controlling the process related to an r.f.p. 'cause those rults are set. so if we -- rules are set. so if we determined we were not satisfied with the responses we got from an r.f.p., we could have cancelled that r.f.p. and gone an r.f.i. but once we undertake an r.f.p., we don't have a lot ofof leeway because we need to ensure that it's transparent all the way through. >> can we improve the r.f.p. process? >> no. >> well, we have a difference of opinion. i believe we can. we'll come back and talk about this because the need to improve every piece of the portfolio to include the international, the global and the emerging, that need does not go away. the opportunity is not going to go away. can we do better? >> well, under perfect circumstances if we would have been fully staffed, we could have brought the information

earlier, if that's what you mean by improving the process, but once you issue an r.f.p., you know, you have to follow the very specific rules so set out by the city. [inaudible] >> -- joe, and you, jay, are correct. i think there's always room for improving the outcomes in the r.f.p., and that has to do with the predevelopment of what that r.f.p. looks like, different metrics and so forth of different people that are going to be bidding. but like jay is saying, once you get into that, then you have certain restrictions around bidding and certain things that you cannot do based on our city's laws. so yes, there are ways to improve the potential outcome, but it's also true once you start there's limitations. >> you heard me say the phrase

earlier about being the first call. we looked for people who will be the first call. that's what we want our reputation to be. we want people to bid for our work because they've got to believe we will treat them fairly, thoroughly, intelligently. that's done before the r.f.p. goes out. >> we're getting a little late in the day. i don't want to -- i think this is a very important conversation. i've been asking for a while for a review of how we find managers. i'm going with commissioner driscoll's point, in this process, if we only found one manager -- >> and i'd point out we have issued another r.f.p. since we issued this one. >> it's not an indictment on anyone. i think it's a really interesting process. we went down this process and got only one.

i'm not as convinced they're as good of a process as some other people think they are. i would prefer to see us start over and go and try and find the other managers represented here who might look better and add other attributes. that being said, you guys have done a ton of work on this. you've done a lot of good work. i think it's really interesting stuff. really helpful. thank you for bringing it back. i'm happy to call the vote. i'm personally probably not going to vote for this today, but i know there are commissioners who probably will, so i'm asking the board, where do you want to go from here -- or staff. >> i move to adopt staff's recommendation. >> i assume that they've taken note of all my comments the last hour. >> there's a motion on the floor. does anyone want to second? >> there's a motion, there's a second from commissioner chu. any discussion on this? >> i have -- i have discussion. is there a way after this, if

we close vote for this, that they can reach out to both individuals -- >> certainly. >> yeah. >> is that something you'd want to do? >> we have -- and to joe's point, we have work to do. >> okay. >> this is one piece, but we have work to do. >> and another question related to our capacity. we have certain allocations that we are targeting for emerging markets and so on. we still have room in capacity should we find excellent, wonderful great managers to be able to do so. >> yeah. >> i mean, this is public session, but i will say -- i believe we can say, we're very sensitive when we have an r.f.p. with folks who have followed the rules andity submitted responses -- rules and submitted responses. we're concerned about the general -- we wanted to make it clear this they're a completely separate process. we don't want folks to think well, we went through and bid but they reached out in a

separate process and hired someone else while the r.f.p. is in process. we're not frozen out, but we don't want our peace to last a year because it -- piece to last a year because it restricts the public disclosure part from soliciting folks who maybe did not submit an r.f.p. because maybe they didn't meet the minimum qualifications at the deadline, those types of things. so certainly, we appreciate if this passes, and we will continue to reach out. outreach. >> call for the vote. >> i do want to say something that, again, just want to emphasize, looking to you guys to bring forward to us a different way to go out and find the very best managers. i think this process clearly highlights that maybe not

everyone that the r.f.p. process is soliciting responded. so maybe the rules are handicapping us in a way, so let's think about is there a more intelligent and thoughtful and better way to go about sourcing managers is exactly i think what commissioner driscoll said. i'll call for public comment. if there's any members of the public that would like to address the commission. seeing none, i'll close public comment. roll call vote, please. [roll call] >> clerk: motion passes. >> president stansbury: motion passes. >> can i ask for the privilege -- i have to leave. my phone is going off the hook.

