s >> san francisco has been doing a great job flattening the curve and sfds has been a big part of that. the stepsky foundation and

silver giving foundation at 225,000 and somaland foundation 476,000, linkedin, 146,000 and the webb family foundation at 70, golden state warriors at 50 and walter and alysse haas fund and the tipping point community at 25, and the stepski foundation is 20 and i want to thank all corporate and giving foundations and individuals -- this is a response fund -- the ones their gave before throughout the year and this is the ones for the covid-19 response. and toma bravo at 1.1 and

anonymous at $11,000, golden state warriors at 125 and the hellman foundation, 50,000 and palms against poverty is 28 and herbert and gene foundation at 25 and facebook is 20 and cohen elevators is 20 and the wells fargo 20 and google fiberton 10. wellington management 10, the 697 and alaska's airline 5,000 and o'dell family and dennis

wulliver kelly and these are all that have given towards are covid-19 responses going to our meals program, to devices and technology and hot spots and we're thankful for the giving during this really difficult time and we hope that other corporate foundations will step up, as well because this crisis is going to continue. so again, thank you very much. section a, general information, regarding virtual meetings, ada accommodations and translation services and for the translation part, is this the appropriate time for comments? >> yeah, i've included them in dr. matthews remarks moving forward and he'll be making that

announcement and we do have -- >> can we also have at this point, our translators, make the announcement. i'll make it in english but if they could make the announcement of how to go to the rooms right now in spanish and cantanese. >> great.

(speaking foreign language)

>> section b of 2020 and we need a motion and a second. >> so moved. >> and second. >> thank you. any corrections? also, jensen, i have a limited view of people, so if you happen to see people raise their hands, will you let me know? >> yes. >> role call, please. pai

(role call). >> superintendent's report. >> thank you, president sanchez and good afternoon, everyone. as you just heard, i'm going to repeat that announcement in english now and transportation will be provided throughout the day's regular board meetings and at all meetings moving forward. the translation for chinese and spanish will take place in separate google hangouts. for chinese interpretation, please call (484)854-2388 and pin number 721-60-9895 and for

spanish interpretation, call 13193829676 and the pin number is 665-99-6976. we also will have translators on the zoom meeting for public comment as needed. and as a reminder, if you need translation, make this request 72 hours ahead. last week was the national teacher's appreciation week. during these challenging time, teachers have been true heroes for students and families and i can't thank you enough for all that you do. thank you for fostering the 21st century skills essential for success and thank you for being a role model and thank you for caring about the student's academic growth and emotional development and thank you for being a part of this community that is redefining school together in service of all of

our students. we continue to learn as we go and here are a few updates. as student's well-being is our priority, we're providing for the wellness check in addition to each system of communicationg with students and families and supporting needs where possible and connecting with them and connecting them to the resources in the community. we are about to hold our second community partnership's forum to help us organize around the most common areas of need. 15,000 students were mailed kits last week and students should have received those kits by now. 12,400 chrome book and 37 hot spots for wi-fi access have been

distributed to grades 3-12. by the end of the day, 99% of technology requests made by families for technology have been fulfilled. the district will be hosting summer programs this summer but all programs will be virtual. as a result, the department of technology is spending the next few weeks focusing on supporting techniques for the summer. tomorrow may 13th, is the last day to submit a request for a chrome book or hot spot for wi-fi access. and if you know of a student in grades 3-12 who still needs a chrome book or wi-fi access, they can visit our website a to fill out the online request form or call the family resource link at (415)340-1716. we know the office of curriculum and instruction together with the department of technology is

now deploying devices to the paraeducator staff in our district. we will continue to do so through thursday of this week. we will be offering summer programs remotely for summer 2020 and prioritizing our largest summer programs, college and career readiness at extended school year for students with ieps and these programs will begin june 10th and will be offered in a remote learning format. students who are eligible for high school recovery and esy will receive information about the summer program offers. and we are working with community-based organizations and after-school summer programs to identify other summer programs and opportunities for students. and we'll share more information on summer learning options as they become available. as we continue to make our way through the covid-19 pandemic,

we know that reopening schools will be a challenge and will require extraordinary coordination and planning. as a result, we have opened rfq, which is a request for a quote, from outside partners who wish to help facilitate and plan this work. the successful provider will partner with us to facilitate and plan the work for when we finally reopen schools. the rsq can be found on the sf usb website with our covid-19 school closure updates and resource page.

>> i'll call on her and she'll be out in just a moment. >> so she's in the other chatroom. >> i'll switch her out as soon as i get her. >> we're ready for your delegate support. >> got it. >> can everyone see me? >> we can see your screen, but not you.

and now we can. >> the miracle of technology. >> i was panicking for a second. [ laughter ] >> hello, everyone. so student delegate campaign update. we would like to announce that the 2020 student voice survey/student delegate election has been extended to may 20th. our goal is to encourage engagement. the student delegate position gives students a platform for student needs and concerns. it's an amazing opportunity and we encourage every student. we would like to thank all of the candidates and second reading of the resolution. last night at our sra meeting, we had a second meeting and in

resolution works with our allies, the youth commission, to relocate education funds. they voted to have this passed and presented to the board of education and we would like to thank commissioner astro and the cacabinet team for working hard. summer entranceship program. every year the sac partners provide a paid opportunity for high school students. due to the pandemic, this internship will be virtually ruled out for the summer internship program. the goal is to continue to provide the best mentoring experience for our peers.

our next meeting is monday on zoom. this is a public council and anyone is welcomed to attend our meeting. if you would like to attend, make a presentation or would like a copy of our open coming agenda contact the sac supervisor, mr. salvador lopez and thank you. that's all. >> thank you. item 4 is recognition and

resolutions of commendations. >> this evening, we have a video recognition. the st. warriors had a special surprise for teacher appreciation day on may 5th. so we will run the video and afterwards, i'll describe what was happening. [ ♪ ] >> come on in, everybody! (video playing). >> hello, everyone. we're going to start this meeting. you have a special guest here. >> hello, everybody! >> it's good to see you.

>> thank you for everybody that you do and it's special and near and dear. and we know that the youth is our future and on behalf of the warrior's community foundation, we're excited to share the news that san francisco unified school district will be granted $125,000. tomorrow a national teacher's appreciation and we wanted to say thank you for everything that you do and you have been helping out the community and we know this is our future and as long you're taking time out of your day and helping out, we'll still do the same and we can help get through this together.

>> you could hear what was going on, a video zoom call, a staff meeting and warrior's players, damion lee and announced the warrior's community foundation is partnershipped with the hewlett-packard foundation making $125,000 contribution to the san francisco unified school district. so it was a great way for the district to be honored, but most importantly for teachers to know how special they are and we thank the warriors for their partnership, for the hewlett-packard foundation bridging with us and for just recognising the special work that our teachers are doing, especially. it's all of the time, but especially in these times. >> thank you. i got to see it without the

glitch before and it's such a wonderful video, so hopefully we can make it available somewhere. kind of zoom bombing. so i have a feeling that we'll be teaming up with the warriors with some fun in the near future. and item five a recognising all valuable employees, awards are announced tad. today and section c is public comment and so our host, mr. steel, will call on speakers and keep the two-minute time. here is the protocol. please note public comment will hear from the community on what's in the board's jurisdiction and we ask you refrain from using employee and student names and if you have a complaint about a district employee, you may submit it to the employee's supervisor in accordance with district policy. as a reminder, board rules on california law do not allow us to respond to comments or attempt to answer questions

during the public comment time, as much as we would like to. if appropriate, the superintendent will ask the staff follow up with speakers and so we'll go into public comment items that are not on the agenda. >> thank you, president sanchez. please raise your hand if you wish to speak during public comment. >> before you call on people, just as another reminder, because we've been having problems with this, at least at the last meeting, please make your comments germane to the topic at hand and this is all i'ms that are not -- these are regarding items that are not on the agenda today. >> thank you. >> hello, ben? are you there?

>> you have two minutes and you can go ahead. >> i'm the news director at the san francisco unified school district and i wanted to give you a heads up about good news we had. following up on the good news mr. sanchez shared to the district. our radio station has been honored with some really prestigious awards of late and i wanted to call your attention to that. it has to do with the learning-while-black series that lee romney made, about the fight for equity in san francisco schools. supervisor matthews and others might remember an event we held at the african-american community center where we brought together members of the community around this reporting and that series has been awarded best news series in the western region by the radio and television digital news association and it is one of many awards that this series

received. so that is really great kudos to both our educational reporter lee romney and to the district where we have done this work. and also, the pulitzer prizes came out recently, and there was an audio journalism category for the first time ever. several people trained for kaw's training programs were recipients, including lina masitiz and she reported on a return to mexico winning the pugh lipulitzer prize and other finalists for the pulitzer prize with the team from peer hustle. we trained erlon woods and nigel poor to do that work. i wanted to give you a heads-up

about the great training work and the awards that were recently given out at kalw. thank you. now. >> thank you. >> hello, michelle. >> hi, this is michelle parker and i'm the vp legislation for the district pta and i just had a couple of quick things today for you, commissioners. the first one is that i appreciate the updates to the agenda on board docs where it's more streamline.

i wanted to let the public know the district is holding a series of meeting for the rest of the year and call 4-1-1 meetings for teachers across the district to connect and learned and we've had a district budget staff and we've helped to navigate in the community and navigate the pt business during these school district closures and we'll have our state legislators talking tomorrow night. next week superintendent matthews will be coming on and talking about what parents can expect moving forward and then the following week, we'll have board president sanchez and mr. lamb to advocate for more funding for our schools and you can find information at our website which is sfpta.org and that's it. thank you to much.

>> thank you. >> caller, are you there? >> hello, everybody. can you hear me? >> yes, you have two minutes. >> i'm conceri'm kevin robinson. i would like to preface my comment, in response to public comments. the district does not own or have control of the radio station kalw. students can't walk across the stage or field to receive diplomas or share experience with family and friends, it will be great thinking outside of the proverbial box to provide radio time to as many 2020 graduates as possible over the next couple of weeks. they have a license to and content responsibility for.

again, klw 97.1 f.m. to make that happen. beyond that, there should be more youth and education-focused programming and that means hours, not minutes, made by for and about our youth for the social, emotional and educational enrichments. thank you. >> president sanchez, that concludes public comment. >> thank you. thank you to the public for your comments and section d, advisory committee reports and appointments. we have the parent advisory council. so if there is a representative, a representative we will identify you. >> yes, good afternoon, president sanchez and commissioners, superintendent matthews, student delegates, staff and community members.

i'm michelle vegas and i'm coordinator for the parent advisory council. and i'm joined today by a parent member herself. michelle, are you there and can you introduce yourself? >> i am, but whatever just happened to my screen? [ laughter ] >> it took away my notes so hold on one second. i don't know what just came up on the screen. >> it probably took away your split screen. >> thank you. i'm michelle delaneny. i'm the parent of a kindergarten and i'm here for the parent advisory council report for the board of education for may 13th, 2020. the roles of a parent advisory council is to represent parent voice expose perspectives t voices and perspectives. this is our first report in three months to the advisory

group meetings. we would like to take this opportunity to present a slightly different report than usual, highlighting both the challenges and the situation that has been brought to our families, as well as express our ideas during this unprecedented times. covid-19 challenges for students and families. as families across our district, members have spent the past nine weeks trying to support the learning and well-being of their children and this juggling act has not been easy, especially for those whose students would be receiving aadditional support to be successful in their academic and social, emotional learning, including student who's are learning english as an additional language, students already struggling to achieve grade level proficiency, students who lack access to additional resources outside of school, students who rely on the social support of peers and site

staff including teachers, after-school leaders and mental health professionals, students with ieps, especially those who are not able to access services like physical and occupational therapies and parents who may not have the skilled resources to provide the supports themselves in the best of times. let alone 24/7 in this highly stressful time. we recognised that taken families are frontline workers, restaurants and grocery store workers, delivery from transit drivers and so many more putting the safety of themselves and their families secondary to the needs of others in the community. we recognise this is a huge challenge for the district to adapt to a largely unknown scenario and in this time of unknowns. when will school start again and when it does, what will it look like and how can we provide all resources to the students in need, especially into the most vulnerable when we are facing a

budget crisis and likely a recession? coming together to support students and families, during this time of shelter-in-place, we would like to acknowledge many people are coming together in a variety of ways to support the diverse needs of toker to st the students and families. the city will continue to receive much-needed nutritional support and we would like to express or gratitude for the staff who adapts to the free meals for the children of san francisco. we greatly appreciate the efforts in partnership with companies and providers across the city to provide students and now paraprofessional staff with access to much-needed technology including laptops hot spots and internet services and to provide families with young children with learning materials and would like to acknowledge many district and community-based organization staff who continue to work to support our students and family's needs. these are vital resources to help ensure the students to need

to continue to learn during this time. >> thank you, michelle. we are also pleased to see that efforts are made through the community partnership's forum, to the connections between the district, the city, community organizations and service providers and best meet the needs of students and families, not only in this time of crisis but going forward. we applaud the creation of the family resource link available under the family's tab on the sfusd website and by calling (415)341-1716. and we celebrate the work of the study's task force is able to continue during the shutdown, as well. the community town hall meeting held wednesday was well attended and we look forward to the next gathering tomorrow at 4:30 and hope our youth will join us as they were a vital component of the task meeting. update on the local control and

accountable plan and stakeholder engagement. as we presented last wednesday and thursday, the california department of education has made revisions to the process and timeline for this year and the shelter-in-place instituted during the covid-19 crisis is very limited about the stakeholder engagement that is conducted by the task force this spring. we hope to be able to conduct more robust engagement in fall in order to both inform the 2021 school year now due in december of this year and the new three-year l-cap in the spring of 2021. the district advisory groups are making arrangements to meet to review the component of the report due to this california department of ed this june, to gather input from stakeholders to draft recommendations to present to the board of ed. information can be found at

sfusd.edu/budget and sf-l-cap. they are recruiting new members for the new school year. and we include those from different neighbors, types of schools and backgrounds. this represents the arab, southeast asian and philippino communities, as well as those from lgbtq families and those with experience with foster youth, homelessness and secondary incarceration. they will focus outreach to include parents, guardians and caregivers from these communities and on finding ways to include voices in the work we do because we know not everyone can participate on a council. applications to join can be found at packsf.org and available in chinese, spanish and english. applications are accepted on an ongoing basis. for more information or to request an application in a particular language email

pack@sfedu. this is a great way to get a sense of what we do. our next meeting is tomorrow, may 13, and will be conduct askeconducted virtually. all are welcome. this month we'll be discussing impacts of school closures on students and families and we'll be joined by members of the community advisory committee for special education and others. we invite everyone interested to attend an upcoming pack meeting and the meetings are scheduled tomorrow, may 13th and june 10th. if you're interested in attending a virtual meeting or have any questions or comments about this report or the packs in general, contact me michelle@pack@sfd.edu. before we conclude or report, i would just like to make a request that the announcement of the interpretation be given out at the very beginning of the board meetings before any other comments are made and i want to

appreciate the pta's offer to assist, making it a little bit easier for families and others to engage in board meetings. and we are curious as to how families can be involved in helping to plan what school will look like in the fall of 2020 and beyond. thank you. please let us know if you have any questions. >> thank you so much parent advisory council and i don't recall if we open this up for public comment. do we normally? any public comment? >> seeing none, president sanchez. >> thank you so much. >> board members, any comments or questions for the parent advisory council and justin, i

can't see again, everybody. so i'll try. ok, it doesn't look like it. >> i had one question. >> go ahead, sorry. >> so i always appreciate parents, especially parents that are volunteering in this line role anrole.i want to say thankl parents in the pack and i'm grateful for their service and families that are interested in supporting our district to apply for the pack because it's a great way to get to know how decision-making that you are maybe used to doing at school sites, how you can actually support all schools by doing that at a district level. so just appreciate that. additionally, i had a question for you, michelle. i know that our district is engaging in family wellness check-ins and i wanted to know how the pack may or may not have been engaged with in order to do this work that we're

undertaking. >> so i presume you're talking to this michelle, the coordinatorrer michelle. >> yes. >> i can speak to the pack itself. we're not involved in the wellness checks, but i have been a part of a lot of meetings that bring together the head of the advisories and district staff and community organizations to try figure out how we make sure that all of the bases are covered and all families are reached. thank you. >> did you want to respond? >> as far as with our school, our principal is doing a great job of checking in with the families and really, really proud. i misspoke over there.

>> commissioner. >> thank you so much to the pack. i know so much a challenging time and to meet, but it's so much to express our deep gratitude to the advisory councils. i do want to spotlight for superintendent and staff how important it is to engage our parent advisory committees through this fall planning process and again, i think i appreciate that being lifted up and just wanted to echo the importance of engaging our parents, particularly before finalizing something and rolling it out. so thank you. >> thank you. i want to thank you, as well. i appreciate your work executivi know it's volunteer work. it's an added -- everything is added to with covid-19. so i know it's much harder right now to meet and deliberate. >> go ahead. >> hi, sorry.

i juswe did meet with all of the coordinatorrer from the packs and michelle was a part of that meeting in designing the family wellness check-in. they gave a lot of input on the script and the process and they were involved in that process. >> thank you. and, also, going forward, as we want a task force, for lack of a better term, parent groups will be involved in that process, as well as labor and multitudes of others. we're not doing this on our own. >> thank you, president sanchez. >> thank you. >> section d is consent calendar, motion and second for the consent calendar, please. >> so moved. >> second. >> in concert. so do we have any public

comments on the consent calendar? >> seeing none, president sanchez. >> ok, any items corrected or withdrawn by the superintendent? >> no items. >> any items removed for first reading by a board member?and any items severed for discussion and vote tonight? seeing none, we need a role call, thank you. (role call).

