Transcripts For SFGTV Retirement Board 20240713

Staff and short of resources to need in a normal time to have responded to quickly and to work so closely in coordinating with all of the different departments under the leadership of mayor breed. And i think across the country of all of the different places and the tragedies that many of our vulnerable population and community are experiencing, i just wish that there was a way to transport the kind of leadership in community and sense of common good that we have here in San Francisco. Even with all the questions and all the kind of wanting to be better sentiments that are expressed by many of our advocates. I do feel that San Francisco is most fortunate. Words cant quite express, but again, justice want to express thanks and gratitude, respect, and i know that we have a lot more to go. A lot more road to go and we will be there. We are all in this together. A commissioner green. Yes. It was said so eloquently by all of you. I am on the front line. I am in the hospital every day. And the example that this department has set and our mayor and our staff has set for how to be compassionate and how to Work Together as a Cohesive Community has been so reassuring for those of us who are potentially exposed to the disease on a daily basis. I am so impressed and incredibly grateful for the speed with this which this department has acted, for the speed with which the mayor identified this problem, and in the face of potentially a lot of controversy and question from national sources. I think its resulted in so many lives saved. I think every person in this community and particularly everyone at the d. P. H. And mayor and department of supervisors and Mayors Office can take credit for keeping citizens alive and healthy. I feel that deeply and personally as someone who is an age that could potentially make me vulnerable. I just cant say enough about how proud and humble and grateful i am for everything thats been done. Thank you for your comments, commissioners. Mark, shall we move on . Item 8, actually, and give me one second to post try to post there we go. See if that is going to work. I want to post the Public Comment info for you all. Were going to move on to item 8 which is the contracts report. Mark . Yes. An i would just like to thank the commission. Thank you, director colfax. Please, feel free to say more if you would like. I just want to thank you for the kind words, the recognition, and really reinforce that the team has been has been working very hard. And the people that they are caring for every day will continue to need our help and support and one of the things that is so inspiring to me and the rest of the executive team are the people on the front lines who are caring for people in the hospital, going to the people who need to be interviewed and cared for in a supportive way, meeting peoples Behavioral Health needs and the concern of individuals and families and the communities. Going to places like the mse south shelter outbreak and people on the Street Medicine Team that worked all night to ensure that the guests and the staff of that shelter got the care they need. I just think every day im inspired by the work that the team is going and inspired by the work the city is doing across the various departments and collaborating like never before. I am grateful and honored to be able to support the department and thank you for your kind worted and recognition on behalf of all members of the department. Thank you, director colfax. That was beautifully said and the entire commission stands with you in gratitude and pride. Okay. Hard not to cry hearing all those lovely words. I am going to post the Public Comment information again as we move on to item 8 which is the monthly contracts report. There will be several contracts here with several presenters. Eeveryone on the line, only nine people can be on camera at a time and for instance, dr. Colfax, if you wouldnt mind taking the video off at this point, and dr. Aragon as well, if you could take your video off and i dont think we will need you for the contracts. Thank you. And put miss ruggles and on there we go. This will take a second. Some are on audio. The microphone is off. Thank you. D. H. P. , business office. This feels like the old world and there is a series of contracts and i will group them where they are groupable and go through them, but this first one is with the San Francisco Public Health edition and it is a new contract that has services that are ongoing and management of management, Program Administration of existing subcontractors and is an Ongoing Service that is the Public Health foundation has provided and continues to provide for many of our services. So this previously had been provided with the particular subcontractors under the San Francisco study center and moved to the San Francisco Public Health foundation as the result of slis sayings. And o solicitation. And the services in this contract are through the Public Health division and are providing several Community Capacity building and promotion work and this contract will be for a term of four and hah half years with a total contract amount of 3,610,930 and the annual amount is 665,383. I realize normally we include the prior annual amount so you have something to compare it to, which we did not. And missed that this time. So i added it to the ones where dr. Chow has specific questions, but if you have any programmatic questions and i believe and i believe that Patricia Irwin is on the phone if you do have questions. Commissioner, any questions about this contract . This is dr. Chow. The question really is, is this the same as selena health . Or why are we using two different titles for these things . That is a great point, which i didnt even the Public Health Foundation Actually now you have tote that is different. San francisco Public Health foundation is the Public Health foundation and Heluna Health is different and used to be Public Health foundation copolymer prizes. Foundation copolym enterpri. The first one is the San Francisco Public Health foundation. The Public Health foundation and started several years ago when dr. Mitch cass was director. And so that is separate than the Public Health Enterprise Foundation which was something completely different. So we are on the Public Health foundation contract right now. Commissioner that is different from the Public Health foundation. Yeah. Commissioner all right. Any other questions . We can move on to the next. The next one is Heluna Health, formally Public Health Foundation Enterprises inc. Now its doing business as Heluna Health. So contract is an amendment adding 1,027,708 and we are extending the current term by 18 months through june 30, 2024. You actually previously approved this contract on june 5, 2018. This contract provides i shouldnt gotten water. Program administration and support services to the Community Health equity and Promotion Section and so in this one they do have Heluna Health provides Administrative Services for the continuum of h. I. V. Prevention and care and treatment program, San Francisco ending the epidemic, and then hepatitis c virus Public Health services program. And the department has brought this contract back and received additional Grant Funding and so we just are increasing the not to exceed amount to include these additional funds and extending the term. A commissioner, any questions . If none, we can move on to the next one. We had three contracts with the San Francisco Health Authority that we also refer to as the San Francisco health plan. The first is the payment to private providers and the next two are Third Party Administrative contracts. You approved these are all been pretty recently approved. August 2019 and in one of them in november, but what were doing now because from the last years presentation and also the one in november you might recall that we reconfigured some contracts and consolidated them and started up new programming with the deactivated fund. You can hear me because i am on the phone. Awe it is fine. So anyway, these three contracts and what we are doing is extending them to multiyear instead of one year contracts because everything is in place and are going to the board of supervisors and back to approve the now new contract which were doing for four years. From reimbursement on nonhealth network care provideers and participating in the healthy San Francisco private provider network. And also payment to Ambulance Companies proprovide answer transport, pharmacy benefits for specific healthy San Francisco medical homes and reimbursement for providers providing gender confirming surgeries to the gender health San Francisco program. I can go through all three and you can ask questions and with the representation on the phone or maybe in a picture. Would you like to go one by one or all three . I would like to hear them all. And to start july 217 and this is providing that and language enrollment assistance and customer Third Party Administration for the healthy pedestrian program. The last contract is the Third Party Administrator city option. This contract also is a new contract multiyear going to the board of supervisors. With that, i would probably turn it over to alice if you have specific program. Commissioner, are there any questions . Seeing none, we can move on. The next question is Harm Reduction Therapy Center and is a Behavioral Health apt and extending the term by one year. The reason that the amount is bigger and we brought the contract to you in december 2018, you approved it as a new contract for the homeless treatment. Right after that, the mentally ill homeless treatment and funding was added to the contract and i think we brought the grant maybe separately as part of a broader discussion. But anyway, it got added into this contract and more recently some homeless outpatient treatment funding. The homeless mentally ill Outreach Team provides street medicine through the healthy streets operations center. And they have a mobile van, and then the Outpatient Treatment Services are to outreach and engage people who use drugs on the street. They have Harm Reduction model. It is an ongoing contact and realigning it and bringing it back because of the additional funding and extending the term to align this with the same end date. And