there anything that jumps out first of all, to page 13 that goes through the clauses a set of stunning fabulous that was brought up international equity over the last 5 years the most disappointing on the list of 2.16 when you look at directly on behalf of it u.s. equity is going set close to 12 percent there is a couple of things currency is worth about 4 hundred plus returns we didn't get we heckled back the exposure it would have add 4 hundred base points over the years now currencies are all over the place we united continue in the future the other thing the

comparison of international versus the us is apples to apples it is e m so you can see the new developers developed a bit closer the u.s. and this comment was made we meeting met with the ceo from black box the the financial crisis so go into the remaining non-u.s. development world was further behind when you got to 2011 you're looking at the u.s. economy or the u.s. capital market was lagging behind so we were prime to take off and in my opinion that is the excess return the other they know we did this is something that bill spearheaded they meet to discuss whether or not there are

opportunities from a version to take advantage of this market and whether or not it make sense to europe allocations to the e m definitely the most disappointing i's non-market and adding to the non-u.s. again, the relevance between u.s. and non-u.s. has reached a point would you believe in capital market versions that are in front of us from a capital market prospective those are the summary of my comments i'll let the rest of team jump in about their information. >> we don't quarterly information for the fourth quarter overall the market is down and the s&p is up and s&p was up 1.4 percent and developed

market were 4 point plus percent and down e m is weak bounded back less than one percent down 15 percent for the year the weakness is about the economy in china chinese dollars were down and didn't get hit on currency the global concerns weighed out the - that country was down 41 percent and over thirty percent due currency expanded 16 percent positive sectors wer customer staples and care and i p respectfully and we can go into the manager information if you have any questions

any comments on the market so most notably in the policy we had look at impact of 16 and the market not as much as we think but those government related securities both post negative returns not only for the quarter bureau the 2015 and the high yield a negative 2.6 and down about 5 percent for the year we did see some diversity the market but the u cd and japan economy and finally come dots are up in the quarter as is opec failed to met the consensus.

>> board any questions. >> colleagues, any questions. >> on this discussion item yes. >> please right now. >> on page 16 the private benchmark are you sure that's right. >> yes. this is still the s&p preeflz. >> you're sure that number is reflective i come up with a significantly different would be the 5 hundred number. >> i know about the change and which column are you looking at. >> i will verify that thank you. >> anyone else? >> you're sure director.

>> all right. >> commissioner, i commissioner driscoll i see the numbers are very close yeah. >> you know the answer to that. >> they're very close. >> yeah. >> any other i don't think there are any other questions we're done thank you. >> yes. we'll take public comment at this time on item 7 seeing none, public comment is closed. last week to call item 8 >> discussion manager shaw supervisors this is as companion item just a quick kind of of comments we added don't mortgages managers to the

international core equity port commission proefrm related they've gone through a tough times specifically the thirds quarter of calendar prior year very good core perform to discuss with them this is the longest serving equity managers we think their performance is disappointing that is a long serving managers this is gm o tom co-sponsorshiper the portfolio percentage he's actually at our board for the interview when we first interviewed him hesitate retiring we're fortunate to a degree his portfolio i'd like to take the opportunity in a has been over 10 years will be taking over and to discuss u discuss that and we understand

and have confidence the manager we have one removal for the two plus products again successfully a hired a new core plus managers those managers since termed into were under review for organizational concerns and added to the status since we've gone through issues and feel confident we have the issues d that concludes the report. >> when are you meeting with. >> whom. >> haven't set and meeting. >> i'm curious about their performance you're right a long term relationship and their performance over the last. >> well the numbers the third

quarter of 2015 there were two or three hundred points behind the beverage. >> we've met with them the last 6 months several times we haven't - we've been keeping in touch with their portfolios it is usually over weight they were a year ago before you i'm not sure this is huge title. >> have we've seen any movement. >> i don't think we've had that much. >> our process. >> i saw them a week ago it was a merging market. >> it is not - >> i'd like to know too. >> big firm. >> yes. we'll give you

details. >> commissioner driscoll that went into effect a year ago my general question is any puc pc going to comment am i missing something. >> (inaudible). >> i'm sorry you'll have to come to the mike. >> are you part of panel or not neutral so are you part of the panel or not. >> he's sitting at the general meeting. >> less talk about the guardian. >> residentially. >> we review those with staff and putting the managers on the watch list and that's been around a link time and perhaps

the best international manager has suffered over the years and lyft a couple of managers and it boils down to growth of assets a ton of assets and assets are the enemy of performance the long run in emerging market they've got a long emerging market they've i can see they've process has innovate kept up with the market and we agree they should be reviewed it is painful they've been around and we've cut them back i think that requires a hard review that is basically what i seen the marketplace i'm curious another performance numbers if you are taking them out the portfolios you should look at that closely.

>> we've mentioned the capital guardian. >> the other question for the consultant your opinion about any manage is useful but the general allocation the report about the failure it is a quarterly report anything else you want to tell you. >> bob has highlighted the position of portfolio our close to our target if you look at the northern report on page little chart that nicely summarizes the risk position. >> i bind them over. >> page deae /* /- 21 and 22

our your performance extraordinary good versus our peer group in the top 10 percent at page 22 your risk positioning the portfolio on the 1, 3 and 5 basis the green squad car you see on the return basis on your at top of chart our risk position is neutral that means relative to our peers h you had an equity exposure on the high side we think that positioning going forward bill talked about moving the portfolio a little bit to the left by taking the assets out of things like the equity and moving them into the defensive strategy doing more eunice