>> we have six ayes, thank you. >> discussion and vote on severed for consideration and there were none today. section g, proposals for action and if i hear no objection from the board, we will take action on the next policy items in one vote. and so there's a number and they are board policies 5116.1, safety policy and number 500, accountability, number 4003, lactation accommodation, 5022, student and family privacy rights, 5131, student conduct and number 6143, courses of study and number 6178, career technical education and number 5117, interdistrict attendance and number 0420.4, charter school's authorization and

0420.42, charter school renewal and number 0420.423, charter school revocation and number 02.1 charter school oversight and number 5142, safety. all policies removed and seconded at a prior meeting. rule's committee was met yesterday and we'll have a report out from commissioner lamb who shares that committee. >> president sanchez, just one note that board policy 511.61, safety transfer process was amended after this agenda was processed at rule's committee and in accordance with the committee's direction, the following sentence is being added. the definition of a description of the investigation process incidents are described in board policies 5131.2 and

administrative legislation 31.2 and i wanted to note that was amended and we will make sure the final copy that is posted carries that amendment. >> thank you so much. commissioner lamb. >> was that to provide an update, president sanchez? >> yes, just generally speaking, that's what when do when we're about to vote. >> yes, thank you. so again, we've reviewed the various policies. i believe it's 15 in total and had line item by policy discussion and all were positive recommendations to the full board from committee. >> ok, thank you. >> sorry. can i ask questions at this time for clarification? >> i don't see why not. again, because it did get raised

in the committee meeting for the policies proposal action 8 for career technical education. i know we're updating it with the policy, but i just wanted to get from staff, an update of how that is reported to the board now that it's moving to an annual base says. >> do you want a response? >> yes, please. >> just for clarification, ratherring our progress against the l-cap goals, i think what you asked for in committee is how are we currently doing it and under the new policy, how do we plan to do it? >> correct, thank you. >> so superintendent matthews, since that doesn't need a

recommendation, do we need to do that? danielle? >> so with your permission, president sanchez, i would like to read one together. so our recommended action tonight is that you adopt the policies listed in items 1-11 as drafted with the exception that i previously noted around inner district safety transfer. >> thank you very much. so we'll call on public speakers, if there are any. >> no. >> so there was one, but i'm unable to figure it out because he has an older version of zoom. so my apologies.

>> if it gets fixed, we'll hear from that person later. >> ok. and so any commissioners, any comments? or questions? seeing none, role call, please. (role call). (. >> six ayes, thank you. >> special order of business 205-1 and memorandum of understanding with united administrators of san francisco regarding sick leave during city

shelter-in-place order and we need a motion and second. >> so moved. >> second. >> thank you. superintendent matthews. >> yes. chief officer of labor relations, carmello will be presenting this item. >> good evening, commissioner, superintendent and all participants. what i would like to do is ask for the board recommended action to at few th ratify the action g sick leave and stipends during the city's shelter-in-place orders. >> is there anything in particular that stands out that you would want to share with us about the mlu? >> nothing in particular, only that it adheres to all of the sick leave language that has

recently been instituted, federal and local levels and, basically, addresses general working conditions, as well. >> thank you. any public comment on this item? >> there's none. >> comments or questions from the board? >> it doesn't look like it. ok. so role call. (role call).

>> that's six ayes. by the way, i just wanted to thank you, carmello, for all of your hard work on these mlus. section j, discussion and vote on consent calendar, items removed at previous meeting and there are none tonight. section k, introduction of proposals and assignment to committee. one public and comment on proposals and two -- a motion to 6.1.4, if needed. now. >> so moved.

>> ok, any public comment on this item. >> there is none. >> any board comment to this first reading. it doesn't look like it. >> i just had a question and it doesn't need to be followed up. i wanted to know how this is different than -- i'm assuming that it's an amendment or revised revision and it would be great to find out what's different. >> mr. sanchez, did you want me to address that now or follow up separately? >> follow up separately, unless other commissioners are interested. >> i would be interested. >> go ahead. >> so this item is actually

memorialized in our current student hanbook. therhandbook.it includes languaa and one thing, we have noticed over the years that many of the items that should be board policies have been codified in the student family handbook as opposed by the board. so we're trying to make sure as we catch these things that we transition them to board po policies and we reiterate them in the student handbook and this is one of those items, but we don't expect this to be a change in practise. again, this is just to memorialize what we're doing and if we want a longer discussion about changing that, we can do that. but we're trying to get the status quo adopted. >> thank you. >> so unless i hear otherwise from legal council, i'm referring the policy to the rule's committee. >> great.

>> great. section l, proposals for immediate action on the rules and there are none tonight. and section m, board member's reports. ok, so the following virtual meeting have taken place since the regular board meeting. and budget and business services, which was wednesday may 6th. and that was at 3:00 p.m. commissioner lamb. >> thank you. so we got a very detailed update from cfo, megan wallace, and with young lee and embarking on our process and knowing, also, with histori historical deficitt we had initial projections, both for this coming year, coupled with some additional covid-19

examples. and we went through and the power point's presentation is available to be able to demonstrate closing out this year, the budget solutions for this fiscal year onward to next year, what that deficit looks like.

so i believe under the leadership of pelosi, there's a great push in the coming weeks to see if we can get what the next package will look like and so again, all hands on deck, both within the district, our city leaders working with the state legislators as well as our federal leaders around what that will look like and the summary there. >> you don't want to press us with the real numbers?

>> the initial protection for next year is upward of 80 million. the staff presented some initial budgeting solutions that worse case scenario with the budget solutions, we're nearing about over $55 million. >> thank you. >> go ahead, superintendent. >> the may revise comes out then and we'll have a much better -- i was going to say a better picture but it won't be a better picture. but at least the governor's first projection after this pandemic, so it will have what he is seeing and what he views as the effects of the pandemic on the economy. so we'll have more after thursday. >> great. thank you.

before we move on, engaging with the public and so that similar -- how critical it is to engage our stakeholders to understanding what this would mean as far as tough decisions ahead and tough conversations. >> thank you, commissioner lamb. and any reports from board delegates to member organizations such as csba and cgcs? all other reports by board members? >> actually, i have one question about the budget. i was looking through the agenda. are we coming back to this?

>> it is not on our agenda. >> so just one thing quickly i wanted to say to the proposed changes i looked through. i just have questions and i would like somebody to follow up with what the cuts to those positions will mean around the affinity work. that's critical to the students that we serve to those programs and i know that is one of the proposed solutions to the cost measure and i'm not trying to get into it now, but i just wanted to make that public and for someone to talk to me about what they see as the impact on those students, when those positions are filled. >> commissioner collins. >> i had a question because i had raised questions and it's related, somewhat, to commissioner cook's question i had raised, some specific questions that i said i wanted and i thought i wanted to get

follow-up on. theres was a whole bunch of positions that were eliminated in the student's family community support and i wanted specifics and i'm just wondering, i think it would be helpful for all of us as a board to get that information, and i was hoping in a report, i would like a dialogue and i am wondering if we could put that up on the cal-meeting agenda because staff is supposed to respond. i think other commissioners will be interested and i think it's more after dialogue than one way. >> ok, so when we do agenda review, we will make sure to fit it in more. >> thank you. >> so the next is calendar committee meetings and i don't know, mr. steel, if -- i know you've been in contact with the different advisory committees. >> yes. so i have been gathering

information on who's ready to report and i'm going to bring that to a general review for us to continue to schedule for the remainder of the year. >> and as far as our committee meeting, does any board member have a date and time for their next committee? >> it is posted in the agenda, mr. sanchez. >> oh, they are, ok. my bad? i'll read further. the upcoming meeting on student assignment which is monday, may 18th, at 5:00 p.m. and then budget and business service's committee meeting is wednesday, june 3rd and this is at 3:00? >> yes. >> great, thank you. and that's all we have right now. >> and i would like to schedule a meeting, but i'll be sharing that once it's scheduled. >> thank you. >> that's for curriculum. >> section m, other informational items are staff reports and one with updates and

two, the may william's quarterly report. section o is memorial adjournment and i am going to ajourn this meeting in memory of marlene kayhaus. we will ajourn our meeting in memory of marlene who passed away after battling with ovarian cancer and survived by her mother, teresa, her sister who is 51 and her only daughter, michelle. marlene was born in san francisco, california to el salvador immigrants. marlene grew up responsible, mischievous. marlene loved family and grew up in a family with grandparents,

aunts, uncles, cousins with precious memories along the way. growing up, marlene went to russian river, playing and listening to music and summers in el salvador with her family. alongside family, marlene loved education. marlene was fond of the arts and was a phenomenal student. she had a great economic career where she met many life-long friends. marlene went on to attend mercy high school and met more of her life-long friends and they grew up listening to motown music and disco. she studied to be a nurse. after a long deliberation, marlene went on to live in el salvador with her family. it was there that she realized her true passion for helping others, specifically children. in el sa salvador, marlene workd

for her uncle's clinic. upon her ru return to the u.s.a, marlene changed her major and pursued an major in education. she pursued an masters in education. as her passion and skillsets continued to grow for education, marlene began working at the san francisco unified school district. marlene spent 37 years in the district and received many awards, recognitions and named principal of the year and marlene transcended diversity,en conclusion by being the first latina principal. in addition to leading, she was the principal at the spring valley and er taylor elementary schools. in her tenure at usfsd, she was with the commodore stockton. par lean was always kind, open

and loving mentor. marlene always touched the lives of her students and teachers with her positive attitude and was always searching for ways to improve in the futures of unrepresented children and i personally will never forget her smile. the board of education and superintendent of schools extends sincere condolences to the family. so wit at this time, we'll take public comment who wish to speak to closed session items and there will be a total of five minutes. >> the board will go into closed recess and we'll

>> the board approved contracts for two principles, the board voted seven ayes for the principles. and the board seven ayes approved the contract for one interim assistant principle. and the board approved the contracts for one supervisor in the matter of p.s. versus s.f.u.d., and case 202 on 251, a vote of seven ayes. and case 20021 -- to pay up to the stipulated amount. the board by a vote of aches ayes and one absent approved the non-re-election of two provisionary zero certificate employees. the board by a vote of, i guess seven ayes approved a settlement

agreement with one certificate to administrator. okay, are we done? >> i think so. i don't hear anybody. okay. so that concludes our meeting. the meeting is adjourned. >> thank you. >> goodnight, everyone. >> thank you. goodnight. >> goodnight, everybody.

>> the goal is simple. it's to raise women's voices. >> learn a little bit about what you should be thinking about in the future. >> we had own over 300 -- over 300 people who signed up for the one-on-one counseling today. >> i think in the world of leading, people sometimes discount the ability to lead quietly and effectively.

the assessor's office is a big one. there are 58 counties in the state of california and every single county has one elected assessor in the county. our job is to look at property taxes and make sure that we are fairly taxing every single property in san francisco. one of the big things that we do is as a result of our work, we bring in a lot of revenue, about 2.6 billion worth of revenue to the city. often, people will say, what do you do with that money, and i like to share what we do with property taxes. for every dollar we collect in property taxes, about 68 cents of it goes to support public sstss, our police officers, our fire departments, our streets,

our cleaning that happens in the city. but i think what most people don't know is 34 cents of the dollar goes to public education. so it goes to the state of california and in turn gets allocated back to our local school districts. so this is an incredibly important part of what we do in this office. it's an interesting place to be, i have to say. my colleagues across the state have been wonderful and have been very welcoming and share their knowledge with me. in my day-to-day life, i don't think about that role, being the only asian american assessor in the state, i just focus on being the best i can be, representing my city very well, representing the county of san francisco well. by being the only asian american assessor, i think you have a job to try to lift up and bring as many people on board, as well. i hope by doing the best that you can as an individual, people will start to see that

your assessor is your elected leaders, the people that are making important decisions can look like you, can be like you, can be from your background. i grew up with a family where most of my relatives, my aunties, my uncles, my parents, were immigrants to the united states. when my parents first came here, they came without any relatives or friends in the united states. they had very little money, and they didn't know how to speak english very well. they came to a place that was completely foreign, a place where they had absolutely nobody here to help them, and i can't imagine what that must have been like, how brave it was for them to take that step because they were doing this in order to create an opportunity for their family. so my parents had odd jobs, my dad worked in the kitchens, my mom worked as a seamstress sewing. as we grew up, we eventually had a small business. i very much grew up in a family

of immigrants, where we helped to translate. we went to the restaurant every weekend helping out, rolling egg rolls, eating egg rolls, and doing whatever we need to do to help the family out. it really was an experience growing up that helped me be the person that i am and viewing public service the way that i do. one of the events that really stuck with me when i was growing up was actually the rodney king riots. we lived in southern california at the time, and my parents had a restaurant in inglewood, california. i can remember smelling smoke, seeing ashes where we lived. it was incredibly scary because we didn't know if we were going to lose that restaurant, if it was going to be burned down, if it was going to be damaged, and it was our entire livelihood. and i remember there were a lot of conversations at that time around what it was that government to do to create more

opportunities or help people be more successful, and that stuck with me. it stuck with me because i remain believe government has a role, government has a responsibility to change the outcomes for communities, to create opportunities, to help people go to school, to help people open businesses and be successful. >> make sure to be safe, and of course to have fun. >> and then, i think as you continue to serve in government, you realize that those convictions and the persons that you are really help to inform you, and so long as you go back to your core, and you remember why you're doing what you're doing, you know, i think you can't go wrong. it's funny, because, you know, i never had thought i would do this. i became a supervisor first for the city under very unusual circumstances, and i can remember one day, i'm shopping with friends and really not having a care in the world about politics or running for office or being in a public position, and the next day, i'm sworn in and serving on the board of supervisors.

for many of us who are going through our public service, it's very interesting, i think, what people view as a leader. sometimes people say, well, maybe the person who is most outspoken, the person who yells the loudest or who speaks the loudest is going to be the best leader. and i think how i was raised, i like to listen first, and i like to try to figure outweighs to work with -- out ways to work with people to get things done. i hope that time goes on, you can see that you can have all sorts of different leaders whether at the top of city government or leading organizations or leading teams, that there are really different kinds of leadership styles that we should really foster because it makes us stronger as organizations. >> take advantage of all the wonderful information that you have here, at the vendor booth, at our seminars and also the one-on-one counseling. >> i wouldn't be where i was if i didn't have very strong people who believed in me. and even at times when i didn't

believe in my own abilities or my own skills, i had a lot of people who trusted and believed i either had the passion or skills to accomplish and do what i did. if there was one thing that i can tell young women, girls, who are thinking about and dreaming about the things they want to be, whether it's being a doctor or being in politics, running an organization, being in business, whatever it is, i think it's really to just trust yourself and believe that who you are is enough, that you are enough to make it work and to make things successful. . >> you may begin the meeting. >> good afternoon. we will call the meeting to

order. i will start with a public announcement. brief remainder to mute your microphones. unmute when you are ready to speak. i suggest you keep your cell phones away from the computer if that is what you are using. due to the covid-19 health emergency and the health recommendations and that governor and mayor have listed the restrictions this is held with all members and staff participating via teleconference to ensure the safety of the board, staff and members of the public. in our published notice for the meeting and on the web page we ask the public to participate remotely by writing to the board or leaving voicemail in advance of the meeting. we have received and appreciate those comments. while this technology allows

these meetings it may not be as seamless as we would like. there will be gaps and dead airtime as staff is transitioning the technology between the speakers. please know we are doing the best we can and we ask your understanding and patience as we all learn this new way of working together. if i haven't done so, i am going to ask all members of the board to mute themselves to minimize background noise. unmute to comment. there is staff in the background managing the technological functions during the meeting to switch from slide presentation to whoever is speaking at the moment. be patient as we make these adjustments. thank you to all people working to make this meeting possible starting with the technology manager, darlene who is co-producer. this is a lot of work putting

together. many rehearsals on using this technology. madam secretary, please call the roll. president driscoll. >> present. >> commissioner bridges. >> present. >> commissioner casciato. >> present. >> commissioner chu. >> present. >> commissioner heldfond not present. >> commissioner safai. >> present. >> commissioner stansbury. >> commissioner stansbury not present. we have a wore rum. >> first item, please.