i believe if you have questions, Marla Simmons is on the line. Any questions, commissioners . All right. Seeing none, we can continue. Okay. The next there are six contracts that are actually related to that power point that you have. Were not going over the power point today, but dean goodwin is on the line. We have tried throughout the last couple of years to Group Contracts when it was possible coming off as a solicitation so we could ground the explanation in a broader look at the program. So dean put together super comprehensive power point presentation about h. I. V. Health services and within that he set very specific contracts. So you have a group of five contracts that are part of the center of excellence on slides 8 through 15. It is all the next side except west side. West side is part of the Home Health Care and Home Community based Health Care Services on slides 20 through 22. They are all Ongoing Services providing the same doing the same thing essentially. I dont have this slide deck open, but slide 8 through 15, you can see what the center of excellence is. If you have specific questions about any of these contracts, dean is on the phone i am sure to answer. I did want to comment that i thought the presentation and the power points were really helpful and normally if we were at our usual committee meeting, we could get a better explanation, but it does assist us in understanding what the contracts are all about. And so i just want to commend staff for having put that together. And on top of that, and thank you, commissioner chow, i just like to remind commissioners and those who may be viewing from the public that although the governor and mayor did provide an opportunity to hold the meetings and the commission serves the roles as various committees as we consider things such as contract so all the work of the finance committee is being done by the full commission. So were grateful to commissioners and members of the public for your patience as well as to the staff for the hard work in putting together the presentations. Other questions, commissioners . While were looking at the whole block, i wanted to extend moi commendation to the information that they did provide me and the commission in regard to the contract what we commonly call the San Francisco health plan for their Administrative Services and we had to go back several times to get clarity, but we were able to do that. I really appreciate that. Thank you. So do i. And then the next contract is not part of that group is haluna health. I am not sick. And that one is im sorry. Dry. The approval of haluna health for the amount of 520,295 for the period of it is an amendment to extend the contract excuse me. It is actually an amendment to add funding into the contract and the funding is because we have received additional grants. We received 477,974 in additional federal c. D. C. Grant award, and then we had carryforward funding, and then the last part that is 42,000 is the contingency. It is a contract that you have seen before, but anyway, if you have questions, we have staff on the line. It is pretty straightforward and just adding money to an amendment. Miss ruggels, if we were in person, we would be offering you water. Do you need a moment . It is so dry in here. Am i allowed to suck on an lozenge . Yes, of course. All right. I am recovered. Good. Thank you. Do you have any questions on this one . A commissioners . Seeing none, we can move on to the next contract. Okay. And the last contract is the justice and diversity Bar Association of San Francisco. This is actually Ongoing Services but it is a new agreement following solicitation that was just completed. This contract does add legal work to help clients effectively document their disability claims and help them get back their disability claim helps them to be success nfl obtaining their benefits and provides advocacy in assisting them if they have challenges in order to attain those benefits or be reinstated. Again, it is an ongoing contract that we just did an r. S. P. Commissioners . An any questions from commissioners on the contract support . I believe that is the final contract, correct . We have two memos. But the two memos are separate items. A right. So commissioners, i am going to first check to see if we have any Public Comment. Moderator, do we have any Public Comment for this item . Any Public Comment . No, no Public Comment. So you all can vote on as a whole on this item and so ewith would need a motion for that. Is there a motion to i a prove . An i move to approve. I second. Thank you. I will do a role call vote. [role call vote] we can move on item 9 and get myself on here. Sorry about that. Item 9 is request for approval of new contract with prc baker places to support the creation of Behavioral Health respite center. Right. I will introduce it and if you have questions, Kelly Hiramoto is on the line for this. You might recall from recent hearing about this new program, prop i hearing, but this is the contract that comes with it. This is the request for approval and new contract with baker place and prc baker place for this service. This is the second of two programs they provide. This is the second one and opening up at 11 56 valencia street. It is a total contract amount over the term of 7,777,339 and annually about 2. 9 million. Since we had the hearing, the two things that have happened were that, one, you can see that at lo. O funding for this program is funded by a grant by tipping point. And the board of supervisors approved that grant since we were last in front of you. And then the other thing is that theyre leasing their location through a city lease withle is Activation Army for this program. And that was also approve by the board of supervisors. But if you have other questions, i know kelly is there. Any questions, commissioners . If we have no questions, mark, we can move to a vote to approve. Mark, you are on mute. So we need a motion, commissioners. So moved. Second. All right. I will do a role call. [role call vote] item 10 is the request for approval with a new contract with Bardy Diagnostics to provide a cardiac rhythm monitoring device for patients of d. P. H. This is an agreement in 1,151,068 from may 1, 2020 through april 30, 2023 and this is a new contract to provide a cardiac rhythm ambulatory monitoring device that is a small wire free patch that can be worn continuously by patients. I am not going to go on because i only know what the words say, not to explain it, but there is staff online if you have any specific questions about how this system works or what the goal is beyond whats been written. This is sort of a contract for up to and then provides the ability to use the machines or i should say the ambulatory devices and keep the entire block. I dont believe they will expend anything that isnt used but i will let the staff respond to that. Good afternoon, everybody. Rosaly and the medical director is actually on board. Are you on the call . Can you clarify if you dont use the full amount . So we replenished stocks. That was my understanding and i wanted to be sure that you understood. Thank you. Any other questions, commissioners. We need a motion to approve. So moved. Second. Thank you. I will do a role call vote. [role call vote] item 11 is zuckerberg San Francisco General Hospital regulatory status report. Thank you to the team and everyone who joined the call for the contracts report as well as the new contracts. Thank you very much. Thank you for giving me time on the agenda to bring you up up with the things happening at zuckerberg San Francisco in the last coup of months. We selfreported three events and putting together responses to the events. If you remember last year the law changed around selfreport and they are investigating the reports we send to them and asking them to report them to the joint commission that occurred simultaneously. And that acute care and we have two teams of surveyors at the beginning of the covid issues there. Both were slated to go for five days. And on the fourth day of that survey process and we have our first positive patient with the state of deficiencies and with very few findings. A lot of what they were investigating they were not able to substantiate or not find any serious issues around the hospital and see the summary of those. From the course of the last six to eight months we have been working with a difficult Patient Population and had some issues with staff. We are at a point now where we are almost bringing those two complaints to an end. They had the list of citations they were planning to present to us and gave us an opportunity as an organization to respond and provide evidence to how to address them. And many of them we have done a lot of work in the last six to eight month and that is secondary to the work place violence headed out to do a phenomenal amount of work to standardize how we respond to violence towards staff at the General Hospital. So the fact that they are given an opportunity to curb the citations and respond to them before they issue the final statement i think speaks really well to the amount of work they saw that have been that had been done over the months they were working with us on the investigation. I will ask if there are any questions from the commissioners about the things on the report at this moment. Under the validation and do you know what they were citing . It is related for complaints. That is a great question and the governing body was not related to the complaint. What happens when the complaint validation survey is initiated is they address the complaints and also have a workbook with certain things they have to look through. One of the things was contracts and did not have all the required pieces to demonstrate in the meeting inches to the j. C. C. I feel very strongly it was a paper work issue and they acknowledged that during the survey. As part of the process we are looking at how to review were sorry. Your conference is ending now. Please hang up. Are the people still online . We are still here. I am still on the line. Still here. And what were doing with that is the way that we look at the Quality Metrics in each contract and we will have them presented to pip. Pips will report the metrics to the m. E. C. And bring it to you as an overview in our minutes. That