Item 3 mr. Clerk, call item 3 for me and action item closed session. Any Public Comment . Were going to take Public Comment now before closed session no, no Public Comment okay. Thats because we started on time and our Public Comment didnt get the memo okay. Thats the secret everyone were going to go into closed session. Okay weve come out of closed session he united a vote or need to take a motion not to disclose what weve talked about in closed session so moved well take that without objection. Lets the house rehabilitate that commissioner paskinjordan is not here well take that without objection. The motion passed unanimously thank you, everyone at this time, id like to do something to accommodate the number of folks that are here the pob welcomed id like to have director huhuh irrational not here i was going to invite director huhuh i wish to make a presentation to accommodate the great number of folks to you wont have to wait until the end of the agenda to make your comments fair enough and take general Public Comment as well a point of order were going to have Public Comment if two minute guardrails so well be able to hear everyones comment director huhuhish please bring our item forward excuse me mr. Clerk, call the agenda item. Item item 14. Yes. Public comment period. No two separate sessions and im just informing the public were going to take item 14 first and general Public Comment next. Mr. Huhuhish. We received a letter dated march 24 from david to represent our benefits in the letter he requests the retirement board reconsider their comments and the second item is to make sure that everyone knows and the public is aware that the may meeting will be moved from its regular second wednesday and calling a special meeting the retirement board for monday may 9 and so it will begin at 1 oclock and again, the same structure depending on how much closed session items we have most likely 2 30 more the Public Comment agenda that concludes my report. Thats it. Uhhuh. Okay ladies and gentlemen, id like to open up for Public Comment on item 14 no interest okay. So Public Comment is closed. And thank you all right. Mr. Clerk, call the item number 4. Item 4 Public Comment. Ladies and gentlemen. I have before me comment cards some people indicated the item and others have not lets go ahead mr. Wagner start with you welcome back thank you speaking in support of coworkers and brothers and sisters who retired before 1996 this the the serious crime theyve denied the restoration of the benefits like those of us retiring after 1996 pension benefits in essence are detailed was this skwasz as part of employment excuse me im requesting for myself and more everyone undivided attention on this board i think we should be mooufrpt replaced now delays abused of pensions shouldnt be was this denied the ceo suggested tissue inequality theyll attack this board and this board couldnt meet 24 7 many of those who couldnt be here are deceased theyve been denied theyre just due this board inspected to protect retirees shouldnt are bystanders this board this uphold the city chart exercise the responsibility and hopefully place this on the may agenda with some indication of thank you thank you, ms. Silva and patrick shaw and anyone else. Thank you ladies and gentlemen, today is managers report shows in the first 3 months of 2016 theres been 2 thousand plant wraufld from the coming plan totally 36 million this is year to date of those that were 2 h 200 and thirty full withdrawals for this point plus Million Dollars there should be a policy to car what is going on if to the equivalent those figures reinforce what any planters have been saying that the management of our deferred coming consultant of our bar monies is lacking they could do better and therefore people are withdrawing their funds and doing better at the cost of the city after reading allowing articles about im giving 20 to the director and others to distribute to you the City Attorney there are many concerns startling one of the issue of lobbyists to influence the awarding of this plan number two the loss of one Million Dollars due the financial crisis and the downturn the planter that have withdrawn from this plan i dont know how much clear it can be not working thank you. Thank you. Patrick shaw and calling names . Thank you commissioner cohen first, i agree with the lady that lou article in the west side the deferred comp plan is the in complete sharmz a retiree friend of mine after reading the article they are personal advisor jones was curious about the west portfolio given 9 difference between jones investment and deferred coming they maintained or made money where fell jones but received must percentages from the coming cal after restoring they transferred her deferred coming to edward jones the meeting you approved devesting if the Cool Companies defrmd determined to invest in renewables the committee returned by now to this full board after 4 months of deliberations on which Cool Companies to devest what is taking so long to identify companies to devest from third and finally i strongly urge this board to schedule an up and down vote making the pre1996 retirees whole by awarding them the supplemental cool agreements to waterway to post 1996 when pob was in court have an open session of this board. clapping. anyone wish to comment on item this calling names . My name is john retired San Francisco Fire Department 2004 i am supporting the Retirement Benefits for all City Employees the pre96 retirees received the supplemental costofliving allowance before the bogus prop c denied them this benefit since then the suit it the pob since the suit that we had taken against prop c the court ruled that the retirement board may i stress the word may restore the supplemental cola to all retirees post 96 and pre96 please do the right thing for all retirees and restore the supplemental cola for all retired City Employees thank you thank y thank you clapping calling names. great. Thank you very much for listening to us thank you for listening to us i live in the area im 80 years old and healthy and grateful for it on the other hand, i live in mini im 80 years old and im a caregiver i have a Family History of alzheimers and dementia all 4 of my sisters had one or the other so i have that two perhaps to look forward to i think im going to escape it but my major concern is im a caregiver and becoming increasing dont think the supplemental cola i suspect im not the only one in that circumstance i love any job and i work diligently i feel as though i was a dedicated and loyal employee and i ask you not to penalize me because i retired before 1996 thats it thank you. Thank you. clapping. john hanley. Hello commissioners. Im john hanley a retired firefighter with 319 years in the city i came to repay the debt that fought fires in San Francisco regardless of their health who died with Health Issues im here for the Police Officers some were murdered and at saint bryant tan dens they bombed the church while the funnel im here for the generators and School Teachers and the park directors and mr. Lou retired 1982 from the ports will that break the bank clapping thats what im here for lets not let the new San Francisco values reflect they dont pay retirees what is due we here a lot about San Francisco values lets in the reflect that thank you for your time. Thank you clapping. is there any additional Public Comment on this item. David williams on behalf of pob an election con in labor this says an injury to one is an injury to all by injuring by denying the benefit to the pre96 folks your injuring them and injuring all of us it is balancing the judges language as appoint was discretion the word may somehow through the staff or the City Attorney or who knows what in closed session that discretionary language is interpreted as a must as a mandatory language that is u. N. Denial and it didnt happen in public likewise who decision is to loot this weve seen actually nothing no vote taken to allocate or not take it a letter that said it was denied coming from the cfo i believe it is the boards the boards discretion the board manages the fund the board makes the decision makes recommendations and director into staff but the decisions lie with the board the fund is not the citys money it is the trust fund that is the members that contributed it is our money we defer piece of that and others deserve they are piece with that in mind im encouraging some of you are always been officials have to be responsible to the folks and i need to speak to the people who are concerned about this and what is not why you make the decisions the best way to bring it up as a calendar item and voting on it pubically up and down. Thank you. Next speaker, please. clapping. good afternoon and thank you for hearing me im linda maturated to a retired San Francisco firemen this is ricky has rick cane has had a heart transplant because of fires he ran into those men are heros they drag out our parents and cats and dogs they cut you out and pulled you out and saved your life how can the look at yourselves in the mirror excuse me, sir please look at me thank you. I appreciate that how can the look at yourselves in the mirror and deny those men the money when they signed up they ran in 1, 2, 3 times all day and night dying in the field and dying in the hospitals very severely and you can sit here with their 8 million and say you cant have it who is running the show who is behind all of this really and what are are the plans for the 8 million you wont give those men this it is from the last time i lost two friends okay jerry was my friend for 40 years his daughter was asking you to please give my father his money hes dead he died since this okay. Another one john my son for 40 years he died so you are waiting for everyone to die so you can do what you wanted with the 8 million go look at yourselves in the mirrors and think what can kind of people are you proud of who you are and what youre doing i hope you can look at yourselves and say im a good percent donor for those mentioning men give it to them before they die clapping . Rick sanchez retired Fire Department i think what made dramatic increase in the number of people here was the letter you authorized it i dont know what went into it but ill talk about the executive director and retirement members he spent the last few days reviewing the court of appeals decision dated may 272015 and later looked at again in 2015 with no changes they basically talked about the fees and what was going on with that looking at all the documents for the ruling that the retirement board any apply chapter section a 8 mrs. To the pre1996 retirees it didnt show up anymore the word must was not used ill have to get better glasses had in jason letter dated february 2016 to david the executive director stated that the retirement board does not have the authority to expand the benefits provided by the plan to comply that the charter and the amendment judgment and writ the board must apply the section to the pre1996 retirees on page 2 of the appellants courts rulings under the procedural history the pension fund is the city retirement and overseen by the citys retirement board youre the ones with the authority what i want to know how does a judge opinion of may suddenly turn into a any how did that happen thats infuriated everyone who is wrong you know. Thank you. I mean, thats the truth thats why people are here you know all of you know you have an executive director and staff ive been clapping . Come on up. Need all of help they can get people that educated me and indicated probably a lot of you and your children and are now needing our help it is unfair it is shameful, it is absolutely wrong what youre doing i want you to change your behavior and vote in public and make that right for all of us we work hard and do the best we can and work against conditions all of us wish were better we need you to do the right thing and do it for all of us thank you clapping. my name is joe retired city and county of San Francisco employee i was going to right off a memo he sent is to the board it will be more important if i reiterate what was just said all the times court contain opinions not part of actually decision in this case the Appellant Court and judge mar white both said that they were definitive when they talked about the post 1996 they said the full funding cant stand for the retirees what it came to the pre1996 they used the word may thats what they did they used the word must at the only offenders an opinion the charter language will not allow them to be definitive when it came to the pre199 of you look at the a8 plus that charter language between pre96 and post 96 they have to be treated the same what the public work did they offend an opinion they definitely know how to make a ruling they only made an opinion in order to apply the full funding to the pre199 six the only way to do that put a Charter Amendment on the ballot and have to pass by the voters it didnt authorize you to treat pre967 different than the post 1996 retirees thank you. clapping . Good afternoon. Im julia and grateful im not a window off a a firemen my husband retired in 1991 and weve watched in the firemen who retired die, today one of their widows died pat a number of my friends are windowed and their grateful 3 people are speaking on behalf of because so many times they dont feel they have a voice in the case eve claire 95 she didnt have the stamina to sit down shes visiting her retired firefighter in a car home in sonoma 98 ages of do the math when he retire what is his cost of living what does it mean to his wife now to keep him in the facility 5 years when the bomb went off at the we were hustled out of the door we were there to pay our respective we did that when one of our families didnt support we stood up and respected them i wish you could find it in our hearted i believe that is there i wish you could get beyond the legal let me see and do the right thing and look at it what weve skoosz i remember the firefighter strike with the board of supervisors those with hard times we if take vacation we knew the money we were setting aside for my husbands retirement boo would come in it didnt were not being honored when we stood up and do the right thing im honored that youre standing up and fighting for our right. I hope youll fight for us and do the right thing clapping. thats it. Nope. Just want to make sure good afternoon, commissioners