thank you. would you kindly read the admonition, please. >> clerk: due to the covid-19 public health emergency and given the public health recommendations issued by the san francisco department of public health mayor breed has lifted restrictions on public teleconference. today, we're participating via teleconference. this will ensure the safety for the board, for the staff, and members of the public. this technology allows us to hold these meetings via teleconference, it may not employ as seamless as we'd like it to be. a reminder to board members and staff to mute themselves while not providing comment to minimize background noise.

>> thank you very much. role call, please. >> clerk: [roll call] thank you. we do have a quorum. >> president: call the next item, please. >> clerk: item number two, communication. through the covid-19 health emergency and to protect board members, city employees, and the public, san francisco employees retirement system is closed. however, members will be participating in the meeting

remotely. this precaution is taken pursuant to local state orders and directives. board members will attend the meeting through video conference and participate in the meeting to the same extent as if they were physically present. public comment will be available on each item on this agenda. each speaker will be allowed two minutes to speak. comments or opportunities to speak during the public comment period are available via phone by calling (415) 655-0001 access code 14666804497 and then pound and pound again. when connected, you will hear the meeting discussions, you will be muted and in listening mode only. when your item of interest comes up, press star three to be added to the speaker line. best practices are to call from a quiet location.

speak clearly and slowly and turn down your tv or radio. >> president: okay. at this time, we'll take l public comment. >> clerk: thank you. callers if you have not already done so, please press star three to be added to the queue. for those already on hold, please continue to wait until the system indicates you have been unmuted. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> secretary: thank you. hearing no calls, public comment is closed. >> president: next item. >> secretary: item number three, action item. review and approval of the november 2021 board resolution to continue to meet remotely for at least 30 days pursuant to california government code section 54953e. >> commissioners, as we presented to the board last

month to approve a continuing remote access for board members to participate in board meetings so that we can hold this meeting as well as any other board meetings for the next 30 days remotely. again, based on the current health orders and executive orders that are in place at the state and at the local level. i'd be happy to answer any questions. >> president: commissioners? any questions. all right. is there any discussion?

madam secretary, are there any public callers. >> secretary: thank you. please wait until the system indicates that you have been unmuted. moderators, do we have any callerses on the line? >> madam secretary, there are no callers on the line. >> thank you very much, role call vote, please. >> secretary: [roll call] thank you, we do have 5 ayes.

motion passes. >> president: okay. at this time, we're going to readjust the closed session, we'll take 4b first and then 8 andc at this time, is there any public comment regarding the closed session? >> secretary: callers, please press star three to be added to the queue. moderator, do we have any callers on the line? >> secretary: thank you. hearing no callers, public comment is closed. >> president: thank you. now we'll go to closed session and have everybody move to that needs to be in 4b. >> 4b is the investment? >> president:

>> we will resume open session of the november 10, 2021 meeting at this time. roll call. commissioner bridges. commissioner bridges, we are taking roll call. not arrived yet. commissioner driscoll. >> here. >> commissioner gandhi. absent. commissioner heldfond. >> here. >> commissioner safai. >> here. >> president casciato. >> here. >> we have a quorum. >> we are back in open session. i will entertain a motion to

disclose or not. >> move we do not disclose. commissioner heldfond. >> is there a second? >> second safai. >> okay. public comment, please. >> members of the public who wish to provide public comment call 415-655-0001, access code (146)680-4497. pound and pound again. if you have not done so press star 3 to speak. the system prompt will indicate you have raised your hand. wait until you are unmuted to begin your comments. state your name. you have two minutes to provide comments. do we have callers on the line? >> madam secretary, there is one caller on the line. >> thank you, please state your

name. your two minutes begin when you speak. >> hello. i am richard halstead calling on behalf of my wife who retired as a nurse at san francisco general hospital and son developmentally disabled. will he end up homeless and hungry? how will he access healthcare and basic needs. a portion of my wife's pension reduced to my son. the system requirement that payments be made directly to him not to a special needs trust severely under mines the effectiveness of the benefit. survivor immunity by adults with disabilities can cause

disastrous consequences for individuals that receive such benefits as supplemental security income, medical and low income section 8 housing with this monthly income can result in complete loss of benefits that can be barrier to affordable healthcare, community support services and much more. many public retirement systems including teachers, university of california and defence accounting service changed to designate payment of survivor immunity to subpoena mental needs trust rather than to child. on behalf of my son and other individuals affected i implore you to bring the policy in line with other retirement systems. you will be ensuring your beneficiaries receive equal treatment. thank you very much for your consideration. i would hope you agendize this

for an upcoming meeting. thank you very much. >> roll call, please. >> commissioner bridges. >> can you hear me? we are taking roll. >> commissioner bridges. >> here. commissioner gandhi. >> aye. >> commissioner heldfond. >> no. >> commissioner safai. >> here. >> this is a roll call vote. commissioner stansbury absent. president casciato. >> aye. >> we have six eyes. motion passes. >> at this time i will call item 10 out of order.

>> update on strategies to address climate risk on the sfers portfolio oil and gas sector. >> i make a motion to continue for one month, please. >> thank you. motion to continue the item. can i hear a second. >> second. >> seconded by commissioner gandhi. any discussion from the board members? public comment, please. >> thank you. callers press star 3 to be added the queue. do we have caller on the line? >> there are no callers on the line. >> thank you. no calls, public comment is closed. >> roll call vote, please. >> commissioner bridges.

>> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> commissioner safai. >> aye. >> president casciato. >> aye. >> we have six ayes. motion passes. >> thank you. >> which item? >> back to the calendar. >> 5 general public comment. >> we receive an e-mail from john stenson. our pension fund is more than $300 million over funded use this money to purchase the san francisco office building because if you don't you will lose it in the upcoming market

crash. san francisco office building will be a much better investment than hedge funds. if you want to attract top investment talent they want to work out of an office not a cubicle. trump will need cash next year. you can buy his 33% interest in bank of america building on california street. with best regards john stenson 46 year member. that is the only e-mail public comment we receive. >> press star 3 to be added the queue. if you are on hold wait until the system indicates you are unmuted. are there any caller on the line? >> madam secretary, no callers on the line. >> thank you. public comment is closed. president casciato. >> the deferred -- item 6.

>> discussion item. san francisco deferred compensation plan quarterly report. q3 of 21. >> thank you. can you hear me okay? >> yes. go ahead. >> good afternoon, commissioners. thank you so much for being here and thank you president casciato. today i will tell you why the deferred compensation plan matters. i come from a line of public servants. mother counselor at city college. ph.d. for 30 and aunt works as a nurse at the va. i come from a line of physicians my sisters and cardiologist uncles and not my extended

family. when i chose my step in the career i strucked with pursuing medicine or life of public service. i spoke to people about this. many would say, wow, city job, take that one. give me some salary potential later and you willry it back in the golden years. this would be true for some. i am not true for the majority or for those retiring today. in fact, we recently worked with on actuary. 90% of the employees receive only 45% of salary in pension benefits. rule of thumb you need 80% of income to live comfortably in retirement. this is inching upward with the cost of living and healthcare increasing. you would prefer to live on 80% rather than 45% of salary.

the plan matters. it fills the gap. employees need to comment the pension benefits to live comfortably in retirement. this is designed to deliver an exceptional program with empowering education and add vance tools to help employees reach their financial retirement goals. this is their mission statement and guiding light for the initiative and effort. they take the jobs seriously. as you can see from the attached report we had another big quarter. i am delighted to show highlights of the plan. investment, marketing, operations and the record keep person. you have probably noticed the market movements this year. to start as our investment consulttant to discuss the recent performance numbers with the board. feel free to share your screen.

>> thank you very much. i hope you can hear me and see my screen. thank you everyone. good afternoon. i am not going to spend too much time. this isn't our normal semi-annual performance but we thought we would highlight a few things using your quarterly dashboard, if you will. as you are familiar you can see the fund names on the left-hand side. balances of the assets. at the bottom are the total assets of the plan increased to $4.8 billion as of september 31st. make assessments of performance for the funds for the trailing one quarter ended september 30th

and the year-to-date performance. out of the eight active fundings i am pleased to report six of eight outperformed and seven out of eight at least matched the index for year-to-date. strong returns, particularly in year-to-date column with the largest performance from the real estate fund up 21%. each individual fund managers continues to offer a very diversified approach within their style and something we pay close attention to. in the funds that had been challenged in previous year when growth was very much in favor have bounced back nicely in the pockets when value has come back in favor. particularly the after equity fund in some of the value managers within international in

the small mid cap fund. the necessary result is shown in the target date fundings on the bottom portion of the page. you can see from the most conservative retirement to the 2060 buy fund with the most equity exposure. from a big picture standpoint on the year to date basis all funds are outperforming respective benchmarks. strong relative results. most importantly, very strong absolute results for participants with a longer dated funds returning close to 12% on a year-to-date basis. i will stop there. you can certainly peruse the rest at your leisure. i will turn it back over. >> thank you, greg. if there are no more investment

questions we will move to marketing. as you can see this has been a rather intense period with targeted outreach, outbound calls and national retirement security campaign. you can see the portfolio. i will highlight a couple areas. another successful e-mail campaign with exceptional conversion rate during the first and third week of october. the average conversion rate is 2.5% above all industries. for government it is a little higher at 3.5. we beat those at over 5% and sometimes 5.5%. we continued the webinars and saw record attendance p.100% found them helpful and convenient. it is on page 4 of the memo.