talked about in terms of indexed income portfolio a more fixed strategy and defensive and liquid government core and more the private debt to look at the global banking market and energy we're cautious but we think is that it takes time for the oil. >> commissioners a report you might want to reopen we're on the managers under review at this point. >> so we're on item number 8. >> i'm sorry, i meant he's talking about general portfolios performance that was item 7 item 8 is managers under review to the extent it should be limited to the subject with the managers

under review. >> you've heard the council. >> we've talked about the managers under review. >> perfect, thank you. >> any other comments. >> yes. if you're going to make respect to the peer group know who is the top that may not be a relevant ground peer group so that peer group may not be a useful thing i'm sorry, i was waiting to speak so this line of change that is the first time it happens like that. >> we'll make the adjustment. >> our oversight. >> commissioners any other comments nope go to public comment on item 8 item 8 any members of the public wants to comment seeing none, public comment is closed thank you very much staff appreciate our presentation could you call negligent number 11. >> item 11 an action

recommendations to gadget city capital and the capitals there is a seat at the table now thank you. >> commissioners on we're very excited about bringing you our first country's specific strategies those two managers we have gotten to know very, very well, now you've known one important gorgeously 7 or 8 years the two managers are respectfully outperformed by 8 ando percent the one at 8 percent has done so with less than half the volatility of the benchmark and an equitable

amount of comboikts haitians will walk us through the actual recommendation i am going to talk about the macro environment and a little bit think was managers if you think as an active manager you want to be involved is market like china we look at global growth depending on what the high ends and low end numbers and 7 percent they think is going to grow over the nearby 5 years and a export driven old economy to an developer communed if you're good evening to be an active manager discriminations between companies that moved in the new economy and companies

that are not an active manager has look at how the industries are set up didn't help you if you participate in the chinese market this is why we're excited about the china managers and look at the other manager on the ousted performance numbers we see china a or the csi numbers this helped us with the two managers an outstanding comment both of the managers are chinese based but recommended the united states that is how serious they're taking the candidates so those are the teaches managers we want to participate they get

governance and that's what allowed us to get comfortable they understand the needs and wants of the large institutional investor now to han. >> the sourcing you know the number of meetings are china based managers and on the mainland and also, if you do that and actually walk through the recommendations and have the department with any d.c. in bringing this together. >> sure so we did a process and ends with the 7 managers based in china we narrowed it down to 7 bill and i had experience working with our prior employers investing in china and a number of investors in europe and have been active those are the top

names that came up with the 7 managers when i spent a week in china you know by a zinc and shanghai we met a lot of side auditors and staff we felt comfortable with the managers and selected two based on performance but we wanted high standards in terms of government compliance especially for this is important for china once we narrowed it to two we asked them for the research and have a more detailed memo we can't provide in open session but we can provide that offline. >> it is 15 or 17 managers

that are here or in china before narrowly it to the 7 we thought that best from those 7 narrowed it to the two. >> yeah. we wanted to focus think global and mixed managers that are in china they're also a number of asset managers last week bierman and wilton and that are trying to get into dhiens they have less experience their tracking is not as strong but we had discussions with them too. >> walk through the recommendation sure today, we'll recommend an have felt of the $200 million to two inevitability managers all capital and springs capitals they'll be part allocation within the public comboiktd those managers are based on in china

which are stocks incorporated in china and shanghai and changes and treated the local currency those managers are deep knowledge in local market and excellent fracture records we see those managers also complimentary while contributing this is the first non-u.s. participants last week bill said in the portfolio we think that china warrants two mandatory now the largest country country based on the gp d purchasing power authority and continues to cigarette out pace the development china is growing about 4 to 7 percent development market are growing 15 percent so the slowing growth will out pace the development market

china is the second largest financial market in the world, however, they represent 34 percent is not the engineer comboekts and working with the china authority to change that the china have improved the market assess and the number of strategists will include china if this was to happen we'll be institutionalal benefits theirs larger and the shanghai stock exchange opened in 1990 the market is young and in a position this is a great opportunities for that asset managers to add values and you'll see about to present all the criteria first recommend $200 million to the

asset return it is a long product and pain equity more than 12 percent in returns on a 3 year alone basis and the investor focus on them with the 50 percent cash in a short time of securities to hem in times of slow markets and the capital stock this is the leader the arena and they provide a good portfolio in 2006 started to manager the universities chief development and he is rartsd highly in china with the china international capital that is chinese. >> i'm sorry excuse me. in the interest of time give us the highlight we're about to lose

quorum. >> you met dr. lee in march of 2014. >> so overall a great track record and numbers we go e note that the returns the memo using the standard funds fee structures and negotiating stable terms in terms of range like i said they're a climate more growth and value and returning investor they have great exceptional performance and great benchmarks and the assault weapon is one of the strongest market we'll caution their backward is more their roots are in high net onshore this brings their - he started with stanford and spring with a high net individual,

however, over time because of their strong development and changes to regulations in china they were able to have the clients and have a large base i spoke with one of the largest single clients today a major pension their comfortable with the infrastructure in place and helped within of the first investors in 2012 and helped out the trading system and built out the infrastructure and their client service over times measles have been altered to and it was one of the farther managers the portfolio we do have to monitor them going forward they have significant institutionalal things over time we talked with the investors and think they have the appropriate

descriptions in place over the next capture of years and they're focused on building out the institutional client basis that will help to diverse their a o l and asked them to do the due diligence and can you opine on briefly and we'll agree with staff conclusions both of these managers usually for chinese managers are very institutional quality the backroom stands up to scrutiny we talked about with them those dialogues started last november we saw how's how those managers perform not only did they holed up by performed

in a manner given the quality of the managers the more convert manager helping held up better than the more aggressive manager they're doing mandates by the way, we on the china certainly a good place it start from a short-term and long term prospective we'll agree with staff you ought to do it actively as opposed to an index basis and the pros and cons on those managers are listed in the memo if you want to discuss dan was part of that team and can answer questions. >> any questions. >> bryan. >> maybe i'm missing something the returns for those few minutes are sort of buried the memo right no table last week, we normally have. >> yeah, yeah and.