by the way, the oldest amongst us is one hundred and 3 i want you to understand that most people and the people were talking about didnt get siding Social Security this is the only they were preincluded but some of them didnt necessarily have selfsufficient quarters to quality so what they get is what they get you left you a packet of samplers the second letter if nancy got a message from in advance about 89 and they was going to come today to testify she was a librarian and on a limited income blue by the way, shes the point of our group so shes still according and hope to be in a conference on saturday with her i want you to read her letter she feels this is age discrimination i was struck by the fact that the letter from mr. Huhuhish the advice in the City Attorney ill restate ill be saying this a conflict of interest that the where had you dont have the authority over the funded and the members this is somehow granting additional benefits not granting additional benefits if you dont have authority overlight members and the trust fund why are you here thats very, very important i want to mention the last stanford study said this longevity is linked to economics if you have the economics youll live longer were saying those are people that are living weve lost one thousand members since we started this process a thousand almost a hundred a month weve had members theyre sitting at the dedicate side of clothes e colleagues 3 are passing away we needed need to get this resolved before this is only the states that will have to be contacted thank you. My name is harry lou im retired i heard about the people talking about the cola system you people are to do your duty i urge you today pay the cola to every employee of the city and county of San Francisco thank you very much clapping. come. Next speaker. Good afternoon, commissioners Shannon Johnson with me are you of 3 retirees with me i asked my mom what was the least favorite word she said silence. Why silence. Because when you get to be my age nobody licenses that made me think what we have here is a representation of the 76 hundred retirees we know that are living which is detain from 83 when we started and if their voices could be heard they would sounds like this clankin clanking . Were not going away were not going away quietly he want the decide now before we die thank you. We choose these these we dont want the pre96 retirees to be screwed we want you to know were alive and not going away as rich said thank you. Thank you. Next speaker, please clapping. hi my name is elmer retired San Francisco Fire Department 3 two years weve spoken before ive provided you guys with a list it is i asked norman to give to everybody im bask here to talk about pre96 and post 96 not in the charter outline retirees you guys are numbers people are we are very happy you do numbers well, your growing the funds for the futures and most importantly the retirees benefits and we need to keep that going so you always are working with the numbers and the city said you cant do this and that this is all about money this is what makes the world good other than you have to look at the list it has a number on 2 one hundred and 66 thats the number of firefighters retired since prop c was put into effect a one hundred and 66 firefighters thousands of other city workers that dont make as much money in their pension teaches the people that work their butts off all the years retired with 800 of a pension to live in the bay area how do you do that thats not entertainment budget come on and now why is this happening this is a political employ mrs. Stop looking at the numbers if you want to know who the people are ask yankee knows the these are the people that will never get a supplemental donna cola never and this list from the City Attorney keeps this up will be 20 or thirty pages in a couple of years it operationally is it fair thats what we remember i cant buy breed or make the rents thats ridiculous a number of people we feel that you put a face on the number thank you. clapping . Good afternoon. My name is a skip im a retired City Employee and also vice chair of the protector of benefits on behalf of the 76 hundred people those people here were losing more every day were requesting the retirement board to calendar a vote at at may 2016 regular skreltsdz meeting to direct the staff to pay the pre96 retirees the 22013 or 2014 supplemental costofliving allowance retroactive to july 1st, as provided in charter section a plus b as in boy youll hear from the City Attorney saying you cant do that we know who is pushing the City Attorney the one thing you must realize youre a multi multi Agency Trust Fund which is to did responsibility to its members not city hall the confusion and this is good confuse ran across the street to the asian law school and have them explain it, it is in front of the you, you might think were we were kidding were not were saviors and through the schedule to schedule our vote well ends the whole thing we have a friendly reminder i got if an retiree keep our promise i earned it and paid for it and want it before i die thank you. Hello, im gail blossom and ive never attended a retirement Board Meeting so i was kind of curious how they were conducted im hearing a lot of Public Comment that very spirited and not getting much reaction from the Board Members you guys have a please be advised the ringing of and use of cell phones, acid aspect have you going to respond in some way our job to receive the puc Public Comment then you wont get comment or reaction from us. Whats the point of Public Comment. So you can share our opinions and feelings what you want to see. You say thank you for sharing. No, not necessarily laughter . But Public Comment 72 hours your time. I dont mean to be disrespect fill. Public comment is a time for people to come and comment but usually things on the agenda and takes the forms of some people come and sing a song you have two minutes to share our ideas what is on your mind. Okay. Okay. All right. So thank you for sharing our process. Not a problem. And thank you for sharing. Thank you to everyone anyone else . Okay. Id like to read what i wrote. You spoke. I was going to ask you if thats okay. You know the rules you can give our comments to Something Else to read excuse me thank you if i like to speak no Public Comment please step forward no, no we actually dont speak two minutes so. Id like to put my 0. 02 will im john a member of the pension fund and you should youre talking about 8 million, 8 million that peanuts a fraction of 20 billion with the hedge funds chinese quality will loss hundreds and hundreds of millions of well come back 10 years and nobody will be in the board and tell you a what a big mistake in investing in left behind and chinese quality funds some of you members are think off our mother. Actually you, you. You, you have a yeah. laughter you members have mothers pleases give our own mothers Social Security i mean, i dont think any of you have a conscious in you deny month is of people youre talking about are widows of four or five years the vast majority are widows your when it comes to hedge funds and private quality in china 8 million please get those people the cola thank you very much clapping. thank you. Ihink i still have my two minutes im rich retired San Francisco firemen and im going to read joes letter i think that he sent it to all of you it was dated february 23, 2016, to the retirement Board Directors employment system eis come battling a new age of investments socalled pension reform result in age discriminations against seniors and Retirement Benefits the citys Agreement Regarding the pre96 retirees resulted in the eliminations of the supplemental cola of living adjustments to one of seniors those who referred before 1996 the oldest group the city is sdpiment adversely regretting the folks who average age is 80 years old and the charter didnt differentiate between pre96 and post 96 retirees and politically the supplemental cola to each retirement allowance but the citys campaign to eliminate the supplemental cola for just the pre96 retirees does impact the most seniors the retirement board approval of the supplemental cola for the posts 1996 retirees awhile included the pre96 retirees is not just a violation of charter a85263 has a dramatic dispaging effect on the retirees and presents a discrimination on the basis of amble running awe fell off of the statutes prohibiting such practices thats it i dont need to read anymore i think you get the message thank you. clapping . Thank you good afternoon. Im tony retired. Im tony retired firefighter i came into the Fire Department in 1966 one of my first jobs with station 17 on fifth and market i realized what terrible things the retirees are going through prior to the merit and our Fire Department they call the godfather art were not part eve people for the distant franchisee who retired in the 40s and 50s they had maybe a hot iron or something they were living under one a month in less than Social Security so we were not part of proposition there was enough for everyone now here we have years later the miscellaneous employees are put in a situation you take from them art turning a what you people are doing this i say to you in regards to an article i have to i building the bottom line says we live in the richest and most expensive area of the United States and how can we do this to all those employees as some guys wrote or said many years ago what youre doing to me do into them do into me i close with that clapping. right behind you the next speaker is coming up. I dont know who that guy was laughter . Thank you for your time im forehead San Francisco Fire Department its hard to put a statistic on dignity i needed to know one thing a lot of times in life is better to see than look im through one statistic today, the loma prieta earthquake we had over 4 hundred firemen off duty not necessarily working the next day and all the people remember the earthquake because San Francisco is part of our dna i want you to know over 4 hundred people came in not knowing in the next 48 hours they maid their own folks were okay. And come into the city we remember that that is one statistic it is etched in stone thank you very much. clapping . Had we heard from all the pob members that would like to speak. First of all, i would respectfully request that what has been outlined for you as Board Members to undertake calendar the item to action can be taken regarding this important issue and having worked for the city for almost thirty years starting with the Human Rights Commission i know norm quite well, i know know grant most of you know hes the director of the Human Rights Commission i ran into him at safeway hes not gotten his supplemental i would be embarrassed ive gotten any supplemental so it is just like i dont know walked on that you know without you know do the thing that these retirees earned they earned it not like youre giving them something theyve not earned thank you. clapping . Okay im going to close Public Comment. Oh, one more a quick in question i know you cant answer it but think that that im a retired San Francisco firemen us of came in 1966 i retired in 199630s years i supposed to retire in november 1st but because of i dont know Good Behavior i got 6 weeks i retarded in september and im wondering i guess im a secondclass retiree because dont get the cola im wondering how im different because im retired no september than the guy that retired in december i dont see it i dont know how it is justified and maybe you might want to think about that this is i dont know i dont understand how it ticks but its the craps anyway think about it clapping. okay did everyone have an opportunity to speak that would like to speak okay alms to close general Public Comment at this time thank you. Okay were going to go ahead and continue with the rest of the agenda mr. Clerk. Item 5 angle action item. Hold on a minute we have a question. I want to share with the president i concur. Pob you might want to wait to see what we should calendar an item at a minimum members that have a concern theyre not understanding what wife done weve had a closed session i believe if we have an open session we put the issues before the commission and the public at a minimum theyll better understand it i also building it is the decision of this body to say yay or nay i dont believe that the executive director or the board of supervisors it invests in us as the custodian of the operation or vote to change the charter and what car im going what youre title Fire Department were you a captain. Captain carcoma fellowship the charter calls out little pre and post 1996 it didnt in the charter it is a decision for us i believe clapping . I believe this is worthy in our members interest for them to understand the issue and for us to make a call on that. Okay. Any other decision im sorry commissioner paskinjordan. I concur commissioner makras i have a vested interest my husband would have been part of that group i want to bring that abroad i think that having us discuss this in maybe give them a pathway different options and in discussing the options with will be much more reflective. I concur is commissioner mazzucco ill suggest we calendar for an up and down vote for a number of reasons first, the i agree the board has a right and beyond the stewardship our responsible weigh in an up and down vote because of our responsibility new haven and number two because to satisfy the administrative relieve goord gordons any future action by pob they have to come up and the board has to close it so you have other options ill suggest we close it and the point is welltaken a thousand deaths over the last year thats a one hundred a month on average we should calendar it at the may meeting time is wasting i think weve had the facts presented for us both by the agree it should be done in Public Session so ill concur and like it calendar as an action item. Thank you anyone else clean sf. Okay. Im sorry. Public comment is closed. Sir. When you do this in open session you should reveal wasnt youve already discussed no closed session. This is actually Public Comment thank you, patrick. Okay. Id like to go on the record to say that part of this is in anticipation of litigation either from the city or from protect our benefits and there is a requirement this board receive Legal Council when they make the discussion or make the decision that