it is a bunch in the belly in terms of the numbers is -- during the gsb. we are going to go over returns data in the weeks. you see here also in the graphical charts, in the rolling volatility is we had unusual volatility here for the last three years. occasionally it works well and occasionally not. it does not work well... it does work well in the decline. you see here on two occasions we -- only once on a physical year basis have we lost more

than 7.5%. we will show the data next week. the next couple of charts just show some of our geographical and sector exposures. the first two on page 2 and 3 are dollars as currently invested. each three has the -- we have a very u.s. centric portfolio. on page 4, what i would note is when you have some sector variances. 70-30. it is to show you what the portfolio would look like. versus 70-30 is the technology by the previous 3%. 3 and a half for real estate. real estate is not well represented in the public equity

inde index. we anticipate this changing. we don't have much data exposure. in the next report, we will be including our provision. you will see how diversified we are and the active weight showing how different those. the margin positions are versus the benchmark. i will open for questions. questions for the board? >> i have a couple of questions. on page 2 of the exposure report, it is committee capital? going back to page 3, in the 6th

column, it was labelled target. going back to the question, this is the policy number in returns, right? we show a policy number? page 3. is the target the policy or the same thing? it should be perhaps relabelled target. i want to make sure we are talking about the same thing. the answer to the question is this. secondly opportunistic --

>> the next issue you have to deal with, was the private equity deal. a process question. the equity area. the board approved in october a lot of work is going on with this. the question i have about that has the legal team been identified and available to start work on that once the board decides because i asked that question because of the length of time to

>> we do request legal assistance when there is due diligence. we don't know until it is done. when we do know, we do request assistance. >> we have a couple of unique policies. we expect the managers to comply with in san francisco. it is international measures and another set of law. my question is have the lawyers been identified and they are ready to work so we don't have the same execution problem we did the last time? over the years, we provide them a sample in the agreement and all of the boiler plate requirements and in their response to the -- let us know

what parts of this thing you do not agree to. >> the information transfer, the question you need to bring onboard to execute as we focus on who the finalists were, we go and make sure that if there are outstanding issues, we do not engage counsel until we bring a recommendation to the board. but we have a pretty good idea based on what they responded back to us that there is no deal killers from our perspective in our contract that they cannot agree to. >> we get on top of potential deal breakers before we get started. there is a disconnect because the people that generally

respond to our case are not necessarily legal counsel. we are making an effort to put them on notice. thank you. >> questions for the board? very well. public comment. are there members of the public? and i don't know [indiscernible] china as you know, they can change the economic policy

overnight. they can make the prime minister for life. and the same with the economic policies. if you want to invest with china, i think the only way to do it is by buying american international corporations. in china, you like kentucky fried chicken. i don't know if you can invest. i know you can invest in kentucky fried chicken. i recommend that you invest in china, you should buy international corporations and invest in china. they know more of what is going on in china and the markets. >> commissioner. >> any of the members of the public like to address the commission? >> public comment. i just wanted to make a couple of clarified comments. >> public comments, please. >> okay.

>> i understand there were two closed on monday after the [indiscernible] the asset fund we requested 50 million in january. and we did get 50 million. and the value of your fund, we got 50 million. >> clarifying comments. you mentioned the private market is a private equity in the return portfolio. and the capacity we received relative to the amount that was approved. the board did approve $100 million for the investment. we invested 20 million and that was really an agreement between the manager to invest.

we do intend that we will sign the investment eventually. >> thank you. >> commissioner, before you do the monthly report, if there are no questions i would like to go into the two more items i have. one is the investment changes. it was successful. the changes have been online tonight. and the participant will see the mapping effective on their statements should they be invested in the map fund.

and the invest line up has been updated and the fact sheets with the new funds are available for reference. i wanted to share the news with the board. the other thing i want to update is the administrative request for proposal. we have signed a contract. that contract is set to expire january 31st, 2019. and so we are about to issue an rsp for third party administration. we plan to share the draft of the first draft with the committee on monday. i wanted to share that with the board. there are no questions. >> it will not be released until mid-april. >> that's correct.

