> 01:36:05,650
trial run so that we can clean up the current process and then see where we go

922
01:36:05,650 --> 01:36:09,130
from there and so we're happy to answer any questions on this matter.

923
01:36:13,240 --> 01:36:13,900
I think it's

924
01:36:13,900 --> 01:36:19,920
great that you have an alternative and if it works out we may not even have to look

925
01:36:19,920 --> 01:36:20,880
anywhere else.

926
01:36:24,760 --> 01:36:30,160
Well, I think you are any other comments, questions? If not, can

927
01:36:30,160 --> 01:36:30,600
it get a motion?

928
01:36:38,070 --> 01:36:38,870
A motion no proof.

929
01:36:42,230 --> 01:36:42,870
Workman, second.

930
01:36:55,570 --> 01:36:56,370
All right, motion passes.

931
01:36:58,090 --> 01:37:01,690
On to informational, there's two items in there. Sackers, board of directors

932
01:37:01,690 --> 01:37:06,430
election for this upcoming term and upcoming educational events calendar for

933
01:37:06,430 --> 01:37:12,430
Fisera, trustees and staff. It's all been provided. I have no other request for

934
01:37:12,430 --> 01:37:19,550
public comment, we'll move into staff comment, and I know Amy has something, so Amy, take it away.

935
01:37:20,790 --> 01:37:27,410
Thanks, I have a few updates. As usual, I have some updates on recruitment, so our two fixed

936
01:37:27,410 --> 01:37:33,270
term benefit specialists for Elimita were filled and started on November 24. The selections were

937
01:37:33,270 --> 01:37:39,450
David Chavez, who's been with the Sarah as an office assistant since February of 2024.

938
01:37:39,450 --> 01:37:44,970
and then David and Rikaze who previously worked for the Ventura County Public Guardian.

939
01:37:46,310 --> 01:37:48,590
And then regarding the legal management assistant,

940
01:37:49,050 --> 01:37:52,950
second recruitment was conducted due to low turnout the first time around,

941
01:37:53,670 --> 01:37:56,130
and an eligible list was received last week,

942
01:37:56,530 --> 01:37:58,790
and so interviews are being scheduled for early February.

943
01:37:59,990 --> 01:38:03,770
The managing attorney was opened as a continuous recruitment.

944
01:38:03,770 --> 01:38:10,930
So far several applications have been received and initial resume review was performed.

945
01:38:11,690 --> 01:38:16,650
The next step is to conduct the initial screening panel interviews and after that we'll be hiring panel interviews.

946
01:38:18,670 --> 01:38:20,350
We have good candidate.

947
01:38:23,510 --> 01:38:27,670
I probably shouldn't say publicly anything about the candidates.

948
01:38:29,130 --> 01:38:32,350
But I'm happy that we have several applications.

949
01:38:32,350 --> 01:38:33,350
A

950
01:38:38,530 --> 01:38:42,850
couple of updates on disability, so as you're aware that County Board of Supervisors

951
01:38:42,850 --> 01:38:47,530
approved the Sarah's amended bylaws, which included detachment of the disability hearing

952
01:38:47,530 --> 01:38:53,070
procedures in December, and your board had approved that the prior July.

953
01:38:53,910 --> 01:38:59,970
And then with this change, the Sarah can now, more easily combine all of the disability-related

954
01:38:59,970 --> 01:39:05,330
policies and procedures into one document, and that will really help with clarity and ease

955
01:39:05,330 --> 01:39:11,910
of use, and so we'll be looking at that and bringing some suggestions to the governance

956
01:39:11,910 --> 01:39:15,110
committee. So it'll be nice to do some cleanup there.

957
01:39:19,420 --> 01:39:24,340
Staff have been reviewing the current reporting and compilation of records for board meetings

958
01:39:24,340 --> 01:39:29,000
for disability cases, and we will be making some changes to that soon to make that more

959
01:39:29,000 --> 01:39:31,860
efficient for both the board and staff. So stay tuned.

960
01:39:33,500 --> 01:39:42,180
And also staff also met with county risk management to get some input on the front end investigation phase of our process.

961
01:39:42,780 --> 01:39:47,060
And of course the primary concern was timeline, which we all agreed on.

962
01:39:48,420 --> 01:39:51,580
And of course we know that we're still working through that backlog.

963
01:39:52,600 --> 01:39:58,540
But the discussion did confirm that the path we're currently on and improvements we're making will be beneficial to all involved.

964
01:39:58,540 --> 01:40:05,000
And so we do appreciate the open dialogue and the sharing of information and concerns, and we'd like to see that continue.

965
01:40:07,350 --> 01:40:17,430
Then lastly, I just wanted to highlight that several of our own staff were actually nominated for awards by the Management Council, and so congrats to them.

966
01:40:18,990 --> 01:40:24,970
In case you didn't hear that already, so we had a few under mentoring. We had Rebecca Villalobos.

967
01:40:25,570 --> 01:40:30,750
She's our operations manager over the Actives and Community Property Units.

968
01:40:31,650 --> 01:40:36,170
also Nancy Jensen in disability was nominated for a mentoring award.

969
01:40:37,230 --> 01:40:41,770
Shantel Garcia in our desk unit was nominated for integrity award.

970
01:40:42,850 --> 01:40:46,470
Angie Salisse who works at our front desk was nominated for customer service.

971
01:40:47,130 --> 01:40:53,170
And then Michelle Hernandez and David Rodriguez are assistant administrators on the pension system.