way we wont miss the contract. It was purely an administrative miss, but it is still important to make sure the contracts are monitored by the governing body. Thank you. Any other questions . Moderator, is there any Public Comment on this item . No. No Public Comment. So commissioners, shall we move on to the next . Item 12 is zuckerberg San Francisco General Hospital medical staff report. And several action items on this. Again, for the members of the public and those on the commission who usually are not on the joint committee, this is kind of business that is usually done at that committee. I am not sure if she is visually present or just audio. My intent was to be visually present as well. I dont know if anyone can see me. This is the first time and i can see all of you. We cannot. What number lets see. I dont think its vital that you see me as long as you can hear me. The other thing is that there is this delay when i am actually on the video. So it is my audio is via the phone so i can be simultaneous with the proceedings. Sure. I do not have power point slides and i do not think i have to have a visual if you are okay with me not having a visual. Please proceed, doctor. So thank you so much. Good evening. I have several items for you to review. And dr. Chow, thank you for your comments and your questions. I wanted to clarify that we changed the actual state of the privileges and have major revisions and do not change the dates at the title of the actual privileges or the sps. That was one question i know that you had. We have a revision to the privileges and the orthopedics privileges. And we have the p. A. Practice agreement and preamble. And there is one provision that addresses the idea of home visits and this is something that has come up recently. And we have recent Clinical Services have done home visits throughout the years. They have not always been cleared out clearly in the spelled out cloorly in the privilege. We wanted to be more specific and deliberate about that. But in addition with the covid situation, it does bring up a specific situation and we have had some of our patients who are pregnant and towards to end of the gestation and third trimester and needing patient care who have been in quarantine for covid and physically unable to come for visits. Both our nurse practice tigsers sorry, our certified nurse mid wives in the Ob Department as well as our faculty gynecologists have requested privileges to do home visits when those situations awe rise. So we discussed that at the credentials committee. I also discussed it with our contact with the City Attorneys Office and the Exec Committee approved those privileges and standardized procedures. Any questions about that . Commissioners . Looks like commissioner green does. Yes. Two things. One is does this include the townhouse visits . In other words, i was trying to find whether tele health is part of the previous privileges or whether it needs to be delineated. We are doing that extensively and i wondered what other options and you have a robust system at the hospital. I was wondering if that includes that. That is a great question. We have not we are actually all doing tele health right now. So we are we have not gone back to all of the privileges and specifically called out that tele health is a privilege. It seems to fall within the general privileges to me, but i think if we actually were to add that, we would need to add it to all the privileges and i dont know in that is necessary. And sterilization and i am sure has been banned and whether that is on the list or not, i am not sure, but it isnt been done. Just a little point. Thank you. I will take that off. That was again, this is not a major revision and we dont have to go back and go back to and any over questions about the procedures . If not, i will move on to the orthopedic privileges list. And the privileges list is a minor revision and we have specifically addresses when we have a podiatrist and orthopedics and the different skills that they and tasks they take on. And specifically asks orthotics and oversee and that is that definition to that privilege. It was actually in red and it is. When we are in the regular routine of thing, we plan on doing major revisions for the standardized items and these are the minor revisions to make sure we are crossing our ts and dotting the is in the case of the orthotics. Moving on. I know that this create some confusion and the p. A. Practice agreement and preamble are documents that the state licensing board for p. A. S have recommended that institutions adopt so that we know that we are following the guidelines for supervision and scope of service for p. A. S. And so i think there was a question that came up about the fact that there is these are what we adopted as a template for all of the services to use so that when they are using a standardized language and template for the p. A. Privileges in each of the departments. They continue to have state your department here and these are the templates that the credentialing Committee Approved and n. E. C. Approved for the Clinical Services to now use in their own sites when they have a p. A. Actually, we dont have p. A. S in many of our clinicals, but we wanted to have a standardized approach to the documentation for their oversight in their department when those departments did decide to hire them. Along the type of supervision and they have and updated in our own policy and procedures. As a template, these are like when you go to the standardized templates, and you take out the ones that arent pertaining to that particular person, is that it . Right. When we actually have if there is a clinical site, for example so if you look at the practice agreement, i think, the last page. It has a site where you can indicate all the p. A. S that are working in that practice site. We are recommending that a Clinical Service site has p. A. S working in that service site adopt this and lift the p. A. S and currently active members of the med staff in their service. And kind of having a blanket and with the inpatient unit. Commissioner on the standard procedure template and you can modify that in order to work on what the p. A. Is. Yes. Commissioner that is fine. Then we wouldnt recommend they do it per person but per that clinical unit. Commissioner okay. Any questions about those . I think we can move on, thank you. I believe we need to vote to approve all of those. Yes. We need a motion to approve all the protocols and policies that were just discussed. I so move to approve all the protocols. And is aekd please. Second. Great. I will do a role call vote. [role call vote] that item is passed. So those of you who were on the line from the public and in case you would like to make Public Comment, the line has been disconnected and reconnected. So you have to call in again. And i am going to say the number which is on the screen right now. To call in in case you would like to make comment for the next item. 8883634734 and 2241350 and press pound once you get in. Moderators, are there any questions or any Public Comments on this item . Okay. So i think we can move on to item 13 which is other business. Anything, commissioners . Item 14 is a consideration of a closed session. Is there a motion to move into closed session . So moved. Second. So commissioners, i will do a role call vote. [role call vote [ commissioner, and folks who are on line, here is whats going to happen. I will end this meeting and this is the d. P. H. Staff and will not be moving into closed session unless they have been authorized to do so. And first folks who go into closed session are the commissioners and is sfg staff because it is it is a credentialing matter. Once we are done with that t laguna honda folk cans sign on. For right now, i will end the call and go to the next either in your calendar or in the emails i sent you with another link to go to the next session. All right. Thank you, all, for joining us memb a we need a motion whether to disclose or not to disclose. I will do a role call. [role call vote] thank you. And then the last thing you all can do is adjourn. Is there a motion to adjourn . No, i want to keep going. I am ready to put my mask on and get out of here. Please adjourn. All right. Thank you, all, so much for your patience and for this long meeting. I will be in touch with you tomorrow. Thank you, mark. Gallia have lifted the restrictions on teleconference. This meeting is held virtually with all members and staff participating today via teleconference. This will ensure the safety of the service board, staff, and members of the public. In our published notice of this meeting and on the webpage, we ask the public to participate remotely by writing to the board or by leaving a voice mail message. For all comments we have received before the meeting, we have received and appreciate these comments. There will be gaps and some dead air time as staff is transitioning technology between speakers, and that includes members of the public. Please note that we are doing the best we can possibly can, and we ask for your understanding and patience as we all work through this new way of working together. If we havent done so already, im going to ask all members of the board to mute themselves to minimize background noise. Board members will have to remember to unmute themselves to comment and when the roll call votes are held. Theres staff in the background who will be managing the technological functions throughout the meeting so we can move to whoever is speaking throughout the meeting. Again, we ask everyone for their patience as we make these adjustments. Lastly, we want to thank everyone who has made these meetings possible, including darlene, jay huish, and staff members, as well. The board appreciates [no audio] and we will begin the meeting. We will start with the roll call. [roll call] we have a quorum. Item number 3, communications. Item number 3, communications. Due to the covid19 and to protect the public, the meeting room is closed. However members will be participating in the meeting remotely to the same extent as if they were remotely present. This meeting is being televised by sfgovtv. Please note that there is a 20to30second time lag between what you are hearing and the meeting. For those who want to make Public Comment or listen on