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Thank you. I wanted to say thank you on behalf of the board for all our work sometimes that is a thank less job mr. Clerk if we could please roll call commissioner cohen commissioner meiberger commissioner bridges is on her way droilg brisbane commissioner driscoll commissioner paskinjordan pr commissioner stansbury is quorum is presented. Thank you very much please call the next item thank you ladies and gentlemen, Public Comment is open at this time. Thank you, president im Patrick Bradshaw regarding the potential investment in the loan pool it was good warning the retirements system is asked to purchase. 26. Million no others secondary market willing to purchase it unfortunately, this simultaneously suggests the retirement system maybe under the quote greater pool theory an investment pool investment using the assumption theyll be able to phil fill it later to and then greater pool this is packaged not because you believe that is worst the price but rather you may believe all be able to sell to so o to someone else down the road curtail the investments conducting Due Diligence until you vote on the thresholds issue commissioner stansbury that is peoples no. 1 precedent to invest in another city agency which is akin to selfa deal i again distributed a handout to the commissioners showing the city be routinely emailed did agenda to interested persons list and at least 7 board and commissioners have background and explanatory documents on and on online adjacent to the online postings it long past time for the retirement board to begin providing the same level of transparency and other whereas the Retirement Systems beneficiaries and planned members that the city commissions provide to our constituents we need to move on this and do it quickly not rocket science. Is it true, mr. Shaw like to call of john, i have a speaker card for him. Thank you. I directed this handout im going to read quickly glorious marks had hair wake up up call in august they corrected and i have no idea when the bail marketed will begin to say the same thing it is time to try to prepare for this implementing the hedge fund i sited a couple of articles about Pension Funds that are looking to derisk you certainly not lagging in that respect youre trying to derisk there are paying a longer time ill moving down to the middle the page with the florida to remain staff id like to make the suggestion you do the same it you pay your staff an Incentive Fee was not to remain the staff but incentivizes them and direct them i do xhaerth thooig to show your paying two base points for the staff to manage one billion dollars of asset youll pay the hedge funds would be youll be paying them 2 hundred times as much okay commissioner driscoll might quibble with that is fine of one no 5 youll pay hedge funds two them that youre paying our staff and paying this is the hedge fund to cover 5 percent the assets you have to figure out who what to do with the 95 percent especially the public entities that has overdone its benchmarks by. Small platinum to paying our staff Incentive Fee subsidies and paying them well and highest is the single best a thing to do as a board to deliver alpha if a the ceo mentioned the end of july my guess after august it is probably less than that i wouldnt look upon paying the extra salaries to staff as an expense the way the critics saw by the best investment for the retirees thank you thank you very much. Next speaker. Is ms. Kay walker thank you and good afternoon, everyone this is a about the Pension Fund Investments ill talked with the Mayors Office of housing and listen to the tape review of trying to figure out what the investment was i dont know how far youve gotten with that to me it sounds okay. It is on market rate maybe the liability it questionable but this is my individual investment i want to see what that is and the 9. 5 it sounds like a guaranteed fueled i would perp i dont know that much about what all the others investments yield if it is even a little bit above average this is a point in the favor since wall street is going like this also it is only market rate and i think that is very important based on the appreciation ratio right now i like this is going to be i would put not contract not continued nonetheless feasibility under certain circumstances and as a member of this system and a city retired city worker id like to see in the contract i know that mayor president ial hes not been reliable ive started with prop c in that context where the police have the money the 26 point 5 thousand what is he going to do with the money gardened from our investment matt haney would it be going towards below grade housing not to do Something Else not to raise the amount to market rate and that would go into the contract if i understand this loan correctly or investment correctly in that the investigating of investing of this well be reefs to the mayor to invest he put in the newspapers it is for below grade housing i dont understand the secondary matthews thing. This is a very contained investment i wish Maria Benjamin shes been dealing with that for 0 long time and could answer the questions in a different manner. Next speaker thank you very much commissioner cohen and commissioners i wanted to take the opportunity to deliver the good news that lets see last wednesday one week ago sb 185 passes in the state assembly and josh is expected to sign it arrest wisconsin we saw on august in the chronicle and the laments discussing the study that shows that al has lost over 05 billion with a b over the previous calendar year and long term investors will respond to one year just pointing out the direction those investments have happened the Grant Foundation and sf at a time glood glad to see thatplegic is not here given you had a closed session i wanted to speak brief to items 10 and 11 for tobacco you guys moved to level 3 in 1998 and the language listed it quote due to the existing litigation prototype legislation and restrictions relating to the tobacco industry, etc. In addition to 9 into 32 and 350 will likely pass on friday 50 percent less petroleum by 2030 this isnt the kind of governmental action that will effect the markets that moves you to level 3 for tobacco today, youll