that. they need -- [inaudible] what this is about [inaudible] and what goes into -- [inaudible] it has a lot to do how bodies are made and dna and everything -- >> thank you. >> -- and how it's done and that has a lot to do with reality, not something that we want because we babies. we want [inaudible] that goes behind it. [inaudible] nothing like that. and drugs --

>> thank you. ms. ion son. next speaker. these are two items. >> apologize for last week. i was here when we discussed the video release many weeks ago when the chief reiterated the statement i recognized it. it's obvious i am not 100% sure of what it was about when it was spoken about. i will bring it up again. next thing -- a clarification. the department -- officers can use their phone, yes when they're on duty or are they not allowed to use -- apple phone, smartphone. i don't know if that is allowable. next

thing three police officers walk into a neighborhood. two are ten year vets that never fired a bullet and a recruit, a new graduate, and none of them are wearing their gunbelts. they're wearing casual light. what happens? the community recognizes that these people are not here to shoot them. next involvement is with the community. will the community have those officers' backs? you want to talk about getting involved in -- being involved in creating trust in the neighborhood. i would like to see some volunteers, a program along that. if you get a new police chief recruit to the be the new chief and they

recognize. they say "we have been involved with gunless peace officers." i would be leaning that way a little bit. a young gal here said something about approaching the police, how intimidated the uniform is. that may be part -- another person said the new policies for the 21st century. it's kinds of a little bit odd to think of a patrol men or woman without a gunbelt, with a light belt but again they have their badge. they have the microphone. how fast can we gettany oakley to the scene? and if we can hold off the scene we can evaluate the scene. we can then direct the scene what is happening want i like the idea of ten year

vets. before i said that didn't pull their gun out of their holster and fire a bullet. i spoke to one police officer, a sergeant, rachel killshaw and said there were three police officers pulled the gun out of the holster and never fired and she thought they would like to be included. that's what i got and they were like to be included and we're part of the team that didn't fire a pull get holding a gun and you may shoot someone and it's a tense moment in a person's life . i don't think they forget it. and to walk away from that edge and they don't want to do that again it's a good teaching for the

new graduates and how to learn to be comfortable without a belt, a casual belt. i think it would be good for the community, good for the police. is that me? thank you. >> thank you. next speaker. good evening. welcome back. >> david elliot louis. greetings commissioner, chief. this is about the changing needs of cit. i'm a trainer, part of the mental health working group. a year ago -- over a year ago we were doing three, four trainings a year and now ever other month. we have a big charge but our staff resources, the department resources haven't increased. right now we have one full time lieutenant, lieutenant molina and part time sergeant, laura cohen and while they're dedicated hard working people

they're not enough. they need help. lieutenant molina has put in a request for at least four additional full time employees to help run the program, handle the evaluations. every training produces a stack of evaluations like this almost 2,000 pages. it's a lot of paperwork to go through. we need help. they don't have a desk to store the evaluations so we're seeking office space and staff. i know the lieutenant will put in the request and i am hoping you upon honor it and you will give us the resources we need. >> >> it will help us do a better job and fulfill the mission of cit. i submit this for the informational benefit the commission but i am talking to chief. i hoping he supports it when the requests come up the

line for additional employees and for cit and need it for the program to work. we're stressed out and thank you for everything that you have done for us and we could use a little more help. that's my only public comment on that. regarding the other item i will pass on that but thank you. have a good night. >> thank you for all -- >> commissioner -- >> -- for your volunteer and service work and the contributions to cit. yes chief. >> to address that. we moved cit to where they were on the professional standards on the fo b bureau and lieutenant molina was relocated to another office and the requests you made they're in progress. >> thank you. >> welcome back ms. brown. >> hi. i just wanted to bring up about my son again and about his case being unsolved and i

would like to use the overhead concerning my son. he was murdered august 14, 2006. to day his kay isn't solved. again i am glad that we have a new inspector jim spling and the new person that you just hired. i would like to meet that person. i would like them to give me a call so i have insight to my son's case. and i don't know if there's going to be -- i hoping you're the new police chief but if you're not if the new police -- whoever is the new police chief doesn't stop what is happening now, the actions taken now, it doesn't stop. like i said it's been ten years for this to happen and i don't want it to stop. i don't want people to forget my child. i know i

come here and i know most of you and i smile but my pain is still there even though i am smiling in your face and hugging you. my pain is still there and i want you to know that that i am real serious about this. i want justice for my son. i keep bringing up these other young people. i stand for these mothers. there's another mother's anniversary tomorrow, september 15, and she called me and asked me to stand with her and everyday i get those calls from those mothers i go through my pain again, but i need to stay strong so i can stand with them and i called her all day. i haven't heard from her but i will be there for her tomorrow. her case isn't solved either so

still look at these faces and those new investigators that are coming look at cases. look at these young men that mothers are still suffering. i want to bring that up again. mayor gavin newsom when he was mayor he knew who killed my son. the da knew who killed my son. the police know who killed my son. they can name individuals, their home addresses, and their names . you have all the names of the perpetrators that murdered my son and one was television last night "i had a hard life and i am changing my life around" but you're a murderer and you get on television. you say you're turning your life around but you still killed somebody. you became a comedian and his name

is thomas hannibal so i heard he was on television last night. i wish i would have saw that because he's one of the perpetrators. paris moffit who is walking around and out of jail is one of the perpetrators and if they can have a second chance where's my chance? where's my justice? and if they're watching i want them to see what they left me with and i have to watch them live their life and have a second chance. i'm not saying i want them to die. i don't want an eye for an eye but i want them to go to jail and think about what they have done and not get away with this because they changed their life around. you don't get out

of jail card for it. >> thank you ms. brown. we want justice for awb brae too. public comment is now closed on both of those matters. sergeant please call the next item. >> item 5 public comment on all matters pertaining to item 7 below closed sez including public comment on vote whether to hold item 7 in closed session. >> is there any public comment on this matter? public comment on matters pertaining to item 7 below on closed session and whether to hold it in closed session? >> yeah, i am [inaudible] johnson. this chief should be retained.

>> thank you. no further public comment on this matter. hearing none public comment is now closed. sergeant please call the next item. >> item 6 vote on whether to hold item 7 in closed session san francisco administrative code section 67.ten. >> colleagues do have a motion for closed session? >> moved. >> second. >> that passes. ladies and gentlemen we're in closed session. (closed session).commissioner l back in open session and you have a quorum. >> thank you sergeant. please call the next item. >> item 8 whether to disclose

items seven in closed session. number. >> i have a motion. >> move to non disclose. >> all in favor say aye. >> [inaudible] [off mic] >> all those in favor. >> aye. >> those opposed? okay. motion passes. >> [inaudible] [off mic] >> i would vote no. >> i would vote no too -- [inaudible] [off mic] >> on advice of the city attorney no. >> [inaudible] [off mic] >> no, she asked for non disclosure. >> so i vote no. >> motion passes 5-2. >> item 9 adjournment action

item. >> do i have a motion? >> [inaudible] [off mic] >> all those in favor? >> move. >> second. >> all those opposed? we are noadjournme. thank you. what beautiful bike