>> we were severely restricted enormous of their illegalness. >> we can. >> the non-restricted disclosure agreements and they have non-disclosure to the people i'm sorry can't he furniture it but can't fiber fissure not for our intersection. >> and they did a great document with a lot of return analysis we could discuss that offline or - and we're okay in terms of the inception like like 2007 for both; right? but not individual years disclosed.

>> that's correct. >> the volatility looks at lower than the the benchmark and yeah. it is significantly lower marginally lower. >> has the separation excuse me. is returns are very strong and this is an informational on or about. >> what's the separation think is s&p. >> but that the 35. >> which is normal. >> 8.4 or 4 or 5 is really good. >> the separation was twice as u.s. public equity. >> in returns are aspire. >> yes. >> yes. >> the s&p are the same time period it is starting in spring of 2007

that is different. >> in china a wider returns of individual stocks that means the values of security is that much more significant. >> yes. those fees are high for the managers for example, roughly for the active managers may be one base point is a high fee for a u.s. or international manager this this is 2 percent and 20 believe that was presented. >> with an and a half and 20. >> let's say. >> one and a half and 20. >> for example, the total return is 10 percent it is for a given year what amount of fees will be paid to

the manager so let's say the total return of the portfolio is 10 of that how much is the manager given and we'll need to know the benchmark return. >> that is one and a half of $6 million. >> okay. >> you're so one nature percent so the gross return were 10 we pay one and a half and any incentive fee is over is benchmark. >> what would that be. >> what is the benchmark. >> the benchmark and - the s&p three hundred for the years when the csi was outperform of 3 hundreds. >> a round number is a the

benchmark give me an idea how many base points. >> we anticipate this manager will comfortably return 15 or maybe 20 percent of gross let's say the benchmark is 10 we have higher expectation but say it is 5 we'll pay one and a half on the 15 now down to 13 and a half. >> construction is 13 and a half. >> we'll be paying lower than that part of negotiation that we can't say talk about in public so of the remaining 3 and a half if we pay 20 percent that is 70 base point they'll get 2.2 percent return we'll get 12.8. >> so the answer 200 and 20

base points. >> i hope they out perform i think that yeah obviously i'm a vocational and we should be moving to china i'm in favor i think the fees are high higher than any manager we are gaemdz with the public securities those are not private securities previous comboikts are totally different and help with the financial provide staff all those kinds of things those are different i don't mind paying 220 but this is a public stock. >> their significantly lower than stated in the memo. >> i'm sorry. >> i want to thank you, my views their higher than any public securities manager and to

concentrate. >> versus public securities i doubt we have any manager the public works that has so - i want to say what my verifies are in terms of this the high fees and the concentrated portfolios. >> we want to say it is low and once the value and grow manager. >> i heard the presentation he read it fully i'm in favor he wanted to give pie point of view. >> duly noted. >> it's okay he has no more questions. >> first, i read this i said

to myself wow. we want to do this and that is, i said to myself wow. page one didn't have what we're investing every investment on page one it says what we are into and i would like you to turn to page 11 that is how long it to where we'll be in $200 million on the first one but two weeks to deploy $2 million but didn't say we're investing on page 11 of 11 the upper left-hand side it says strategy is an absolute return in china so right now i said that looks like a hedge funds to the teams are a hedge

fund i'm a little bit confused simply going and buying 8 shares in the china market and get a license and this looks like a backdoor hedge fund. >> there only products we'll - quietly pay the hedge funds fees buying stoppage. >> what attracted us. >> not what attracted i accept you support. >> these along these lines one and a half percent and one and a half percent over a stated benchmark are standard fees for china managers. >> and think page 11 under our

overall rating has an a talked about the strategy return and very strong performance records will you walk me through their absolute return strategy so we know what that strategy is. >> see if i have two products and an absolute return target is more than a 12 percent refinery the reason we call absolute it is called an enhancing strategy that is lower that's a great question areas and only targeting a couple of indexes overall with a track records with the return strategy it is not a true i think the way they termed it how at the termed it

not a inadequately absolute hedge funds strategy but differentially from the index. >> spits the strategy we'll give them 200 plus million dollars what's the strategy. >> they're building china based a share stocks the a share stocks and to have materially higher volatility than the ad r based in the u.s. than the 10 percentage etc. so it is locally based stocks that are trades only locally they're not traded elsewhere those base it is a con found market is the chinese chinese

have a game letters mentality - they tampering of the downturn to buy good quality companies at lower prices okay. they tends to own the more mature companies to dam egg the voluntary it's it draws it down of the return so this is a lower reflex a share strategy we expect to out perform >> and commissioner if you look at those are able to go into cash they can defensive las vegas protect the portfolios by

going into cash. >> they don't go. >> they have the ability the guidelines to - >> over the existing. >> everybody what you're suggesting let me ask it definitely more day trading. >> no, no. >> we have to thoughtful approach to cash they consider the evaluations and adjust the cash thoughtfully and existing e m managers some is restrictions think cash since i have much more ability 50 percent in cash. >> they referenced well highly regarded by stanford and other institutions we talked with

