strategy. i think we need to work on developing the strategy and look sfr alternative squz maybe we can talk about replacing some of these companies afternoon, we will go aled and with others and maybe in some instances get we can do advocacy and actually started. welcome you tathe regular make a scheduled meeting of insan francisco eployment retirement system. i difference but selling does nothing, it doesn't change anything. today [inaudible] cohen [inaudible] i wouldn't be able to support any vice president. are there any motion to devest anything. i think it is a announcements? no. could you little too soon. i think it may be the right motion but think we have leg work call roll, please? to do. i know from time to >> commissioner cohen, aye. time we ask for more time to evaluate something. i think the esg committee can commissioner [inaudible] on the take up coal at the next meeting i way. commissioner makras, here. think we should come back to full board with more information and make a strategy. commissioner meiberger >> let me ask director huish, [inaudible] all which is are present. the next esg committee meeting >> let's rise and say the pledge of scheduled? >> we attempted to schedule it for december and also for weeks in allegiance. >> i pledge allegiance to the

flag of the united states of america january and have not been able to come and to the republic, for which it stands, one nation, under god, indivisible, to 3 of with liberty and justice for all. >> thank you. could you please the members being available any of the call first 3 weeks in january. the next item? >> [inaudible] >> so, it looks like the realty is it >> thank you very much. ladies is scheduled sometime in and february. gentlemen, we'll go into closed session >> [inaudible] picking a date at this time. we will resume with our agenda at 2:30. thank you. sooner than later. it is easier to before we go into closed session, we will iron out now than through a third party take like the public comment. commission secretary. i'm committed get toog a esg committee sooner than >> i'm so glad to be redirected later. >> i agrew. that was a . i and interesting article in the wall street others have strongly objected to the journal today or yesterday that said board going into closed session the most effective way to work on the issue to start your meetings forcing isn't by taking out the vendors in mass active city but to go after the banks who employees to wait several hours in the lend to lobby to reconvene in open them. that is the most effective way because the banks because all

session. these companies have needed money. using benefited vocation time they are to be here. as far as i know no big users of loans so by lobbying the other board banks they cut off the spigot or commission starts their and it is meetings by the most effective way to rudely going into closed freeze up session. this these companiesism . i think board appears to be the only commission we can doing so. fortunately i think of other ways to do this officially retired from my city employment and that is level 2 of advocacy. on halloween and have received and >> i'm not opposed to taking deposited my first retirement the most check, so agregious offenders if through i no longer have to take the committee it identify those. >> staff meeting and vacation or recommendation on floating holiday hours to come who the offenders are. remeend you to be more transparent with [inaudible] the 60 thousand active and retired >> identifying largest holders members of our system. what you do with my money, of in our retirement fund is now much the ground assets that [inaudible] more personal. please stop going >> with the different into closed session at the start of approaches are there one or two or 3 companies your meetings and go back to doing that still go to the top?

it >> they don't all make the same mid-meeting. >> thank you, any other members list. we had a report present today of the the full public that would like totake a board that indicated we know who the moment and share their views? most resistants energy or >> i would weremiss and also fossil fuel companies are in changes advocate you move closed sessions to through your resolutions urging more transparency regular time. i am using and actually including the possibility of assets. we know who those vacation hours to be here. i they think it would be very poloit of you are, they are very large firms that could totake that be considered one criteria. ia into consideration. any other gree the for esg committee has to decide public comment? public comment what criteria they choose to use. is closed at this time. i want to this was the definition in the state law most of the companies position remind themselves not that in concession to what i to meet that criteria of getting 50 heard, the percent of assets. they all desire to have public comment at the end of the agenda, the reason i know this was coming and positioned asked we move for the beginning themselves. this will be level 3, because we were in jeopardy of losing a restriction and again, staff would be more than happy quarm so if that is the boards decision what i asked to be respectful to bring of members time is we have a time back a plan and a timeline how

certain when people can come back and to do it. >> thank you. >> to add on to that, one that time certain for this meeting is component published and it is 2:30 today. i also would be agregious afundered, a want to second is long term, that stock isn't announce item number 7, the a good discussion item which was going to be an stock anyway. we wouldn't want it in informational presentation on our portfolio in any event. we the down payment loan program is no longer on the calendar and at this time can is not have different criteria, rescheduled or recalendared. i whatever negative impact they are think we are ready to go into closed carrying for session now. thank you. sorry. performance standpoints. [inaudible] >> a lot of people agree [inaudible] especially see it in china and think we should try it get that on the >> [inaudible] next esg committee, talk about coal. >> you are out of order. we have a education session and talk need to go about actions people have taken and into closed session. i made actually tackle this. the announcement, everyone can come >> the third could be back at 2:30. thank you. thank you for renewable. >> absolutely. >> i have been trying to convene a committee and some dates were not available to you, so if you can

joining us. we are going to put this as a priority to attend take a vote not to disclose what was the committee i think it is helpful to move discussed forward because we do need at in closed session. actually least 3 mr. clark members to do so i & the dates clerk if you can announce that. take a i provided didn't work out. if i motion not to disclose what we can ask that you prioritize that i thipg it is discussed in closed session. helpful going forward. is there a second to the motion? [inaudible] without objection the motion >> we all have scheduling passes unanimously. thank you. also, conflicts and we provide a range of dates and want to just make another announcement you choose not to do something that during the range of dates, there isn't a item number 8 is also pulled lot we can do but maybe professionly we can discuss this offline after the off the calendar and will not-there is meeting and agree on a date we can come up as a group. no >> that would be nice. the future date to when that item other issue will be calendared again. i don't is the october 8 date [inaudible] it isn't just because this is on know. mr. clerk can you call the next item >> the next item is general the public comment. agenda for divestment, oil and >> perfect, my favorite time of coal is

the day weak so is a it is a general and hear from all my favorite people in the world. i do want to make a decline >> october 8 is the inflection announcement, our microphone is point for all these stocks. you are welcome to see my phone t is very not working, you have to go near clear. >> if can finish that since the chairman gave me the floor. the clerks desk to speak and if that is too far >> the oil is very weak which is while you can borrow the microphone the oil stocks have been on the staffs desk. declining. so there are many factor squz there is a pension fund, we have a long one more thing, 2 minutes for horizon, it is over quite a long period public comment. i want to make sure of time which is a reason i think everyone is heard today >> patrick [inaudible] and so renewables is a way to look at because that please today here i'm now in your is a long period of time and the answer favorite persons category. the city to the global warming. if we can work together to come up with a time controllers pay roll data base shows the we can get together and convene the june 30, 2015 [inaudible] highest paid esg committee that is very city employee at 388, 988 dollar constructive going forward. thank you for your cooperation >> is anyone down here have

anything to share? okay. so, there was a including $82,000 in other pay that infact was ", ret row active regular pay. motion that was made and there was a second for this motion. would you given the mind dismal investment returns and restating the motion? >> my motion is to devest our foot dragging on the hedge fund holdings invesment the question is has mr. cokeer in thermal coal companies earned his keep at this salary level? [inaudible] and reinvest in like amount of please don't forget mike ceebal is a money in renewables. >> is there a way that you could attorney writing poa union articles. [inaudible] present a cherry amend your motion to incorporate some pick data comparing the [inaudible] of the things commissioner stansbury returns between 2011 and 2015, but raised in terms of due diligence? >> i would probably say yes and creatively probably turn to the executive neglected mentioning 2008 to 2009. director and say, [inaudible] maybe they

don't forget ers outperformed come back with a sense of what the yale [inaudible] yale hasn't sur investments we would have and how long it passed the may take, peak in assets 7 years later then we would be able to answer the and geren question of prudently moving dean [inaudible] reported in the new york times on september 14 that it. >> okay, commissioner stansbury. that is a great compromise. we need yale lost 24.6 percent while to bring this back to the board. [inaudible] only lost 22 percent in 2009. >> we have a a-minded motion. do we need to take a second or is donot that still support hedge funds. >> thank you. i have a list of standing? i'll second again as well. of course, public comment. cards i will call. i have first, >> the city attorney brought up the [inaudible] legislation, should this board fallowed by alex [inaudible] go to the board of supervisors with similar language would that be appropriate? >> the board of supervisors fallowed by ruddy soltis. doesn't have authority over the

>> good afternoon. president investment of the retirement system. [inaudible] >> it is supporting affirming cohen and commissioners. a little hard or de9ing to speak what you are saying. this way. so, i have come to it is a opinion. speak >> also as part the staff report we about the downpayment would like to bring back a assistance loan program. i see it is pulled briefing by the city attorneys office on the new from the department of labor standard, agenda, but most of us are here about that program so mine as well fiduciary standard and their statement speak with you about that at this point. how a board like this can make these we are concerned type of decisions. it is roughly 4 or >> sorry-i just want to double check, 5 weeks since it was issued so want to if it isn't on the calendar do make we take sure it provides a guide toonts the public comment? fantastic. board like this on how to make >> it is 3 minutes, right? these decisions, so we would like a >> no it is 2. briefing on that also. >> so the issue is one, we >> i'll include that in the motion that believe our understanding is that the staff is part- >> let's go to public comment has not vetted this program and that is and hear not what the public has to say. i from our understanding the don't have speaker cards-i do. bret general procedure, the process in which fliseman, jack fleck and jed the retirement board takes investment [inaudible] and anybody else

items. it is our understanding that would like to speak, come on up after that in general investment these 3 opportunities come gentlemen have spoken. up and the staff vet it or the >> [inaudible] turn your mic contractors, the consultants vet it, on. the staff vet it and it comes >> hello, [inaudible] i just to the board. this piece of invesment item has come around the general wanted to process and expand on a discrepancy between directly the mayors office after a press conference or press sb 185 the state legislation and how release. that's disconcerning to a lot of us because we believe we trust the it defines coal and what we are looking at in the third portfolio. the commission to exercise due legislation defines coal companywise a 50 pert thresh hold for revenue of cole mining. under your saerfb or 8 diligence in your vetting of investment companies that would allow one because you company to be devested. we should-i are the guardians of our pension fund and think you should continue to utilize the process you think the normally have motion doesn't include that and not invest in something definition but want to be clire you are unless it has gone through had regular holding-it is in your top 3 largest