we launched the raffle game plan and play. it generated a lot of traffic. 100 won a stainless steel travel mug and weekly prize. two in hsa, a newer partnership and other own winner allo martin. overall this campaign was the most successful and we have receive over 150 enrollments and 800 contribution increases in october alone. we also did two direct mails over this quarter. this did very well. for context. forbes did an article how direct mail is still effective 4.4% response rate compared to less than a half percentage for e-mail. when you compare those numbers

to the campaign of nearly 14% taking action the numbers should speak for themselves. i want to extend my deepest appreciation to the marketing consultant, five counselors and our dedicated staff for spearheading these accelerated efforts this past quarter. operations. if you haven't heard yet. the office is open for in person appointments. on tuesday and thursday from 8:00 a.m. to 5:00 p.m. the hours could change. staff has been coming into the office at least two days each week since november 1st. according to city policy first in person pointment was on november 2. we have to live with coronavirus we have to meet participants in desired communication channel when it is safe, of course.

the office has receive around 10 appointments since we re-opened. it appears participantses an feeling normalcy going forward. thanks to tony chu for conducting these meetings. last but not least is the record keeper. you probably heard of the great resignation and the city has been experiencing an unprecedented number of retirements as the pandemic caused many to push up retirement to enjoy life earlier. as such we introduced some marketing for those nearing retirement on the transactional website to guide them on the path to retirement. staff attended the proprietary initiative and goals to align with the past. i asked brian to share with you today a plan review that we have

designed together over the last few months. this replaces the quarterly statistics you have been receiving and is an extensive look to the nuts and bolts what we do and the scale in which our team, which is small but mighty is responsible for. he will spent 15 minutes with this presentation. please share your screen. >> my pleasure. can you hear me okay? great. if i could be granted access to share my screen. i will go ahead and do that. sharing your screen. very good. you should be seeing a screen that says quarterly plan review. can you see that okay? i will get started. there is a lot of information here.

i will try to summarize and highlight the key information that is presented within. beginning with executive summary. what we have seen really over the last couple years since we began the partnership. the plan has grown. you can see we measure growth with number of plan participants with any individual with an account balance in the plan regardless of employment status. this information is through september 30th. we have over 32700 in total. there was a decrease in 2020 with the information just referenced in terms of hiring trends in the city and elsewhere. that overall asset growth is growing steadily since the end of the first quarter of 2020.

reflecting the increase in market valuations of assets overall as well as general positive net cash flow. in other words, more money flowed into the plan than out of the plan overall. for example we look at the one quarter. net cash was negative this quarter. it fluctuates from quarter to quarter. since 2019 overall we have seen $31 million more come into the plan than leave the plan. we break down -- i won't spend too much time on asset analysis. she did a nice job. overall you can see the majority of assets are in the stable value fund, large cap equity as well as target date funds.

detailed breakdown is provided here on slide 9. this information was in earlier presentation. we look at how plan participants allocate investments. one way to look at that is to see those with all money in single fund and target date funds are designed to be single investment. we look at the other funds. we see over 4,000 participants with stable value funds. that might be an opportunity to educate on diversification. i will move on to the next section. participation and contribution analysis. if there is any questions feel free to comment. i will move along. some interesting information. you may know plan participants have the opportunity to save in the plan utilizing a fixed

dollar amount per paycheck. for example, an individual can put in $500 per paycheck or the opportunity to do so as percentage of pay. i want 3% of my income to go into the plan. historically the dollar per pay is more popular in the graph on the left. three-quarters of plan participants utilize dollar per pay. 80% of new employees take advantage of the percentage per pay. there is benefit to that for new employees, young employees, in that as income grows those contributions can grow with that. there is benefit to that option. despite the fact we have seen fluctuation in perhaps hiring and increase in retiring in plan, we have seen overall participation increase. eligible population, number of

city employees eligible for the plan has decreased over the past couple years to a low point of 35403. we realized the high point in the number of participants, number of employees who participated in the plan. this is overall driven out participation rate up over this time acceding 60% for all eligible city employees. our hope is that as the local counselors return back out and meet more people in person going forward that will help us further enable and encourage people to enroll in the plan going forward. that is one of our key plan goals. the next several slides outline some of the volumes of distributions out of the plan both by month and quarter.

as well as the loan activity that you can see by quarter as well. one of the things i will highlight we do a breakdown of those out of the plan where they go to. we see here some of the retail shops charles schwab, edward jones, wealth managers to roll money out of the plan. we are tracking and we can see over time with your plan as well as others. moving quickly through participant services. we look at how your plan participants engage with the plan and your service provider. 2020 was a very busy period for our call center staff, given the covid pandemic, volatility in the markets.

2021 is more stable and that is in the decrease in the number of calls and we have done a good job of meeting that service demand in terms of staying within our 30 second benchmark of answering and realizing high customer satisfaction. it is something we track very closely month-to-month. next couple slides show ways of illustrating those volumes and average speed of answer metrics. the other area that i will focus on is the local counselor activity. this slide 27 does a pretty good job illustrating the life cycle of our local activity since the transition of the plan to voya. you can see during the initial first several months reflect increase in activity as we build out our team, starting to

penetrate the city and build relationship there. the covid pandemic had a immediate effect on the ability to meet with people in person. we quickly were able to pivot and offer the virtual one-on-one sessions and replace in-person meetings with webinars to pick up activity through the rest of our relationship. the activity over the last month, october, national retirement security month where those activities we talked about really resulted in good spike of activity there. to find creative ways to meet with plan participants where they are and by what means are available to us. we look to continue to adjust as we move forward. >> the next several slides i will refer to as digital engagement.

we will look at how your plan participants engage with our digital properties, going on line, tracking what actions they are taking as a result of that. what effect that has on behavior in terms of savings and projected retirement income. here we can see year-to-date through september 30th. 17,000 plan participants logged into the website. of those we track how many engaged, took action, utilized loan tools and viewed personal video we put out there alongside quarterly statements. to take a deeper dive, as an example, i mentioned that we can track how many people have engaged or interacted with the thetools. this is an illustration of

projection of future retirement monthly income based on information we have for the plan participants provide. when they log in we prompt them to enter in salary to do the projection. we know how much they saved in 457. how much they are currently saving. we also allow individuals to enter other retirement savings they may have. pension income, brokerage account or some other savings. based on that we can do calculation for them of what that future retirement income is against the goal they can personalize. they have a goal of trying to reach 70 or 80% of current income in retirement we can show how they are progressing against that goal. you can see here is an example. 7% of those interacted with these tools took some action. in general, in overall we see

those who take action tend the increase savings in terms of percentages or in dollars per paycheck. we can do a breakdown snap shop overall participant base looking at this information by gender, age, we can look at savings rates and balances by each demographic, both in terms of percentage savings rates as well as dollar savings rates. we can see and realize the savings trend differences as those get closer to retirement they tends to be more likely to want to save more and have ability to save more at that point. importantly to us, we also track

what percentage of the population are engaging with us. we think engagement is important. those who engage with us tend to save more. my apologies. can you hear me okay? >> i knocked my headphones out of my phone. sorry about that. we can see here about 60% of plan participants engaged by the web, mobile app or the phone. we can also see the demographic break down. those younger tend to more heavily concentrate online or through the mobilian.

closer to retirement have more complex questions or needs pick up the phone to speak to us. we can track that. it helps understand the demographic groups to support them properly. i mentioned earlier how we calculate income. what we refer to as income replacement based on the information we have. we tends to have a benchmark of looking for participants to generate at least 70% of the income. each person can customize that as an individual's choice in terms of their goals. we can track those individuals who are entering outside assets versus those who haven't seeing how that income replacement is benefited by entering outside information. we can track this over time as we look to engage with with plan

participants to select pension information on the tools we rolled out last year for a more holistic view of what that future income looks like. lastly, we can track this engagement over time. also see how that engagement results in improved or higher average income replacement as well as overall higher savings rates. i covered quite a bit of information fairly quickly. i will stop and take a breath and entertain any questions or comments from the committee. >> i know we were short on time so we moved quickly. if you could go to the beginning of the presentation where we showed allocation of investments. i want to share the evolution of investments over the last few

years. it is that piechart with stable value. when brine mentioned to you that stable value was a large portion 20%. i wanted the board to know we have drastically reduced that number over the years. in fact, when i came on board, i think it was almost 35% allocated to stableval law. there are great that is about stable value. it is guaranteed. it is conservative. it is like hiding cash under the mattress. not forward looking. we have been scaling back by promoting targeted funds, making changes to investment to better meet needs of investors who choose those funds. i wanted to share that with the board. [please stand by.]