the portfolio manager not the gentleman that we met with a couple years ago the ceo and the p.m. i know one local, national you know math statistics type contact an understated guy one of his colleagues bringing this to our attention we think this is a premier manager. >> i just met him, i guess to our sentiment i lining like the minutes to reflect something very, very clear on this particular item staff can't talk about this in public when a particular question was raised i believe that's 100 percent wrong we have a vehicle in that body we can go into closed session and talk about an investment for the complete protection to have

the free flow of information staff made a discernment this item didn't need closed session nothing confident on to calendar for us the dieshgz and be told we can't answer that in public is not the best interests of this organization nothing should be withheld and i'll clarify the record the stalling didn't include public comboikts investment decisions as being available through closed session not staff that decided it was state law that required that recommendation because it doesn't pertain to alternative or private equity needs tobacco

heard in open session subject to the non-disclosure we have with the two firms not a staff decision katie can back that up we were advise and staff was advised that the public equity investments don't qualify to go into a closed session under state law. >> if this is the case it defies logic we can ask a question and told it is a slippery slope so say let's talk about that offline so when the discussions with one commissioner and another discussion with another expirations and at the end of the day to come back here to make a decision with several discussions that took place this is contrary to the whole purpose of the freedom of information of

the free flow we're talking about $400 million being talked about we can't talk about that we shouldn't talk about anything. >> i'll point out to commissioner makras other point if this board today wants to take action i'll suggest that the motion just to engage those two firms and call a special meeting at the end of the investment committee next week to votes own the dollars amount of investment the dollars amount was disclosed think page 3 because of the separate information not the title i suggest the action the board to approve engaging them and a special session next week on the announcements. >> can i clarify are we being told as a board this is

information question can't have to evaluate that and not talk about some of the things during public sessions because from is a non-disclosure agreement. >> it says we'll not disclosure it to the public if it is the fwrdz it's - >> any one of us wants to look at this information we'll not be able to. >> i believe those are the terms of non-disclosure agreement. >> question can't get to three or four with 3 people that fuss if we reach 4 then. >> it becomes a pub. >> de facto the public is left out of the discussion. >> we follow-up and provide information we don't have

available this is information as a condition for us to even talk to these companies we were signed a non-disclosure agreement. >> maybe members of the board that have questions they can be sent to staff offline and maybe we'll circle back to the board. >> continued to a future meeting. >> that's what all support. >> commissioner makras is a very well-taken point we should have public information. >> by delaying and pushing to the april meeting. >> well, i i guess it is march not april and i don't think that it does this would have happened with

any manager we have had the same types of issues. >> i'm sensitive to the board members wanting information but the board. >> i think question to answer t answer so you. >> this is a strategic dilemma. >> we can go back to the company and ask them if their okay to release that in a public meeting and bring it back from the non-disclosure agreement agreed not to disclose question went back and said what can question committed in the memo so an individual issues we can go back and see if we can

provide that as long as the firms are amenable to us releasing that. >> i know julie want to finish my thought. >> let him fetish his thought. >> we all have questions we want to roll the today is. >> so we have a strategic dilemma we ask the same public strategies we've been doing and get the seam results we'll have to change it and things will be different i personally have no concerns but maybe the board those of us that do maybe question should follow-up offline and come back with expirations of concerns that's another discussion. >> so i will support continuing it on that basis. >> thank you. >> i'll support continuance

for a number of reasons this is placing the board in an awkward position and commissioner makras questions and the performance reference that was sent are they accurate you wrote those reports about do you believe their adequate and two do the numbers that staff and any pc looked at i asked that it is a common problem not simply because you get outside of the united states but the data different countries have different laws about the data appealing they're just different so i'm trying to find out what kind of numbers do we rely on to come to the conclusion about the performance. >> you figure out who will

answer that with the institution the united states who you got their names and other sources this is a reference check they have performance numbers are they willing and able to share what they've found out about those managers. >> okay. maybe they do or don't i haven't talked to them but we're assuming that the other. >> is that always what about the quarterly report. >> we're going to pay them something this is a bigger issue i trust staffs report. >> we'll present the questions as far as historical performance what we can in fact, throw the non-restricted violation provide

public if we're going to eye a custodian and when we go to inevitability managers i knew then the fees would be high their significantly higher than we're used to or a rate of return but because of supply and demand or they're able to charge us i'm talking about the management team and a homicide points significantly higher than we're used to why. >> we are telegraph hill negotiating the fees. >> i hear we're hopefully continue it. >> how else to invest in schien it requires nor work they have to dig into the finances i was in their office they talked about the amount of work to

verify the finances and most of the finances are not i know valid they work with the csr c and work with consultant companies and peers and have to valid daylight every number. >> you. >> i'll ask my questions offline. >> fair enough. >> just really quickly i've seen managers in the u.s. they're extraordinarily high active managers and they're very unique in their performance in the end justifies that fee because their unique all of them does that. >> we have a similar fee. >> yeah. so at a same way. >> question invest with them

in private equity and we are researching them currently. a public comboibt mandate that will be something like one or two >> at the end of the day look at the performance that justifies that they do a lot of work only covering the 15 companies and may take an active role, etc. we need to come back and why are they different than somebody that does a different strategy you can do that and come back with that information. >> all right. so thank you we'll take public comment and entertain a motion to continue.