vetting process rather than take a political move as suggested and holdings, coal companies with the largest encouraged by the city or mayors office. reserves land within the 25 largest >> thank you, next speaker. reserve holders in the world in the >> good afternoon. my name is public market. that is significant alex [inaudible] i'm the direct r of amount of asset value and possible field destruction to the planet. the other thing i services for ifpt. we want to represent 4500 city workers and a member of mention was, that for the last 5 years the coal companies on your the public employee committee representing all the portfolio city unions. local 21 and all have wildly under performed unions do not support the use of [inaudible] lost 61 percent of value in the retirement last 5 funds for any purpose other than years. [inaudible] 55 percent. supporting the retirement system. this means opportunities that maximize the vali growth of the fund with 91 percent. black hill, 21 in reducing the cities and our members the last contribution. political and social endeavors have no place in the retirement system. year. [inaudible] in august. the this is fiduciary duty bis towed on the a industry in decline and these commission and requirements under the holders are a drag on the portfolio and california constitution require

you to put the fund ahead of any you have all the fiduciary outside force, political, person or [inaudible] you need including the new dol otherwise. [inaudible] every issue we face. we announcement to make this divestment of a demand this commission adhere tiny portion of your portfolio. to good then i guv rns principles and that would like to quickly prespond means using all means to analyze and scrut to commissioner meibergers request synchronize environment for opportunities. response to inflation [inaudible] given the challenges of returning the fund to a fully protection fund level. thank you for your time issue. we helped you all hold >> thank you very much for your a information session where we brought comments. roody you are up the number 1 statusstition from next. i will call a couple people, if we can queue up that will be helpful uc berkeley to talk about to move inflation and there was a slide dedicated to this quickly. elmer car. that issue and the answer is the type of inflation, what is causing the robert [inaudible] inflation. it isn't a easy >> now it's on. [inaudible] answer when you get into the weeds. >> you exceeded your 2 minutes vice chair [inaudible] there is no of united educators of san

francisco retired division. i'm a [inaudible] of retired teacher and member of the time. >> i just want to understand the amendment. it sounds like your retirement system. as i retired in 2010, proposal is to devest and ask staff to not help explain how long it will effected by the court decision take in a which will reduce the pensions of few details. i would support teachers and professional who retired the proposal. if the proposal is before to not devest and wait for some other 1996, november 1996. as you staff report then i oppose the are probably aware, all the proposal, so think you need it make sure you teachers and professionals that worked in are-know whout you are voting the san francisco, san francisco on. i hear from this board quite unified school district were members the city often is the retirement system until the phrase, worst of the worst and coal is the worst of the worst. the other 70's. thing how you measure that, early 70's teachers were forced to make a choice between the state and fortunately the epa in paris now has a plan sate retirement system. at that to specifically limit coal fired time most moved into the state retirement powerplants to limit all system. the teachers that remained were people electrical power plants to less than 1

that had a lot of longevity in thousand grams of co 2 per kilo watt hour and coal can't meet that and that the is why system. now those are elderly the u.s. epa has a policy that and retired before 1996. those excludes all future coal power plants like me are and shut few and far between at this down of existing plants. i think the policy is very clear from the point. the other thing around this, united states in paris right now and professionals removaled from the system by a we are asking there board to implement vote of the city folks also in the something that is very consistants with 70's. they your worst of the worst line of had no other option so they thinking. again, i support devesting remained part of social security from coal, support staff explaining how to-do that, but not to delay. >> thank you. jed holtman. [inaudible] these people are the most velinable and >> hello president cohen and have difficulty keeping windup the cost of libing and are the folks that have commissioners. i feel i should educated children in the city for a lot try to of years. it is very important sell you something. we support we do not throw them off. they need moving forward on divestment today and that 1 and a half percent, more than bringing another-making another

most of us. it is morally wrong and a procedural so we have 4 more violation of the city charter and urge you strongly to support them months to get a staff report on to take another and keep vote is completely unnecessary. this [inaudible] going for them as well the definition of coal is key. 50 as the rest of us. it is your duty [inaudible] >> thank you. percent revenue thresh hold [inaudible] >> homer car. that is less than 300 thousand dollars. >> good afternoon. my name is a 10 percent revenue thresh hold will add 2 more companies and takes it to [inaudible] retired employee under 6 for 32 years and a member of the pob, million of the 20 billion we are talking about. if one of these protect our benefits board. you companies owns tons of coal and received a lot of information from people, joe slaughter housing or tons of asaro cars or giving a chronological tons of baby seal clubic explanation. i factories, is that any less coal? no it is just want to highlight a couple things, the same there is no pre-existing-fully amount of coal, it is just less revenue. what we are talking funded in any of those propositions. about with the scientific and financial aspects why we ask you to [inaudible] going out and past pacts is to pay and that is always that devest from coal or prudent to devest from way and coal and now we yank those away from the why hundreds of institutions around the world have already taken the

people that need it the most. i'm step is the amount of coal in the ground, not post 96 and the money they are making from here for them because they are coal any time you look at their record. too old and vulnerable to get down here and plead not to dothis. legally basically the problem is the amount of we fought coal the companies hold. what a long battle and the advusary we ask you to do and it is very unclear from the motion, we ask the amount is the of coal city attorneys office. they reserves the companies hold be will gichb you advice. that might be a use today define as coal companies conflict of interest. we strongly not how recommend you much money they are making at get outside council. see what the time. the carbon [inaudible] for the level one charter says and see what and 2, 100 of that 200 is the [inaudible] it went to appeal and we law. top coal companies in the world which is 98 percent of coal reserves. what con we ask is use that as the definition contractual law was violated. to devest from the top 100 coal we want to get over this and don't want companies. we anyone are talking.1 percent of your to be treat [inaudible] we want portfolio. you moved more than you to that in the last item. 433 continue what you have been institutions have doing already taken this exact paying the people on the edges approach just under a quarter of those are of society ready to drown. pension funds, they are not all

endowments. again, it is folly when these [inaudible] companies follow your mission statement. lose 50 to 90 percent of value if you read the mission statement that is what you are supposed to do and hope over 5 years for us to argue about you take that path. thank you very this. the companies are taking on their much. own and >> thank you, next speaker. your managers should have >> robert. devested already but ask you to take this step today. thank you >> thank you. turn your mic on >> robert cuton. retired san because i can't hear you. francisco fire department for 30 years >> i support commissioner service. i'm here speaking on behalf of macros motion. i love them both. i several people retired. i have a brother support this motion as introduced to retired prior to the cut off devest date. i'm from the thermal coal companies also speaking for a couple world war ii and vets. one is my brother in invest in renewables but don't law. he is this 90 years old and worked with goes far enough. as oil and city and gas continue the tumble, the county of san francisco and he retirement board should devest from all construction and department of fossil public fuels, not just to stop global works with regards to concrete and warming

brick work. he is in a rest which concerns me but to avoid home and further also another gentlemen who loss to investments during retired at world war ii vet and retired inevable from the fossil fuel down markets, [inaudible] department. department of particularly now that i'm retired and this public works and his wife is a is all widow in a rest home kwr they depend on about me, i mean mine money. pleased to see robin [inaudible] the [inaudible] that helped them article, pension fund invest in dirty out the last part of their years. these are people that work hard for the fossil fuels in the san francisco city and county of san francisco thick and in examiner, in the and did what they had to do which she clearly argued that without complaints and exspect to this board should remove j huish as executive director. he doesn't have the continueiation of the contract do his job. that is a mouth full that they signed. i am only giving a few examples, there is a lot more many have been saying for quite some out there barely getting by and it is time. as [inaudible] wrote, huish extremely fails to important we do not cut out the respond to board member people information before. the city and county of requests, it is way past time san francisco cannot work without the police and fire and department for your of personnel committee to public works and everything

else. it terminate mr. huish as a embarrassment to is extremely important and something i hope this will be remembered this pension fund. i support the throughout the years to come. thank you for letting me speak. blanket [inaudible] and agree with >> thank you. next speaker is 350.org position that you should do it today. [inaudible] and herbt wineer. if you need the staff to come back with step by step guidance, so be it >> [inaudible] but pass this motion today and begin this long overdue divestment. i don't have children, but i don't want to leave >> thank you, next speaker. this planet with dirty coal or >> there is a microphone over dirty fossil fuels. >> thank you. mr. [inaudible] there you can use, marti. >> good afternoon. my name is >> i hardly speak on social issues, social investment issues and [inaudible] president of san don't have francisco police officers association. the expertise that a few of the i'm here to exspess our opinion in regards to previous speakers set, but i the [inaudible] program. i know it is removed from the ajnda. thought i primarily this will set a dangerous precedent heard when herb read his list

for the of renewables i think said fusion retirement board. pursuant to in the 16, section 17 och the california list. the only reason i want to say, i think the esg does do the constitution. [inaudible] obligations to plan participants thmpt studying of this issue that i hope it would assets of public pension or retirement look into the issues of next system are generation trust funds and held for fission and fusion. i know those are exclusive purposes of providing benefits not politically corrects to compared to solar and wind but hope they participants. the retirement boards duty shall take precedent over will be looked at. bill gates is any heavily other duties. based on these investing in that area private obligations it appears using retirement equity fund for external purpose for and fission and so is sam low [inaudible] income housing violates the probably the leading angle state constitution subjecting the investing fund in san francisco. retirement >> thank you. anyone else that board and city to court. would like to speak? okay. you can according to the courts the purpose of 16, section 17, is insulate the admin line up or use that microphone over there. we'll call on you next. stateive retirement system from >> sliding chairs. [inaudible] oversight and

controlled by legislative and executive authorities. using plan funds for the who is purpose set forth by the the chair of our climate change executive authority such as the mayor with regard fossil such utilization will benefit fuel divestment committee participants will violate the letter [inaudible] our union has taken policy and spirit the constitution through the board that woe would like all provisions. again, isthe sets up a our retirement boards to devest in potential civil liability for the courts. the fossil fuels. i would like to think this poa objects to the use of the funds motion is consistent with that. for the retirement system for the dol she is actually currently in paris and program. thank you. >> thank you. jeff [inaudible] has been monitoring and active in attending all the climate talks and followed by herbert wineer. getting a >> good afternoon, jeff daily blog from her. i agree [inaudible] with union of america with the speaker who questioned what the physicians and motion is because the initial [inaudible] in terms of the-this action is dentists. represents the doctors and accurate but when you start to water it management and supervisery down and say put it back in committee positions. i'm here to oppose the board and continue to look at it, my

concern is if not now, when? [inaudible] investing retirement funds in the dol program. the dol program is of great solsh put down value, never the less, people the road which doesn't alter anything who spoke before mentioned the fiduciary in terms of the immediateancy obligations of this board and the of expectation of our members is climate change. the temperature is the board rising, 2 degrees isn't that exercise fiduciary responsibilities in the most rigorous manner far off. likewise, in terms of well, if possible as prescribed under the law. we we devest and take the money out, as a union, are joining with the we won't have a impact because someone other else will constituent members the public invest it in instead of us. i think you can be a leader and model employees committee and unanimously and think opposing not only the invesment someone else investing doesn't of retirement board funds into make them the good guys. doll but also the process by which this [inaudible] the seems to more people devest and get out, be happening where the normal the fewer people want to go in. procedures are being that is how this works. [inaudible] circumvented in order to have a item directly how it presented to the board without the worked in sedan and south appropriate vetting and analysis. thank africa. we you. finally-if the stacks -stocks >> thank you. mr. wineer.