look at in june of 2016 and move 3 months latter in the language the retirement board directed staff to engage in constructive dialogue during the level 2. After 5 months it was determined that everyone who is leaving all right. Left youll move ahead with the action you voted this year to activate the carbon 2 hundred and its been six months now the only precedent from level 2 to 3 is 5 months im not suggesting the amount of investment is similar to the fossil fuel but their 3 percent or less of our portfolio and after 6 months weve seen it is barely begun sf San Francisco has a self consultant of timeline but the Movement Board is not only fluid but. 3 seconds. Very, very slow. Weve discussed the carbon with the committee but it is the boards responsibility not the purview of the s g committee to implement the social policy of the, if you will, full board we have heard in commissioner stansbury and commissioner meiberger we need to do level 2 well, weve heard this but not happening there appears no drive to make this happen and the affordability for it is not happening we urge strong action now. Any Public Comment on this item . At this point please approach the podium. My name is my name is tie ive been emails the boarding Board Members for 6 months with no response and right now i think the moment is critical because im talking about the fair expedition it funds performance and extends the reason why it is critical as you may know the market it very well actually, the market is up 3 hundred and 90 points and today plus 2 hundred and it went down to mrunls 250 it is very, very critical it is not only the correction okay even at the current investment your funds you know it will not do well perp will im forced to put 55 percent of my familys investment into the stable vail fund as you may know the Stable Value Fund the fund is around 1 percent but the expense is point that basis point that is really, really high i could go online on the internet and get a better rate all the other few minutes i copied those are the website and the expense it rankles from 38 basis point to 95 base points for Real Estate Investments okay. This is really, really high and then we dont mind if we pay high expenses if we can get the performance but the performance is not there the fund from the consultants is not doing well, all the mid cap and their below market perform from 2015 the equity in the expense ratios are over 40 basis point and im really concerned because the market right now is below dow jones 17 thousand it is going up both that and today it is not just the Market Correction the market is going down it is going to be possible a bear market means it could 0 go to 10 thousand and the goal maker from prudentially is not protecting us all of them all they do as you grow older they recommend you put more money into the bond funds by the way, it is the bear funds is not performing well, ive said many times why cant we have other choices like short time or medium term bonds we have no choices but i have written to you many, many times but dont get no response im talking to a wall okay go when will you respond to me and lastly the hedge funds the hedge fund if youre clever enough youll choosing choose the best hedge fund and according to the studies of mit most of the hedge funds theyre very transparent the reporting is very flimsy. 30 seconds and their performance is terrible they only report the performance before they disbuild the profits so you got to be extremely careful with the reporting okay and finally i feel for the other Union Members thats their hard earned money i myself put into stable funds but people dont have the times or effort. Time. Thank you very much. Thank you for your comments any other members of the public members of the public who wish to speak i want to make a announcements the board of supervisors made a hearing request for the retirement board staff to make a report to the board of supervisors on our plan for fossil fuel deinvested in terms of the legislative process our staff will be working with the board of supervisors clerk of the board to get it this item heard most likely in thirty days and be noticed but i want you all to know that. So seeing there are no other members of the public that like to comment in general Public Comment at this point Public Comment is closed. And mr. Clerk can you call the north america. The next item is closed session an action item. Were going to go into closed session before we do that we have to take Public Comment on to whether or not we should go into closed session we want to open up for Public Comment at this point. Thank you commissioner cohen at the end of my testimony id like to categorical assurance from either the president or the Vice President it the missouri a a investment will not be discussed. It will not be discussed in the collection. As for the hedge fund the t l buildings it is the only way to protect whats taking showing so long and holding up, up the hedge funds the math declined to invest in the hedge funds during the Performance Review thank goodness for sfgovtv closed xaing in the video it was recorded on tape a lengthy heated argument for the concerning composition and the hedge funds review panel apparently increased from 5 numbers including the general consultants which the board i believe directed last january shouldnt be part of the panel it was stated quote vote for us the consultants that weve hired well fire the consultants and replace them unquote to which we have a 6 person panel to review this we already have an offer and acceptance we believe is highly confused ever qualified to participate we are in the process of a contract but if we have to waits until the september 12th meeting to find out if in the case we have the process over by months but i wouldnt be happy about the unlateral changes to composition of the 5 member review panel remarkably in response to a request ive placed it was provided written records in january from which included the documents from commissioner meiberger regarding the sf hedge Funds Investment which mr. 30 seconds. The gentleman never respond to at all question cant find another board in the city in which a commissioner is place a formal written request to the executive director and you