Transcripts For SFGTV Historic Preservation Commission 10516 20161015

The next stage of this. They are also looking into areas of basically continuous processing cycle in order to support that. So next in and im hoping eventually the board would be able to see their bitmap of the war. Basically you touch anything on the map and it will show you where you are invested in. What reason, what country, what is the specific location and what is the specific company. That is a level of big data that they are headed towards. Also i was going to add their current platform is very sophisticated Compliance Mechanism so they are reporting. That was my next question. As i look through this research [inaudible] b and y malin and i guess i could not find a whole lot under diversity practice. To me a little about the diversity and their practices as i could not find a lot on the website. They are here today. If they want to enter that iraq. I think there are 45 here. At least two are women. So we got the helpful spirit i would like to know in terms of for example the [inaudible] carbon can we ask that grading system because theyre doing a lot more work . [inaudible] back to me done as well. Thank you anyone else . Thank you for your presentation and candor. Lets take Public Comment on this item. Public comment is open. [crosstalking off mic] if i could just ask the question i would tell you that they had proposed a couple of slides that adjust your issue in their presentation and we would ask them to basically be available to answer that directly to you. I will also clarify to commissioner bridges point, this action is recommending we transition Custody Services from Northern Trust to be in wide melon and Northern Trust will remain the securities Lending Agent for us until staff brings forward a recommendation on that piece of the rfp. And bmi melon is prepared to accommodate a separate securities Lending Agent in their custody. Thank you. Why dont we see if theres any questions. Commissioner bridges did you have any . [inaudible] did you want to hear the presentations [inaudible] we invite them to join and answer questions of the board. You can introduce them as they come up. You can tell with the bulldog is, i think. All make up lethal, and to start being 65 and being characterized as a bulldog is a good thing. Bulldogs are loving animals. Theyre very loving for the for the relationship [inaudible] carolyn are you going to kick off . Were very excited to be here with you this afternoon once it again thank you for your time. Excuse me. The way that we want to structure the next several minutes as witness describe our products and service we welcome the opportunity to answer any questions you may have. As a point of reference, and carolyn faris. I comanage our corporate government and nonfor profit business in the us at bmi known. Bmi known is an organization that essay has a very simple operating model. We do things but we do them really well. We manage money, 1. 6 trillion, and we safe keep assets, about 29 trillion around the globe. Imagine these numbers because what it does it demonstrates that we are committed to this business we are here to stay and able to invest in it which is the most important thing. The ongoing we invest about you heard the number early about 700 1 billion into our system on an annual basis. We are very focused on our products, our technology and our people. For example from a product perspective, we are the only institution that is able to give you transparency across all of your portfolios. Transparency with a lens into alternative assets. From a people perspective, we are very focused on talent management. That is at the cornerstone of creating a Service Culture within this organization involved in just a little bit will cover the governance around that. We invite you to join our client advisory ward members fit the client Advisory Board is very small group of clients. Theyre the largest more complex entities we work with and that we support them together in partnership we are able to build and deliver a solutions record the solutions within our banker reinvestment and products and technologies. That way we are able to take all of the heavy lifting off you and give you more time to focus on what is important. I, myself, have grown up in the public space working with entities like yourself. So i know the importance of giving you people that are empowered. They are an cap will and as such we are dedicating onsite resources. I spent a number of time within an ideally basis working with our Product Management team. Working with our Technology Team can to ensure that the services were putting out to the market to entities like yourselves are focused on really helping you create operating efficiencies within your environment. Managing risk. Addressing regulatory concerns. This is what we mean when we think about ourselves as an expansion of your staff. With me today rt members of the team. These individuals who are handpicked. To my right i would say the bulldog whereas icom, bob dollar. Bob has 20 years of industry experience. He developed his career in working with public retirement plans and private retirement plans. Earlier this year we were at hand in hand and want white paper to the market is this white paper focused on clients like yourselves who are asset owners but also as it managers. Really defining the type of infrastructure the operational categories that you need to focus on when you have that type of set up. To my left is mary mitchell. Mary comes with 17 years of industry experience. Mary is completely focused on supporting clients through implementation. So she and her team is doing all the heavy lifting for you. We are coming to the table with signature writing documentation as we prepare prepost and during conversion and im happy to mention mary and i started working together on client implementation back in 2002. On the client in the state of ohio who still a happy client of ours today. Last but not least we got darren peter. Karen has been within the industry for 18 years. All of which is been focused on performance, risk, compliance and accounting. So this is an individual based on the west coast that understands the importance of transparency, quality, what to the numbers of the paper truly represent. Let me stop you here. We read the material in the bios. Youre all very talented. We thank you for being here. Were happy to see you but i think that theres a specific question that the board actually specifically commissioner bridges hagood were just going to jump in and get it done. This is like the new face of the San Francisco retirement board. Working to go straight into. Okay everyone appreciates that. Thank you. Okay, leona, its all yours. Your question was about diversity. Im can apologize the board will cope with a horrible cold yesterday so bear with me. This slide we originally intended to place in the deck shows that 16 of our executive committee are women, 40 of our total Global Workforce are women could i happen to report to a woman to my left. 27 of employees at direct level director level or above are women. 30 of our employees at the Vice President level are women. Excuse me. Under hiring diversity, 42 of new hires globally in 2015 were women. 31 of our total Global Workforce from divestdiverse ethnic backgrounds. Im sorry. 37 of new hires in the us were from diverse ethnica show backgrounds. That is globally. That is all new hires. Director above the . Director above was cited above. 27 the only specify director above that by differentiating between male and female. So we dont have i dont have the global figure four diverse ethnic racial backgrounds. Director bridges was your answer question satisfactory not really but i will followup directly okay. Commissioner driscoll have argued on their . Is a brokerage operation it is. Thank you. Mr. Makras [inaudible] i support the item where it says that the [inaudible] rfp in december 9, 2015. I just want your mind everybody that we issued in august 2013 and then we started over and then it was shot out december 9. So the appearance of this that were doing it in less than a year but in reality were doing it roughly three years. [cough] thats it. Thank you for that reminder. [laughing] thank you mdm. Chairman just a couple questions on the custody. First of all we talked about the lending that will come separately, correct . Jp is good but their hat in the ring as well so youll be a contender for that okay i just want to clarify. Do you have any idea when thats. 2, commissioner, commissioner bridges and i were talking about this a week or so ago. We think a good place to begin would be on support education regarding security line. We want make sure everybody understands the nuances and based on that education, that will inform us going forward. If the board is ready weve got our questions. We know whether we want to do this are not cured that stock were to take that long. Good. I think that makes a lot of sense because a lot of people dont know what securities lending is good were learning as we go along. In terms of theyour opposite dino in the big office on Mission Street here in San Francisco. Thats a different area though. Most are opposites are domiciled in boston, believe is where this the custody is. Is that accurate in boston im based in the Everett Office which is about 20 miles north of boston. We have offices in new york city. Weve offices in pittsburgh. Then gone is located in art, autos will be the closes in terms of the custody is what were hiring for what would be the closest office to us and staff here in San Francisco . With respect to custody and accounting the Core Services are based out of my office. In everett suet is in her boston. He was yes is also important to mention work in a resource here on site in your offices with you working. So they are supported by the group that we also have in everett which is where bob is based if i may believe you spoke with stanford on another matter that i happen to be my client and we just resourced and onsite person at oncampus. Thats working them through a large Data Management project. So i would envision utilizing a resource that we use at stanford here. So preconversion, get them in. How do some of the preconversion work, walk you through conversion. Through the First Closing of the books. Train your staff on the systems. Eyes and ears on the ground. Helps me, to get it beneficial to the retirement system but its also couple to meet in terms of the transition we can do parallel so that we have something to track with our existing provider . Yet. Typically what we do and mary, this is your expertise. This why we brought barrier for the business change they handled the transition from your current custodian to a state can you give kind of a 32nd blurb i can get away from the custody percentage of cleancut oh. Julie is in a parallel process per se. There is a process that employs reading up to the conversion where we work with the current provider and get periodic updates on holding styles. Well take a look make sure everything is set up on our security