>> 2. communications. due to the covid-1 covid-19 heah emergency the boardroom is closed. however members will be participating remotely at the same extent as if physically present. this is being delleviced by sfgovtv. there is a 20 to 30 second time lag. if members of the public have called in and are watching the meeting, please know there will be discrepancy between what you see on sfgovtv and what you are hearing. members of the public who wish to make public comment on items on the agenda, the phone number i(888)363-4734.

please make sure you are in a quiet location. that you turnoff any tv or radio. if you are live streaming the meeting via sfgovtv mute the sound. this will reduce any reverberation and electronic feedback so the board can hear you. at the appropriate time president driscoll will ask the phone lines to be open. if you wish to comment on a particular item press one and zero. the auto prompt will say callers are entering question and answer. this is public comment. you will be in the queue in the order you press one and zero. an automated voice will tell you when to speak. you will hear us to ask your

name and your comments. you will start two minutes. i will say 30 seconds when they are remaining. when your time is up, i will say thank you and next caller. the moderator will put you back on mute. i will repeat these instructions about dialing one and zero after the phone lines are open as i am aware some members may join late and may not have heard these. alternatively you may submit e-mail goes to public comment at sfgovtv. if you submit via e-mail it will be in the minutes of the next meeting. president driscoll. >> the board will be going into closed session. the board will return to open session to begin the public portion with general public comment but not earlier than 2:30. we will take public comment going into closed session at

this time. madam secretary, please open the phone lines for public comment. >> at this time the public may address the board up to two minutes on items within the subject. dial the toll-free number on the screen. enter the access code and press pound. when you hear you are connected to the meeting, stop and listen. wait for the public comment to be announced by item number or for general public comment. when the clerk calls public comment dial one then zero to be added to the speaker line. when the system message says you are notified when the speaker is ready, press one and zero and wait for your turn to speak. when the system message says

your line is unmuted state your name and make your comment after the tone. this is your opportunity to provide public comment after the beep. this is not a question and answer period. this is your time to provide a statement. you have the standard two minutes to provide comments. once your two minutes ended you will be out of the speaker line to the listening as a participant in the meeting unless you disconnect. participants who wish to speak on other items on the agenda or comment periods may stay on the meeting line and listen for the clerk's next prompt. do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you. president driscoll. you may proceed with the meeting. >> thank you. before closed session i will let those planning to come back to

the open public session it will not be before 2:30. the first action item we will discuss will be number 17. item number 11 is postponed one month. we are prepared now to go into closed session. board members reminded to please go to your calendar in the microsoft teams and join the closed back in open session. >> please call the roll. president driscoll. >> commissioner bridges. >> here. >> commissioner chu. >> here. >> commissioner safai. >> present. >> commissioner stansbury. >> we have a quorum. >> we have a motion to disclose or not disclose what was covered

in closed session. >> i would move that we not disclose what the proceedings were in closed session. >> is there a second. >> second. >> okay. i now will call for public comment on that motion. >> at this time the public may address the board up to two minutes on items in the subject. dial the number listed on the screen. enter th access code. stop and listen. wait for public comment to be announced by item number or for general public comment. when the clerk calls public comment dial 1 and 0 to be added to the speaker line. when it says you will be

notified when the speaker is ready for your question and to withdraw your question, press one then zero. wait for your turn to speak. when the system message says your line is unmuted, please state your name and make your comment after the tone. this is your opportunity to provide public comment after the beep. this is not a question and answer period. this is your time to provide a statement. you will have two standard minutes to provide comments. once your two minutes end you will be moved out of the speaker line and back to listening as a parties pant in the meeting unless you disconnect. if yo you wish to speak on other matters stay and wait for the prompt. do we have any callers on the

line? do we have any callers on the line?

we are waiting for callers. moderators, are there any callers on our line?

>> members of the public we have a technical problem we are trying to clear up. you have not missed anything.

>> moderator, do we have any callers on the line? >> i called in on the number.

it sounded like she was saying she couldn't log into the meeting. we are trying to figure out why the call is not going through to the meeting. this conversation is going out

live. >> i don't know what is wrong. if you could hear me then on the phone, but you were talking to someone on your phone. we would pick you up on the computer. it is the connection to the moderator to the meeting that is not occurring. it sounded like grace was there for a second when i first called because i got my computer. >> we are going out live. thank you.

>> moderator, do we have any callers on the line? >> can we move public comment to later in the meeting if this doesn't work? >> the public needs to hear the discussion.

>> robert, is that you? that is a legal issue we have to have public comment on the motion before we go the other items where there can be comments. until we connect the phones, we do not have a public meeting. >> moderator, do we have any callers on the line? >> i am assuming somebody is calling in to make sure that it is working or not working. >> it was tested yesterday. >> is anybody from the staff calling in to make sure that it is working or not working? >> president driscoll we should recess for five minutes. >> we have a caller on the line. the issue is the moderator is

muted so we cannot hear her. she is reported out but we cannot record the fact there is a caller for public comment. we cannot record the public comment. >> i am declaring a five minute >> there is one caller on the line. >> give us your name. your two minutes start when you start talking.

>> will the member who called in, please start talking. >> members of the public who are currently in the queue who wish to provide public comment please dial 1 and 0 when it is your turn to speak, the system will prompt you automatically. those not in the queue please follow the instructions on the screen. moderator, are there any more callers on the line?

>> madam secretary, one callers on the line.

>> city attorney bryant, how long do we have to wait because this caller is not connecting. >> why don't we move to the next item and if the caller is not connecting, i think that we can move on. if -- i mean, if everything is okay on our side and the caller is just not coming through, i think we can move on. and we need to make sure. >> madam secretary, ask the moderator. >> moderator, are there callers on the line? >> madam secretary, there's still one caller on the line.

>> okay. my apologies. we're not able to get the caller connected. therefore, that will conclude the public comment and i will call the question on the motion to not disclose what was covered in the closed session. madam secretary, roll call. >> clerk: commissioner driscoll? aye. commissioner bridges. aye. commissioner tu, aye. commissioner holfein, aye. commissioner safai. aye. commissioner sansbury. aye. >> madam secretary, the next item, number 4, general public comment. >> clerk: item four is general public comment.

>> and the members can direct on interest of the public. and the members have an opportunity to speak to each item on the agenda when public comment is called for and that item. and they can address the public comment. first speaker led by (indiscernible) and before i do that i will recognize the executive director. >> president driscoll and members of the board, we have received two public comments and i'll read the first one into the record and the second one is 150 words, however, it will be included in the minutes. the first public comment is from

john stenson. his public comment is hedge fund managers are notoriously anti-union and they have no problem investing in firearm investments. so i hope that all of you board members that belong to labor unit whereons when you invest in hedge funds you're biting the hand that feeds you. with best regards from john ste in everyone za, a 45-year member of the s.f. retirement fund. and accepted is a letter from june leong and we'll include it with the minutes when we bring them back to the board for approval. and those are the only public comments that we have received via email. thank you. >> madam secretary, please open up the phone lines for general public comment. >> clerk: members of the public who are currently in the queue who wish to provide

general public comment, please dial 1, 0. when it is your turn to speak the system will prompt you automatically. those of you who are not in the queue, please follow the instructions shown on the screen. moderator, do we have any callers? >> hello? >> please give us your name. >> hello? >> your time will start -- >> do you hear me? >> yes. go ahead with your comment. >> thank you for allowing this comment in these covid-19 times. my name is damian goodman and i'm actually calling from los angeles, california, specifically for the community. i lived in the park area where the crenshaw mall that is

situated. and in a community that had concentration of black people in los angeles. home to the pan-african film festival which attracts 50,000 people from across the world with the largest black film festival in america. and the redevelopment of the crenshaw mall was a dream of the late great mayor tom bradley. you may ask why i'm speaking to the san francisco retirement system, it's because it is clear that you have funds of your public and your retirees in c.i.n. booth. 14 days ago the "los angeles times" and the t.a.m. group would seek to acquire this cultural iconic and economic engine in los angeles, in south los angeles specifically. and intend to do it differently than the plans that have been previously been approved. they actually speak to intentionally re-tenant. they push out existing tenants

and those in the surrounds communities to bring in the more affluent and better paying businesses in culver city. to understand how significant this issue is, by the end of the day crenshaw mall was trending on twitter nationally. that's how important this center is. so we sincerely doubt -- >> you have 30 seconds remaining. >> the people of san francisco are aware and that we'd like you to do three things. first, to confirm for the public that the dollars from this fund have gone into projects that intend to identify crenshaw. second, confirm that the dollars have gone into the acquisition of the crenshaw mall from your fund. and, third, to send correspondents to terminate the acquisition of the mall so that the community that has risen up and made its voice clear they don't want -- >> your time is up, thank you. next caller, please. >> thank you so much.

>> moderator, do we have any further calls? >> madam secretary, there are no more callers on the line. >> clerk: thank you. president driscoll? >> thank you. we are now going to start with item 17 from the investment calendar. mr. koppel, you have the floor. >> this is for the downside protection and they're listed on page one and there's a 10% out of the money which i'll explain in a moment and for $30 million plus for 4.13% of an $8 million portfolio which is the size of

our portfolio and 1.7% of our total current assets of $26 billion. out of the money put, it seems that we infer the full loss of a public market downturn equal to the amount that is out of the money but we are protesting against the loss greater than that or the duration of the contract period. at the bottom of page 2, [broken audio] and you can see (indiscernible) [broken audio]

[broken audio] and we would be negative 4.3%... 14.1% equal to the loss of the public equity, the losses across the book. but we are against a loss of greater than 10%, so our negative downsize... (indiscernible) on page 3 then, and it's higher. for example, applying the same 20% public return is for our risk management system and we estimate that our full return would be about 15%. and then net cost is 1.27% of $26 billion total cost. and these are a return

(indiscernible). and then you can see the public equity confirmed negative 10 is that we estimate the return would be about negative six. and then the cost would be negative 2.7. and you can see thereafter that the full $26 billion is not protected in the public equity of greater than 10% with these losses. but we are protected against more than a 10% loss in public equity. and then on page 3 and 4, we would do the same with purchasing a 20% out of the money. and you can see here the costs if we refer back to table on page 2, the cost is $187 million or 2.34% of the $8 billion portfolio and 72 basis points.

and the total trust assets and we can find that table in the upper part of page 4 is the public equity return of 20%. public equity would return 17.7%. [broken audio] and the public equity return of 20% during this -- at the end of this 20-year period is a return against a loss of greater than 20% or the period of the contract. identifying that same to the trust as a whole, option 2 is seen that, for example, that it's public equity, that we estimate the trust as a whole would earn 15, and up to 72 basis points for the cost, which is $187 million or 72 basis

points of the trust assets of $26 billion which our return is 14.28%. and those are highlights of the public examples of what we call purposing of the money clause. there's several other options to consider. beginning on [broken audio] and these are the updates of 20 years. and the first option, option three is a 3% position or about $800 million. option four then is 5%, in the same amount in my analogy with the chart on page 5, [broken audio] what that does is it levers defines. why would somebody want to do something like that? this highlights the returns of

the public equity and the total trust we lost 20.11%. and i think that it's down 22.4%. but you can see the 20-year treasury return was plus 22.16%, and that 20-year treasury portfolio returned over [broken audio] and our total trust returns negative 7.56% for the quarter. if instead we had purchased 3% 20-year treasury and sold public equity of 3% on january 1 is our return would have been -6.70%. and then on option 4 if we had

done a 5% position of 20-year treasuries, sole public equity at 5% on january 1, is our return would have been -5.8%, better than 2% of our actual experience. and then you can see on long dated treasuries 20 years, levered three times, on the 3% position, is our loss would have been -5.46% or 250 basis points of our actual experience. and then the next couple pages just walk through the map of that. now importantly, on page 7, is buying long-dated treasuries does not work. indeed, it works very poorly in a strong up market. for example, in calendar year 2013, public equity, our public equity portfolio is up 26.7%. and our total return for the total trust was up 16.8%. but take note of the 20-year

treasury return was -13.7% in the 20-year levered treasury portfolio return -39%. so in the same examples that follow if we had done the same actions as back on page 5, rather than earn 16.8% our return would have been about -- a little more than 1%, to about 2% lower. so those highlight the three additional options. the first two options were to buy 10% and 20% out of the money pot, and the next three are buying long levered treasuries at different percentages, 3% and 5%. and also buying a 3% position in 3x levered 20-year treasuries. and our sixth option is to outsource the decision for a tactical allocation to an external manager. now this is something that ana

and i had -- was in our toolkit to bring to the board. ana has had a ton on her plate in the first year and a half. and began this initiative back early in the year, perhaps late last year and we sent out requests for our buys and we received 24 in return. we received those in march. and we have since asked for additional information to showcase one 2020 returns and the analysis of those 24 r.f.5s will soon begin. it's our anticipation that we may bring one or two strategies to the board late in the summer or in the fall. now ultimately, we're not recommending anything. even though we are very concerned that covid-19 represents a risk unlike any

other. and we don't think that the public equity returns, the market has recaptured more than half of almost two-thirds of its lost that it occurred of 34% from february 20th to march 23rd. it's captured nearly two-thirds of that back. we don't think that the markets are expressing the full magnitude of the economic apocalypse that has just taken place. to give some numbers to that is unemployment is currently now roughly over 20%. and it may trend towards 30% over the next number of months. single quarter g.d.p. is expected to be -30% to -40%, the worst ever on record for a single quarter which occurred 50 -- 62 years ago. it was -10%. and while all we have in our

toolkit to manage the -- to limit the spread of covid-19, if all we have is limiting social restrictions and limiting social gatherings, then that also puts a significant lid on economic activity, which then limits a rebound. the -- but ultimately we're not recommending anything for a couple of reasons. one, we have already done a ton. we've done a ton. we have reduced our public equity weight from 50%, five or six years ago, to 31%. that is at -- like a four or five-decade low. and it's not only very, very low relative to our own history but it's very low relative to our peers. our peers average in the mid-to-high 40s. second is that we currently do have an 8% allocation combined

to cash plus treasuries. and, third, is that it's really, really important to do this to get the timing exactly right. and you have to get the timing at the point of the purchase right and at the sell or at the end of the contract period. there are several examples here of how problematic timing can be. and i'll give you just one example that we're actually experiencing right now. if the market decline began on february 20th and peak to trough it was down almost -- it was down about 34%. and if we had been wise enough to buy 20% out of the money on february 13th, one week before the decline began and we held them through yesterday, february 12th -- and then they

expired, is that those would have expired worthless. even though the peak-to-trough decline was negative 34% because the markets have rebounded so strongly. if we had bought after the march 11th board meeting on march 12th, the market right now is up more than 15% since march 12th. so we would be more than 35% out of the money. even though -- so we think that ultimately the best way to manage the risk of a large loss is through diversification, strategic asset allocation, and manager selection, and outsourcing a gtaa solution to an external manager, rather than

making the decision in-house. that said, the board may have other sensitivities or sensibilities and ana and alan and i are happy to answer your questions and to be helpful however we may. >> you may start with questions. >> i've got a question for alan. what other systems are making tactical decisions like this and doing it well? >> brian, most large public funds have government practices that either as bill suggests outsource this to a manager that is hired to do it, or in some

rare cases to an individual c.i.o. i'm not aware of any where the board would direct the action at a moment in time to say do this. bill's options that he listed -- he himself has some authority as the c.i.o. to sell equities and buy bonds up to the limits that the board is approved. and he has the authority to do it. there's no governments required. to take on leveraged treasuries under your current policy, that's something that the board would have to specifically to allow and the same thing with put options. i agree with bill entirely that in the midst of a crisis it seems like we ought to do something that as you know that option pricing is based on the

volatility of the underlying instrument. and this carries to the s&p 500. the markets are extremely volatile now. so these options are very, very expensive. and as bill said -- i want to emphasize in bill's point is that had you bought one at the right time and the market had gone down the 30% or so that bill highlighted, and yet you're before expiration, here you are and the market is just dropped 30% and you have this option -- and you can exercise it today and it did work. but you're thinking, oh, my god, the market is down 30%. it's going to go down more. i'm going to hold on to this thing. and then the market does just what bill describes -- it bounces back to the point where you're no longer in the money. so you have to make that decision to buy it and to sell it. at exactly the right time. and to sell it you're going to

do in the face of a market that is declining and it's very hard to not be tempted to hold on because it's going to go down more. so i'm sorry -- i am straying away from your question. the question is how many other public funds exercise tactical repositioning? and the answer is very few. other than through third-party managers who have the authority to do it within controlled limits. and a handful with the c.i.o. has the delegated authority to do that. and, brian, i can give you one example from my whole experience. not one of my plans, but the new mexico public employee association prior to the great financial crisis, had a board member who was a state treasurer

and they positioned their $10 billion fund at the time, 25% in fixed income, right in the 2007-2008 period. and for two years they were the best performing public fund in the country. but they never reinvested that money and so as the markets recovered, if you look at the whole cycle, they ended up just about like everybody else. so it's very rare that a board would do that. and i have no examples where it's been done successfully. >> so what has the return been on the 30-year, say, in the last couple months or year-to-date? >> the 30 year treasury? >> yes. >> the 30-year unleveraged treasury has returned over 20% year-to-date. and the levered -- over 60%.