cannot be in open session so there could be limited information regarding what happened in a closed session presented in open session but ill defer to the City Attorney who understands that we understand were going to be sued by one side or the other because of anticipated litigation we have to make our decision based on Legal Council that cant be done in open session. Had you say the others who are you referring to. The city is prepared to sue us the retirement board if, in fact, we grant the pre96 folks the preparation because it is going to be a direct cost to the city. Wait, wait come on. Its when you say the city will sue us specifically are who are you talking about. The city is the client the Mayors Office of housing. Youre saying the City Attorney will sue us. The mayor would sue us or the city represented by the mayor will sues sue us for breach of fiduciary responsibility for exceeding this Board Authority in granting payment to the pre96. Listen remember you guys had our Public Comment you have to absorb the discussion im sorry commissioner makras my final thoughts. On closed session it is our decision to go into closed session and clearly when we go into closed session we vote to go in and come out we vote whether to disclose it or not so the information is ours it is not probation officers by the executive director or the City Attorneys office so if we want to have an open session and have this discussion we can. clapping. all right. Thank you. All right. Excuse me were going do call the next item 5 an action tempestuous for the retirement Board Meeting. Is there a motion to approve the minutes from march 8 motion by commissioner bridges. Wheres patrick. Public comment on item number 4 thank you, thank you. Any Public Comment . Item 5 seeing none, Public Comment is closed thank you all right. A motion and seconded well take that without objection. That passes mr. Clerk, call item 6. Consent calendar. An action. Any discussion no discussion. Seeing none, Public Comment is closed thank you is there a motion to accept the consent calendar so moved. A motion is there a second. Okay there is a motion and a second this passes well take that without objection. Thank you item no. 7. The investment calendar item 7 discussion item from the Committee Report commissioner bridges. Thank you. Thank you, madam chair this is a discussion only item the meeting of march 16 was angle report i want to thank our cfo mr. Coke letter and hired a staff and had an opportunity to hear from many of the new Staff Members and particularly from others about the Investment Strategies to move forward with the board for this commission and so this was very envisioning i enlightening i look forward to largely from the new instead of members the round table from the women on the Investment Community was enlightening it was amazing how much you on you know and the impact for this industry at the same time had little impact has been i think it was an eye opener and want to thank you it was beneficial for not only the board but members of the community to hear from the women of investment i think overall the Investment Committee was insight full and landlords to planning the june meeting mr. Coming back letter anything to. Thank you for the opportunity any members want to comment i know we move forward with many of the strategies weve talked about look forward to hear from the Board Members to what they want to see in the future Community Meeting we have one left im open to hearing that. Is commissioner driscoll. We need to have sessions on the strategies that will be considered in the absolutely weve not had that at all. Thank you it operationally is that it. Like to take Public Comment on item 7. From the good graze of the president i couldnt hear a memb member. No namecalling laughter . Thats why you couldnt get it out who has the marble mouth now laughter . How can you guys be considering giving my hearing lost i heard the Investment Committee ive looked at hedge funds the multiply strategies involved. Why is the inclusion. This is Public Comment. First amendment. Im a deferred of the minutes. laughter . Why are you considering hedge fund if you havent had that conversation commissioners you have the cart before the horse or youre off one of the two take your pick. Any other members that want to share your ideas please come up. This is my first time i i dont understand why would the city sue regarding the 8 million that and im sorry, im sorry im sorry, i cant let you answer that question weve already discussed that item may i have make a suggestion you email one of the Staff Members or when youre here where i had on a piece of paper were on item 7 were taking Public Comment on this. Im sorry. Thats okay anyone else want to talk about the investment Committee Report. I dont have is comment address the commission up to three minutes. Of specifically on the investment report it is beyond write understanding but i would like to ask or peoples someone rewrite our Mission Statement or it destine the last few words. Again, this is. With whether an investment form or any other form. But providing promised benefits seems to come under a different category. If im not mistaken. Folks listen your of in to know we have rules i need you to come here and respect the rules and not knowing the rules is not an excuse. I dont know everything but i want to talk about the investments thats public. Yes. Thats covered. And im a 41 year member and i was down here twice last year and talking about most o not investing in hedge fund and the main reason for that most institutions both colleges and Pension Funds are all medicine criteria returns averaging less than 5 percent a year hedge fund is a very highrisk investment if we dont invest 51 percent pa year you should have nothing to do with that and investing in china dont know about that you public and private quantity be very, very careful those chinese dont know about ghost apartments and Shopping Centers under the extension is 10 or 20 years from now theyll be a booming city that may or may not happy but dont invest in those got out of city and counties cities and ghost towns youll probably loss money and getting back to hedge funds i definitely think you should not invest any money it is causing has lost hundreds of millions close to one billion dollars youll do the same thing why not learn from peoples mistakes many reasons joe and bryan talked about why not to invest markets that are protecting protection that is a false assumption if its true why in 08 to 2009 thousands i think about 5 thousand hedge funds went out of business that was a cow market dont make money in hedge funds. Youre done. Hedge funds managers know more than you do. Thank you thank you. laughter . Stop. Stop your your time is up. Oh, my goodness these are grandmothers and grandfathers i love it have we taken the Public Comment it is closed thank you ladies and gentlemen, now, its time to vote on the item oh, excuse me this is a discussion item so next item is item 8 mr. Clerk wall call that item and make a motion to continue this to next month. Item 8 a recommendations for the Global Custody services. Id like to make a motion to continue to the connection scheduling meeting may 9 well take that without objection. Oh, wait. I would never dream. I like my roberts rules of order. I do too Public Comment. The braxton report should have disqualified public trust because of our cash cow in 2008, you handed the assistance is to raise cash to pay pensions losing 27 million actually realized losses similar losses involved 41 to perhaps over one and 50 million not 27. Mr. High blood pressureish didnt respond to the game questions records requests commissioner makras submitted on october 23rd high blood pressureish responded to one question his gathering requests by a commissioner to just the staff should not have included Northern Trust as a rfp they should be disqualified until mr. Huhuhish answers commissioner makrass question Northern Trust must be accomplished how could we have lost one and 50 million and considering climbing back into bed with our screwed fiduciary it was requested in the report on the Northern Trust be present to the full board if mr. Huhuh english present that report who im guessing he didnt you shouldnt entertain awarding this custody Northern Trust time to devest from Northern Trust and maybe time to devest from mr. Huhuhish as i testified to this board on october 14th Northern Trust will not earn our trust again and never sever the relationship with them. Thank you, thank you. We will sends Northern Trust to you so you can accomplish them. I will send Northern Trust to you so you can punish them for us. Thank you, thank you. Anyone wish to comment on item on this item. Public comment is closed. And open up to the board discussion. I have a motion to continue to time concerning the way this item staff recommendation reads to the custody not to the security lending aspect; is that correct . Yes. Only the custody operation is what they want further authorization to continue doing diligence thats a significant issue based on the comments made. Okay. So a there is a motion that has been seconded to this until may 9 any other discussion if not do you want to do a roll call vote commissioner meiberger. Well continue well take that without objection. Thank you much. Please call item 9. Item 9 an ax recommendation for the hedge funds rfp. Okay. Okay. Thank you staff is there a presentation . inaudible a member of our Search Committee will make the brief introduction as you recall to my left joined us to almost two months ago after a 19 year career he formed intels formation into absolute returns Hedge Fund Strategies to the left is steve steve is a partner at a on herbert restraining order hebt hebt the managing director two volunteers one is on the way shawn and rudy from the usf cant be here and a member of the Search Committee was a consultant to the ambulance planning and the board we entered into an agreement with aon hewitt and steve put together the internal team at a on hewitt and ill let steve stroo introduce is folks. Im happy to be joined byer peter and another colleague that has been involved in the activity from the onset we were engaging e engaged to assist bill and the Selection Committee to invest i want to introduce peter and the team and youll hear from bill in a few minutes excuse me period of time from our process and peter will talk about the swleks to guess you all today period of time is our director our global director another word for the Hedge Fund Research team 4 people in the United States and United Kingdom they view 50 of those projects and placing assets with institutional investigators and have Department Meeting their suited to assist the Evaluation Team and know the candidates and reviewed the reopens and scandalizes who reviewed the candidates weve been talking about so pestering will talk about the process and then the other colleague to talk about the memo as well. Good afternoon. Im period of time im basis in chicago and steve mentioned i lead a team of 50 dedicated manager researchers that assist with the hedge funds around the world ill make comments on the process first with respect to the committee and second to the criteria we used to look at the rfps that were submitted which 21 in total and thirty starting with the review committee i think that is important for the board to know as the gentleman mention a mix of internal staff as well as external practitioners that are if not we have extensive experience 2, 3, 4 advising Hedge Fund Portfolios within institutional clients and in particular with public Pension Plans i think the fact we have multiple inputs from the review committee should remove any inherent bias towards the different kinds of responses that we reviewed so i think the review committee was a well structured and balanced set of individuals secondly, the evaluation criteria to be use on pages four or five on the recommendation that was put in the recommendation id like make the comment given this is something we do fulltime throughout the year our opinion the criteria we used are entirely consist with the best practices i submitted to the practice we used when wear conducting similar searchers, and, secondly, the writings attached to each the criteria we assessed are appropriately balanced the ascertainments we mix of quantify and quantitative judgment the fact weve been involved that the industry for a number of years insured we were attorney general bring our practice experiences to assess the 21 different submissions thirdly, around the evaluation process itself each review Committee Member did an independent assessment of each submission we held a series of regular meeting over the last 6 months or so to discuss the outcomes of the assessments to rational lists any differences between either an hewitt or my assessments of the colleagues submission to insure were applying criteria consistently carrots piece and finally a meeting last month where we all met to discuss those outcomes to insure there was consistent applications to the process so a very structured process from start to finish and we building not the best practices and what came up with this recommendation of 5 different short list of smimgsdz i think this is a Perfect Point to kind of ask mr. Franklin he will to talk about. Shaping up is for the Transbay Joint Powers Authority that is also a trustee for the city of santa fe and a regular commenters on fox Business News id like to point out any addition to steve and peter a fourth member of the team an hewitt that are participated that is Miriam Miriam is out on business and in parts of country so thats it. Thank you gentleman for the introduction and commissioner for the opportunity to presents this as peter mentioned the review committee completed an independent evaluation of each proposal using the criteria and waiting percentages the memo provided for todays meeting appendix c is summary information on the firms weve proposed as finalists id like to spend a few minutes explaining why the review committee buildings o are the firms to focus on it continues its efforts in determining the best partner or combination for the return program ill start with aforementioned the consultants amongst the finalist and like to highlight the attributes that were note in the rfp response first aforementioned is an independent and internal employee owning it is free of