master system. At the formats work before the conversion entries are typically posted. To ensure actual question typically to cleancut over that would be on the accounting side. We typically employ a process called prepositioning and what that means is working to take the ending values, all of the ending values from your current provider so using january 1 as an exhibit take all that as of december 31 and thats what we will book. Thats where theres a break in the books could what you think everything will be up and running when will be totally in your jurisdiction . Typically in terms of asset settlement effects which are asking in the domestic side that can trade date the settlement date conversion date are all the same date and then globally theres a settlement period secondary alluded by market. So assets are usually in the door within the first week. We might have a couple of physical assets that lack a little bit back, stop. They be some registration but in terms of being up and running from accounting we employ a process of the were up and running day one modestly. You need to be thats pretty impressive. One thing just a little history this is the third custodian ive seen. It was Bankers Trust then Northern Trust and you are that good everyones on their best behavior when they want to position it so tell me and then we saw how it deteriorates with your predecessor. Mr. Makras all goes awfully to chicago again even citrate. Why give you an idea of how the relationship and the services were provided early on to jerry. Once you convince me that is not happen again great. Videos referred to as the bulldog for a reason. One of my biggest jobs as client advocacy. Its part and parcel of what i do to walk the hallways of our organization and advocate on your behalf. So that seat thatmention on the client Advisory Board is of critical importance to me because thats my leverage that your client Advisory Board member. Your marquee name in our public fund arena and youve got an executive sponsor on the relationship. Beyond that, further in the deck, i was going to talk about part of the on boarding process with the business change that mary is with the do it best practices review. So we will come out here on site meet with the staff. Go through what they do on a daytoday week to week monthtomonth basis. We want to see every report that they have so that we can be sure we can either replicate it or improve it. Weve got a good view of all of our clients on boarding into our our network. We may make recommendations for change based upon the weight your processing something. Those changes are typically efficiency written and Risk Mitigation driven. Once we go through that practice the best practices review and we convert the system in, we will have at least Weekly Service meetings right around the conversion. Once we get into be a you i would ask for monthly Service Meetings from the core servicing teams that would meet the Client Service person, darren for our performance, the accounting team, meet with your team with the stakeholders at ers. Make sure were delivering the service we needed to. Also born out of that conversion process will be but im recommending is a servicelevel description. We want a very clear depiction of what your requirements are from us as the custodian. Great. Thank you that answers my question one last thing could remember a story that the only diamonds my mother got for my fathers when he carried her across the threshold. So let me just say one thing id like to see your on page 17 i cant read that. When you produce documents i like to see that i can read them. Please. If i cant read any of the stock. I got my new glasses slammed only new reading glasses and i still cant read good one simple request. He was there a enough fair enough i know youre making a point here that its good but i cant another trust your bank. Sorry. Trust but verify good i want to be able to read it. Wells fargo sure youre aware of this but i want to be able to read it. Thats my simple request. Colleagues from any other simple request . Anyone else . Note yes, please [inaudible] yes. They are. All right. Lets do Public Comment. Its your turn, john. I like you to ask him questions. What is the performance on the past 10 years and based on that performance what risk do they take, highrisk, low risk, moderate risk . Are not money managers. So probably none. [crosstalking off mic] right. Anyone else was cemented like to make an Public Comment. Public comment is closed. Is there a motion on this item . Moved and seconded. Without objection the motion passes unanimously. Thank you. Speed thank you welcome to the team. Thank you very much. Looking forward to it. Mdm. Clerk please call item 14 item 14 discussion item chief Investment Officer reported i will be pretty darn quick. We had another good month. Her up a little over 70 basis points for the month. Every portfolio except for spendable in positive territory and i was just a nickel into pennies below. The turning to the narrative. I have two very small corrections under item 1 in investment returns in the second paragraph, in the third sentencethird line, it should read fixed income was actually up 1. 91 not 1. 99. Also [inaudible] commissioner was up 1. 91. They were not up 1. 99. [inaudible] the third on the narrative under item number one, in the second paragraph, third line item, fixed income was up 1. 91. If we turn to page 2, second sentence from the top, the word, the economy should be deleted. Okay. On the item number three and four we did have two items that were approved in closed session that closed this past month. We asked for 20 million for clean clean grid holdings. We actually got 12. 4 million for four corners rest for 10 million. We got 6. 65 million we pretty much knew that was the case and i think we gave that signaling effect to the board. We had no new personnel changes during the month. We do have somebody join us next month and we will introduce them to the board in november. Yes, november. Investment Committee Meetings we stopped three to go. The next one, if you take this its november 16, next month. The centerpiece of that will be on healthcare and biotech. And on Risk Management and our folks from ellen will leave that as long as our new colleagues from mel and will do so as well. Item number seven, herein theres a lot of investment researches items really for the boards information if you so choose. Some of the highlights i would note here is if you go to the third line, the thirdand line and the last sentence on their pimco recommends in focusing on portfolio construction to focus on the allegation of risk and not on the allocation of capital. I think that is a very very good thing to do. Also did you go to the fifthand item they are actually still a little bit constructive on risk assets. Its only mild but they are still on the margin on a little bit of a risk on waiting. Now within that if you drop down to line item number six, in Global Equity their most constructive on the things that are not done well lately. China, uk and brazil, they are least constructed on the us which is been the hot market and its really evaluation and things are priced to all the good news is priced in. With that alternate over to any questions or comments from the board we appreciate the presentation to colleagues, and what questions mr. Meiberger i appreciate the data. I think windows profound statement is the 11 trillion in Government Debt is negative yield. You know that means. Theyre paying you to lend you money. Imagine that. Theyre paying you to lend you money. Its not wild. Its totally wild. It is as warned buffett said, ive not seen this movie before but i know it doesnt end well. Because youre going to get it funny is that she people do a lot of stupid things. Generally speaking. You see this as a warning sign. Thats why i like to see this could we have to monitor this carefully in terms of whats going on. Are we in a bubble, who knows but this is indicative of. And its a very very profound point commissioner, along that, the previous number there the global debt going from one or 15 trillion pregst to 150 trillion right now 152 trillion thats a lot of money. Thats three times global gdp. I know. They do. The one question i did have for you the one comment. Obviously, its very specific type of rents going down in San Francisco but obviously theres a big demand for rentals here. House prices are going up, its others like it constructive in terms of the longterm view on properties here in San Francisco. This one thing making no more of not realistic and theres just so much land here. The one comment i did want to question i did want to ask has to do with the supply could start. The asset allocated we have our own expected returns for the race after classes which staff does in conjunction with our general consultant and et c. Since i hope youre not discarding what theyve done on this but showing some other source the reason we did this as you recall last month was something very very similar to any pc could we highlighted everything. Another point of view from our manager that has very good global macro capabilities but last month if you recall, in the september quarterly review for the year ending june, any pc have some great eta on several dozen pages of charts that i encouraged the board to walk through because theres a lot of good macroeconomic data there. Good. I think its good to get various ideas. We do Asset Allocation every three years so youre not seenwe have another year or two before it actually starts next year. It starts early next year and going to kick off the alm study which will get underway around separate or march. Thank you very much. Very nice. Thank you. Anyone else . Commissioner driscoll, please [inaudible] the question is do you recall which way they yield is going . The negative yield whether its going up or down . The negative yields are still persistent it seems like. Intensifying the question is which direction are they going right now . Well [inaudible] thats another indicator whether the bubble is growing or not. Heres my concern. We live in a world with a massive amount of debt. How do you pay that debt off . By growth. Where is the growth in the world beyond growth is right now we are running at what the imf would call your a growth recession right now. 3. 1, 3. 4 annualized growth you are are you going to pay off the debt if you dont growth be one thats my concern. The good news is theres no recessionary signs right now. We sub such a large allocation to go. Were hoping that [inaudible] thats a small sign the negative yields has decreased. That is correct. Small positive am looking for hopeful signs. [inaudible] thank you commissioner bridges is that your hand . Note . Anyone else . Questions . Lets take Public Comment on item 14. To change the subject could one of you Board Members asked mr. Coaker or ask him why does he think is Hedge Fund Recommendations are going to outperform calpers hedge funds over the next 10 years . Thats the question i would like to know. Does he think theyll Hedge Fund Recommendations can outperform the hedge funds that koppers had . If i could ask you to answer the question to stick around to insert offline 40. Anyone else. Yes . [inaudible] goahead burn burning key is december and i tend about as well as other board vendors. At that time there was a question directed policy easing consensual banks negative Interest Rates and i was going to. 5 troy dollars in government negative rates. Now theres 11. 