we have seen an increase from the last port where there was one -- there is three new ones. all areas that have been put forward in the past are standard practice in our proxy voting policy is to vote against a proposal should be data indicate management is currently providing sufficient information to shareholders so survey to make an informed decision in those areas. so you will note in some cases will be a four vote for let us say greenhouse gases on one company and then maybe meagerly thereafter there may be an against boat for greenhouse gases in a different company. it has to primarily with whether or not the general consensus that shareholders are receiving sufficient information to make an informed decision. >> thank you. any discussion on this item?

>> masker question. >> please >> forgive me if i miss this. whenever the official totals in appendix a, summer are highlighted and some are not. is there any rational thought i would >> the highlight ones are the new ones. picking since last month. >> do we know which ones have passed or have not passed? >> i get to see one of these past door should be for both offended to be in a 20 to 30% range in the prior season. the ones that have looked at, where the they released the proxy results have been in that same range but i can include that in next month's report back to ship something to think about in -- it is nice to know if things pastor do not pastor >> i will add it. >> i would ask a question that

in your write up you do not mention who is bringing these proposals to the company. [inaudible] could you identify the future if indeed it is public pension funds such as a consortium of --. i would like to know who is bringing the proposals to the board. to have that information once you have cited terms of who was the source for presenting these proposals to the companies board? >> it would be anecdotal in terms of the organizations that are most frequently have seen make proposals but there is an organization referred to as --. they have consistently had greenhouse gas proposals. there is another company called arjuna, that makes similar proposals back i will get you a list back to ship tragically the public pension funds back

to see with their bringing that is level ii of our engagement. >> i will get that. >> any other questions? seeing none, let us go to public comment that a good cardio from germany pollock. representing super supervisor avalos mack welcome back jeremy. >> good afternoon commission recognizes the president cohen vice president my burger would take them in following up on last month's board we pointed out he supports to getting our server virtual activator seen proxy vote after the votes of artie happened outlook site that is again what happened here today in this report. little troubled by the timing of the report where if you look at -- back at restaurants may 14 meeting your airport on shareholder proposals updated march 31 and now you look at reports of a new see chevron proposals which were published a proxy published on april 1 and the exxon proposal were published on april 7. in both those meetings happen on may 27

and so, essentially by phone iss record issued voted against several of these proposals before you had a chance to review them. the three proposals that were recommended with no votes were all introduced by members of the imc are investor board on climate risk which you stress your interest in joining, and so i would urge you to i think you mentioned last month commissioner paskin-jordan and cohen mentioned they want to get more engaged with iss it is great to see more engagement with imc are becoming active on these. would also like to legal with a -- this is a review of the chevron and exxon shareholder meetings that happen are a series part of the [inaudible] and the topic is selfish map the exxon jealous

witness, james partially disturbing to make it includes report about the one of the proposals that iss recommended opposing and response was cheryl proposal to reject capital with costly bicarbonate extraction projects and towards higher investment dividends chevron ceo john watson pointed was committee 27 consecutive years providing dividends that goes out of it negative cash flows and position to make a note even at $70 para all would not allow the company to stabilize its cash flows. that was based on report by oppenheimer analyst who found chevron's cash flows going negative and really it seems like a strong argument for taking this money away that chevron wants to put into riskier high-cost wheel that is not sustainable, but that is tied to executive compensation to instead put it back into the dividends which come back to his shareholders. please i hope you look a little closer at these proposals and again, to commissioner stansberry's question about the rate of

passage is very low. i think these proposals were posed were under 10% support general across the boards and other percent and so i think the possibility for affecting change have level i is probably is not [inaudible] going over this case-by-case >> 30 seconds >> we encourage you to level ii engagement as well as moving forward on addendum metrics for the worst of the worst two beggars and follow three for the also feel companies and lastly this report mentions that exxon and chevron have announced not be joining the six european oil majors going to the un climate to talk about the price on carbon and exxon chevron these are two largest holdings in fossil fuels like the look of examples of the worst divorce it seems like a good place to start. thank you dear don >> thank you for your comments. >> exxon comments. >> please come up.