conflict of interests as the firm operates one line of business that is Hedge Fund Consulting the firm has investment professionals in 6 locations around the globe with offices in United States and europe and ace the Founding Partners have been working together and two other partners and senior roles with the firm have been with the firm 6 years or longer than and joined ax yay why a i cant in black stone and Morgan Stanley it has submitted a proposal to us demonstrated thoughtfulness and depth and breathe with respect to the policy and guidelines this is a k34e67b declines process with partners leading up research by geography and strategy type the firms operational Due Diligence is strength noted in the area professionalism backward checks and onsite visits and refresh in particular ill note they complete a full operational Due Diligence on a yearly bafgs Risk Management is strong at action i cant they have proprietary systems this is a reflective Management System that allows the clients to perform factor analyze and from their rfp response we were able to see a strong focus on promoting education and awareness amongst the clients and noted in particular they they have oneonone training for various programs they offer for their clients and action i cant has leverage are the managers to obtain better terms and negotiated the fee discounts with numerous managers that results in go economics flow to their clients and lastly theyre a large part of their business and most of public plans at least 5 that very as clients 0 over 500 million in Hedge Fund Assets and in agreeing congratulate public plan comprised almost 70 percent of total a u m that he advise on next ill provide an overview of black stone in a group of proposed finalist black stone a owned by and pub traded parents has an interest through the Employee Investment in the funds which comprise 2 billion of total hedge fund they have a very stable organization their size and success allows for significant reinvestment in 9 business a team of seasoned professionals but teams plural across areas of importance includes the investment and Operations Portfolio management, trading legal and Risk Management despite the large size of the firm their innovative theyized their skill to develop long term partnerships with firms to create streaming and identify emerging managers and negotiate better than market terms that cultivate to some of the members they have good diversification request the approach extinguisher with the emerging manages is one of core competency in fact, the capital in their strategies that is believed to will be about 20 billion is managers under one billion dollars and this is typically referred to as merging managers it is comprehensive in his Due Diligence they average 2 to 10 meetings with the manager before making an investment and extremely focused on downside Risk Management and diversification of their risk as evidence in the of him crisis and low downsize differentiation theyre ongoing monitoring and Due Diligence is strong the Investment Team speaks to manages at least monthly and oftentimes weekly the number of manager meetings their Team Conducts is far above average they also conduct a reunderwriting of managers on an annual basis risk Martin Luther king at black stone is a differentiateser they have a dedicated team that includes for ph. Ds they are a Risk Management that allows for drivers to over 3200 risk factors their risk in Due Diligence is transparent and made available to clients and Knowledge Transfer more broadly speaking is strong they include ceasing r access to all research to clients and allow the client participation with the black stone team and have an annual weeklong Training Program that clients and Board Members can participant in and conference and Training Programs that can be catered to the needs a couple of final points on black stone twothirds are in negotiated peripheral terms with the flag stipulate stating savings off of market typical industry fees for hedge funds and lastly performances of the comilked funds is strong their in the top 5 forerunners in 2008, and on a one year and 5 and 10 year basis through 2014 and the highest sharp ratio in time periods the next fine i thought is they have a stable employee basis with no turn over in the last 5 years and spurs Team Includes four Senior Leaders with 11 years of experience working with each other and manage Hedge Fund Portfolios that customized mandatory and they have approximately 3 billion that are managed on behalf of the public clients they conduct form education for clients and board and staff and in general seek to operate as an extension of client staff their innovative and tactical with respected to the managers about 40 percent of their assets are invested in separate structures that are created to isolate a managers poor competence they sourcing and investing in merging in minority manager is a core competency they host a small Managers Conference in chicago not just for clients but also for other institutions transparency is also an important part of their process minimum requirements are identified by strategy for 8 different strategy indications they break the hedge funds down into they will not invest in the minimum monthly requirements are not met they have a thoughtful approach to negotiating favorable niece fees and other terms in a material portion of their Hedge Fund Assets under manager are invested in funds with the fees savings and lastly the 2 and 3 and 4 years investment are top and their sharp ratio since inception is in the top 5 of the respondents the thirds proposal finalist is light house a platform thats been in place since 1999 they have a stable organization with low employee turnover and low client turnover their investment Due Diligence process is comprehensive and loaf afternoon and re they have a data driven approach their process is prenthd on the skill basis return and repeatable process the committee achieved third party proprietary risk systems results in a power Risk Management framework and enables better understanding of the performance drivers and current portfolio sensitivities their Business Model with the managed cal platform was focused on reducing fixed costs and negotiating lower overall fees per light house performance is very strong over a nuke number of times periods number one in return generation for 2014 and in the top 5 of all rfp over 3 and 4 and 10 years the funds 5 year sharp ratio the top 5 amongst all respondents. 4 of all rfp respondents our fourth and final fund to fund is messing are green from 5 toe over 60 percent today they have a strong alignment of interest and stable owner it is owned by currency and former stakeholders greater than 93 percent of messing are have a material investment they have a custodian well Training Program for client and boards and staff that includes curriculum of investing in hedge funds and onsite from their strategy experts and client educational conference their 6 member Investment Committee has an average of 14 years of experience working together and their investment diligence has a notable involvement from the Investment Committee in particular prior to making on investment they have at least two of the Investment Committee members participate in the offsite meetings a semiannual review and they also do a personal tribulation to see who is individuals that are they have concern is with failures it allotted them to stay out of if they have a thoughtful approach to create benchmarks for Monitoring Fund performance their Risk Management process uses a multi regression model to determine the few minutes this yields a factor shock analysis and stress test analysis for each fund but also allows that in agreeing congratulate for the whole hedge funds portfolio for the client their proposal documented very good examples of Lessons Learned from the Global Crisis and lastly their performance of their comilked funds is down in 2008, theyre one year performance was in the top percent of top performance and only black stone has a better inception of their comilked fund . My overall report the review committee is pleased such as of the assessment of those proposals and confident the completion of Due Diligence an those 5 firms a determination of the combinations and can be brought forward to this board id like to address any questions. Thank you, colleagues im sure you have a ton of questions anything down here. Just one you said opportunity advisory role walk us through. I use the term advisory as opposed to where it is given complete discretion over the investment process which you know we are evaluating these firms more for their ability to work with us and our entrepreneurial Investment Team on the process of building our absolute return program rather than given them complete discretion over the returns. Commissioner paskinjordan. Did you say that black stone has a what operation of all of them. Thats correct i believe so correct. They do. The best sharp ratio. Yes. Any inform ratio or aspect or any other breakdown of that. Thats one criteria as being a very important criteria for measuring those those forms because a true measure of the risk adjusted Value Creation so i think you know we have the data on some of those other metrics. On each the manages to really define you know the award for this and get more grain so we understand this. Also i noticed it in here you put the managers you were looking at you went through f i s kind of surprised me they have a turmoil of people and sales im surprised. They focused in our rfp so we are. Right they met the minimum requirements so we had a duty to evaluate it. They didnt you know did not rise to the top obviously. Thats all the questions i have ill have more later. Thank you for seem like youve done our Due Diligence and put together a lot of information that is out there and youve made it into digestible chunks i have a question about not too much of the recommendation but what was some of the key components that you used to of criteria to weed out the other respondents to the rfp. There are a number of them and they they fall into the quantify and qualitative categories on a quantify kwcht active they the fund to fund a 15 Percentage Rate so this was given consideration and palletly quantify active and qualify active so the the firm measures the risk and it has in place with the components of transparency the data that these firms require on managers and what they do with that data and then on the more qualitative side of things it is how the firms respond to the rfp questions about transfer of knowledge and what impression they left us with through their proposal about how they would be in terms of working with us as a client who is building this program and what kind of partner theyll likely be and their experience with other clients that did something similar as you recall this was a specific question in the rfp how they work with clients transitioning into a program and also giving you, you know a fair amount of consideration for firms how much of their client basis with public plans as you may know there are a lot of unique features inform working with public plans and different from Corporate Pensions and endowments this was something the review Committee Given a lot of consideration to. So i just want to be sure 21 firms you continue to deeper dive dive deeper. One or more david, myself and our director at risk tom will conduct onsite reports and report back our finding together with a on and shawn and rudy together well come back with a recommendation to the board which right now we plan to do so in june. Commissioner. Ill add 72 hours is it is quite common of institutions similar to spurs to select more than one partner for building a program like this. Commissioner driscoll. Let me starts on the issue of sharp we know it is not as when i said sharp you ranked them it is based on 2008 what period are you making it on. Commissioner found on page 11 we didnt provide that but we did it over multiply periods so for 5 years ended 2014 and did it for the 8 years and 2014 so we have a bull market from the last 5 years a bull and bear over the last 8 years and we also did it since the inception have a sharpt ratio you know, we have that you dont see it here. I understand how to read this. So the bottom line we do it over multiple periods. So okay. Because this was one number you brought up the question on a performance based issues is it the fund to fund versus the consultant an apples and oranges problem but recommend to us which model to pursue or a combination of models is that what youre plan is . Im sorry commissioner could you repeat the question. Bottom line make a recommendation for the june meeting either direct or fund to fund or a combination thats the issue now undecided or. It is undecided ill say what weve done so far at the direction of board evaluating the rfps and come back with a recommendation on who to conduct the Due Diligence on. If youre saying. To be determined. You mentioned sharp but not on these pages im trying to understand how much weight on the sharp number. We do not have a specific percentage for the sharp ratio in evaluating all the fund to Fund Proposals we look at the return performance but also the sharp ratio as well as the draw down of each of those firms in order to come up with the total measure for the performance portion of the waiting for each of the fund to fund. Okay. The draw down issue was one of the big points mr. Coming ba coming backer the excellent graft you prepared the draw down issue effects everyone on the contribution this is a good illustration maybe something more so lets go back to the sharp issue did you copy those for the public Pension Funds which numbers went into that mix. Yeah. A good classifying question thank you for askin the sharp ratio for each funds to fund was based upon the comilked as a discretionary product it is representative of their process but they most of these firms they all of these firms also offer advisory types of services those are clients specific so it is not a the shatter ratio was not calculated on a composite but calculated on a comilked fund to fund product that will be a fair comparison if youre desires have to a more customized unit. I believe this is a fair comparison of all of the fund to Fund Proposals but you know there are its remarkably to expect there will be differences we are likely to design a program you know that is different and more suitable to our needs than the comilked product. This chart i referred to coinciding saw another chart does the same beneficial impact include the allocation list particularly the lessening the draw down not just the ratios so i want to point out to the board this is not the only person who is making this case before us so obviously a lot of comments in the audience says we shouldnt do that with this Going Forward we have a chance to achieve this with the work to be done thank you. Thank you for your presentation ive a few questions first of all, for the audience that didnt know what a sharp ratio that is named after professor bill sharpt with the Nobel Peace Prize but there there was a standard differentiation we know that proliferate is not normally distributed but the bell shaped curving the question the sharp looked it from the ratio and looked at it r looks at losses and the index deals with the observation that those returns are not normally described this is the case for hedge funds you can losses more about 100 percent gain but a 100 percent loss not normally sdrbld did i look at the latino ratios. We did not and ill have to go back and check i think we looked at this ratio. We look forward sore tin peter could you look at the actual volatility. It is based on the series of returns the fund to fund provides pointed out so based on the outcome the normal right. Yes which is a big part of assumption those are normally distributed if you get the index for the numbers more so for the hedge fund arena theyre not normally distributed if follow the bellshaped curve but make adjustments i want to ask general questions particularly for those in the audience and watching on television could you give us 3 republicans reasons we want to invest in hedge funds. If all of you could answer that ill be appreciative. 