>> herbert wineer. i feel are going protected by the police and physicians and down to 40 percent and beyond, isn't it basically time to maybe cut our losses? i really oppose the idea of >> thank you. next speaker. raising our retirement fund for projects >> [inaudible] director of for the mayor. i think this is sending a very dangerous precedent. if they investment do it once, they will do it again. with series [inaudible] i want we talk to applaud your efforts to reduce about the precariousness the retirement fund. we talk about all sorts the carbon holdings, change the carbon of profile, the carbon ringe of proposals for protecting it and yet we allow it to be invaded. this your port foal ye. i think moves in that direction are critical. the is a version of home invasion as far new dol guidance puts that within the as i'm concerned. so, very glad the realm of police your fiduciary duty and how you are protecting us on this and i do it. there are many options see we want to way in support of that. also, i really stand to support. the move towards think that the pre-1996 renewables will reduce the carbon footprints of retireee need your portfolio, but encourage a to get their just increase. range they sacrificed a lot for the city of options which include and

preceded me in employment, they engaging with were my all the [inaudible] tolic at supervisors and coworkers and we owe it to them. it is a tremendous their capital expenditures are going and put amount of money into new alternative disrecept not to do this. more forms of energy and moving money away and more i think about i think the from fracing kwr the dangerous ways people who were next to me in employment and of exploiting our current who retired before 1996. by resources. you also have opportunities to look all means give them their just due. at green bonds and new thank you. >> thank you. next speaker is infrastructure investments that will hedge dean coat from local 21. he is no inflationary risk and begin to move toward a lower carbon future. longer here? okay. is there anyone else that if we would like to speak? please, can be of assistance we are come on up. >> good afternoon happy to do that. you are part of a net recollect with of many investors wrestaling with these questions how to commissioners. sharon johnson from pob. i [inaudible] throughout the portfolio and have written letters and i know you applaud your effort today. have a >> thank you. very astute excellent letter written to >> good afternoon wow by mr. joe asaro who is commissioners, president cohen. germy [inaudible] here but because he was going be in legislative aid to john avalos.

court he asked me to give testimony to i will his letter. i don't know if you reiterate the comments that don't have copies of the letter i have requested to clarify the motion and to be extra ones here and happy to see they are strictly devest from the coal holdings. supervisor avalos agrees face distributed. joe pointed out thg divestment on the size of and gave reserves the best outline about the makes more sense on the e history, the charter and history of fairness given revenue to all retireees at any given thresh hold. you can't time and overstate how there are many points mentioned [inaudible] companies lost 50, in joes letter in the history of it, but 60, 90 percent it seems it is the it in the conclusion which is on page 4 if you have that letter, it is right move and morally correct decision to make. very urge you to do that as quickly clear the city in the attempt as possible and make that to direct the retirement board to allow divestment final today and then look forward to the fully funded requirement to be apply work at the e sg committee or full today the pre-1996 retireees are board as soon as it is moved on the overstepping their boundaries by [inaudible] retirement board in order to [inaudible]

a lot of institutions devested satisfy private interest of the city. not only from are they in violation of the coal and [inaudible] it would charter, be to take a look at your tar san but the california state constitution as well, article 16, section 17 holdings as well. thank you for your time. of the >> next speaker. california state constitution states the retirement board and not >> cathy season. i want to the city reiterate, i think it is good if the has the sole and exclusive makers the motion would clarify that what you are talking about using is the fiduciary carbon underground list, the top 100 coal companies for the reasons responsibility. [inaudible] with the care, skill prudence and state, which is the only meaningful way of diligence gelting at the coal company holdings. cunsitutionally required of the [inaudible] and i just want you you heard the statistic but think to-remind and pob back in 2011 it should be clarified in the motion. met with you are every board of the supervieer use thg list for level one and squz met with the mayor 3 times and try 2 today engagement so those are the meet with unions to express stocks tanking now and think we can do concerns about the right of our sep a smarter job devesting from

lltal colea. it fell on deaf airs and sued those coal companies than what is in the and the state sponsored bill court agreed we are entitled to >> any other members- >> [inaudible] for the purpose it. you use the word may [inaudible] all of this item i speak the san our retireies. >> thank you. >> [inaudible] from local 21, francisco police association. [inaudible] asking not to representative organizer. it devest fossil fuel and i want appears the commissioners are using the to say now that for the purposes at alternative asset allocation as leverage to achieve approval of this point we are changing our mind. we [inaudible] that is a direct agree that these should go because threat to the functionality of the everything commission and i heard and said today we agree invites infection the with. commission without outside political influence. [inaudible] less than a year however, i want to agree with ago. the staff are moving forward and what commissioner stansbury says, be hiring a newmanjure for this program. careful, this is our retirement without the hedge fund allocation the board will have done nothing to money. whatever you do make sure you protect the make the greatest amount of money you can for fund from a down turn and us, that is your job. social things are fine and don't disgree with

abandoned the advise of the cio and others is this want i want to breathe clean air but want to be able to pay my rent a violation of your duty. [inaudible] demand this commission do while i breathe the clean air. something to protect our members retirement >> thank you. any other funds. thank you. >> did i understand you say the members that would like to speak on this item? seeing none public comment is closed at hedge this time. director huish. fund item is not on the ajnda? >> request an amendment to your >> that is correct. >> i had a nice 6 minute speech motion so we can clarify that the decision is and now i have to boil it down. to devest of our thermal coal [inaudible] if holdings. i ask that you say consistent it isn't on this agenda i hope with the it isn't boards social investment policy on the agenda in the future because that will create uncertainty which allows when staff brings back that will our slow down the hiring the key implementation plan the ability to basically dublt the rational asset manager that is necessary to for the decision to devest. and to make this go forward. i suggest that bring back a plan to prudently reinvest this thing be permanently removed. the 6 members who voted for the hedge fund those allocation you can only change your vote resources to include renewable energy. against >> i want to-the motion is to

that now. you lost all confidence in the staff to find hedge fund devest, but we have todevelop a policy members or came windup a better plan. i have seen for evidence that either of those 2 staff soia can decide what can things devested? have taken place. i propose a >> within our existing policy that will compromise, herb, i love you and provide staff will bring back the rational. this doesn't have all the and-[inaudible] i love you information, this says the holdings we have. it was tied to the definition of senate bill 185 rsh but that is not the nature of this motion, this motion is not to say, any companies are the one both. if or two companies that meet the definition under state law, your concern is [inaudible] this is to slowness of the hedge fund, work with the prudently devest from these staff. this board can do-this board hold squgz reinvest and have staff bring and staff can do great things if they back a reinvestment plan and want to make sure it is within and consistent work together. that is shown in the with the board essential investment policy because this really is level 3.

private equity field and it be done in this the is the step into level 3, it is hedge fund field. herb, i love you. if you are concerned call me. restriction on our hold ings my compromise is staff expedite and it is something we will plan to this [inaudible] and look into quick spreads devest we and the type of things restrict managers from [inaudible] in investing going their attachment as other ways forward in these companies or any of hedging the fund. am i out of thermal coal companies, so i want to make sure we have a full time already? briefing on what level 3 means so when we >> [inaudible] bring the plan back and the board accepts >> okay, folks. there are no other members that would like to it is speak-sorry, i didn't see you consistent with board policies >> it was the companies i >> jack [inaudible] with [inaudible] know there is item number 10. specifically mentioned not the 100. it is i want to make a broader point about [inaudible] fossil fuels. i want to the thank the people who reminded us of spinge companies, and what is your fiduciary duty is consider the board policy? >> we move from level 2 to3 and the benefits of [inaudible] the question i have for you is to really

bring back the impact of level 3. seriously consider what benefit is it to some may bein indexes so we need special us as retireees if our investments are actively part of what is indexes of these companies. these will destroying the climate? the science is clear. entail fees to do custom indexes. i a life long member of [inaudible] we think we are are very close to investing 100 engineer and apply science and the science is clear. the unit nationerize trying to figure how to leave million in fossil fuel which is the 80 percent of the fossil fuels in carbon 200 index, 100 million in that, i the ground. not only is it the believe we finalized or close to right thing to do, it is a bad investment finalizing the agreement with the provider so to invest we want in fossil fuels so for all to make sure this is passed those reason weez urge you to [inaudible] within the boards current policy. staff fossil fuels. >> okay. thank you. anyone has never else like taken and not the position of to speak in general public staff to take a recommendation position on these comment? type of social policy public comment is closed. can decisions, all we want to do is create the record you call the next item? upon which we can proceed to execute >> approval of minutes of what you are telling us to do today. i'm

not suggesting we change the motion to not be a divestment, just allow november 18, us to come up within your policy and 2015 minutes. present >> we need to take public to the board the full plan. comment on >> just quickly to piggy back this item as well? thank you. on what the director said, i do recommend that if you are devesting that the let's take public comment before we decision divestment included need to be based on [inaudible] a sound investment rational. >> thank you president cohen. with the new deal [inaudible] which i'm the november 18 is very worry some. happy to briefout at the next meeting, most notablebly the minutes on page that can be considered a factorment you can't make a decision based on the 15. report commissioner makras requested policy the dullp investment is good, it has to be viewed in calendared for action at today ed meeting but connection with the invesment. if coal companies go down in value that is a turned into a discussion only ajnda item in a brazenly political move. you investment relate td decision because it effects have been the return of the invesment. analyzing the dullp loan so, i do proposal for well over a year and the

think it is important that you background materials today do not provide build a record around each divestment a new due diligence report by bob that will be made and you may wish to shah analyzing any of the 3 options, consider something in the state law moa, which is a ced is now advancing. you opportunity for staff if they feel a particular divestment is shouldn't take action on this until and prudent for one reason or aortto come back and and unless mr. shah presents you with a present that to the board because at new dull the thofend day you want a diligence analysis. commissioner makras also requested on november 18, a report of northern trusts to solidrecord. >> i think there is this full conversations and board and the report on vacant more information that needs to be provided. my preference rather staff positions. is director huish than voting devest today based on stalling on providing a vacant staff future rational is why don't we table report? where is the report about the this for 60 days. let the esg dive into 15 questions involving northern it more and make a decision with good trust of which mr. huish answered, only information. i know it feels good to one. have instant gratification but commissioner makras is [inaudible] all the sound thing to do is get more