shouldnt get that Performance Review. Time. Thank you. Any other members of the public that want to speak at this time. I just wanted to know from the hearing on following fuel investment is going to be public. Of course and will it be announced here. I suppose it can. Or in the before i begin. We can put to on the website so you can check the website in case of the meeting. Any other members of the public that wish to speak at this time so were going to go into closed session ladies and gentlemen, Public Comment is closed. Excuse me. inaudible . Im sorry i dont, im sorry i dont public that came and waited i apologize for having you wait for so mr. E many hours it was important work we were taking care of now im going to entertain a vote from f this body or id like to entertain a motion not to disclose what was discussed in closed session. Is there a motion . So moved. Public comment. Before the vote. Yes. Thank you for the reminder i want to take Public Comment on the motion not to disclose the closed session thank you very much Public Comment is closed. And lets take a roll call vote on the motion. Commissioner bridges commissioner cohen commissioner driscoll commissioner makras commissioner meiberger commissioner paskinjordan commissioner stansbury that item passes. Thank you very much mr. Clerk, call the next item i think it is item 5 arrest an action approval of the minutes for august meeting. May i have it a motion to accept those minutes. Well take Public Comment hold open. I will we can take Public Comment now since we made mr. Patrick wait. Move on the as with the retirement board minutes it doesnt accurately summarize the actual conversation held in july the executive secretary went too far in omitting from the august 12th minutes a number of things that occurred during the report in august clearly recorded on the sfgovtv closed expanding a heated argument regarding the hedge funds review panel apparently increased in 5 to 6 members including e right direction s general consultant that board directed last january with not be part of the panel mr. Her stayed quote if you hired a consultant if they well fire the consultant and replace them unquote unquote closed expanding recorded the conversation that there would be a consultant who was not e right direction s general consultant but the process appeared quite inflates and not do you want and continue to do you want them for the october meeting and direct the gentleman to update the minutes personality information that should be adequately summarized not verbatim minutes but you need to enclose a significant issue the offer will i summarized minutes need to stop key portions of key conversations have been omitted when they should do adequately smierdz and not completely eliminated from the minutes the conversation never occurred on video we have a duty to accurately report what triefrz in p. S. Meetings not verbatim but it should be exclusive. Any other members of the public that want to speak and add Public Comment to item 5 . All right. Im to have a motion to accept those minutes. Ill move adoption of the minutes. A change on item number 3 to the flying in bold id like those that be regular print like all the traditional are you think that the body wants to move towards highlighting certain comments in minutes that that is something that we discuss and vote on rather than letting it happen at will. Commissioner makras i believe the language our pointing out to the summary of Public Comment that was submitted by a member of the public so we want to reflect that summon the way it was submitted by the member of the public maybe this particular section is summarizing general Public Comment there are the summon by the court skeet of his comment and the photograph of written hundred and 50 written or less examine that includes as he submits it. Ill ask anybody that can was it tents e sent in it was it sent in i accept. F it was underlined and submitted in his written summation. So do you want to. Keep the minutes. Is there a second approval of the minutes. All right. All in favor, say i. I. Opposed . No all right. This motion passes unanimously the minutes are accepted. Mr. Clerk. Item 6 approval of the minutes july 8th retirement Board Meeting. All right. Lets take Public Comment on item 6 please. Id like to thank this body for going back to the draurgd in rising those minutes im still of the opinion they dont accurately reflect what commissioner stansbury said was it would be unprecedented make this investment in another City Department in the minutes still dont clearly say what commissioner stansbury said was it would be unprecedented like horse shoes it is a quote but still not accurate. Well, are there any other members of the public that want to speak Public Comment is closed. Commissioner stansbury. Im satisfied with the changes that are made to the minutes it is important the minutes are not a rip indicate verbatim but it was in the spirit of what was said the minutes accomplish thank you very much is there a motion . Id like to move with a correction on page 8 in red the last id like to do you want the minutes p as present on page with the following amendment on page 924, the red line please be advised the ringing of and use of cell phones, shaw covered 2 percent was the supplemented i r r so correct 5 slash two to 2. 