3 reigns we should invest in hedge funds. Ill be happy to march 31st marked roughly 9 years of bull market returns and the s p was up 200 and 7 percent since the low we dont think that will continue im sure you have a phenomenal bull market run and its appreciative we think the down side would be an important basis a lot of the data shows some of that information shows the the data on each the products relative to global stocks and down side delineation and other numbers a good reason inform explore the hedge funds. So the down side protections. If i could ask you 3 reasons to invest in hedge fund. An uncon strabd approach not to be 100 percent have found more tools in our tool in the toolbox to adopt to changing markets situation, second reason access to delineate im not pretending that all hedge funds are successful few are but some talented professionals industry i think did board will benefit from that in an appropriate size thirdly, access to Investment Opportunities that couldnt be assessed through the managers y current use ill add to that taking some of what my colleagues mention and a combination of those factors will likely lead to better returns in down quality market and increase the stability to our statistic we have a lot of color to the sensitivities of the quality market from the equity market we experienced some on the financial choice is the characteristics of an absolute return program the combination of those strategies can generate a profile that has a narrower range of outcomes that will be very valuable should the k3wib89 markets decline there will be periods it does. Can we hear in shawn. I agree my prospective as a former trustee i think that one of the first ones to think about it is a different factor driving performance you have a lot of inevitability and your it gives us an opportunity to kind of lien onto the winds when things are against you like the public eligibility markets are down we saw in 2009 lease with an s p was down 50 percent an opportunity to rebalance into the s p and look at the evaluation your bargain hunting and protecting your money thats how i think about it when i put on my trustee hat an investment haiti think about the correlations this is like backing a cake you need salt and flour and sugar thats how you build a portfolio thats important when you on about the big picture of protecting our downsize for your beneficiaries thats what were doing this bill asked me to volunteer i put in 60 hours but think that is a great cause for more pengsz once once is have our real estate portfolio i think you have a nice private inevitability this was two and i think that the third one is you know it is assess to the bank of the west managers in the world frankly you know the best managers in the world will want hedge funds thats why were you make the most money. I prefer to make it for us not them. Well do that for you. I want to discuss the recommendations specifically in terms of the difference hedge funds. Com suddenly in the Cannon Island of the managers can you how much e how much e how many are. Of your remedies chronicles of the managers are recommended in the cam anyone islands i i read those do you know offhand. I want to give you one more prospective you know so san jose we went to the consultant santa clara we used both strategies you dont have almost all the vehicles will be offshoreour Tax Exemption status so is from a simplicity of investing theyll go offshore in general. So the issues the lack of regulations the fcc didnt look at the reporting, etc. , etc. , etc. Which obviously has flavors complication the domicile is relative in a comilked vehicle but this funds it offend if we structure our program via a funds to fund or a managed account we have a lot more authority to determine what the domicile it where that entity is refrnld so it might not be relevant because were unlikely to be evaluating those fund to Fund Providers for investment in their comental illness vehicle. Commissioners the board fund to funds are recommended with the fcc. Excuse me the fund to funds are registered through the fcc but the actual direct funds how do you youre asking about the domicile where their recommends it is common you know that messing are was domicile ed and became an island were evaluating from the process of working to build a Custom Program for us well have a lot more discretion to determine where the vehicle is domicileed. Well whatever makes the most sense and. Is that a shall or any. clapping we make decisions all the time in Venture Capital private equity a look at the private equity maybe robert can opine but given the taxation those are the key drivers in the determination whether it is onshore or offshore. But the issue in terms of who will cover the account i noticed one the compensates has not worked there are no we would like to have senior people representing us. Which firm are you asking about. I think that was ax i cant. Educating republican joined in february your recommendation from ax i cant they count people. Less than 4 years and one month. Were evaluating this from the stand point of whole team actually has a deep team across many areas i dont recall which individual you were referring to specifically but in our evaluation of the team theyve proposed we didnt see that the short time of service so far that particular person was going to be that impactful and impact their ability to service our account based on the strength of the team. The turnover is characteristic of the hedge funds rather than the turnover is significantly higher than other classes so that concerns me one of the candidates that staff has recommended one is actually sue another with an for poaching employees so could you talk about the employee turnover the poaching of other employees and all those things and the level of complexities. About you answer that what does that has to do with with the rfp. If someone elses lawsuit of poaching. The turn offering over will effect the stability of staff i mean, if people are leaving to join another firm and suing each other, etc. This is a key issue. I disagree your question is out the scope in terms of what were doing here. The genitourinary over of staff both the hundred hedge fund. Steve and peter you have broad experience. Is that more than the other classes. Can you comment on the stability of those 5 firms. So it is one of the factors we look at in the rfp submission because the questions about number of key people left in recent years and the reasons why these 4 had far less turnover than the other rfp submissions i think that is more important to place or be aware of turnover of the cio also known as sloovps to the administrative staff and so we need to get staffs on both types of turnover to distinguish between the people that be marking decided and these employed by the company as a comparison between the hedge funds industry and others i dont have any sense im afraid in the broadest term. For the in the interest of time to keep this going commissioner driscoll anything to add no. Commissioner bridges. Thank you to everyone that stayed it takes a grateful time to go through the data and come back with the type of information youve priority us today id like to thank you to the person that volunteered to help with the process and get to us to this point weve been waiting to get to identify reviewed the information to date i guess my question on the fund to fund im going back to commissioner makras question as you designed the program what we have improvements us is one the consultant were waiting for recommendations and fund to fund in the allocation that weve approved today is 4 percent so the 5 percent at this point is a plan then in our design to allocate this amongst the fund inform fund only or combining that with a recommendation and ohio and yeah. The 4 percent will be assuming on those levels those 5 firms one or more of those firms 5 percent thats all well invest. I want to make sure i understand. 5 percent each. I know that but im trying to see your pardon me. What you recommend. No. But no, i want to make sure that people understand where im asking and because we are in the design phase he want to make sure i understand where we are the process thus far youve described it looks like were on target 40 for you im familiar with the firms theyve been in the industry a while and want to go back to commissioner meibergers point in the entire staff the desire team the turnover is all the time but and most of them their stable so this is theyre starting with 5 percent of funds inform fund only is that it. Orconsultants. Yeah. Uhhuh. And, of course, negotiate key men. As Everything Else youve done i want to make sure to commissioner meibergers point youll do that in any structure. Yes. Id like to add on that point as key men one of the things we as a Committee Looked at carefully including the size of Investment Committees at each of the fund inform fund firms to look at how many members did that would those committees comprised of in some cases 3 Person Committees obviously a lot more key men than a firmer with a 6 Person Committee we looked at very carefully at the overall teams and paying attention to the investment xhesz committees theyre making the decisions at those firms as you recall from the overview owe provided on the 5 firms i highlighted the length of time those Investment Committees more than 10 years with that both sides working together. Thats one of the major things that keeps the people that we are moving forward their controlling the outcome of what is happening. All 5 firms are at least with 10 years old. Is that it. One of all the rfps youve received im curious this is were their firms local in the bay area do you recall how many. Has a significant local preparness. Yeah. Their probably haeshthd here and a toast is in the pencil palo alto. 3. Thats correct. But my question is absent different. Are we good commissioner makras. Ratios and commissioner driscoll raised to up did the ratio or return factor in the selection. Of the recommends. Yes. Youll look on page 8 and this is for the fund inform Fund Performance was 15 percent and performance goes into things like total returns, totaled risk adjusted returns, performance and down markets and these kinds of things. Thank you. Okay. Thank you and commissioners, i would particularly like to thank rudy and others theyve given one and 50 hours volunteer time you know its the ideal labor 20 Years Experience and cost zero dollars a Perfect Match laughter . So and shawn were very independent to you and very, very grateful for your service and convey the same to rudy. Can you talk about this its my pleasure. Great. Thank you very much were going to go to Public Comment at this time Public Comment is open. Chair cohen see how professional i am with and secretarialal whip i might have this committee to the fulsome street fair i hope to see you appendix c in the memo showed flat fees that translate to annual fees of 5. 5 million to 5. 2 million and one billion dollars hedge funds if my math is correct over 5 years and that amounts to 27. 5 that is a deep fee for mere assess to managers. Appendix c reports 4 out of 5 have negative quote performance for calendar year 2008 and must 15 point plus to 5 percent a damning admission to the downturn didnt provide such great downsized protection our seeking 400 Million Investment introduce last months for chinese asia maybe cokeer funds this should say a ceiling not a floor for people to sneak in a half hour builds investment in chinese funds i continue to support commissioner makrass motion to december 9th to reallocate the hedge funds allocation to other classes we allocate those funds and direct staff to halt the Due Diligence of those 5 finally lifts as i testified professor gilbert is missing the marks that found that uc hedge fund provided no hedging and below grade fees at that time the research downsized protection and probably wouldnt for that the firm. Fulsome street see you at fulsome street. A major enter or. Herbert wiener im referring to the bear as an magazine anything connection with the ca minute island pr you know this is a worldwide scandal now, when you have ca minute islands as part of the portfolio you know what it remind me of we have portfolios for 2009 economic crisis where but had portfolios that were legitimate security comental illness with other securities the result the portfolios got contaminated and read to the Security Market we need some Liability Funds the can minute idles should be a wake up call we wouldnt want mission bay anything to do that with were proud to have connections with can mann minute islands and recommend to everyone you wouldnt want to go on night news with that, i am really very suspicious of this whole thing we mentioned the word can minute islands i get a negative reflexion clapping. 