>>-moderate young sru capital stewardship. actually an active participant in the investor network on climate risk. the information on all these resolutions is available to you yesterday. well before they come up and certainly well before you are reporting on resolutions that have long since been voted on. i think that is an important point. the sponsors of these resolutions run the gamut from the two that were mentioned, which is a rigid capital actually, to summon the public pension plans. there are also votes being cast related to climate around around proxy access. i do not know the scope of what resolutions you are looking at. greenhouse gas emissions, disclosure is kind of old school resolution.

carbon asset reserves -- there are number of resolutions that relate directly to this area and would again encourage you to be to become knowledgeable as it is your duty with regard to proxy voting at all these companies and to i think level i assess your proxy voting guidelines to understand whether you are actually as a board on a policy level with standard iss policy or whether you can need to carve your own path at that basic level i a proxy voting duty, which is basic fiduciary duty and for you not to know what you are voting on is potentially a violation of that duty, given that you voted especially to put interests into this issue. the last thing i will say is that getting a 25 or a 30% vote on one of these resolutions as the most is considered that craig is management often controls within 50% of the shares. which usually also signals

that the companies going to sit down and figure out what the proponents how to address their issues. while i agree that a higher form of engagement gets a higher level of results, that simply voting also does matter. a 25% boat most shovelers are considered good. made some progress. losing is winning., newspeak sort of thing but shares are actually controlled by large block spirit that is all i got >> i the question. could you maybe offer some suggestions on how we can be a little bit more ahead of the game as opposed to being behind and being informed about about afterwards? as i recall last month we discussed this as well. would like to be a bit more knowledgeable for boats go down. give any

suggestions? >> right. we are trying to arrange isis out there that were in the midst of the proxy voting season so they are exceptionally busy. also the dates that are listed in appendix a, which is one the date the proxy becomes publicly available, the second date of assuming the actual meeting or voting date, there is a flag from implants on the proxy becomes available and receive opinions and information from iss, so the fact that the proxy becomes available does not necessarily translate into us having sufficient information to have a voting decision before the next board meeting. so i want to make that point clear. but we are working to have iss has out on an informational session how we may change our proxy voting policies in these areas. we

can certainly include proxies there were aware that iss is not completed the analysis of the lease to notify you and say that the iss recommendation under our policy would be pending. then, be able to update you at the time of the board meeting if in fact iss had come up with a letter policy stated their voting decision would be. so, that would be one way to get ahead of it. we would notify you of everything were aware of. if in fact the process was still pending before iss we would indicate in this report that went out last week that it is pending. if we had better information that might help us get at least ahead of somebody's . although, the proxy does you sort of winding down at this point. it should be another 4-6 weeks, but we will try for july to model what we would be prepared to report during the

next proxy season >> i think we start to develop a model now to prepare for next year's season as well so we can be ahead of the game as opposed to behind the any of the -- commissioner makras >> i guess when you say i says is that the peak of their performance because of proxy season back with all due respect, if their contractor and you want them anywhere in movement on this meeting, we should have them here and we should be acting now that we shall be acting 12 months from now. an analogy of what you are suggesting with the company we are paying for, when we not their expertise at the table, the analogy is, my bookkeeper my cpa is busy during tax time that some backup file my customer wait till after. no. that is exactly when you want them and it is timely that believe they should be here. that is how i think our contractor should be responding to us. the net result of this is where one you are late on

this. that is sad. at the end of the game that is that there again and again we can say that is less than doing your best. >> let me offer a suggestion terms of -- since the shareholder proposals are available, why do not you just get them to us as soon as they are available? i do not need i says to explain to me what it means when it says resolves shareholders request board of directors to adopt and issue a dividend policy increasing amount of authorized for capital distribution to cheryl that i do not need iss to read me through that. so to wait for that and wait for text i am using your metaphor, i think is a waste of our time and effort and disingenuous am i believe to the people here looking for the board to take a position on these things, so let me suggest, as soon as they proposal is published, i could see it right away to pack all right is that clear?