2. Okay. All right. Is there a motion to accept the amended minutes . I think actually im sorry i want to make a suggestion on the minutes the inclusive secretary is spending a lot of time i think at the beginning or end a reference to the videotape to people can hear verbatim what was said and interpret whether or not those minutes accurately reflect what was said like a reference or footnote to another comments to help the members of the public who really want to see what was said or hear thats a suggestion i dont know if that is easy. Thank you for the suggestion. Okay. So a motion not seconded thank you. All in favor, say i. I. Of accepting opposed . Nay. The is have it it unanimously mr. Clerk, call please the north america please. Number 7 consent calendar which is an action item. All right. Public comment on this consent calendar. All right. Seeing no members of the public is here lets entertain a motion to accept the consent calendar. Ill move. Thank you very much. Second. Second. Moved and all in favor, say i. I. Opposed . Nay the is have it unanimously mr. Clerk that item passes. Reports opens is Retirement Fund for june 30th, 2015. Sir this is item number 8 you called id like to continue this item until next month. Want to take Public Comment. Okay. Thank you could you please call next item the matters and review. Id like to continue item number 9 and continue item 10 and continue item 11 call item 12. Item 12 an action to cancel and continue with the securities lending. inaudible . Thank you okay. Colleagues any discussion. Commissioner meiberger. The first question on page mr. Chief you reviewed this have you not. Yeah. A question on page 16 inquires regarding the rfp for the ; is that correct so cal societies will be involved in this request for proposal. Yes. Okay lets see i do have a question on custody for securities in china should we engage with the x t qualified for the investment in china i want to make sure that the candidates have experience with the custody of those actions is that provision included here . I know not all of the custodial banks handle custody of the unlisted shares in china i dont recall seeing questions in the rfp well have a conversation with cal will that satisfy our question. It is very important. We will make sure the questions are added. That was my concern the other issues regarding the securities lending issue securities lending issue i wanted to make sure that the custody bank has alp experience in this if we could ask the question if custody bank has frozen any executes i want that line of questioning included i didnt see anything directly if you recall that was a big deal when the cash account was frozen and had to take the security in kind i want to make sure that never happens again. Shall we word the question as follows okay. Thank you. Those are the main areas of inquiry i have okay sir. A tactical point i recommend we cancel the rfp and binge it back to the month thing why i believe that. This thing is two years ago old weve had a blackout for two years none of us can talk to the players for two years this commission has leeway and courtesy for whatever Due Diligence we do for something of this importance not getting into why anything takes two years we are at a disengaging e disadvantaged in a black auto period for two years we should cancel it and reach out to see when the world has and approve the rfp if not youre keeping the commission in the dark let me tell you why it is important it is important for me ive advocated many, many times about a Certain Program they had where they have frozen our accounts i believe weve lost money i believe that we have been harmed by them and i have a gag order on might have for two years this is a not the way rfps should run we should be able to put an rfp and thirty or 60 days have it really a gag order on us i want to release the gag order give us time to due our Due Diligence and let me say the hole rfp process here taking two years is something we should all just reflect and id like us to come back after sometime and figure out why the rfp this magnitude could have been done timely everybody responder we have it in the a black box is that the way we want to run our business we have another rfp out there what did hedge funds and once again we h have launched it two soon and people are respond and we have their rfps in the black box it is not fair were running a boycott i legitimate business president people to do business with us were messing up who thought biggest ones we have something is wrong i want us to have breathing room to look at without a blackout over us on a intentional basis. What youre asking for not in line with what staff is asking. Two stages staff recommend we cancel it and reissue i support that i want a lag times. San francisco do you have a lag time. One month next week meeting ill give the commission the opportunity to respond. Thats acceptable to staff. May be one quick question is thirty days enough. Yes. Laura. I heard him say that was enough. One more point not to belabor weve extended the contract for two years you know against everything we talk about we talk about every contract should be out every 5 years everyone should have a shot for our business and renew our contracts and renew our way of. Org weve extended two singular years for free their contract is probably a decade old you know in the private sight everybody is saying something is one thing wrong. We got it we got it. Did you get our question answered. I thought ill suggest you could prove cancelation and approve the issuance in thirty days no to bring it back in thirty days. Commissioner bridges. One of the questions when i came on the board we were talking about rfps i too think this is a longterm and school it and also i think there is an area we should focus on most custodials dont in every country all over the world in the u. S some in asia and realistic and this talks about the process for the custodials and time to know more i like the idea of canceling and talking about the areas that are specifically im not going into the other market like meagerly markets not an adjust to the rfp this is very important. Mr. Pilpal. I believe the way this is written the motion can be stated for it to be time certain so commissioner perhaps thats what our attorney was advising us thats one, two on the last technical does the thing i doefrdz recently in another conference we are depending on Tax Compliance basically on our custodials how good is our custodian with the tax issues were investing in the hundred plus countries let alone e b ti because of private equity and lets make sure they have the capacity and they can tells you whether or not they can and cannot do that. The last thing i want to say it is an asset liability when youre looking at the aspect we should look at it paerp in the investment the risk you concur is what you get what happens with a lot of the results they still get it in an passage function you make it on a daily basis this is a why this should be that way. Just one quick suggestion could you red line the changes particularly for the foreign obscurities and the securities lentz. Not be brought back in a red line but able to provide you