10 two 20th century 4 i wished the board asked the other question not if you vaccine for hedge funds but being and devils advocate go to the downsize like the transparent or the fees or lack of control of this board or these managers anyway beyond that concerning the rfps and the whole process which seiu is effected how this is done it is fill seems unclear and not a responded to when i talk about well will you had a partner or combination of partners or consultant or hedge fund to Fund Consultants how do those questions get prioritized and answered how do they become part of discussion and who makes the decisions does the staff or the board seiu still has all the concerns i dont see how you can move forward with more of a conversation on those specific things. Im rudy reading testimony Public Comment from Silva Alvarez not able to be here like patrick ill concerned the understated fees in appendix b and the april 13th memo translates to 9. 22 million on a hedge Funds Investment one billion dollars over 5 years flat fees will amount to 27 point plus to 40 plus an enormous amount why not the fees included in the analysis im concerned the finalist over discretionary and nondiscretionary none show should make the investment without the boards approval this should be like all other Investment Consultants you should direct staff to analyze covered options as an alternative because they will risk in all cases lower fees and Greater Transparency and fcc oversight please support commissioner makrass from hedge funds to other asset factors and those finalists require the fees they will take further use of retirees pension fund but risktaking involves this a lot of the the risktaking involved the consultants will not have to share in losses why would you pay substantially to prior fees and simultaneously increase our risks i thought argue intent was to lower the risks thank you. Anyone wish to comment on item on this item. My name is a john a member of the physical examinations as you may know i 100 percent opposed to hedge funds 15 years seeing a recession people in nice suits from hedge funds consultants who want to buy hedge funds and better sliced bread they have found and 15 years latest they said oh, get out of hedge funds i think because you might ask the gentleman you know mr. Coming backer why were getting out of hedge fund the answer was i dont know if you looked at both that that i look at it into and in the chronicle a reason because over 12 years 4 want 8 percent return so why do you members e. R. People here on youll do better than calpers you cant why was the reason sure we have down markets it caused hedge funds to do good thousands i think 5 thousand hvsdz went out of the business between 2005 and 2009 they lost most of clients money the people that make money are the people that manage them 2 and 5 percent our manages one billion dollars wouldnt take my money if i lost money ask a hedge fund manage to do that ask any of the hedge funds managers to do that clapping. and is there any additional Public Comment . And folks an action item your staff made a recommendation to file this was the hedge fund rfp well move to approve the staff recommendations the 5 organizations they listed on the presentation so they can continue to advance and do Due Diligence is there a motion . Continue all right. Motion by commissioner bridges is there a second. Second. Shell repeat it. Madam chair, i may we have we accept staff recommends on the hedge funds to move forward with this process. Is there a second. Motion by commissioner bridges and seconded by commissioner driscoll lets do a roll call vote. I. Does that work. Its working we got it. I. I. Ill vote no, because the rfp process is uno department of education and dont believe the constitution of the 5 members is consistent with the vote of this commission in identifying the specific 5 Panel Members should be evaluated in the proposals. Ill vote no for those and other reasons. Yeah. All right. Thank you very much call item 10. Okay madam chair. Yes. Okay commissioners a couple of things to note here first if you turn to page well, its the second page i want to take notice our current cash allocation is 1. 5 percent and in the compliance column a policy of one percent were temporarily over that right now the if we turn to the narrative we many a great month we were up over 4 percent last month as you recall in early january and early february the s p 500 feel 10 percent now over 3 percent over the course of 3 and a half months Nothing Happened and truly Nothing Happened the market had a fear of recession thats not materialized there is an old adage the market is predicted 15 of the last recessions. With that said, is Economic Conditions are pedestrian at best gp d up and the current estimates for the current between zero want 1 pretty low growth and a couple of items on items that the board previously voted open on to approve in closed session their substantially closed we requested 75 million the board approves that on march 9 and get 75 million that closed on march 22 and a cap that we requested almost 46 million in e. R. Roses one thing to note approved in closed session that closed yesterday that is not in our board package that is the that weather venture Capital Strategies both do closed we requested 25 and one hundred Million Dollars last months yes, they closed got both of these 25 and 100 million we have a lot going on in the reflex initiative ill try to do that you recall that about a year ago we did put in place a platform to capture the risk exposures in our public inevitability and fixed income what is underway ellen that is traveling today is evaluating various diversities based on down side protection earlier than the amounts to implement the hedge Funds Program we are evaluating pro tem programs they look great to evaluate the hedge funds enforces in a Hedge Fund Program and seen the best ive seen in my career for analyzing risk and for about exorcises and Sensitivity Analysis for total portfolio analysis thats the best ive seen . Underway pardon me. You know i wonder if i should say names ill give a couple that were evaluating one is accumulated even and another one c i a ss organization by john hopkins and a couple of others they look great and others a lot very good ellen is evaluating various risk providers like pawar metrics and russel to interest our cash we currently do do also for tactical rebalancing and then and also for tactical trading users diversities a number of peers that have look at the Risk Management tools in colorado and half of the utah and several others im getting a handout to put into the record i spoke to it okay. Yeah. Excuse me the weather gage items theyre asking to make note into the record ive asked to speak that he bridge Conference Last Week 450i689 highlights were in a low growth of challenging environmentalist International Gp d growth is lower product groenlt is trimmed from one and a half to half a percent and a decline in the workforce from 63 down we have done graphic challenges their every worse overseas particularly in japan all adds up to a challenging data environment i think the market values are likely to continue to give modest returns we implemented that two years ago if you look at on the handout the page showing you our assets under manage o Martin Luther king they peaked at 27 point plus billion dollar the gravel o graphical chart were seeing were current at 20 billion weve been in a lower return thats not to say our returns are negative theyve been almost flat a little bit be able or better we have no cash out and with that, im going to turn it over to board for any questions or comments. Sorry. Beg your paramedic why not have bill do the one weather gage. Yeah. The weather gage. Oh, okay. So 24 closed yesterday as well okay. Okay very good so the board approved Gateway Real Estate in february and requested one hundred Million Dollars i dont know the directing amount has been finalized this just closed but closed yesterday this is actually capita good one. Just to clarify the hundred million we requested one hundred millions it is it the g this is the gnaw capital the name of the fund but we met good win about two years ago the dollars amount is not known not uncommon on the date they close you might not know the number for a number of days let the record reflect the board contempt up 80 up to 100 million. So the team chris do you happen to know. We might not know. Okay. You plan on reporting it. Yes. Well update you ill send out an email to the board yes. Certainly. inaudible . Yeah. Well include it in the may. Thanks bill. In a perfect well, if didnt behove us mulch money it should be defined and that that closed yes, he did. Our allocation is not distributed when it is well report back to you. Thank you for your classification any other Board Members want to ask the cfo questions. I asked the question thank you to item 5 more powerful Risk Management and other data coming online from the consultants and Others Services make sure with the m i s direction our system is powerful enough to adopt fuss some of the people not theyre bigger but more complicated it is a budget item to make sure the Investment Team has the hardware if we decide to do that stuff. Okay. Ask those other people what programs it takes would any other Board Members want to ask a question. I noted in my report he mention that he spoke at the conference but as well he was very proud to see inaudible speaking at conference so last week you and david for a Job Well Done thank you. Thank you, commissioner. I wanted to make one comment i attended the session unfortunately, i had class i couldnt go to yours but the bridge some statements one i summarized my things one speaker got me someone asking said this is a almost direct quote you want to pay for fees because the bank of the west performing fees charge me pretty close to a direct comment you wanted to pay nor fees because youll get more. That was pretty good obviously Small Business ability to charge higher fees but obviously thats not why you should be glad to pay them opening up for Public Comment anyone wish to comment on item on the cfos report. Thank you, commissioner i was looking at introduce the materials presented here and oh, sfgov sorry there are comments about investments in china and the growth and credit in china is a concern and these are from j. P. Morgan and mask transition in underway so declined growth in china is because of commodities i think that we should hear a little bit more about your investments in china with regards to the portfolio and the last thing id like to bring up i dont think so. This is the right place but assets are mentioned over a year since i brought up the issue of administrative building that in the civically area that will you be owned by the eirs board when i started it was with the retirements system in 1973 this of mentioned a building then and ive been watching the Service Center i see that was transformed onto the main the Old City Hall annexation has been the courthouse and the state coming building turned over by the public works into a beautiful this i see you know the triple as building and a lot of development in the area adjacent to city hall and Service Center area yet i see no report back no interest in, no plan nothing with regards to this ability of this board to purchase land are purchase the building or develop a new facility with regards to that kind of facility that actually could be lucrative but part of that so id like to bring that up again and ask you to consider sclaernd that at some point in the future hopefully before i get into that adult stage ill not be able to make it to the meetings thank you very much. Lets take Public Comment finish Public Comment and get back to you commissioner moej seeing none, Public Comment is closed thanks discussion now commissioner makras. To the cfo i thought we were always mixed is this the first one stage one is in june walk us through is a change why is it a change and go ahead jay. Weve always recorded those are estimated based on numbers from Northern Trust that closed and we added actually because commissioner meiberger appointment compared the report to the current report and couldnt figure out when we lost 40 base points what we do there is a reconciliation that happens after the beginning of a month and that what these are based on are actually records filed or adjusted numbers and at this time estimated numbers. The flash report theyre not and really currently obviously with the current financial situations once evaluations their percent the estimated numbers are better than what we happens at the given month but this is not new weve always report those grow fees. Thank you. Anyone else i good here but a discussion on this or just a discussion. Just a discussion thank you mr. Clerk, call item 11. Thats great. Thank you very much. Id like for someone to start saw we approved the thrust of that meeting an rfp out two rfps out this was dealing with the consultant users and the glide path to the target funds so we interviewed the recommended final listed and the committee pose for questions with Due Diligence to staff and consultants open this project thats why will be hopefully be before the aboard on the may meeting all right. Thank you. Any discussion colleagues mr. Coming backer and. There were several comments earlier about the district of columbia plans plans and containments the article that mr. Art wrote talked about the fiduciary standard required regarding the district of columbia plans now the d. C. Has the standing of a best practices or a steward rather than a fiduciary i think that is an important initial that would be worth discussing the other issue has to do with with the amenity those are Insurance Products and im seeing every single place not in our own newspaper but tax 14er89d amenities why in an account i want this talked about in any way, shape, or form because i hear criticisms why tax exempt Insurance Products you dont need it and no response and so those are the customers they ask those questions we lose a lot of faith by not addressing those substantial issues their backed by regulatory agencies so ill respecting