these, right? go bikes. well good morning everybody and welcome to our civic center san francisco and really happy to see regional mayors and regional elected officials here. tom, i still got to get used to those genes. they don't let me wear jeans. yet. anyway, mayor bates, mayor sam ricardo of san jose elected officials are regional transportation official, local, scott weiner on my mdc is my appointee there working really hard. kelly working very hard as well. and our friends from ford motor company mobility company. this is helping all of us understand

the definition of transportation networks. it's no longer just about an automobile with a driver. as we have more discussions, and as us mayors get on bart to promote the needs that we have in the region, transportation is a regional challenge and the solutions have to be regional. they have to be with our corporate partners as well. so, ideas are coming forth and the nice part about ford is we formed this relationship some time ago when we were trying to get a smart city challenge grant to the feds. but, one of the promises that i think today is a forthcoming is that it wasn't just a partnership that was fun to be around a grant and was about a partnership about being a smart city and a

smart region which will last well beyond the grant. i think, today, were looking at where those solutions we are articulated we put together what smart cities in the future and today ought to be all about. that is, regionalism with our partners, but having alternative modes that get us the first mile, but also talk about the last mile of everybody's trick. this is what we get to do today. i'm very proud of this partnership with ford with the mobility sector, with her innovation team them up but also working in conjunction with our mta are mpc, regional partners, i'm proud that as we do this for the first time bike share expanded to the east bay, and that is a tremendous >>[applause] real reflection of how this collaborative effort will work. we are going to grow. can you imagine 10 fold increase in bike share?

708, to 7000 in the next probably just a few years. because from the day that we are seeing in this world and the way it happened in new york with ford's leadership is can grow tenfold very very fast as we make locations to pick up bike share very convenient for everybody wants to use them. this is one of those really real life answers to peoples mobility, real-life challenges that we are creating solutions on. we were no longer just talking about the challenge. were going to offer solutions as we get together you're going to find a lot more solutions that come out of our mouths as elected officials because we get to work with the private sector in our agencies and advocates to make sure that solutions is what we go out with. congratulations. thank you for my thank you for your leadership but also thank you for all of the elected officials the bay area getting together with all of us to find the solutions and to discover them and make them available

and accessible for all types of families and users that the bay area. thank you. >>[applause] >> okay. so, now we are going to jump across the bait and i'd like to introduce mayor tom bates of berkeley. mayor bates. >>[applause] >> thank you very much for the opportunity to say a few words. we are extremely excited about the prospects of getting these incredible operations these incredible bicycles coming to the east bay. we anticipate this would be something like 1000 350 bicycles that will be available for the east bay. oakland will be getting a substantial portion. berkeley city get 400 bicycles coming and probably next spring. but it's really wonderful what's happening in i was very fortunate to be on the mpc and certainly mirrors the conference

and to be able to advocate for this because this is the day we been thinking about and hoping about and praying about that will come about. because, this is the future. folks, we believe very strongly that we want to walk walkable livable bicycle friendly city and were now in the process of redoing our bicycle plan to make sure that we make it as safe as possible and as convenient as possible. so, having this as an opportunity to come along and be part of it so exciting. so, i'm really happy this hat is happening congratulations to further. congratulations to mpc and for making this happen. it's a great day for the bay area. thank you. >>[applause] >> okay. i'm getting my exercise this morning going up and down. now were going to jump to the south bay and i'd like to introduce mayor sam

ricardo that of san jose. >>[applause] >> well, good morning. this is exciting. were there to see bikes reproducing like bunnies all throughout the bay area. it should happen here. yes, we embrace silicon valley technology but 10 times the old technology are the best. particularly when we think about how it is we are going to protect our environment and save our planet. for those of us who peddle what we preach, we know the future looks an awful lot like the technology to my left. we certainly know that were going to do all we can to continue to build out transit. we appreciate the innovation and the great companies like ford to produce

electric car infrastructure, but we also need a first mile, last mile solution for folks who need to get to and from transit in the city like san jose that so critical because we've got big ambitions right now building out bart system standing outran capacity all converging at the station will we have 600 trains a day moving through within a decade becoming the busiest multimodal station west of the mississippi. this will be a critical tool to ensure that people can get to and from transit and in san jose, because of the great leadership of j walter and his team at motivate 60% of the new bike share stations are going to be serving communities of concern. underserved communities. were motivated to offering a lower tier price plan to ensure that all of our community can benefit from this exceptional opportunity. so, i'm very excited good i'm so excited i'm actually a member bay area bike share. i'm proud to be at card-carrying member. >>[applause] yes. but i have to give a shout out here to supervisor scott weiner who is been a champion of this. they

came for the his vision really well before we even watched by jeff. thank you very much scott. and thank the entire team. thank you mayor lee and thank you for, for your investment and your vision. >>[applause] >> all right. well it's be powerful when you have san jose and you have berkeley and san francisco all working together. that is pretty amazing. to round it off, i would love to introduce the chairman of the metropolitan transportation commission and that is dave cortez the. [sp?] dave? >>[applause] >> well, thank you very much. earlier this morning mayor ricardo and i were talking about the fact that if you keep for testing a feature based on

what you've done in the past you continue to get the same problems that we created in the past good in this case, ford is not doing that. ford is changing the future. metropolitan transportation commission is changing the future and motivated changing the future not depending on the old ways of the past. so thank you so much and think you, mark for the inter-document there's no question that you know this, but i don't know if everybody else in the audience knows that back in the 1890s, henry ford called the first car ever built the quadra cycle. i'm not sure if mr. ford quite english and that his company would someday sponsor a bike sharing program out here in california and in fact if we could hear him now you probably would be saying, who would've thought. who

would've thought? but i also admire the way that ford has embraced inclusiveness that we at mtc with front and center when we conduct last year with motivate to operate and expand the bay area bike share network. i said, at that time, it was one of the biggest initiatives that we have launched with a sense of optimism and hope that someday we be standing here with this kind of a partnership. because of the fact is that bicycling is a great way for almost everyone to get around, you don't need $1000 carbon fiber frame. a splashy spandex outfit or holier than thou attitude you all you need is a willing pair of legs from yesterday reliable bike and a safe place to lock it up, of course. we all need to travel someplace to place. doesn't matter if we are rich or poor, old or young cock tall or short, what language we speak we all have places to go. so we at mtc and the people at motivate and working together to make sure as the bay area bike share network grows the mobility advantages are shared

among all the people in all the communities that this network serves. a minimum of 20% of all the new ford will bike stations be located in neighborhoods that mtc is designated as communities of concern. if you are not familiar with that term, those are areas with high numbers of households that don't own a car were headed by single parents were in which most of their monthly income goes to pay rent. this is very very important to us at mtc to the counties and cities we represent. committees of concern also include neighborhoods with high proportion of residents who are low income. were seniors or disabled or nonwhite were not proficient in english. to everyone who wants to use for the right to build ouzo ford and motivate world make low-cost medicines available to customers in holding utilities lifeline programs. motivate is also done a great job of working with residents businesses and local elected

officials like myself identified the very best locations for new bike share stations. they have like that within 120 stations owned. the selection process can give you i encourage everyone who's interested in bike sharing not just in san jose in san francisco and berkeley, whereby she or isn't pending for the first time but also in oakland, in emeryville, everyone to get involved. dozens of public workshops and outreach party been held in a guilty part in more of that to come as the process continues. the launch of four to go bike is really a cause for celebration. i know we all feel that your ticket just like the quadra cycle, evolved after a few years into the model t and revolutionized personal transportation in the process, ford go bike she was a bike sharing is no longer an alternative transportation but a smart convenient reliable and affordable choice for the short trips that we all make. what