14 questions before you decide at the issue here. >> it isn't just the people in whether to reissue this rfp. without it you will not perform your due the audience. if i understand what is on the table is that staff needs diligence. >> anyone else like to speak on to tell all the managers involved sell item 5? public comment is closed. motion is tomorrow. it has to be coupled made and seconded already. without objection accept the minutes? where the money shall be reinvested alright. which is so moved. part of what commissioner >> item 6, consent calendar action item. meiberger was >> move adoption. getting on. [inaudible] there >> move adoption. is there is a is the issue if the unmy sits in cash second? >> second. for who >> thank you. adoption made by knows how many months that is a different problem. meiberger and second by paskin >> in my association i said we bring jordan. without objection this motion back a plan to prudently passes unanimously. >> item 7 is continue to call devest. we bring back a plan how to devest

the chair. item 8- and >> no. item 7 is removed from reinvest-like i said, we also the agenda. want to >> item 8. concurrent with the policy we >> not rescheduled. >> 8 is removaled as well. have a list of 10 companies and want to bring back the justification for why >> item 9. action item approval we are devesting from these companies commit and then at the same time why we intend 40 million pounds to [inaudible] >> thank norm. uk real estate to reinvest. it is the case by and art and craig are on their way. case which covers the city attorneys attorneys and the signal that you want to devest from these companies. if there is >> thank you bill and good one thatstuff staff to make a case afternoon commissions and members of we want to hold on to it is within the thepublic. we are here to make a judgment of this board to decide not to commitment to devest of that company and keep it but barackton capital. they are that isn't something we assume will active in london and the uk. london is

happen. i think the motion is devest, considered a world class city in the same class as newuric, toqueia come back with a prudent methodology and and hong kong and a popular city to make timeline as well as a plan what we intend to look at as we reinvest the investments. it seems the money and as entire world we devest from each company we is trying to [inaudible] that bring isn't a back to you where we recommend strategy we recommend. they are paying very high [inaudible] at very you reinvest. we tie them together low cap and see the money and where it goes to rates and we do not want to participate in that game. we wish we had commissioner driscoll- >> i understand that but that some assets to sell today but our does want preclude the managers from selling because they center the core assets are not quite of that normal-that is quality. why the 5 year numbers may be on the other hand is a [inaudible] real wrong. i estate manager. they buy understand the and conditions which doesn't effect the current understabilized assets in these operations. >> great. markets and build and reposition and improve these assets to core. we do >> [inaudible] a motion is like and one they do very well. made, it is accepted rkts we have taken >> as i mentioned brockten

public comment. let's do a roll call vote on this item. >> commissioner cohen, aye. capital [inaudible] across residential, office, industrial and retail properties in london and other major uk city. driscoll, drive net income growth by focus on aye. meiberger,i. makras, active yes. paskin jordsen, yes. management [inaudible] they have stansbury, no. construction in assets motion passes. >> could you please call the management inhouse and use this to take a hands on approach to [inaudible] putting next item. in a >> item 11 report on investment couple expenditures and [inaudible] sell toog the large number of performance of the retirement fund for core buyers that have come to the the quarter ended september 30, london area. [inaudible] across 2015. >> thank you madam chair. if we can ininvestment cycle. [inaudible] very turn i think it is to page difficult 2006 returned a 9.3 rr in pounds and 11-no, page 18. fund 2 item number 11. page 18, in returned a 16.6 pound. both these returns are top quartile. in

item 11. my mistake. you look on the u.s. dollars is 6.9 rr and fund 2, lower left column, you see a rough 15.5 rr. quarter. just still strong but [inaudible] a tad over 4 percent for the quarter. what is that did compare favorable considered a strenthen dollar relative to the bench mark which was down environment. bock on has a 5. team of public equity, solidly real estate professionals that outperformed by represent 25 experience in the 40 basis points. tough market. industry. there are deep public connections [inaudible] off market that equity [inaudible] 9.59 for the gives them a strong competitive advantage quarter. importantly in fixed compared income is to their competitors. the uk that it is not the diversifying we hope it tobe because there is [inaudible] hands on invesment so much credit risk and the high yield strategy, inhouse execution and market now isn't a good functioning successful track record give market. it is a very illiquid market, it is hard to sell things and when they sell

[inaudible] tend to be a little they sell at shockingly large smaller. they will not be in declines relative to the recent bid. in core london. [inaudible] unique fixed income we did not do well nor compared to the assets we are currently have we done well over the last year. we lagged by 1.35 percent. we had pursuing there. [inaudible] a strategy to change that and >> i agree with everything art that is part of our recommendation that is coming firth here in a couple and edsaid. they are a experience resource team and they are reinvesting more items to create more of a bar profits bell structure to our fixed income into the plat form. they do operate in strategy where we take more priferbt the greaterlenden area so think debt with of putting a pin in the west end high yield, shorter j curve on and drawing a 40 mile circle around the oneened and a more conservative london, that is their main opportunity approach on the other end of set. they do smaller assets outside of the sth west end and london so they spectrum. real assets and operate in private equity solidly outperform for micro markets that are different. as such they can buy those assets the quarter. if we turn to page 23, at generally cheaper [inaudible] and a lot

assets need a lot more hand looking at peer returns, you holding, repositioning and rehabilitation so they can really do drive rents see that for the quarter we were just through that value at hand on outside the top quaur tile we were management with their plat form >> let's start and decide above the mid-point of our peers. you if-yes, captain driscoll see over a >> this group play be very 1 year, a 3 year, a 5 year and strong about finding the right price and 10 year, we are all well within the top refurbishing and back on the quartile. only in the 15 year market but there question is the london period market. what is our expectation for how are we outside, but we are in the top half so that is a measure of much london will grow that drives the demand continued good relative performance. for real estate? >> we feel good. we think this is a tough part is that you look there will over in the be [inaudible] the economic 15 year period is we only activity is a strong and economic growth we earned 5.7 percent and a good portion of think will exceed the u.s. in terms that because the equity market is a of gdp major growth. the uk is a large disappoint in the time. over the last 15 years, the [inaudible] is economy, ranking 10 in the world and

london is the world class city so by real only up about [inaudible] i'll turn and estate rankings i say in the top 5. ask bob if he has quick comments? large >> i have a couple brief market, one that is growing and benefit from the recovery in europe and anecdotals. quh i go through the quota, we [inaudible] and so we see were down 4.1, but it is a tale of 2 london as similar to what we see in new york. everyone thinks so and so these quarters. in early august the assets are in high demand and quite chinese [inaudible] up to the that expensive so this is why we like brock point we were in positive territory, not greatly about 40 basis points. the ton who can go in and reposition and portfolio fell 4 and a half percent over the remaining portion the quarter refurbing and this them and sell to the core is commentary on the fact china demand. that is a is extremely strong today. >> just want to know you have a very strong emerging economy. economic forcast over the next the size 10 year. and access we can't get yet is >> next 3 to 5 years. >> buying in the next 3 to 5 very large. china is start toog years and selling- >> we feel good about our have the

same impact in the global downside protection in the market such economy the u.s. does which it used to be as london. >> thank you supervisor cohen. when the u.s. sneezes the rest of the just a couple questions on the property types. world catch as cold and see the same can you tell residential, with the office, those type of things? chinese market. anything with a equity >> [inaudible] 4 main types flavor be it credit risk and will go outside of that and do hotel high yield type deals, they have done pubs in underperformed. this was a very solid the past. downside protection quarter in we expect the vast majority to public market. the vast majority of the focus around office and residential. managers on the active side however we expect [inaudible] form the strongly outperfirmed. >> i would like to make a core [inaudible] >> everything but mostly office comment and invite [inaudible] within and residential. how many pounds private to the dollar? equity i really like the >> one and a half roughly. strategy going >> this investment is roughly forward. the strategy previously has 60 been very buy out centric and million u.s. that's it. thank that is you. very additive and done amazing well in

>> anyone else-commissioner vercher capital and section 8 bridges. returns are 22.2. in particular i was >> i move the item. for all the reasons meeting with tonia a while back and that were shared. london with tonia said the quality of the [inaudible] a 40 mile radius, london is similar available to us in vercher to new york. i believe that san francisco in capital has "never been better ". i think our region has identical increasing our exposure in asia qualities to this calendar item and makes a ton of sense. asia is a everything supporting it, so i would hope that the growing economy, it is a very commitment to london could be equally viewed to hear if we can see a calendar item with the best real estate people looking for the best bargains inefficient part the well and can do well for a and best 40 mile radius and benefiting. state if it owned enterprise to for profit, is not there, maybe staff could private enterprises. the quality the send a memo saying why they don't teams we have met in the public markets think this region pins up to this calendar and private markets in china and item and this 60 million dollars we throughout

asia i'm very optimistic these are putting forward. >> okay. motion is made and will deliver really attractive returns. seconded. we need to take public comment that is tempered somewhat-more on this than somewhat in private equity be item. public comment anyone? evaluations. particularly tin no? okay. public comment is later stage vercher and also by the closed. motion is made and seconded. fact that we are significantly ramping without objection this motion passes up. we commitmented a little over 1 unanimously. thank you. next. billion dollars in private equity in >> item 10 action item update the past year so we will be experiencing relate today sb 185 thermal coal a new level of j curve that we have not companies. experienced since the early days when >> alright. here we go. we were ramping up this program. you could see negative impact on private equities on our returns as we experience the j curve. on the orebt hand the team is diligent and >> after-bobs presentation in put a great deal of effort in appendix b i have [inaudible] if the negotiateating favorable terms and fees the