1. So the amount has grown substantially to its last december. Commissioner driscoll talk about the magnitude of the directions that they got more negative or less negative in terms of the dollar amount has grown substantially. Thank you. All right. This is a discussion item only. Could you call item 15, please [inaudible] thank you mr. Coaker. Good afternoon commissioners. Before you is the deferred compensation manager report for the month of september. As you can see the balances are reflected. The one thing i want to point out to you is because we have recently rolled out the loan program we do have some skip to stick some the loan program. Since launch as of september we have almost 400 outstanding loans. 10 million and outstanding balances. We are continuing to monitor it. Just as fyi most of the assets are coming out of stable value because stable value is our Largest Holding in our portfolio. We are continuing to monitor loans and the assets. Do you make the decision on where the bones are drawn down on the joint imagine stable bug. Is that a decision you and your staff make . No. We dont get the weights designed when you take an outstanding loan its liquidated whole rather plus all your investments. So that is in effect to not impact any changes in the portfolio. Any other questions for diane . Yes, please do is regarding the loan program the members paying interest to themselves, right . That is correct so theres really no impact regarding that because the lending money to themselves thats right. Theres a longterm impact of taking money away from the retirement. Theres also some market risk associate without taking money out at runtime or putting it in a more expensive time but they are paying themselves back the interest. Thank you very much anyone else . I have a question. From the workload perspective how busy has this loan program which time has it taken . How do you want to estimate we really havent officially rolled it out. Doing place we talked about is at the board meeting. Weve not made a public announcement. Certainly its on the front page of the website. The assorted talk to the board and we want to talk to the committee. We agreed to do a soft launch to make sure that processing all the way through to setting up and collecting the payments work through payroll. Were convinced it has very successfully. So we are trying to determine how we want to watch it. I dont believe we see the full impact of what once we announced this is available. The impact. We reported to the board were to the committee weve set up to pcs on the fifth floor. For folks who dont have access to a pc because it was literally just clicks away from being able to borrow your own money. So we are prepared for a large volume but we really at this point cant judge other than i would probably say, what more than 95 of the 400 loans have been done without them having to walk in here. The good thing we notice immediately for folks who are coming from hardship withdrawal part of the rules were they needed to be applied for a loan and be denied. So we were able to read them to taking a loan out against their account with the benefit of being when you take alone are not restricted from continuing your deferral. Music hardship withdrawal are penalized for a year. Where you are shut out from differing. I mean diane speaks very painfully about the money thats leaving the system get she takes it very personally. But at the same time as a Great Service for members but we want to make sure that the purpose of this program is to build money towards your retirement. So shes getting used to seeing the money. I mean to your point, dark trigger points on the fees that if enough money is drawn out in the form of loans, there could be an increase in fees because without thirdparty administrator weve sort of put benchmarks where we achieve this amount of assets we get it fee. If we get down below it because we the monies out on loan it could trigger fees but diane will keep you informed on that. How many [inaudible] [crosstalking off mic] before you granted hardship withdrawal, do they have to try to get a loan absolutely i think thats brilliant. Plus theres penalties in terms of hardship withdrawals. Tax affects everything else. The not can have the penalties if they do a loan. Think thats a very substantive advance. To mr. Stansburys question we believe our hardship withdrawal business will decline and that it will be offset with the loans you can either take from the comfort of your own home personally from here. So i dont know what the real interest is in loans but we know that with a soft launch you can answer how many phone calls we get let me ask this question to get us back on point to move onto the next item to this going on for a month now yes. Six weeks six weeks good if you took all your staff put all your stuff in one bucket hominy hours per week would you say everyone in the system is spending on this one programs . We can get back to you. He was thats a big question. Maybe i can offer this to you. While loans are generally automatically approved all general loans, there is additional paperwork required for the primary home loans. What we are trying to do on the backend is make sure that participants are defaulting on those loans. Even though were not approving them we are actively making sure theyre not defaulting them. The way we do that is because when they miss a payment even though its through payroll deduction staff numbers have changed they go on leave their disability. It impacts their pay. They do have the amount to have to pay off the full loan payment for that paid period nothing is taken. If you miss out on a payment you start to get in the default stays good one my stuff is doing were actively tracking these people were making phone calls to these people to remind them that theyve missed a payment and if they have to make an overthecounter payment. That takes time. I dont have an actual answer for you right now on how much time ballpark . Theres three of you i was a people have a loans for less than 23 weeks party defaulted. So theyve taken alone before they go out on leave. So the tracking part is what everyone is warned us against because our goal is to try and make sure that they dont go into default because there is a tax consequence of them going into default. So from the small sample that we have we already have folks who situationally have gone into a situation where they are not able to make payments because theyre not getting payroll. So that is the tracking piece that dianes staff has to follow through, make the phone calls, verify the Employment Status of these folks. People can take a loan out and then resign the next week orso we found out people are using this for very obvious reasons, which is a fun going on leave without pay i need the money. So they take alone but then technically theyve defaulted because theyre not making the promise payments. So i was surprised that probably after the second week she came in and said we already have the first payroll process this a second payroll process and people have missed their promise payments. Because basically theyve gone there still employed. Theyre out on leave [inaudible] what are the hours. Were going to have to get an answer to this before you onto the next item okay. How much time are you putting into this because of her talk about rolling this out and we have the parties here to handle it. I want an answer. What we have done for doing a final interview this friday. For temporary loan manager position as well as we are going to be hiring administrative staff to make sure that when we do officially roll it out but we will have someone will spend the time we believe we dont know this can be a Fulltime Position for both of these positions. Thats why weve requested them as temporary staff and they been approved as temporary staff. Weve interviewed someone is very qualified to fill the loan manager position. So the way we justified positions is to hire them as tabs. Find out what the real workload is which is where we are going but the number of hours spent, it really was probably just Justice System test which is making sure everything falls through, i think we spent significant hours. I think her staff spent significant hours designing and verifying that process work. Can i cut to the chase your please . Coming people on deferred comp staff, three . Five 200 man hours a week. How many hours a week are stuck setting on the loan program processing loans making phone calls not the test you talk about since we launch as was all the work that was done to get us to launch. Right i believe we have estimated that to be at around 8040 hours a week because were actually hiring somebody to help handle that. Thats all i wanted to know. Sorry [inaudible] the cost of administering this program. If prudential is collected for their costs and they had the other aspect of the administration. This could add another person to staff or two people. The cost and will be more borne by all the other members. Maybe the cost for the loan needs to be increase . We are putting in place what we believe to be overly prepared for a large demand upfront. I believe there will be a large demand upfront. Then we need to have a year or your nap of experience to determine whether what level permanent staffing. Youre absolutely right. The cost of ringing on these temporary resources going to be borne in part without additional money from the participants but the money that we get reimbursed from prudential. So we have to have a track record to see once everyone has died down what is a normal level of business for the loan program. So we believe we are over hiring on a temporary basis because we dont have a way of estimating with the demand will be. Longterm, well be reporting both with the budget and finance committee as well as to the deferred Comp Committee would we determine the permanent staffing additional staffing for this program will be. But its unclear other than i would say we spend much more time in designing and working with merge to make sure everything was set up correctly. Since we launched i would defer to dianes estimate were the hours weekly hours that we anticipate we need. Hopefully by next meeting we will have an announcement we brought on a temporary resource its hard to say, to his am hoping we can continue to of we find the loan program in the future to provide more information so that clients really understand the risk of taking out a loan. Truth in lending it for example. Stream vanity online prosser. They can more obvious the risk. So that is can require somebody to step back actually work with prudential and assess what is the best client experience. I do want to make that better in the future and work with the commissioners to incorporated any suggestions imagine a river at the last Committee Meeting with some suggestions and we were unfortunately bound by a Template Program so we are working with that to make sure we can incorporate work customize nation to meet the needs of our participants. Baby in the interest of time we can get on the agenda for the deferred Comp Committee [inaudible] Committee Level issue sure. Theres a Committee Meeting on this next weeks will take up in the committee. As you know we have contracted with prudential for five concert we have five retirement counselors. The point of these counselors is for them to go out into the field so that employees can have them actually come to them in the event they want to get ready and plan for the retirement. I want to report to the board that the lead counselor chad casper, has unfortunately left. To pursue an opportunity he could not refuse. He has very much enjoyed working with the sfi know he worked with commissionable driscoll for a long coming at pursue another opportunity that allows them to return home. As i understand it credentials actively working to recruit a replacement for chad in that staff will be involved in the final end of the process to make sure were comfortable with a replacement. I want to inform you of that. With a one counselor down the addition additional cause of going to the remaining concerts and also to some of that from our staff to help out. Thank you. The last thing i want to report on is the stable value crediting rate. It is going to be 1. 