. >> president: it's going to be your birthday, it's going to be your birth year. you know, you're going to get other questions. is there some counseling about it because these other groups are coming in and pitching very

strongly. >> yeah. i can say a little bit and we can chime in on acquisition efforts and mr. merit can talk to any efforts we've put in to stop some of these gaps. i would just say these are sort of the big sigh. we color coordinated the numbers. so we color coordinated the numbers -- not the numbers, the firm so you can see the movement of the chairs and usually it's the same five or ten which you've seen here. you know, i think schwab has always been the largest grabber and someone who previously worked at schwab, i know all the acquisition efforts. and we would have these campaigns where if you roll

over your old 401ks will give you $2,500 and as people are looking for pays to consolidate their 401k plans. we would love them to consolidate with us as we work hard to promote rollovers into the plan. but i have to say that these firms that you see here, they are going in full force. these are people who have existing clients. like, i don't know anybody who doesn't have a charles schwab account. and vanguard, a lot of people have vanguard funds in their ira and fidelity is enough said. so we can do our best i think to continue to track these and we do our best by launching other things, like we launched managed accounts. managed accounts recently, we did specifically to target hopefully those nearing retirement or in retirement to

give them a draw down strategy. i suspect that a lot of these rollovers are results, you know, of our retirees moving the money out and consolidating. our hope is that the introduction of these types of white glove service will give retirees some choice, you know, in staying with us knowing that somebody would help them draw down their assets. i think one of the reasons why we chose managed accounts too was they offered a service. i think it was incomplex. i'll let mr. mayor talk about that. greg, do you have any comments about the investment managers and then we can ask mr. mayor about efforts. >> sure. the only additional observation i would make, is when you look at the universe, fidelity is the largest. and their business model is

very much on what ms. julie justin was focused on is rollovers. that's when a participant's balance is the largest. they're an asset manager, you know, and we've seen in power just for provincial, there's a lot of m.m. a. in consolidation and a lot of that is all driven on the business model of rollover assets. you've built a grass mouse trap. you've built institutional pricing investment vehicles participants would not have access to outside. so i think you're doing a great job as a plan. it continues to highlight the need for participants to be educated on the great bells and whistles that you offer that they're going to be hard pressed to build outside the plan in the rollover situation and i think that's the evolution of the industry we've

seen so far. >> if you'd like, i can speak to a few comments there as well. this is kind of an industry challenge. clients want to try to retain their participants. they've put these great plans in place and that's one of the reasons that we actually offer, you know, rolled out the new retiree resource stage. that's something we introduced to all of our clients just trying to put on the forefront more education about what their options are. we hear time and time again from individuals who take the money out of their plan because they were misunderstood or misinformed and thought they had to take the money out of the plan. part of this education when you put that on the forefront. some of our local counselors actively talked to planned participants about it. to proactively reach out to

make sure that they know we're here for them and that they had the opportunity to keep their assets in the plan and talk to them about what their options are which includes not only keeping assets in the plan, but also the ability to draw income out of the plan whether it's the managed account income plus solution offered before. so as an organization, we are continuing to try to find creative ways of keeping down the forefront as well as the plan. >> actually, you hit it exactly on what motivated my question was i did get a call from one retiree and she said, i'm turning 72, and i have to take all my money out. i said you've got to call the plan. and she said i've been on the website trying to figure out if i have to take all my money out at 72. so i think maybe that would be

something that says, you know. there is confusion and the change from 70 to 72. i told her make an appointment without a counselor, that kind of stuff, but that was exactly what was her belief. so she wanted to know what should i do? where should i go with it, you know. so that's i think a question and we're going to have a lot more of those in the next -- with quite a number of retirees that have moved up their retirements. so there's that. >> okay. thank you very much. any other commissioners who have any other questions or feedback or comments? >> commissioner: question. is this chart for roll-outs or roll-ins or both? >> roll-outs. >> yeah. >> okay.

that's what i was going to ask. okay. thank you. >> only roll-outs. >> yeah, this is the money going out. >> okay. thank you. thank you very much. >> thank you. >> yeah. anything further, diane? >> no. the only thing that i would just touch on too is the fact that we had about a 55% to 60% participation rate and we're always driving to increase those numbers and right now we have a couple items in flight in hopes to inch that number forward, you know, whether or not we could actually get auto-enrollment off the ground. that's by far the most successful way for us to increase enrollment and auto enrollment doesn't mean forever enrollment, it just means enrollment and they can opt out if they'd like to. one of the things is that at least everybody knows about it. if they choose to not want to

participate, that can be their choice, but i want them to actually have that option. when i first came to the city, i remember doing meetings for departments to better understand their retirement needs and i remember some librarians would come to me and say i didn't know about the plan. i'm 55 now, i wish i knew about this earlier. and they would know enough that compounding and the value of that is something they wish they started earlier. so i'm pleased with the way we've modernized the plan, by making things virtual and reaching a younger audience and you can see by the feedback, the younger people are listening. and i think i'll stop there for giving us a time to talk through the plan. >> you said increase. does that increase year over year. i'm looking back at your numbers. that's a big increase year over

year. >> yes. thank you. brian, do you want to talk about that. obviously, you see we've been very busy and we also know that there's been some retirements as well with the great resignation. and i know that the city is still hiring, but, you know, brian, if you want to talk a little bit out to the success of our efforts. >> yes, that's important. i can see the difference in the year to year numbers. >> thank you. >> yeah. i'd be happy to. and we have a few things in place. certainly, that's early. once our team ramped up and we're able to get further penetration into the plan, i think the other maybe new enhancement that we're starting to realize is that the online enrollment capabilities that didn't exist there before. so historically, the plan required paperwork. we now have the ability for individuals to go directly online even before we get information from them. so they can go online, initiate their enrollment, but that's

expedited the ability for someone to get into the plans. i think there's a couple of different factors in place here that have helped move some of those numbers. i think we have even loftier goals that we've realized so far, but i think that's contributed to the increase and we're committed to continue to drive that forward. i guess the other thing that is contributing to essentially the recent spike in the numbers is the campaigns and to adjust and mention earlier. we saw, you know, several hundred increases in new enrollments from the direct marketing campaign in estimates and security month combined and so that's obviously contributed to the increase in participation as well. >> and, if i could just add, you know, that number 60% or 60.6% is a number i feel the board should be proud of.

the fact we are 100% voluntary plan, it's truly a high percentage, truly a high percentage. and i think brian and greg could talk to that. i know in talking to some of the other plans, it's not nearly as high. when you think about all the deferrells. it's that residual income after pension, after health care. after all the other things. after social security, you know. and so, there's just so many things and when you have about, you know, 28% of your salary already gone, that residual amount is what our participants put into the plan and that is why we work so hard and why we are so dedicated to what we do. >> yeah.

>> thank you. public comment please. >> thank you, callers. if you've not already done so, please press star three to be added to the queue. >> madam secretary, there are no callers on the line. >> secretary: thank you. hearing no calls, public comment is closed. >> president: next item, please. >> secretary: item number seven, action item. approval of the minutes of the 2021 retirement board meeting. >> president: moved by commissioner driscoll. >> commissioner: seconded, mr. president. >> president: seconded by commissioner bridges. any comments? public comment, please. >> secretary: thank you. reminder, callers, press star three to be added to the queue. moderator, do we have any callers? >> madam secretary, there are no callers on the line.

>> secretary: thank you. hearing no calls, public comment is closed. mr. president. >> reporter: roll call, please. >> secretary: [roll call] thank you, we have five ayes. motion passes. >> president: next item, please. >> secretary: item number eight, action item. consent calendar. >> commissioner: i move acceptance of the consent calendar. >> president: moved the by

commissioner driscoll. is there a second? okay. commissioner bridges seconds. any commissioners? public comment? >> secretary: moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> secretary: thank you. hearing no calls, public comment is closed. mr. president. >> president: okay. roll call vote, please. >> secretary: [roll call] thank you. we have five ayes. motion passes. >> president: yes. thank you. next item, please.

the. >> secretary: item number nine, discussion item. annual, environmental, social, govern answer, est platform update. >> good afternoon, commissioners. i'll give a brief introduction to the next five items. i'll set the stage for the afternoon, make one introduction, and then offer some highlights for our esg program. as has been our policy over the last couple of years, andrew and adrienne will provide a local update to include a platform update focusing on our three pillars esg management and collaboration and communication. we'll also touch upon our climate action plan and update on our utilities sector frame work. that update will then be followed by action items to recommendations to changes regarding the different sectors

and these include tobacco, firearms, and coal. before i get started, i do want to introduce adrienne von consult who hasn't had an opportunity to present to the board that often. she's a san francisco native. she joins after the role in the carbon lighthouse association where she led research on u.s. sustainable agricultural and carbon. she has a degree or bachelor's in political science and in her spare time getting her mba at u.k. berkeley's school of business. andrew is not necessarily one to promote him, but we've made astonishing progress over the last three years in terms of each of the three pillars of our esg program. in terms of active ownership, we had no engagement with

companies four years ago. today, in this past year, we participated and led a number of engagements through the climate action 100 with the likes of kyle phillips and our gm. we significantly expanded our gender racial ethnic and lgbtq plus diversity efforts joining with 17 companies. in terms of esg investment minute, all investment recommendations across all asset classes now include detailed esg due diligence processes complies of questionaires. and we've developed esg score cards for each asset class and every one of our large relationships. we've participated in a variety of advisory groups including

those with p.r.i. series. we've worked with the likes of msdi and the development of new toolses around private equity. spurs has become a leader in the esg movement and she'd be very proud of what we've developeded over the last two years. you wouldn't say that about yourself, henry, so i thought i'd say it for you. i'll turn it over to andrew and adrienne to provide some of the updates. >> thank you, kirt. appreciate that intro. good afternoon, commissioners. very pleased to be presenting our annual esg update today. as kirt said, we'll sort of do this in two parts. i'll go through an overview of the esg platform and what we've worked on through 2021 thus far and then i'll also present our climate action plan which is attached to this item, item nine here.