board would like that information. best we can. those are the highlights >> thank you mr. shah i wanted >> at the boards request and to give regarding private equity. i would like to ask unis and given the recent passage of the california state law sb 185 we have done a vicky if they have comments. i think this is the first time the board has a prelim nar analysis of our thermal coal chance holdings to hear from [inaudible] and and want to emphasis the vicky and you will hear more from them at preliminary based on a list [inaudible] you see the the ic meeting. >> i don't have much to add level of investments from other than we did see a [inaudible] the public equitys and [inaudible] with that background we are here to address any questions you may have. [inaudible] 3 percent during the >> alright. does anyone have quarter. there was mixed questions? >> like to point out at messaging whether we [inaudible] concern about the health of the u.s. economy [inaudible] but it has come back somewhat more but there is proposed resolution and we they are still wide versus where we provided the information provided in that motion. were a >> thank you. commissioner year ago. that is all i add for fixed income. on the equity side the meiberger. >> thank you very much. i have drafted story

for q 3 is china. it caused a a resolution to [inaudible] thermal coal stocks in favor of renewable. lot of there is roughly 18.9 million [inaudible] china fts down 22 percent. dollars in equities in the coal also, concerns about slowing companies included[inaudible] total down economy sparked by china continued to cause concern about a slow down in energy and materials. brazil's market value as of [inaudible] fixed income markets were down 33 percent. in terms of sector energy were down close to 20 percent. [inaudible] the ones that out performed have a [inaudible] securities. sun cook energy they also partners. have a underweight in energy in market value of 2.1 million the quarter. >> just a al on what bill said. u.s. dollars. round numbers, about [inaudible] earlier in november 21 and met really good managers that had million dollars. the sb 185 man dates great returns and great institutional public funds invested in coal investor backing and wecontinue

stocks. to do i heard testimony from members due diligence and are trying to of 450.org and specifically negotiate fees with them also. >> potential we could bring investment for [inaudible] february or 450-350.org. march. vicky, anything to add? board sorry. inflation. i am mindful and respectful of that, but up to members. this >> thank you. point, the members of 350.org >> commissioner makras. have not >> on page 19, 20 and 21 if you stated where to put the proceeds. also, something else is i-in look at terms of the footnotes the returns are lowering the rirfck i don't reported buy. [inaudible] maybe 10 percent net of manager fees. page 23 the oil at the stocks or 10 percent the market bottom it says gross of fees. value equities. if we sell the oil i thought what we received is net stocks of fees. [inaudible] unbalanced in the >> with the exception of the portfolio. what concerned me the most [inaudible] which is the trust is inflation protection. we heard testimony from many retire ease universe comparison service. the and have a cost of livering universe of funds is recorded gross, so the adjustment indexed to inflation. oil

stocks are only fair comparison is report our the biggest inflation protection followed by natural minerals, performance gross. so if we sell up socstocks we give up >> [inaudible] >> [inaudible] does not have inflation protection. [inaudible] where do we put the proceeds which is returns net. we can do our on troubling to me. so, that is a issue. so, attributions like on pages 19 and 20 but what i think makes a lot of sense is to find tux is out where should we put the only gross. proceeds. also if we sell the oil stocks, tell me how that will impact on global >> anyone else? seeing there warming? if we sell the oil stocks others will buy our oil stocks and be in less favorable hands, so i see no effect on is little the global warming impact by discussion let's go to public selling the oil stocks. what i learned comment. over the years being a mb of this please, come on up. you have 2 board is what will it take for me to get minutes. an affirmative vote? at first when i came on i was always right and

didn't have >> [inaudible] staff could give to consider that but as i get a sense older i figure what will it take to get of the risks involved to the my vote and thever is renewable. that portfolio. especially in terms of the is the future. for those of 350.org public equity. if they could comment that talked about the stranded on their assets for the coal company squz why you opinions about evaluation dont they levels in particular compared to think are good investments, tell me what is a good investment and historical how do we averages. i am trying to get a get to the inflation protection sense of-this goes back to the hedge and account for that and think that fund thing to some extent, what the is with staff renewable. renewables are believes is the most loickly renewable is and the a energy derivered from natural processes such as sunlight and worst possible downside risks wind that replenished to a higher rate than over the 1 to 3 years. they are consumed. renewables include but not limited to, solar, wind, geo >> you want them stress test thermal, hide ropower, thg port bioenergy, fusion and ocean power. that folia? >> i would like to see in is what we should consider to invest in general, do they think the market is widely those kind of investments. what i

over suggest valued or maderately, is there with my colleagues is consider a huge risk. the bottom line is i investing in those type of think the investments. fund can live through a 20 or how do we do that? maybe that is the challenge because they are not 25 percent [inaudible] i don't think it economically feasible. we see can be easily survived in a 50 china percent market and trying to get a sense how much speed has to be done to invested [inaudible] china actually had a red day where they are try to hedge that or whatever actually lessening because of the pollution where they limit the amount of allocation strategies a-this is historical buses, [inaudible] those kind of perspective they gave, but they must things. if you have seen a picture of what have opinions. they are talk toog managers all the time, is this- is going on in beijing, it is sad. is this a wildly over valued market or normally over valued market? the >> chair, can i make a comment? answer is invest in renewables, so how do we do it? >> jes >> i'll tell you how. yes >> ver quickly, the one year

>> i move [inaudible] return to the plan is 0.7 percent. very permanently and very low. we have been saying for a that we invest the money in while we expected that we are in a renewables. i'll put that in a form of a low return motion. environment and in fact, that >> second that motion >> we do something similar, we has happened. the news i have is have a clean air day. clean air day. not any better. if i had to modify the message it would be going forward san francisco does for our way of expect a low return environment and higher dealing with >> if i address implementation, volatility. we are coming off it isn't as easy as it seems. a change >> i leave the implementation up to in-about to embark in a change staff. on policy and we can have >> look at the private equity additional volatility on that. we are portfolio. we have a very long in the tooth. world markets relationship through arts diligent efforts don't die necessarily because of age, and [inaudible] the boards about they die because of detearating investing in fundamentals and sentiment. so far limited part numberships, we have partners that invest in these fundamentals are okay, they are not great but investments, so what i suggest to staff

is to come up with some of the okay. sentiment is also still okay. invesments that are in-managed i still think that we are in a low by our general partners in our return environment and good existing portfolio because we have to [inaudible] is address crit to in good returns the risk. we had long term >> i will have to stop you [inaudible] with many general partners up there and to 30 years so these are known moving forward but thank you for the entities where we can invest and direct investments in the renewable arena. i ink that is the best place to lower risk. you explungz. public comment is closed. won't see these in public securities mr. clerk we took a motion on market. that is the challenge of this this? no, not yet. we discussed kind of investment, you don't see renewables listed on the stock exchange. particularly the kinds we >> item 12, discussion item. should invest in. the private equity report on managers and review. portfolio has >> i will ask bob to make a done well. let me think the quick review comment and and haun and executive director of supplying the list unis to of the briefly and quickly update on renewables and many gp's have the due invested renewables so that is what i diligence conducted recently. suggest and recommend to staff to bring

to us >> my comment will be quick. various investments of there are renewable. i no additions however, if you would like to brink that to the look at the staff memo at the bottom forfront where we can listen to dependent on the results the core plus these investments because it is new uncharted tear tow. i think we do have higher recommendation, 2 products to think outside the box. if we do [inaudible] nuckting i think the global warming will aberdeen is under review. should the board agree with staff get worse. recommendations those 2 managers would be >> commissioners could i address the terminated and removed from this list. motion quickly? sb 185, in >> i don't have much to add that bill besides a the legislature did direct cal comment on [inaudible] made a pers and lot of calsters to devest from thermal improvements and we recommend coal companies from public traded review for 6 months but they made a companies. [inaudible] until 2017 to lot of improvements. we are fine implement. it also allows those boards to look tuning the individually at each thermal ima. [inaudible] i also vezted coal company investment and decide whether it is prudent or not to make pem co early october and were prepared that investment and if the boards to take

them off and heard about the decide in lawsuit so want to keep on review for a particular thermal coal company it another isn't prudent to invest they quarter and monitor things. >> thank you. don't have to invest. they decide whether >> did you mention prima? to deivist from a particular coal investment. i want the board >> i visited prima late october to just consider the process you are and we recommend keeping a manager on going through here in making a review for 6 months which is why we blanket are still deivistment rather than in review of q 3 but noticed considering the coal investment the system has on a improvements. case by case basis and deciding >> what improvements? >> they are submitting reports if it is prudent to devest. in a timely manner and responsive to our >> that has given something to requests. >> i thought we discussed there talk about. was a >> do invest in renewables is a change in personnel which is why the reports- >> the other reason they were wise thing to do for environmental reasons undeer as well if it can be done review is organizational [inaudible] we will continue to monitor that successfully at this meaning make aggood rate of time. return for the money, we should do it. to >> also waiting on any follow a shall sell on the public [inaudible] complete due diligence. ; you

market and shall invest in the private market have are isn't how it is crossing saying 6 months >> no, we usually keep a allocation mixes because it does say manager for a putting minimum 6 months. q 2 i general partners. i think that is a step that is more difficult to believe we started so this is q 3, so it execute than necessary. we can ask the has been 3 months, so judging what private equity team to focus on trying to find-i think they are doing it happens through the end of the year the earliest we can take them off already. it has to be here. it will is q 4. cause >> [inaudible] confusion to measure how the public portfolio is doing. >> more of a question. you [inaudible] did you amend it or make the asked [inaudible] that seems to have motion? i worked out. i can tell great things think commissioner makras fell one [inaudible] >> i understood commissioner about capital guardian. we have been with meiberger to be a strong suggestion and them a long time. they are a not a motion. >> we will have commissioner great firm [inaudible] is there makras clarify. something--i >> my motion had to work

prudently to allow staff and my mugz clearly said think we should [inaudible] they would bring back to renewables so maybe you have a big review coming and want to empower them on the jumping the gun. program to it. i specifically did not >> [inaudible] unlike our other mention the state because i don't like their definition and our holdings are roughly 21 million dollars so we are making a 21 million dollar judgment call managers they have a [inaudible] and statement to pull out and i think it is wiser for us to put our attention into the renewable area then fight over which of these thermal coal companies is the bigger polluter or several managers own a chunk of smaller polluter. as far as i'm the portfolio [inaudible] i think concerned, dumping them all is the right thing to do. from our perspective it is hard to >> commissioner stansbury. analyze all these different manager >> [inaudible] committee had a approaches and also look in the emerging session on thermal coal or coal in market portfolio, in terms of-their

general or the clean air act or the positions in china, having a dedicated largest polluters? local >> no. based china manager has value. >> why did we form the they understand the value and [inaudible] [inaudible] committee? they have someone who is >> maybe someone can speak to this. retiring this year so that is a concern we >> [inaudible] last are monitoring. >> i'll get to the question, recommendation was would you hire them together for this nob nub be to implement design part the portfolio, either the emerging and implement a strategic esg or [inaudible] i went through this policy that will not focus on bad behavior with of people we already invested in intech, staff was right about but is from the start of a [inaudible] the board was consideration of a wrong, but it investment, so we wanted it to is capital guardian. how long be a should i more comprehensive. we had one wait for a answer, next meeting quarter? of the esg committee and >> i do need to wait because i anticipate another meeting in the next don't want to say in public, but what month or so. is very difficult to get i say people in december and actually in is we are about in the 7th january to get