>> i would like to address the commission on the station manager report. >> having closed public comment. questions for the board? thank you. >> item 13, the next item. the consulting services request for approval. >> commissioner, the audit is prepared every five years in accordance with the reporting policy. the purpose and i am going to provide an independent review of the analysis -- analyses and preparing for actual evaluation. and the draft is before you. i would like to draw your attention to the selection criteria. on page 4 of the draft. there are five bullet points.

and required by our service provider selection policy would be 10% for the first bullet. 15%, 40%, 25% and 10%. and it would help us evaluate. if the board has questions, i would like to answer at this time. >> are there questions? >> experience and qualifications to the proposal. >> we can only judge the companies by the proposals. how well they are communicating. how well they will be able to convey to the board by their proposal. >> this is unusual because of the short-term engagement. they are only here for two or three months.

you know, it looks like they gave thought to the proposal what they submitted. this is the short-term engagement. >> any questions or comments from the board? >> we will close public comment. that is the motion. passed. item 14. the financial statement and indications for the year-ending

june 30, 2016. i am not sure in detail you are planning to go. we will focus on deficiencies or areas for improvement. >> my presentation would be brief and i will take questions on what i have. in terms of the audit, the financial statement audit. it is a comparative financial statement. it was comparable. [indiscernible] that may be significant to the financial statements. and all of this is in the

report. i can take questions you have. >> i would like to point out that this is the 18th year that we had have clean audit. where they found no material issues that needed to be reported to management. when i started there was an issue related to school district payroll. and so i congratulate the staff for the hard work that they do and we are grateful that we have an ongoing at least 5-year working relationship at this point. an independent auditor was hired by the controler's office to audit our financials. >> question. does the audit cover any of the money flows in the different

compensation program that we all have a responsibility for? >> i did not. it was a city-wide audit. there was testing of payroll records. i defer the response to the auditors. >> it is the controller of aware of that. the comptroller gave me instructions. >> the assets are as trust. >> it has nothing to do with money that flows into the deferred comp program as jim pointed out they look at payroll to confirm numbers that are out of people's paychecks and where they go and where they land. but if that is not part of this,

i understand that step was done by the comptroller? >> i think i can confirm. >> the audit for the city you mean or the selection, not the audit? >> from an active member's paycheque, it was at their request. the program which they do. >> the question is can you verify that? >> the city's overall audit we look at the payroll process including the deductions that would go through. that is not the objective of the city's audit. they may have selected samples. that would not be objective.

>> objective... >> there is no separate audit. >> a similar question but different. we have authority to create secular trust. any employees who have compensation greater than what the federal government allows and sets up -- we do not control that money. the question is, is that -- people come ask us questions, i believe it is within the scope of the city's audit because it is money that you point out that is in direct control by the employer. in this city. it is does not have to be cleared out if the pension is

paid out of the trust. >> it is not to my knowledge. it is above, that is audited. >> there was a third part. this is what i am trying to explain to people. the money is checked and verified and it is there. it is the uniqueness of the deferred comp in the trust. the charter, we promise people money, it is going to them. it is how and where we account for it.

we have auditors to prove it is done correctly. the benefit plans. we felt it was a really bad name. we called it a replacement benefit plan. which is the same thing under the same code. thank you. >> are there other questions? >> you have a piece of the bond rating. >> we did, yes. i think everyone deserves to know what is available. >> right. with that, almost all california city pension reform. and when the state bill was before the state and they wanted to include it, we actually said our plan provided for employees.

they backed away. the growing plan is a positive thing. always. >> we have a full section, generally. we have our piece. it is 15-20 minutes. they have the whole agenda including health care, all of that. no, i think they are very impressed by how conservatively we are managing this and they feel that, you know, we have been sort of behind everyone else in proving benefits and ahead of everyone else in trying to make new employees benefits

affordable. >> they replaced the plan on the line item. it has to be. it is money that i believe the city collects from the department. so if a firefighter, a retired fire chief who is getting the excess benefit, they have to present money every month to pay. i believe it has to be on the city's. the preferred comp would not be on. the same process is involved. money deducted for a replacement benefit plan. it is money that the fire department puts into the comp so we can cash the cheque or the person can cash the cheque.

the member is retired. there is no money coming out and not funded by the active members because the amount is paid is what is in excess of what we can pay. it is not the same process. in case members are wondering where is the money. >> i am assuming that is what the auditor would do is find if there is an irregularity of money being deferred where the paycheque is not arriving and where it should be deposited. that would be reportable. what i am hearing is they found irregularities. i think in an audit if you found something, you would bring it forward. >> do you want me to comment on

that? it is something that is systemic that affects more than one area, the finding is correct in that comment. comments to the board. seeing none, i believe we can go to public comment. we close public comment. >> sorry, i looked forward to 15. >> hopefully we have a motion. i am looking at 14, discussion only. what should i look at?