the red line before we post it but not brought back for a fact the commissioner will say released october 1st. Im not inclined to do it in the future i think were giving ourselves a little bit of time to do Due Diligence we dont prejudice the process but value what we bring back by what we learn. Can you clarify. Say that one more time. I recommend we get the rfp and that we bring that back at the next regularly scheduled meeting well all have a red line two commissioners that are questions they want to add to the package. I think i understand so im going to take Public Comment and going to look to you to make a motion. I have a question. Sure. I cannot imagine that many customs that can do that the reason why you did it if they detailed the rfp you didnt find that to be an issue because their how many are there that can do this on one hand. Four to five. How many responses to the rfp. Global. When we received the responses on the last rfp divided do it in the gloeshlt custody plus securities lentz and those only on executes lending only 4 responses on the global side. Not many people that are capable i dont think there is a problem to delay it a month not a lot of differences so i designate to staff a why was it detailed for two years. That was part of the closed session shove been i take full responsibility it was detailed it was my decision to make it a lower priorities based on the other rfps and based on the organization. I hope the tieback was not part of the closed session or what was it not. I didnt bring that up specifically i want an answer. The board has voted to not disclose any of the closed session so i think we shouldnt discuss. Lets take Public Comment, Public Comment is open for item 12 an action item seeing no comment Public Comment is closed. At this time i ask we school it and bring an revised rfp to the next scheduled Board Meeting. Is there a second seconded by all in favor, say i. I. Opposed . Nay im sure i mean, he i laughter the is have it unanimously mr. Clerk, please bring the next item. Item 13. Action item recommendations up to one million Real Estate Partners four mr. Coker. Very good norman. Welcome back our private team and well walk through this as quickly as we can. Well try to be brief in our comments this next investment for services in Real Estate Partners for fosters for the capital Martin Luther king one of the leeds investors in special Investments Global warming they have been investing in real estate depressed investments in special situations for over two decades and they have done it quite wells as you may know our historical declassified is 3 percent over the last 3 years targeting higher private Real Estate Strategies and have xufdz in excess of 12 percent pates our take the for the opportuneic targeting 12 to 15 percent in this cutters environmentalist as they continue to come bless with the raising trick or treaters on the horizon to say challenging to achieve returns at the higher rage weve seen under written from the gateway city and counties cities that be beginning to come down and difficult to achieve the 16 percent type of return were seeing that in the meagerly market at risk is, in fact, one the few strategies weve seen Going Forward that is still targeting returns at the higher ends of the rage in excess of 15 percent the reason theyre focused on depressed real estate assess their purchasing depressed real estate loans and other equities that discounts the Intrinsic Value of the assets were particularly excited about the positioning and activity and expertise in we were to pursue the nonrestricted performing loan opportunities in europe which as many of you may know is several years behind the u. S. In terms of the Financial Institutions over there hung on to those portfolios and their own brand initiated by the d c p those proposals are given to be unloeptd loaded this is accelerating actually there is quite a bit of Opportunities Service is one of the largest investors and it is well, to pursue those activities. To arts comments we see is services Diego Sanchez this is a competent this is the correct approach given the opportunities that the ervin pan nonperformance loans and the investment in the u. S. We believe their deem value approach to correct the achieving of the returns were seeking one point the service looks at the down privilege in 2004 was a difficult time they finished it during the height in 2008, and as you can see they have a respectable 10 percent eir return this goes to showing you show you the Downside Risk overall for those reasons for the Market Opportunities for where their taerth in theyre overall inhabits we recommend a recommendation up to hundred Million Dollars to fund for. Quickly to build on to art and peters very strong risk controls a particular conservatism leverage and fund two has American People leverage of below 50 percent much lower than the market will allow and in addition their patient investors theyve raised 3 prior funds over the past 13 years and theyre putting their capital in the math and that is in their investment track record. One final point were recommending 50 million but seeking the boards approval up to one hundred Million Dollars and move forward to the 50 million by the partnership but welling we reserve the right to increase that amount if were able to negotiate concessions. Any others discussion lets take Public Comment thank you thoikz upper other business before this committee . Seeing none, Public Comment is closed. At this time is there a motion for this item. I move we adapt staffs recommendation and thank you very much is there a second to adopt that. There is a motion and a second mr. Clerk could you please actually mr. Clerk well do it by all in favor, say i. I. Opposed . Nay the is have it thank you. Thank you. Mr. Clerk, please call next item 16. Just going to step out of order. Number 16 appointments to the mayors. I want to pull this out ive made a recommendation of Committee Assignment and brought to my attention that commissioner stansbury is now interested in serving as chair the Governance Committee. Thats right. Yes. I dont know if you want to have any words if not well go to Public Comment no that is okay. Perfect Public Comment on Committee Assignments the Governance Committee