better place to watch a program like this then in the bay area, silicon valley. thank you, ford thank you motivate thank you all for our partners here in the bay area. >>[applause] >> okay. i'm sure that henry ford was alive today he would take one of these person on the street right here right now. he was an innovator through and through. but, i do want to underscore something that we've heard from each of our guests this morning. cities nationally and globally are obviously facing extraordinarily new challenges. gridlock is not only affecting economic growth, but pollution is affecting our health but also the environment. it's very clear that the transportation system that we developed during the last 100 years is not going to work for the next 100 years. what cities need now is a partner to deliver solutions for the next century. i want to

tell you today that ford is deeply committed to being that partner. we were the first automaker to work with cities to tackle these new mobility challenges and we're bringing our 100 year, plus transportation knowledge and experience to address them. now, to some, this might seem like a pig of a departure from the business of building great cars and trucks, but the truth is, this is what we were born to do. because helping people-helping make making people's lives better as part of our dna as a company. because more than 100 years ago as was mentioned, henry ford he did not set out just to build a car. but he set out to do is give people the power to travel beyond the technological limits of the time. if for delete and

excessively making transportation to millions of people and not just the elite folks. so, when henry ford perfected the moving assembly line was able to produce obviously believe the model t's for everyday people and he pioneered higher wages that help create the middle class here in america. the result was the largest explosion in personal mobility that the world had ever seen at the time. now, it is time for the next chapter in mobility. today, we are announcing ford is teaming up with cities around the world and we could not be more proud to be starting here in san francisco to chart a new path in the new century. so, during the next eight years, ford is going to be in investing in a number transportation initiatives all of which are aimed at improving mobility. the area. the first part of this plan is the creation of a shuttle service that can

supplement the and expand the reach of traditional mass transit. we are announcing this morning that we are acquiring chariot a crowd sourced shuttle service based right here in san francisco and their ceo, ali-holly, raise your hand-okay. he is happy and the members of the chariot team. all right, great. >>[applause] they're all with us today we cannot be more proud than other the part of the ford family. the chariot, the chariot shuttle complement mass transit with fast libel and comfortable service. right now, mass transit systems in cities around the world are under a lot of strain. here in the us, it's a particularly distinct problem for underserved communities. we are a bus routes are subway lines don't

aren't always convenient. and getting to work or getting to school can be expensive and time-consuming which is actually is a silent barrier to progress. afterward, we pay attention to this. we actually think about this every single day. working with communities such as san francisco article very simply is to drive down the cost of mobility so that nobody gets left behind. from the very earliest days afterward, we have been committed to getting millions of people where they want and where they need to go. it's not just a business for us. it is what drives us every single day and it's the reason why we come to work every single day. that is why we are so excited about shovels. they don't require big infrastructure upgrades. they can rapidly adapt based on

demand and they reduce the number of cars on the road in congested urban areas. i really think this is an ideal marriage of our core business and are merging mobility businesses. the ford transit is the best-selling band in the us. lastly the best-selling band around the world, in part because it can be adapted to fit the needs of our wide variety of customers. it's the perfect platform for our dynamic shuttle solution. it shows the ways in which we are taking our work using our traditional knowledge and based on that, solving new transportation solutions. so, it's a win for everyone. we plan to grow our shuttle service to at least five additional cities and markets in the next 18 months. but shovels are not obviously the only transportation solution that we are pursuing. our approach is how do we offer cities a suite of solutions? egress window no two cities are

looking what works in san francisco may not necessarily work in shanghai. so in addition to the new dynamic shuttle service, we are developing some great obviously two wheeled transportation solutions. today, we are announcing off easily were partnering with motivate and their ceo, j walter, and to expand by sharing here in the bay area with the new ford go bike and as the mayor mentioned, we have plans to add an additional 7000 bikes in the bay area by 2018 emma all of which will be accessible through our ford pass by phone. what we will do is we will use the traffic data that we collect from the bikes to build an interconnected mobility platform. and a network and what we will do, it will provide real-time data that helps plan your commute based on weather conditions, usage

patterns, and of course, bike availability. fundamentally, we know bikes can be an essential part of transportation solutions in the city is the mayors were just talking about. plus, they, they have no emissions. this exam you get a little exercise which is a good thing it's a fun way to get around. so we think it's a win for everybody involved. today, also marks the company the kickoff of a new team we are creating inside the company called, city solutions. the teams goal and your goal is to work with cities around the world to conceptualize and then implement new ways of getting locals as well as visitors around town and getting them where they want to go and doing it easily. whether that is

through dynamic shuttles or whether that's through autonomous vehicles arrived billing services or bike sharing . it's all of the above. we are starting this partnership in service two cities right here in san francisco and we will be expanding it under the leadership of jim hackett and our new ford smart mobility llc. so, as you think about it you've heard the ceo of a major automotive company global automotive company talking about bicycles and shovels right it's a little different than what were used to. but that is because i believe that we are in the midst of a transformational moment in the history of transportation. not only in here in san francisco, not only here in the united states, but around the globe. ford is not only just an automaker anymore. we are also a mobility company and we are expanding our entire business to focus on both of those things. because we fundamentally understand that the world is changing. i think

we are uniquely equipped 12 cities and hope locals and help travelers to those cities are like adapt to the changes that we see going forward. for us, we also see it simply as an anonymous business opportunity as well but it's actually something even more important for us. you know, as i mentioned henry ford, he drove radical change at the start of the 20th century. a change that helps people around the world follow their dreams and help build better lives. with the freedom-what transportation don't worry about it i would just wing it. when you think about that it's amazing for us to be able to be part of this. to be part of taking this transformation and what our

founder did over 100 years ago and allowing us to participate to hope that transformation going forward starting in cities like san francisco and moving it across the globe. that's who we are. that's what we want to do to serve and we are so excited about doing it together going forward. so, with that, i know i mayors have some work to do to keep the cities running, so we like to give all of them a hand as they obviously have to go back to their day jobs. >>[applause] >> at this point, we would like to invite up our panel members and as part of that one of our panel members, jake, will say a few words. >>[applause] >> thank you. i just was going to come up. they were delighted to be working with ford, could

we are thrilled to be working with ford. it's really wonderful, but i also want to highlight the really hard work that everybody has done at the mtc, at the cities, in the advocacy community. this is only possible today because were building on the foundation of everything you've done. thank you very very much. >>[applause] >> good morning everyone. my name is doug newcomb present at father of the sparrow also journalists covering card technology for long long time and i have to say this is such an exciting time. as mark mentioned you kind of wonder what is an automaker sparrow 'weren't such a important time here. seeing all these things come together on mobiles of course public transportation with a great fan of your elect him quickly introduce themselves. doing a little more deeper dive into what mark and some of the mayors talked about today.