-there is 4 members of the committee maybe 8th and requires 3 people to be in inning of completing due attend toons have a quarm and have diligence in china. [inaudible] the money has been unable tocome from somewhere. to get the committee to commit >> no questions? to a date where we have a quarm >> i do have one. >> i know there are scheduling conflnts this is for vivian the with the esg committee. i think it is important that we convene on a emerging manager. and looked at the performance more regular basis. it is important in here and is it that the esg committee have a strategy. at this performance is time we have no strategy, none. so that-we don't have emerging we are shooting from the hip. i think that the proper place for this is in managers [inaudible] the esg >> and how did you complete the committee to evaluate what are considered maybe some of the due diligence. >> let you know what the due dpraitest polluters. how do we go after diligence and what you found out. it? as a board we said we are going >> in terms of emerging manager engage in level 2 which is actively lobby they are one of the 2 or 3 out companies and take a role in there. they had very serious organizational other issues and it really comes down to bodies dephrineed to lobby

companies and practices. to date we they tend to be very market neutral when haven't done any of that. we haven't done you look at the-struck chur but it comes anything. we do a great job talking down to stock selection among the about these things but when it comes to managers and their selection of managers execution we don't do. taking general over the last 2 years isn't tupe par of questions, what we i don't expect anybody to have expect from them. the answer. what is the outlook >> can you comment on your due diligence? for coal? can anyone tell what energy >> can comment. our recent due percentage is coal? when do they exspect diligence several [inaudible] there were a few factors that were coal to be replaced? [inaudible] what is -seem more contribution of coal to co 2 positive. they have reduced versus other forms of energy. i don't the number think we have those answers because of managers from 9 to 7 and we haven't looked at it comp hence ivly and don't have a strategy. can they are more high conviction choices. anybody on the board tell me how far they are any of hiring more seasoned staff these stocks have plummeted instead of hiring just out of under since graduate or october 8? the public soon after. they are looking to hire

more at the mid-level. equities. since oct8 these coal companies the performance is a issue and it continues to be something that is monitored. stock prices have gone down, some as in the much as last quarter they have improved 40 percent so why would we want to sell somewhat i would say. now? if we want today do something it [inaudible] should have been before this was enacted. if you go to the >> maybe this is a manager that stocks for these companies, the innuckz is under review since i started here in point is the day this law was passed, july. [inaudible] soon after she started earlier this year in october 8 so while are we looking into march. i conducted due diligence along this 2 with mark months later? it is and vicky in july. [inaudible] reactionary and don't have a strategy. i agree we need to do something and look at conducted further due diligence alternatives but we dont have a on site in november. i think things have improved. their staff turnover is stabilized. vicky mentioned-they hired a lot of people in 08, 09 and 2010 during the crisis where people didn't have a lot of opportunities or

alternative opportunity in the financial industry. they hired [inaudible] as soon as the market picked up they had other opportunities. [inaudible] that was a personal decision. they were a husband i wife team that moved back to chicago. i hear stories because i never interacted with them but it seemed it was a personal issue and had nothing to do with the firm. they hired a consultant firm out here and she unexpectedly left last year. more recently her firm is bought out. it is hard to

understand what is behind the scenes but that [inaudible] that may have been a personal decision. >> another quick comment or two on this is that we can understand people taking advantage of opportunity in the market place but it also speaks to the organizations capability of keeping good people, so the bottom line is this is under careful watch. you heard numerous site visits that have taken place in the last year. >> [inaudible] they reduced the

manager count and the 2 managers [inaudible] have been under performing and it was a smart decision [inaudible] >> i can't hear you. >> like to continue to see the information to do the due diligence. >> i have questions. aberdeen says nob nub no reg yelltory activity and it is highlighted red. is it just a call out that it is no or severe warning because [inaudible] but it is isn't highlighted red. >> it is highlighted red under

vivian. [inaudible] >> there is pem co emerging market 25 local and 35 percent corp. it is lauls labeled no. what does that mean? what are these companies lacking in? >> pem co if you recall unis made a comment about bill gross. that was the organization issue and he departed from pem co 2014. he was a founder of the organization, ran the largest fund but had no involvement in this projeskt project. >> organization can get dinged with a new even if they go through a natural reorganization that organizations naturally go through? >> absolutely. the president

of a organization decides to retire we put them under review out of caution. >> anymore discussion on this item? take public comment. who want s to comment on item 12? no one. are you getting up to comment? public comment is closed. bring on the next item. >> item 13, action item, core plus fixed income request for proposal of hire recommendations for baird advisors. >> dan works closely with alan at nepc. this is recommendation that accomplishes part of our objective in fix td income, which is to create a larger pool of higher quality safer assets in fixed income. that

is the part that you see. previously you had seen private debt investment and that is the part where we get higher yield, shallow j curve and the like. very good income but in a different way from the past. i'll turn it over to bob and unis. >> i will pass to unis. we also have colleagues here to present to you. >> good evening. at the december 2015 retirement board meeting the board approved a [inaudible] fixed income rfp which welcomes [inaudible] at the august 2015 meeting staff presented the finalist which the board approved and it included the 3 incumbent managers, aberdeen portfolio [inaudible]

baird, [inaudible] sthins august bourd meeting staff conducted due diligence which includes reference calls on former and current clients and these calls were conducted by myself and joshua man. [inaudible] after completing due diligence and examining the characteristic of a fixed income portfolio or recommendation is hire baird [inaudible] 700 million and income research and manage also known as irm to manage a government portfolio with 600 million. allocate roughly 530 million to the [inaudible] this is a fund managed [inaudible] the

board retained [inaudible] in 2012 and our investment is 340 million dollars [inaudible] both firms and teams are very stable and have experienced low to modest turn over [inaudible] competitive management fees and both products had relatively stable performance track records. the funding for baird [inaudible] will come from the termination of the 3 income bnt managers. [inaudible] aberdeen, [inaudible] we recommend termination

due to organizational concerns. aberdeen made a series of oppositions. [inaudible] most occurred over the past year. we are concerned about the firm said commitment to the fixed income business. [inaudible] finally, as we look [inaudible] concerned about the amount of credit risk. [inaudible] stone harbor is not on the review list at the moment and have no concerns about the organization or team sh someof which are very stable [inaudible] however, [inaudible] we are concerned about the amont of credit risk associated with

[inaudible] our recommendation is [inaudible] so this portion the portfolio will provide downside protection in the event of a economic downturn [inaudible] we expect to see improvement in the overall credit quality of the portfolio. page 16 and 17 show the characteristics of a current portfolio and 17 shows the recommended managers. from there you can see while the yield slight decreased the credit policy improved. pages 18 and 19 those charts try to estimate the credit quality of san franciscos total fixed income including [inaudible] we assigned a b

minus credit rating. that would not be rated and think a b minus is conservative estimate given those strategys are in non distress. replacing the incumbence with recommendation will improve the credit quality. one last comment on fees on page 20 shows the [inaudible] along with the final fee proposals. i did go back to irm and [inaudible] successful getting lower fees for san francisco so grateful for them for partnering with san francisco on this recommend. on page 20 when you compare what they currently pay the incumbent versing the recommended manager

we see san francisco will save at least 1.5 million in fees. [inaudible] baird we have a cio [inaudible] along with warren pearson and from irm we have portfolio manager bill [inaudible] i will turn it over to [inaudible] for additional comments. >> i'll start by saying we are 100 percent supportive of staffs recommendation and know both these managers [inaudible] we are at the end of a 30 year period of declining interest rates and we have been looking to reduce the exposure within the fixed income and anticipated rising

rate of environment and reduce the risk profile within the fixed income allocation that the plus portions the managers are below investment grade risk than we prefer and think there is juice to get there but the way the existing managers were doing it is a little riskier. our view of [inaudible] is 0 to 50 basis points and maybe 50 to 100 [inaudible] we think you identified managers who have consistently done so hist orically. i want to think about this from a portfolio standpoint, the goal is reduce the credit risk and core allocation and do we meet the goal. the simplest form is on page 7

where there is a chart describing what the risk profile of the current allocation versus the proposed allocation. now thrks core managers so the existing [inaudible] account for more than 50 percent the risks taken within the fixed income allocation, that is a large number for your core managers. the new proposed allocation drops to around 20 percent. that is something we are much more comfortable with as we look at the hol istic fixed income profile >> anyone- >> where you get alfa? >> that include abry

[inaudible] i would say san francisco has a strong advantage and successful getting in >> like bar bell. >> yes >> are you expecting the market going forward to have credit issues? they already have had credit issues, do you expect more of that? >> we have to be mindful. i wish i could predict when that will happen. we do know it is coming just don't know when. [inaudible] >> i get it. >> i agrow with that. i don't know if it is 16 or 17 but there will be volatility. >> i support it. do you need a motion? >> that is a action item >> motion to [inaudible] >> is there a second to that? >> i second

>> motion made and seconded. >> one question, it is about baird. i see the comp tension they were bidding gans mpts among all the bond managers are they one of the best? >> i think so in terms of core plus i thipg so and they are the best where fr what this portfolio needs, >> what is the duration? >> around 5 years >> that is intermediate? >> yeah, >> we also use baird in the differed comp area. >> yes >> we got complaints from baird saying they are inferior from others. i am trying to understand what

that gentlemen is sum plaining about >> if you are looking for a safe investment it is a good investment. if you look for equity returns it is disappointing. >> i want good bonds. >> i want to talk about credit risk. i look at the staffs report, this is page 29 and 47. you show the at buttes of the different managers. i'm seeing a lot of corporate bonds for baird with lower credit ratings. for example, 21 percent [inaudible] 22 percent [inaudible] and 10 percent junk which is below investment grade. these are higher than the bench mark, so this will run a credit risk so if the economy goes south, this will be-have poor performance. can you reconcile the fact that if this can be

[inaudible] this looks agreessive to me. >> so, out of all the core plus you compare against others and are one of the more conservative ones. our incumbents go up to 15 percent [inaudible] also, baird will focus on the e double [inaudible] who focus on [inaudible] they are sticking to the higher quality. >> [inaudible] they are conservative relative to peers and conservative to the incumbents. >> yes. >> but in the case of a weak bond market and higher credit spreads, this will have poor performance. >> commissioner, our bond portfolio lost about 15 percent in 2008, this won't lose anything close tothat. we

may lose single digits. >> okay. >> they lost 1.58. >> you are comfortable one [inaudible] thalities that's it. >> lets take public comment. item 13. no public common. comment. thank you. the motion is made as well as accepted. we take this same house same call. thank you. motion passes unanimously. please call the next item >> [inaudible] request approval to [inaudible] global custied securities lending.