>> no, i understand that. it's a safe haven. but what about -- where we are in the market now. i mean, i don't want to time the market, i think that is always a bad call, but we are in a unique position now and i do think that there is equity in the credit market that are not -- going the same direction. you're going opposite directions. and so my question is, at this point in time, what do we do? do we increase our allocation to treasuries? i don't want to be on the wrong side of this though and get hit, you know, three times the volatility on the wrong side of treasuries. so what do we do? >> so to, first of all, purchasing long-levered treasuries is purchasing

insurance against an economic apocalypse. that's what that is. and the -- and then the -- depending how much insurance you want and how large your position is. i can -- i agree about the market risk is especially high right now. the market to me looks like it's pricing in a pretty strong recovery that to me a v-shaped recovery really requires a vaccine, it requires a treatment, and neither one of those is anywhere near on the horizon in the near term. the -- so i expect that over the next number of months that there's going to be a recognition by the market that

this recovery is going to take longer and it's going to be slower than consensus right now thinks. i could be wrong. and the market may -- even if that does happen, the market may look beyond that and look to 2021. that 2021 will have a strong recovery. another -- another issue about -- not just the market but about timing is that once we open up the -- once we open up the economy and we relax social restrictions we are going to have new cases. you know, we will have them in some degree of volume. we will be better prepared, the health care industry, to manage

them in volume than we were the first time, but we will have to act on these to shut down economic activity selectively, where regions pop up. we're going to have to act on that very quickly to limit the spread. now another positive factor related to a second wave and a third wave is that the first wave relied on the vide velocitf people movement. and this virus was released to the world in december. and in that time there were half a million people in the united states that traveled from china to the united states and more than a million that traveled from china to europe. and that velocity of people movement has stopped. it's going to be slow to return. so industries like hotels and airlines and, you know, the

like, those are going to be slow to return. and as long as social gatherings are dangerous is that it's going to put a lid on an economic recovery. brian, we have to find a new way here. we have to re-start economic activity. but we have to be thoughtful about how we manage the risk of large social gatherings and when we have smaller social gatherings like we have right now. we have, what, five of us in this room but we're all spread apart by more than 10 feet. you know, we're going to have to be smarter about how we practice business together. that new way needs to -- we need to begin to create that now. we can't rely on a vacts seen or treatmen -- vaccine or treatment

coming anytime soon. with the data that i read, there's nothing compelling right now. there may be in a few months but there is not right now. so as long as this virus exists and we don't have a vaccine and we don't have a treatment, we're going to have to find a way to live with that. and that could be several years. and it's the rally and pretty optimistic. what are we going to do, and are we going to do more treasuries and stay where we're at, what is the plan? >> so what we have done is that we have trimmed equities on recent strengths. so our cash plus treasuries right now is currently 8%. it may have hit a trough of about 4.5% a number of weeks ago. so that is one.

the -- we have not increased our risk as a result of this weakness. the third is that our public equity weight right now at 31%, that is really, really low. that's the equivalent of being underweight compared to our peers by comfortably 15%. that if the markets fell by 20% or 30%, we'll outperform by 3.5% to 4%. so our underweight-to-public equity is the equivalent of having a pretty significant position in treasuries even though formally it doesn't look that way. >> i'm glad that we are underweight equities and my concern is that we're going to see asset class correlation

increase as we go into a bit of a credit crunch here. >> yeah, yeah. >> are we going to try to increase that? what is our plan beyond -- and i appreciate the fact that we're not going to do as bad as everybody else, but when everybody else is 20%, 30% down, i don't like being 20% down. so what else can we do? what is our plan over the next couple months? are we just going to hold tight? >> we have debated back and forth. i have had the subject with ana and th why we should buy 20-year treasuries or leverage the treasuries and the latter we'd have to bring a recommendation in i believe to the board. thus far we have not elected to do that.

it's -- that kind of investment is only going to serve us well in an economic apocalypse. other than that it's not going to serve our interests well. the yield is 0.7%. and in addition to -- we think that we're well protected on the downside because of our asset allocation. and also because of our manager selection. as we have indicated, we have a pretty considerable overweight to technology, to software, to the digital economy, to biotech and the innovation. all of these themes are working very much in our favor. and we think that this crisis has pulled all of those themes in the future. we think that they have

accelerated and brought them forward. and so we thank we're going to hold up -- think that we're going to hold up well with asset allocation and manager selection. the last thing that i would note is that we have our eye, in addition to -- brian, i think that we have a really, really good approach to asset allocation and manager selection to achieve two goals. one is to protect ourselves against a large market decline. we're still going to get hurt. but we will not be hurt as much as others. and every few percent does help because of the compound nature that when you lose money that if you lose 20%, you have to make

25% to get back to even. and that number is even larger when you have cash out post for pension benefits. so we have good downside protection. and we're also cognizant that timing markets is highly, highly problematic. and we're also cognizant that we have to earn over 7% in the long term. we're also ko cognizant that the 15-year return in the s&p 500 today is 8.6% annualized. that's through this recent experience and it's through the g.f.c. so two blood baths and it's still earned 8.6%. and the -- it's been my experience that moments of deep pain in the markets when you look out 15 years from now, in every instance in my career they

have been blips on the screen. every single one -- 1987. the bursting of the internet bubble and the g.f.c. and even this current experience, it's bounced back more than half in less than two months. >> you know, i would like to say a couple things and i will step away and let other board members chime in. i think that if we were to ask the members of the pension system who went through pension reform, you know, how they feel about the s&p 500 recovery with the financial crisis, and having everybody to say that it would be great. but people would be willing to give up some of that return to avoid pension reform. and there's a lot of people on the sidelines rooting for the pension systems to fail. and so we do have a benefit of investing over the long term. but we are subject to short-term political gyrations. even as illogical as they may

be. and so we want to make good long-term decisions for our investments, but we do need to be mindful of the volatility. and so i appreciate all of the work that and the staff have done to set this up, but i guess that in closing i have one last question -- just very simple -- are you going to hold us and take us up to that maximum 6% of treasuries? or are you going to keep us where we're at? what is your plan? >> yeah, so we currently have 8 -- so our target weight-to-treasuries is 6% and our target weight-to-cash is zero. and combined right now those two numbers are 8%. >> so we're at the maximum of 6% right now? >> no. we have 4.6% in treasuries of our target weight to cash is zero. and with an allowable range up to 5%.

and we currently have 3.4% in cash. we normally are fully invested, but we're not right now. so if you look at treasuries plus cash together as one line item, the target weight is 6% and our actual weight right now is 8%. >> do you need more authority, or do you need authority to increase that? do you want to increase that? or are you content with the range that the board has given you? >> did i hear somebody was about to make a comment? >> this is ana. i think that the ranges are very reasonable, they're set strategically. and the range for treasury is -- i believe is up to 9% as well as the range for cash is up to 5%. so combined cash and treasuries it's 14%. so we have the authority to go

from 8% where we are now to 14% if we deem that there is a need for that. and we're monitoring it very, very closely. and everything that we have done and that bill just outlined, first and foremost, we wanted to make sure that we have the liquidity. that the liquidity, not just immediate for one or two months as we discussed, whether it's a year or two that we can withstand it. and that's why we -- we feel that it is very important to have cash as well as treasuries. the second point that i would bring is that in june we plan to propose changes as discussed changes, and not proposed, but discussed to our asset allocation and we're working is very closely with this.

and bill and i work with an a.p.c. to think what it means for us. because these are longer term decisions. and the longer term we would have the plan to be more liquid and to have a defensive allocation. and so the recommendations that we would like to discuss going forward will include the recommendation with the view that bill just discussed, the g.t.a. global tactical asset allocation manager, that with the view of protecting from the equity downside. and an allocation to cash. so these are the things that we would -- we would come in and view. now the shorter term, brian and i hear you between now and june and july when we start that

discussion, we are holding on and we might increase that allocation. >> so i just want to hear this correct. i thought that treasuries we had a limit of 6%. it's 9%? >> the target weight is 6%. >> the target is 6%. and the upper limit is 9%. >> okay, all right. and -- in terms of between now and june, i suspect that we're probably going to see a lot happen, especially in the middle of june as companies start to wrap up the quarter and we see close to a full quarter effect on everybody. do you need any changes in policy in the interim to protect the plan between now and when you come back with the recommendation? >> we don't plan to -- we've discussed this, i don't know,

six, seven or eight times in the last month and a half. i have come close several times to suggest to our team that we buy -- that we go to the board with a recommendation to buy 3x levered treasuries. but we have not gotten super close to doing that. again, in recognition that in a market rally that we will get killed by that and it represents the very poor long-term return. and with all of the stimulus that's been approved and which i believe that there will be much more stimulus to come because i do think that the coronavirus will be with us for a period of time and that unemployment will be double digits, six, 12 months from now, and i think that

there's going to be many trillions of dollars more, $5 trillion, $10 trillion of stimulus. this becomes potentially inflationary at some point. while a 3x long levered treasury is the absolute worst investment to have in such an environment. so this really becomes problematic if we put it on about when to take it off. so right now we're comfortable with where we are at. we have recognized that the markets have done -- have giddy-up and go. and i would point out about the equity market. there's no bear market and there was never a bear market in the amazon and there's not a bear market in netflix. it's really company specific. it's industry specific. and we have a tilt towards the

parts of the new economy that are benefitting from these changes that are underway in how people enjoy their lives and how we do business. again, brian, i just want to r reemphasize that having a 30% weight relative to our peers that are north of 45%. that difference of 15%, if the public equity goes down by 20%, it is -- it is we outperform by 3%. and that 20% decline is on -- is on 30% of our portfolio. it's a 6% hit. it's not across the entire $26 billion trust. so the headline number of the public equity is doing is obviously can be very upsetting

when the market is going down. but we hold up relatively well. and -- in addition to that, it's not just public equity but our private equity portfolio is 75% in technology and biotech -- life sciences. that's a really good position to be in in this kind of market. in real estate, we have a 5% of our book of our real estate book is in -- is in hotels. that's a really low weight. that equals 50 basis points of plan assets. that's a really low weight. and except for the mortgage investments that we'll talk about which we think that are an absolute return and the energy investments in our natural resources portfolio, which are

going to take a very long time to come back, you really need much higher demand and much less supply to begin to get a good return out of that. that's a really long-dated story to come back. i'm not sure how much it's going to come back. but except for that one part of our por portfolio, i don't view anything as structurally broken. >> well, the other thing that -- to consider in the numbers that bill presented is that these are indices. and if you look at the composition of s an s&p 500, 50s health care and health care and the amazons and the ne netflix d google. and they are benefitting from this type of environment. so we have to be very cautious if we do go defensive that we might not participate on the other side of the economy that

is benefitting. >> i was going to say -- >> go ahead. >> brian, i'm not sure if you had the opportunity to review it but yesterday afternoon i sent what the cost is to buy 5% and 10% and 20% between may 15-june 30th. so assuming that the key sensitivity point is what will our fiscal year return look like on june 30th. so to avoid a large loss between now and fiscal year-end. the cost of buying 5% out of the money puts on an $8 billion public equity portfolio is $172 million. so that's 2.16% of public equity and it is about 66 basis points of plan assets. so if the markets didn't fall

more than 5% between now and the end of the year is our return would be reduced by 66% over the next month and a half. over a 10% out of the money put costs $100 million. so that's 39 basis points, the plan assets. and 20% out is $32 million. so that's only 12 basis points. those are options for the board to consider. the -- we would still -- you know, say in the 20% option, the cost is really at $32 million. but that does mean that we're protected against the loss between now and the end of -- just six and a half weeks from now. the market would have to decline more than 20.4% for that to be a profitable trade. >> i will just say this, you know, and then i'm truly done.

i would rather give up some on the s&p side to protect us from the downside. and i don't know that that means buying puts, but maybe it means a higher percentage to cash than treasuries. so i strongly encourage you all when this meeting is over as priority number one to think about what you need to do to protect the pensions from this ever changing economy. and especially between now and the fiscal year-end. because a long-term return is important to get through each fiscal year. and i wish that we could invest in a vacuum without the politics of everybody who just likes pension systems but we're in an interesting point in time and so my message is very strongly to

please consider a defensive position and i'll turn it back to the chair. >> could i just make two more quick comments, brian. i totally the short-term sensitivities and that's why we have the asset allocation that we do. it's to protect us from a large loss because the impact of politics and the potential for the glaring eye of the media and the funded status and the sustainability of a public pension plan. that's why we have the asset allocation and the approach to manager selection and the emphasis on manager selection that we do. it's to protect us from the downside. the modeling that ana and i did

a year or so ago shows that in punishing markets that we should be comfortably ato a top perfor. our -- we all know that our returns in the last five years have been really good. they're in the top 5%, 6%. the lesser known story of that is that our risk adjusted returns i believe that are in the top 1%. and our and our downside protection -- so our ratio, i don't recall exactly what it is but i believe that is in the top 5% relative to our peers. and it's an approach through

asset allocation and through manager selection. but i hear you about considering to do more. >> any board members with questions before i start. >> yes, thank you. bill, thank you very much for your commentary and i do agree with you it's a very difficult process and i thank you and your team for being very committed to looking at the various models throughout the process. and my question is that i look at the various sectors and our asset allocation that we have thus far and i would like to know on absolute return, how you

think that we'll do during this crisis as well as our exposure to china. if you could comment on both of those for me, it would be great. >> sure, i'll comment on china real quick. china has held up quite well here during this pandemic. and the beta returns are fine. and in public equity the weighted averages and the access returns are 8% or 9%. and our returns in china are stellar, and they're outperforming as a whole i think by 4% or 5%. our private equity return portfolios are very good. and tanya and ana and kurt are welcome to chime in if they have more exact numbers. so regarding china, i recognize

that it's a political hot button, it's a political bull's eye. and it's also a great place for entrepreneurialism. it's a great place for innovation. and a rising standard of living for middle class. there's just so many ways to make money in china. we talk about in health care, well, health care in china, you can make money in clinics and in medical equipment and in dentistry and in biotech. and in many segments of their economy that there's really good ways to make money. now that's different shade between the politics and how to make money. so our china investments have done really, really well. our private credit investments in asia and in asia have outperformed our private credit returns as a whole.

and in absolute return, our china investments have totally kicked it. it's i think that it might be -- one of our two best performing managers is our long/short china equity manager. turning to absolute return, this portfolio was doing great through the end of february. it was outperforming bonds. it had less volatility than bonds and it had a ton less volatility than stocks. and it had captured only 11% of the equity return in months during the equity market decline. it was showing a great deal of independence from both the stock market and the bond market. and you look at its monthly returns and it's just these small little movements, mostly up i think 33 months and five

down months. and that was better than the stock market and a lot better than the bond market. which was about half and half up and down. and so it was totally doing exactly what it was designed to do and in march that all fell apart. we'll talk about it during david's -- during david's update. it's principally around our credit exposure. and in particular they're in the mortgage market and our mortgage investments fundamentally look so strong. but they're not in market prices and we're not reflected in the march crisis. they were in the february crisis when the equity market was down 7%, our absolute return port foal you was down 31 basis points. it did great. but in march investors began to fear a depression and priced in

a depression. and it's reflected in the pricing of our mortgage investments which fell by -- between 50% and 90%. we ultimately think that is money good. we think that we get all of that money back. >> okay. we'll talk more about this, but i think that the key is liquidity management and i'm looking forward to the presentation further in the board meeting where we talk about the management of the portfolio. that will be the key during the pandemic crisis. >> yes. >> absolutely, leona. and as bill mentioned, and our allocation and why we are confident that we will -- we will -- certainly short term, by the end of q2 will be in good hands in -- in solid returns. but also why longer term it

makes sense is because we have a large allocation to liquid asset classes. as a result it's imperative to monitor liquidity and we are doing -- and monitoring -- we have almost 4% in cash right now which is the highest that we've ever seen. and we monitor it very closely. and it's not now, but in june we plan to present an even more liquidity stress that we are gearing towards. we hope that it won't be experiencing it, but we want to plan for that. in fact, it's our responsibility to plan for that and we're doing it. >> thank you, president driscoll. >> next board member. >> tanya and ana.

thank you. >> other board members with questions? hearing no other board members i will make some questions and observations. an attempt to clarify certain parts. but, bill, you mentioned the 7.4% and you said "have to earn." and i would say it's not a "have to earn" issue, except by the board adopting it as allocation, we told our stakeholders and sponsors that we can earn 7.4%. that's why it's an objective. that's one. and two, this item was put on the calendar as tactical. not strategic. and the asset allocation mix gives you the range to go down to 20% public equity.

you have the discretion to do that now. as a tactical decision. >> so i believe -- i thought that the minimum was 25%. >> absolutelactually 25%. >> yeah, yeah. there are no active considerations right now to reduce the (indiscernible) -- 31%, excuse me. >> the point is that if you thought that equity returns were not so good tactically, you could sell the futures now and buy the long treasuries without going through the option business. you could rebalance the portfolio right now. you have the discretion to do that. just like you had the discretion to go to 6% treasuries that you didn't do for whatever reason. >> well, we look at it that we are defensively positioned right

now. >> okay. and you don't thank we need to become more defensive tactically in the near term? >> no, we don't. >> okay. because in your memo you have mentioned how in the markets went down a great deal in 2007, that everybody thought it was going to bottom out and it went down greatly again. so it can happen again. i think that you mentioned how in your career and probably amongst all of us here you have the longest investment career but there's other people who said no one investing today has ever lived with the possible recession that may come. one of our managers said that at least $20 trillion has to put in the economy of the world to

maybe just stop things from sliding. >> um-hmm. >> will that occur? will it be necessary? >> i believe that much, much more stimulus is going to be needed than we have spent on it so far and $20 trillion would not surprise me at all. if we look, there are right now -- we began this crisis with about 170 million jobs in the u.s. and comfortably 50 million to 60 million of those jobs are going away. and there was a study yesterday that indicated that 40% of the jobs that will be lost will not come back, okay? so there's going to have to be a whole lot of stimulus for quite a period -- for quite a period of time. at least for as long as we don't have a vaccine or a treatment is that the economy will be ailing for a while. we're not going to get back to previous base for at least several years.

