General Public Comment at this meeting and there will be a opportunity to comment on each discussion or action item on the agenda. Each comment is limited to two minutes. Public comment will be taken both in person and remotely by call in. For each item the board will take Public Comment first for those in person and from people attendeding the meeting remotely. Comments are opportunities to speak during the Public Comment period are available via phone by calling 4156550001 access code, 26638831727 then and again. When connected you hear the meeting discussions, but will be muted and in listening mode only. When your item of interest comes up, press star 3 to be added a the speaker line. Call from a quite location, speak clearly and slowly and turn down your tv radio or computer. City policy along with federal, state and local law prohibits discriminatory conduct and will not be tolerated. Public comment is permitted on matters within the jurisdiction of the meeting body and thank you for joining us. Thank you. Next item, please. Item 3, general Public Comment. Reminder Public Comment is limited to two minutes. I have no speaker cards. We have one Public Comment. Go ahead and step up to the podium. [unable to hear speaker] im sure you can hear me. Is the mic on . Yes. Okay. Now, i just am sorry and missed the Investment Committee meetings. Sounds like you are doing Due Diligence looking at china portfolio and stuff and that would be interesting to see so ill hit replay. I see some performance and in real difficult times and an election year. You guys seem to continue to perform at a very high level, so i thank you for that. Other then that, i dont have anything to say, but congratulations for doing your good job. Thank you. Thank you. Thank you for your comments. Are there any other inperson comments . Seeing none, moderator, do we have any call ers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Call the next item, please. Minutes of april 10, 2024 retirement Board Meeting. Adopt the minutes. Thank you. Second. Public comment, please. Do we have inperson Public Comment on this item . Seeing none, moderator, are there any callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Been moved and seconded. All in favor say aye. Aye. Opposed, nay. Motion passes. Thank you. Next item. Item 5, action item consent calendar. Move to approve the consent calendar. Second. Thank you. Public comment, please. Are there inperson Public Comment on this item . Seeing none, moderator, any callers on the line . Madam secretary, there are no callers on the line. Thank you. Public comment is now closed. Moved and seconded. All in favor say aye. Aye. Those opposed . Motion passes. Before we call the next item, let me just thank Vice President thomas and staff on organizing a great Investment Committee report meeting and i think as i said in the meeting, this isthat was a great example of what the Investment Committee can do. With that, well move to thecall item 6. Thank you. Item 6, action item. Actuarial funding methods policy. Good morning commissioners. This is the housekeeping item on july 22, the retirement board approved a 10 year amortization for proposition a passed by the voter november 22, which it did and we are codifying that by placing the approval within the body of the funding policy. Housekeeping. And if i may add, probably over the next several Board Meetings there might be board policies that come before you. You are very familiar the process looking at all terms of reference and governance policy. We have gotten through that and moving to other policies, so they will come before you. This is a example that, which is relatively straight forward since you had approved this approach and we are documenting it now. This is a action item. Motion or question . Quick question. Matching what we expect to be the Life Expectancy of the group that benefit applies to . It was short enough that we were happy with that as a funding policy for this proposition. Thank you. I move we adopt the modified policy as recommended. Is there time for comment after the second, or can ido i need to comment prior . Make the comment now. I appreciate commissioner driscoll bringing that up. While i understand that it was a acceptable amortization process, i feel that it is good we are having discussion about that and adhering to best practices in future analysis should still be a priority. I think that i feel the board is generally our preference and goal looking at best practice when doing this sort of analysis and understand at the time it was deemed acceptable and appreciate the candor. It didnt meet the highest tier, but a acceptable tier but i want to prioritize looking at the model for funding and analysis around that highest tier of best practice when we are looking at any sort of expense that is incurred. Thank you, i agree. So noted. Seconded. Madam secretary, call for Public Comment, please. Thank you. Do we have inperson Public Comment on this item . Seeing none, moderator, are there any callers on the line . Madam secretary, there are no callers on the line. Thank you. Hearing no calls, Public Comment is now closed. Okay. Been moved and seconded and with a noted comment. All in favor say aye. Aye. Those opposed . Next item, please. Item 7, discussion item. Review phase 1 partial investment delegation and discuss phase 2. Commissioners, i can hardly believe it was all most a year ago that i and Investment Team were hereprinting to you about partial investment delegation. At that time this board approved phase 1 of partial investment delegation, the board requested that we calendar in a years time