the listen line, the number is 8883634734, and the access code is 2241350. Please make sure you are in a quiet location, turnoff any t. V. Or radios, and if you are listening to sfgovtv, you mute the sound. At the appropriate [inaudible] you will be queued up in the order in which you press onezero. There will be an automated voice that will tell you when its time to speak. I will start your two minutes when you begin talking. I will say 30 seconds when you have 30 seconds remaining. When your time is up, i will say, thank you for calling. At that time, the operator will put you back on mute. I will repeat the instructions later in the proceedings as i am aware that some members of the public may join the meeting late and are not aware of these instructions. Alternatively, you may send Public Comment to sfers sfgov. Org. If you submit comments, they will be included in the next Board Meeting. President driscoll . Next item, item 4, Public Comment. Item number 4, general Public Comment. At this time, the public may address the entire board for up to two minutes on items within the subject. Dial the toll free number listed across the screen. Enter the access code, then press pound. Press pound again to join the meeting as a participant. When you hear that you are connected to the meeting as a participant, stop and listen, wait for the Public Comment to be announced by item number for general Public Comment. When the clerk calls Public Comment, dial one, then zero, to the added to the speaker line. The system says your name when you are ready for the speaker line, then to withdraw, press one and zero. When the system says your line is unmuted, please make your comment after the tone. This is your opportunity to provide your Public Comment after the beep. This is not a questionandanswer period, this is your time to provide a statement. You will have the standard two minutes to provide your comments. Once your two minutes have ended, you will be moved out of the speaker line and back listening as a participant in the meeting unless you disconnect. Participants who wish to speak on other items on the agenda or for other comment periods may stay on the meeting line and listen for the clerks next prompt. President driscoll, we received one email Public Comment that was requested to be added to the record. Via email, we provided a telephone line also. This Public Comment is from john stinson, a sfers retiree, and i will read what he wrote. Hi, jay, my Public Comment for april 22, 2020, Public Comment retirement Board Meeting is, when is our retirement going to follow the lead of calpers and divest from hedge funds. [inaudible] under the rules of the general Public Comment, Public Comment is limited to two minutes per speaker per item unless the chair specifies otherwise. Since we are unaware to tell how many speakers may be on a specific item, if we are too many speakers, i may cut it to one minute or limit it to 30 minutes to a total item. Thats the only rule. Weve been very fortunate; so far, we have not had to limit time. If theres time transferring between speakers, that time will not count again the two minutes. Okay. That takes us to item five. We have to call for Public Comment. Okay. Moderator, do we have any Public Commenters on the line . Operator madam clerk, there are no callers on the line. Clerk president driscoll . Thank you. Next item. Clerk item number 5 is a discussion item. Staff and consultant report on liquidity, analysis, and c. I. O. Report. Very good. Thank you, president driscoll, and Board Members, to begin, its wonderful to see you, and i cant wait to see you in person, and i hope that all of your loved ones are well. I just have a few documents to submit real quickly. One is we had a documeprivate secondary transaction sale that the board approved last march did close. The board approved for up to 1 billion, and it did close for 966. 3 million, and theres a few other closures that we could inform, as well, but were super excited we got that. The Health Life Science strategy, the board approved 100 million in december, and we got 50 million in that closing. The board approved two closings for mayfield, for their flagship and their select fund. We received an allocation of 18 million to their Flagship Fund and 11 million to their select fund. And lastly, an absolute return strategy, which the board approved 75 million in march. We did receive 75 million, and we think the timing on that is going to be absolutely perfect. With that, im going to turn to the document titled c. I. O. Special report on the covid Human Health Crisis and the impact on sfers. To begin, weve had an economic apocalypse, and were doing okay. To give some metrics as to what just transpired is we are expecting or forecast a 30 to 40 contraction in g. D. P. The previous worst alltime single quarter was 10 . Unemployment in a period of four weeks climbed from 3. 5 to more than 15 . It exceeded that only once, more than the great depression, and it took two years to get back to that level. Weve held up well in the month of march. We lost 6. 9 , while Global Public equity lost more than 30. If we turn to page 3, fiscal year to date, this big punch in the stomach that weve experienced is were only down 3. 43 at the end of march. That compares to Global Public equities, down more than 15, and 7030s down more than 9 , 9. 2. Theres been a lot of market activity since march 31. Our best estimate as of today is we are very close to break even. Weve maybe lost about. 5 , so were pleased with the overall results. We have had a couple of disappointments. If we turn to page 6, on absolute return. Absolute return held up very well in the month of february, when stocks were down 7 . Absolute return only lost 31 basis points. That was not the case in the month of march im sorry. Can i interrupt . Im looking at a fourpage c. I. O. Report. There is page 6 . This is a 12page document entitled c. I. O. Special report. Can you tell us which email this was sent out in so we know which folder to open . Clerk commissioner stansbury, it was sent to you again today by email. Ive downloaded a couple of emails that were sent today. Can you tell me which what time it was sent . Sorry to interrupt, as well. Thats all right. Clerk yeah, it was sent out 12 29 today. Okay. Thank you. Clerk thats the link to obtain all the documents. Okay. Thank you. Commissioners, should i go on or should i give you a moment to open up . You can keep going. Ill find it. Im going back now. Im sorry. Okay. So again, in the month of february, absolute return was down 31 when Global Equity was down more than 7 . In the month of march, absolute return lost 10. 5. Were disappointed with the results, but theres a part of a return thats important for us to be aware of. Half the loss, almost half the decline, is related to a decline in the value of Mortgage Securities, mortgage security bonds. It appears to us that investors are replicating their fear of what took place in the g. S. C. When Mortgage Securities lost a ton of value. In this instance, the fundamentals of the Mortgage Market are infinitely better than they were back in 2008. Loan to values are very low, and credit quality is very high. It was the exact opposite in 08. Some of these bonds are being priced in the 50s. Its as if the Investor Community for mortgage bonds is expecting a decembpression. We dont think that is going to happen. It would make more than a 30 decline in housing values and more than a 15 sustained unemployment for us to lose money in these investments. We think, over time, these are money good. This is a marked decline, and its not related to a decline in the fundamentals. The fundamentals in these investments are very strong. If we turn to page 8, regarding real assets, is that the Natural Resources part of our portfolio, we believe, lost about 30 to 35 . There has been a historic collapse in demand for oil. Its down more than 20 . The and thats related to the shutdown of Global Economic activity, including airlines, most and many businesses. The and in addition to that, the contraction the severe contraction and demand was exacerbated by saudi arabia and russia increasing production, probably to gain market share. This is an utterly nonsustainable development. The cost of production for russia is 40 a barrel. Prices have fallen from 70 a barrel to less than 20 a barrel in 1. 5 months. The cost of production for saudi arabia is admittedly very low, however, saudi arabia needs the price of oil to sell at 60 a barrel to fund their national budgets, and the oil market is incredibly important to both the economies of both saudi arabia and russia. I do think that theres some structur structural fundamental head wins in the oil and winds in the oil and gas industry, but we do think were going to recover some of this over time. I did want to return real quickly to page 10, item 5, and weve just experienced an economic apoliccalypse, and we essentially almost at breakeven yeartodate. Investors have defined what happens in two ways a vshaped and a ushaped discovery. A vshaped recovery is going to signal a rapid recovery. I think a rapid recovery is going to require a vaccine or mass testing of 7 million people. We will have mass testing and tracing available in a matter of months, but it could take nine months. An lshape is no recovery. Thats a depression event. There are some smart people. Ray dalio, the founder at brid bridgewater, believes that a depression is likely. Im of the opinion, my team is of the opinion that that is not likely. We believe in a ushaped recovery, and that depends on a couple of outcomes. The sooner we develop a vaccine, the sooner we develop mass testing and tracing, the sooner the economy is going to open up. We are likely to have a second wave, and a key is going to be how quickly we are on top of that. The Health Care System will be much better prepared the Second Time Around to manage the caseload and how quickly we identify carriers and isolate them and minimize the economic disruption of a second wave. Admittedly, whether the u is a short or a long trough, we think that people are adaptable, theyre resilient. We will find new ways of doing business together, we will find new ways of enjoying our lives, and over the longterm, we will reach new highs, and we will find new ways to create prosperity. With that, ill pause and turn it over to the board for questions. If theres no board questions, well move onto the next part of this liquidity analysis. Yeah, i have a question here. Dennis stansbury here. Yeah, go ahead. Im sorry. I dont have the document here, and i didnt catch some of the numbers. You talked about absolute return. What is going on with that . Yeah, it lost about 10. 