all right. Seeing none, Public Comment is closed. Is there a motion for this item well move the item for the chair. Thank you the commission for the courtesy of spending this i was recommend to chair commissioner stansbury and i spoke and he expressed an interest im happy to be grantdz by the president s im not necessarily per skwautdz by the argument at the Previous Commission meeting i thought the arguments would make me say no, its the times vote and you recent the right to vote yes or no but it undermines the president s a little bit sorry thats how i feel you raised the argument that theres some form of seniority and you should rise up to the seats i think in principle that applies but in reality no, it excludes people not being able to take a leadership role not giving you unifying vote for chair people that did not sits on the commission on the committee so you were using argument with no legs but in the global picture if someone has a particular interest im happy to make it work for us so ill move the item with commissioner stansbury being the chair. Thank you very much a second. Second. Thank you all right. All right. All in favor, say i. I. Opposed . Nay the motion passes unanimously congratulations mr. Commissioner stansbury youre the chair of the Governance Committee. I thought we took Public Comment. She was asking for nay votes my apologies well have four or five hour meetings were delubrication mr. Clerk lets go back to item number 14 please call it. In the decision the chief officers appointed mr. Coming backer. I want to accept our report as submitted and thank you and well take Public Comment and see if there is any discussion on the board is that acceptable. Absolutely. Thank you. Any members of the public that want to comment on item number 14 please come forward. Colleagues, any comments. I want to mention the total return for the fiscal year to date is mens here which is sorry it is on the other report your 3. 9 was the return it is important we mention. Thank you for calling that to your attention commissioner cohen the ccii ccii c i o the procedures out of closed session so can we have him summarize those. I can in 30 seconds item 630 males from a policy thats what we got and requested this in may if closed in august regarding at t la 25 million and we received that that recommendation was made to the board in june and closed again last month and e n right direction we requested 10 million and got it it closed 9 days after the request. Thank you very much i appreciate that. All right. Is there a motion to accept that representation. Discussion. Oh, excuse me a discussion item since no Public Comment well move on to the north america. The prefrdz compensation report. Thank you if you dont mind all to accept the report as submitted thank you is there anyone from the public who wishes to comment seeing none, Public Comment is closed colleagues is there any that he decision on the managers report all right. Seeing none, is there a motion to accept oh, this is an action item please call 17. 17 discussion the closing arguments. Mr. Jewish id like to accept our report as submitted is there anyone from the public who wishes to comment arrest Public Comment is closed. Is closed only item 17 colleagues, any discussion on the closing arguments as administrative update all right. Looks like there is no discussion needed id like to point out because Maria Newport has over a thirty year career shes announced they are retirement effective this year and try to get her here to make a final report to the boards on the Strategic Plan but i wanted to make sure i can acknowledge her and bring accumulation back to the board which shes retired. Thank you for that accomplishment so this is a discussion item mr. Clerk, call item 18. 18 discussion item the retirement board member good of the order. Id like to request if staff is willing to do in spite of Something Like this would staff be willing to send a letter to the peers on deferred coming maybe pick the 25 that are sized or around our size and ask them if their recently memory and history on the insurance policy components of their operation if they have a claim and kashdz in on the claim maybe a Million Dollars and above the shufz dont talk about the option i thought that type of action and direction will be helpful to the committee to know if anybody has cashed in on an insurance policy. Just for pointed of classification youre talking about the wraper. Right you can pick the number i reached out to a few shufz i cant find anybody thats patdz it is private and they cant release this information our fellow agencies we Exchange Information all the time it helps us were being 38 base points. It is 35 percent the return to the members thats my first request the second request 25 is i have an outstanding request on fossil fuel the worst offenders when bath will anticipate us getting the list of offenders. That is a discussion that i had mentioned to you brought to the committee which it was and were going to bring it back to the committee different approaches how to define worst offenders and working that through the controller board. Okay. Quick thats it and any other. I have a couple of one thing i brought up was the palm tree people called and i called myself we you go through act automatic active voice and get a voicemail at of minutes i id like to see i thought we talked about that lets agendize that and talk about that it is a real issue i get emails every week from partners saying they cant get through to someone i mentioned to the fact that we dont really hear about people with the experiences but hear from people that had a lens positive experience and some of the complaints are pretty much the same across the board frankly and i think there is some sort of an issue internally we need to rectify someone calls and we give them Bad Information the second thing they dont get a timely response for 3 they say actually, i think ross are the mainly the two issues they get Bad Information or not a this responded this is something that should be considered a Mission Statement that lace out the top couple priorities i envision three or four believability points on every wall of every single employee that deals with disbursements like i will not give out Bad