>> thank you lunch impacted executive chairman of ford's smart mobility llc. we'll talk about what it does a little later. >> hello. i'm all about the founder and ceo of chariot and very excited to be on the stage and sharing his panel. >> j welder ceo of motivate and just thrilled. >> great. let's go a head and get stuck. now the city's announcement with fourth collaboration with motivate innovative. jp your long history of working with cities to address mobility challenged. as you start to think about urban mobility, what role do you see but explain as part of the transportation system? >> sure. i come to it wraps of a little different perspective than ford does. my history is actually running large transit systems that i had the good fortune to run the transit system in new york in hong kong and in london. those are

incredibly powerful machines for development in the way that the city's work. a couple of years ago, when i started to tell people that i was going to leave that and go to run a bike sharing company, people look at me i can as a matter fact they sent it to me-are you crazy? but, i have to tell you that i've never been happier going to work than i am today. one of the things that actually is happening in our cities in the way that i think about this is we are actually seeing a revolution in the way that we get around cities. it's not the way it was 20 years ago or even 10 years ago. bike sharing program were talking about today whether this is a company that operates 30,000 bicycles 12 cities across the world, five years ago we were operating 400 bicycles. that is the difference in the growth that is taking place. if i were

to think about a city and said, if i stood on the stage v years ago and said, you could find a city in the united states is where there will be 10 million bike share trips per year, 10 million, you would have looked at me like i was crazy. we had 10 million bike share trips in new york last year. it blows me away in terms of how quickly it's happening and the way in which it is becoming part of the fabric of cities. >> there's always a lot of moving parts and no pun intended to transportation of cities. so i want to speak about obviously motivate works up close without test rotation commission ice and glaciers executive success one of the

key enablers for cities to have a robust bike sharing program as part of a larger transportation system? bedecked look i think it's the report the mtc is fantastic as they provide a regional framework for what's going on. their vision was about making small incremental changes their vision is about making things that really believe make a difference. what's going on in the region and they don't see it as being good enough to just hit part about being on they want a regional approach to what was happening. that's hugely important part into a get a second part is a city level. the idea of the way cities transforming their physical space. the infrastructure that is being built. i mean san francisco has built more than 400 miles of bike lanes in the last 10 years. does it matter? it matters enormously. the mode share with doubling of bicycle users in san francisco over the last decade. that's amazing. third, i would say within the cities, we have to recognize

that last week level as. the advocacy groups. the san francisco by coalition silicon valley by coalition. these groups in this area have been absolutely fundamental to establishing the framework of allowing things like this to happen. then, the ability to stay in here today and i said before, and i can't say it enough, we skin standards and do this because these groups have been doing all this work collectively for the last decade. >> a lot of moving parts. mark mentioned how unusual it is to have an automaker talk about mobility solution. i then allowed to 40 events and there's usually a vehicle inside why is ford getting involved in sheer transportation especially bike? >> i have to say is very proud of my comments this morning because they captured something that's important which is if you can stand in how to did you

see the city as one system might you can stand back and think about that and you see our vehicles moving in that system, with ford sees in the vehicles it sees the people. the people that are in those vehicles have a life that transcends aspects of being in the vehicle and being outside of it. we call that multimodal. as a consequence our interest is in the date of the life of the traveler, what are the pain points they face and how can we help improve their life as they traveled? how can we make the modes of transportation as we stare at it at high altitude be one system? this is the reason

we start to see the city really as our partner in this effort. we could just called city solutions here in san francisco is our first effort at that and what i'm most excited about, as mark hinted, there is data coming from all aspects of these nodes on the network. the bikes of any transmitting it to the cloud the dynamic shuttle is can be communicating can would have away these two systems help the user now have a better day. >> i'm glad you mentioned that because the other not but here today is ford's acquisition of chariot and i really like what was talked about today hosted a serve underserved community. you mentioned i want to ask, allie, how do charles put into the future the future urban mobility? >> a number of ways. i'm glad you mentioned underserved areas because one of the things that chariot is doing it certainly, lamenting the public mass transit system by providing access additional capacity to underserved areas and actually underserved kinds of days like the commute when a demand for mass transit services is highest. but give you an

example. one day, we walked into the office on a monday and we thought there were several hundred votes to crowd source a certain bout between downtown san francisco and the fisherman's wharf district where there's a lot of hospitality businesses by caltrans cruises mucky ppr 39 on other hotels. delhi square. those companies actually employ a ton of hourly workers hospitality workers were coming from the east bay using bart. what we found was all of these voters for this commute between downtown san francisco and the tourist district were actually the employers coming in and encouraging their employees to crowd source a bout, a chariot route and overnight we had

several hundred customers coming in from the east they using bart as their main trunk line using chariot as a last mile commute between downtown and their hospitality jobs. in the morning and getting back to bart to go home in the evening something we were really proud about. before the word multimodal pure a number of times as well. chat it just becomes a nether option for city rollers to actually get around town a lot more efficiently and hopefully keep their car in the garage until saturday and sunday. finally, we are not only a-we are actually ceding the mass transit services. we are really proud to say that one in five chariot riders is actually using the service as a first and last mile commute to things like bart and caltrain, the ferry system and transbay bus terminals. whereas, people were driving to pile also or berkeley another taking chariot to caltrain, jumping on the baby bullet and getting to work without having to take the card out of barrage

>> i think one of the things that were seeing now is all the pieces coming into place like you mentioned is not just one would've transportation. it's many are glad you mentioned the underserved because my group worked closely with sec. fox and the dot for the smart city child. the one thing i took away from it is i think it's 20% of income for the income families goes to chess notation as opposed to 70% for middle-class families. this is around the globe. so jim, i want you to talk about what role do you see shuttles playing globally because as mark mentioned, this is not just the us that ford is looking up at a global solution? >> on vitale to help me with this answer but the opportunity is the inevitable growth of population in cities for example in china by 2030, 75%

of its population will be in cities. some of the cities have not even been built yet. so were going to need a system solution that's well-designed just like talking about here in san francisco to handle that population in these dense cities. what happens is, is refine all over the world the issues of the same in the systems. probably the way our electrical grids and computer networks are the same all over the world. [inaudible] >> i agree, jim. when my inspirations for founding chariot was when i was traveling around the world i would see chariot type services in mexico city or point is always a: collecting those [sp?] tel aviv is really calm [inaudible]. we did not invent the concept. we're just going to use technology and all the

resources that we now have a really proud to partner with ford and take chariot to the next level so that we can create the perfect urban community commute >> to wrap up, jim and i like to hear from all the panels on final thoughts as we think that cities as the future helping companies like ford would've eight and chariot continue to work with cities on mobility solutions and am really curious to hear how the use of ford city solutions work as well? >> i want to answer that but first i want to pay some thomas today because jay's history, if you look up his background he's been involved in design and managing big urban systems in china, for example. when he talked to me about the role that the pipe laid in this model of the future, it wasn't long for me to understand how important this was. as you heard the mayor celebrating the role it's going to play. then, we have the notion just limited had 61,000 riders in new york,

one day this week. so, it tells you there is it really important demand here that is for us to unleash together. and, as we think about this in the future, remember her now can have data that helps us to see the invisible roots that we tell each other how did you go from here to there. what actually can i know what those are in ways that we can make transportation system together. >> i went out on a couple things and thank you very much for the comments, jim. i think one of the things we are seeing is that cities are evolving incredibly quickly. the base is changing in cities. the way in which people want to be using areas and patterns of movement. actually, outstripped our ability to be will to respond to just traditional transportation models to be able to do that. the 20th century, if you think about it, was a century where studies