>> so tactically -- >> we're going to have to find new ways of creating how we do business and how we enjoy our lives. >> so tactically you don't think that we need to do anything more? i mean, we're always trying to do things -- but to reduce our exposure more, the fact that we went to 31% is the big reason why our returns -- by reducing the equity and bringing on the absolute return among other things, that was one of your objectives was to cut the draw down in half -- >> that's right. >> the question is tactically, we do not need to do more? >> and president driscoll, you're exactly right, we did that strategically through our asset allocation. you said it exactly right. we had planned for an event like this while still thinking that we could achieve 7% plus over the long term and protect us on

the downside. as far as doing it tactically, something beyond what we have done strategically, which is really significant to have a 31% weight to public equity. that's a pretty significant, strategic shift relative to our peers to protect on the downside, and to do something tactically introduces uncertainties about timing. we have thought six or seven or eight times about doing something tactically to take up treasuries more, even recommending levered treasuries and we have discussed that at least half a dozen times over the last month. i'm really, really, glad that we haven't done that. the stock market is up 20% in that time. >> thanks for all of that. i just wanted to say consciously

that we're not doing anything more significantly tactically, and continuing with what we're doing well now and trying to meet all of the cash calls from our private security. let me just point out that this is not such a big issue with me, but when you and alan -- you do the same thing -- when you talk about how we're doing compared to our peers, believe it or not, i think that is in one sense very irrelevant. because when we have the problems meeting our bills we're not able to ask our peers to pay. >> right. >> this is the wrong footing. it's what i call a base bias. so i wish we would stay away from that, okay? and tactically we can do things. so whoever our really good investors, they're different we are. and maybe we should try to find out what they're doing and copy that. >> very good, commissioner, that's a great point. and i totally agree with you

that benchmarking yourself against peers is really a limited value. we have our own cash flows and our own characteristics and we have our own philosophy towards investment. and even putting aside that, to have only 49% in public plus private equity meaning, growth assets, only 49% for a pension plan, that's low. to achieve a long-term return, that's a modest number. if we had no cash flows, and we had no political sensitivities about what our short-term returns would be, rather than that 49% to public and private equity, i recommend that it would be 100%. >> yes. that is one reason why i've asked our consultant, mr. martin, to see if he could get any kind of a breakdown of the managers and their asset allocations to see how they're

doing. again, just a way of -- >> we are closer to them than we -- >> data relative to our own, but even relative to our own, 49% is light. >> yeah, but again the question is relative to what can we do -- how much risk do we want to take. that's why this big drop and tactically it's very uncomfortable. we don't like losing -- i say we don't particularly like volatility and preserving capital. if we can accept it, hey, it's okay. it's when it triggers a change in contributions, that's when people start asking us very pointed questions. it is with our success in being realistic about uncertainty particularly and risk that we're able to then tell our sponsor this is why to please support our budget to bring on more and better talent and to compensate them accordingly.

>> and president driscoll, you're right, we all dislike volatility. but videvolatility only matterse day of a year, june 30th. the volatility on to march 23rd is irrelevant, what is our return on june 30th is what is relevant. >> thank you. one, this is a possible action item and there's no motion on the floor. if someone wants to make one. i will note. staff has not made a recommendation. but commissioner stansbury, you asked for this to be put on the calendar and to think tactically and strategically at all times. and i will contact you if you want to continue on with this subject before we call for public comment. >> thank you, commissioner driscoll. from my perspective, you know, i think that having purchased puts

back in february before everything began to unravel and then we had sold at some point as the market kind of unraveled, it would have been very beneficial to the pension system. trying to see those things sometimes can be very difficult. and if you're on the wrong side of it, it's hard to justify $160 million loss. of course we don't have to do the full 8% and we could do a smaller portion thereof, but i'm not going to make a motion for that. and it sounds like from everything that i have heard from staff today that you feel like you have the flexibility and the tools that you need to protect this portfolio. but i would say this and i want to drive this home, echoing what commissioner discoo driscoll sad what we touched on earlier is that if we're only down 20% and everyone else is down 30%, that's great. but no one is going to care. they're only going to care that we're down 20%. and 18%, 20%, 24%, it doesn't

matter, the taxpayer, our sponsor, those people and, the employees and the members contributing, they are the ones that will care that we're up or down 20%. it's impossible to run an investment fund and have down years. it's just impossible. this is a unique situation. and i -- again, i want to just encourage you to think defensi defensively for the portfolio. other than that -- i'm not going to make a motion. and thank you for putting all of this together. this is probably still one of the most important conversations that we had in this fiscal year. >> this is helpful. i would like to note that if we bought puts 20% out of the puts on february 20th, right now markets are only down 14.9%. and that we wouldn't have made money on that trade.

>> but you wouldn't go 30% down and continue to sit on it. you would have closed out those positions and taken that money off the table. >> on june 30th we would not have touched it. >> i very much disagree with that. in fact, i would personally need a motion to take some of that money off the table to help to protect us. i think that (indiscernible) had an expiration, i think that -- >> right -- >> it's not a good decision. so, anyway, thank you for putting this together. and it sounds like you have the flexibility to do other things in puts. so, again, thank you, and just please be mindful of that. >> i understand. >> thank you. >> any board members with a motion before we go to public comment which is required. hearing no motion, madam

secretary, call for public comment. >> clerk: members of the public who are currently in the queue who wish to provide public comment please dial 1, and 0. when it is your turn to speak, you will be prompted automatically. those who are not in the queue, please follow the instructions shown on the screen. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. president driscoll? >> okay, there is no motion and therefore we go to item -- >> i have a question. i have a question. it's al. yeah, to bill -- do you think that you need a motion?

>> no, we would have calendared it as a recommendation if that's what we were requesting. >> okay. and i am just asking based on the entire conversation that just took place. okay, thank you. that's it. >> that takes us to item 8. board members, items 8 and 9 and 10 are almost identical, they are three terminations but they must be considered and voted on separately. >> very good, board members, item 8 is a recommendation to terminate a.q.r., an international equity strategy that we've had for about 13 or 14 years. and it has performance that has been in line with the benchmark. almost exactly. and you're familiar with our efforts to increase the excess returns of the public equity portfolio which we have been able to do with our recent hires.

kurt? >> thank you, bill. just to reiterate, the staff is recommending and to be supportive of the termination of our investment management agreement with a.q.r. bill noted they have been managing capital for us since 2006 woo. have written a brief memo with our rationale and if anyone would like to make comments i'll simply turn back to the board for questions. >> kurt, let me just -- this does tie together somewhat with the last discussion that we had on asset allocation and with the hiring of the manager that we previously hired and that is to bill's point that the tools that we have to achieve the 7.4%, joe, i couldn't agree more that's what we're trying to do. it involves not only the asset allocation and the diversification, but the selection of managers that add value. and managers that hug the index aren't going to add enough value

over time. and you previously hired a number of managers that are more differentiated, higher active share in industries that have better future growth potentials. and so when you do that, you need to get the money from somewhere or you're going to change the overall allocations. so all three of the managers that are being recommended for termination are not bad managers and they're not on -- being terminated because they haven't delivered but they really don't fit the strategic portfolio which is to add more active shares. and i'd say the same about all three of them that we're fully supportive of this because it is consistent with the long-term strategic intent for the portfolio. >> board members i would add that this is in line with our reduce allocation to public equity in the last two months.

so, again, it's not something that is reflective of the managers, it's reflective of the needs to reach an end of the staff desire to have public equity disclosure. >> thank you. you both said it very well. unfortunately, or perhaps someday the reporters who like to write up what we do only -- (indiscernible) and with that in the newspapers as opposed to the full explanation why we're trying to pursue greater active share with other managers. anyway, well said, alan. thank you, ana. anymore board members, if not, a motion is in order. >> i move to terminate. >> a second? >> i'll second it. >> madam secretary, call for public comment. >> clerk: president driscoll,

i'm sorry. members of the public who are currently in the queue who wish to provide public comment, please dial 1, 0, when it is your turn to speak and the system will prompt you automatically. those of you who are not in the queue, please follow the instructions shown on the screen. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> madam second, roll call. >> clerk: president driscoll? aye. commissioner bridges. aye. commissioner casciato. aye. commissioner chu. >> she had to go to another

meeting. >> clerk: absent. commissioner heldfond. aye. commissioner safai. aye. and i'm sorry, i have to leave the meeting now. >> clerk: thank you. commissioner stansbury. commissioner stansbury. he's not available. we have 5-2. motion passes. >> i don't know that you can call it 5-2. you have abstention or absence. >> clerk: the motion passes. >> next item. >> clerk: next is causeway and

this is a recommendation to terminate a manager in the portfolio for 17 years. they have slightly outperformance and we're seeking higher active share in this higher access returns. kurt? >> thank you, bill. for reasons and circumstances that we've just discussed, we're recommending the termination of our investment management agreement with causeway. again, we have written a brief memo that describes our rationale that we just discussed. and i'd like at this point to have any further input from anyone, i'll turn it back to the board for questions. >> i'll make a motion to adopt staff recommendation. >> is there a second? i move a second. commissioner heldfond did you second? >> i'll second, thank you.

>> board members any questions? hearing no questions, madam secretary, call for public comment. >> clerk: members of the public who you are currently in the queue who wish to provide public comment, please dial 1, 0, when it is your turn to speak and the system will prompt you automatically. those of you not in the queue follow the instructions shown on the screen. moderator, do we have any callers? >> madam secretary, there are no callers on the line. >> clerk: thank you. president driscoll. >> madam secretary, roll call vote. >> clerk: president driscoll. aye. commissioner bridges. aye. commissioner casciato. aye. commissioner chu.

not attending. commissioner heldfond. aye. commissioner safai. not attending. commissioner stansbury. aye. motion passes. >> be advised that it's getting late and commissioner chu had to leave at 3:00. so, thank you. next item. >> very good, board members. next is q. and a. and this is a core strategy that has underperformed in the 12 plus years for which we have been invested and they have increased amount of competition for data analytics for engineering talent like google and facebook. there are some firms that we still think highly of but it's

become a much more competitive space for engineering talent. so we recommend termination and we're looking for more company specific risks than this company can provide us and higher shares as well. kurt? >> thank you, bill. again, staff is recommending that we terminate our investment management agreement with 2ma. and before i turn over to the board i want to acknowledge and to thank each of the three firms for their partnership and contribution over many, many years. we have valued them. so with that, again, we have written a brief memo further describing our rationale and i'll turn back to the board for recommendations. >> i'll make a motion to adopt staff recommendation. >> leona, and i second. >> calling for public comment. >> clerk: members of the public who are currently in the queue and who wish to provide public comment, please dial 1,

0, when it is your turn to speak. and the system will prompt you automatically. those of you who are not in the queue, please follow the instructions shown on the screen. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you. president driscoll? >> aye. >> commissioner bridges. aye. commissioner casciato. aye. commissioner chu, absent. commissioner heldfond. aye. commissioner safai. absent. commissioner stansbury. aye. thank you, five ayes. motion passes.

>> next item number 12. >> very good. board members this is an annual update to the (indiscernible) portfolios and i'll just leave it for comment before turning it over to david. oh. can everybody hear me? >> yes. >> very good. board members in a moment i'll turn it over to david, with the portfolio update. through the end of february this portfolio was doing exactly as it was intended, it was outperforming bonds at very, very low volatility in the range of about 2% annualized. and had only captured 11% of the

market return, market equity return in months that the markets declined. it also had more up months than the equity market and many more up months and fewer down months than the bond market. that all changed in the month of march for reasons related that we think that are related to market-to-market pricing that do not resemble the underlying credit investments that we experienced large losses. we think that by holding tight we'll be money good meaning that we'll earn money and return of principle on these investments. and i'll ask david to take it from here. >> thank you, bill, thank you, commissioners. and can everyone hear me okay? okay. very good. we went into march of this year with about a third of our portfolio invested in credit oriented strategies and within that the meaningful allocation

of about 12% to residential mortgage credit. this was based on solid fundamentals in an area of the credit market that has gone through a notable strengthening since the global financial crisis. in the weeks that followed after april 29th, after february 29th, the world changed significantly. the majority of the developed world found itself under the government stay-at-home orders in the vibrant liberal economy and experienced an abrupt shu shutdown without clear dates of reopening. our portfolio suffered as a result and was down just over 10% during the month of march. in the interest of time today i'm going to skip through the slide deck and skip around various slides but highlight several key messages and then open up for the board's questions. i will provide detail on what happened inside of our portfolio during the month of march with some information showing how we were allocated coming into the

month and the data supports why we were allocated that way, details showing the market dynamics that drove our losses and the information on why our thesis for these investments remains intact. there were two presentations that were sent out for this meeting today and i'll be sharing the relevant slides virtually. i'll be starting with the first absolute return program update slide 6 that is titled "spurs absolutely return, return attribution by sub-strategy as of 3-31-2020". hopefully everyone can see this slide which is page 6 and shows the performance over time during the month of march up to six

different absolute return sub-strategies that we're allocated to. the most important takeaway on this page is the credit line item and its performance during the month of march. we started the month with slightly more than 28% of our program's capital to peer credit strategies. our multi-strategy and special situations managers also have some exposure to credit, so the total credit exposure was around 35%. pure credit strategies accounted for 54% of the loss during the month of march and when we include the credit portion of the loss for multi-strategy and special situations, the total losses attributable to credit exposure exceed 60% of our loss for the month. perhaps most important, is that our overweight-to-residential market strategies which had been additive for the last couple years quickly turned during the

month and was responsible for approximately a quarter of our program losses during the month. a logical question would be -- why did we have such a large allocation to residential mortgage credit? i would now like to direct your attention to slide 16. and in this it's the spurs residential mortgage credit for those not following virtually. and here you can see two columns comparing the residential mortgage credit from 2008 to the metrics that one of our managers invest in today. and anyone who has applied for a mortgage in the last 10 years knows that underwriting for individual loans today is done to very strict standards. compare this to the pregmpletd g.s.t. when there was little supporting documentation and the no income and no assets or ninja loan term came into prominence. a few other points to note --

most of the loans that compromise our mortgage exposure are comprised of loans with 10 plus years of payment history and have l.t.v.s around 75%. whereas in 2008, the loans were far less seasoned and many l.t.v.s were over 100%. lastly, household balance sheets came into the current covid-19 crisis in very strong shape. the aggregate of lending criteria attractive l.v.t.s and strong payment history and borrower financial help provided an attractive set of tailwinds for residential mortgage credit investment. on the next page, slide 17, and there's further support of the thesis as it highlights that the undersupply of housing is greater today than it has been in almost 50 years. additionally, the next wave of household formation from the age 20 to age 39 demographic cohort is just beginning and it's actually larger than that of the

baby boomers. i'll now skip a slide and skip ahead to page 19. where you can see a pie chart that has the u.s. fixed income market and that the mortgage related assets compromise more than one-fourth of it. as part of ourunde underwritinge had exposure to mortgage credit and concluded that our exposure was very small and disproportional given the size of this market. additionally, having the exposure be a hedge funds structure is advantageous in that these managers are given the flexibility to be long and short and can hedge out interest rate risk. in summary, there's a strong set of fundamentals and interest rate approaches that substantiated having 12% of the absolute return program capital invested in residential mortgage credit. what happened during the month of march?

and slide 21 21, march 2020 cret dislocation provided an idea of how bad the credit markets got by showing spreads at different points of time across various instruments. in all cases spreads at the end of march exceeded the 90% percentile of the range they experienced since 2012 for these instruments. third from the bottom is legacy non-agency, a residential back securities and it spread as of the end of march, and blew out to four times the level of where it was at the end of 2019. slide 22, shows the series of events that resulted in a perfect storm for credit. concerns about residential and commercial mortgage borrowers' ability to pay resulting from covid-19-driven economic weakness and concerns about a perceived refinance wave related to the interest rate movements in early march, led to a rapid

price decline among residential and commercial mortgage-backed securities. mortgages, which operate with leverage from four to 10 times, came under selling pressure when spreads widened and the prices declined. adding to the pressure on liquidity and pricing were high levels of redemptions experienced by mortgage and structured credit mutual funds with daily liquidity. further, typical buyers like insurance companies took a more defensive stance and were temporarily out of the market. lastly, there was a limited willingness of counter parties to provide financing and the market for residential market assets went into a severely dislocated state. bondbonds and loans that tradedt or near par at the end of february traded at levels as low as 50 during the month of march. a logical question here is -- how are our funds different from mortgage rates or mutual funds? or funds will hold many of the

same securities as mortgage rates, but they hold them in structures that utilize much lower levels of leverage, typically a quarter to one turn of leverage, and maintain much higher levels of cash. this helped our funds to avoid forced selling to meet margin calls, but there was nowhere to hide from the pricing pressure and our funds were forced to market their portfolios to market at month end. there's also a presentation that was sent out for this meeting from blackstone and there are several slides in here, for those following along and i'll refer to pages 4 through 6 of the blackstone presentation. but you should see on screen for those on the call a slide titled "forced selling and structured credit." with this slide, it talks through that residential mortgage-backed and commercial-backed assets declined in value by 30% to 50%,

which is comparable to the price declines in 2008 and 2009. on the next page, we see the time period over this -- that this occurred in march relative to what happened during the global financial crisis. what we just experienced took almost six months to occur during the global financial crisis and comparatively only took 15 days in march 2020. so the speed of this decline was absolutely unprecedented. and so what happens now? fortunately, the low leverage utilization and the strong cash positions of our mortgage and structured credit managers helped to mitigate and leverage the liquidity risk and presented the crist salizatio crystalliza. we estimate that of the 6% loss in march that it is attribute to our credit managers, that less

than 10% of that related to asset sales and a permanent loss of capital. as the stimulus packages have become better understood we have seen some recovery and credit spreads and the price of mortgage-related securities. we have seen positive performance from our credit managers in the range of 2% to 6% for the month of april. also mitigating the effect of our march loss is about $200 million of unfunded commitments that we have with residential mortgage credit managers who will be deploying capital into dislocated markets and the opportunity to earn stressed level returns on our behalf. the thesis is definitely impactedded bed by covid-19. first, the underlying loans were originated and or modified to very high credit standards. as a result of these standards and home price appreciation, l.v.t. ratios provide downside

protection from borrower weakness and home price declines. the housing shortage is an additional dynamic that is expected to help the asset class. lastly, the trillions of dollars of the government stimulus is targeted primarily at median income-level households that compromise the majority of borrowing that make up the loans in our portfolio. underlying loans in our portfolio average $150,000 to $200,000 and relate to household income levels below $120,000 annually, for which the cares act will provide income replacement near purpos 100% fo. and it's likely that the government stimulus will accelerate around the novemberlication if the economic weakness looks like it persists into 2021. no doubt from here that there is an element to the residential mortgage credit thesis that is aligning one's self with the government's stimulus actions. but given that we're under a

mandatory matter to stay in our homes as a matter of public health and our homes are not only where we sleep and also our restaurants and gyms and movie theatres and our places of work, we expect that the government will exhaust all possible resources to prevent another housing crisis. so we've gone through a lot of material here supporting our thesis and supporting why we still believe in these investments. we have a lot more materials for you today than we have time. but i'm going to stop here and both myself and the representatives of blackstone will be happy to take your questions on what we've discussed as well as any other topic that is related to the absolute return program. >> unmute. >> thank you. let's turn the floor over to the rep from brakeston blackstone ft

before we start the q. and a. >> do you have a specific question? >> no, just going to give them a chance, though you touched on their powerpoint, i thought they might want to add. >> okay, alberto, would you like to make a few comments? >> yes, good afternoon, david, bill and commissioners. can everyone hear me? >> yes. >> yes. >> great. yeah, i just want to confirm what david just said and in terms of some of the reasonings of why the portfolio had a meaningful exposure to the residential mortgages and, you know, going into this we thought that the fundamentals were very good and better than the previous crisis. david highlighted and walked through some of the slides. and especially the point that is most important is that this is

really mark to market and we expect this to recover. i will pause here. >> do we have any questions? board members, time to ask questions. okay, i'll ask one -- sort of a loaded observation.