>> public comment? all right. hearing none, public comment is closed. is there a motion to continue >> thank you very much there is a motion and a second and we'll take that without objection. the motion carries but want to note the commissioner meiberger is no longer here thank you call the next item. >> >> item 12 the c i o report this is the reports let me ask the c i o we can accept this report as made and you certainly may madam chair requires we briefly just read out items 2, 3 and 6. >> last month the board approves an recommendation we invest over one hundred million dollars if they close only we get $50 million for the

inevitability manager and the two strategies we asked for up to $60 million in december it closed loss month we this emigrate 17 millions and bravo that was approved in january and invested one hundred million dollars and got that. >> the 3 strategies that are allocated with the staffs discretion was approved angulation up to one hundred million dollars we got $60 million we're pleased and finally, the d c m vulnerable china venture that was approved an investment of of up to $36 million and we emigrate $30 million i'm going to turn it over to the board for any questions. >> thank you very much is there a motion to - >> excuse me. >> discussion item thank you.

>> thank you for your presentation. >> thank you. >> i want to say one thing. >> please. (inaudible). >> something i think we need to that about other managers and market including the stuff well, we've looked the reason commissioner in january we fell 10 percent that has radical 10 percent since then it is back up. >> okay. okay yes we have one other item that was closed. >> yes. we have one. >> should have been recorded. >> oh, i'm sorry we're going back into closed session. >> a contract signed think february 16th. >> commissioners that will be

recorded when the entire deal finished and closed out and that entire investment is closed. >> thank you, thank you. >> all right. thank you. >> let's take public comment all right. no public comment thank you very much next item please. >> discussion with the 1950 ii people's we accept item 13 is that acceptable taking public comment on item 17 no comment public comment is closed. item 14 discussion with the items report. >> let's take that as well as accepted or submitted let's take public comment on that. >> all right. public comment is closed. on item 14 item 15 the presentation audited

supplemental information for 2015-2016 colleagues i'd like to accept this report as submitted. >> thank you let's take public comment seeing none, public comment is closed item number 16 an action item approval of the terms of reference for the environment social and give the e s c committee within of the co-chairs. >> this was passed last month, however, no public comment we need to reconsiderate that was one we needed - the discussion was already had we'll ask you to make a motion to approve and make sure we take public comment. >> let's go ahead and open up to take public comment anyone okay. no public comment thank you so let's take a motion to accept item 16.

>> i move we this item. >> all right. thank you. >> the there is a motion and a second and we'll take that without objection. that item passes. >> mr. clerk could you call number 17. >> discussion item the executive director's report report. >> i have 3 things to report on first a reminder that april 1st which is soon approaching our deadline for form 700 and the required training if it is necessary the second he wanted to report that we previously recorded on the request to timing cohen from the certain justices that worked for the city wanted to report this was heard in rules committee a week ago and it was i was supposedly they approved it 5

seconds before i appeared on the first reading yesterday and assume final reading next week that will change the existence of finally compensation. the plan it include in any compensation that a previous city employee earned under the judges report and 3 where we are with protecting the lawsuit corridor we've completed a second round of attainments to folks not paid in their january pension checks and folks that included a continuation to have a split we've substantially come filed with the judge's order to pay the few weeks that were identified as post 96 folks some folks we're treeing to track

down we talked about that folks that have died or retired members since 2013 and then we are on track to comply with the arey rely to the may 31st >> what's itself total dollar value. >> i believe 4 january and february the total has been $44 million we don't have the final numbers that is distinctly higher than the 4.5, however, that estimate but this is assuming we paid july 31st, 2011, wear 7 or 8 most behind so the estimate for the $4 million or $46 million the most of benefits and that sounds like

great. >> please. item number 2. >> this was for people that had vested benefits. >> we call them in active but vested their time not a process issue. >> okay. >> let's take public comment on the item no public comment public comment is closed. >> and thank you, sir. >> could you please call item 18 retired board member. >> anyone on this ends public comment on the good of order none has public comment is closed. next item number 19 discussion item retired board member sxeb submitted a written

report let's accept that and take public comment on the report all right. public comment is closed. closed session part two thank you, everyone we have one more item to go through in closed session. >> is there a motion? >> i'll move we not disclosure our discussion. >> we were in closed session for item number 3. >> so, yes to clarify the boards motion to not disclose any of the investment decisions on the litigation to disclose that the board is authorized in pursuant litigation. >> thank you.

>> that's the motion i'll second that motion and we'll take that without objection. that passes unanimously we took public comment previously any more madam clerk, is there any further business before this commission? >> no, this meeting is adjourned thank you ladies and gentlemen, >> i want to welcome everyone

here today and today, we are signing this very important piece of legislation and let me begin by thanking supervisor wiener so far his instead of leadership the sponsoring the legislation that will raise the minimum for anyone purchasing tobacco products and e cigarettes to the average 24 and that will take effect on july 1st of this year i know that supervisor wiener along with his co-sponsors supervisor mar and supervisor cowen and supervisor farrell and ultimately the entire board had a adopted this and this i know that the supervisors with working closely with our duty 0 who has been documenting why it is showing so important to continue our efforts as a city if not as a state to continue be rooiktd the access to cigarettes

particularly at journeying or younger ages that is advocated by the groups like the tobacco free coalition i want to thank them they're not just here in san francisco but the entire region and all over the country working with the health department making sure that supervisor wiener and not only pay attention it the science and data it is going on but that we do our best to end the suffering that is brought by by long-term smoking that obviously is the cause of cancer and asthma and heart disease we do our best to educate the public in doing so if not the industry that sells overseeing products and ultimate

our kids are your family when in their 18 and 19 is shown that the coalition has shown over and over you're putting that some 95 percent of long term smokers had begun smoking at the age of 18 perhaps younger and as certain under the age of 21 those habit are so hard to end voluntarily so that's why we have to go to many other front to try to do this and that's why i think that the supervisor wiener has found a person cause and public health health cause if the violation kriebs the department of health to make sure that we do what we can to end our these diseases as much as we can to make sure that