>> on the calendar. >> is that an issue in terms of -- >> we can take the motion, right. it is calendared. >> that's okay. they said that there -- it is an action item. it was improperly -- >> on the agenda it is an action item. thank you. is there any discussion? being none. thank you very much for the report. next item, please.

>> the department budget. >> i don't know how much detail you want. we have been asked by the mayor's office not to submit new request for new positions. however, we are -- we have two positions related to the board's decision and direction to staff to begin a targeted -- for fossil fuels. we are looking for a director left position in the investment team. and an analyst, a security analyst to support that effort. we also are proposing substitutions of existing positions that we need to align more closely with what you plan to do. if you read through the budget, we are starting to focus more on separating member services as a strategic emphasis and so we are

proposing a substitution of the retirement services of supervisors to be member services manager, we have accounting positions which are positions we would like to upgrade to the principal administrative analyst and for reaction -- to the past two years, we have a vacant position that we would like to convert into a public relations specialist. or officer as part of the budget, it would be an upgrade in salary. we asking through the budget process to be approved, it will not be an additional position. it will be a substitution. if that, we hope you would approve the budget. we have two significant one year, one time only pieces of

the budget. we are going out for an rmp, we have budgeted an additional $350,000 for legal counsel. to help us negotiate the contract if we go into a contract with a new third party. or to renegotiate our contract. and the effective one is $75,000 to pay for the audit work. approve for it. those are one time -- what we do on a 5-year cycle. they are new. >> the deferred comp plan is the

expected revenue that we collect be enough to cover the budget for the next year? >> it will. we have the money for this year and going into -- depending on what we end up doing, that we have sufficient money to support the full budget for the coming year. for 18, 19. thank you. i have to make sure we look at this. >> question, i still have a question. the positions, are they promotions? >> which ones. >> to the public relations officers. account 4 position.

analyst 2. they are title change designations. >> these are -- the clerk position is a vacant position. so we want to completely reclassify as a public relations officer. the salary bump is 5,000 to 6,000 a year. >> this is in addition to the clerk's salary? >> right. we have a 1404 position vacant. >> you will fill. you want to fill. change from clerk to public relations. and the clerk's salary is... >> $46,000 plus the -- i think there is a -- i can tell you the salary for that position. >> let me change it. the clerk salary is explicit in the budget. what you are asking for is an additional $5,000 on top of

that. okay. that is my question. because, i am looking at the public relations officer. $46,000. i can't imagine anyone -- >> differential. >> that is my question. that is what i was looking for. is that differential, are you trying to close the gap the member service manager, benefit supervisor to member service manager is that the case there? >> yes. >> and accounting for the analyst. >> the positions are not vacant positions. it would be promotions. >> okay. >> we historically -- the accounting positions in the city are controlled from the comptroller's office and we had a very difficult time finding candidates to fill these positions. that is not what the city program requires.

we believe changing that will allow us to advertize and hire them on our own so we can ask and stress that we are looking for people who have accounting experience. it took us a long time to replace those who had investment experience. because the city typically, you don't get that experience in another department. >> okay. two questions about the budget. travel. i notice that you have increased the travel budget. but you have not -- the allotted travel expenses of last year. there is a significant increase, 20% increase if i am not mistaken. >> the increase is the number of

staff that were -- that we have currently three vacant positions. we are asking for two more. we believe when we are up to full staffing, we have also some employees who cannot travel because they are pregnant. so we feel like we want to budget for an entire full staff. this is money that never leaves the trust. >> you want the allocation. okay. legal attorneys and outside counsel, we spent 1.5 times the billable hours of the city attorney. this is for outside counsel. we are asking for outside counsel. i am wondering...

>> our outside counsel are the folks who negotiate all of our investment management agreements. they also for example deferred costs, they assist us. they are experts. they have the expertise in negotiating third party administration agreements for the comp program. we currently have a work order with the city attorney, a total of 5 city attorneys which all the positions are filled. one reports to the board and one does just retirement services. and we have three folks who are dedicated to the investment team. and we are keeping very busy and negotiating mbas and the investment agreement. and we have another person who is in charge of disabilities.

and then what the city attorney does is recommend a list of outside legal counsel. that specifically have expertise in negotiating investments on the private market side and investment agreements. when we hire someone, we generally pay more hourly than the city attorney. >> thank you. >> any questions for the board? >> i have a question. we talked about allocating.

>> under the investment. >> the mayor's program. >> it should be under temporary salary. 33. >> the investment. $125,000. >> the 35 where you have for staff -- you are speaking of the new staff coming in as well?