then, we'll pass to the voting items, before voting items. adrienne's going to walk through those for our investment restrictions on tobacco, firearms, and thermal coal with the investment restriction being calendared at a later date. so we've provided an update on the platform. as a reminder, our esg strategy really begins with that investment belief that incorporating environmental and social governance factors should give us better insight into the respiratory characteristics of those investments. but, at the same time, what we do acknowledge that it's not a one-size-fits-all approach and we've developed a differentiated and nonprecipitationive approach to esg expectations for each asset class, different investment

geographies. different sectors and even different investment styles that our managers on our behalf. our work is not new. it's pretty long standing. it's been on the agenda here since at least 1988 when we first introduced social investment policies. we really progressed a lot of this work recently like the rest of the discipline where i would say previously there was maybe more of a values based approach to these issues. we now have a more value-based approach and what i mean by that is we've really focused on how esg factors create investment value rather than bring social or ethical values into play. our esg and organizer on these three pillars. each of them has their own work stream, but they do intersect

with one another and contribute to work and this engagement has been shown to to contribute to long term performance the second relates to how we incorporate it into due diligence and ongoing monitoring of our investments. our belief here is this will give us a more complete view of risk and opportunity as we consider investments. in the third pillar, esg collaboration and communication for sustainable economy. this is really how we work with the broader financial services within the system, with

different peers, our managers, service providers to advance our objectives and also communicate with our stakeholders. this is important to create a market, a financial market, contribute to a financial market that focuses on sustainable long-term value. i'll skip here for slides 3-6, but just put them up briefly. they really highlight the key actions that we've taken since 1988 as part of our esg platform. it was in 2018 when we formalized our efforts and the past three and a half years, we've seen an increase in the breath and depth of our work in this area. really, at the same time when i think the market was paying increasing attention to esg

issues. over the past year, we've made progress on each of the three pillars and i'm going to highlight a few actions under each of them starting with the first pillar active ownership. we continued, you know, through 2020 and 2021 to enhance our corporate governance guidelines regarding our activities. including some updates we made in february to hold boards accountable for their racial and ethnic diversity composition in addition to their gender balance and so we introduced a voting guideline to vote against certain directors if the boards fail to acknowledge the importance of diversity, failed to have diverse slades of candidates that they considered for nomination to the board. we also introduced the voting guideline to vote against directors of companies that they failed to manage a

material esg risk and that could include a risk like climate change. we supported a variety of shareholders on climate change as well as informational equity audits and what's interesting about both of those cases is there's examples of climate and diversity related shareholders proposals where management of company has supported proposals and this is pretty atypical most of the time. management recommends voting against shareholder proposals. an interesting evolution in shareholder activism over the past year. we, you know, joined a majority of shareholders in voting out three directors and exxon, so this is a pretty news worthy event in terms of investor activism where a san

francisco-based hedge fund proposed an alternate slate of board candidates with experience in innovation and despite having an overall position, it garnereded the shareholders support. competition continuing to be another area of scrutiny. in light of the covid-19 impacts compensation. so this marked an increase in a number of proposals we opposed year on year. the second area there in terms of engagement, how we've continued our engagement really

prioritizing these topics of climate risk and board diversity. we continue to be active and climate action. this puts together over 600 global investors we also expanded our focus and with u.s. airlines over the past year. as kirt said, we have a collaboration with california to engage with companies that lack and over the last year, we had success in sees 14 diverse

directors added at nine of the companies for that engagement activities. and, lastly, we continue to support esg related policies through public comment mechanisms, this included request for comment by the sec as well as on the chai mate portion of the build back better bill. moving to esg and investment management, we really focused the last year on expanding the breath and depth of the way we integrate into our investment due diligence underwriting and also the ongoing monitoring of our investments. as kirt mentioned, we put in every recommendation that goes to you, the board outlining

risk opportunities so that's for all new investment remgszs. we implement that process, but we also sort of took a step back and work with each asset class to manage our relationships and conducted deep dive reviews of these managers, really outside of a specific fund commitment, but the goal here was to better understand what they're doing, understand amongst these managers that are currently important in our portfolio and likely will continue to be important relationships for us. these conversations focus on two things. one was how well they integrate

factors into the investment before they run and then, two, what is their approach and so we introduced internal. review these results and the goal here is to update these on an annual basis. of this is part of our approach to recognize that each manager is at a different point in their own process we've put in

on their policy processes. reporting elements and these engagements are really high and in align with our interest and our managers' interests

together which we monitor platform. a new climate scenario tool that allows us to on different with the pri series. chanced institutional investors but we also did seek out some new relationships this year which is the leading framework for real estate. we also joined the opa private equity working group and a few

other initiatives. we're awaiting those rules and that's where we've attached this item and really communicates our problem and plans towards net 0. so i won't spend a lot of time talking about this or rather fit within them and it includes the ways that we integrate climate into our active ownership and engagement

actives. our climate as well as external collaborations and commentary related to climate and climate risks. i think all three of these areas aren't specific. so rereally need progress in all of these areas as well as the progress on the regulatory front and technological development front. in measuring and addressing climate risk, but ultimately, it's to achieve our net 0 emission and make our

investment across the port foal combroe that are consistent with net 0 by 2050 pathway. what this means is that we're comfortable that each of these investments is resilient or positioned for supervisor risk adjusted returns in a world that's decarbonizing and needs to further decarbonize. we think that this means that there's going to be certain portions of the portfolio that may be in climate it also recognizes there may be a portfolio that can be a little neutral. we can think of sectors like

technology and and so one of our 2022 investments is to work with our type of analysis that we intend to conduct and what we've been and so in this

report we're introducing what we think are two aggressive goals and one is 50% reduction by 2025. this succeed, we're following that is a 65% reduction by 2030 and the goals currently until data becomes available for other asset classes. you can see from the chart there on the left, on the blue line representing that public equity and fixed income portfolio. it's increased by 37%. it sits below our policy

benchmark the data availability and other asset classes is a priority for us. one of our 2022 objectives is to really work within the broader alternatives investment industry. it's working on a variety of frameworks, on measurement tools, recording tools to get carbon footprint data for assets and classes. we can estimate the carbon footprint for our private equity portfolio and this is work we've done using resources. we're able to estimate this to be about 44 equivalent per million dollars in revenue generated by a portfolio. this would sit about 66% lower than our public markets

combined footprint. so based on our rates to technology, in that portfolio, you can see here we can estimate it's a very low carbon intensity portfolio currently. but we do want to get better data to have a more exact number there. so the full time action plan is attached. additional details on all these areas. it is meant to be a dynamic burden for us and something we will revisit each year and make updates to and attach as a similar item for that annual update. i will pause here and we can take any questions on the esg program before we move on.

>> president: any questions? as you know, we took item 10 moved to next month and items 11, 12, 13, and 14 are continuations of the existing policy, correct? >> so the only new one was 10 and we're going to get a little more information on that. >> just a quick clarification. >> president: okay. thank you. i think there was so that's over until next month. again. any questions from the commissioners? >> this process will be going on -- it's been going on for a

couple years now with many more years of work to be done. i'm trying to determine how much risk in our overall investment operations may be affected by when we decide not to invest in a particular area. it's something we're going to have to figure out and measure and monitor. it's a great clause. we just have to realize if there's an unexpected effect. if there's a cost, we just have to acknowledge that upfront. it's a measurement we're going to have to work on over the next many years. thank you. >> okay. thank you. >> president: if there's no question from commissioners, call for public comment. >> secretary: thank you.

callers, if you have not already done so, please press star. moderator, do we have any callers? >> madam secretary, there is one caller on the line. >> secretary: thank you. caller, please state your name. your two minutes begins when you speak. >> caller: hi everyone. this is david paige. i'm glad to get to hear your voices if not see you in person again. my comments are pretty much the same like the last year and the previous year. i'm sorry to sound so critical, but i know you guys have done a lot of work and it's obvious you're really putting a lot of effort into your job. but there's just too little too late with the fossil fuel die vestments and not enough focus

on the 's.' in the esg. i think i'm maybe being too critical and if we took a poll of all my fellow retirees, they would say, we don't want any of that esg, sri stuff, we just want the roi and we don't care how unethical we get, you know, the investments involved and just bring us the money. so what i would like to propose is that the deferred comp people gave us an example earlier about how to do outreach. why not do some outreach to retirees and active employees about is there some type of interest or concern about these issues and set up some way of taking comments, you know, from people money is involved in this, retirees and employees.

i'm sure you can figure out how to do it. you know how to do outreach as you demonstrated earlier in the meeting. anyhow. that's my two cents. more outreach and more education about what is considered socially responsible and what's considered unethical. thank you very much. >> secretary: thank you for your call. moderator, are there any other callers? >> madam secretary, there are no more callers on the line. >> secretary: thank you. hearing no calls, public comment is closed. mr. president. >> president: yes. i'm going to ask the board, do any of the board members have anything on items 11-14. ? do you want to take them as a group or individually?

i'll entertain a motion on that. >> commissioner: let's do them as a group. >> president: is there a second? >> commissioner: second that. >> president: okay. moved by commissioner helfod seconded by commissioner gundy. any other commissioners? public comment, please. >> secretary: a reminder to callers, press star 3 to be added to the queue. >> there are no callers on the line. >> president: role call. >> secretary: [roll call]

thank you, we have five ayes. motion passes. >> president: okay. next item would be 15. >> can i just do one thing -- say one thing? >> president: yes, go ahead. >> andrew, you and your team did a great job on all this and it's so rich with information and positive leadership. i appreciate it. >> thank you very much. all echo those sentiments very

strongly. >> secretary: thank you. item number 15. discussion item, chief investment officer report. >> commissioners, i'll be very brief here because i know there are some very important action items ahead. including the s&p 500 and dow and nasdaq. and despite the appreciation and russing assets, the u.s. economy did slow during the third quarter as a consequence of the ongoing spread of the delta variant along with lingering supply chain bottlenecks. meanwhile, the backdrop energy prices rose over the end of the month with oil crusting about $85 a barrel. with that as a backdrop spur assets in the aagree gate positive 1.67% in october. returns were led by public equity which we learned approximately 4.12% for the

month. absolute return and real assets were all positive for the month. private credit and fixed income were down modestly for the month. i won't focus on the fiscal year to the date. however, for calendar year to date, ten months finished with the calendar year and estimated 24.4%. results to date have been led by private equity which has returned an astonishing 51.1%. however, real assets, public equity and private credit have all produced double digit returnses over 15%, 16%, and 14% . asset return is up 3.7% while fixed income is down. for reference, this is an important reference, this is a 16.4 portfolio are estimated to have returned about 7.1% and