a new arrival is coming, and i have to go to sacramento to meet him. but i'd like to ask one question from the executive director's report because the city attorney is here. >> president stansbury: why don't we just call that item, then. >> yeah. >> president stansbury: can we call item 15 and 16 together. >> and the question i have is regarding the anticorruption and accountability ordinance, and i just want to know -- it's silent as to the elected commissioners. can you give me any flavor as to how it applies to the elected commissioners? >> i think from the e-mail that's attached, that's what you're referring to? >> yes. >> they are not -- they don't -- they are not an

appointing officer, so the things that apply to commissioners or an appointing officer would not apply to the elected commissioners, but everything else would apply to you in the same way. >> okay. so that's -- i just wanted to make sure that we got that on the record, and it was clear. >> okay. >> okay. thank you very much. then i'll excuse myself. >> president stansbury: okay. jay, the floor is yours. >> little alexander estimated weight of around eight pounds is due to arrive in the next four hours. [inaudible] >> i will combine the june and the july report. we basically -- in both of those months -- have presented the proxy voting results

related to this board's policy that we will always support and vote in favor of the incr. i believe the proxy season has significantly ended at the end of june but we'll issue one more report in july by hopefully will be the final. initially, there were over 200 that were drk-resolutions that were submitted by incr members. a lot of them have been withdrawn. i believe that i was reading this morning that they believe it's been a very successful season based on fossil fuels and climate risk issues by the fact that some of these resolutions were withdrawn, which they wanted to point out means that shareholders are talking to owners mtded fagsd thfagsd

-- the fact that they can get a resolution withdrawn is the fact that they're talking to shareholders. there have been a lot ofthe fa to shareholders. there have been a lot resoluti fact that they're talking to shareholders. there have been a lot withdraw they're talking to shareholders. there have been a lot of withdrawals which does indicate that there is discussion going on. i submitted last month a 2018 investors statement to global climate change. that was a g7 letter just as an example of the 10,000 things to come across andrew's e-mail probably every day and opportunities that we have, and he's ferreting out what makes sense in terms of what the board has taken action on. certainly, we have some issues that under the broader e.s.g. we've not actually addressed related to executive pay per se, diversity on boards, so as we develop a more holist

holistic e.s.g. policy, we will be able to join for groups that are working, public institutional investors in trying to influence behavior related to these other issues, and we look forward to that because commissioner driscoll is correct. the blueprint and the steps and the deliverables that were presented to the investment committee all are very important and they're going to take a lot of work. bill will indicate that we're getting ready to recruit for a security analyst to support andrew in his work which we think is very critical to make sure that a lot of the reporting requirements that we have get completed, and that he has that support. the other thing is obviously, we have a new retirement board member. i was talking to claire on the

way in. she asked if he was here, and i said no, he had to go to the br board of supervisors. i will do my best to ensure we don't call a special meeting on a tuesday afternoon. we'll be reaching out to him and his staff to try and provide orientation. we have been working with commissioner chu. we've had at least two sessions, and she's willing to sit with us for, like, three hours, so that's very dedicated and has a lot of questions, and so we look forward to going through that same process with commissioner safai. and with that, i will open it up for any questions. >> president stansbury: questions from the board? seeing none, we'll open it up to public comment. are there any members of the public that would like to address the commission? seeing none, we'll close public comment. thank you, mr. huish. why don't we go back to --

let's postpone 9. thank you for bringing it forth. any objection to that from staff? >> no. >> president stansbury: 9? the analysis of protection strategies, we will postpone that. that's going to require a little bit of time. >> president stansbury: i've reserved the option to do it later. can we call 10 and 11 together? >> sure. for item number 10, real quick, we had a very good month back in may. seems like a long time ago. our investments were up over 1.3% for the month. we have a number of disclosures that i still think we need to

go through, right? >> yes. >> so marshal ridge is a distressed strategy that the board approved in the absence of a portfolio. we made a $25 million investment. we expect to get more here in the coming months. that will be called -- called down periodically over time. that was actually the only item closed during the month. there is some valuation data earlier in the memo, just some charts showing the valuations are above average, but they're not ridiculously high like they have been at other points in time, and that there are some markets that are really quite reasonably priced. and also, on page 3, i'll note that this is just a follow up to any p.c.'s quarterly report back at the end of the first quarter, and that is that our performance has been very, very good across all time periods. and it's without taking more risk. you'll see at the bottom of page 3 is that our volatility