a vote on implementing phase 2. So, to adhere to the board request, we are here today to discuss and this is a discussion only item, the status that delegation and what i will do is walk through the rational, remind all the Board Members the rational that we considered in the partial investment delegation. Well discuss the implementation of phase 1. Weal review the terms of phase 2, and importantly, allow you all to ask questions about that implementation or about consideration for phase 2. Depending on the out fp am of the conversation today, we would follow a similar path to what we did last year, and then codify phase 2 with a edit to the investment policy statement,b which we would bring before the board. So, i reiterate again, this is a opportunity to discuss what we have done to date and address any questions that you have. Lets start again with the rational. Many of you are familiar with this, but think it is important to levelset. What was the rational for providing partial investment delegation . First, it is consistent with fiduciary duty and standards. So, [indiscernible] at length on many occasions talk about fiduciary duty and talk about the notion delegating to subject Matter Experts and having a board that continues and importantly continues to monitor and oversee that delegation. Another benefit of partial delegation is effective use of boards time. Time for discussing impactful investment and non investment topics that effect the entire organization, so things like asset allegation, risk discussion and Administration Topics and how we administer benefits. The third rational and efficient use of investment professionals time. The team has always and will continue regardless of investment delegation focus on Due Diligence, but having flexibility with their time allows them to continue on that path to do regular manager monitoring, to have flexibility to travel to do diligence to attend apac and agm in the past they were here to present to the board. Fourth, in terms of rational, best practice among many of our peers. Again, as you recall we provided a lot of data last year what peer plans are doing. Conducted a survey of peers and complemented with cambridge work on endowment. I highlight a point we addressed last year, which is 83 percent of peer plans in the survey did have partial investment delegation. Next, timeliness of Decision Making. We had monthly Board Meetings. Of course we can call special Board Meetings and know we have a great board willing to step in short notice should we need it, but with partial delegation, we meet regularly every two weeks to address Investment Options and it is a more streamline process to call ad hoc meetings should we need to. Ill get into more of the benefits that as we go through the presentation. And then finally, it is important to note that the board already delegates a lot of impactful decisions to staff. We have decisions around Asset Allocation, you set the target but we make decisions that work around that target. We make decisions about liquidity within the guidelines you set, and we make decisions on Risk Management, again, within the guidelines you set. When we spent probably a hour or two last time really digging into all those, this time i again want to level set and remind you why you hadwhat we had discussed and the rational behind you granting phase one of partial investment delegation. The other thing we talked a lot about last year was the enhanced internal processes we put into place to insure there was a robust process. Both with the internal team and with external controls. Thank you darlene for putting up the slides. What we have before you on slide 6 is a visual reminder and i wont go through all this, of our process and the fact at every stage of the process, we have eyes on the Investment Opportunity outside of the direct team working on it and both internal and external oversight of the decision from when we start, when we determine the search criteria and whauts we with are looking to operational and investment dill igence, making the decision to invest and when we contract. With those enhanced processes in place, again, the board approves phase 1. As reminder, phase 1 is staffed under my direction. The opportunity to reup and allocate capitals with managers previously approved by the board and up to a certain percentage of assets and that level is different by each asset class. Strategies above those limits or new managers or opportunities we continue to bring before the board over the last year. Phase 2, would delegate Funding Strategies with new managers, still subject to all those limits such that any big investment that came above one of those preset limits would again, continue to compl before the board. Thats review of why we implemented phase 1 and what phase 1 is. Now i like to turn to slide 13 and well talk about the actual implementation over the year. Certainly, please feel free to jump in and ask questions as we go along. When we talk last year, we not only in terms of rational but specific benefits. Potential benefits of partial investment delegation. That is what we have here. It is exactly the words we put out a year ago and what i have on page 13. I checkmarked across all these because i think we have realized the benefits of partial investment delegation. So, we have taken the approach, given the years time to allow the board to see how it was working, how we were delivering on the required reporting and get comfortable with the process. You are a judge whether you are comfortable with the process, but i think that time and over the year has given perspective and a sense of what