but this is a performance review of this. and march had a tremendous effect on returns. dave, you basically decide with blackstone's help, you do two-thirds of the asset allocation with the categories and the manager selections to execute inside any category. i assume we don't make any major changes in the next 30, 60 days? >> we don't plan on making any major changes, but consistent with what you've heard from other members of the investment team, we are focused on slightly modifying the profile of the absolute return program to become more liquid. and this is just part of our

risk management efforts in order to make sure that we are in a position where we can absolutely fulfill the commitments that we've made to fund any of our unfunded commitments. and for absolute return, that extends even beyond some of those commitments that we have within our portfolio, but potentially to be a source of liquidity for other parts of the plan. so, you know, with the exception of some of those changes, we really don't anticipate making any other material changes. >> since inception, the strategy has been positive, though again march was a very bad month. and i tend to not focus on singular month returns but it's the first time that we had a chance to look at the total portfolio with this level --

this level of returns and how it breaks down. i know that there's another level underneath it but this is perhaps very good for the board meetings. that concludes my questions and observations. other board member questions? this say non-action item. >> hello, it's scott. if i could make one comment. to thank david and bill and everybody involved in how they presented this today. but more importantly how they sort of walked me -- i don't know whether they walked other commissioners, but i appreciate all of the time that you gave to explaining. >> i want to echo scott's comments and to really express my appreciation to the staff for your great work. >> and, david, it's leona. thank you for walking through the entire comprehensive review, because i did have some questions but you answered them all through the analysis and the research that you presented today.

so thank you to you and your staff. >> thank you. >> this is a non-action item but i still have to call for public comment. madam secretary. >> clerk: members of the public who are currently in the queue who wish to provide public comment, please dial 1, 0. when it is your turn to speak, the system will prompt you automatically. those of you who are not in the queue, please follow the instructions shown on the screen. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. president driscoll. >> that takes us to the last investment calendar item on the 13th. >> clerk: item 13, discussion item, chief investment officer report.

>> board members, we had a great month in april. we were up 4.29%. the -- just a great month. public equity was up, you know, double digits. and now on a fiscal year-to-date basis, i'm pleased to convey that we're up 1.37% on 10 months recorded in the books. and that's even as the s&p 500 is about flat and the broader equity market is still down decidedly. we do have one closing to report that i believe that i'm obligated to mention verbally and that canin closed. we asked the board for $40 million in march. we were allocated $30 million. this is a strategy.

and i wanted to mention about just the human health crisis to put some metrics to it which i have highlighted is that -- is 33 million, 36 million jobs lost in a period of six weeks and upemployment spiked from 3.5% to north of 20% in just six weeks. and 2q2020g.d.p. is expected to be down 30 to almost 40%. the worst on record is negative 10. and it's becoming clearer and clearer -- >> (indiscernible). >> it's becoming clearer and clearer that the recovery will be a slower one than consensus expects. in terms of asset class update,

public equity has solidly outperformed with the weight of technology and to health care, private equity. and absolute return, we just gave an update there, private equity has performed spectacularly well. it's up 11% on a fiscal year-to-date basis, again, overweight to tech and health care have helped considerably. and real assets is that real estate portfolio is holding up -- holding up reasonably well. and in the energy market, there's been a complete collapse of the demand following from $100 million to $70 million and the production initially rising. so a plunge in demand and the production has eased off some but there's still a significant

imbalance. it's going to take quite further time and production and a rise in demand. i think that the last in particular is going to be slow going. our private credit performance performed well, (indiscernible) and i did (indiscernible) and speak about one thing prior to going forward. [broken audio] the recovery would be v-shaped, and u-shaped. i think that is very likely barring (indiscernible) and l-shaped (indiscernible) it takes a very long time to begin a recovery. and a u-shaped is a recovery and then (indiscernible) or how long lasting the

(indiscernible) and it takes quite a long time. (indiscernible) and the industries are going to be slow to recover really for as long as social gatherings are dangerous, that's going to put a lid on an economic recovery. so we're going to be living with this risk for a while until we have a vaccine or a treatment and we're going to have to really discover new ways of enjoying our lives and new ways of doing business. meanwhile i'll point out on page 6 as i have before is that we have a material overweight throughout our portfolio to technology to software to biotech, to the digital economy, and to innovation. and all of those things have worked really well for us. and we believe that going forward that those things that have been pulled us closer --

(indiscernible) with that i will stop and ask the board if they have any questions. >> board members, questions? i'll just make one observation then. i note that alan martin (indiscernible) with forecasting and the prediction -- one of the instructors who i had the benefit of listening to has also offered to educate us. those who don't know forecast and those who forecast don't know. again, we will try to do our best going forward with all of the anticipated possibilities and allocate.

i will call for public comment please. >> clerk: (indiscernible) members of the public who are currently in the queue who wish to provide public comment, please dial 1, 0. when it is your turn to speak, the system will prompt you automatically. those of you who are not in the queue, please follow the instructions shown on the scre screen. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. president driscoll. >> okay, that moves us to the administrative calendar, items 14 and 15 can be taken together. it is the same subject matter.

>> clerk: item number 14 and 15. review and approval of the action adjustments for thomas a. abrahamsem and daniel dunnigan. >> i move to adopt those. >> is there a recommendation that we individually have to vote on this because of this change? >> commissioners, these are folks who have qualified for additional disability and that the workers' compensation and appeals board has come back with a final determination of the perseasopercentage of disabilit. so for mr. abrahamsen, to approve to adjusting his

retirement allowment to 63%. and for mr. dunfigan to 58%. and so we do need a roll call vote to approve both of these adjustments. >> we used to have to sign a paper. okay. missioner, what is the motion -- >> i'll make a motion to adopt the staff recommendations on both of these individuals. >> and i second. >> any public comment? hearing no public comment -- sorry, go ahead. >> clerk: members of the public who are currently in the queue who wish to provide public comment please dial 1, 0. when it is your turn to speak the system will prompt you automatically. those who are not in the queue, follow the instructions shown on the screen.

moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you, president driscoll. >> okay, before we go to the executive director's report, we need to go back and catch up -- oh, we need the roll call vote. >> roll call vote. president driscoll, aye. commissioner bridges, aye. misser casciato. commission. commissioner chu. absent. commissioner heldfond, aye. commissioner safai.

absent. commissioner stansbury. five ayes, motion passes. >> before we go to the executive director's report, we have items 5, 6 and 7 to catch up. 5 and 6 are basically identical. call them separate. >> clerk: item number 5 is action item approval of the minutes of the march 11, 2020 meeting. >> (indiscernible). >> does anybody have any corrections or deletions on the minutes of march 11? any questions? >> chair, i move that we adopt the minutes from march 11th. leona. >> i will second. >> any public comment? >> clerk: members of the public who are currently in the queue who wish to provide public comment please dial 1, 0. when it is your turn to speak the system will prompt you

automatically. those who are not in the queue, please follow the instructions on the screen. moderator, do we have any callers? >> madam secretary, there are no callers on the line. >> roll call vote. >> clerk: thank you. president driscoll. aye. commissioner bridges. aye. commissioner casciato. aye. commissioner chu. absent. commissioner heldfond. aye. commissioner safai. absent. accommodationer stansbury. aye. five ayes. motion passes. item number 6, action item approval of the minutes of the april 22,2020, special meeting.

>> i'll make a motion to appro approve. >> i'll second. >> any board questions? public comment? >> clerk: members of the public who are currently in the queue who wish to provide public comment, please dial 1, 0. when it is your turn to speak the system will prompt you automatically. those who are not in the queue, please follow the instructions shown on the screen. moderator, are there any callers on the line? >> madam secretary, there are no callers on the line. >> clerk: thank you. president driscoll. aye. commissioner bridges. aye. commissioner casciato. aye. commissioner chu. absent. commissioner heldfond. aye. commissioner safai. absent.

commissioner stansbury. aye. five ayes. motion passes. item number 7, consent calendar. >> any members want any items set aside for a separate consideration? if not, a motion to adopt is in order. >> so moved. casciato. >> leona. second. >> thank you. board members with any questions? any public comment? >> clerk: members of the public who are currently in the queue who wish to provide public comment, please dial 1, 0. when it is your turn to speak, the system will prompt you automatically. those of you who are not in the queue, follow the instructions on the screen. moderator, do we have any callers on the line? >> madam secretary, there are no

callers on the line. >> roll call vote. >> clerk: thank you. president driscoll. aye. commissioner bridges. aye. commissioner casciato. aye. commissioner chu. absent. commissioner heldfond. aye. commissioner safai. absent. commissioner stansbury. aye. five ayes. motion passes. >> next item. >> clerk: item 16, the executive director's report. >> you missed one. the -- i'm sorry. the one for training.

the agenda item for training. >> that was in the consent calendar. >> oh, -- okay, i forgot to amend. okay, forget it. >> we can reconsider and open it back up if you want to amend it. >> yeah, i just wanted to -- i was trying to see if i could attend that and if i could be amended to attend, i would like to see if i can put those modules in. >> we can certainly handle that with the vote to approve and we'll just add any other board members who want to attend, we can go ahead and set them up. >> (indiscernible). >> it probably doesn't even require an amendment. because it's just -- >> (indiscernible). >> the board approved it as an appropriate conference for one board member but certainly more board members could also want to attend. >> (indiscernible).

>> clerk: i'm sorry? >> i'll start, the executive director's report. i had sent out an email on the 5th of last week that the cares act provisions have been implemented, effective may 5th for the sfdcp program. i can report that during the first week that we've had some activities. we've had 13 participants who have applied for and received the corona-related distribution, the new distribution that allows them to take out up to 100% of their sfdcp account balance or $100,000. and we had 13 folks who have accessed that provision. there's also opportunity for them to repay that at a later date. we've also had three folks who have requested loan suspension.

they currently have loans and they want to suspend the repayments and so we've had three folks in the first week who have done that. and we've had one participant who has actually requested and received a covid loan, again, with a higher level limit up to $100,000 or 100% of the account balance. so the participants certainly, certain of them were very happy that the board approved this and there is -- i will call restraint access to it at this point, but, certainly, we have folks who are interested. and the other thing that i would stress is that the deadlines for filing form 700 were extended, but they're coming up. the deadline, the final deadline now is june 1, 2020. and then there was also the

mandatory harassment prevention training and that deadline was extended to may 15th, but we believe that it will be extended beyond may 15th. but darlene will remind you -- oh, i'm sorry -- darlene will remind those of you who have not completed the form 700 filing. and then we're waiting we believe that there will be an announcement today extending the harassment prevention training and once we have that deadline we'll send that out to you. with that, i will answer any questions of note on the 5th, the california supreme court have heard arguments in the alavita deputy sheriff association case related to restriction of components of pay and pension and it's one of the

three that will be being heard hopefully over the next few months by the supreme court. certainly, i believe that it's 90 days from the date of -- the oral arguments that we would anticipate a decision by the supreme court. but this is one of the california rule cases, and so i just wanted to let you know. i'm sure that you have probably seen summaries of folks' interpretations of the arguments, but we anticipate that there will be at least an initial ruling on this case in particular before august. and with that i'll answer any questions. >> board members, questions? i have a question then about the cares act. i have seen a lot of different

agencies try to explain it. it's loaded. but focusing on the defined contribution area where people can borrow or seek hardship withdrawals, i know that it's underway and you have sent stuff to it. have you tested to see whether our members understand the act? it's great that it's going on and i'm sure when they're coming down here they're getting good service, but did you actually test to see if participants understood what was mailed out to them or -- on the website -- not even mailed to them? >> right. i will clarify they're not coming here and our offices are still closed to the public. so the folks who have accessed it have either done it through member counselors or through the website. and certainly the fact sheet that i added on to my email when i notified you that it had been implemented, that has been distributed through the departments, the team and

resource department and posted so that the folks will know that it's available. but right now it's either done via telephone or online. but i believe that most of the applications that you are required to go to the sfdcp website. and i believe that the turnaround on the loans and the distributions is 24 hours. so that's always been extraordinarily fast. and if you complete the application today, it might be too late today, but you would expect it turned around within 24 hours. >> that is very quick. hopefully they'll understand the repayment issues. secondly, to let you know that the harassment training deadline is extended in my department to july 3rd. so maybe they'll -- (indiscernible) and the supreme court case which is a triple case that may or may not affect us directly. on the service side, since it

comes out of your reports, to let you know that a member walked up to me yesterday morning who i had seen a million times and said, i want to retire. and within 30 minutes and the administrative side were starting to deliver fixed services to this gentleman. and it was super service very quick. well done. thank you. >> thank you. >> thank you, members. >> thank you. >> any other board members have questions or comments? >> this -- (indiscernible). i want to say that i want to thank and the staff and everybody for all of the help, you know, all of the calls that we've gotten and all of the people that are similar to joe, with what joe experienced yesterday. i want to say thank you, thank you all across the board. >> thank you for your recognition. >> okay. >> in how things went today,

about 45 minutes were spent simply by the madam secretary going back and forth. it's necessary to meet the meeting rules so i know that everyone wants to spend more time on the important part of listening to the presentations by staff and our subject experts but with that a motion to adjourn is in i order. public comment on my supreme court. >> thank you, robert. public comment on the executive director's report? >> clerk: members of the public who are wishing to provide public comment dial 1, 0. members of the public who are currently in the queue who wish to provide public comment, please dial 1, 0. when it is your turn to speak the system will prompt you automatically. those of you who are not in the queue, please follow the instructions shown on the screen. moderator, do we have any callers on the line?

>> madam secretary, there are no callers on the line. >> clerk: thank you. president driscoll. >> motion to adjourn is in order. does that require a roll call vote? >> so moved. >> thank you. >> so moved. >> meeting is adjourned. time to hang up.