Information i will he will a parent i will get the answer two ill responds within 48 hours ill tell him i dont have an answer and provide a timeline recently two people contacted me those are people i know they have a lens positive experience trying to schedule an appointment given Bad Information or routed to the wrong person so id like to also see maybe you guys delivering this Mission Statement internally and come back and talk to us whether or not you think that is predicament that is an ongoing issue that comes up all the time and i think that will work those are the two main things id like to see us agendize the phone tree and talk about if in terms of people shouldnt be calling with a 6 minute responses and end up in a voicemail and people call them back and give them Bad Information but make that the best possible experience. We actually have a new Strategy Initiative weeping well be presenting in the plan to replace the phone system and upgrade it and change the whole experience the first one was put in place before i started working here 16 years ago and it was focused on delivering information and that explains why you sit through 3 minutes of announcements of trying to hopefully answer your questions so youll hang up well bring that back as port of the Strategic Plan im sorry to hear the two folks you talked to have bad experience i agree the vast majority of the work that the staff does is accurate. Timely but well take our suggestions and bring back as part of a Training Program a new focus to the board for their consideration for funding in the upcoming budgeting budget well make sure of the staff to provide timely and accurate information. I think this something that the fundamental to the culture and needs to be in the face heres the top two goals and i appreciate your suggestion. Well agendize it and deal with the agenda okay so is there any other things down on this ends. Commissioner meiberger. I want to echo commissioner stansbury point and address another concern by a member of the public member of the public pacific shay i listened to the case to post agenda Background Materials on line with the members of the committee as other bodies do i want to see that as agendas oftentimes the members of the public members dont have the items electronically it would, nice to have them ahead of time i received an email from an customer that didnt know did not get the agenda and didnt know the material didnt come to agendize to have those materials posted online to the members have access to those in advance that is a constructive thing for our customers i included factors articles i read in public perils number one was the from pensions and investment the Institutional Investors the new york face managers that was hit by 2. 4 million as we go into hedge funds one of the issues to consider it the redemptions by the other partners in the hedge funds create angle event selling assets we should be aware of the tops the other item in the board of materials had to do with the market turmoil as many of you may know the mashltsd with volatile the last month i excluded an article by the wall street journal included the metal down hedge funds managers like to promise the Investors Protection and the recent stock swing many are caught off gaudy see certainly the volatile events in the past shows the sharp ones raymond from bridge water was mentioning reinforcing are the best of the best we had negative returns we should bear in mind the premise for hedge funds to provides protection and recent experience has not shown that to be so thaels. I have one item to request our meagerly Managers Program he havent heard from our partners in a while id like to schedule an judgment to where we are and what that Program Looks Like work with staff on framing exactly what im looking to get out of this conversation thank you. Anything else. May i ask we talked about getting things agendize when. Thats a good question certainly i believe my request can be agendize decided in the next thirty days i imagine your item you suggested. I know you mentioned the strategy i can plan next meeting. We intend. Thats where you said pardon me. Next meeting. I dont understand. This meekly and you said ms. Newport will be here and you mentioned the Strategic Planning and right. What about the value statements or Mission Statement. I believe thats little purview of the executive director to dorm how to roll out the quality shaurps Program Within the department we would like to bring forward to you if, in fact, it will require Additional Resources staff or a consultant well bring that forward to the board and again, we appreciate and we take serious is circumstances that have been subscribed in their interaction that is unacceptable level of service for us ill respectfully say i would not say that conforms in thirty days until we discuss it internally how to precedes well definitely followup with the board on what we decided. Whats an predicament time. I dont know well, i dont know that open ended without any sort of goal im talking about one sheets of paper with simple statements im sure a lot of organizations hire consultant im pretty much we know you guys can sit down and put our Heads Together to think about your expectation i dont think that three or four months is a reasonable amount of time. We have no staff here on purpose provided false information so putting the sign in front do not provide false information. Excepts they dont knows so answer and question they dont know. Training and having be, of course, a training so guarantee they know how to find or provide information and that is from an original prospective the most effective to approach this make sure there is train and there is certification people learn from the training and basically teach people you dont work at nord stormwater the exercise is not always right but get what can to them. What im talking about not training but a higher level Mission Statement what is important to us as an organization so that staff deals with participants i mean do we have guidelines. Our mission says and provides correct answers and take correct benefits to the folks that are entitled. Whats is expectation to return a phone call to a participant when they call in terms of amount of time is