>> yes. >> the proposed budget for 2019, 2020 and to reduce to [indiscernible] it doesn't matter to me -- >> we have the responsible investments and we added $60,000 i am not sure why. >> it is a very specific -- >> i asked. the total... >> i will double-check that. it is a very specific typo. it may be a typo. i am looking down the line with the other numbers. they have changed. i believe it is a typo. >> okay.

>> just for your information, all of this money is -- in one account. if the board members suddenly decided they wanted to spend 100,000 out of the account, you wouldn't be restricted to the 60,000 in the budget from an accounting perspective. so -- >> i can see it. >> it is 130,000 available for board and staff travel. >> okay. >> public comment? regarding budget? >> if you want to hire more staff, he will need more office

space. [indiscernible] a much better investment. 50% of the market value today. please [indiscernible] we have questions. we never get answers. [indiscernible] >> thank you. are there other members of the public that would like to address this? >> we will close public comment. this is an action item. is there a motion on the floor? >> we are a couple of seconds. can we take the item without objection? no objection. i pass it.

>> number 16. >> submitted. i would remind everybody, the deadline is past approaching. april 2nden. -- 2nd. >> why don't we open it up for public comment. seeing none. we will close public comment. from the board questions? >> they might be interested in responding. there are two rps outstanding. >> thank you. a good reminder.

anything else from the board? okay. thank you very much. the next item. >> retirement board. >> we will open it up for public comment with no questions. i just wanted to bring up that maybe some of you know that -- achieved her 100th birthday on january 6th. she died on february 5th. and she was the president and she was aunt shirley to the

justice of the supreme court. and justice charles of the federal circuit. she was a member of our system for many, many years. we want to acknowledge her passing. thank you. >> thank you. seeing no members of the public, we will close public comment. we have one more item. a special item. retirement board member report. >> do we have to call public comment where there is nothing to discuss? i would like to address the commission. we will close public comment. and we will call -- >> the motion to adjourn the meeting. >> thank you very much. >> we adjourn.

you. >> when i first moved here people come to san francisco to be the person you want to be can be anyone you want. >> the community is so rich and diverse that i'm learning every single day san francisco is an amazing photoy town historically been

base on evolution and that applies to every single professional field including philanthropic arts today what i do is photo based art manifests traditional forest and some colonel lodge and other frames of digital forest is a meeting that has been changing like super rapid and the quality is not extended by the medium if you took forest in school or you get a job in a newspaper they'll give give you a list of how to create a philanthropic story my goal to break down that model and from a to b that is unique and allows the ability to incorporate different types of i believey about propels someone through the rise and a fall of their own experiences one of the main things i'm trying to contribute it

unconditional narrative form the narrative art of photograph the in between of photos how does a group of photos come together as how to use the space between photos to alight emotional responses from the audience and bring innovation and create bodies of work that narratively function the way that photos do san francisco as the commission came out and you visited me and one of their prerestricts was to find an art with enough work to fill a large says that a quad down the hallway downstairs and we hung that quad to feel like a train station that constant sensation from all different directions

some of the major characteristic of the landscape festivities the blur of the train their 70 miles per hour and they're not perfect as opposed to to what landscape will look like it creates a dichotomy for people insides the train not just the story of the subject it is not just the visual design the composition juxtapositioning, etc. not just all autobiography boo-hoo it creates pictures with meaning within them and then some of the portraits feel awkward some of them feel welcoming and the person that mime making the picture is really comfortable and other ones feel awkward and weigh i

didn't and tense that sensation is counter to what we feel like makes a successful portrait that sensation makes that work it is hard to be an artist in a city is 100 percent focused an business the cost of living is expensive and to value your success not scribble on financial return creates a conflict between the paramount egos in san francisco today. >> you see a lot of artists leaving for that reason because you need space to make work my ultimate goal to make work that firms people firms this gift

and just the experience of life and of their worst and of the amazement the wonderment of everything around us >> all right. well, first of all, good afternoon everybody, and in case everybody is wondering, today is not only valentine's day, but ash wednesday, hence the marks on my for head. [ inaudible ] in sro here in san francisco are available for every single resident. i am incredibly pround to be

standing can supervisor ronen and supervisor sheehy. it is incredibly important for so many of our constituencies here in san francisco, both in terms of gender, our transgender community, it affects so many people here in san francisco. i think as we continue to see push back from our federal administration in washington d.c., just this week, our department of education announced they're no longer going to be investigating transgender student bathroom complaints, which is a step absolutely in the wrong direction, but in san francisco, we are different. we are not going to allow hatred todom namt, we will continue to standup for our communities here in san francisco.