10.8% respectively. again, we've returned 20.4% over the year. at the end of october, assets are estimated to be about $36.6 billion. the report itself has more data in terms of the actual composition among asset classes. turning to updates on board approved investments. i have six announcements. five of which are noted in the text. the sixth however closed after the cio report. at its meeting on october 8th, 2021, the retirement board approved and closed investment up to $21 million co-invest fund of $20 million in project metal co-invest fund 2021. investments classified as a co-investment in spurs third co-investment. next, at this meeting on closed

on october 15th. next, at the same meeting, an investment of up to $300 million trust funds. initial investment of $50 million. staff in conjunction to traufrj into this investment. the investment is classified within the spurs public equity portfolio. is third overall investment with arrow street capital our

source investment of 25 closed and october 29th. adventure aptal project. next at its meeting on october 13th, the retirement board up to $25 million to eclipse early goeth fund. finally, this is not in a document, it was closed after the document was produced on its meeting on october 13th. the retirement board approved in closed investment strategic investment partners five. investment of $75 million closed on november 5th, 2021. the investment is classified as an investment with the spurs

credit and third investment with hps investment partners. in august, i am pleased to announce we've made a conditional offer and i hope to be able to share more details at our next meeting and as noted last month, we are in the power for management positions within public equity, private credit. absolute return, venture capital and real assets. those recruitments are ongoing with quantity and the quality of the applicants thus far. finally, i want to remind everyone that our next investment meeting is next wednesday, november 17th at 1:00 p.m. the focus of the meeting will

be on the investment of the recent regulatory changes in china. staff will be joined by melissa ma, cofounder. and gabby santos global market strategist with jp morgan, global market insights. the two have put together some great material and will present it next wednesday. that's all i have. >> president: okay. thank you very much. public comment at this time? or any commissioners have any questions or comments? none. public comment, please. >> secretary: thank you. a reminder to any callers to press star three to be added to the queue. moderator, do we have any callers? >> madam secretary, there are no callers on the line. >> secretary: thank you. hearing no calls, public comment is closed. mr. president. >> president: thank you very

much. kurt, thank you very much. it looks like an interesting meeting. next item, item 16. >> secretary: item number 16, action item. 2021 review and selection of economic assumptions. >> good afternoon, commissioners. as you know, kyron presented their recommendations for their 2021 august meeting. they had a followup at the october meeting. they presented some negative scenarios and bill is going to bring out those august recommendations and both bill and ann are here to answer any questions as am i and i'm looking forward to the discussion today. thank you. and action. thank you.

>> good afternoon, commissioners. this is our october presentation reviewing what we had recommended in the august meeting. where we reviewed all of the economic consumptions and so our recommendations were to reduce the discount rate from 7.4 range and we gave three options. the funded status measures there are proximate because they're taking into account the access and not partaking any participant experience changes in membership. in the other economic assumption changes were did we propose any changes. our assumptions are inflation of 2.5 wage inflation with three and a quarter and our amorization payments grow three

and a quarter to match wages. we also recommended some amorization and if you adopt a significant change, we would phase in that over five years to match the assets moving so that the increased costs can be matched up with the register of the exceptional investment returns. and then, the remaining amortization, we were looking to accelerate to five years including the charter changes which are already relatively short and look at amedical report amortizing any new changes and help us not use up the surplus as quickly as we

otherwise would. in october, we presented some projections with negative investment scenarios so we can look at name packs of these different discount rates in those scenarios. with that though, i'm happy to take any questions. we can pull up any of the projections we had done if there are questions or if you would like us to illustrate any of the dynamics. >> president: any questions from the commissioners? any comments? >> are we going to be talking more about their whole report or going into the three possible recommendations? [please stand by]

>> the summary of information presented in august. napc has a range of 6.9 over a 10 year period april 7.8 over a 20 to 30 year period. we are focused on the average. the 7.4 does not fall within

that range which prompted us to recommend the discounted. >> sounds like you said 7.4 is not reasonable? you do not consider it reasonable any more? >> based on this average, we are recommending that you reduce it. we haven't come out and said absolutely it is not reasonable, and partly because of the napc assumptions. >> that answers my question. whatever you want to continue on with, police say so. i recall what was said not just what was written in april or june or july.

i should say what was said by board members in the motion that was adopted. >> can you go back to that previous slide, please. there is the napc at the bottom. you are showing 6.4 to 7.2, correct? >> that is the average of the assumptions including n e.p.c. it is 6.9 to 7.89. >> thank you. >> we are open to suggestions. >> i personally think that the

reduction from 7.4 to 7.2 will be in line. happy to support that. >> are you finished? >> i concur with you. after reviewing the numbers and looking at the last two presentations, i would support reduction from 7.4 to 7.2 as well. >> is that a motion? >> i appreciate the brevity of getting to this point compared to where we have been in the past. more than happy to make the motion to reduce the discount assumption from 7.4 to 7.2. >> thank you.

>> second. if this is a motion, i second. >> okay. can we have the motion include not changing the other economic assumptions and changes to the amortization and focus in on the reduced discount rate from 7.4 to 7.2. can that be included in the motion? >> i don't see why it can't be. i would include by reference. >> thank you. >> at the requested action on the calendar sheet, there is the column that has the check marks what we were asking under the 7.2 proposal.

>> we were asking 3.25. price inflation 2.50. if discount is 7.2% reduce amortization period for the assumption changes and losses to five years and while 100% funded net surplus reamortized each year over a 20 year period. that would be the entire package, so to speak. >> the motion would be amended to include the august meeting recommendations, correct? >> yes, for the 7.2%, yes. >> 7.2 then include your other recommended requested adjustments? >> except for the phase-in amortization, which would be triggered only at 7% or lower.

everything on this sheets except for that. >> i amend my motion. jay will cleanup that. >> absolutely. the discussion was not that difficult, but certainly the motion is difficult. thank you. >> based on the amended motion to include everything except for the phase-in. i second. >> thank you very much. we have a motion. any further discussion on the motion? if not, public comment, please. >> thank you. reminder to callers press star 3 to be added the queue.

any caller on the line? >> there are no callers on the line. >> thank you, public comment is closed. >> roll call. >> commissioner bridges. >> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> commissioner safai. >> aye. >> president casciato. >> six ayes. motion passes. >> thank you, commissioners. >> next item, please.

>> item 17. action item approve request to adjust industrial disability retirement allowance to 84% until qsr. jon c mcmay hon. >> discussion? i will entertain a motion on this. >> so moved. >> commissioner hell fond. >> second. >> second by commissioner driscoll. >> discussion? none. public comment? >> thank you. do we have callers on the line? >> madam secretary, there are no caller on the line. >> hearing no calls, public comment is closed. president cassie auto. >> roll call, please.

>> commissioner bridges. >> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> commissioner safai. >> aye. >> president casciato. >> aye. >> thank you. we have six ayes. motion passes. >> item 18. action item. approve request to adjust industrial disability retirement allowance to 60% until qsr. reginald prasad. >> if there is no discussion i entertain a motion. >> so moved. >> moved by commissioner

driscoll. >> second by commissioner bridges. if there is no discussion, public comment. >> moderate tore any caller on the line? >> madam secretary, there are no caller on the line. >> thank you. no calls, public comment is closed. >> thank you. roll call. >> commissioner bridges. >> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> commissioner safai. >> aye. >> president casciato. >> aye. >> we have six ayes. motion passes. >> next item, please. >> item 19. discussion item.

personnel committee report. stansberry is not here for the presentation. we accept as written. >> being a member of the committee i can comment that we had a good meeting. >> i concur with that. public comment. >> thank you. moderator any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, public comment is closed. >> next item, please. >> item 20. discussion item. conference expense report for the quarter ended september 30, 2021. >> this will be the last time we

call it a conference expense report because we have since we returned to the office november 1st. we lifted the travel ban for business travel for staff as well as board members. as far as board members and staff are comfortable and appropriate expense and travel we intend to approve travel to interview due diligence with managers, advisory board meetings, conferences. hopefully for the next quarter we will see more activity as far as travel-related expenses. this report shows during the first quarter of our budget we had just over $2,000 that we paid for registration for virtual conferences for staff. like i said, we will change the title of this report back to

travel expense report. >> great expense management, jay. >> we have a lot of budget savings. commissioner safai should be very proud we saved so much money. i did want to basically i have had inquiries from a couple board members whether we would approve travel. it with what you are comfortable with. if it is appropriate, we certainly will register and get you to conferences that are appropriate. i just want to make sure we officially made that announcement to you and we will make it to staff, also. i will take any questions. it is only $2,000. yes, very frugal over the last quarter. >> thank you very much.