request with the Insurance Products the tax shelters amenities as well as the fiduciary standing of the part of consultants and other members be it. Every product that is offered in the deferred compensation is brought through a committee and approved by the board weve tried to address the questions regarding very specific issues and jefferson dont respond to an administrative article like the gentlemans article to clarify misinformation that be in under but within the purview of the committee to determine what the priorities are currently were doing the two rfps for both Investment Consultant and i shouldnt have stolen her report. Are you ready. The i dont think the answers were two busy which is why were not addressing. I said we provided answers the best we can for example, mr. Or attended meetings we have questions we tried to answer whether it was satisfied this is not within our control other than it can be brought before the committee and alternative transportation that might better be what those mrarnlts are requesting. Im talking about the amenity the tax sheltered amenity in a tax exempt arena thats the issue that needs to be addressed thats the substance and if youre talking about misinformation i want to know the extent of the mississippi information. Thats the request. We dont counter an article in the journal or newspaper unless were asked to correct misinformation. Didnt warrant a response. Yes. Were on deferred comments is our consultant here. No do recompense to meetings. At Board Members of the committee when theyre doing a presentation they make a point to come but not generally to the Board Meetings unless with a presentation they attend the Committee Meetings. Okay do you know off the top of my head if our consultant did the fiduciary neuron contact the board. Yes. Their fiduciaries. They are are you sure. Yes. Yes, im sure. Specifically didnt say fiduciaries can we bring the back next time i dont want to challenge ive read the contract theyre not a fiduciary were talking about angeles consultant for the benefit plan they did take the standing as a phidias a consultant for the defined contribution their specifically not fiduciaries i read both contracts so can you please correct this for the next meeting please. I will yes absolutely we will. Im sorry whats her name. Diane. Sorry diane. Do you have a report to make to us. Yes. I do. Coming up are we on 13 yet. Okay. So well get to 13 diane. Moved into position i thought we were there. Commissioner driscoll. Ill ask staff and the executive director a couple of items ive spoken to mr. Oar they at the rays questions we give them information they dont want to understand the answer thats one members can buy amenities we dont offer those im familiar with the judge the members are not interested with very, very rear exemption so to defend something we dont do is an odd use of time you give all the questions about articles that were handed to me and those Board Members will take on other discussions. Any other discussions thank you. Thank you, again commissioners rc sf it seems to me those questions regardless of where the first the questions were asked by other commissioners or members of the system they need to be answered this gentleman that testified earlier with regards to the pre96 she took me aside quite a bit and talked about the deferred coming wanted to know why she losses money where other types of similar plans not necessarily 447 but 447 are making money our plan has seemed to be diminishing in its return consistent she said shes going two take her money out i have a number of colleagues that have taken their money out of the deferred coming the returns are not there they dont see the benefit they can make other investment incompatible plans and contractors weve used so i think that is a big issue i hear about it through our members on inconsistent basis but probably every two or three months people are asking why the returns are not there and also when you say we dont offer a tax shelter amenity those accounts is a tack shelter amenity i want to know at some point the differences and why were offering an Insurance Company product and what is the insurance were getting none of us seem to find the answers to the questions yet the answers persist amongst active and certainly among people are president to draw down on the account and were losing money. Is there any additional Public Comment on the item please come up. Commissioners mike officer for the blpolice Office Association were a strong advocate for this institution we remain in very, very strong supporter and we look to this board for direction this board decided what options so i dont criticize the option dynamic e im not criticizing did board you give us the option i attended the meeting of the committee and he was extremely enthusiastic to hear the Committee Members opening stating the objective this money goes to the participants and a starting assumes for this plan that works well and had the chance to meet the new director i think shes going in the right direction and well, her to the deferred compensation pland don see with the poa will be unsupportive and want you do the best you can thank you thank you for your comment is there any additional Public Comment . Public comment is closed. At this time commissioner paskinjordan. Well, i personally had people come up i said people from the city say im happy with any performance in the preference coming not made a lot of money in the past couple of years i said the Stock Exchange is plat this year and last year and conditions well get the same kind of comments not greatly steady the storage Stock Exchange so if were in a low groeshth environmentalist well hear more and more of those responses im getting myself ready for those. Any other discussion commissioner meiberger. Im sorry john it is closed Public Comment is closed no. Sorry. Well get you next time i want to follow up on the fiduciary ill reading directly in the angeles contract under section 5 the consultant affordable units it shall exercise its powers in good faith and in a professional manner not a word on fiduciaries responsibility so i have a conflict i think you should correct it. Directly the consultant to the d. C. Finding is not fiduciary. Thank you. Any other deduction great lets move on. Thank you good afternoon, commissioners my name is diane im the deferred compensation manager im here to report on the focusing d. C. Report in front of the activity report at this time id like to skewer any questions specific to this report. Colleagues, any questions at this time any questions. Okay the next item are a couple of combrupts on the projects that have been. Edu eluding the rfp was discussed at the last Committee Meeting on march 15 we have 4 remedies to retain russel as the manager and currently doing some followup Due Diligence on this and that included a site visit to russel headquarters in seattle on april 6th once the Due Diligence is complete we plan to reconvene with the committee to gain approval to move the recommendation to the board the other rfp we have in process is the Investment Consultant rfp as you may know that was officially issued on january 22nd and 7 responses to the rfps received by march 29 im currently reviewing them to define the fingertip lift there be interviewed on april 27th. The last item a quick update on the loan the emerge is in the process and going through an update its been postponed to july to accommodate the fiscal year end requirement to payroll testing and prelims of the loan Program Begins once it is done were take into account cue 3 and working on the components for the program as well as communications were ready to go once the emerge is going. Cue 3 thats when you expect the program online. The loan program is subject to the emerge update the successful roll out in and once that is rolled out expected in july then well begin the testing and implementation of the program. How long will the testing stamp take. We are doing everything we can to prepare for that there are limitations because we need to wait. The actual environment to be live were anticipating at a minimum 4 weeks of testing and thats why i feel that cue 3 is a good target considering a smooth roll out whats the maximum time. I dont have that answer ill have to get back with yo im trying to fought how long the test time the bugs are worked out and the program that operation all. It can be completed but Third Party Testing related to transferring the information inform credential so were relying on emerge doing that payroll process they on this process payroll every two weeks is theyll be testing whether they can take the loan repayments accounted for and get them safely to presently on the other hand, credential and into the members accounts theyve estimated 4 to 6 weeks and testing before they turn it over to us to test. To test. Im optimistic this is a relatively straightforward prelims for the payroll since were familiar with it so we dont anticipate that that will are beyond the ends of july well be able to roll this outlive possibly for pay periods gwen in august but wire relying on a lot of folks we have no control over. Thank you thank you. Commissioner makras. You referenced on rfp process through the proposals would you all the Panel Members involved. Okay. As in the Deferred Compensation Committee conducting the interviews that had been the district of Columbia Committee so commissioner driscoll commissioner bridges and sxhaun. An Affordable Housing Team Including myself as well as other colleague in the 447 world two of us that are scoring the rfps and from there well deliver and compare the scores and bring the top 3 based on the scores to the committee. The review panel will be two and one other person. The score errors are two. I have one question since retirees that might be in the steel value fund you want the credited Interest Rate for the First Quarter do you have a permanent one now were in the second quarter. The second is 4 want 45 percent. Im glad he asked that question. I was saving that. Thank you. Anyone else all right. To Public Comment. John. Now is your chance. And, of course, anyone else. Most of you Board Members think hedge funds are a great investment i love investing in great investments why is hedge funds a option i might be wrong but people that make moiflsdz dollars and gets in empowerment funds well, you think it is a good investment i think it should be an option to the compensation funds so we can all invest thank you. clapping. anyone else that wants to speak in Public Comment. Herbert wiener he proposes a new hedge fund fund it is call the can minute islands fund laughter . Anyone else okay Public Comment is closed. All right. This is just a discussion item thank you very much diane for your presentation. Mr. Clerk, call the next item. inaudible . Thank you this is for threequarters of budget year we have total expenditures of 200 and 23,000 if reflects an increase in staff travel as well as board travel we have a remaining travel budget of 485,000 we safely be under budget at the end of this year it is in the trust until it the extent so the money has been in the trust. Lets go ahead and take Public Comment colleagues if no questions all right. Public comment time for item 13 anyone wish to comment on item 13. If you dont spend the travel money give it to the pre96ers laughter . Thank you very much anyone else Public Comment is closed. All right. Thank you this is a discussion item could you please call the next item. Item 14 drugstores has been considered thank you real quick we couldnt hear you on our mike call 15 again. A discussion board member good to do the order. At the time id like to ask robert our City Attorney to opine on the legal concerns regarding frank and open session open session of the b o b discussion and hes retirement letter. Thank you madam president so in regards to that issue youre considering in the future agenda matter the legal concern would be simply this closed session and for purposes of existing litigation it is there so there can be an open and transparent discussion as to the pros and cons, if you will, of any potential litigation Going Forward i think that it would be next to impossible to have a discussion in open session without talking about the strengths and weakness of our position the letter if pob mentioned that unless the matter is resolved it may litigate so thats at least one instance and one that you might have the director mentioned theoretically you would have the city on the other side of the issue but potential adverse we dont know of funds going one way or another i want to alert you if you have an open session it is open and frank and with good voices in the City Attorneys office it it could potentially hurt our position depending on what you decide one way or another. Are there any members that want to discuss anything indirect staff or put anything on the agenda commissioner makras. Two items and maybe a question one at the last commission that mergers there was an investment with im calling the 400 million China Investment and at the meeting a confidentiality agreement as i understand by the staff on that issue i requested a copy the day after the Commission Meeting and havent received it so ill formally ask to be given a copy there was an open session i if receive that. Next this body gave diversifies directives to look for a headquarters and for the staff to look for heralds i want a report how were doing closing into open session isle ill leave that werent and lastly weve received a couple of binders that we all have to turn in our seven hundred forms so ask the City Attorney if youll see consultants are registered there if it is the same time cycle and catch up with the consultants. The consultants received all from equip torrey and reremembered them of the april 1st deadline is it from the other consultants and the people weve identified and pleased to say weve gotten all the Board Members under the deadline so thank you for your doing that also. Thanks all of you. Any other discussion and yes, sir. I want to address the request from all the retirees 3 are here and request we calendars an action item for the may Board Meeting rewarding the pre1996 retirees. I think that should be done soon if a hundred are dying every month i think that important we do it on a expeditious basis so calendar for may on the monday this time. Any problem with that. Ill let you