>> thank you. let's-in the interest of time i assume that we have read the materials and just dive into our questions. >> absolutely. no questions on this? did you have any questions? i think it will be quick. [inaudible] >> questions forwarded to [inaudible] >> herb meiberger. >> what i'm concerned about is if we issue this rfp will those questions be answered because there is a black out period so if we approve that will that effect the outstanding

questions regarding these [inaudible] >> absolutely not. they are a existing vendor and request from commissioner makras detailed services they provided in the past so it won't impact. >> okay. >> let's take public comment. >> you just can't accept the invitation [inaudible] because the black out period starts today. >> yes. >> [inaudible] from northern trust to attend theirtheir--[inaudible] i want to remind the board, we can have a better discussion on this, but during the black out period with existing vendor there are certain things you can engage them while a rfp is pending. it doesn't shut you from dealing or answering questions for a

vendor in this case northern trust but we need tomake sure both sides are aware nothing is set our exchanged during the black out period that somehow benefit them or give them information relate today the rfp. just to clarify, it isn't a black out to existing vendors in the normal course of business a board or staff member needs to deal with them regarding the current contract. >> i got a invitation from northern trust inviting in terms of invitation to arrange a on site visit to [inaudible] trading and lending [inaudible] is that permissible? >> absolutely, that is a service they are providing to us and if you are interested going to their training to see how they execute trade on our behalf i don't believe that is

a violation. >> it is a genuine offer? >> he didn't make the offer so we don't qualify [inaudible] >> we are happy to arrange a trip but you need to limit your discussion to the services they are currently providing and not answer anything relate d to the status or [inaudible] of the rfp. >> the board mb can not discuss any other vendors >> other vendors no. >> thank you >> anyone wants to go and kthey talk to the exectev director and [inaudible] >> on [inaudible]

>> it is bidding on both [inaudible] >> it is broken into 2 and they can vote-asking them to bid on custied and security lendings. this goes back to the 36 years we had 2 years ago. we are back to that point >> let's take public comment. >> thank you president cohen. patrick shah. opposing the staff recommendation to issue this rfp now. [inaudible] the securities lending and cash management [inaudible] black swan [inaudible] commissioner meiberger served with me revealed

northern trust had frozen our cash account in 2008 and [inaudible] be able to pay pensions. in the process the [inaudible] at least 27 million. october 14 commissioner makras submitted the questions to [inaudible] regarding northern trust. on october 23 mr. coolish responded only to question h. the other 14 questions appeared to have been unanswered to date. commissioner makras most important question, question g, involved actual realized losses and projected unrealized losses, which losses may involve at least 71 million, not 27 million. some observers

shared they suspect losses may involve over 150 million. a new black out period may not matter, mr. huish must answer the other 14 questions. until then please vote against issuing this rfp today and return the mat toor the call the chair until and unless mr. huish finishes answering those questions. it shouldn't take months and months to respond to a information request from one of your board members. the examiner reported this morning. >> public comment is closed. this is a action item. the house changed, so i would like to record to note that commissioner paskin jordan is not here but we can take this item

without objection. there was a motion made. no, okay. is there a motion on item to accept staff recommendations? no motion? i would like to make a motion. is there a second? second by mr. driscoll. without objection this motion passes unanimously. you can ask a question on item 15. we passed it without objection. thank you. mr. clerk can you call the next one? >> information item chief investment report >> if you look on the curve page for the month we essentially broke even up 3 basis point and we are down fiscal your to date down 45 points.

[inaudible] calendar year we are [inaudible] fixed income returns are very very low. throughout and international equity in particular had a tough year and that is primarily related to currency. if we do hurry back to the memorandum on item number 2, madam chair asked for diversity of overership have management report and that is included. item 3, arcadeious, this was brought to the board 2 months ago. it closed on last day of november. we got 35 of our 50 million dollar allocation. total bravo was brought to the board last month and closed a week later and asked

for 50 million and got 35 million. indicative of the competitive nature for capital with top tear managers. a important event took place on november 30 and that was the chinese wan currency was approved as a reserve currency by the imf and there are a couple articles referring to that for it boards pleasure if they would like to learn more about that. i'll turn it over to the board for questions or comments. >> any questions? >>ime are not sure if it is a question or [inaudible] only 13 of the 18 managers provided information.

on a fixed income, only 1 out of 9. >> i can explain and may need alans help on this, but this is taking data that they already captured and so in their data collection for nepc is they are asking for owner ship. they only had one of those 9 and it isn't that just 1 of 9 had a diversity in fixed income, but only 1 of the 9 reported. >> [inaudible] >> that's correct. we would have to reach out individually to find out more about the other 8. >> how long did we give them to

respond? i can't see how someone woulden respond to a inquiry if we are asking a simple question and they are a manager. >> i clear up this isn't a inquiry from [inaudible] this is what nepc tracks for their other clients including us and would invite alan to come up and clarify that just to make it very clear [inaudible] this is data that cambridge has and [inaudible] you may want to expand on the efforts you made to get the information from the other 8 managers. >> [inaudible] jay stated it accurately, we have data on managers

where we developed the data. when this came up we didn't have time to go back and request the same information. it is something we will plan to going forward. that information gets into [inaudible] so it is a little less useful. i think when you talk about private companies-- >> fix td income managers are publicly traded [inaudible] >> thank you. >> anyone else? is there anything else in your report? >> highlight. those were the key-closure of the couple private market deals we discussed in closed

session. the continued difficulty in the returned environment and the diversity report >> i want to say thank you for calendar the items that i made the request for, the report on diversity and management. it isn't what i was looking for but snds the constraints. what is presented it indicates there is a lot of work that needs to be done in this finance field. i thipg with that we'll take public comment on item 15. please, if you like to come and talk about item 15, now is your time. okay, public comment is closed. nis this is a discussion item. let's call the next item. >> item 16, discussion item. differ defered comp manager report.

>> you have before you the monthly activity report. given the time i won't go into details, but i do want to let you know we are happy to report we hired a newmanger who will start next week. she has 10 years of experience in the financial industry in the private sector with investment and product management background. >> thank you. colleagues do you have questions about the report presented before us? stansbury. >> i want to saw thank you for taking on the differ comp time. i you have a regular day job and this is in addition

to that so want to say thank you. >> let's go to public comment. public comment on item 16, managers report, defer comp. seeing none public comment is dlozeed closed. item 17, executive director rorts >> you have 22 days to complete your harassment training on the line which is a requirement of all board members and if you have a difficulty accessing it via a laptop or i pad you can come here, we have a pc on the floor. [inaudible] also reminder this friday we are having our holiday party down the street at the cadillac bar and grill starting at 2 o'clock. i also included letters that president cohen received from 2 judges who are

currently active judges who have become members the cal pers system and request that we investigate ways to provide them limited reciprocity in order tobe placed in what cal per cals the classes of member system which means it would be not the most recent pension reform plan. what we are doing is we are working towards drafting an ordinance that president cohen indicated she is willing to sponsor through the board of supervisors that we believe will provide a resolution for this issue, meaning that for those active judges who were members of our system, if they can currently retire with the judges retirement system and our plan we recognize the salary they

earned as judges which we believe will meet the cal pers requirement. also we provided you 2016 board meetings date and want to point out that the january board meeting will not be the 2 wednesday, it will be the third wednesday of january , cl is january 20 at the request of presidents cohen and all the rest of them will be the second wednesday of the month. that is my report. i would also like to-because the new defered comp manager is showing up monday doesn't mean karen is finished, she is transition but do want to recognize the good work she has done while trying to recruit. it was a difficult position to recruit and confident we found someone that is very well qualified and look forward to you all meeting her. >> i have a question for you,

this goes to the judges request regard thg limited reciprocity. what is the-how long do you think the process would be? [inaudible] the language, by the ofend this week or monday i may be able to introduce it tuesday, which is our last board meeting of the yeerd and we can put go into 2016 with this behind us. >> we are wait toog get clarification in writing from the judging retirement system. that is what we propose will fix it for these judges. we asked the city attorney to begin drafting the ordance so if it can be done in the next few days we will get that over to ayorks but we are waiting for before we proceed down this path we want to make sure it is something that will be helpful

>> fair enough, do you have any other questions? >> a couple follow ups. at the october board meeting, october 14 there was issues of lending. i think 2 months is enough time so ask they be answered regarding the freezing the cash account. the cash account was frozen in the second quarter 2008 and benefits to pay and so the question is where was that money to raise the benefits? i guess patrick is not here but he sited the black swan report which is a report by one of my master students. fisdle year 2009 [inaudible] benefit payments of 7 [inaudible] since the cash

accounts was frozen, 14 percent used for benefits were lots [inaudible] other assets were sold [inaudible] the question is, it is 2 month, mr. shah was asked how do we make those payments? >> i believe mr. shah answered. we did set assets to pay benefits. >> we did sell assets. i can get the list. it was a mix of u.s. [inaudible] which were relatively liquid and you were correct that we did at that time have an emerging market [inaudible] >> it is 2 months. we need process here. the board is in public session, these are questions raised in public session, 2 months nothing happens, i would like it a written response. can i get it in the next 2 weeks?