59 in q4. This is the ninth consecutive increase since we have worked with galliard twoweek takeover the Stable Value Fund your own report that positive news to the board. Can we go back to something earlier. You said there were 400 loans that were already given out. How many were in default . To . Yes. To the first week. They missed a payment and we can work with them to make sure they get the payment back to prudential. The way the default works is they have 90 days. So if they do notit has something . 98 we launch with her nearing duffel hominy are nearing default . Coming accounts are you watching 10 so nominal compared to the 400 that are out attend out of 400 by math is pretty bad but its not a lot. I think right now but i know that default rates tend to be in the teens. So were trying to prevent that. Yes, so far weve only had 10 that are nearing that thats also because weve been actively trying to get them to get those payments back it the 10 folks are the folks that weve been unable to contact. So i know will deal with this in the committee next week but is there some kind of a insurance assurances are able to build in to prevent people applying for loan, qualifying, and then[inaudible] thats a good point. Its hard for us to say how much manpower if its going to require later on. Theres things we want to do potentially in the future. For instance there some plans that have a staging environment so the staff actually does approve and deny each single loan. You can imagine how much time that takes anything but the volume that comes in for loans. Somebody is actually confirming the net pay based on the actual loan prepayment amount for pay or not. Those are the things we can think about in order to deny participants who would not be qualified for that the qualification loan is to an account balance and you can borrow up to half the period. Then we dont know in advance what your plans are related to going on a leave, continuing to work. You have to be it requires that the payments be by payroll deduction. So that limits it to people who are payroll. So the issue of what we decided on the committee decided since its automatic other than if youre applying for residents loan is additional paperwork you need to provide to verify that. But you can borrow half of your money just period i understand and thats why were trying to get as much cautionary information truth and lending information up front. All fleet to dissuade someone that just thinks this is just money thats available. I might as well because the issue is theres no risk to us. Borrowing their own money and paying themselves back. So theres no qualification or that type of an issue other than meeting the terms of the loan program i understand. Thank you. Yes mr. Driscoll do we put there if either active employees which means of a actually at work . Yes to receive the last paystub we dont see the last paystub but we apply the loan we send it to merge and interactive employees on the payroll system. You dont know whether someones on leave until that payroll is processed. So i could be active on payroll today when i apply for a loan but be on leave my next paper not. Dont give the board any ideas. [laughing] [inaudible] maybe they need to be modified. Just take that for granted. I passed the responsibility onto the [inaudible] i would not be in default. I think we should alert them that if they engage their employment for any reason we should notify how to make the payments were to make it to thats on the website but i think your idea is very good that if someone certifies to the best of it also can be on payroll for the entire three paymentrepayment promise, and then basically if you cant answer, yes, it goes its not automatic and staff would handle it and say this is the consequence view going on leave. This is the consequence of separating employment. [inaudible] theres old modeling process. They go to the whole modeling process and when they take out the loan they are very familiar with how much of their taking prepaid period. We do give them all the information for them to know whether or not theyre qualified and what to consider. They modeling themselves. I do feel like they take it. They would take it i think even if they didnt have enough i would clarify for the board and the public these loans dont impact your credit rating. These are not reportable loans pick your borrowing your own money when you go in default the default is the tax consequences of the distribution. It becomes taxable remaining balance becomes taxable income to your that we report to the irs. Its not that i go through a collection agency. Its just im sorry to have to swatch to the special of it because would lose quorum and i will be good its 5 30 pm. We need to move for. Thank you for a much for your presentation. Lets take Public Comment on this discussion im. Anyone want to make the public. Public comment is closed. The next item is item 16. Committee report from the est committee can you call that item mdm. Clerk item 16 est Committee Report mr. Driscoll thank you mr. Driscoll [inaudible] reflected on item 19. 19 or 20. As was earlier discussion about the thermal device and plan. Okay. [inaudible] discussion to expand our work thats why started meet with a group called cdp. As well as [inaudible] one of the connection with other groups were very affected in level ii and is a connecting with companies asking them to change the practices and that was all what we were discussing at the est Committee Meeting you we spend most of our time revising the thermal policy. Thank you very much. Colleagues any questions be one mistake Public Comment on item 16. Seeing none, Public Comment is closed. Item 17 item 17 action item okay item 17 i like to continue to. Lets take Public Comment on that. Seeing none, Public Comment is closed. Can i get a motiononsite una today commotion to continue no. Its the prerogative of the present you can continue will continue this to next month. Item 18 please item 18 action item review and approval of the est value statement mr. Huish this is a result of the Committee Report we presented the committee sort of a blueprint from mercer white paper regarding how to approach implementing and integrating est policy into the investment process. They basically do find it threestep process. We believe that in integrating the environmental and governance issues into our current policy was the best way to go. So that you see is a redline version of what the committee is recommending that the board approved as the boards new environmental social governments investment policy and procedures. It also starts off with a value statement which the committee worked on and we were done with the committee that basically overlaps and basically states the importance that this board places on environmental social and governance issues. And also you will notice that if the board were to approve that will be working with the committee were through the committee to bring back a plan to integrate this value statement, these policies, across the portfolio included in the private sector rather than a limitation to the public sector. So i believe that the committee voted to recommend the full board approve the changes and from this point forward we will be having not just a social investment policy but an integrated policy. Great. Very good. Lets see if theres any discussion. Thank you. Anyone undecideds. I just want to clarify Committee Meetings as next week is it est at 1 pm and deferred comp at three spewing the leno est meeting next wednesday. The we are deferred comp meeting at 1 pm [inaudible] deferred comp is at 1 pm. According to diane. The other item mentioned in your report of breaking it up since i brought up in the [inaudible] one of the art pieces of lack of it was a dcp Business Services review sort of a utilize asian audited thats been on hold for long to get this whole thing about examples the leakage in the loan program cost impact in the global fund. Those are the type of services to a valuate [inaudible] cost all the members are paying. This thing has been held in abeyance for a long target just wedding you know your members know were to be discussing it again when to let it roll out. Thank you. Lets take Public Comment on item 18. Item 18 Public Comment is closed. This is an action item. Is there a motion to approve the est statement . I will make a motion. Second . Moved and seconded. Without objection must without that unanimously passes. Thank you could item number 19 executive director support in particular on the counter to report is i notified you that we received from the superior court and Order Granting the citys motion for plenary injunction in the case of the city versus hertz board and me. As executive director. Which basically you will be receiving a briefing from the board attorney at the next closed session but this injunction made it impossible for us to issue the retroactive checks for the month of october so we placed on the website the fact that since there is a luminary injunction that has been approved and a motion and order for us to not make those payments. We are prepared to make these payments in october that with this injunction were not be able to make the payments until this order is resolved. Is that it dr. He was lets take public on and on item number 18. No Public Comment. Public comment is closed. Colleagues any discussion on item 19 the executive directors report . Yes i have a question in regard to Wells Fargo Bank