>> we can provide you copies of them. however, the board as a whole, has adopted a policy related to what considerations we have instructed iss to take into account on whether the recommendation to vote is for or against, which we can provide them and then we will, as soon as we know what our current policy as a board's adopted provides will notify you of that >> the board [inaudible] is that correct >> isis was here two months ago and the board approved the addition of the new policies that iss had said they believe would be coming up in the 2015 season, which were not limited to climate risk, but yes, we will make sure they are available. i believe we intend to bring this to the est committee, to have the complete discussion and then have them

report back to the board on all of these issues. >> again i wonder reiterate my request and also it is acceptable. as soon as they proposition regarding comes out to share with the other board members. >> understood. >> thank you. >> thank you. >> okay taking public comment on this item. would you please call the next item >> item number 14 action item discussion of possible action regarding potential investment mayors office of housing down payment assistance program. >> thank you.. i want to say that there is a little bit of an error in the press release is not a resolution am requesting today. i am it is actually a request for staff to do their due diligence on the possible doubt investment in the current like you to review russell investments about to $125 million in reviewing investment structures that is

prudent and will generate adequate return for the fund. i also want to acknowledge the comments that sylvia spoke of. i think she raised one thing, something that i have not considered about income levels for singles were seniors or single plan if i am not mistaken so that is how i understood your comments to be the maternal approvals rainout necessary. looking for plan and looking for strategies for exploring the option to back nothing is a done deal. there is no boat you can look for to this asking for the staff to begin to study this possibility possible investment in earnest, and to bring back to this body the report of their findings. in july. is there any discussion or clarity needed? no? yes esther driscoll

>> thank you for trying to clarify this press release that we got from the mayor. and especially to upper road it uses the praise, nature beat it to you, which may be incorrect a reasonable rate of return and he said adequate rate of return to punch our file asap understands what those words because i do not. >> fair enough, i like the staff to define just rate of return. will just leave it very open and when the presentation is made we can define it from there. that definition will be on what were comfortable with. >> okay because any brother parts of this are correct this is describing a very highly illiquid item and low priority for the borrowers balanced treatment in other words it would normally grace increased rates of gentoo commented for the rest of taking. >> so you are a client s&p 500 be illiquid investment that we normally [inaudible]

>> i do not know because every type of asset is unique in these look very unique type of security. statements made today e-mails given to us i talk to someone yesterday at a funeral bout those people asking all these questions and paste what the reading they think it is a done deal, asking if normal due diligence type questions to find out whether it is good or not the direction of the staff is the staff understand. >> on making their clear statements yesterday it is not a done deal. what i am doing is asking staff to study that both investments they study come back and make a recommendation and we as a body made public comment, listen factor into our decision then we take a boat that process is not chained to it as this is a consideration and investment consideration. the pros and the cons will be weighted not weighted, will be measured. as appropriate. me just say this mike if it turns out to be too risky of investment we do not have the boat then so be it but

what we will do is we will study it and will study enters and we will be very focused and thoughtful in our discussion. >> this one significant difference this is commission driven. there is a difference here because this is commission driven else's wreck of the staff to post investments. we do not really know what staff is doing due diligence on a tour comes to us as a calendar item. this is why people are talking about it, talk about something is helping but the process just brings it opened this way direct that does not come here and say we have 44 investments this last month there were starting to do due diligence on. i promise you, they came and did this all this would have opinions on all virtually 44. so since there is one that has been put on the table i value the input in the dialogue at the end of the game.

it will be, i believe helpful to step overall even in the due diligence. >> a couple points. person for looking for an adjective have a competitive rate of addresses were looking for an adjective. commissioner when you past majority the s&p 500 plus i do not think that is relevant here visa debt issues i have seen so certainly i would set that high of a hurdle for returns from what i have seen on this. lastly, in terms of due diligence, is there anything available from staff. i went to the retirees meeting today and everyone's asking about this. i said i have not seen anything whatsoever on this. are there any documents, and he knows any work done by our investment staff on this? so i like to see it. >> is no documents what we received, the profile of the portfolio that we been looking at for the last four months. terrapin because were in the process and substantially

completed with their due diligence, but we are not in the process of even drafting a recommendation or are we at a point of having come to any kind of an agreement with the mayor's office of housing related to terms or conditions or the structure of the deal. so there are no writings. you had face-to-face meetings and we have had an exchange of the data related to the underlying mortgages that are in this bundle. >> thank you. >> i would caution this body asking for due diligence material went in process. i think it is a bad policy. staff should be able to do their due diligence and complete it and make a presentation. if we move this organization to tabletop due diligence, were not to get any business done. it will undercut everybody in a promise to the private sector will blink real hard about wanting us