we also reflect as the mayor of the city if we can save a lot of money if we are able the medical systems we have to have in place it treat cancer and asthma with smoking is an incredible experience to the public safety the cleaner air with the coalition work on families that second-hand smoke impacts this has another critical reason why we want to do as much as we can and i think we're on the overview we know that supervisor wiener is already in contact with the governor's office as we are and with his the 1184 particularly senator leno and senator henry's to insure that the state which maybe hopefully in our minds the second to join

hawaii to end the sales of tobacco products and less people under 9 age of 21 it doesn't make it right because your 21 you buy tobacco products wild to end it. everyone hopefully with the adult level of age 21 that people make better health decision tore themselves and their family so i take this opportunity to thank the coalition i know that in looking at the data as they have done in working with us this year was a strong sense interest the data it the smoking rates are higher amongst people of closer and amongst the let the record reflect community and other xhucht we rank it with a hard impact sales work that is done

by tobacco industry the may or may not lgbt community that's where we really have good data to show that the more we do to educate your communities be about this the better off we'll be so with all that background i want to say to supervisor wiener you have again showing the good leadership i'm going to give the pen avenue we sign this your accumulate more pens than anyone but thank you for your leadership and also working with such important groups like the tobacco free coalition supervisor wiener i'd like to invite you up here to say a few words >> thank you, mayor ed lee i'll give that pen to the advocates and the district for they're really horroric work tutor sing a song full of the

hope that the present has brought us; 24 legislation in a way that highlights this critically important issue san francisco for many years has been on the cutting-edge of public safety whether around hiv or led pant and sugar sweetened beverage whatever the case weave been from the forefront and once again we are in the fire hydrant of what i hope will be a tile waive of proving health legislation that eliminates tobacco use in this country this is a huge problem we've been involved in a 50-year struggle but with the tobacco city that produces a product with no benefit whatsoever that kills a half a million people every year 34 is a serious issue

and serious punting kiss i'm proud we live in a city where we can be on the cutting-edge where the politics of this city allows us at city hall to make good progressive policy i also want to say we know we're up against a very well financed component the tobacco destroy for decades has fought ever effort to try to control tobacco use and enemy linkage between their pursuit and the health we know that hillsborough tried to do that they have spent their legislation after an expensive lawsuit by the tobacco industry we in san francisco are willing to fight that fight that is amount about our city thank you to the department of public

health we sometimes don't roles e releases how lucky with the best putting department that supports our efforts to make good laws that vascular critical exercise an amazing agency and our advocates for give us the political spouse space to to be able to do this and as the mayor adu u. >> you allowed we passed that legislation a week and a half good and the law jam the state assembly broke we that republicans willing to raise the tobacco age to 21 to pass senator leno's forward-looking bill to make sure that cigarettes are tobacco are still a way to get addicted to nicotine and will you the tobacco tax it is a huge step

forward i hope goes to the governors desk thank you, everyone (clapping.) so are we ready to safe so far lives i'll add one mount reason not in my notes or the legislation but it is about my history about 10 years ago a mayor asked me to pick up cigarette butts as a public works decorator i say to all the public works staff that work hard if there was less settings that's another reason to sign on the legislation; right? yes all right.

(clapping.) (laughter). >> today's date is - >> 16. >> that's it all right.

>> the office of controllers

whistle blower program is how city employees and recipient sound the alarm an fraud address wait in city government charitable complaints results in investigation that improves the efficiency of city government that. >> you can below the what if anything, by assess though the club program website arrest call 4147 or 311 and stating you wishing to file and complaint point controller's office the charitable program also accepts complaints by e-mail or 0 folk you can file a complaint or provide contact information seen by whistle blower investigates some examples of issues to be recorded to the whistle blower

program face of misuse of city government money equipment supplies or materials exposure activities by city clez deficiencies the quality and delivery of city government services waste and inefficient government practices when you submit a complaint to the charitable online complaint form you'll receive a unique tracking number that inturgz to detector or determine in investigators need additional information by law the city employee that provide information to the whistle blower program are protected and an employer may not retaliate against an employee that is a whistle blower any employee that retaliates against another that employee is subjected up to including submittal employees that retaliate will personal be liable please visit

the sf ethics.org and information on reporting retaliation that when fraud is loudly to continue it jeopardizes the level of service that city government can provide in you hear or see any dishelicopter behavior boy an employee please report it to say whistle blower program more information and the whistle blower protections please seek www. >> i would like to call to order, the finance committee to order. our chair, spurp mar

will be here shortly, and i'm lon down breed and we are going to get this started. to my left supervisor normanyee and jane, kim and we should call the record. >> commissioner breed? snechlt here. >> compos? >> absent. >> kim >> present. >> mar? snechlt absent. >> yee. >> here. >> could we approve the minutes, without objection, those are approved. >> we will take the public comment. when public comment has been completed. >> all right. let's get to item number, 3.

and we are now joined by commissioner mar. who is the chair of the committee. >> item three. state and federal leg sislativep date, this is an action item. >> welcome. >> happy to be here today. i thought that i would give this a brief, overview of where we are at the capitol and where we are. >> could you identify yourself? >> i am sorry, yes. >> mark watts, advocate for the transportation, authority in sacramento. the legislature welcomed the new assembly speaker yesterday, when he was sworn in and he was elected in january and so he is now, fully in charge of the transition has been completed. and it was a very, very, happy ceremony. and i think that he has filled out priorities for his term. and i think that they will suit the state very well.