972
01:40:53,490 --> 01:40:55,190
And they were nominated for best kept secret.

973
01:40:57,730 --> 01:40:58,550
That's it.

974
01:40:58,550 --> 01:41:01,670
All right. Any board member have any comments?

975
01:41:02,570 --> 01:41:08,400
Hart, I hate to have to bring this up again, but

976
01:41:09,240 --> 01:41:15,120
Granicus has still failed to implement the annotation

977
01:41:16,360 --> 01:41:20,980
provision that was supposed to get under our agreement for service.

978
01:41:21,640 --> 01:41:23,240
It's been more than three months.

979
01:41:23,240 --> 01:41:28,200
I just don't understand why it's taking so long.

980
01:41:29,660 --> 01:41:36,200
Maybe that's why the FBPC problem exists because

981
01:41:36,200 --> 01:41:38,620
Granicus is the contractor for that.

982
01:41:41,660 --> 01:41:45,400
I just wanted to let you know that we have actively been

983
01:41:45,400 --> 01:41:48,780
trying to find ways to escalate within side Granicus.

984
01:41:48,900 --> 01:41:52,300
We've escalated to our account rep.

985
01:41:52,300 --> 01:42:22,240
we reached out to the county to receive the account rep the County Board of Supervisors has for their environment, we've reached out to them, we've reached out to some of their sales departments, we've escalated numbers of times with their support this morning, I just happened to come across the support phone number so we're going to try to call that so I just want to let you know this is not anything that we are neglecting we are really trying hard to get the solution resolved because this is a bug, this

986
01:42:22,240 --> 01:42:26,680
This was something that did work and it should continue to work and we are really trying

987
01:42:26,680 --> 01:42:28,740
our hardest to get this resolved for you.

988
01:42:29,760 --> 01:42:33,620
If it doesn't work, perhaps we don't pay for it.

989
01:42:35,380 --> 01:42:39,420
I mean, because I don't know how many people are actually using that service, it sounds like

990
01:42:39,420 --> 01:42:41,140
no one is because we can't use it.

991
01:42:41,540 --> 01:42:43,620
Maybe that's not a service we should pay for it.

992
01:42:44,180 --> 01:42:46,200
Just a thought because...

993
01:42:46,200 --> 01:42:47,380
Well, the thing is...

994
01:42:47,380 --> 01:42:47,840
Not hearing back.

995
01:42:48,180 --> 01:42:52,220
Yeah, it's built into our contract and we signed a three-year contract.

996
01:42:53,440 --> 01:42:57,180
So I think there's there has to be a way to get it to work.

997
01:42:57,620 --> 01:42:59,160
I mean, it did work.

998
01:42:59,460 --> 01:43:00,640
They just need to fix it.

999
01:43:01,420 --> 01:43:05,240
But I agree that this is probably something we need to start looking into.

1000
01:43:05,780 --> 01:43:07,120
Only because it's been a long time.

1001
01:43:07,460 --> 01:43:07,880
Absolutely.

1002
01:43:10,920 --> 01:43:12,760
I don't believe it's a paid fix.

1003
01:43:12,900 --> 01:43:15,800
It should be part of our support and maintenance agreement.

1004
01:43:16,200 --> 01:43:16,420
Yeah.

1005
01:43:16,880 --> 01:43:17,320
Exactly.

1006
01:43:17,520 --> 01:43:19,640
It's just getting them to fix it.

1007
01:43:19,640 --> 01:43:25,480
Yeah, right. That's my point. Yeah, maybe they could reimburse us or something.

1008
01:43:25,740 --> 01:43:31,360
Yeah, there should be some acknowledgement of an issue broken and something happening because of it.

1009
01:43:31,780 --> 01:43:36,020
Yeah, it's transitioned from their support team to their product team.

1010
01:43:36,720 --> 01:43:42,440
So there has been movement. We just haven't received any updates on where they're at with the resolution of this issue.

1011
01:43:42,920 --> 01:43:46,540
Maybe we need to threaten to shoot them for fail to perform.

1012
01:43:46,540 --> 01:43:50,820
I don't think it's at that point, but I think these are

1013
01:43:50,820 --> 01:43:55,540
I didn't say to do it now, maybe we should think about that if they

1014
01:43:56,140 --> 01:43:59,740
continue to sit on their hands and that solve the problem.

1015
01:44:02,620 --> 01:44:07,240
Do you know if this is just affecting our environment or are there other customers

1016
01:44:07,240 --> 01:44:08,160
that have the same issue?

1017
01:44:09,080 --> 01:44:13,080
I'm not sure they haven't given us any information on that.

1018
01:44:13,800 --> 01:44:18,940
I don't know if we're in our own one bucket or if we are using the same

1019
01:44:18,940 --> 01:44:26,080
components as other customers I do know that at one point they were planning to

1020
01:44:26,080 --> 01:44:31,440
upgrade these or interface but I haven't heard on that either so we'll

1021
01:44:31,440 --> 01:44:34,400
continue to reach out now that we've found this magical phone number we're

1022
01:44:34,400 --> 01:44:39,060
hoping that we can give them a call later and see if we can get somewhere so we're

1023
01:44:39,060 --> 01:44:45,940
working on it. Thank you Leah. Any other board member comment? All right we'll

1024
01:44:45,940 --> 01:44:47,500
Stand adjourned. Thank you.

1025
01:44:55,000 --> 01:44:58,020
We did pull a couple things off our agenda.