to do business with them. >> i think it is important to disclose that. >> can i add a comment >> yes, please >> the commissioner mike vote i did not say we should be using asked the question should we compare this investment. [inaudible] i am not at all setting the hurdle. on just to clarify, from the executive director, you are then waiting for another department to provide you with information to make is that is that what is happening cubic >> we have a number face-to-face meetings. the last one was to call meeting once there were some issues on the mayor's office of house inside related to the potential structure of a transaction. i believe that we will be calling a meeting in order for us to meet the july deadline will be calling the meeting quickly, probably this week or next week

to get back together with them to make sure they resolve those issues. >> so you have not been provided any documents to this date that you have to look through in order to make your final decisions and provide them to the board cubic >> no >> the statement in the press release having largely completed this under -- can now take action as early as the drive me to accept effectuate the agreement immediately transfer funds allowing for new loans to be made at the summer. obviously, the due diligence is not the completed. perhaps this will undercut everybody because it has already occurred perhaps this item should not of been on today's calendar cubic >> any of the comments cubic?? i the crash >> i have a question for j. next week is pretty much spoken for with meetings. traveling

the following week and the board materials for the july meeting or do the following friday, which means they to be in your hands about tuesday or wednesday, two or three days after we get back to matt can review july 8? >> yes we can. >> have we done any underwriting on this on any of these loans? >> no >> have we provided any the mayor's office of hud raising [inaudible] >> were trying to play a staying here between the executive director and the press release. my recommendation is the due diligence remain in [inaudible] till they release it cannot if we want to go down the road on releasing due diligence before

staff has completed it and has there are surrounded were not only saying they get to change their mind, -- were not going to be fully prepared. then i will ask another issue -- homages that were looking at. sold if we want to open that door for the resolution here, and table it to molest talk to in a policy driven manner. if we want to diligence to be at the board disposal before staff completed. do not pick on one particular issue in dry down in undermine executive director try and put him on the spot. we want a policy decision put on the calendar. i am happy that due diligence because all speak against it because i think it will be detrimental to our organization in the long run if due diligence is piecemeal without. >> we started -- do we have

all the documents we may need and have we put a team in place destiny people make to the underwriting and outline how we would do the underwriting, how we would evaluate how we would score them? have we set forth the entire process and designated a team to do this? >> [inaudible] >> i appreciate trying to get it to us by july and may be i will be wrong but i do not see how any sort of underwriting can be done on something like this where it is extremely not liquid there is no information of instant score nothings been classified that is been given credit ratings. these types of loans, is what actually caused the economic downturn in 20 weight. essentially [inaudible]

i think we need to be very thoughtful how we proceed about this let us be sure we have enough time to do so so that there is nothing rushed. ali and saying i do not see where we need a july deadline, but if you say we can do it then that is fine that is up to you but i am just very cautious about being sure we have all the resources in place in order to do this. >> i think that is a good comment because we really should authorize, if you need consulting help on it, if you need to analyze mortgages is a big issue. you have to do it right. so, whatever resource you need for that comes back to us if you need somebody to help you with that. >> thank you. >> i would echo that you are unable to get through this process by july you need outside help, which i do not know how we have internal staff to rate these in order to secure

in the whole process and please come back to us. ask for whatever resource you might need so this can be done right direct our make sure this process is not rushed. >> fair enough to like to open up for public comment now. mr. shaw, you look like you want to speak first. next will be in the sylvia and then mr. herbert, etc. >> i appreciate you taking me first because my problem with my legs. i now have to commend commissioner stansberry, who at the nail on head. this is what caused that problem back in 2008 . [inaudible] due diligence that is seeing e-mail topic going back and forth between [inaudible] to set up

[inaudible] my sunshine complaint next week. i think i found the smoking gun. the e-mail exchange between bob -- and one of the staff members circulating to separate excel files that have been begging for for four months. you keep saying i am going give you what -- in pdf format that ongoing i like those excel files to do my own analysis mack they been floating around [inaudible]. on going to get them next week from the sunshine task force by dropdead in city hall.. most of the loans on both the excel file for repeat loans that of artie been repaid, some of them look like their properties have been flipped mack in a short

period of time. never excel files without sounding loans. i think about 90% of them are below market rate which you are not going to a very good rate of return on investment. i, for one, do not like this press release with all due respect, commissioner cohen, because it is a slap in my face. i do not earn half of 175% a.m. i. and i want my money the paying dearly into that retirement fund to be used for ghosted by market rehousing. you have a big problem on your hands of terms and conditions being negotiated with the mayor's office because the voters in 2012