>> for the first time in nearly

two decades fishers have been granted the legal right to sell fish directly to the package right off their boat -- to the public right off their boats in san francisco. it's not only helping local fishers to stay afloat but it's evoking the spirit of the wharf by resurfacing the traditional methods of selling fish. but how is it regulated? and what does it take for a boat to be transported into a floating fish market? find out as we hop on board on this episode of "what's next sf." (♪) we're here with the owner and the captain of the vessel pioneer. it's no coincidence that your boat is called the pioneer because it's doing just that. it's the first boat in san francisco to sell fish directly from the boat. how did you establish your boat into such a floating fish market? >> well, you know, i always thought that it would be nice to be able to provide fresh fish to

the locals because most of the fish markets, you would have to do a large amount of volume in order to bring in enough fish to cover the overhead. when you start selling to the public that volume is much less so it makes it hard to make enough money. so being able to do this is really -- it's a big positive thing i think for the entire community. >> a very positive thing. as a third-generation fisherman joe as his friends call him has been trawling the california waters for sustainably caught seafood since an early age. since obtaining a permit to sell fish directly to the public he is able to serve fish at an affordable price. >> right now we're just selling what a lot of the markets like, flat fish and rock fish and what the public likes. so we have been working for many, many years and putting cameras in them. there's the ability to short fish and we have panels that we open and close so we target the different species of fish by adjusting the net. and then not only that but then

the net sort out the sizes which is really important. >> joe brings in a lot of fish, around 20,000 pounds per fishing trip to be exact. >> we had one day one time that we sold almost 18,000 pounds. >> it's incredible. >> i know, it's hard to imagine. >> but this wasn't always the case for joe. >> the markets that we have left in california, they're few and far between, and they really are restrictive. they'll let you fish for a couple months and shut you down. a lot of times it's rough weather and if you can't make your delivery you will lose your rotation. that's why there's hardly any boats left in california because of the market challenges. my boat was often sitting over here at the dock for years and i couldn't do anything with it because we had no market. the ability to go catch fish is fine, i had the permits, but you couldn't take them off your boat. >> that was until the port commission of san francisco rallied behind them and voted unanimously to approve a pilot program to allow the fish to be sold directly to consumers right

off their boats. >> the purpose of the program is to allow commercial fishers to sell their fish directly from their boats to the end consumer in a safe and orderly manner for the benefit of the overall fishing community at the port of san francisco. we have limited the program to certain types of fish such as salmon, halibut, tuna and rock fish. crab is restricted from this program because we did not want to interfere with the existing crab sales on taylor street and jefferson street. so this is not meant to favor one aspect of the fishing industry more than another. it's to basically to lift up the whole industry together. >> and if joe the program has been doing just that. >> it was almost breathtaking whenever i woke up one morning and i got my federal receiver, my first receivers license in the mail. and that gave me permission to actually take fish off my boat. once we started to be able to

sell, it opened things up a bit. because now that we have that federal permit and i was able to ppetition the city council and getting permission from san francisco to actually use the dock and to sell fish here, it was a big turning point. because we really didn't think or know that we'd get such a positive response from the public. and so we're getting thousands of people coming down here buying fish every week and so that's pretty cool. they like the fish so much that they take pictures of it when they cook it and they send us all of these pictures and then they ask us, you know, constantly for certain types of fish now. and when they come down here the one thing that they say is that they're so amazed that the fish is so fresh they could eat a little bit during the week and it's still fresh all week in the refrigerator. so that's really cool. >> the fish is very fresh and the price is super. i don't think that you can get it anywhere in the bay area. i can see it, and i can stir fry

it, wow, you can do anything you want. i just can say this is a good place to shop and you have a good experience. >> this program supports the strategic plan in terms of engagement, people being connected to the waterfront, and also economic vitality. because it's helping the fishermen to make ends meet. they have no guarantees in their businesses, not like some people, and we want to do everything that we can to help them to have a good and thriving business. >> how does it feel to be able to sell your fish locally kind of in the traditional way, like your grandfather probably did? >> when i was a kid and i used to work in my dad's fish market, a lot of the markets that we sell to now are second and third and fourth generation markets. so i remember as a kid putting their tags on the boxes of fish that we shipped out of monterey

and ship down to l.a. so it's kind of cool that we're still dealing with the same families. and this is probably about the only way that anyone can really survive in california is to sell your own fish. >> one of the advantages of this program is the department people that pull in the fish, they can find out where they caught it and find out more about the fisherman and that adds to their experience. the feedback from the fishers has been very good and the feedback from the customers have very good. and there's a lot of people coming to the wharf now that might not have done so. in fact, there's people that go through the neighboring restaurants that are going to eat fish inside but before they go in they see the action on the dock and they want to kind of look at what's happening on the boat before they go in and they have a meal. so it's generated some conversation down at the wharf and that's a good thing. >> as you can see by the line forming behind me getting ready to buy fish, the pilot program has been a huge success.

for more information visit sfsport.com. (♪) (♪) >> today's special guest is claudia dume. >> hi. today, my guest is claudia gorham. she's the deputy managing director of the real estate dri division at the city and county of san francisco, and she's my special guest. thank you for joining us.

>> thank you very much. >> i know that your department is the department for managing and renting properties, and also cleaning for the city. how has your department been preparing for the crisis? >> well, because our citizens are sheltering in place and our buildings are closed to the general public, a substantial amount of city staff and city departments are still open and operating and doing city businesses. so we still have to do the cleaning and engineering on the portfolio and things that need to be service. and the other thing is all our workers are disaster service workers, so we have been providing the emergency operations center with various staffing needs such as drivers of trucks and accounting staff to assist them in this crisis.

>> have you obtained additional space for the city to use during this crisis? >> yes. the crisis has actually required numerous transactions, and so we help basically the department of public health, the department of human services, and the department of homelessness determine where they can put the services that they need. so, for example, if they need a testing site or if they need a building -- a vacant building to put supplies or if they need to put some trucks, we will help them locate that office building or that property based on their factors that they need. we will then contact the landlord or the property owner of the space or the building owner decides they want, and then, we negotiate the terms that they need, whether it's a permit or a lease, we'll help the city attorney draft that agreement. >> nice.

so can you talk about how some of our iconic buildings, such address the palace of -- such as the palace of fine arts, has been repurposed during the pandemic? >> certainly. the city needs as much space as it can use during this pandemic, and the department had to relocate to moscone south convention center so that we could do social distancing as required by both the city and the state. we have hundreds and hundreds of staff people working on this covid-19 crisis. all of the department of public health and the departments of homelessness and human services, including several other hundred people, they need several different sites. they need testing centers, they need shelters for the homeless, those with the covid-19 virus,

those who need a place to stay after they get out of the hospital. so we've been assisting them with places to stay. you mentioned the palace of fine arts. it has over 100,000 square feet of space. it could it -- we were going to use it as a shelter, but now, we're going to use it for different needs. we're going to negotiate a different lease so that the city can use it for this crisis. we're using the bill graham civic auditorium and tfor the deployment of ambulances. the fire department needed additional supplies, so we're using it for that service. >> that's great. i also understand you have a staff of custodians,

electricians, janitors and other support workers. how are they helping the city? >> we could not be more thankful for our civic and engineering staff under our real estate division. they have been working 24-7 since this crisis began, not only doing their daily responsibilities to keep the public buildings open and operating for the city staff continuing to go into the office but also because once the crisis started, several memos came down as to additional cleanings and how to do disinfecting, and we have to do the c.d.c.s recommendation does. so not only do they do -- recommendations. so not only do they do their regular cleaning, they are also doing deep cleaning and disinfecting in places like the public safety building and the haul of justice. but they're also going in and doing a deep cleaning and

disinfecting after we had a suspected case or a confirmed case of a person having the coronavirus. so they're going in and doing this every night since this started. our workers are continuing as laborers to make the buildings safe and secure and maintained. and however we help or however we can help the e.o.c., we do that. >> well, thanks for coming on the show, claudia. i'd like to thank you and your entire team on behalf of all the residents of san francisco for all the work you continue to do. >> thank you very much. it's been a pleasure. >> that's it for this episode. we'll be back with another pandemic-related episode shortly. this is coping with covid-19. i'm chris mathers. thanks for watching.

the director of the department of human services, trent roer, the director of homelessness and housing, abigail stuart khan. our police chief bill scott. thank you so much for joining us here today. we're here to provide an update and answer questions during our virtual press conference. as of today, we have 1,954 reported covid-19 cases diagnosed in san francisco. and sadly with 35 people who have lost their lives. 71 people are currently hospitalized, and dr. colfax will continue to provide an update of where we are and why the need to continue the work we've done around sheltering in place is so important to continuing to maintain the curve. as a reminder, data sf.org/covid19 is our website so

that you can access data or information that you may need regarding the numbers that we know exist around those who have been diagnosed, but also information by zip code as well as the number of tests and other valuable information that we've done. now last week we announced the next steps for gradually reopening san francisco, and i know that people are anxious to see our city reopen. i'm anxious to see our city reopen. and this has been a very tough and challenging time for all of us. when you think about what we've all sacrificed, kids who are graduating from high school and will not be able to have a traditional graduation or attend prom, those parents who cannot go back to work because they have no child care access for their children, the people who are elderly who actually really

need comfort through family and friends, who are not able to visit with those folks that they love and care about the most, especially during this past mother's day. it continues to be a challenge, but especially with regards to our economy. our economy is suffering not just in san francisco but throughout the united states, and what we've tried to do here in san francisco is redirect resources and raise private dollars in order to get support in the hands of those who need it the most, and oftentimes people who may not qualify for any assistance whatsoever. the people who have been impacted the most include our small businesses, our small businesses that are really the backbone of our city, employing hundreds of thousands of people who, sadly, were laid off as the result of this crisis. when these businesses are not

open, they are not generating any money. they were already having a tough enough time as it was before the coronavirus pandemic with the high cost of commercial rents, with the laundry list of fees that are charged by the city that need to change, with a number of other taxes and other expenses, it oftentimes made it difficult for many of these small businesses to not only stay open in their existing storefront locations but also to maintain their staff. and it's gotten even worse as a result of this pandemic. and this is why i was so excited to announce just a step forward in reopening our economy, and that includes specific small businesses that in some cases, for example, our florist. they were allowed to deliver this mother's day, but when you think about their capacity even to do just that, to prepare the arrangements, to take in the payments, to also arrange for

delivery so that everyone is getting what they want when they want it, many florists were reached out to had to decline because they had so many orders and so -- they had a limited number of people who were able to assist them in delivering those orders. and this is why i'm also very excited that florists and bookstores, folks will be able to do both delivery and pick-up services. music and record stores, hobby, toy and game stores, home furnishing and home goods, cosmetic and beauty supplies. lord knows i need a new fresh supply of cosmetics. art supplies and musical instruments and supply stores, sewing, needlework and goods stores, pieced good stores -- okay, i don't know what that is, but nevertheless, we are opening a number of businesses for pick-up and delivery, and we're doing so gradually, and i want

to explain, because many have asked, well, what's the difference between what the governor, our governor newsom is proposing, which was that businesses would be opened this past friday, versus what san francisco is doing. and again, everything has -- and i've said this from the very beginning. we follow the advice of the public health officials here in our city and in our region as it relates to the data that we're seeing. as it relates to the number of cases, the number of hospitalizations, the number of deaths, and because of all of you who have followed these orders, san francisco is in a better place than most cities. but we're still not in a place where we are seeing a decline, and i think that's important to remember. the more access we provide people with where there is a contact with another human

being, the more the possibility that infections can spread. so the fact that we are offering a delivery and a pick-up service is a big step, and it is definitely a big risk, and we hope that the types of systems that we put into place in order to protect you as you're able to support and use these places as a resource that we will continue to see the curve not only flatten, but decline, and again it's up to the people in this city to continue to follow these orders, and i want to say again how much i appreciate what folks have continued to do, whether it's standing in line at grocery stores or pharmacies, at a safe distance. i noticed people are wearing their mask in those lines. i noticed that folks were just following the social distancing order, for the most part, in most parts of our city.

and this is gonna be the reason why we are able to lower the curve, but we also know that a number of challenges still exist. so as we allow small businesses to begin work around pick-up and delivery, we have to keep in mind that we know that the more people are in contact with the public, there's a higher probability that they could contract the virus. we've seen that in a more recent study done by ucsf, with the department of public health and a latino task force when they conducted in one of the second-densist census blocks in the mission community. they conducted an ongoing testing where they allowed anyone to test and discovered that although of the few thousand people that they tested, less than 2% were diagnosed with covid-19, and

many of those folks were in the workforce. they were still working at various locations. so we know that the probability that the more you're out there, the more you're in contact with other people, that's how the virus could spread, and this is why it's necessary for us to continue down this path. what's great about our city, again, is we've come a long way, and testing is so critical to our ability to allow more places to open. the more access people have to testing and also contact tracing, the better our ability to identify someone as quickly as possible, make sure that they are quarantined, but also track the other folks as they have been in contact with in order to just really stop things in their tracks. i want to say that here in the city what's great is, number one, we will provide testing for

anyone who is an essential worker, whether you have a symptom or not. i think it's important that we continue to get the word out regarding testing, and we will provide a test to any san franciscan who exhibits one of the symptoms, and if you have the need to be tested, please call 311. insurance is not a barrier to testing. we will test anyone, and secondly, your immigration status is not a -- should not be a barrier to testing. so you should not feel afraid to get tested, especially if you feel like you're exhibiting symptoms. our testing statistics over the past month have steadily grown. we have seen an increase in the number of tests, and as of today, over 36,000 covid-19 tests have been reported to dph, department of public health. and in the last week we've averaged over 1,000 tests per

day. and i just want to remind everyone that we were not always able to get that information from some of the private hospitals that are testing, and so this is a big, big thing. people wanted to know how many tests were being conducted, and this is really, really going to be helpful to helping us understand what's actually happening in san francisco based on the percentage of those who test positive and the number of tests we've been able to administer. and i really want to thank elaine forbes from the port. i also want to thank my policy director, andres powers, as well as the department of public health, for the work that you all are continuing to do in coordinating with the community to make sure that we have this very, very important information. the real progress is when we get to at least the ability to conduct 200 covid-19 tests per 100,000 residents. and again, this will help us get

to a place where we can begin to understand what's happening in our city, a way to address it and a way to gradually move san francisco in a direction of reopening. testing capacity is critical, and as a reminder, just because you are tested and you are negative does not mean that you are immune from contracting covid-19 after you discover that you are negative. or even in any other event. so i want to just reiterate how important it is to continue to wear your mask when appropriate and maintain social distancing. we also know that, you know, equity is important. making sure that communities that may not watch the news, that may not read the paper every day, that may not be in touch with what's happening with city government, that we do a better job of making sure that we outreach to those communities

with a number of trusted community-based organizations, as well as an incredible group of community volunteers, and i really want to thank the equity team and the team under cheryl davis. they have been incredible. these are people -- we have the office of racial equity, shackra smiley is the director there. we have had her and cheryl davis working hand in hand developing strategies from day one to make sure that as we have information we're communicating to folks in these communities, to the seniors in the bayview to many of our sadly homeless residents in the tenderloin to folks in various parts of the city that may not have access to what is actually going on. they have been able to distribute the work from chinatown and other communities, they have outreached to these communities on a regular basis,

not just distributing almost a million flyers with information and answering a number of questions from so many of these folks, again, who are not necessarily connected to the internet or connected to resources, but you know, providing masks, providing access to support for food or connecting them to other resources. the work that they have done around education on the coronavirus and education on around resources to help people weather this storm has been incredible, and i am grateful that they are also continuing to outreach as testing capacity continues the work continues. because we showed up in one community one day does not mean that we should not be going back to that community the next day and the next day and the next day. it includes not only individuals, but we have businesses where we have people who have limited english and may

not be completely familiar with the policies of the city. so it's the responsibility of this equity team to really reach out to many folks who are not always connected and who may not always have the resources to make sure they have the resources and that we provide them with clear direction around testing. because as we saw in the study in the mission, many of the people who are part of our workforce are the ones who are testing positive. so we want to make sure that many of those essential businesses that are open, as well as the delivery that's gonna start on may 18 for those other businesses, the delivery and the pick-up, that they know that their workers can get tested. so i want to appreciate the equity team and the work that they're doing, as well as appreciate the human rights commission here in san francisco. thank you for the work that you've done on outreach, and i

also just want to finally wrap it up with talking a little bit about the hotel rooms because we're preparing for a significant surge. we were also preparing for the opportunity to make sure that people who are -- our essential health care workers and our public safety officials who were concerned about the impacts on their families, that they had places to go where they were able to isolate themselves. because of how well the city has been doing in terms of maintaining the curve, we have not used as many of those hotel rooms as we anticipated, and the good news is we are able to repurpose those hotels. we've negotiated. trent roer and the department of human services and his team were able to renegotiate those contracts. so now those extra few hundred rooms that were supposed to be used for our front-line workers, and to be clear, we still have

access to rooms for our front-line health care workers and public safety officials. those rooms will be used for people who need to isolate if they are covid positive. and we're talking about people who live in our single-room occupancy hotels who, if they contract the virus, they can't necessarily social distance themself in an sro if they are living there with their family, or someone who's homeless, or someone who lives in a congregate living setting, or anyone who lives with family where there's not the ability for them to self-quarantine. we have the opportunity to extend our hotel capacity to provide this as a resource to the people of san francisco. so this is really great, and i think we've come a long way. the challenges around covid-19 still remain as real today as they have been since we announced the first case, and i just want to, again, thank the

public for doing everything you can to follow the social distancing orders as well as the masks. your commitment to this has been tremendous, and i'm sure continues to be very challenging. it's challenging for me. it's challenging for the team that's working every single day to keep all of us safe. those who are putting themselves on the line to make sure that the city continues to run in some capacity, they are the reasons why we're able to provide essential services, and so i just want to really continue to appreciate the team here at the emergency operations center, the people who are showing up every single day. the folks who are driving muni, the people, the police officers who are working their shifts, the paramedics and others who are out there doing their jobs every single day, and they don't

have always the luxury to socially distance themselves when they are trying to save someone's life. so so many people -- the grocery store clerks, the nurses, the doctors, the folks who are on the front lines. so many people who want to continue to make sure that they are there to support this city, to support you and to keep everyone safe, i want to, again, express my appreciation to each and every one of you and thank you to the people of san francisco for continuing to lead us down a path of safety and getting to a better point. one day i'm going to stand up here and hopefully make a great announcement about the fact that because of all of you we've been able to lower the curve. that day is not today, but just keep that in mind. that day is coming and we will be so grateful when it does. and with that, i'd like to truce the director of the department of public health, dr. greg