5 in march after being down 0. 3 in february. So in two months, when the equity market was down 21, it lost just about 11. The key fundamental is about half of the loss is related to markettomarket pricing in the mortgage security market. Theres been a huge decline. Like, one manager whose mortgage security bonds were trading at 104 at the end of february, and i believe that brian, you may have met with that manager recently, but at the end of march, they are trading around 5. In 2008, we had big ramp up, all with buyers with minimal or no down payments, negative amortization, poor credit quality, everything is the exact opposite of that. The fundamentals of the underwriting have been very strong. For us to lose a dollar, ultimately, all we care about in private well, of course, we care about marktomarket pricing, but, credit investments, its money good if, when the loan comes due, youve got ten your income and you get your principle back. For us to lose money on these investments, unemployment would have to be north of 15 for a sustained period of time. I know its over 15, and its going into the 20s, but i believe its going to be more in the 10 to 12, 13 range in about a year. And not or, and, housing values would have to fall by 30 or more. That is not going to happen. The Housing Market is far too important to household healwea. Its also too important to states and government. Congress is not going to allow a fall of those values. Okay. So half of those 10plus percent loss is from one manager in particular . Well, no, its related to Mortgage Securities, and we have an ample exposure. I believe we have, you know, north of 20 . David, if hes on the line, he can chime in, but we have sizeable exposure to the Mortgage Market. And that was as of march 31 . Yes. Do we have good data across all of our funds as of march 31 . David, can you hear me . We do yeah, bill. And brian, we do. And we have, in the aggregate, we have about 4 managers in particular where most of the exposure is coming from, and the aggregate there is close to 15 of the absolute return portfolio. And as bill mentioned, this was the primary driver of the performance in the month of march. We had about 50 almost 50 of the loss in march was attributable to the value of the absolute return portfolio and was driven by allocations to four managers that comprised about 15 . Okay. Thats helpful. In terms of the rest of the portfolio, on private, when did we last get updates based on asset values . Do we have good valuation numbers based on the end of march . I think we have good numbers. The last n. A. V. That is recorded on our books for private values is recorded at the end of september, and that was booked on our books at the end of march. If you recall correctly, if youll recall back, for the quarter ending december, that was a really strong quarter, and those returns will be reflected on our books in june. Thats going to be a very positive experience. Private equity for the quarter ending for the managers values in december that will be recorded in june, thats about a 6. 5 return. For real estate, its about 3 . For private credits, its the 2 . Natural resources was flat, maybe slightly negative. So in the aggregate, those values as of december 31 that will be posted on our books in june are going to boost our returns by north of 1. 5 . Now, that answered the question. For march, we have good estimates, but theyre not super firm. Private equity, we believe, is down 10 to 15 , real estate is down about 5, private credit is down about 5 to 8, and its the normal its the natural real assets part of our portfolio that i was alluding to. Thats down about 30 to 35 . Thats been a complete wipeout just because of the you know, the evaporation of demand in addition to increased production. I believe that some of that will selfcorrect, but that those losses will be booked for the quarter ending september, and then, the recovery thats taking place now, that will be that will end next month, and that will be posted in december. Does that help . Yeah. Let me ask about the core for public equity sorry. Slipping back and forth between the different reports here. If i go back to the post equity returns that shows that were down 20. 16 correct. If i look at the equity markets over a similar time frame, maybe theres some mismatched with timing of returns, i actually show that the equity markets are neutral over that time frame. No. For the quarter ending so are you on quarter end 20. 16 . I am. No. The global stock market was down 21, almost 22 . I am looking at s p 500, just for example, and it started off january at about 2400 and change, and it finished off at about 2600 and change. Commissioner, im going to go to a website right now and get the return. And honor, kurt actually, commissioner, i know where i can get that. If youll hang on a minute. Bill, the s p was down 19. 6. And how about the equity . It was down 21. 4. Yeah, yeah. Brian, those numbers are right. Okay. Ill take it on face value. I must be looking at something thats incorrect here. Show later on, please show me what youre looking at, and ill try to resolve it, but those numbers allen just cited are correct. Okay. Thank you. Thats the only thing that i would ask is i this wasnt a part of the original board packet, and it got included because i asked for it. I know that everyone is trying to be mindful of time and other considerations, but at a bare minimum, i do think this is one of the more important items in front of us each month, and i just ask that it continue to remain in the monthly board packet as a priority. Of course. Thank you. Thats all. If theres no other Board Members asking for comments, well need to carry on with the liquidity analysis. Very good, mr. President. Everyone, im going to go to a document titled board liquidity analysis. L lets go to the liquidity analysis, and its a word document. Cash flow and liquidity is not one of the more attractive would be an adjective we do, but its one of the more important things that we do because it relates to the ability to have cash flow plan benefits. If we look at table a, we see that thats going to increase by 2025 to 914, so thats an annualized growth rate of more than 11 , and by 2030, well be paying out 1. 3 billion, and well have almost 800 million more than currently. [inaudible] you look on the row or the last row for year 2030, our tenyear accumulative pension payout, its going to be almost 10 billion payout. If we go to table 1 on page 6, this one relates to cash flow and having money to pay plan benefits and how much is locked up, whos timing when we receive cash and when we receive cash is out of our control. And the attractive markets, the attractive part of private markets is we earn a good return, but we dont control when capital is recalled, and we dont control when capital is returned to us. We see here in the base case, we see that were going to be around 50 here for several years. In the stress case, which is a repeat of the g. F. C. , we see it reaches a high of 55 , and the one thing that ana and i have learned is that we need the stress case may not be stressful enough. We thought that the g. F. C. , it was the worst event in 100 years. Its possible that we could have something worse than the g. F. C. Im going to return to that in a moment. If we could turn to table d. This is the net cash inflows and outflows in different scenarios by year. You see that in 2020, we expect that in best case, cash outflows, and you see that persists every year for several years. As far as three years out, its either plus 521 million 521 million or 677 million. Thats because these stress cases stress test the earlier years. They dont stress test the later years, when our stress test is even higher. That is something we plan to stress test for, as well. Table e, then, is a accumulative of several years. For example, 2022 would read the accumulative net cash outflows or inflows for provide markets from 2020 to 2022, and you see that that ranges from 61 million, which is essentially flat, to a a 2. 8 billion, and thats a big number, and thats currently a little over 11 of plan assets. And its that kind of planning and even worse that we need to plan for, that we have liquidity available to pay plan benefits. The table f, then, combines the cash flow for pension payments and private markets next capital calls and distributions. And youll see that in 2020, in base case, its 676 million or about 2 of plan assets, but in stresses, its 9. 5 billion or 6 of plan assets. You see theres significant variability. And then, table g, which is the most important, which is the accumulative multiyear so beginning 2020 through whatever year is headlined on table g, is the accumulative cash flows for pension payments plus capital calls. And so youll see here lets take, for example, in column 22, or for year 2022, it ranges from a 1. 6 billion to a 4. 4 billion, so we have to have 4. 4 billion, which is currently 18 of plan assets in case the best Case Scenario unfolds to be able to pay benefits. Theres significant lockup of longterm capital and significant availability between when capital will be recalled and when capital will be returned to us. So that leads to page 8, and these are the considerations that we want to begin to have a conversation with the board. Regarding provide markets, we dont control when capital is called, we dont control when its returned to us. We give away that control because we think that were going to earn higher returns by investing in private markets than we would investing in public securities only, and also to reduce total plan risk. But the upshot of that is item number 2, is that does lead to a significant variability of cash flows and also longterm lo lockups. So i want to assure our board and our members that we do have plenty of liquidity to pay for plan benefits under every scenario that weve imagined. We do have some work to do, which leads to items 4 and 5. We are a little bit percent overweight, and without the sale, we would have been about 8 overweight. So i believe that were going to begin to tap the brakes a little bit and plan for the day when our pension benefits are going to be a little bit higher today and into perpetuity. We need to plan for all scenarios, regardless of how bad they may be and how many years they take, is we always have benefits to pay plan benefits. So were going to reduce our pacing this year from 2. 