>> scrooge. >> if there is no other discussion, public comment. >> thank you. moderator, any caller on the line? >> madam secretary, there are no callers on the line. >> hearing no calls, public comment is now closed. >> next item. >> item 21. discussion item. executive director's report. >> i have two items. one is a plea to the board. under your policy you are to do a board self-evaluation survey. the governance consultant who you met with earlier has prepared the survey. we typically have that approved through the governance committee. we would really like to have a governance committee between now and the end of the year so that this self-evaluation survey can be approved, distributed to the

board from the survey is where the board focuses, the governance committee focuses on topics for the retreat. i would just basically let you know this is going to be sept out. it is now pending the governance committee meeting. >> it is way past due, right? >> it is a difficult period of time, but, yes, we definitely need to get the governance committee scheduled for a meeting between now and the end of the year. >> maybe the committee could do a single item meeting. >> well there is a laundry list of things pending before the governance committee meeting. if they want a short meeting we could do it for this item in particular. update to the return to the

office. staff has returned to the office according to city policy in office work for two days per week. that started last week. we also started this week on tuesday and thursday opening the fifth floor reception area to our members to come in and either schedule appointments to do services or to in the case of deferred comp program if they had a scheduled appointment they could do in person with a voya counselor. there is a lot of people that have not been back in the office for 18 months. there is an adjustment we are making. we are focusing on safety. i will say that relative to how many folks have been away from

the office i believe we are glad to see more people in the office. we will continue to judge or monitor the demand for in-person services like member services because we are still sensitive to the fact that we want to try to make sure members understand that there is a 24/7 access on the website to allow services they are asking for. this is an educational opportunity to drive as many of those folks over to the website to conduct transactions. we will expand that. >> this is just an editorial comment. my personal opinion.

we evidenced the back to office with the departure of xcio coker. in one of his bill of particulars what he didn't want was to go back to the office, which is how is the condition by the building and everything? >> the neighborhood has not changed. what we do have a commitment from the mayor's office that she has put additional resources to monitor from 7:30 a.m. to 7:30 p.m. monday through friday ambassadors and city employees presence on the streets to make sure the staff can get to the office and get from the office safely. there is a commitment that

unfortunately the neighborhood and the folks who hang out here have not really changed over the pandemic. that is difficult. to your first comment, i hope that the day comes when the mayor's office defers to the department to determine what the best business model is as far as remote working. right now there is a blanket city-wide required policy that ever employee work in the office in person in the office at least two days per week. that doesn't fit us very well. i am certain it doesn't fit other departments to a less extent. i am looking forward to the day where they will again sort of the way it was pre-pandemic defer back to the department to determine what the accident model going forward -- the business model should look look

as far as remote working. >> between us and health service systems, that is a major portion of our constituency we are serving from that building. >> correct. >> actually, i don't believe health service system has opened their member services area yet. we have been trying to coordinate with them as far as what our plans were, and when the city, basically, established the requirement that everyone has to return to the office two days per week, they completed open enrollment without member services. it was completed online. i believe they completed it last year successfully. i heard it was successful this year. they are trying to the 24/7 7 access online. you are right.

i don't know that there is a high demand as there was before for face-to-face counseling. it is an important decision and they want the attention but i believe anecdotes tally folkses are not complaining having interviews via teams or web ex meetings hopefully we can have the discussion as a department going forward to determine what the model would look like for all staff, hr, it, operations staff all have different requirements as far as customer service, what the industry. i know in the investment side we are afraid that, you know, with people having the opportunity to

work exclusively from home and us having two damin mum that could impact -- two days minimum that could impact joining us as new employees or stay. i hope we don't get to that point. i hope soon we have discretion back to design that model that you and i talked about and we talked about returning. >> our good friend just called me to say health services is open tuesday and thursday. >> they followed our lead or we followed their lead. >> we lead. >> as long as we are coordinated that is all we can hope for. >> i have a question. i know our desire for good real

estate space particularly for the full-time employees who work there as well as occasional visit from a member, with the office space vacancy over 20%. whether or not we have a very useful desire to execute to get control of our own office space which we talked about for many years, whether that becomes a priority asking our investment officers to look for good real estate to meet our strategic needs servicing our members as well as a good effective workplace for our staff to work at. whether we moatly or when they -- remotely or when they come to the office including parking, bart transportation. this is a good time to look at that issue. >> i would like to concur with

you, jeff. totally concur. >> we recognize there is a vacancy rate. we need to weigh that the city wrote the lease which expires in this building in 2024. we have an out without penalty after the fourth year which will pass. now we find other space to rent. we are aware that there is much more, you know, in a different setting much more appropriate space to lease. then we have no way out of the existing list unless we purchase. before there was direct assignment and i think now there is an as signment for real estate managers to keep eyes open. it is over a year and a half

since ed and i looked at the possibility of the buildings. we are seeing a lot of real estate coming up for sale and it might be the time we focus on it. i think we need to hire whoever succeeds me to get that done because i have already tried to do it twice, and that is all i have in me. hopefully we can get something going. i agree. not only for our members but for our staff in particular. >> the safety of the staff is paramount wherever we go. >> agree. >> please let our real estate friends and staff know it is a strategic acquisition. that affects the price we would be willing to pay and negotiate. not a normal real estate investment firm.

thanks, scott, i appreciate it. >> mr. president, i am happy to be part of the if you want to assign someone to work on this issue with the executive director given the work that i have done with real estate in the city. i am happy to help with that conversation. >> thank you. i think maybe you guys can sit down offline and get a historical briefing. >> i will take you up on that, commissioner. >> mr. president i have to leave now. i wanted to let you know. >> thank you very much. appreciate it. public comment at this time. >> reminder to callers to press star 3 to be added the queue. any callers? >> madam secretary, there are no callers on the line. >> thank you.

no calls, public comment is closed. >> next item, please. >> 22. discussion item. retirement board member good of the order. >> i have one item good of the order. anybody else? >> a quick one, also. >> go ahead. >> i want to encourage everyone to attend the ic on the 17th. kirk and bill, we tried to make them meaty where we are investing our money. this one is very tropical and it has a lot of serious issues around it. hopefully, we all attend. >> thank you very much. i will be there.

i would like the issue of special needs trusts to be reviewed by our administrative staff. i went through an issue this past year regarding special needs trust. i would just say publicly it is something on my mind. it is something that i would encourage staff to review because it is a very challenging time for any family and also for the person that is disabled and remains the subject of the special needs trust. thank you very much. that is all i have. anybody else have anything? >> public comment now. >> thank you. moderator, any callers on the

line? >> madam secretary, there are no callers on the line. >> thank you. public comment is closed. >> if there is no other business, we are adjourned. >> thank you. >> thank you. >> happy thanksgiving to everybody.

shop and dine on the 49 promotes local businesses and challenges residents to do shopping and dining within the 49 square miles of san francisco by supporting local services within neighborhood. we help san francisco remain unique, successful and vibrant. where will you shop and dine in the 49? san francisco owes the charm to the unique character of the neighborhood comer hall

district. each corridor has its own personality. our neighborhoods are the engine of the city. >> you are putting money and support back to the community you live in and you are helping small businesses grow. >> it is more environmentally friendly. >> shopping local is very important. i have had relationships with my local growers for 30 years. by shopping here and supporting us locally, you are also supporting the growers of the flowers, they are fresh and they have a price point that is not imported. it is really good for everybody. >> shopping locally is crucial. without that support, small

business can't survive, and if we lose small business, that diversity goes away, and, you know, it would be a shame to see that become a thing of the past. >> it is important to dine and shop locally. it allows us to maintain traditions. it makes the neighborhood. >> i think san francisco should shop local as much as they can. the retail marketplace is changes. we are trying to have people on the floor who can talk to you and help you with products you are interested in buying, and help you with exploration to try things you have never had before. >> the fish business, you think it is a piece of fish and fisherman. there are a lot of people working in the fish business,

between wholesalers and fishermen and bait and tackle. at the retail end, we about a lot of people and it is good for everybody. >> shopping and dining locally is so important to the community because it brings a tighter fabric to the community and allows the business owners to thrive in the community. we see more small businesses going away. we need to shop locally to keep the small business alive in san francisco. >> shop and dine in the 49 is a cool initiative. you can see the banners in the streets around town. it is great. anything that can showcase and legitimize small businesses is a wonderful thing.

>> chair haney: this meeting will come to order. this is the november 17, 2021 budget and finance committee meeting. i'm matt haney, chair of the budget and finance committee. i'm joined by supervisors safai and dean preston who is here in place of supervisor mar, who is not -- who will be with us at noon. mr. clerk, do you have any announcements? >> yes, the minutes will reflect that committee members participated in this remote meeting through video conference. the board recognizes that the public access to city services

is essential. public comment will be available on each item on this agenda, either channel 26, 78, or 99 and sfgovtv are streaming the number across the screen. comments or opportunities to speak during public comment period are available via phone call by calling 1-415-655-0001. meeting i.d., 2495 103 7123 # # when you connected you will hear the meeting discussions, but you will be muted and in listening mode only. press star 3 to be added to the speaker line. speak clearly and slowly and turn down your television, radio or streaming device. alternatively, you may submit public comment in either of the following ways, e-mail myself,

brent jalipa, city clerk. if you submit by e-mail, it will be forwarded to the supervisors and included as part of the official file. written comments may be sent via u.s. postal service to city hall, 1 dr. carlton b. goodlett place, room 244, san francisco, california. 94102. mr. chair, for items 2 and 9 we did employ the office of community engagement and immigrant affairs to provide spanish interpretation for those items. if you can kind make your announcements? >> thank you. [speaking spanish]

[speaking spanish] thank you. >> thank you. and finally, mr. chair, items acted upon today are expected to

appear on the supervisor's agenda of november 30th unless otherwise stated. and that concludes my comments. >> chair haney: all right. thank you. we have a very full budget and finance committee agenda today, so i appreciate everyone being brief with their presentations and for some of the items we'll have one minute in public comment which i'll announce. please call item 1. >> ahead of item 1, mr. chair, if we can have a motion to excuse supervisor mar until his arrival. >> chair haney: yes, i want to make a motion to excuse supervisor mar. >> on the motion to excuse supervisor mar? >> commissioner safai: aye. >> commissioner preston: aye. >> chair haney: aye. >> we have three ayes. >> chair haney: great. call item 1.

>> thank you. item number 1 is a resolution approving amendment number 3 to the agreement between the san francisco aids foundation and the department of public health to provide h.i.v. prevention services through city-wide syringe access and possessal services for a total amount not to exceed $42.1 million with no change to the contract term of july 1, 2016 through june 30, 2026 to commence upon board approval. members of the public who wish to provide public comment on this item should call 1-415-655-0001. meeting i.d., 2495 103 7123 # #. if you have not already done so, dial star 3 to line up to speak. the system prompt will indicate you have raised your hand. please wait until the system indicates you've been unmuted and you may begin your comments. mr. chair?