know. Anyone else okay. All right. This issue come up publically or both ill request the attorney for make sure youre able to brief us on the basis of our attorney or the citys str that conflict of interest issue is raised consistently please, please be prepared to explain that to us and the public. Very good, very good okay. Its time to take Public Comment on this item anyone that would like to comment please come on. Sarah johnson thank you, commissioner for putting that on the calendar i was a little bit confused by commissioner cohen you said well see what we can do makes shrug my shoulder how do we appeal that if a Single Authority said you miss thinks. Calendar it for action at the next meeting you said weve got a problem i said well see a joke. I cant say relax i mean this is important to us and it is important to our pre1996 wed like to have humor amongst ourselves but dont want the humor from you. Okay thanks. You can have it amongst yourselves but please be careful how you respect us. Herbert wiener im hope im able to express my feelings i see a secret diplomacy in closed session the way the pluses and minuses the lawsuit and everything shouldnt this be done before the public i see no reason to hoed it in secret it deprivacy the public of necessary information and the City Attorney is a public official and a public official shouldnt say ask me no questions ill tell you no lies it should be open to convey things and, you know who knows if a lawsuit is filed it could damage people and it could damage you know people that oppose pre1996 retirees so test in the interest of people to save costs and wear and tear so i dont think that should be done in a closed meeting at all it it should be open and the issues weighed by everyone that includes the public and beneficiaries of the retirement it is our retirement youre our representatives and you shouldnt engage in secret thank you thank you. Is there someone welcome. Claire r e. C. Sf we want to commend thank several commissioner commissioner makras thank you for the headquarters of claefrnd im feeling better and getting more energy after hearing that comes up on the calendar and commissioner meiberger and thank you commissioner driscoll i commend you for bringing up the clarification api ive brought it up a number of times what i suggest is that information come forward to that it is not coming forward on may 9th as a way to hold in some other way delay the discussion ultimately and the vote that the decision we want you all to make one way or another with regards to our colleagues as we know and keep mentioning are aging out and down so if that could be classified so it didnt impact the may 9 meeting i think there a may 13 requirement for director huhuhish to appear before the court to advise on the process of lawsuit e. R. The silent resolution of lawsuit and the may 9th veto will be significant thank you all for your support and for agreeing to calendar. Anyone else. Bill retired City Employee just want to say ive worked for the city store thirty years this the first ive heard an acting mayor to Say Something bad if people vote against him. Linda i spoke earlier i didnt mean to offend anyone litigation was brought up why was the city sized the Fire Department people and the city people for the money the 8 million that they put in what does the city and mayor have what i dont understand that why would he get the money why dont that go to the heros that worked for thirty and 40 years for many money why would the city sue them where would the money go what would the city do with that why not give to the guys that worked to death look in the mirror and do the right thing give it to those guys dying everyday going to so many funeral you get depressed those people needs their money 72 hours theirs give to them i dont understand why you dont understand how much more your educated more than i am give those guys the money theyve earned it give it to them theyre still alive and need it you can look in the mirror and say i did what i was supposed to do they earned it, its in their damn money give it to them give it to them clapping. that was very Pacific Ocean number one the director has indicated that in closed session you would discussing our case with the pob and discussed that the city will sue you if you voted to give us a supplemental cola thats the serving part and we the pob sued the city and county of San Francisco we were told by the City Attorney go ahead do youll never get a penny go ahead and waste our time question won it went to appeal we won again so the City Attorney that has lost in the court your between a rock and a hard place youll get sues by the City Attorney not by the pob youll get sues by many retirees well have to sue your good evening to go sued do you want to be on the moral side or just go under the treads of the City Attorney and fold this is something you guys have to think about youre our representatives so the technical thing i want to say none has brought this up but the lawyer sustained set the record straight laughter . All right. Lets wrap up this business. laughter . Is there any additional Public Comment . Public comment is closed. Thank you very much folks the next item please. Im sorry. The retirement board reports and comments the reports were submitted and id like to take the reports as submit and take Public Comment on item 16 anyone wish to comment on item seeing none, Public Comment is closed. Thank you mr. Clerk whats the next item, please. 17 you have the option of closed session and the option of closed session. I dont think so well, let me check in colleagues anyone interested in going into closed session. No. Okay. We finished all the best. So we have one item all right. Lets take Public Comment were going into closed session anyone want to comment all right. No Public Comment Public Comment is closed. Thank you for coming ladies and gentlemen, pob thank you were going to go into. Okay. All right. Thank you id like to make a motion we share with the public that we as a aboard will not be waving our attorney compliant preservations as were coming out of closed session a second. Second. All right. A roll call vote all right. No. No. Yes. Thank you madam clerk, is there any further business before this commission . No, i vote we the office of controllers Whistle Blower Program is how City Employees and recipient sound the alarm an fraud address wait in City Government charitable complaints results in investigation that improves the efficiency of City Government that. You can below the what if anything, by assess though the club Program Website arrest call 4147 or 311 and stating you wishing to file and complaint point Controllers Office the Charitable Program also accepts complaints by email or 0 folk you can file a complaint or provide Contact Information seen by whistle blower investigates some examples of issues to be recorded to the Whistle Blower Program face of misuse of City Government money equipment supplies or materials exposure activities by city clez deficiencies the quality and delivery of City Government Services Waste and inefficient government practices when you submit a complaint to the charitable online complaint form youll receive a unique tracking number that inturgz to detector or determine in investigators need Additional Information by law the City Employee that provide information to the Whistle Blower Program are protected and an employer may not retaliate against an employee that is a whistle blower any employee that retaliates against another that employee is subjected up to including submittal employees that retaliate will personal be liable please visit the sf ethics. Org and information on reporting retaliation that when fraud is loudly to continue it jeopardizes the level of service that City Government can provide in you hear or see any dishelicopter behavior boy an employee please report it to say Whistle Blower Program more information and the whistle blower protections please seek www. I want to welcome everyone here today and today, we are signing this very important piece of legislation and let me begin by thanking supervisor wiener so far his instead of leadership the sponsoring the legislation that will raise the minimum angle for anyone purchasing Tobacco Products and e cigarettes to the average 24 and that will take effect on july 1st of this year i know that supervisor wiener alo with his cosponsors supervisor mar and supervisor cowen and supervisor farrell and ultimately the entire board had a adopted this and this i know that the supervisors with working closely with our duty 0 who has been documenting why it is showing so important to continue our efforts as a city if not as a state to continue be rooiktd the access to cigarettes particularly at journeying or younger ages that is advocated by the groups like the Tobacco Free Coalition i want to thank them theyre not just here in San Francisco but the entire region and all over the country working with the Health Department making sure that supervisor wiener and not only Pay Attention it the science and data it is going on but that we do our best to end the suffering that is brought by by longterm smoking that obviously is the cause of cancer and asthma and Heart Disease we do our best to educate the public in doing so if not the industry that sells overseeing products and ultimate our kids are your family when in their 18 and 19 is shown that the coalition has shown over and over youre putting that some 95 percent of long term smokers had begun smoking at the age of 18 perhaps younger and as certain under the age of 21 those habit are so hard to end voluntarily so thats why we have to go to many other front to try to do this and thats why i think that the supervisor wiener has found a person cause and Public Health health cause if the violation kriebs the department of health to make sure that we do what we can to end our these diseases as much as we can to make sure that we also reflect as the mayor of the city if we can save a lot of money if we are able the medical systems we have to have in place it treat cancer and asthma with smoking is an incredible experience to the Public Safety the cleaner air with the Coalition Work on families that Secondhand Smoke impacts this has another critical reason why we want to do as much as we can and i think were on the overview we know that supervisor wiener is already in contact with the Governors Office as we are and with his the 1184 particularly senator leno and senator henrys to insure that the state which maybe hopefully in our minds the second to join hawaii to end the sales of Tobacco Products and less people under 9 age of 21 it doesnt make it right because your 21 you buy Tobacco Products wild to end it. Everyone hopefully with the adult level of age 21 that people make Better Health decision tore themselves and their family so i take this opportunity to thank the coalition i know that in looking at the data as they have done in working with us this year was a strong sense interest the data it the smoking rates are higher amongst people of closer and amongst the let the record reflect community and other xhucht we rank it with a hard impact sales work that is done by Tobacco Industry the may or may not Lgbt Community thats where we really have good data to show that the more we do to educate your communities be about this the better off well be so with all that background i want to say to supervisor wiener you have again showing the good leadership im going to give the pen avenue we sign this your accumulate more pens than anyone but thank you for your leadership and also working with such important groups like the Tobacco Free Coalition supervisor wiener id like to invite you up here to say a few words thank you, mayor ed lee ill give that pen to the advocates and the district for theyre really horroric work tutor sing a song full of the hope that the present has brought us; 24 legislation in a way that highlights this critically important issue San Francisco for many years has been on the cuttingedge of Public Safety whether around hiv or led pant and sugar sweetened beverage whatever the case weave been from the forefront and once again we are in the fire hydrant of what i hope will be a tile waive of proving Health Legislation that eliminates tobacco use in this country this is a huge problem weve been involved in a 50year struggle but with the tobacco city that produces a product with no benefit whatsoever that kills a half a Million People every year 34 is a serious issue and serious punting kiss im proud we live in a city where we can be on the cuttingedge where the politics of this city allows us at city hall to make good progressive policy i also want to say we know were up against a very well financed component the tobacco destroy for decades has fought ever effort to try to control tobacco use and enemy linkage between their pursuit and the health we know that hillsborough tried to do that they have spent their legislation after an expensive lawsuit by the Tobacco Industry we in San Francisco are willing to fight that fight that is amount about our city thank you to the department of Public Health we sometimes dont roles e releases how lucky with the best putting department that supports our efforts to make good laws that vascular critical exercise an Amazing Agency and our advocates for give us the political spouse space to to be able to do this and as the mayor adu u. You allowed we passed that legislation a week and a half good and the law jam the state assembly broke we that republicans willing to raise the tobacco age to 21 to pass senator lenos forwardlooking bill to make sure that cigarettes are tobacco are still a way to get addicted to nicotine and will you the tobacco tax it is a huge step forward i hope goes to the governors desk thank you, everyone clapping. so are we ready to safe so far lives ill add one mount reason not in my notes or the legislation but it is about my history about 10 years ago a mayor asked me to pick up cigarette butts as a public works decorator i say to all the public works staff that work hard if there was less settings thats another reason to sign on the legislation; right . Yes all right. clapping. laughter . Todays date is 16. Thats it all right. Good afternoon. Id like to call the meeting of San Francisco Public Utilities commission to order please. Hit it harder please
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