is slightly lower than the peers, and in public equity, the reason for the table on the upper page 4 is to show that over the last few years we've seen a pretty comfortable improvement in our excess returns in public equity. with that, i can close that and move onto item number 11, since they were called together, i believe. so fiscal year end, we ended up at about 11.34%. i do expect that number to move around as private market investments, their valuations are closed in the next couple of months. in particular -- and it wasn't just one things, we had a number of good returns. u.s. stocks and private equity were up more in 17. real assets were up nearly 15. special congratulations to art and also to ed and chris and to cambridge for getting an

increase in our exposure to real asset to the time when that wasn't really popular a year or two ago. oil prices had fallen down to about $30 a barrel or a little bit less, and they've rallied to more than double that, so we've seen a reversion to the mean that, and we did that by increasing our allocation at the same time. global equity and private debt were also up in the low teens. and every asset class were in the positives. fix income just barely above break even, which is something that we've been expecting. in the month of june, we were done 27 basis points. this was particularly in international stocks, and in particular in china because of the -- the trade tensions going

on. we did have a number of meetings. i was recently in beijing and pouring through the difference of the business performance of the underlying companies that our managers are invested in versus what's taking place in terms of stock returns, and we're really, really pleased with the business performance of our under lying companies, and the impact, the trade tensions in terms of our companies, our managers are estimating at about 2%. it's really quite deminimus. in addition, one manager is just chomping at the bit because they're seeing p.e.'s of five and 6 where they're expecting earnings and growth of 15 to 20%, so they're really quite encouraged. the year to date, we're up 3.2% on a calendared year to date. economic conditions -- i do want to point out one or two things here.

overall, economic conditions continue to be really good. the one highlight i would want to point out is that earnings growth has been really strong lately, up about 26% in calendar year 17, up about 20% here in the first half of this year. it's going to be really hard for the markets to duplicate that. you usually don't get say even three years of 20% earning growth, and that's going to make next year's comparisons harder, okay? so just to keep an eye on in the future is that i would expect that the -- i'm not expecting any really serious trouble, but it's just going to make the -- the comparisons going forward more difficult. but -- but the good news is if you see the chart at the bottom of page 2, is that stock prices and -- and earnings growth have mirrored each other. as a matter of fact, earnings growth has been a little bit

higher. that is a really good sign that the stock market appreciation is based on fundamentals, and it's based on the present value -- on cash flow, and it's not based on speculation, it's not based on a repricing of the market going higher. a couple of closures to note. the biotech value fund, we -- the board approved $200 million. we have intestvested 60,000,04 million in various vehicles. we do expects the remaining 100 to be called in the next few months. also, the board approved a real estate opportunity strategy for

fortress of 75 million. we've invested 100 million so far. we believe further will be called in the next number of months. long hill, which have a venture investment strategy in china, we asked the board for 30 million. the board approved, and we did get all 30 million on that. there's a lot of ways to make money in health care in china from biotech to medical equipment to health insurance. tower brook is a strategy that we asked the board -- it's a large cap buyout strategy. the board approved 75 million. we did get 50 million, and beacon light, which is an equity long-short strategy, we asked the board to approve 220 million. the board -- 225 million. the board did so. we expect the remainor of that will be call -- remainder of that will be called, as well.

you see the portfolio is up 6.5% on an annualized basis and that's at a period of time when the bond market is actually slightly down. i am very pleased to welcome ron manning, and ron, if you could please stand and perhaps come to the podium and introduce yourself. ron has -- ron played football at rice university, so he's going to make me a really good running back. he played offensive line, but he also previously served at the dallas-fort worth retirement system, and he's got a distinguished education, as well. >> i'll just tell you a little bit about myself. i'm raised in houston, texas. i went to rice university in houston, so -- and got my graduate degree at texas tech. my wife brought me out here. she's from the south bay area. she grew up down there. came out here, visiting her

family a couple times, and really fell in love with the area. she found a good job. i followed her out here and found a great job myself, so i'm really happy here. city of san francisco's been really exciting. looking forward to -- obviously, the summer's been great. the nice winter weather you have here in the summer. it's good. you all think it's hot. i have to stop saying y'all. you think it's really hot, but it's not. let's see...working here, i'll be working with eunice and the private credit strategy, but i'll also be working with victoria owens on the public strategy as we make the transition back and forth there. so with my previous job with fort worth, i was a generalist. i worked with the portfolio half, and then i would have hedge funds, private equity, funding only strategies. here, i'll just be concentrating in one area,