colfax. >> dr. grant colfax: good afternoon, i'm dr. grant colfax, director of the department of public health for the city and county of san francisco, and thank you, mayor breed, for your leadership during these very difficult and challenging times. it's been a week since the new health order took effect across san francisco and the bay area

region. as of today, there are 1954 san francisco residents with confirmed cases of covid-19, and, as the mayor mentioned, sadly a total of 35 san franciscans have died. i send my condolences to their loved ones, their friends and their community. of the people with confirmed covid-19 in san francisco, 156 are experienced homelessness, and one of those persons has unfortunately died. this is why we continue to prioritize vulnerable populations in our ongoing response, including people over 60 and those with underlying health conditions. these groups include people experiencing homelessness and those who live in congregate settings, such as shelters and

skilled nursing facilities and incarcerated settings. i point this out because even as we continue to move forward with plans to reopen, we must keep in mind that we are still -- that we are still in the midst of a pandemic. these are not normal times, and normal times will not return for some time. our recovery as a community will depend on our ability to protect the most vulnerable and to maintain a health system that can respond to continues outbreaks. and recovery is foremost on all our minds. so let's talk about the gradual path to the new normal. in the past week, we have begun to enjoy some loosening of restrictions with the reopening

of construction and increased outdoor activities and jobs. we have also announced, as the mayor announced, that if all goes well, some additional businesses can begin to offer curbside pick-up and takeout services as soon as a week from today. may 18. this includes bookstores, florists, art supply stores, toy stores and sewing stores. the last is particularly important for all those home mask makers out there. we will also be easing restrictions on medical care, such as non-essential surgeries and non-urgent ambulatory care visits. in all of these hopeful steps, we continue to put community

health first. that means that we will keep a close eye, as we have throughout this pandemic, a close eye on the data so that we can move forward or pause or even increase restrictions depending on the spread of the virus in the community. it also means that we must support businesses and other entities with clear guidelines so that they can operate as safely as possible for their workers and customers and our community as a whole. in that effort, the department of public health has issued new directives to businesses that are allowed to operate now, such as restaurants, delivery services and grocery stores. these directives will also apply to the expanding group of businesses that we anticipate

will be able to reopen to a limited capacity next week. and just to be very clear, the restaurants are operating under very limited capacity now. we are working with the mayor's office of economic and workforce development and economic recovery task force to reach out to businesses and make sure that they are informed about the guidelines and can prepare. here are five highlights of what businesses need to do to be safe in the current coronavirus environment. one, create a health and safety plan. two, ensure social distancing and face covering at work. three, provide the proper equipment and cleaning materials, including hand sanitizing and handwashing. four, protect customers by

marking off six-feet areas and cleaning high-touch surfaces and, five, ending self-service of food items and the handling of produce without purchasing it. some of these rules will change the way we currently shop and interact at work, or at least the way we used to shop and interact at work. this will take some adjustment, but believe me, they are worth it to keep everyone safe and allow for the economy to start to reopen. all of the new health directives are posted on the department of public health website, on our coronavirus page. and as we look forward to next monday, may 18, and the potential for some businesses to reopen safely for curbedside pick-up, we will also be keeping a close eye on the data.

specifically we will be looking at hospitalizations of covid-positive patients as our metric of whether to move forward with expanded curbside pick-up and takeout next week. this is a key metric. since april 6, our hospitalization numbers have ranged from 70 to 94 patients. the curve is indeed flat. and as the mayor mentioned, it is not decreasing substantially. we have not yet seen a substantial downward trend. today there are 71 people hospitalized in san francisco with covid-19. if we can keep within the range for the next week, we anticipate allowing the next group of businesses to reopen.

if we have a sustained increase in hospitalizations, we will evaluate where the new cases are coming from and shift our focus there. the reason is an increase in hospitalizati hospitalizations will tell us that the virus started gaining strength in our community about two weeks ago and that more people are starting to get very sick and require hospital care. and there are data to show when our behavior allows the virus to spread, we see spikes in infections. we are seeing spikes in infections in southern california commensurate with when the beaches became crowded. we have seen spikes of infections when people have gone to large gatherings at churches or birthday parties.

we must be vigilant and we must continue our social distancing, our wearing mask and our emphasis on testing. if indeed our rate of hospitalizations start to climb substantially, it may not be safe to continue to reopen. of course i hope -- i very much hope that that does not happen. and i am looking forward to picking up some books and gifts for myself. but we must proceed cautiously and maintain our gains. we will be giving more information this week about what the path to recovery will look like for san francisco. the community, our community, your community, has been so vigilant and so effective in

slowing down the spread of the virus. but you may well be asking: where is this all headed? what will the new normal be like? this is a complex question, and we are in uncharted territory. we are in discussions with other counties and municipalities, as well as the state, about that very topic. we are working hard at all levels of san francisco government and with community and business partners to develop our local road map. again, following the science, the data and the facts. for now i can emphasize that we will all have an important role to play. you can think of these roles in groups of three.

as community members, there are three key things you, your family, your friends can do. physical distancing, face covering and testing. testing if you are working outside your home. you should get tested, even if you do not have symptoms. as city and public health leaders, there are three critical things that we pledge to do. testing. we will continue to expand testing toward our goal of universal access. number two, outbreak detection. we will continue to build our public health reporting and monitoring systems to improve our ability to predict and respond to the virus more quickly. and three, contact tracing,

which includes case detection and contact investigation and support for isolation and quarantine to reduce exposure and spread of the virus. if we all do these things, the three things you can do, the three things that government and the health department will do, we can accomplish the following three things. decreased transmission. we have the power to reduce disease and death. we have that power. number two, increased safety and confidence. we will see more opening up of society and people knowing how to act in the safest ways possible. and number three, that will lead to economic recovery, a goal we

all share. together we can do this, and we must do this together for it to be successful. san francisco, i can't thank you enough for your perseverance, dedication and ongoing commitment to each other, your neighbors and the community. this city has always been a very special place, and it is even more so now. this pandemic, as difficult as it is, has truly brought out the best of us, and i thank you for that and the ongoing commitment to that as we move forward together. thank you.

scott will make some remarks, and i want to thank him for his incredible work and his team's efforts on the front lines in helping us manage this pandemic. chief scott? >> good afternoon. everyone, i'm chief bill scott of the san francisco police department, and as always, i want to first start off by expressing my immense gratitude to our mayor, london breed, and our director of public health,

dr. grant colfax for their outstanding leadership during this public health crisis. i'm gonna start my remarks by piggybacking on what dr. colfax just stated with my thanks to the residents of our city in san francisco. i want to expand on the fact that without the cooperation and voluntary compliance of the people of our city, we probably wouldn't be doing as well as we are, so thank you again for our support and your voluntary compliance. and that's not to say we don't have challenges, because we do, and i'll go into that in a minute, but i want to begin my remarks, again, with thanking those people that are, number one, following the public health orders. and number two, abiding by the law. and oftentimes it's my job as your chief of police to get up and -- in front of you and report statistics on people who

are breaking the law, but it's also very important to say thank you to the people who abide by the law, because without that, our society would be in chaos, and we do understand that and thank you for abiding by the law. on that note, you know, this weekend we anticipated that it would be a busy weekend as far as more people out, and we had a team of officers, along with our cadets and volunteers, and we weren't the only city department out, but i want to speak of what we did this weekend in that regard. we worked and focused on 25 parks, one of which was dolores park, and i know the mayor has made comments about dolores park, and we've had some challenges there with the number of people wanting to enjoy that beautiful park and enjoy the beautiful weather. and i want to again thank the people who enjoyed our parks across the city over the weekend. what we are seeing is people are getting out to get fresh air, to

get exercise, to enact -- or interact with another human being, and that's a good thing, but i want to go back and remind everybody of just the basics. we still need to have people keep that six feet of social distance if you are not with people who live in your household. we still need you to wear face coverings when you're out and you're doing your business. if you're not exercising or in the act of exercising, walking, jogging, bicycling, wear your face coverings. and we still need you all when you get home to wash your hands frequently to prevent the spread of this virus. now our team of volunteers and officers and cadets were out this weekend in the parks. we issued -- we gave out 68 -- or 58, i'm sorry, 58 face coverings or masks. there were over 100 informal admonishments or warnings to people who were enjoying the park, and i will say almost by

and large everybody who was warned informally came into compliance. so we want to thank you for that, and i want to thank you personally for that, because that is what makes this work. we'll continue to focus on those efforts. we know as this goes along and the further that we get into this we're now at nine weeks and going into our tenth week, people are anxious. people have anxiety. people want to get out and interact with other people. people want to do their business. businesses have sacrificed immensely, and we want to thank all those business owners that have sacrificed to make this work. i know as the health orders evolve and as we continue to go into different phases of this pandemic and attempt to reopen to get things back as much as we can to normal, there are a lot of questions. and with some, there is a lot of confusion, and that's why we follow the compliance model that

we follow of starting with education, and we will continue to do that. there were a lot of questions about how many cites we write or how many people were arrested. fortunately we have not had to arrested anybody, but we have issued some citations, but we start with education first, and that's really important now as we begin to go into additional phases and attempts to reopen. things change almost weekly, and it's really important that we do our part, your police department and your police officers, to educate the community for those, as the mayor mentioned and as dr. colfax mentioned, who may not be watching the news, who may not have access to internet or who may just not have heard that things have evolved. so that's why we start with education, and i must say by and large we have been very successful with this model, and we will continue to use this model of education, then warnings or admonishment, and for those folks that still

refuse to abide by the health orders, we do have the citation as a last resort. so that's been successful, and i'll get to kind of where we are on those numbers in a second. but again, thank you all for the cooperation and for making our city a model, as the mayor said. we are far better off than many other cities, and that's a good thing, and that's because of you all. so now i'll get to the statistics of those who have not followed the public health directives, and then i'll get into a little bit of our crime statistics for the week and for the year. as far as citations, we have issued a total of 23 citations since the initial public health order went into effect, and the breakdown is 13 businesses and 10 individuals. that 23 is an increase of one. the last time i reported we had 22, so that's an increase of one, and that additional citation was for a business.

we have had a total of 105 formal admonishments, and the formal admonishment, what i mean by that, the formal warnings are those warnings that's your last warning before we have to come back and issue a citation. and that breakdown is 58 businesses and 47 individuals. that's two higher than my last report of 103 in my last report. and i would like to say in addition to that, just like this weekend when our volunteers and our officers and our cadets were out in the park, they issued or had engagement with over 100 -- i think the number was about 138 individuals where those were informal warnings, where people were asked to either wear face covering or create some social distance, and they complied on the spot. so that's what we're seeing by and large, and for those individuals where we do have to go back after you've been warned, particularly formally

warned, we have issued citations, and we will continue to do that if we have to, but we hope we don't have to. as far as our crime statistics, i want to go into our week-to-week, which i have reported on consistently, and also our year-over-year crime statistics. overall the news is good, a 22.5 decrease in part one violent crimes over this past week, that means 16 fewer violent crimes. in terms of property crime, we had a 33.6 decrease in property crimes which equates to 186 fewer crimes for a total, part one, or serious crimes, that decrease was 32%. this is the week over the prior week. and that equates to 202 fewer crimes than the prior week. as far as our year-to-date crime statistics, we are at an 8.6

crime decrease in part one violent crime which is 166 crimes fewer than this time last year. property crime we're at a 13% decrease in property crime which equates to 2,125 fewer property crimes over this time last year. and our total part one crime decrease is at 12.4%, which equates to 2,291 fewer crimes than this time 2019. i will say, though, although we are pleased to have a decrease in crime, we do understand that part of the reason is that there are just fewer people out on the streets, fewer victims, fewer opportunities. and we want to remain vigilant when we do reopen to make sure that we can reopen without people being victimized. so we will have a presence, as we always have during this pandemic. we will continue that, and we'll make adjustments as we have to. i want to encourage everyone to

continue to report crime, because that's part of this analysis, is you have to report it for us to know about it and to respond to it. so call 911 for violent crimes. if it's a crime in progress, also call 911. if it's a non-violent property crime that's already occurred, you can call our non-emergency number at 415-553-0123. that's 415-553-0123. also you can call 311 or use our san francisco police department website at sanfranciscopolice.org to either request crime reports or report crimes that qualify for online reporting. we still have a report call-in center that we stood up during this pandemic that's been very effective, so makes us more efficient in allowing our public to report crimes, and that will be ongoing. lastly, i want to close with

just the basics. as dr. colfax has said, as our mayor has said, we need everybody -- if you must go out to conduct essential business or to just get exercise, please wear your face covering. maintain a distance of six feet between you and anybody who is not living in your household, and when you return home, or even if you don't return home, whenever you can, wash your hands frequently. these prevention efforts, although basic, will help prevent the spread of covid-19 and get us back to normal quicker. so please continue to cooperate and we'll continue to ask for your voluntary compliance, and we need to flatten the curve and beat this covid-19 virus. so i will thank you and, again, we appreciate everybody's support. and with that, i think i have a few questions and then we will open it up to the questions for everybody else.

>> we will begin questions for questions for chief scott. chief scott, this question is from dan kerman. have any businesses defied the current order and reopened on friday and over the weekend? if so, will this be allowed to continue? >> over the weekend we did not have any -- we had one additional citation, as i stated. we didn't -- look, by and large, we are seeing really good compliance with our business community. we have thousands of businesses in this city, so it's not to say that every single business has been checked, but we said from day one, on march 17, when we started this, that we would be proactive in going out to ensure that businesses were doing what was asked of them, and by and large that has happened. on those occasions where we had to go back and we had 13 examples of such, we have cited. after the warning has been given, and some of those 13 were cited on the first attempt after

an inordinate amount of education was out in the public realm. so the answer to the question, though, is by and large we are seeing compliance, and we hope to continue that, and that's why i get up here and ask for voluntary compliance, and that's why we give warnings. that's why we educate, and that's why we have this progressive pathway, to make sure we do this in a fair and just manner, but we need to get it done, and we need to make sure that people are compliant. >> the next question is from kathy novak. during the shelter-in-place order, are any exceptions being made to the law requiring stores in san francisco to accept cash? >> the ordnance about accepting cash is still active. it has not been suspended. i want to remind everybody what the spirit of this is. it's about equity. not everybody has a credit card or an atm card, and people need essential services, and this is about equity, making sure that everybody in our city has access to what they need.

so that is the spirit of this. so if there are people who are not abiding by that, the proper venue is to call our non-emergency line if you need a police officer to help you resolve that. that's 415-553-0123. >> okay, the next questions are for dr. grant colfax, san francisco department of public health.

dr. colfax, the first question is from abc 7 news. should san franciscans be concerned about people traveling to the city or the bay area from other counties and states that are less restrictive? >> dr. grant colfax: so i think right now travel, it's best for people to limit their travel to essential travel. this is not the time to go on a trip for recreation, a vacation, even to visit family and friends. i think it's very important per my prior comments that we focus on focusing on the stay-at-home

order, wearing face coverings, and social distancing. i think that with regard to people coming in to san francisco from other areas, it's also very important that we as a community create norms where the facial covering, the social distancing is encouraged and enforced. so i would really ensure that we do this, whether people are in san francisco as part of their residency, whether they're coming in to work in san francisco, or if people are coming to travel here, that again, the social distancing, the facial mask are very important. and again, to limit travel to all but the most essential travel. >> is the department of public health monitoring people from coming outside the area? >> so what we are monitoring is

looking at the overall activity of the area, how much movement there is in terms of cellphone activity, cars and so forth. and what's really quite important about this is that it clearly shows that before we put more of these restrictions in place, the more people moved around, the more the virus was transmitted, and we see basically a clear correlation between activity in the public realms with transmission of the virus, which is why it's so important as we gradually consider and put in guidelines around reopening that we are doing it in a very safe way, again with social distancing, with facial coverings, and really following the data and monitoring the activity in the city, as well as, of course, the very important metrics around the number of cases and the number of cases hospitalized in the city. >> the next question is from

ctvu. the trump administration is calling for testing of people residing and working in nursing homes. how are san francisco's efforts progressing? >> well, we're way ahead of the trump administration. we require -- are now requiring that nursing homes test staff and residents in nursing homes on a routine basis. that health order was issued last week, and we last week started testing staff and residents at laguna honda hospital, and this will be extended to nursing homes across the city. very important, this is routine testing, testing people regardless of symptoms on a regular basis. testing in the case of people having symptoms, whether staff or residents will also of course continue. >> will the department of public health test private facilities to monitor covid-19 for

infection? >> the nursing home facilities? >> yes. >> so the nursing home facilities in the city, with the exception of laguna honda, which is under direct auspices of the health department, the nursing homes are regulated and overseen by the state. right now our focus is on doing -- conducting good public health interventions, and we are supporting those facilities going forward in scaling up their testing capacity. so the health department will be working very closely with those private homes and with the state to ensure that there are testing protocols made available, that in certain instances that materials and technical assistance is provided. and the intent is that over time these facilities will be able to conduct testing either on their own or through a third party or with ongoing assistance by the

health department in a way that is sustainable and reinforceable. >> last question is from mission local. julie and mark. how much has homeless cases risen since last week? how many are severe or requiring hospitalization? >> so on the number of people diagnosed with covid-19, of the 1,954 positive cases in the city, and this is with the thousands of tests that have been done, 8% or 156 people report experience homelessness. this was defined as -- this is defined as self-reporting homelessness, being included in a shelter outbreak or indicating homelessness or a shelter location as matched by health department records. and as i said, unfortunately one person who experienced homelessness has died of