>> chair haney: all right. welcome back, everyone. this was an item we had last week and we wanted an update on some of the specific metrics and outcomes and so i'll turn it over to you all. >> good morning, supervisors. this is tracy packer from the department of public health. the director of the community health equity and promotion branch and we were continued to this week. we're requesting approval of a resolution to amend the agreement between the san francisco aids foundation and the health department for h.i.v. prevention and hepatitis-c prevention services syringe access and disposal services. so the contract we're asking to amend is for access and disposal services. today i have nicole trainer with us. nicole is the contract manager and she'll give you more information and overview. we also have eileen lock rann and hannah shore who are experts

on disposal services so they can answer any questions you might have. nicole, i'll turn it over to you. >> sure, good morning, supervisors. tracy mentioned the resolution before you today. again to provide h.i.v. and heptathlon -- this is to address the h.i.v. and hep-c health disparities through this drug. syringe access services and disposal services throughout the city, specifically focusing on increased h.i.v. and hep-c testing, health education, harm reduction support, which is inclusive of sterile injection, naloxone, test strip distribution and low-barrier substance use treatment. during last week, it was

requested we provide you with an update of the $1.6 million surplus fund awarded to d.p.h. the 1.6 million was added to two separate contracts outside of the syringe access and disposal contract that is before you today. of the $1.6 million, $1 million was awarded to the coalition and education project. funding for this project began on july 1, 2021. the s.r.o. overdose prevention program seek to implement a program in s.r.o.s. this new funding expands and continues the initial work in key s.r.o.s to work with site management, staff and residents to prevent overdose deaths. services provided under this contract include outreach, site

recruitment, individual training and group overdose training. the program starts activity completed since the start of the program, so since the start, funding -- the funding notice was implemented. the program has hired a bilingual program manager to expand efforts in s.r.o. and permanent supportive housing sites. staff has translated all training and resources and signage materials. the program has worked with housing clinics to update policies that once prohibited staff from administering naloxone while at work. this allows for staff to be trained and have naloxone supply on site. they have also installed 100 naloxone stations at the tenderloin housing clinic. so that's the update for the first contract. the remaining $600,000 was

awarded to the san francisco aids foundation mobile contingency management program implementation. the goal of the intervention is to reduce the negative health impacts and overdose risk among people who use drugs with a focus on mitigation and creation of substance use goal and stabilization. for this contract, funding began on july 1, 2021. services provided under this contract include 101 no threshold counseling, contingency management and safe use, using alone coaching, individual goal-setting, client referrals, narcan training and linkage to outpatient drug treatment services at the foundation. the program started activities that have completed since the contract start date as the program has implemented their outreach efforts. this is inclusive of outreach

conducted daily, monday through friday, daily, day time, and evening hours on the streets of tenderloin, soma and mission neighborhoods. there are a team of two harm reduction staff with lived experiences and bilingual spanish-speaking capabilities which have been hired to provide this much needed street-based services in high-impact locations. as of the end of october, 2021, the team has interacted with 527 people. they have distributed 628 doses of nasal naloxone and have had a community report of reveral of 164 overdoses. the team is extremely knowledgeable in fentanyl use and provides coaching sessions. this session also includes training on how to correctly use test strips and make other life-saving choices. so i would also like to mention that the program i described

above are welcome -- really welcome the opportunity to provide further programmatic updates as each of these progress. thank you for letting me present before you today. >> supervisors, thank you. if i may, nicole, thank you so much for an excellent description. as a reminder, what nicole described is surplus funding that are separate contracts that are not before you today. today what is on the agenda is to approve the resolution to amend the contract between the san francisco aids foundation and the health department for syringe access and disposal services. so just to be clear with that. and nicole did an excellent job of preparing information about the other contracts that you had questions about, but those are not on the agenda for today, so thank you.

>> hi, just to note, the chair is having connectivity issues and we did lose him. >> he did text me the same thing. >> okay. so vice chair safai, not sure if you'll want us to either open public comment or recess? >> commissioner safai: why don't we go ahead with public comment, mr. clerk. >> clerk: very well. so, operations is checking to see if there are any callers in the queue. members of the public who wish to provide comment on this item, please press star 3. for those already on hold, continue to wait until the system indicates you've been unmuted. mr. adkins, let us know if there are any callers. >> commissioner safai: he's back. >> chair haney: sorry. my mouse died.

>> commissioner safai: we're doing public comment. >> one more time, mr. adkins? mr. adkins, one more time confirm if we have any speakers? >> mr. clerk, there are no callers in the queue. >> thank you very much. mr. chair? >> chair haney: thank you. apologize about that. i only honestly caught half of the presentation because the computer stopped, so i don't have any further questions, but i'm going to have to get further answers and things offline. colleagues, any questions or comments? >> nope. i asked mine all last week. >> chair haney: all right. with that, i make a motion to move this to the full board with

a positive recommendation. can we have a roll call vote, please? >> clerk: mr. chair, i want to double check if the b.l.a. had an updated report on this item? >> nick menard from the budget legislative analyst. we don't have a report for this item. thank you. >> clerk: and mr. chair, further, the b.l.a. did recommend -- i just wanted to confirm if the committee is accepting the b.l.a.'s recommendation that requesting -- or the committee requesting that the department of public health provide a written report to the committee with updated performance data through fiscal years 2020 to 2021. if the committee is making that request, i can note that on the minutes. >> chair haney: yes. >> clerk: thank you very much. so i'm sorry, mr. chair, did you

make the motion already to forward to the full board? >> chair haney: yeah. >> clerk: okay. on the motion to forward this item to the full board as recommended, vice chair safai? >> commissioner safai: aye. >> commissioner preston: aye. >> chair haney: aye. >> we have three ayes. >> chair haney: great, thank you. thanks, everyone. >> thank you very much. >> chair haney: please call item 2. >> clerk: yes, item 2. ordinance appropriating $64.1 million from the fiscal cliff reserve to the mayor's office of housing and community development for rent relief under the rent resolution and relief fund and approximately $64.1 million for the acquisition, creation and operation of affordable social housing under the housing stability fund in fiscal year 2021-2022. the members of the public who wish to provide public comment

on this item should call 1-415-655-0001, meeting i.d., 2495 103 7123 # #. if you have not already done so, please dial star 3 to line up to speak. a system prompt will indicate you raised your hand. wait until the system says you've been unmuted. as stated earlier, we're working with the office of community engagement and immigrant affairs. >> interpreter: thank you very much. [speaking spanish] [speaking spanish]

thank you. mr. chair? >> chair haney: thank you. we have with us our guest member of the committee, supervisor preston to present on this item. >> thanks so much, chair haney. and before us today is appropriate funds for the emergency housing acquisition plan. chair haney, i want to thank you for being an early and original co-sponsor of this and prop i which is the source of all of this. the purpose of the allocation is to make a significant investment in our city's ability to take at-risk properties, to step in and purchase those buildings for permanently affordable housing and prevent pandemic displacement. i want to thank all of our

cosponsors on this. i mentioned chair haney, president walton, peskin, mar, ronen and chan as well. hopefully, that is a growing list. this effort as i mentioned is predicated on prop i passed last november with support of 58% of san francisco voters. the voters overwhelmingly approved prop i with the understanding the money would be split evenly between the rent relief and social housing in the first two years and later exclusively used for social housing and this board unanimously approved a resolution reflecting that understanding in august of 2020. the controller has projected that prop i, their original projections would generate approximately $128 million in new revenue this year. that's what this appropriation is based on. four months into the fiscal year we know that the actual amount raised is far exceeding that. it's already $82 million just in the first four months on phase

2, far exceeds the projected amount. in creating the housing stability fund, the board created a companion oversight board to provide guidance and recommendations on the use of prop i funds. despite delays, the board has met three times and at its meeting on october 28, passed a unanimous resolution on how to direct the funds received in this fiscal year. the oversight board's resolution, the board of supervisors, urges them to approve emergency allocation for the acquisition and preservation of existing multi-family buildings to prevent displacement. the recommendation is based on a report published by the oversight board that shows we're at a precarious crossroads in our recovery. it shows a snapshot on the private market.