which is private for me. >> and did you close on a house in the last couple days? >> i did. >> wow. east bay. >> yeah. planning on jogging out here. >> welcome. >> thank you, ron. >> welcome. >> and we do have our manager director of asset allocation, risk management and innovative solutions. an offer's been extended and accepted, and that person will start on august 27, and i look forward to introducing you to her at that time. that closes the c.i. reports. >> great. thank you. any questions? commissioner driscoll? >> i'll skip my questions, but on this monthly report, on your page 5, the sf sfers monthly net aet ises, some month -- assets, some months, we started putting the liability bar on there. i highly recommend we keep that there, but only looking at the

assets and not looking on the right hand balance sheet, people are going to focus on that. it's much more useful information in terms of what we are trying to do here, so if you could put that back in here -- i see this one's been amended by staff. i would highly recommend, even if it's a once a year number, you can do that. >> happy to do that. i'm glad you mentioned that, commissioner. it is a highly relevant number. we are at june 30, and since that number's going to be hard coded in november , we can include it. >> yeah, and you can footnote it to say it's only measured once a year. >> okay. we'll move to public comment. any member of the public wish to address the commission? seeing none, we'll close public comment. thank you, mr. coaker. regarding items 12 and 13, i don't see miss chuy.

i think we can take the items as submitted unless there's any highlights you want to bring up to the board. >> i just want to bring up two matters. in the third quarter, interest rate was set at 2.26, so we're moving in the right direction, and on july 25, there will be a deferred compensation meeting, and that, as submitted. >> thank you for the reminder. we'll cope it up for public comment. are there any members of the public that would like to address the commission on this issue? seeing none, we'll close public comment. any comments from the board? >> the eligible participates now is north of 36,000. that's a big number. it shows how much the workforce has grown. it affects liabilities. it's at least 8,000 more than eight years ago. many growth in jobs. again, that means more work for staff, rolling people, but again, it affects the participation efforts that deferred comp is trying to work on. >> thank you so much for the

report. item 14, we are going to postpone to a future meeting. 16, so i believe there's only -- do i have this correct? there is -- [inaudible] >> what's that? [inaudible] >> yeah, why don't we call items 18 and 19 together as submitted. any public comment on items 18 and 19? seeing none, we'll close public comment. any comments from the board? okay. that leaves one item, item 20, retirement of a board member, good of the order. >> order to request information either from staff or from our city attorney because i think one of the things -- or one of

the issues that have come up in different meetings over time is a confusion for me around our use of our fee r 5 so i would be interested in hearing from a city attorney if there's any restrictions or requirements from us to be engaging in r.f.p.'s or r.f.i.'s in our search for a manager. >> i might add onto that, a repeat of something i've said before, if we could please look at how we are going about finding managers, and whether or not there's any areas for improvement, and i think that goes hand in hand with commissioner chu's request. okay. public comment? are there members of the public that would like to address the commission? seeing none, we'll close public comment. anything else from the board? great. thank you, everyone.

it's been a very long day. meeting adjourned. >> very long day.

♪ >> about two years ago now i had my first child. and i thought when i come back, you know, i'm going to get back in the swing of things and i'll find a spot. and it wasn't really that way when i got back to work. that's what really got me to think about the challenges that new mothers face when they come back to work.

♪ >> when it comes to innovative ideas and policies, san francisco is known to pave the way, fighting for social justice or advocating for the environment, our city serves as the example and leader many times over. and this year, it leads the nation again, but for a new reason. being the most supportive city of nursing mothers in the work place. >> i was inspired to work on legislation to help moms return to work, one of my legislative aids had a baby while working in the office and when she returned we had luckily just converted a bathroom at city hall into a lactation room. she was pumping a couple times a day and had it not been for the room around the hallway, i don't know if she could have continued to provide breast milk for her

baby. not all returning mothers have the same access, even though there's existing state laws on the issues. >> these moms usually work in low paying jobs and returning to work sooner and they don't feel well-supported at work. >> we started out by having legislation to mandate that all city offices and departments have accommodations for mothers to return to work and lactate. but this year we passed legislation for private companies to have lactation policies for all new moms returning to work. >> with the newcome -- accommodations, moms should have those to return back to work. >> what are legislation? >> we wanted to make it applicable to all, we created a set of standards that can be achievable by everyone. >> do you have a few minutes