>> we'll do our best. i speak for the entire staff >> i think that is plent a time. that way we won't get criticisms i read in the paper about staffs lack of responsiveness which i think is poor. ologist also i want to address responsiveness to the members request. i will give a specific, this was a member has written 3 memoes, come to 2 board meetings, never got a response. this is mr. [inaudible] >> he represents a [inaudible] >> let me be specific and i brought this up the last time, he dissevers a response. he has written several memoes, one dated april 6, 2015. october 2, 2015. september 7, 2015 and wrote another december 8, 2015.

this is 4 e-mails. he asked questions regard thg defered compensation plan and not got a response. he came to public [inaudible] he came to 2 board meetings and defer compensation meeting and no response. we have tohave policy if a member writes a request or on the phone he get a response. >> i was at those defer comp meetings, what request is he asking for? >> he talked about fees and the blended funds and had concerns about the expenses. many concerns in writing. >> i talked with him after defer compensation meetings and no other members have as well. a lot of his questions have been answered. i think that what he is actually pushing for is

he wants a different fund in the line up at the ofend the day but we are not in a position to grant his wish, there is a process. >> you are misinterpreting. you were copied on this. this is dated decemberathy, this is someone who represents a member. dear norm, please cc to all board members. i urged the board to review the hedge funds for a year and my comments are mostly ignoreed [inaudible] the hedge funds. give 5 reasons to invest in hedge funds. let me finish. number 2, for our dc plan talks about blended funds and perfornl ance, he talks about why need a active fund when they cannot

perform a index fund. what is your cash position. these are lujtimate questions he hasn't got a response to. i think we have need a policy. and don't think it is appropriate to smile and laugh. >> what is not appropriate is chastise. >> i think it is inappropriate when i talk about responsiveness to members. this is a bad reflection on us that we condone this kine of behavior and don't want enable our staff to respond to lujtimate questions. it is poor reflection on us >> and also a poor reflection is when we burr at and belittle or staff members. we will continue to move forward. [inaudible] have you complighted your report?

>> i have >> we will take public comment now. anyone want to comment on the report? okay, public comment is closed. thank you for giving us something to talk about, jay. next item. >> [inaudible] >> no reports this month. let's take public comment on the fact there is no report. no public comment. closed. next item >> [inaudible] our favorite time of the day. second favorite. hold on. i will finish with you. anyone on this end? meiberger. >> we serve the members. the members are our customers. we have to have a way of responding to our

customers requests, oralally and in writing. we must have policy. i would like to have executive director bring home some kind of policies. if a customer writes a e-mail, how many days to get a response? if a customer has a phone call, how many day tooz get a response? if a board member make as request, how long does it take to get a request. i don't say this lightly. i had public records request thereat require response in a certain period of time and not responded to. that is wrong. i don't know how to say it any other way. if by law the executive director must respond and there isn't a response that is wrong and our board to do nothing enables this policy. what i suggest is simple, for the executive direct toor come back, how men

adays to respond to e-mail or telephone request to serve the customers that elected me to sit at this table and serve the members as well as [inaudible] we are here to serve the customers and i do not think we are being-the customers are being served by a lethargic responses. >> mr. makras. >> [inaudible] turn it into a positive. maybe we can be presented with what our communication policy is across the board. i'm sure it is different for a letter that asks lots of questions versus, i want to retire or will you give me a status of my account i am thinking of retiring. we have

a multitude of information that comes in including a phone call of where is your address so maybe the general manager could share what his communication policy is to his team and we can review that. that is a starting point. i'm sure staff members have guidelines on a response and goals and sure the investment team is different and have a personal interest knowing how people that want to do business with us and send in their material, how that is logged as a example if a person says i want to be a manager of yours and we are not putting a rfp. do we keep those letters and reach out and say you inquired about it and here is our rfp, please bid. there is a lot of good management we can put into

communications. >> thank you. that is a positive. any other good of the order-seeing none let's take public comment on this. >> [inaudible] many members inquiry with many different kind of questions and go back to to the fact several point in my career i had the responsibility to answer question and among the types of programs that we worked out is there were some requests that came in, if they are sunshine ordinance there are a number of deadlines that must be met and had those logged and calendared and

there was a process to make those responses. some we had a log where all communication came in and it was logged and assigned and there was follow up to see if those responses were given. if nothing else the first thing should be a note or call that acknowledges the receipt of the question or inquiry. that is the first response and that tells that individual that their request is being considered and they have been heard and something will happen. you might indicate that we need extra time to get this information and can't give it in a week or 2, it make take a month but at least that acknowledge and think it is reasonable to request. when those calls come into the office or i get the e-mails or the phone calls from our members we do our

best to respond right away. i will comp lment norm every time he gets a call, he forwards that instantly and we get that opportunity to then respond to those members. i think it is really really important. you are here to serve us. i have been on a benefits board and always responded as quickly as possible to the members in health service and think as constituents and members the system we have a right to expect some type of response and acknowledgment and it isn't that difficult to work out a program internally that will have a falloy up and track all the responses so we know the different kind. i cu-mind your commissioner meiberger, thank you very much and hope you come up with that policy and procedure for this request. >> thank you, next speaker, please. >> herbert wineer. one thing

about responding in a timely way reflects the overall perfirm ons och a agency. it strengthens the agency and enhances performance. i'll give a example of a agency that isn't working and that is muni. trying to get a response from them, try to get some insited into their internal operation. they are concealed. all they do is focus on external performance instead of internal operation. everything should be transapparent with a publicancy. i think this is very important. this problem is was an example and may be the tip of the ice burgism i

say this as a person who has a stack in the retirement system and want to serve everyone at the public agency and think everyone in the room shares that common purpose. having rapid responses , being honest in the responses is all to the good and think what commissioner meiberger and makras sited it strengthens the system. thank you. >> anyone else? seeing none public comment is closed. what is next? >> legal briefing. >> thank you. we are not done yet. we need it take public comment. we are going back to closed session ladies and gentlemen . anyone want to

comment on that? please do >> larry bar settee, this time as chair of protect or benefits, first of all i want to say, we at pob have nothing personal gaest the city attorneys office. we bloobelieve they are competent people and have the best interest of the city and county of san francisco at heart, however in this case we don't believe that they have the best interest of the members of the employees retirement system at heart. we can't know what the city attorney will advise, but we do very strongly urge you to obtain outside unbiased council on this question because we are talking about things where the city is a advusary to our position and the vast majority of the retirement

system agree with the pod position. not only [inaudible] the law is on our side but other attorneys that i know for a fact he has contacted agree that the law is on our side. i just want to say as you noted here in your anticipated litigation, if those 8 thousand people don't get the same treatment that the other 18 thousand get, we will sue the employees retirement system for ferrule failure to follow the charter. >> i have a question. this is a follow up. [inaudible] a judge issued this order that awarded this case. in this case did not the judge have the

authority to require us to comply? >> yes, ma'am. she did but did not >> why didn't she? >> if i could answer that- >> i'm trying to understand why she didn't. she had the authority but didn't. that is something i'll dig into and better understand that and think it is- >> what the writ says is the cout is nearly following the judgment of the appellate court. she passed right straight through the judgment of the appellate courts and sites the issue on the question we had. >> judges or courts side step or don't answer for a reason and i wanted to see if you had understanding through your counsel thrr reason why. it

isn't a omission and didn't answer it, there was a reason why it wasn't addressed. >> we do not know that reason. she never indicated that >> thank you. anyone else that would like to speak in public comment? >> [inaudible] representing retired employ ease of city and county of san francisco. we strongly concur with the comment of larry bar saet and strongly support the efforts of pob. today at our holiday party meeting we discussed this very issue and our members are concerned because a significant number of the members are among the 8500 disenfranchised. no sooner that we had this discussion that one member who could barely afford it came

forward and gave me a check for 100 dollars saying we firmly believe in your efforts and what you are doing and please compel the retirement board to protect us and treat us as equal members and follow the charter. we are all in support of pob on this effort and believe strongly in the charter and read and read and reread all those sessions and very certain the charter is very clear in your responsibility and due diligence and the answer with regard to this disenfranchised group and we are all entitled to that supplemental colea. >> thank you very much. >> i want-[inaudible] i want to respond to the question you asked larry bar settee. >> thank you. >> i sent a memo to all the

commissioners and the last part may address the question you just asked larry barsettee. what i stated in the memo, one issue i would like to diss cus is the use the word may in the court of appeal decision and lack of reference to a charter section that lies in the principle that the court has no authority to the change this. the [inaudible] not part the actual decision. in this case it appears the only [inaudible] implementation of the charter alignment is through a charter amendment. without such a amendment there is no discrugz but compalestine with the existic language and as you know there is no such language to withhold the supplemental colea

from the pre-[inaudible] the 2011 measure does not authorize fully funded condition to apply to 1996 retireees [inaudible] maybe that will help >> we will go into closed session and try to figure this out. >> thank you for sticking around to the last item. i appreciate your comment >> for this closed session you take a vote. >> shall and entertain a motion? motion made and second. made by meiberger and seconded by paskin jordan. we are going into closed session. without objection? passes. thank you for joining us. 6:25. i like to entertain a motion at

this time. >> i'd like to move [inaudible] that we respect the items in closed session. it requires further discussion [inaudible] >> in the next board meeting is january. january 20. is there a second to that motion? second by mr. driscoll. the motion passes unanimously. [inaudible] i also want to make a comment my husband is a pre-96 retieee so want to make that clear that people have that knowledge in the commission. >> thank you, we appreciate that. are there members the public that would like to comment on this? >> [inaudible] >> thank you. is there public

comment? no public comment is closed. motion is made by commissioner stansbury and second by commissioner driscoll. the motion passes unanimously. any other matters before the body? >> [inaudible] >> any other matters before this body? >> no calendar items >> this meeting is adjourned. thank you. [meeting adjourned].

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>> creating place where people can be active and lead, active, healthy life styles that are going to just stay with them for life. ♪ >> tuesday, december 8, 2015, is now called to order ms. casco roll call. >> ms. fewer mr. haney ms. mendoza-mcdonnell ms. norton mr. walton ms. wynns dr. murase and ms. chin and mr. totiano. >> please join me

and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. >> if no objections from any colleagues there are many members of the public who are here for the