that process is. The board continued to retain approval over authority over larger investments. During this year we didnt actually have investments that met that threshold, in part because we take a diversified approach to inest investing and generally dont make those large investments. Should we though, of course we would come to the board. You also are very familiar we accomplished with your over sight of lot of decisions over the last year. The Strategic Asset allocation is a process that takes place every 3 years. We spent a significant amount of time doing that among other topics like Risk Management. Those are really important decisions that drive the return and risk of this portfolio and having the time to dedicate to that and dig into those topics i think it is beneficial and productive. Again, it continues to be consistent with fiduciary prudence. We had the opportunity to make Investment Decisions in a timely manner. Again, with a monthly cycle of Board Meetings, it wasnt necessarily a issue. We do get a little more flexibility meeting as a internal team twice a month to review investment opportunities. It also to be honest gives sometimes more time between the approval of the investment and the Contract Period for the team to be able to follow up on questions that our team may have on diligence and push on some of the contracting terms. I absolutely believe that partial investment delegation increases our probability of access to deals, and the ability to recruit top talent. We have a number of searches underway for apm and other positions on our Investment Team. We are excited about that, and i think it is helpful when we show we are following best practices in terms how we approach investing and giving some of the partial investment delegation to the cio and the Investment Team. Finally, and well provide numbers to support this, partial investment delegation really has allowed staff additional time to value add activities that are about construction, about risk, about reunderwriting the thesis how we invest, similar what we discussed earlier on china. While we continue to do that deep thorough robust diligence on each individual Investment Opportunity, we are also able to take a step back and work on these important projects which ill go into more detail. So, turns to what we committed to delivering to the board on the next slide, slide 14, a lot of this was related to the boards responsibility to continue to monitor and oversee. Here i outlined exactly what we committed to do and put check marks against what we did. We did at each Board Meeting reported any strategies that were terminated and strategies where the contract was signed and deal funded. We did not have any cases where we added capital beyond what the board had approved under the period prior to investment delegation, but we obviously would have recorded that 14d that have been the case. We made staff recommendations and consultant memos available. I know some Board Members asked to see those and they have reviewed those. We also had committed that if we made any investment against the size constraints that i alluded to earlier, that we would go through the board. Again, there were no deals that met that criteria. We also committed to the board that we would have additional processes in place during the period of phase 1, so we have the concurance memo highlighting the suitability of the investment from the consultant. We implemented a process leveraging technology where we have a work flow essentially to insure that every step of the process has been followed. That visual i showed earlier of the controls and steps, all the steps are recorded in a system and software we use and i insure that process has been followed and all the points reviewed before i approve any investment. We also committed in the case there was disagreement between the Portfolio Management group who reviewed each investment and myself, that i supplement the final decision in a memo. What i want to convey to the board here is that, the pmg and i are independent thinkers and everybody comes at a different angle. I think somecertain risks differently, but there is no case this year where the pmg reached a conclusion that was different then mine, so again, no memos there, but donti dont want you to think because there was a rubber stamp process. There was a very robust dialogue and debate with each and every investment. Finally, again, we enhanced documentation process and are using Data Management software to better monitor what managers we are speaking to, the nature of those conversation, what we are learning in those discussions and tying it back to our Investment Decision process and the ultimate recommendation process. So, that is qual itatively what we did. I thought it might be helpful for the board to get this translated into numbers to give a sense of exactly what we have done. Slide 15 you can see that over thesince delegation, so just under a year, via partial investment delegation, weve approved 19 strategies for about a billion dollars in commitments. The board approved at about 315 million, so certainly a busy year, and thats again, 19 strategies that we vetted internally in a thoroughly robust process we brought before the board. Turning to the next slide, slide 16, this goes back to my comment that even with partial investment delegation, which is one part of the investment process and one part of the board rule, the board is very active making important decisions on topics that are critical to the success of this fund. What i try today do here is highlight looking at the calendar sheets for the last 11 months. The number