were shaped by infrastructure in the development of cities came alongside the infrastructure. the 21st century has not been like that at all. we are reshaping cities around us all the time right now. i think one of the times that it usually important in both of these initiatives show this, are things that create a canvas that people can paint themselves. that they can fill this in a way that is if it's them and ultimately, yes, they made need to be more heavier scale and larger infrastructure investment to be will to do that, what part of this issue and, i think, if you can get this type of system out there if you can put the technology behind it people will shape it to with they wanted to be >> so, doug, when you asked me how the sunni cities feeling about this, we can get to them fast enough. in fact, i have to say, i'm proud of this could

they said there's not very many automotive manufacturers talking to us. really, ford is leading the way and thinking about the city as a partner in helping come up with these solutions. speeches were very proud in our home city of san francisco that we've been very well received from city hall, supervisors and the districts where chariot is helping their constituents heading to work and homes faster more reliably and you touched on something about affordability. chariot's average affair is four dollars. so, we are using technology that outsourcing technology, to figure out where the bunches of people are and driving down costs and this is, with ford's hope, we and the data and telematics and all of the systems were going to continue to put in place, we are excited to drive the cost down even further. >> as you mentioned, it's a systematic approach a systemwide approach. i think

that louisa take away. here we have someone from an automaker someone, dynamic shuttle service, by giant and i think the other thing is, what i've seen and this is one my takeaways from working with the dot, to the med were talking with all the mayors and we saw three of them here today. mayor , atlanta said last year that an event saying, we want to get elected. transportation is a huge part of what makes a city livable. with meir adler in boston as well. i think the bottom line is this technology and j, you touched on it the technology is really going to shake it be broken to shape the technology. i think the take away we are going to see all these different solutions coming together and i too applaud ford for taking the lead in doing this with smart mobility in bringing these things together. so we will wrap up there. we will be

available for questions after we wrap up here. so, if you have questions for the individual panelists, please he is after the settlement with that i'd like to wrap up and like to thank the board and also motivate and chariot and of course the city of san francisco for hosting us today. so, thanks very much. >>[applause] >> >> >> >> the annual celebration of hardly strictly bluegrass is always a hit now completing itself 12 year of music in the incredible golden gate park. >> this is just the best park to come to. it's safe. it's wonderful and such a fun time

of the year. there is every kind of music you can imagine and can wander around and go from one stage to another and just have fun. >> 81 bands and six stages and no admission. this is hardly strictly bluegrass. >> i love music and peace. >> i think it represents what is great about the bay area. >> everyone is here for the music and the experience. this is why i live here. >> the culture out here is amazing. it's san francisco. >> this is a legacy of the old warren hel ment and receive necessary funding for ten years after his death. >> there is a legacy that started and it's cool and he's done something wonderful for the city and we're all grateful. hopefully we will keep this thing going on for years and years to come.

you. >> good afternoon, everyone please rise put our raise your hand over your heart and pledge

and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. >> good afternoon. welcome want to apologize we are starting 10 minutes late this is wednesday, september 14th the regular schedule retirement board meeting i'll malia cohen he chair this board meeting to my left is mr. stansbury and mr. clerk how are you today. >> just fine. >> good do roll call. >> commissioner cohen commissioner bridges i believe commissioner bridges is excused commissioner driscoll commissioner makras commissioner meiberger commissioner paskin-jordan she's here. >> mr. stansbury we have quorum you. >> i refreshment that could you call item 3 occlusion.

>> all right. ladies and gentlemen, we'll go into closed session we'll resume at the 2:30 may i take public comment what we mr. wen beggar and good afternoon, everyone thank you. we'll come out of closed session. >> everyone can take your seats thank you very much may i have a motion from one the members of the board not to due process with was covered in closed session a motion that he snielg e commissioner driscoll and seconded by commissioner paskin-jordan without objection this motion passes thank you. >> mr. clerk could you call

the next item. >> on the agendas. >> item 4 general public comment. >> thank you all right. ladies and gentlemen, now is the time general public comment you'll have to men's to talk about anything that is on the agenda please come forward if you're interested in speaking there are no speaker cards. >> i'm opening up the platform at this point thank you good to see you. >> i'm john a 42 year member and pension fund - last meeting professor commissioner meiberger he was in management why i think he said can you give me 3 reasons to invest in the hedge funds the first reason he grateful was all pension funds you get the seam answer protection in a down market my comment is it is a fallacy you

get protection in a down market for hedge funds what is important calpers is in hedge funds for 15 years been in up and down market and flat markets and after 15 years of out of hedge funds why? because you get a 4.8 percent average over 15 years and for that 4.8 only paid hundreds and probable $500 million in management and performance fees that's my comments on that i'd like to brought to your attention a bluberger report of 11 large pension funds with hedge funds investment and religious are basically said in brief on this hedge funds generates market retains after the management.

>> pause the mind is that your phone. >> i don't know. >> that's my hedge fund manager. >> anyway. >> 30 seconds. >> i should have long-range because not that many people only a small number of hedge funds generate the market - secondly, hedge funds that were studied and the best of prime and similar assets in the p,z&e, finance governance also showed very little or no defer indication in investing in the same thing the exclusion of the report on a few. >> time. >> hedge funds generated by harper and the transfer of wealth none of the hedge funds studied beat the market this is a bluberger report and the other respect report. >> i wrest me access and anyone that wants to speak in

general public comment at this time please come up. >> commissioners mike welfare for the piano piano pee pee he tell you our members are pleased in the he come shawn thank you for the compensation for the year and a half spent getting that together and for approving it working quite well, thank you. >> good to have positive feedback anyone else? >> all right. public comment is closed. at this time thank you, thank you mr. clerk call the next item. >> and item 5 amble action approval of the minutes retirement board meeting. >> a motion on this item.

>> all right. let's take public comment on that. >> line item on item 5. >> all right. seeing none, public comment is closed. may i have an action item may i have a motion to accept the minutes. >> thank you. is there a second. >> second seconded by without objection this motion's mason passes thank you mr. clerk, please calm u call item 6 consent calendar. >> public comment on the consent calendar seeing none, public comment is closed. the motion to accept the consent calendar >> moved. >> motion by mr. stansbury and seconded by commissioner makras without objection passes unanimously next item. >> item 7 review and approval the investment for firearm and manufacturers and retailers. >> thank you a presentation? just a brief presentation this

is a report we present originally to the retirement board at the july meeting and it was requested we bring it back to the september we've updated the information regarding our holding as well as addressing an issue by commissioner paskin-jordan we included the action that was taken by the new york pension plan in addition to devesting from the arms and ammunition manufacturing companies they voted recently to deresist from the retailers that sell firearms that was presented to the board in a form of a board of supervisors resolution if supervisor farrell and this is under the social investment policy of the board and staff has no recommendation

on this because it is a policy call of the board i'll be happy to answer any questions you may have. >> you might have about the information we've provided overall in fact, if the action was taken to divest from either or firearms mustards and/or retailers we've indicated that the retailers were roughly $829,000 worth of holding and in the arms and manufacturing we have $741,000 in holdings. >> thank you, very much. director for that representation colleagues any questions. >> no questions? any questions >> please. the definition of firearms. >> i remember him raising that. >> i didn't see it in here.