because of the latest fraudulent activities. The state of california has suspended doing business with them. Can you tell us if San Francisco has any obligations with wells fargo that are similar to what the state of california has . Bopper. Report as soon as this ashley before this hit the general press. I dont know if bobi dont have the report in front of me but recently prepared a report. We do of holdings with wells fargo. Bob can maybe better remember. On the bond side there is nothing which i was somewhat surprised on. On the equity side most of the holdings are through indexes so the smp and q mate its about 42 43 million to those of Northern Trust runner brokerage report to see whether not wells fargo is receiving any commissions etc. We look at it for the quarter and nine 230 was in her 50 so relatively de minimis from that perspective but those were the Business Activities i was able to identify in terms of checking accounts, wells fargo does not handle checking accounts for the deferred comp theres nothing . No. All our checks are through the bank of america. If no Service Relationship with wells fargo for any of the operations. We do have a that the custodian banks for the sf cvb. [inaudible] thank you. Thank you. Just a discussion item. Please 20 item 20 discussion im retirement board good of the water any new business that the members would like to discuss . In or put on the agenda spirit guest mr. Meiberger i like to agenda Wells Fargo Bank regarding our relation. Perhaps we need to take action on. Also i like an update on the separation of the roles of the chief executive officer from the chairman of the board. Because i think we voted that in essence mr. Sub who held wells fargos bank is also chairman of the board. Im sorry one update on what . He was the position of the chief executive officer and the chairman of the board. [inaudible] policy to vote against that but all confirm that an report that out. Our basic proxy policy causes to oppose that his ability to serve as both positions the way i see it that creates a lot of mischief when that happens. Can i comment per second because i did the research already. Our policy with regard to separation of chairman and ceo is that if there is an independent board member that we will vote for the two positions together. If theres an independent head of the board we voted for in this case stopped by the way resigned this afternoon. [crosstalking off mic] it just that the New York Times and hour ago. [background noise] i can get you are specific policy and i would help would like to see a calendar for a specific vote once again. Because if you recall several years ago i brought this forward tragically for the banks after wells fargo had their first activities regarding foreclosed loans against the hispanic and black african afro is a hairstyle. You mean africanamerican. Go on. Finnish i see that as one of the mischiefs i having those positions in the same hands as part and parcel of this pit and we could bring that back it sometime id like to have that done ring it back into well with it it were all in agreement with taken a position that we both separately so what are we bringing back . The way it stands right now the former head of wells fargo had both positions the way i heard it. It depends on how the board itself is structured. If and if its not an absolute wells fargo the head of wells fargo was also chairman of the board and chief executive officer good is that correct we voted against that. It just did not pass it didnt win, locate our policy we voted against that arrangement we did vote against it. Yes. It did not pass about why he was allowed to do. I was getting ready to say the same thing. [inaudible] we do represent we look at whats voted and [inaudible] so wasnt we didnt take a stand against. He was they did not listen to me we dont own enough to be direct the board. Lets keep moving. Anyone else . Anyone else like to contribute to the good of the water . Seeing none, Public Comment . I think you should divest in every single activity with Wells Fargo Bank. Until they hire or rehire other lowlevel employees. Mr. Stump resigned but [inaudible] find out [inaudible] i think you should send a letter and say were completely divesting all activity until he retires all the lowlevel employees could if they stole 20 out of the Cash Register they could go to federal prison in five years. Thank you very much. Anyone else seeing none, Public Comment is closed. At this time items anyone item 21 discussion item retirement board member reports and comments. I believe theres one report from commissioner bridges commissioner bridges has submitted for our review. Review minor we can take it estimated thank you very much. Public comment on item 21 seeing none, Public Comment is closed. Thank you very much. Item 22 closed session in may i take a have a Public Comment unclosed session . Seeing none, Public Comment is closed. I just want to knowledge the house has changed. Weve got who is your lets do a roll call boatvote [inaudible] thank you. Mdm. Clerk could you read item 23. Thank you. This meeting is adjourned. Good night, everyone. [gavel] [adjournment] commissioner president loftus id like to call roll at this time. Commissioner president loftus commissioner Vice President turman commissioner marshall commissioner dejesus is. Present. Present commissioner mazzuco commissioner hwang commissioner melara commissioner president loftus we have quorum and also with us the Intern Police chief Toney Chaplin and joyce hicks good evening welcome to the wednesday, october 12, 2016, Police Commission inspector, next line item. Item one presentation of civil rights unit certifications to internet crimes against unit certifications to sergeant internet crimes against children unit, unit civic Center Internet crimes against crime unit and sergeant internet crimes against children unit and the merit to joe think an walker. Objective today we are war we got a department of defense assessment of the Police Department that lays out a number of area for improvement it is important tonight we are happen to be starting with highlighting areas of excellence and Extraordinary Services chief go ahead and get us started. Well do the presentation but the reading of the award will be done by commander greg. Good evening and welcome. Good evening if i could get the 5 sergeants from the internet crimes against children if you could come on up justifies a second. As captain bailey could come up as well thank you. Commissioners again, thank you very much this is a wonderful opportunity to talk about many of the thought unbelievable units and the internet crimes against children within the special victims unit has been doing in a couple of years we have the opportunity to give me the unit certifies ill read what theyve done that led to the recognize that is so well deserved as mentioned you have Sergeant Christopher sergeant liza and william and sergeant jessica no o cotton and others in late 2013 two fulltime sashths to he did internet Sergeant Christopher and lisa were the initial investigators assigned to the unit to combat the growing treaty of online child appropriation since then theyve been assigned to the delicate task of investigating internet crimes against children a horrific crime that should not go uninvestigated those two delineated investigators were joined by william and assigned by jessica and candice the 5 members here the unit investigates individuals that exist children through the production and sdwrks and position of child porn debris and online intimidate those investigators have tooirlgs investigated more than 4 hundred internet crimes childrens cases that led to the arrest of one and 10 suspects the serious expiation 9 impact of their investigations pan across San Francisco, california and quite frankly the globe in all i cca the goal to rescue a child victim theyre identified and located children in stock that wisconsin, florida and maryland new york canada mexico and Great Britain the unit is a member of the Silicon Valley crimes against Children Task force which is allowed them to collaborate with state and local and subconsciously agencies the i cca are federal Task Force Officers with the department of homeland and have brought dozens of cases to the they strive to make the world a safer place for children in raising Public Awareness on internet safety the i cca speak and educate children and parents on internet safety through School Presentations train Law Enforcement on sf Child Exploitation cases and gave a keynote speaker speech to the security conference with over thirty thousand people the cca unit is in the forefront of the investigative techniques in the area of siberia crime with the dollar cover operations they lead Environmental Impact report use of the Forensics Software using good ole fashioned police work theyve development into one of the successful i cca teams in the country they created and maintain a field of field exploitations and investigations is an ever going issue within city and county of San Francisco and quite frankly throughout the world theyre an invariable unit for the sfpd and at the forefront of it is with great honorable those investigators are recognized for their outstanding work in internet crimes and special victims unit i want to thank you and chief chaplin certification award for all the members of the San Francisco Police Department thank you. clapping. before i present the award i want to say this is a tough unit i had a commander position and worked under me that is a fast statement to say 33 this they have more work than they can handle this is one of the toughest jobs to deal with because it is internet crimes against children and have to be exposed to horrific things day to day and do this and do a statistical last year job so much so theyre here to get the sifgdz without further ado, ill start are with christopher. clapping. sergeant. clapping. sergeant candice louis. clapping. last but not least Sergeant William letter. clapping. again, thank you for your services and keep up the good work. Anything in the commission thank you for thank you for all you do. Thank you all right. I understand we also last week colleagues talked about officer joanne walking in washington, d. C. We brought her back to be recognized by this commission if we can bring officer walker up. Good evening and welcome. Good evening to the Police Commission director joyce hicks and chief chaplin it is with great honorable to reintroduce officer Joanne Walker i think that officer walker here epitomize the spirit of Community Policing that type of officer she ive known her for her entire career that is in her dna to help people she is so good at it she has performed crisis intervention in might office. For you personally. I want to make sure. She does it on a quiet regulars basis and really good at it and just like that the community and at the station she has been so outstanding with giving up of home share to the community so again she simply continues to above and beyond the call of duty ill let the record reflect that we at