beyond that, where we are in the legislative process for the capitol, is on a sheet of paper here that i can't seem to find. >> darn it. i apologize, here we go. the end of february was the last day to introduce measures and you will see that reflected in the matrix today, where we have gotten about 40 bills, that we reviewed and made recommendations on. and i will come back to that in a moment. but next major deadline for legislation would be april, 22nd. for the bills that were introduced in late february. and they have to clear the first committ committee or they are dead or they are dead for the remainder of this session. there is a spring recess in the midst of this process, on march 17th, and march 28, they will be

in recess, so the hearing for these measures will be very, very, heavily attended. and very, heavy agenda. s and as they try to get through all of these by the end of april. in terms of note, on transportation, funding, which is a strong interest around the state right now, senator bell, has a measure in the special session and he intends to amend and we had hoped to see that on monday or tuesday at this point in time, his office says that he is refining some of the amendments, his amendments will add significant amounts of funding and finance for transit projects. even though the main balance of the bill will be focusing on the state and local, road repairs. there is an indication that the administration may elect to move on with a more stream lined

proposal in about $2 billion range, that would not require a super majority vote in the legislature, we are trying to understand if that is something that they are working on. but there are indications that there are, or there is a preference to try to get a small amount of funding for state and local road repairs, rather than make the push for the larger amount, that is represented in senator bell's bill and the assembly member's frasier's bill. and i will be keeping you abreast of the developments as we go through the next couple of weeks. in terms of the matrix of the legislation, there are 13 specific recommendations that we are making to you. one is a changed position, and then the other 12 are new bills for your consideration. and in addition, there is like 32, or 33 other measures that we have recommended watch for one reason or another, and they have may have applied to a policy

area, where there is not much flesh on the bill at this point in time and many cases there are spot bills on topics that may become of interest. and so rather than trying to find them again, when they get amended and we put them on the watch and that allows us to monitor that flux more evenly. and so if you would like, i can cover the 13 measures, starting with the first one, which is ab 1550 on page six. this is a position we had recommend that opposed in the past. and we are recommending watch. and it deals with disadvantaged communities in the cap and trade area. it did not change for the proportions of the projects or the funding that is required to be spent in the disadvantaged communities and as you may realize, or you may recall from the first go around of the money and the disadvantaged communities in the region did

not fare well because of the way that is designed, and this bill, takes another step and leads the current, 25 percent requirement in place, but as the requirement and 25 percent of the funding must be for projects that benefit, low income households. and so, what we have or why we are recommending moving to a wasatch front rather than oppose. we would like to continue working on the definition of disadvantaged community more in the background and working with there is a green gas reduction, and working to see if we can improve the disadvantaged definition. and we are asking for your changed to a watch position. >> i just wanted to thank you so much for being sensitive to the low income communities. and in some ways whether they are in the san francisco bay region or east la, so that we are taking in some ways a regional and even a state wide approach to equity but policies,

but thank you. >> and we have seen a number of these types of measures over the last couple of years, and we are recommending oppose on ab 1768, and on page 10 of the matrix, and essentially, it directs, the, remainder of the high speed, rail bonds to be used to pay off the, outstanding high speed, rail bonds, effectively, turn nighting the stream for the project and so as a consequence, we are recommending oppose. and in the several more and i will cover them briefly, because i don't think that there is going to be concern about the recommendation and we are recommending oppose on 1866 on page, 12. and this would redirect, the remainder of the high speed, rail bonds to the state water project funding and again, that is a major change in the high speed rail.

and we think that the policy of this before you is for the high speed rail program. and the next measure, ab1886, we are recommending a support and i have to tell you that i have to draw a diagram, three or four times before i fully understood this one. and essentially, there is an exemption provided within the e seqa, where 25 percent of the projects are no further than a half mile. this takes it to 50 percent, so no more than 50 percent of the land mass, is an expansion of the sequa expansion for these types of project and we are recommending a support position. ab 1964, on page, 14 is another, and a long series of bills, over the last couple of years, this one is little bit different than the ones that we have seen before. this simply extends the white

sticker, authorization, to access hov lanes, and the white stickers are pure, battery and electrics and the natural gas vehicles as distinguished from the greenstickers, when are the hybrids. and so this, applies only to the white sticker vehicles, but they are growing in sales, and the population throughout the state, is growing. and the concern is, that allowing, the continued and expanding access of the hov lane and so we recommend an opposed position. >> ab2034, on page 15, recommending the support position to you. and more than a decade ago, the federal government, authorized the delegation, to state transportation departments. to over see nefa, of the reviews, within their state. and that was enacted and it has

been continued once and this simply continueses that authorization at the state level to allow cal transin circumstances to administer and over see both nepa and sequa documents but i will not comment on the effectiveness, but it is a continuation of an existing policy. and what will bring the high speed rail program to an end. it says that no more bonds could be sold. >> and it will have to go back to the voters and so there is a double layer of protection against this becoming effective. because i don't see this measure moving forward but that one is found on page 15, if you would like more details or more information. we are also recommending support on ab, 2126, on page, 16. of the matrix. and this applies, to the state's current authority to utilize construction manager, and general contractor and

authority, for administering projects, large scale, complex, projects and it will be coming to another bill, similar to this in a moment that applies to you, about you this applies, only to the state. the state has the authority to do six and they have occupied the six slots in statute, and this will extend it to 12 for cal trans, to administer. >> mr. prazir is the author. and the state, highway and protection program is the main program or the main, financing source at the state level for the projects that are approved or we construct that provide, major maintenance and reconstruction, as well as the operational funding to operate the state highway system. and the funding is generally, only available to the cal trans. and the ctc and the annual report, recommended the expanding a one small provision