>> we've provided a breakdown continue the military sales and civilian sales here's. >> so these are with one exemption that is a-2 a page 2 of the memorandum all the other firemen's are small ones the a-2 k manufactures the small arms but less or military so large caliber and other weapon systems. >> thank you. >> anyone else let's go ahead and take public comment and back to a motion ladies and gentlemen, public comment on item no. 7? all right. seeing none, public comment is closed. is there a motion ready for discussion on this item >> i'll move the item. >> okay.

>> little memo i want to call out the board resolution and or for the record dianne feinstein referenced the passage package didn't have her letter it in it. >> thank you very much a motion made by commissioner makras and seconded by. >> i'll second the motion. >> seconded by commissioner meiberger let's do a roll call vote. >> all right. commissioner driscoll >> yes. i'm going to make sure i understand the definition of firearms i'll say i. >> yes. >> all right. >> i. >> all right. thank you very

much call the next item. >> oh, excuse me - call 8 and 9 together any apologizes. >> today reporting on the managers review. >> thank you. >> over to bob and allen the top news the fiscal year ended we return one .3 percent that is actually a loft i didn't return squared to our piers our piers lost points we've outperformed the medium by one .8 percent are relative returns around 16th percentile and top 10th percentile under the 3

years our returns run 4 to 57th percentile and in fixed income in the 10th percentile in private equity so mixed news the markets were innovate generous tough but we are having good out flee with that i'm going to turn it over to bob and allen and allen has terrific math for supporting information for the board. >> board members was we recorded later quarter trifgsz the performance books to n ot c this is the first time we'll appreciate any commissioner kim's from the board regarding additional information what we it finds useful and like us to do in in addition to any

feedback is greatly precedent on the book with that comment i'm going to turn it over to allen a walk you through the macro daylight with the fun level performance information. >> hi to bobs point all of it to the custodian we're working on the breakdown of previous quickest and real estate to give you more information we talk about it you'll hear the asset classes bill has given you the report we were going to give me you. >> (laughter). >> i do want to point out a few things you have before you a report that covers ending 6, wri78 and the quickest market value are autopsy its opinion up and down and bill will report he did this

to me he'll report later your performance through august is up about 3 percent so in the months since this report you've generated more in the entire fiscal year we're covering as you can see this is a difficult periods for most public to find benefit plans with a medium return for the fiscal year of negative points the average to define the public plan lost 50 base reports of return net of fees last year that's the second year in a row and the third year in the last 5 years where public plans have dramatically underperformed and unfortunately your outcome going forward is more of the same we're operating ouch a low

interest rate new invested 60, 40 appendix in local stocks and bones over the next 5 years you'll earn 5 and a half percent 2 percent over our assumed rate as that's 60 percent. >> 60 global equity and 40 percent be quibble bones we think you can do better than 60, 40 and add diversifying classes and gain that's a discussion for early next year i want everybody to know there is a very challenging environment. >> can i ask a question. >> yes. >> i didn't get the numbers what's the next 5 years. >> next 5, 7 toro asking, 40

global condos 5 percent and tim collin will give you a more depressing number. >> what's the number. >> i'll tell you for 5.7 percent for the last year okay that's the sort of the headline we'll telling you talk about what worked and didn't work and the attraction to the martin luther king the economic environment this is highlighted on page 4 is as we expected and very consistent with what we've seen so for the last 8 years the united states has been a in a slow recovery so 72 hours

lost one of the weakest in the second quarter g b d growth up 2 percent retail sales looked better in july and employment's we've come down and employment numbers look better but in a long slow recovery and unemployment in the united states has dropped to precrisis levels percentage the labor force employed to lower than hefk by jobs radio doing well but not as many people have jobs inflation remarkable low we continue to see low inflation and as you can see the hedge funds rate was unchanged from 50 points the 10 year treasurer yelled at the end of june was 1.6 percent a deputy director

from criminally low levels why prices caused forgotten buyers to buy the treasurers that brought up the prices so what it didn't have a huge impact on u.s. returns it did have an impact think foreign buyers of u.s. bones and it products i products an ongoing lower interest rate the outcome globally is not as attractive in the u.s. 24r50 europe has some signs they've load the interest rate belonging blow zero for profits they look better in some sense europe is doing better and which we think has a terrifically being effect on the merging market we feel that the dropping of chinese growth down into the 5 percent is stabilizing they dealt with the biggest parts of economy that

were in scissor so the baengz the building area and they seem to have stabilized and weathered the stateroom converting from a largely internally to a domestic economy that that's the general news that's translating into markets i'm going 0 going to go over the details but highlight some things with the one year period union street eligibility returned 4 percent that's versus the 12.5 percent over the last 5 years we think this 4 percent is for consistent with what you'll see going forward if you look at the negatives on to page very much market equity significant negatives this is the courtesy effect if you look at bonds

you'll see surprise the barking let me see index up 6 percent that again was driven by interest rates going lower and producing attractive bonds we don't think this is sustainable it is close to the current yield to maturity that is a one .6 or 7 the biggest surprise is non-dollars meaning bones of forgotten country's up 11 percent is your advice years ago the worse performing class i would have said non-dollars bonds yields lower than the u.s. bonds and engaging in the- what happened in europe holders did very well and not sustainable the other couple of items

calling your attention real estate did well and hvsdz for the year doesn't do well although you look at the 3, 5 and 10 year results closer to the light plus the numbers but hedge funds in general this year didn't do particularly well that's it the market environment i wasn't going to spent a lot of time but the year we've seen looks more like we expect to see in the 5 years we've been through. >> if we go to the punch lining line for san francisco on page 20 as bill has already told you the top line it is r is the net even if fee return and the ranking in a public universe of plans grandchildren a billion dollars so if you go along the top line experts have ranked highly if you look at the 6 percent 3 years top 3 percent and, etc. only in the 5 year

period have you matched 9 summoned rate if you look at the reflex adjustment in the table your volatility is medium when you look at our sharp ratio that is the return you earned must the risk per rate you'll call that zero divided that is the sharp ratio and our return for united of risk on the metric i do skwiets well top 5 percent and 13 for 3 years we also report this ratio when is which is is a down side similar results on to a reflex adjustment your plan even though you're right at volatility did well, if you go to the policy index what you would have earned if we rebalanced the policy

target and have all our manages match the benchmark to the difference continue what you earned and what policy would have gotten you the effects of manager out or under performance or tactical position of portfolio we'll look at where the effects came from with you compare the returns to the policy you'll see over the periods certainly for the one year and the 5 year period unifying your policy index did better than the actual returns the manager contribution met was below which you hoped and the effects of tax tactics you see a bunch of recent under performance the under perform is

structurally as opposed to the others so those are the results and see the numbers for purposes the medium public fund blow it. >> if we go to the next page and look at the positioning of our portfolio versus the boards approval policy prior to the february last year taushts you'll see that your current percentages are very close in general to the policy prgsz the defenses are small with the description of private equality and the offset numbers have to add up to one hundred over somewhere this is the eligibility so the money you've not be able to employ in private quilt that is structural because you can't get to the target