4 billion. I planned for 1. 6. Might ease that and allow it to go to 1. 8, 1. 9, but were going to reduce or strategic allocation to private, from 45 to 40 , that were going to begin to enter a glide path. We dont need to do all of that in one or two or three years, but we need to enter a glide path to reduce the amount that when we make commitments, its ten years until we have a return of capital at least in equity investments, provide credit is materially shorter than that. The other thing were going to do is were going to increase our modelling. What weve modelling for is a worst case g. F. C. Ana and i have modelled others, and were going to bring those to the board. Theres two components to that. One is were going to model something worse than the g. F. C. , and the other is we are going to model a stress case in the outer years in the scenarios that youve seen, say 2025, 26, 27, and that will be important for us to review because our pension benefits then are going to be larger, and as a result, is market dislocations at that time and not being able to control our cash flows and distributions being pushed out even further can have a material effect on our plan. And with that, im going to pause and just ask the board for any questions. I do envision that ana and i are going to come back with a revision in a couple of months and come back with an Asset Allocation in september. Before i turn it over to the board, i want to ask ana to pour over more of the salient points in her document called liquidity scenarios. Ana . Thank you, bill. Good afternoon, and id like to thank our partners from cambridge who worked tirelessly with us on multiple scenarios. As bill mentioned, we present three scenarios. [inaudible] im going to share the presentation let me see. I think in the board material, it starts can you see it . Yes. Okay. On the board material, it starts on page 55 with a skyline of San Francisco. So i will start with a review of the liquidity management framework that bill and i presented a year ago, and bill just mentioned that it starts with the first pillar, where we need to go through rigorous forecasts of cash flow expectations for private investments. We allocate 45 of plan assets to private investments, and its important that we understand the implications of the cash flow in base case and the number of stress scenarios. Thats the first pillar. The pillar on the right forecasts a pension obligation. That was table number table a that bill mentioned. This is something that we work with actuaries in february 2020, and just this february, chyron presented the latest bases in stress cases. This presents input in how are we going to balance out our portfolio, what is the Asset Allocation, and ill also touch on the two new parts in the middle pillar of our stress testing and liquidity management, where we realize that we would like to have a credit facility, which we do not have so far, but we started working with our custodian, and well be presenting, bringing options to the board. And we also would like to plan for longer term. Bill mentioned ten years, but here, we will present a threeyear liquidity coverage ratio, l. C. R and mlcr. So ill start here, and this is just the pension allocation. This is one portion of our net outflows, and you see right now, the net cash outflows are about 2 of the plan. Theyre expected, in five years, to increase considerably, by 8 or 9 , so higher than the expected return, and even more in ten years. So the plan is maturing, and the liquidity requirements from pension obligations are rising faster, rising faster than the expected rate of return. Thats the takeaway from this page. Next, were looking in the history in the past six years of what happened to the cash flows as well as Asset Allocation. So for the last six years, we increased allocations to private Asset Classes considerably. We also had considerable commitment, so you will see that the middle column that says fiveyear average commitments, this is from 2014 to 2018, and just next year is our experience in 2019. These are actual numbers, and you can see that we were committing over 2. 5 billion for six years to private investments. So over committing versus the planned pacing of 2. 4. We also if you go to the actual cash flows, which is the last three rows, you will see that over this three six years, it was more than 500, closer to 600 million net cash outflows going into public investment. In addition to the pension obligation that we just reviewed, so to the total of 3 billion in net cash outflows over the last three years. Moving onto 2020, as bill mentioned, we are operating under very varied economic outcomes right now, and as a result, wed like to measure the commitment page. And we worked with our partners at cambridge to look at multiple different scenarios and multiple pacings, but we do need to see what is it that were looking at . Looks like one minute well share this. Is my connection okay . Here is the updated version. So you will see that the forecast is broad. In the base Case Scenario, we will expect about 367 million net outflows, but in stress case, its four times the the value, or 1. 45 billion. This is broad, and we this is a wide range. And bill just mentioned that the opportunistic modelling leads us to assumptions. If i may, we have a lot of assumptions if you look through cambridges report, even what is the base case, what is the gross assumption for those Asset Classes, and then, we need to make assumptions of the contribution rates and distribution rates. And we have to model many different scenarios. We dont know what assumption we are operating on, but we do have to plan for a wide range to make sure that we do understand how we will have to restructure in the portfolio under different stress scenarios. And how do we do this . If youll remember, we put every asset in our portfolio into one of the four tiers. You wanted something that we can liquidate in less than a month, and then, you wanted something that will really take a long while to liquidate. So this is the picture that we have for 8. We have in tier one, immediately available, 6. 4 billion, and within a year, its almost 13 billion. Then, we go and stress test, and say, well, this is under current conditions, wh. What if there is a negative impact on all of the fund thats we hold, and we take stress tests, expected annual volatility and apply this downward scenario for each asset class, correlation one . Fully correlated, and thats the market stress one standard deviation on the next page, page 9. And you can see that in this scenario, we still have plenty of liquidity. We will have to touch on the potential equity and absolute returns, depending on our liquidity profile. But on tier 1, we have 5. 6 billion, and within a year, we can have 11 billion. Then, we control the scenario where we take the deviation, annual standardized deviation and take two deviations. Fully correlated, shocked to assets that we hold and look at liquidity scenarios. Where are our assets . Now our assets are fully down to two standard correlation. We still have 4. 8 billion that we can raise in one month, and 9. 5 billion that we can raise within a year. So we reviewed the needs of cash flow, and bill walked you through the accumulative Case Scenarios. This is reviewing the assets that we have. Next, id like to introduce a longer term threeyear funding ratio, how we think about the funding risk hello . Can you hear me real quick . The screen is not moving with pages as you speak to a page. Could you either scroll to the page or tell darlene which page youre on . Very good. Now its moving. Thank you. Okay. Im on page 10, i believe page 11. Page 11 of the liquidity operation, where we introduce a threeyear funding rate scenario. So we introduce what we call liquidity coverage ratio, where we take the liquid Financial Assets, which we just covered on the previous pages. Then, we take the distributions, again, with different assumptions that we worked with our partners from cambridge, and then, we look at the employer and employee contributions that we expect. These come from chyron. Thats the denominator. The numerator, thats the number that we have to pay. If the ratio is more than one, we have liquidity. If its less than one, we dont have liquidity. So the results are on the next pag page,. Page 12 talks about gives an example, and its in the appendix, but id like to draw your attention to the bottom right table on page 12. There is a lot going on, if youll remember, we are stressing the assets that we have available. In the base case, what we have now, one standard deviation down, and two standard deviation down. Then, we have so thats those on the rows these are the columns of the drawdown scenario for liquidity coverage consideration. And then, the rows are the stress test that we worked with cambridge in terms of expected contributions and distributions, and these are the base case and no growth scenarios g. F. C. Stress test. And you see that under all stress Case Scenarios and under all assumptions for the asset, we still have our coverage ratio for the next three years is less than one. We still have funding to cover the next three years of needs under all scenarios. The next calculation that we consider is what we call mortified consideration ratios, meaning, well, we might not want to reach some of the risky assets, such as public equities or absolute returns. Do we have significant liquidity just in core incomes and significant liquid assets. Im on page 13, and looking at the table on the bottom right. You can see in this Case Scenario, we have significant liquidity just in core bonds. But in stress scenarios, especially under no growth and stress scenarios where the call ins or increasing and the capital calls are decreasing, we do not have significant treasuries and corresponds to cover all our liquidity means. What does it mean . It means that we do need to reach to risky assets and sell some public equities and absolute returns. So i will stop there. This is the new material and kind of longer term liquidity plannings that we were working with our partners in came page and also making sure that we, as weve experiences high calls, capital calls over the past couple of months, we have a lot of liquidity. I know there is a lot to cover. Please feel free to reach up to me and bill directly. Happy to set up a separate review, and happy to take questions now. Ana, the screen is still on page 12. Could you turn it to page 13 . My screen is on page 13. Okay. Okay. Page 13 and apologies, but it said the board package is called liquidity management update presentation, page 13. Yeah. Board members, to sum up, what you see on page 13, you see a number of scenarios. You see the liquidity ratio is well under one. What that means is depending on the scenario, we are going to have to sell public equity and absolute return rather than treasuries and core bonds to fund capital calls and paid plan benefits. And its this kind of ratio here thats well under one. We want to raise that number closer to one or at or above one. A few of the other couple of Key Takeaways to this presentation is as you saw, were becoming a more mature plan. As we become a more mature plan, its important to know that and as Pension Plans rise significantly theres going to be 2. 