within this program to allow the operations, to also have capitol improvements. so previously, up to now, the operations will be you know, widening the guard rail, and you know, expanding tauxiliary lane, and this allows for the capitol projects to qualify for the same projects. this bill, ab2374, was introduced by mr. chui. and we are recommending that the transportation authority not only support but register as sponsors of this measure, because it came from staff conversations with the author's office. and it would uniquely expand, or authorize, some what uniquely authorize, that the ramps, for the -- island, program and the ramps that connect to the bridge system, would be eligible

utilize the cmgc authority just like we, or just like cal transhas now for a certain number of projects. and i would specifically be targeted towards some of the complex engineering and construction that is anticipated for phase two of the ramp project. and i have been doing a lot of due diligence with state engineers and other folks who have had concerns in the passed about the similar authority. senator bell, has introduced sb 1066 which is on page, 35, and we are recommending a support for this measure, it does not appear to do much on the surface. and it is more of a place holder sponsored by the -- and what it does is it provides in the state law, the authorization for the new fast act revenues approved by the federal government and by congress to flow to the regular programs at the state level that

we anticipate them to. and in essence, it does not really change the law, but it is, and it, it would, actually be operative, if it were to pass. the game plan, however, is for the self-help counties to have, a joint, jointly, jointly managed bill that they can work on in case there are wrinkles in the fast act that the people have not anticipated and some of the funding formulas. so this is to preserve their option is to move the legislation. and senator glazier from the east bay has introduced us, and we are recommending the support position and it is on page, 35. the mtc, has commute benefits ordinance, and they have the authority to adopt a commute, benefits ordinance, and that is soon to expire. and this was, simply, extend that authorization,

indefinitely, and consequently we are recommending support. and the final measure for your consideration, is sb, 1259, by senator runner, and on it is page, 36 of the matrix and we are recommending oppose. this picks up the idea that have been attempted several decade or more to allow veterans with special, decals and the ability to access toll facilities and there has been similar, authorizations in other states, where we have, and the reports are that, it can result in fraud. and associated decreases in the toll revenue. so, it is, mainly an issue of equity. with that i bring my oral part of the presentation open for questions if you have. and i will try to answer them. i am still trying to digest all of the bills. there is more than 1,000 in each

house. >> so questions colleagues? >> i wanted to say on the sb1128, by glazer that the bay air quality district, and the community benefits policies and give many options or a couple of options to employers, and i think that is a really important one in insuring that we are reducing greenhouse gas and trips as possible. and the coalition that are really trying hard on automatic speed enforcement. and the speeding cameras. but i know that some communications with some of chui's office were fruitful up until the last minute but we are hopeful that there is legislationhat comes forward, but it is a little disappointing but i want to give a shout out for the work behind the teams on those efforts but thank you so much, mr. watts for the great presentation. and commissioner yee? >> thank you, for your presentation, and i know that

you mentioned some bills may not have all of the details, necessary, or whatever, and so you are watching it. and one of them may be, under or possibly may be ab 1677. >> on page, 9. or 17? >> i guess that what i would like to do is to move that to suggest that we urge you to move it from watch to support. and the reason for this, is because this is a bill that, so that the board of supervisors have already passed a resolution to support. and we want to keep it consistent and we want to keep the heat on. and we are actually, my office is working with the senator on this particular bill and we are trying to give them as much information in terms or suggestions about the bill, as

possible. hopefully, we will have some meat on it. >> so, commissioner yee has made a motion to add, ab 1677 from the move from watch to support. is that your motion? >> yeah, this is in regards to the tour buses. in terms of making it possible for local jurisdiction or the local government to have the additional inspectionses as sort of the general idea. >> is there a second on the motion. >> so it is seconded by commissioner, breed. so we are adding 1677, to the action list, presented by mr. watts. any other comments, colleagues? >> let's open this up for public comment. is there anyone from the public that would like to speak? >> seeing none, public comment is closed. and so on the motion to add ab1677, from a watch to a

support, position, could we do that without objection? >> the house has changed. >> so the house has changed. roll call on the motion. >> breed? >> aye. >> campos? >> absent. >> kim. >> aye. >> mar. >> aye. >> yee? >> aye. >> the motion passes. >> and then now on the recommendations on the new bills and the recommended positions can we do that same house, same call? >> yes. >> thank you. >> thank you, so much mr. watts. >> next item? >> item 4, introduction of new items. this is an informationm. >> so let's open up this for public comment, anyone from the public that would like to speak? public comment is closed. next item. item 5. ? >> general public comment. >> good morning, commissioners.

(inaudible) trueself or well-being. (inaudible) money, (inaudible) making oneself a well-being. (inaudible)

>> thank you. >> next speaker, anyone else? >> i would like to speak about number, 18, please? if you could go to 18. so i think that we have already handled. >> you might be in the wrong meeting. >> i apologize. >> or actually i am sorry. i apologize. >> i think that the proper time would have been when we were dealing with the legislation. but you could speak on general matters. >> that is fine. >> okay. so seeing no other public comment, we will close public

comment. and mr. stamos next item >> item 6, adjournment. >> thank you for coming today. meeting adjourned. light for ou

streets illuminating our ideas and values starting in 2016 the san francisco public utilities commission is xhoefl that light with new led with the did i audits for better light for streets and pedestrian and they're even better for this vitally lasting longer and consuming up to 50 percent less energy upgrading takes thirty minutes remove the old street light and

repeat 18 thousand 5 hundred times while our street lights will be improving the clean energy will remain the same every san francisco street light is powder by 100 percent godfathers hetch hetchy power in one simple word serious as day turns >> good afternoon i'd like to call of the sfpuc to order it is one 37 madam secretary can you please take the roll commissioner vice president moran commissioner caen