park station radio clearly clearly so proud of officer walker commissioners officer walker. Officer walker. clapping. chief. I went to the formal presentation by the tom gilberty loretta and officer walker was one of the 11 recipients only 11 of those awards and there was a young man that got one of the awards that was last week the Academy Awards there were on 11 awards that officer walker received that was think invaluable award one of the first recipients part of the first recipients in the inflation to get in it is a huge kudos for what she does at work but more importantly when they clocks out goes to another job on a suicide presentation hotline you cant count the number of lives shes saved thats why she got this it shows her dedication and commitment beyond 9 to 5 and i know i dont know how she finds the time i appreciate the commission for honoring her with the certificate of merit and officer walker congratulations. Officer walker please any words of wisdom for us what this means to you. Were excited. laughter . Well, i wont call you other on our crisis in return but number 2 i like to say the community was really what drove this they accepted me and some people have problems with the fact i was am a Police Officer but the person that hired me made sure that everyone was aware of why i was there why i was doing it and then tapped into any skills and i tapped into their skills at the end of the day were a team and all of us are effected by someone in crisis somewhere so the more we know the more were able to help other people and thank you for the recognition officer walker i shared that with you previously when privately when the United States department of defense they highlighted there are a number of things to be addressed there are hard working men and women in this department and you epitomize the wonderful caring for the community and we were specifically recognized as we go through this process of performance and trofks to make sure we are working and supporting officers while we make the changes we need to make so it is very important you know the roll youll play as we go forward and recognize not only in washington by here in San Francisco. Thank you very much commissioner. Commissioner mazzuco. Yes. Officer louis i told you, i sounded our praise at the northern station you were the first person i saw doing cambridge crisis intervention when the person was standing in the middle of the intersection at lombard i told any commissioners this works and you represent the best in San Francisco Police Department you represent what were looking at for joining the department someone that is willing to save someones life in a crisis intervention and suicide hotline when you putdown your head on the appeal at night i respects you. Dont go anywhere. Commissioner mazzuco. Hey thank you very much suicide person my whole line of life it is important if you save anyones life people that shy away from suicide it is difficult and hard joaquin i encourage and appreciate that and really glad our there that is an Important Role thank you. Thank you. All right. Anything further thank you all officer walker. All right. Sergeant, next line item. We need Public Comment commissioner. Within the scope there is any action any Public Comment . Hearing none, sergeant, next item. Oh, okay. Okay. Yeah you can go ahead if you have a comment on that. Good evening and welcome. Tom gilberty i want to affirm that Joanne Walker is what the city is going to need more of and if weve got someone that is acclaimed as well, we hope to put her in a position for anyone so to help her we need a mid way between the police and the hospitalization pies and jails a midway to help the people that are in crisis on the streets and may not be police and may not be the department of health again maybe a mid way im hoping that we encourage her to be part of this thank you. Thank you. Is there any additional Public Comment hearing none, sergeant, next item. Item 2 consent calendar receive and file action request the police chief to accept the donation of 4 bikes and helmets for peace on streets as a contest winners valued at the 320 Police Reporting of action quarter you 2016. Thank you, sergeant colleagues two documents in your packet any questions about them. Any Public Comment on the consent calendar . Hearing none, Public Comment is closed. Do i have a all in favor, say i. I. Opposed . That motion carries. Sergeant, next item. Reports to the commission discuss chiefs report to allow the police chief to report on recent Police Activities with crime interferences and make announcements feet week dream force and l s update in regards to the collaborative review. Good evening chief. Ill start out with fleet week with the lombard from the central to the northern arena and officers prevented crime in the Community Great job performed but all tens of thousand of people on the embarcadero and the statistics on saturday the 8 central we had one drunk public arrest and 4 medical calls one cited for drinking and thirty victims in a capsized boat a heroic effort by many citizens and others helped out illegal vending 3 reports, 5 certifications and 6 reports extracted the southern and northern had no arrests or incidents of note sunday october 9th in the central was one drunk individual and illegal 5 reports and 6 cars confiscated the italian heritage and the central we had 3 missed calls 7 advise for drinking collaboratives and the dream force to mention all the event went well around the convention and to and from hotels superbowl enlightenment and adjusted the hours for the foot beat at night to a point that the department received compliments the San Francisco playoff game sadly over no events of note there other than 5 drunk arrests and 4 from inside of venue and 4 from outside and ill go into the crime status before i im going to turn it over to professional standard our homicide rate is 42 this year up 2 percent compared to evidentially 2013 and 16 of the homicide were cleared by arrests this year and shootings are up 7 percent compared to 2015 from one 31 and 2015 and crime citywide is do you only 14 percent robberies down 14 percent and year to date over 8 hundred burglaries are down and others are update on the major crimes myself and commissioner wiven did a trip to the Central District to portsmouth square we addressed what with regards to the arrests a couple of arrest warrant and announced two arrests in that case and grant the property two arrests in that case core rattled two individuals part of an Ongoing Investigation there were 2 arrests and we told the public we encouraging them to talk to anyone that may have been in this particular crime to step up it paid off one walked into the Central Station and had a case if august this year the loss was 20 thousands our homicides we have a few reporting period on 10 slash 7 we had one at the location of plymouth and broad and no arrests made a town hall meeting out in the terryville in about an hour with regards to this with the supervisor avalos attending and the terryville captain attending in this particular case a cause of multiple people shot the officers witnessed the shooting one person deceased and also a victim shot in the right angle and homicide investigating the second case with an on the next day local 551 hours on the block of 60 no arrests and the officers the victim was lying on the transported to San Francisco general and pronunciations deceased the next case occurred to days later on 10 slash 10 in the block in the terryville no arrests made that was on 10 slash 10 of 16 approximately 10 00 p. M. Responded to a person lying on the ground with a wound to the head the officer observed blood from the victims head and rendered aid they surveyed the video the the subject property was deceased at the Gang Task Force are investigating that the shootings there are plenty ill go over the location and generally speak of them one an eddy and scott shot no arrests in this case on 107 the same day in the hours at hudson avenue and there was a spotter and no arrests if that particular case either next hud court a arrest the next day at one 08 the Police Officers responded and the witness said the suspect was a male in a wheelchair he was arrested and booked the Gangs Task Force was notified the next shooting on 10, 9 in ingleside no arrests at the 9 09 p. M. The officers responded regarding a report of shots fired the victim was shot in the back and no arrests in this case i this case the next same day spotter activation officers located a 9 millimeter 40 thousand cases and responded to a punish vehicle and located the vehicle and attempted to stop that vehicle it took off no arrests in this case and the next same day on the 800 block of valencia and several subject were detained no arrests on that the same day on 645 on valencia in the Mission District in arrests made on that one and there was one person shot laying on the ground on the north side of 26 street the victim had a gunshot wound and that was investigated and 10, 10 on 24th street and mission inform arrests this was at just after midnight on 1228 the officers respond to San Francisco General Hospital about the gunshot at the said a vehicle sped away they were uncooperative and refused to answer any questions the next on the three hundred block of central on a. M. And the officers respond they walked into the emergency room and felt a sharp pain and thought hed been shot and was uncooperative and not answer any questions no arrests on the mission on the 11 the next day after midnight the officers responded to shots fired no victims or casings were located at the scene the vehicles were located at the intersection of free way with damage that looked like it is caused by a bullet reporting victims one and two officers canvassed the area and located 3 video cameras and theyre investigating that one and on the 11 block of bayview another shooting no arrests made at the approximately 1444 hours which is 244 officers respondent to the avenue observed a large group and shots fired they searched the vehicle and officers spoke the victim she was not in the area all victims refused medical treatment that ended the many shootings reports for this reporting period with that, ill ask captain conley. No problem. I apologize the former prosecutor is concerned about the number of shootings within the last week and the number of homicides looming it there is activity in mroukt and broad we worked and i worked as a prosecutor im sure there is correlation i see in the bayview and the central and the Mission District with officers on the street and one in central im concerned about why do you think so many shootings happened last week whether or not we had an adequate number of officers or the dream force were we able to do in proactive Law Enforcement looking at individuals that are involved in those crimes what is the solution and what do you think this is one of the worse homicide reports ive seen since ive been on the commission. Just to address there is Ongoing Investigation and there are some links to some of the shootings i cant go into