it written down anywhere. No. Is it in the cultural to return a phone call within twentyfour hours or 48 hours those are the simmer things this is has been going on for a couple of months i am you guys to think that this and ill bring it up at the next Board Meeting it is in a timeframe that will be good enough im push again. Understood. Mr. Clerk, please call 19 excuse me. This area of Service Requires the communications one i noticed a lot of improvements omission the or on the website people are accumulating people are able to schedule appointments on line people still refuse to use the computer they use the telephone we dont know about getting wrong answers how significant but its been going on for sometime when you come in for the Strategic Plan a couple of answers does a phone system exist is there money in the budget if there is make 50 calls to the peers around the country is it done effectively plan for the Service Calls this was how well make if work thats all the issues of training and combho is going to do it if service that important what can and cannot do and figuring out the priorities. Followup what should commissioner stansbury talk to the members when we get those complaints. Ill ask him refer them to me ill track down the source of misinformation ill ill be happy to this board should knows the public should knows if youre unable to schedule an appointment you give my office and call im making sure you get an appointment and if theres false information or you have questions about some of the information id like to as the executive director know what information or at least what you understood my staff to say because it is a twoway process in communication im not saying that Little People who spoke to commissioner stansbury were macro anything up because i happen to know the circumstances of one of them and there was an incorrect answer given in one the cases but there is always some questions what the one side heard my office is here i am talking about to deal with those i dont deal with those on the regular basis but orange countyly. Youll respond. Please refer those to me. Commissioner stansbury deserves a response he was tilly chang talking about long to get get a response those are two or three Business Days you cant say that. Well, some response is what were elected members commissioner stansbury and i and others at the table we air the voices of the members we want to have the assurance the responses are taking care of thats the nature. You need to investigate it and take time to get them the right answer that takes a few days he was in recipe. Thats exactly what im asking. Four or five days. The other item the good of the order for the agenda when may we expect this be to clauntd. Well discuss the agenda items and coordinate it that way. Okay. Fair enough. Thank you. Oh, im sorry im so sorry please. On the not just trying to come up with a positive point but in the past the retirements seminars that the system whether conduct for members were cancelled because not enough people i noticed the next one is soldout to me in approving the education well schedule more im trying to show you the service side is working well and other things well try to improve. Public comment anyone else want to weigh in okay Public Comment is closed. Item 19. 19 discussion item for the board member reports and comments. Brief reports. Start with or we can take the reports as submit. Hold on commissioner driscoll would you like to say anything. Ive put in some of the slides. I think the other folks are encountering those are issues well face but in terms of an investment structure in the infrastructure area people have a lot of experience with it picture very interesting examine by someone that is very experienced her company this is the United States it is difficult to do the infrastructure well, weve been could go infrastructure in a different way for a long time one of the problems in the Capital Market most of the infrastructure is done by governments whether city, county, are state the fact theyre able to borrow money below market rate effects the projects to be done thats something we should be aware of going into infrastructure one gentleman why he said it was a very experienced gentleman and very educated he called the problems in china but he said most and said 90 percent the Infrastructure Projects are 10 percent over cost and always behind schedule so what this impacts the rates of return people will expect to achieve we had a nice presentation from cal steers to be in that area what youre talking about paying a high fee on committed capital with a group those are just warnings but thing we have to learn to expect and a lot of points covered positive experience being working in the gloernl experience for people experiencing incredible successes in raufr who is twelfth but who is right one the things stated by one the consultant and by staff and in those areas of liability it liquidity to say very, very important whom we invest with who is our general partner some are good but others are not safe getting money in and out of our coffer a long way of saying that was very nicely done. Thank you for representing us. Commissioner meiberger im good. Thank you very much Public Comment on item 19. All right. Seeing none, Public Comment is closed at this time thank you very much this last item was a discussion item mr. Clerk whats next on this agenda. Thats it. Thank you very much this meeting is adjourned everyone ill start by introducing our guest honorable mayor ed lee clapping. honorable supervisor jane kim clapping honorable Supervisor Scott Wiener clapping. and honorable Chinese Deputy consulate general ram clapping. i also want to thank the intend to that pavrpt in the Ribbon Cutting today clapping i dont want to thank each you, you youre a important member of the communities that means a lot to share this special occasion with us i have to give a shout out this is simple natural cast to them hello, everybody clapping. and a big thank you to everybody that came together within dolby labs and over partners outside of dubiously to who came together to make that a reality thank you so much clapping. this is a special day for us i may know that could

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