we will be a beacon of hope. i do want to thanks tha severa individuals for being here today, as i mechanicsed, these issues take a lot of leadership outside of city hall, and this one was led by two incredibly courageous supervisors, and so i want to introduce the first one, supervisor hillary ronen. >> thank you so much for being here. i'm very, very honored and excited to be here. i also want to extend a special thank you to jordan davis who brought this legislation to our office and said, when you were supervisor campos's chief of staff, you forgot sro hotels to include that specifically in

this lemggislation, so it was pleasure to correct that mistake, which we would have put in the original legislation but accidently left it out. so thank you, jordan. i just want to say what we've learned about this legislation about making bathrooms all gender bathroom is when the traps gender stands up and fights for itself, for recognition, for dignity and safety, it ends up benefiting everybody. i don't know about you, but every time i'm out in public, and there's an all gender bathroom, that benefits me as a woman, it helps disabled individuals who might have an opposite gender caretaker. it just makes our society better, safer, and more welcoming to all of us. so i just think we should look to the transgender community

fore guidance on all policies that we work on in san francisco, because it always ends up benefiting not just the community but all of us. so my deep, deep thanks to everyone that's here today, to claire, to the mayor who made an unprecedented move of joining us onto the legislation before he even signed it because that's how much he supports this community. and to the only out member of the queer community on the board of supervisors, jeff sheehy, who always is the first to standup for and advocate for his community. thank you. [applause] >> so first, i just really want to thank jordan davis. i've been in your chair. that's how i started. i hope i'm still considered an activist, but when someone can come to city hall this change, that's brilliant.

thank you for your leadership. i also want to thank mayor farrell for his supporting this and signing this and leadership along the way. i think this is really very important that sro's are brought into the mix. you know, this is where many people live without a lot of resources, who are marginalized, and making sure that the dignity of our trans and gender nonconforming community is recognized, respected dignity of this community is recognized on all level in our society is absolutely critical. i'm very proud to sponsor this, and i just want to make one other point, since mayor farrell brought up what's going on in washington. we need to, every time we come together, with one of the communities that have been particularly targeted by this administration, they have sought to target the most

vulnerable communities in our mix: immigrants, muslims, and the trans community because they think they can get away with it. so even though every time we come together, even though we're making headway and we're leading in san francisco, we have to remember that around the country, people's rights are being taken away, and in this city, immigrants' rights are being threatened every day. we have to align ourselves with other communities in solidarity, that are particularly targeted in these times. so again, thank you to jordan, supervisor ronen, to mayor farrell. this is great work today. [applause]. >> sorry. claire. i was just supposed to introduce claire who's so great, really doing a tremendous job in filling the

shoes and taking on off tereaf teresa sparks, so i'd like to introduce claire farley, who's senior assistant to the mayor. >> good afternoon, everyone. i'm so happy to be here with all of you today in this historic moment, and this would not be possible without you, mayor farrell, for your continued support of making sure that our city is committed to lgbt folks. also, thank you to supervisor ronen for your incredible leadership on this, as well as your office, and specifically, also to supervisor sheehy, and all the cosponsors on this important legislation. i also want to take a moment to thank joerd on and the -- jordan and all the members on the sro task force. this victory really does belong

to all of you, so thank you. [applause]. >> as trans and gender nonconforming people, we are all to familiar with the stress, the violence that comes with trying to use the bathroom that match our gender identity and expression. as our rights continue to be attack in the country and under the federal administration, it is important now more than ever that san francisco continues to be a leader in the movement towards fair and quality rights for all. no one should have to worry about facing the stress of going to the bathroom in the place that they call home, so all gender sro ordinaryians will extend our existing protections and will ensure that our rights are extended to the full community. furthermore, it will increase access for people with disabilities, residents who

have caretakers. this resolution is important to make san francisco better. of course we know there's more time to be done, and together we will continue to advance the initiatives, the policies and programs that support a thriving trans and gnc community here in san francisco. we will work to implement policies like this, future policies and programs that help sustain the livelihoods of our communities. let's make sure that san francisco continues to be the beacon of hope and change that the rest of the country desperately needs right now. depend, thank y again, thank you so much for being here today and for this amazing step forward. i hope you will join us in the work ahead. thank you. [applause]. >> all right. we're going to get to the signing here.

all right. here we go. [applause].

good morning. good morning. thank you all so much for