that. I dont expect you to. Youre right the terryville or lakeview had to murders and no murders since 2015 the end of 2015 was the last murder there was a thought two homicides make linked theyre investigating and that is addressed at the town hall meeting with supervisor avalos and the captain of attorney value theyre addressing that in the last few weeks weve had shootings across 8 Police Districts so there is no rhyme or reason their are a lot of them not linked and some of the shootings no people struck in one case the car description the car that was described was later involved in a cash crash with on of r one of our black and white unit an geneva avenue and the subject jumped out so that person was taken into custody and casings in the vehicle and they matched the description of the shots fired it looks like the same person that happen to be seen by one of our marked unit and see if this is a same person no rhyme or reason and there was a scattered deployment of officers people may have take advantage and most of shootings after midnight two or three in the morning and a lot of them walked to the hospital. Commissioner dejesus. Both of you and so and then commissioner walker. I had a question were talking about a one week period were talking about 5 homicides. No ill have to take a look for the reporting period. Yeah. 3. Plymouth and. How many shootings were there. Shootings . There were 11 total but out of 11 i believe only 5 actually had victims and the rest were shots fired commissioner mazzuco i was on one hand any pattern that would show you answered that thank you. Commissioner wong. I want to thank chief chaplin to come out to this meeting organized and commissioner kim and commissioner peskin and add to the chiefs investigation that the department has been a special hotline to take the chief dedicated a Police Officer to kwoupt im happy to hear you guys covered this a victim stepped forward i would urge the chief and the expand staff to keep this in the press so folks will feel comfortable in reporting cases thank you. Thank you with that, im going to turn it over to captain for the professional standards presentation. Good evening and welcome. Good evening commissioner president loftus and commissioner Vice President turman and director joyce hicks and chief chaplin a brief overview the this morning at the 11 00 a. M. The department of defense gave a report based on the review process under the placing last 6 months the areas are a reminder was use of force and bias and Community Policing and accountability and hire in the report they identified 940 finding of 200 and 2 recommendations the next steps for us as we review this the consent and the findings and recommendation well interact those recommendations into a magical we have and is magical includes the doufg o doj report and he Blue Ribbon Panel and the task force on the 21st Century Policing and the civil grand jury and the t oc recommendations we need to prioritize those and we have an month deadline to comply with the doj recommendations the next steps the strategy and implementation which we hope to present in the coming weeks. Steps taken so for many policies are under review we have initiated the bias training the leadership training, fair and partial Police Taking training and the of us on the general order it is generally a process for the department of Human Resources we initiated and enrolled the body cam should be completed prior and ongoing crisis intervention training and our Data Collection we were Part Initiative weve taken the report and made notifications to the Department Members and Community Shareholders the public directives to all stakeholders and have feedback weve created an email portal so the community can provide feedback on the report that will Say Published forth coming we have mandated that the entire report is made for reading for all members of the Police Department and progress will be posted to our website regularly as recommendations are implemented and that is the conclusion. So; is that true . Captain i know that you gave a presentation i think that was about 3 weeks ago was a number of updates on the magical and the plan and the next steps owen this is a good reminder obviously today colleagues, i would share with all of you that one of the points that director davis i attended did press conferees and one of the points that director davtsz made from the cops office the confidence in working in San Francisco is a large part because of the structures specifically in the Police Commission where the department can say get the support and on the number of recommendations obviously a number of them doj with willing to provide reports overnight thats a process and captain conley if you could see the look on his face that commission will play an Important Role in having monthly updates from the principle policing bureau as you may know we get monthly updates by the magical youre putting together and the process is San Francisco anything that will be essential to share that not only with us as commissioners by the board of supervisors you noted in the cops report it does direct or suggest strongly that both the commission and the board of supervisors require quarterly reporting on those recommendations and we think are taking it to have been at a higher standard monthly well continue that i will say that while the 18 months is a timeline i understand from doj is there will be a 6 month update and there are be a 12 month update this commission will be able to track the progress as well as the public and Community Members and watch where obstacles are rising up we can together think through them to be clear and not surprised when we get the report from doj well hear those and discuss those at the commission colleagues, any comments or questions on this. Scomplakz. Oh, commissioner wong. Oh, commissioner dejesus. Ive been reading this since this morning that is a lot to read this by today, im wondering if well have an opportunity to talk about this report is it going to be scheduled so we can at least have a real presentation from the doj or we can discuss some of the recommendations. In the coming weeks as we develop this implementations plan and schedule ill be back to present the plans to you to tell you how well lay out moving forward it is again, the report was issued this morning i think it will it takes time to absorb and reflect and as we move forward well identify the stream as possible to create this. I appreciate that i guess the problem in the report it directs the city that the city to give you the funds to do some certificate things you can come back and tell us how to structure but in terms of technology in terms of getting that expert in here to design the protocol it talks about getting people trained within the next 6 or 16 months or a year the entire force trained whether youll have the money for the hiring of additional trainers for like to fall within here you can come back and talk about how you implement that but what theyre saying the deficiency in terms of actually providing fund whether emergency basis or what can be done immediately and putting into our budget for next week on a continual basis weve been talking for years about the traffic stops and the word and filed in a file cabinet and it is 5 or 6 years we keep on talking about it i think we need this commission needs to discussion what is the priority what are some of the things and go about working with the city and getting this fund so you can have the tools or develop the tools you need you think the chief talked about an expert as a specialist not someone to put out an rfp but i think the chief sucked an emergency basis for the thing we need now not the next 18 months but put it out to discussion it. Those are all good points commissioner mazzuco we invited the cops office to make a presentation to the commission they dont as a federal entity make presentations to both sides next week some commissioners were able to get a briefing from the cops office and share more about it i think we can talk about whether next week is sufficient time to go through all the reports and this has to be a obgyn breathing be document we Begin Next Week to go into it further i agree that is the place to have the conversations not without certainly a significant investment in the data system youre correct not new to the Commission Commissioner Vice President turman. I was going to comment the doj commented today correct me if i am wrong but at the press conference they will be providing technical saufrs through the process as well as providing experts in some of the specific areas that commissioner dejesus raised and shes quite right that Data Collection how we gather it data and how we moved on an ongoing basis this is important well provide other assistance to how this gets paid for will be city and county comblaefr a priority for the mayor to implement those these recommendations well be making serious requests. Commissioners the developments has provided technic assistance we initiated a conversation in addition to weve within in close contact with the Mayors Office about the next steps and what that means in terms of direct costs those are all conversations that are happening currently theyll continue to happen and as they progress i will report on the progress. Commissioner marshall. Im sorry, i think that commissioner Vice President turman raised a point i wanted to make ill ask the office computed looking at other cities responses to similar perform processes so we have a lot of help doing that that would be helpful. I want to add they talk about the commission itself and how were structured and we should after we get time to go through this we should talk about how to improve on the structures not within the departments purview. And just for commissioner marshall said part of the Technical Assistance they pay for the train and they will apply officers to other departments one of the 15 departments on the it a and talk about you can what they did and how they implemented some of the recommendations this is a huge part to go to someone in the process at the beginning and to the end and thats something well address once sending the officers to go to the other departments to look how they implement the standards in place. Thats great the last thing eye i appreciate captain the benefit we have the two civil grand juries report and the Blue Ribbon Panel and the Bar Association data report and president s 21st Century Policing report and the occ recommendations all those pieces have been forwarded to the doj they were factored into this report the idea can question really have a blueprint a road map that take advantage of the pieces and give us a clear direction this is an opportunity with the magical and the Strategy Plan the last thing ill say director davis said 1 departments nationally are opening up the books and saying what can we be better and there was virtuosa significant amount of i would say recognize thats a hard process and opening up yourselves to scrutiny not that common and 15 departments income tax have done that that