today to give us a quick tour. >> i would love to. let's go. >> this is such an inviting space. what makes this a lactation room? >> as legislation requires it has the minimum standards, a seat, a surface to place your breast on, a clean space that doesn't have toxic chemicals or storage or anything like that. and we have electricity, we have plenty of outlets for pumps, for fridge. the things that make it a little extra, the fridge is in the room. and the sink is in the room. our legislation does require a fridge and sink nearby but it's all right in here. you can wash your pump and put your milk away and you don't have to put it in a fridge that you share with co-workers. >> the new standards will be applied to all businesses and places of employment in san francisco. but are they achievable for the smaller employers in the city? >> i think small businesses

rightfully have some concerns about providing lactation accommodations for employees, however we left a lot of leeway in the legislation to account for small businesses that may have small footprints. for example, we don't mandate that you have a lactation room, but rather lactation space. in city hall we have a lactation pod here open to the public. ♪ ♪ >> so the more we can change, especially in government offices, the more we can support women. >> i think for the work place to really offer support and encouragement for pumping and breast feeding mothers is necessary. >> what is most important about the legislation is that number one, we require that an employer have a lactation policy in place

and then have a conversation with a new hire as well as an employee who requests parental leave. otherwise a lot of times moms don't feel comfortable asking their boss for lactation accommodations. really it's hard to go back to the office after you have become a mom, you're leaving your heart outside of your body. when you can provide your child food from your body and know you're connecting with them in that way, i know it means a lot to a mommy motionlely and physically to be able to do that. and businesses and employers can just provide a space. if they don't have a room, they can provide a small space that is private and free from intrusion to help moms pump and that will attract moms to working in san francisco. >> if you want more information visit

sfdph.org/breastfeedingatwork. ♪ ♪

>> i personally love the mega jobs. i think they're a lot of fun. i like being part of a build that is bigger than myself and outlast me and make a mark on a landscape or industry. ♪

we do a lot of the big sexy jobs, the stacked towers, transit center, a lot of the note worthy projects. i'm second generation construction. my dad was in it and for me it just felt right. i was about 16 when i first started drafting home plans for people and working my way through college. in college i became a project engineer on the job, replacing others who were there previously and took over for them. the transit center project is about a million square feet. the entire floor is for commuter buses to come in and drop off, there will be five and a half acre city park accessible to everyone. it has an amputheater and water

marsh that will filter it through to use it for landscaping. bay area council is big here in the area, and they have a gender equity group. i love going to the workshops. it's where i met jessica. >> we hit it off, we were both in the same field and the only two women in the same. >> through that friendship did we discover that our projects are interrelated. >> the projects provide the power from san jose to san francisco and end in the trans bay terminal where amanda was in charge of construction. >> without her project basically i have a fancy bus stop. she has headed up the women's network and i do, too.

we have exchanged a lot of ideas on how to get groups to work together. it's been a good partnership for us. >> women can play leadership role in this field. >> i tell him that the schedule is behind, his work is crappy. he starts dropping f-bombs and i say if you're going to talk to me like that, the meeting is over. so these are the challenges that we face over and over again. the reality, okay, but it is getting better i think. >> it has been great to bond with other women in the field. we lack diversity and so we have to support each other and change the culture a bit so more women see it as a great field that they can succeed in. >> what drew me in, i could use

more of my mind than my body to get the work done. >> it's important for women to network with each other, especially in construction. the percentage of women and men in construction is so different. it's hard to feel a part of something and you feel alone. >> it's fun to play a leadership role in an important project, this is important for the transportation of the entire peninsula. >> to have that person -- of women coming into construction, returning to construction from family leave and creating the network of women that can rely on each other. >> women are the main source of income in your household. show of hands. >> people are very charmed with the idea of the reverse role, that there's a dad at home instead of a mom. you won't have gender equity in the office until it's at home. >> whatever you do, be the best

you can be. don't say i can't do it, you can excel and do whatever you want. just put your mind into it.

>> chair peskin: good morning and welcome to the san francisco county transportation authority meeting for today, tuesday, july 10th. clerk, can you please call the roll? [roll call]