510 x than what they are now, is Pay Attention to when those cash flows are due. The other Key Takeaways is well do some additional stress testing, in addition, testing for an environment more stressful than the g. F. C. And also stressing for years in the out years when our pension payments are going to be much larger. Were committed to being in the private markets. Weve earned really good returns. The team has done great underwriting. The returns have been great, we have highly valuable g. P. L. P. Relationships. Its just a matter of scale, just a matter of size, and how much liquidity we want to give up, how much we want to not control our own fate as to when capital is called, given, returned to us, as to how much cash call were going to need to pay liquidity of benefits. Im especially thankful to the board to take time at an especially disruptive time in our lives to hear this item. This is something that weve been living the last couple of months and something that we definitely need to have a longterm plan for, as well as a shortterm plan of when we draw. If we have a major market dislocation, distributions get pushed out several years, and capital gets called because theres been a market dislocation. Thank you very much for hearing this item. Well be bringing back another volume of this item in a few months, and were available to answer any questions. Okay. Well start with Board Members asking questions of bill and ana. If theres no members of the board asking questions, i have a couple, and ill try to make it brief. You said a few months for an update. Can you be more specific . June or july. Secondly, in terms of adding the stress, some of the data that is used on either the page 12 and 13 we have or the page that ana was referring to, the assumptions into model is what im questioning about. If [inaudible] im just wondering how reliable that is. The distributions would be the same for those for both l. C. R. And mlcr. What would differ is the distributions do differ for the scenarios between base, no growth, and stress. Its not ana, can you speak to that . Yes. Certainly, im happy to take that. Commissioner driscoll will see that the distribution and contributions are different under three different scenarios, so we analyze three different scenarios base case, no growth, and g. N. C. For all three private investment Asset Classes. Thats on thats presented in cambridges reports for details and summarized in bills liquidity updates on the table in the last tables. For l. C. R. And mlcr, we are taking accumulative threeyear contributions and distributions that we worked with came page under these three scenarios, so they are different under three different scenarios. And ana, i believe we also stressed the distributions further. I mean, cambridge had their distribution schedule under the three scenarios based on history, but we further stressed those, did we not . Yes, we did, especially private credits because private credits credits g. F. C. Scenario, we felt, was the least associative at that time. We worked closely with the different scenarios, but if you see on page 6, where we look at our assumptions, worst Case Scenario, we added another 200 million in net cash outflows to private credits just, again, because we didnt have a good base case for g. F. C. All other scenarios, we replayed g. F. C. Scenarios. Okay. Ill try to go back and pull the cambridge numbers to line it up with page 13. I forgot thats how its assembled. Right. And if youd like to get to the details, we also provided the calculations in the appendix, but happy to walk you through, president driscoll because cambridge has one year, and l. C. R. , the liquidity coverage ratios are threeyear calculations, so longer term planning. Yeah. The drawdown scenarios on pages 12 and 13 are reflected. Thank you. Anymore board member questions . Okay. Were going to call for Public Comment. Commissioner driscoll, this is allen. Go ahead. Let me just comment, this is not a shocking surprise. We had a major drop in the market that did impact everyone with respect to liquidity, and looking backwards, weve been aggressive in our commitments to provide markets, so that counts for some of the overage bill talked about. The other overage is over the last few years, as good as its been, public equities have gone up. Real assets have gone up 12 , and private equities have gone up 14 . Were at a point that we had more private assets that we liked, and i think bill and your team are wise to recognize that that pace needs to slow down a little bit in phase of liquidity needs and where we are in the cycle. We shouldnt take this as shock, shock, its drawing down some of these Asset Classes where we dont control the cash flows, then we should address it now when its not a problem. Yeah. This is not bad news. This is where we have changing character fix of our plan. Weve been doing very well, so weve become overweight. Liquidity wouldnt matter if we had no pension payments for a long period of time. What matters is the intersection between having growing pension payments and liquid investments where we dont control when capital is called and when its distributed, so theres just an art here. Have we been selling assets for sometime in order to pay pension benefits . Well, we always do that. We have to. We have to. Yeah, we have been doing it for a long time. In terms of this maturity issue that you raised, then whether or not weve underestimated how much the effect on our liquidity because we wanted to put more money into private equity and real in order to get a greater rate of return, we were willing to trade off for that liquidity premium. Thats an issue of maturity. Yes. Commissioner driscoll, i would like to say that last year, we presented a g. F. C. Stress scenario, as well, and that is more stressful than what we presented today, as well. We will presenting those cases, but we did present g. F. C. And base Case Scenario exactly a year ago, and we did provide the ranges. Now, we didnt think that would be the base case. We didnt plan for that, but now, we are operating under different conditions, and that also requires a change in liquidity management. Yes, it does. Any other of our presenters need to comment before we turn it into Public Comment . Can i ask a question . Go ahead. For our team, in terms of our returns, we would expect that that would impact employer, potentially income costs in year two, not this coming year. It sounds like we would be rolling it . Not directly. But it would be spread out essentially, so the impact would be felt in year two, im guessing, not in this coming year . Not in this coming year, further out. Further out . Okay. No. We will recognize partially and start amortizing in one year. The other covered contribution is payroll thrust. That will not be recognized until one year from now. Again, that will affect the contribution rate. And in terms of our numbers that youve calculated here, you have sort of what our anticipated numbers are here and what we project over time. Its not as immediate here, but then, eventually, were going to be marrying up all of the impending changes in terms of any changes to employment numbers as well as wage changes and so on, right . We will have to upeveryth g upeverything update everything in terms of market rate, head counts, etc. So i appreciate all of the work that youre doing in terms of liquidity numbers. I do worry when we put the g. F. C. Numbers in our worst Case Scenario, its not the worst Case Scenario. We have much to be monitoring, which you will be doing. Im wondering if were moving to a worst Case Scenario that wont be a g. F. C. Scenario. And im wondering what youre monitoring if were getting out of that modelling to where it would not be a realistic place . Well, this is going to be a discovery process. The g. F. C. Is the worst event since the great depression. The current environment is especially unique because its the first time where Economic Activity has had to shutdown, and theres been a choice made between lives and livelihoods. Thats a severe choice, and the my sorry. Im getting an echo back here. This shows me the vulnerability of health, life. It showed me the vulnerability of Economic Prosperity for an individual, for an entire sector, for an entire city, for an entire society in a new way that i want to plan for, that if something, say, happened, where we combined the infectiousness of covid19, it was a very infectious disease, its not an especially fatal disease. I think its going to come down well less than 1 , but what if theres an event in the future ebolas fatality rate was 30 to 50 , but it only lived a few seconds in the air. What if theres an event i have to think about worst Case Scenarios. What if you have a scenario of the magnitude of covid19 and the fatality of ebola, and we have a multiyear where theres a shutdown of Economic Activity . Theres going to be an art of discovery here. Were going to come back to the board here with what weve modelled, and were going to have some choices to make between how much capital are we willing to lock up for long periods of time in change for higher returns, which weve been successful of achieving, but we dont have access to that cash in a long period of time. Right, and i think this is the question because all of the modelling that weve seen shows adequate modelling when were modelling against a g. F. C. Scenario. Thats very comforting, but im just wondering at what point do we have to be changing our scenarios for liquidity if we think were going to be heading down a continued path. I appreciate that theres continued work that youll be doing, but i think it would be helpful to hear from you at some point about some of the things that youre monitoring in the marketplace to show us that we may be heading in that direction, because i think that that is a timely conversation that we need to be having. So that is a comment. And then, the last question i do have is in terms of this current environment that were in, it certainly is unprecedented, and i just wonder, weve talked about a lot of the private capital that we had committed or the capital that weve committed to our private market, and the fact that we dont have a whole lot of control over when its called. On the bright side, some of that or much of that has been underwritten already. Im just wondering, does this kind of a scenario present an opportunity for us for renegotiation of fees or do we just think that the investments that weve already made will be able to maintain assets at a lower or achievable price. What does that mean in terms of what weve already committed to . Yep. So on the first point, were not going to be able to renegotiate fees. However, the good news is the underwriting for this tik this particular process has been done. We can call the cash. So our debt capital is in place. The research has been done, and managers are able to call capital. The answer to your second is a resounding yes, this is a great time for managers to call capital if we have a recovery, which i think were going to, its just going to take some time. Regarding your first comment about the the stress scenarios, we represented to you today the three in a weve presented earlier. Ana and i fully recognize that the stress case may not be stressful enough. Were very much on top of that. Weve done a lot of modelling so far. We want to finetune some things and come back to you, as i indicated to president driscoll, here in june or july. We do need to have a contingency plan. I think the g. F. C. Is a oncein40or50year flood. We need to prepare for a 100year flood. Thank you. I just want us to i want to understand, does does the money from sfreers right now present itself as an attractive opportunity for investors because sfers has a Stable Revenue source, perhaps, or somehow does sfers investing knack itself look more attractive to the market entities . Well, were considered to a very good l. P. But even more so, im wondering . Yeah, very much so. Managers, early in this crisis, they a they were saying, weve got some deals. I think we had 3 x, almost 4 x the amount of calls for capital in march than base. So managers realized the dislocation and were beginning to call capital. So were a reliable partner for them to turn to, you know, when they have investments to make. I did want to mention your liquidity concerns at the top of your question. I would just amend that to say liquidity planning. Yeah. I think under the current scenarios we looked at, we do not have a liquidity issue. We understand that, and a lot of things are changing. Yes. Yeah, yes. Thank you. Brian stansbury here. Just one quick question for you guys. Im trying to connect asset values to when were getting reports on the actual returns. So if we just this is a little bit of a repeat earlier, but if we just go right down the list, obviously, public equity is realtime. Is there any delays of public asset values in terms of reporting . No, not for monthly or quarterly reporting. Its maybe a week or two, but for your purposes here, those are always light numbers. An absolute return sounds like its pretty fast, since we have all of those from march 31. Those are all 100 current. And then private equity we said lag by two quarters. Yes. And then public equity . Two quarter. Private credit . Two quarters. Im just thinking about this as it applies to liquidity. How do you factor in these delays . Into liquidity . I can take that, bill. Sure, ana. Go ahead. Brian, this is an excellent question. If you go into the presentation on the assets liquidities, we classify all the liquid assets. That is private equity, private credit, and real assets, as tier 4, and we do not rely on any of them in our liquidity calculations. Is there a particular slide i should be looking at . Yes. This would be starting at page number 7, where we classify the framework, and then, on pages 8 to 10 present how much assets and how much in each tier. And youll see private, which is private equity, real assets, and private credit, all in tier 4. And if you look at tier 3, thats what we use for all of our liquidity calculations. So take me a step deeper. In terms of tieing all this together, should i be looking at the slide 11 that talks about the definitions of l. C. R. And mlcr . Correct. So there are a number of things, so correct. Slides 8 through 10 presents what do we have in asset conditions under normal conditions, one standard deviation shocks and two standard deviation shocks. And then, if you go into liquidity coverage ratios, say, slide number 12, right, you will see the columns based one standard deviation and two standard deviation. The assets that are that we count in those calculations are only tier 1 to tier 3. We do not count any private investments as Financial Assets available for us to cover pension obligations or capital calls. Except for when okay. When except for distributions and contributions under different stress scenarios. Im sorry to rehash some of this. No problem. I understand youre not looking at it in terms of distributions to us. Are we looking at this in terms of there are capital calls in this, correct . Correct. So if you look on page 12 and how we calculate liquidity coverage, its the liquid Financial Assets, and what do we have vablg available in dif distributions and employee contributions. And what do we need . This is the benefits and payment plan expenses and the capital calls under different scenarios. Okay. All right. Thank you very much. Got it. And bill, just earlier, since were talking about asset values, im sorry, i had the website punched up from january 1, 2019 to march 31, 2020. No matter how many times i did it, it looks like it didnt update it. Sorry for the confusion on that. Well, brian, that brings up a good point. That 15month period, nothing happened. The return was about zero. Yeah. Okay. Im done. Thank you so much. Any other Board Members before we go for Public Comment . Okay. Producer, Public Comment . Darlene . Clerk yes. Members of the public who are currently in queue wishing to provide Public Comment, please dial onezero. When it is your turn to speak, the system will prompt you automatically. Those who are not in the queue, please follow the instructions you see on the screen. Moderator, do we have any callers on the line . Operator madam clerk, there are no callers on the line. Clerk thank you. President driscoll . Okay. Before we conclude this item, obviously, a ton of work was done by cambridge and nabc, but also our own staff, bill, and ana, and the whole investment team. Thanks very much. Weve been warned there will be more updates as the scenario presents and the data is updated regarding important decisions that we have to make. Again, thank you for all your hard work [inaudible] thank you. Thank you, commissioner. Thank you. With that, next item. Clerk item number 6, action item, approval of sfdcp stable Value Investment manager. A reminder to Board Members to mute themselves to minimize background noise. You may begin your presentation. Just as an update, im presenting today because diane chiuy justin the birth of her child is imminent, so she had asked me to step in. For this item, we have greg underman and kyle keith who conducted the search for the stable Value Investment manager. As many of you are aware, the Stable Value Fund and the deferred comp usually comprises roughly between 25 and 30 of assets. At the end of the calendar year last year, it was nearly 1 billion. Galliard has been managing this fund for the last five years. Their contract is due to expire in june of this year, at the end of june, and to the deferred Comp Committee tasked staff and colin for the committee to interview. In february, they had narrowed down the result to three managers. Galliard, investco, and mellon. They were invited to the deferred Comp Committee, and they presented three presentations, and after that, the committee voted to retain galliard as the stable Value Investment manager, coming to the full board for approve. Like i said, i have greg and kyle if you have any questions or if you would like them to do a highlevel presentation of the search that they conducted, theyll be happy to do that. Whats your pleasure, president driscoll . [inaudible] im happy to echo jays comments. Galliard really has been a Strong Partner to the board since they were hired in 2014 theyve diversefied the fund. As jay mentioned, it was about 1 billion, but i would remind the board that there are four underlying external managers as well as internal galliard management, so its very well diversefied and continues to do a very nice job in this scenario. We have seen very snies casnic, particularly for the month of march. So ill pause there and really see if theres any questions. Happy to walkthrough any of the materials as needed. Commissioner driscoll . I was going to recognize Committee Chair bridges. She might want to make a comment. I did. Can you hear me okay . Yes. Yes, to commissioner driscoll and to the board, the deferred Comp Committee did listen to all participants that were brought in. We reviewed them in detail in terms of the Due Diligence that was done with our consultants, and i would say that given the