is a sign of the strength of this department and the relationship of every Community Across the city so while there are hard pieces in this report for everyone to understand especially officers that are working everyday this is supposed to help us get to a better place i appreciate the hard working captain conley how organized to look at everything and chief chaplin the department wants to get better and make many together to be stronger with very much my takeaway and plenty of work i want to acknowledge you for opening up to the process. Thank you very much i want to say that San Francisco was kind of unique this this process but this is the most expansive report and did that for a reason i believe over one hundred and 50 other agencies looking at this rolling it out i want to make San Francisco and model and most of departments were brought up to standards income tax looking for San Francisco to be the roll model for the rest of the country so some of the recommendations are cuttingedge romanced for 21st Century Policing quite frankly is not done in any jurisdiction it is a challenge and were at the front and rewarding at the end and were around to see it at the end well be better for it it is getting an outside look at the performance and going introduce a tough phase and we embrace this report and the mayor said wee bit were going to it to implement it and oh, captain conley. And as you read the report i had the ability to read it several times but to insure you there are significant parts of Blue Ribbon Panel the occ recommendation and the civil grand jury components are in the report they didnt delineate it as such we go back to the magical well do a line by line comparison that demonstrates the recommendations their enumerated in the report. That would be helpful. We look forward to the partnership with the occ and that effort i know that the report did delineate the opportunity part of opportunities that we have to be a model to take advantage of not only the Police Commission but the role of the occ in partnering with the department to address a lot of these those details will unfold thank you, captain conley for your presentation. That concludes the chiefs report. Inspector, next item. Item 3 b occ directors report to allow the directors to report on occ activities and make rosters more the monthly statistical report for september 2016. Good evening director joyce hicks. Good evening commissioner president loftus and sdmurm commissioners chief chaplin and members of the public yesterday occ senior Staff Members and i met with Community Oriented policing Services Director ron davis and his team an is Collaborative Reform Initiative Technical Assistance assessment of the San Francisco Police Department weve heard in in daily about the report and next week the agenda permitting ill like to provide the commission with the role that the office of complaints will play in the implementation of these recommendations and one of the things that director davis stressed to the office of complaints is the unique opportunity that the occ has along with the Police Commission and civilian oversight were unlike any other civilian Oversight Agency in the United States and in reviewing the report in some detail we did note at the occ that there were several opportunities for collaboration that were specifically appoint by cops and with very distinct timelines in particular in the area of accountability in the area of force and the office of complaints sees this as an opportunity for improvement ourselves in our office as well as in the Police Department we see this as a partnership and look forward to moving forward with the Police Department today, i attended the press conference led by director ron davis and mayor ed lee in which the collaborative reform process and in the report were described i came away from a quote from director davis it is on his website on the cops website the truth hurts but selective ignorance is fatality that applies to all of us i dont see this as simply the truth being hurtful to the Police Department but also it stinks for the occ as well we too want to do the best that we can do so i look forward to this partnership. Moving to outreach efforts that the occ has made in recent days occ mediation and outreach doesnt salazar discussed mediation and Police Mediation with the new manager the richmond Mediation Program and with the new york Inspector Generals Office were in touch with an office with the civilian oversight agencies throughout the country and throughout the world we had a thrilled monthly meeting on the occ work with the Community Advocates and the Police Department on the crisis intervention responses to chaos calls and also the crisis intervene team and senior investigator and another over when i was in the audience this evening made a presentation at the San Francisco Police Department comedy regarding occ function that was to the 200 and 51 accounting regional class port of recent activity. Is this commissioner hwang. Commissioner dejesus. Are you done really are you done. Im finished with one report and a second report but. Sorry. I dont know if it was called. On this report you mentioned he said some of the truth hurts but it thinking about that there are other parts of maefks e matrix we need to look at the discussion how well go forward and fight for our priors and i call constructive criticism of this department so give us their review so we can calendar it and discuss it as well. Yes. And in response to commissioner dejesuss remarks one reads that some members of the Community Say they never heard back from the occ about the resolution of their complaint, of course, the Immediate Response is but that we do send letters out with our finding and however i dont think that is the ends of the story probably the beginning of the story and what we have looked at as an office when someone waits a year to receive a letter perhaps they are no longer there or it is just doesnt feel like they were looked after speaks for itself or needs were met so even before this report came out as we went through the process with the task force and in hearing what the community had to say we revised our processes to send out periodic letters to the complaints they still have your complaint if there is any Additional Information to provide well do that there is the beginning the story because of the specific recommendations from cops were electricity am i correct . And the Police Department should jointly provides the communities with information and Community Setting so that was a very link answer to a commissioner dejesus moving on to the september certificate report in september the occ mediated four cases and to date as of september 30th the occ has mediated 40 cases similar to last year, we mediated 41 and you have the statistical information on a number of complaints by a number but i will discuss the chiefs proposed discipline on occs sustained complaint in september that didnt mean those are necessarily the contemplates that the occ completed with the same finding that in september means these are the occ complaints that the chief addressed in september there were 4 of them 3 of them were neglect of duty and one was unwarranted action the first one has to do with with plain clothes officers making traffic stops and generally their prohibited from doing so unless their excellent circumstances we didnt find those the chief agents those allegations means that the officer violated the policy we recommended a reprimanded and retrained it was a class violation under the discipline guidelines that was adopted by the Police Commission the lowest level of discipline and the first level that is recommended we have a written reprimand we recommended the chief have an mrosht and retraining moving to the second case and the failure on the part of a sergeant to issue a certificate of release after hand cuffing i recommended a reprimanded and retrained the third case and the second neglect of duty case involved the complainant requesting a private person arrest the officer did not facilitate that arrest and the officer should have prepared an incident report katy recommended a reprimand and the chief concurred with that and also retraining and finally this was in an inaccurate description of a traffic code violation i recommended a written reprimand the chief determined it was a violation a training failure and that concludes my report. For september. Thank you director joyce hicks commissioner Vice President turman. Did you have any comments why you proposed the discipline on number 1, 2 or 4. On number one waited wait it was the handcuffs thats the airline. This is the plain clothes officer s who cite the complainant for double parking and so i recommended a written reprimand and you recommended reprimanded and retrained do you have i do im looking at it on that particular within they didnt want to delay the complainant unnecessarily for a black and white to come to that location there was some safety issues cited with regards to the location thats why i went on that particular one my question on the number two is that the airport . I dont have the breakdown of that one. That maybe i believe that was a airport a person was detained by a airport personnel there were going to miss their flight to the officer wrong side a certificate to allow the person not to miss in their flight they got on their flight and went back and filed a certificate of relief thats why i went down the officer helped the person not detained to miss their flight. And on number 4 i think that was the last one you asked about the inaccurate traffic citations the Police Officer gave the right code but theres ambiguity theyre close in numbers i mean in meaning so the officer use the wrong subsection and knowing what that particular section meant. Anything further for director joyce hicks thank you director joyce hicks. Youre well commissioner president loftus. Sergeant, next item. C3 commissioners and wanting report. Colleagues he shared that i was able to participate along with commissioner Vice President turman and dr. Marshall in a briefing by the cops office on the report it was a highlevel briefly similar to what was at press conference we agendize for next week and share more about what was highlighted from the perspective the cops office and anything from fellow commissioners to add. No okay sergeant, next item. Im sorry commissioner mazzuco. Were going to. On sunday and commissioner wong marched but with the Cultural Heritage parade with the Italian Community im part of we the Something Different like we asked the officers to come with their families and again, the officers were very happy there was a lot of support from the folks in the crowd and there were cheers for the officers i think the chief was shocked his first parade that was very good for the families and the officers to see that i want to thank angela and lieutenant and captain a gold metal winner for safety lives at the airport a big hero in the Italian Community thank you and thank you to the officers. Thank you commissioner mazzuco. Sergeant, nexem