right away creates an allocation felt negatives the private quickest was done well and you've been under our target in private equity one the ranges you approved except for cash at the end of june your outside of cash range it is waiting deployments we don't expected to to continue your above our cash at the end of june. >> any questions about that. >> i'm not going into the next page. >> director sorry. >> thanks on our page 20. >> when your ranking us walk me through what our pier amount is. >> won their public funds, two grandchildren a billion dollars, their 55 in this universe you

use a net universe your ranking in trust universe is similar we've talked about you're a large plan in that universe so we could indeed switch you to public plan grandchildren $10 billion i'll tell you the results are different and the problem with a bigger universe your logging membership and the universe is less robust and those are the numbers. >> sure. sure. >> that would be great. >> on page 21 versus target you've recorded a prior policy why would we use and other policy. >> the policy that was approved includes the 5 percent allocation to hedge funds as of this point has not been funded so the more relevant mexico to

look at it the prior policy once hedge funds are in the december 31st form and quiescent that be more accurate with hedge funds to zero it out so we know where the asset allocation came from and then understand maybe more money in into something else. >> the outlet issue the majority of period of time measured the one year was covered under the prior allocation we made that decision in february we haven't started with implementing at least some of the changes we've made some movement but certainly can do it measuring it against the current new february 2015 forward. >> because you know at the end of the day you want to be able to accept the reports and if you look at this not consistent with

what our business is in allocation for instance, you are policy for i's kwikts is 23.3 is that what it is. >> agriculture the documents are dated for june ending 2016. >> is that our policy you i don't believe it is. >> actually little policy reads 25 the outlined policy not 25 it is 20 now. >> so maybe i should ask would you mind talk about the real allocations. >> the instruction has been the last policy we've adapted and implemented so again, we're in different to do that. >> and been inconsistent with what we're doing i might as well rollback the money and see - >> not uncommon with plans implements new allocations as you have to waited fill that

allocation is actually filled before you start the measurement you don't have to do that that way for example, because we're increasing private quickest from 16 to 18 and 12 to 7 those are long dated investments you made to the capital it is not called for a couple of years, etc. a common practice that plans do they report their existing policy their previous policy and then they amortize the commissioner tang to the new policy as investors that's a very common practice that's what has been done. >> well when this is called yes, but not when the policy is made because i can't make the investments right now investments when -

>> you make the candidates and the capital is called. >> this is called or not. >> 245ir9s not asset value so that's - (multiple voices). >> in addition other 2 housing unit $7 billion in uncalled commitments. >> after we started 2 - that's the problem with committed capital not out there aribnb money o money within

private sxikt. >> bill said all are mid asset called. >> what i'll suggest we recognize the change between the existing policy and the new policy as investments are made not when the policy is made but when the investments are made and off to the right what question show you know for long term policy that way everything is clear. >> and since your schedule calls for reviewing asset allocation early next year i think at that time, not only the board approves we review the benchmarks and to bills point everybody has this issue you put

a long term policy for private equity - bill said you can create an interim policy the ability to invest assets over time and create had is so-called a tactical policy there are pros and cons to all of those things we can address them in the discussion and make sure our confront with the benchmarks as well as the reporting this give us the best favor for how you actually did versus a policy that was operated over the period in which you're doing the investment but has clauses as pointed out. >> is that it. >> the challenge he referred to the 10 year numbers we have a

return based on for measuring the actual liabilities we say we'll loot h look at but perhaps our return is incorrect it triggers all sorts of disagreements and fighting and maybe a loss that's those numbers we have to understand what system at this time. >> this is my last i don't want to hammer it within the scope it is that complicated this is a 2016 which accurately reflects what we're doing today in previous equity when good evening invest wool have a total of one hundred you'll have the money has tobacco allocate on the schart. >> that's correct. >> so if we put zero we owe to

ourselves to say we have the hvsdz program we have invested money nothing wrong but it is more actual and there's a minimum we should show the long term policy. >> again, that's part of the feedback certainly tooesz to do but the policy versus the results that transpired during the period so okay. >> thank you. >> thank you for being open on suggestions i have a few of them first of all, number one this is really hard to read i have my reading glasses if you could make the numbers bigger there's a lot of kwhiert and naomi kelly

we have commentaries. >> this is the accuracy and number 3 i want to talk about some of the specific numbers as i said ravrdz the ability to read them if you can find a way to make the numbers bigger that would be good think page 20 our most important page page 20 this is your schuf summary question used to have those for people that liked the ends of the short story so emphasis that that is extremely key number 2 more accuracy of previous reports two digits to the right for the decimal here one that's a big deal okay a really big deal particularly with rounding errors to be consistent with how they did it previously to show two digits to the right if i could do that and number 3 the

accuracy of the numbers i'll didn't go through all of them but page four of the report you talk about the fed fupts the 10 year treasurers at the 1.6 down from one .9 i looked at the w . www.treasurers dot gov. i'm getting different numbers that is specifically the 10 year treasurer for this second quarter that is june 30th and yields of woven .5 from 7.8 down i got those from www.treasurer dot gov. we consider the primary source. >> i will check that's

specifically what they say if i look at that questionability that specifically states 10 year treasury again, if you have two indicts to the right of decimal that will help figure out the data source but two digits to the right of decimal it is very, very appreciative of that. >> we'll make sure we include that to two detection is very simple. >> you have round inner correctly it is not rounded. >> okay. >> the alpha we underperformed the policy benchmark i wouldn't clarify that has a benchmark

positive i wouldn't characterize that to review the benchmark is emergency room in i invested all the benchmarks so for example, a policy index for 3 months on page 3 thank you for pointing that out we did one .5 percent we're under for 3 months and 90 base points for 3 years and, etc. that's when i look at houses i'll consider verse the policy benchmark so 2 looks better by the 3 months is a negative we've underperformed the benchmark is if you want to clarify that bill. >> sure commissioner maybe i should have used assess return testators the first line item and it appears i mean obviously

different weighs in the classes that might not be the bank of the west matrix to use when i look at the alpha i look at the policy and see performances based on that all righty those are my comments i'll be brief thank you for presentation and look forward a point of clafrngs on page 20 the charts may we have that to the next page that's my recommendation. >> there are many ways. >> still 2kw50 small we'll work on that and presents something different and you'll determine if it is two small we've heard you and expand the decimals and increase of legibility. >> page 28 applies to the other charters i can't see the

universe medium symbol perhaps an explanation. >> the intersection. >> either in the paupgs but similar to the 68 percent number i don't see that as well that's fine but we use the number 95 when we talk about the rain water of return on the liability side so we put it on there i assume that is an important number to look at it and the explanation of the reports for the d b like to know who the pier group that much pier group we should know in the case people want to pick up on that and the same with the universal an explanation will help that's the first kind of reviewing the

context. >> since you brought it up 27 and page 28 are depictions of every dot on that page is a fund grandchildren one million dollars it should be 65 and in risk return space so anything if we say page 27 look at the one year anything above the horizontal line is a return higher than the medium public funds and anything to the left of the vertical is a very well outlet to the public funds if you virtually look at those pages you'll see during 24 period of time whether one or 3 or 5 or 10 year ending san francisco has generally returned a return higher than the medium public fund and the volatility is roughly about the same as the

medium public funds threat the takeaway you're not articulating a heck of volatility risk and average earned a reasonable amount our comments on defining the universe the medium is where the lines intersect i will suggest if so important for you to look at that one year result we plot you and your policy index and to commissioner meibergers point your policy index has a higher return in the one year than you actually earned we'll talk about where that came from but you're actually less volatile the actions produce less volatility and less return if i look at the trade offs your sharp ratio is arbitrate less in the actual than in the policy but that's

adams a an interesting effect we can say the acts of our manages or allocation took uaw from the policy return they returned the reflex are in terms of volatile i wasn't going to go through those in detail we want to talk about attribution look at page thirty those are the fiscal year returns the universe of the putting their lives on the line public plan for 6 fiscal years and see san francisco's numbers are at the top of every one individually but if you draw a line from the left hand at the 7 and a half percent you see not only did you not make your 7 in each in the last of 3 years but

virtually no one else did i'm saying that is good or bad this is a trying environments and all the criticism i came to you years ago is coming back because public plans are not aribnb their assumed rates that will raise a lot of questions in terms of the public so this just lays out for you what that challenge is. >> this is on public pensions. >> if he did this cooperate cooperates have slightly different they have liability matching stwraejz but the actual performance is not a heck of a lot deficit it is the environment we're aribnb low rays think stocks and bones. >> didn't calpers move they're

done. >> the actuary is here to reduce the assumed risk. >> do you know what calpers did. >> i think. >> actually, they have a complicated formula only reduce in times why they make their assumptions a thirty year plan with very little likely hood of movement laura. >> your actuary is here you have the afternoon assumed rate four or five years ago the medium average has comedy guess 7 and three quarters. >> how many reached they're what their experience now we can take whatever numbers you want. >> we'll show you nobody did in the last 5 years for your

informational purposes 5 years ago the expected recreate of return was 9 percent the actual returns have been less than 6. >> that's not - >> the reason he start this line of questions other institution that are achieving higher rates of return and if so can we capture those things. >> is there more you can do yes are there more doing it no the best public funds did about 2.7. >> never mind. >> on that note howard was there any again data set. >> there are endow time in this period they've dysfunction

better than public funds that's 2009 always true we went back four or five years and tired to liquidate a portfolio they didn't do has well, we keep track of the endow time and others internal reven. >> i'd like to know how the endow times do. >> over the past year they were tough their average were negative one and a half percent port commission the same average return of pension funds over 10 year period of time whereas, a top performing pension plan has been 6 percent you know the top 10 top 15 ensue times are more in the low 9 to low tens. >> the top performing endow

times and the pension system is 3 percent. >> over 10 years but over 10 years all of these numbers are very period specific to and that's true i have no reason to say we can give you that strategic not off the top of my head. >> okay attribution we have regarding the endow times different fiduciary standards i'd like not to mix a big thing as harvard before the financial crisis i don't know if they've gotten back to where they've been to the optimism is over rates harvard has not done

well, i have no trouble seeing the endow times a different set of laws and rules and fiduciary rooblts is different and many, many other factors i want to innovate make the apples to apples comparison and certainly for our transitional curiosity. >> we will should it as data there are modest very understandable differences they have doors we have tax base and contributors you know one thing i don't like about endow times they're very, very competitive with each other if you're the 6 or 7 rated ivy legacy school you'll get bounded out of town even if your returns

are good the it up endow times should consider where to take risk and how much rather than xairz themselves to each other. >> thank you. >> and to be clear the reason rechose public funds subject to the same rules and regulations so i'll never mix-and-match only ask for comparisons. >> i'd like a larger one that commissioner makras has discussed. >> i'll show you the rest and the allocation the number of trade off is a smaller universe. >> could shrink from 55 to a board significance. >> i'm not not asking for - then you're able to look at what they're doing and look at the asset allocation their track

record and get a better understanding where they're coming from if you grew up them, no foundation whatsoever other than the rankings. >> certainly. >> a question certainly pension funds they have subtle differences at the end of the day they're trying to minimum risks and everyone has a different obviously but maybe something to be learned into say endow times that have out paced you guess by 33 percent that's sixth that's billions of dollars and under opportunity and overfunded i was trying to understand. >> there's something to be learned from everybody you can corporations have sensitivity about the volatility that is

defined the benefit plan we're introducing to the balance sheet that's something to consider. >> the you know the top endow times have been return permissible and there's something to be learned from everyone. >> that's my point having the data to be looked at. >> the point whether asset allocation is a public funds drives everything less go back to page 27 it gets f it and why look at page 27 the do not are higher returns not many of them by notice everyone has lower volatility i think we'll talk about this in asset allocation that's been a successful

strategy in the most recent one year period and going forward given the market value that will likely be something that works in the future we may learn out of that but to our point i can get you a list of individual funds. >> how the did and look at those and pick those that are close and different this is a at some point to try to engender this discussion. >> commissioner stansbury the difference between 6 and 9 percent is $600 billion over 10 years it's a worst pursuing and how to - what is achievable institutional differences and what assess do they will have we

don't but given the magnitude of the potential of the status and a permanent institution our are timeframe is correct i've been on the boards it is worth learning from. >> transmissiontion but page 33 i want to use this as an example not using it in a meeting but easy to see in porter how the numbers are clawed and a longer periods we'll weigh terrier to take the dollar performance against policy the rate of one and a half versus the policy of one .9

we are going to break down into how much was manager or outperform of benchmark versus the over recreate of the classes that did well and those if didn't the actual returns is the line the selection effect which is the average effect of managers under or out performing the index negative 40 base point voourp all the managers were under performing very little allocation to see it to the chart to the left what you'll see is that private equity was the culprit now you have within of the bank of the west equity projecting programs but that's 5 hundred plus 5 you under

performed that in effect was significant i don't think that has nothing to do with with our asset class you have to take with that a grain of salt on the other hand, equity has been a consistent underperform for the one, 3 and 5 years we can draw a realistic conclude what the corner will say mostly the manager and u.s. equity and previous equity with the back deputy director i'll under penalty of perjury you to a one year and 5 year period so the period under performance versus policy of 90 base points noriega 20 percent is selection and 60 point is allocation on the selection see you still see u.s. equities under performance you see private equities but much,

much closer and fixed equities if you remember people were worried about the rates and you took a lower benchmark you underperformed and it was a strategic choice not managers doing poorly on the allocation you'll see the tack i didn't line the biggest effect of allocation were up underrated private equity that's not a structure effect with that, look at 5 years because 5 years you start to see something you can begin to take action on for 5 years the performance of the portfolio of 7.6 percent the benchmark is 7.8 smaller under performance and if i look at the

commons you were positive and most of it was the allocation the under allocation to a nice performing asset most of your asset out performed the benchmarks and look at the line private scombikt you own 1 percent a year your benchmark is 17.7190212.2 percent plus 5 percent i think when we talk about asset allocation and the covered california people will say expect the 15e7 is not likely to happen and perhaps subject to adjustment the u.s. equity is a systematic underperform you draw that conclude and other classes with the fixed income have done

better that's the attribution page you'll see that each time i'm not going to go through the remaining pages but they get into the asset class versus the assets and then the last area he'll calling your attention is all of these are performances versus benchmark you go to page 50 let me - yeah page 50 those are our asset classes composite versus pier groups composite 24 shows you in a return and a risk adjusted basis how you've done versus our pier group the amortized you see the ranking and the tracking error and