city-wide, there are 109 buildings totalling 1065 units of housing currently for sale. -- in the interest of time, i won't go through the district specific numbers, but it is clear that san francisco's real estate market is on the rebound with growing participation and interest among real estate speculators. this is familiar to those who were here during our last economic dip. this is a similar phenomenon that followed the great recession in 2008. in the aftermath of that constitutional investment firms, corporate landlords went on a spending spree taking advantage of their position and consolidate properties in san francisco. it went from being a big player

and landlord to really being a local behemoth. we know the private equity model, their profit margins are a function of displacement. it's not just a coincidence, it's how the profit margins are constructed. the more they can move, the more they can bring them up to market rate. it's how they make their money. the crisis in san francisco is the direct result of this market dynamic. it happened across the country and resulted in where we are today where investors are responsible for buying nearly 1 in 6 homes sold in america. we failed to stop the recession-fueled displacement a decade ago, but this time we have a chance to change course. prop i has positioned the city to pilot new and expanding and existing affordable housing programs and that's what this

ordinance before you, colleagues, seeks to do. it seeks to deliver on the proposition of prop i and unanimous resolution passed here by this board, use the transfer tax revenue for social housing, in this moment, in accordance with the oversight board and amount immediate injection of $64 million to acquire properties, scaling up our acquisition program to an unprecedented level in our city's history just when we need it most. i think we not only have the opportunity but obligation to take action. we heard this morning, and thank you, chair haney, for joining the press conference. we heard from families who have lived in their homes for decades and are terrified about the displacement as their buildings are put on the market. and they're pleading with us to intervene. this call to action has been heard and amplified by individuals and organizations across the city. i will not go through the list that i was planning to go

through, again, because i know that the agenda here is busy, but i will say there are 35 different organizations already supporting this representing really a broad coalition of community housing and community groups. i want to note that the support this effort has received from organized labor, from the san francisco labor council, to many of our local unions and it comes on the heels of their housing workers report produced by chiu and jobs of justice with the leadership of supervisor mar, the board, highlighting how the system has not worked for working families in san francisco. so one of the strategies described in that report was to invest significantly in housing acquisition. it's exactly what we endeavor to make good on today and this $64 million investment will make sure we can preserve the home

for san franciscans and do so at scale. so, you know, i want to reiterate, this is not a new idea, but it would be a new chapter to have this program finally resourced in a way that it can scale up. and i want to reiterate my commitment to continuing our partnership with mayor's office of housing and community development, so if approved these funds get out the door as quickly and possible and with maximum impact across the district. then, chair haney, i can describe for you later or now, but we, you know, i previously circulated amendments that we intend to make that i'm told are non-substantive. currently the ordinance seeks so allocate $128 million to two separate programs. $64 million to the resolution and relief fund. and $64 million to the housing stability fund. our intention is to duplicate,

create separate file for the allocation to the rent relief on the one hand and the allocation of the housing stability fund on the other hand. we're not seeking to change the amounts for each of those, nor the source of funds and as i mentioned, these are non-substantive. -- deemed by the attorney. i want to reiterate no time to waste on getting these funds out there. i appreciate you, chair haney, for scheduling this, especially given how packed the agenda is. and with that, chair haney, we do a planned presentation from caroline from mission economic development association, one of the groups with extensive acquisition experience. and i know o.c.d. is available for questions and there was a b.l.a. report on this item. thank you, chair haney. >> chair haney: great, thank you, supervisor preston for your

leadership. as you and i have discussed, there is a critical urgent need for these funds to be available to prevent displacement. we've had a number of situations, some of which are ongoing in my district where if we were to see these buildings go in the private market and be sold off, families would absolutely be displaced. it's not something we can ever get back. very often these buildings are in communities that have already faced tremendous displacement, like the south of market. sometimes they're in cultural districts and i also really want to emphasize a need when we make a commitment like the cultural district to say that this is the cultural and historic home of a community, we actually have to take concrete steps to make sure that they can stay. and so when families or

residents from that community are being displaced in front of our eyes, this is an absolutely critical tool for us to be able to step in and prevent it. and so, yes, we need to build more housing and affordable housing. we talked about that, and we need to do a lot more, but we also need to protect people who are here now. i know this is unusual to do a supplemental like this, but we've also been clear and i've communicated this as well as the chair, we've been clear about how he has -- the prop i funds. so that is also an unusual situation, but i think having these funds available. i cannot wait. it will allow to us keep people in their homes. and i think that's a goal that is worth the cost without a doubt. so, i know we have a presentation.

i see supervisor safai. b.l.a., do you want to make your comments now, supervisor safai? >> just to a say a few words. thank you, caroline for being here today. she has been such an amazing partner. we honored her and meta, particularly her for her amazing work. not a lot of women of color in the field. and she called her on a friday, she called me back on a monday. and i think by the next week we had an offer in on the largest acquisition in city's history in my district. so i am an extreme supporter of the small-site program. i think that building has 23 units, five commercial spaces. we did another one last year, in fact, the only small-site acquisition in the entire city with meta's help again.

if you drive by it, you'll think you're in miami, it's an interesting color choice, but it's pretty cool. and it's already gotten attention of the neighbors. so i'm a big, big supporter of keeping people in the communities in which they've resided for a long time. this is a real tremendous tool. but this tool definitely needs a reboot. and the fact that we only did one acquisition last year says a lot about where we are. it's not necessarily just about the money that is in the program, but the program itself. and so i think that we're going to hear today some real positive things. we're going to hear some need for enhancing the program through the mayor's office of housing along with the housing accelerator program and i think that moving this forward and i appreciate supervisor preston you bringing this conversation to the table, because we definitely need to have this

conversation about how we're going to re-imagine this program and make this program more effective and allow it to work. based on the cost per unit outside of district 11, 10 and 9, it gets cost prohibitive. it's harder to do and utilize the small-sites program in other parts of the city because the buildings themselves are a lot more expensive and it exceeds what the cost per unit the program has designed for. also, the 80% average ami is a great way to stabilize working people's housing, middle class housing, whatever you want to call it. and that is another really important aspect of this program. so just wanted to say those words of support. also really wanted to uplift caroline and the amazing work she was done and thank you, supervisor preston, for bringing

this conversation forward today. really appreciate the need to have in-depth analysis of this. thank you, mr. chair. >> chair haney: thank you. and thank you for those thoughtful comments. i know we're going to dig into how to make sure the funding is there and also that this really gets done and we make the acquisitions and improve the operations and the capacity and support the organizations doing the work to make it happen with us. so with that, i'll turn it over to someone who is as knowledgeable of this program as anyone. and someone i've also worked with for a long time. so i'll pass it over to you, ms. chang. >> thank you, supervisors, for your amazing work and also for being so kind. i am the director of community real estate at mission economic development agency. i'll just quickly bring up my

slides and make sure you all can see my slides. perfect. thank you, all, for introducing me. i'm sharing today how the small-site program has grown from a small pilot in 2014 that tenants, rights, activists and nonprofit developers came together to fund to where it is today. our story is how the program has been able to keep our families in place. supervisors have shared some of these stories and how we're ready to move quickly to grow the program. and why this is such a critical strategy in equitable recovery from the pandemic. based on the legislation passed by activists, meta with the neighborhood center, san

francisco land trust partnered with the city of san francisco to devise the small-site program. the program is a targeted approach to keep our most vulnerable neighbors in their long-time homes. it was launched in 2014 as a pilot with only $3 million. meta at the time was a 45-year-old services agency and we stepped up the community calls and launched our real estate program with a small site preservation as a core tool. meda has purchased 33 buildings. this has kept hundreds of households in place and has kept affordable spaces for non-profits, arts and cultural institutions, family-run businesses. meda was purchasing 6-8 properties per year, including

the ones that supervisor safai mentioned. meda is based in district 9, yet over the years, supervisors from other districts have come to meda and asked us to buy these 4 to 25-unit apartment buildings in their neighborhood to harness the power of the small-site program. these are buildings where they knew the tenants were vulnerable to displacement. to date, the city small site program has over 40 in the portfolio, 350 residential units and 27 commercial spaces. and we can grow this to be more. so how does a nonprofit buying a building off the speculative market transform the future of san francisco from one facing displacement to one where san franciscans can stay. where our workers, our labor, our seniors, our children, our teachers, artists, nurses our

in-home child care providers can stay in san francisco. this story speaks for itself. could you play the video? [ ♪♪♪ ] [speaking spanish] [speaking spanish] meda is also buying buildings across the mission district that are from 4 to 25 units. that's where we're seeing a lot of eviction happening throughout the mission.

[speaking spanish] [speaking spanish]

beatrice and time and time again, it's been critical to keeping the families we know, as many of the supervisors know, these are our families in san francisco. this includes chloe, who after nine years in her richmond home found herself in a scenario that many tenants fear and are faced with. her landlord put her building up for sale and her status was up in the air. but for meda coming and buying her building, she, too, would have called san francisco a former home rather than a current home. so we're ready. meda has refined the program and our own capacity to develop and own in the last six years. and we've been working as a

community real estate team to continue purchasing small-sites program, but that takes funding. and while media is proud -- meda is proud to lead in the small-site efforts, at the same time we've developed the capacity as a cohort of non-profits based in neighborhoods so they can also purchase small-site property. we cannot lose the momentum that we've built. we can do more. as the only program preserving homes for san francisco's -- san franciscans today, anti-displacement has to be the priority. we know as the supervisors have shared that with the end of pandemic, or with the pause from what was happening with the real

estate market slowdown, we've seen that now we've ended the eviction moratorium and now is the time more than ever to refund the small-site program as part of the equitable recovery efforts. the pandemic has shown us that affordable and stable housing is more important than ever during this crisis. without our homes, where would we have gone when we had to shelter in place. this crisis is ongoing for many in san francisco. to date, mohcd has only funded one building for the small-site program in district 11 as supervisor safai has said. these workers have been negatively impacted by the pandemic and they need and deserve equitable recovery. thank you. >> thank you so much for that. and for your work. it's much appreciated and thank you for reminding us the human

impact of this when we do it right. and the impact that it can have. can we go to the b.l.a. report? and then public comment. >> thank you, nick menard from the b.l.a. b.l.a. this ordinance would appropriate $123.8 million of the $293.23 million in the fiscal cliff reserve. the appropriation would provide half that amount, $64.1 million to mohcd, the mayor's office of housing and community development. half that amount to the rent resolution and relief fund. and half that amount, $54.1 million to the housing stability fund both in this year. i want to say something about the reserve that this is drawing from the fiscal cliff reserve. it provides -- intended to provide funding for potential

short falls in the general fund after the exhaustion of federal and state stimulus funding starting in the next fiscal year. we don't know whether the shortfalls will occur or how large the shortfalls will be, but this ordinance is consistent with prior policy actions taken by the board of supervisors, but because the appropriation couldn't require future budget adjustments we consider approval to be a policy matter fort board of supervisors. i'm happy to answer any questions. >> chair haney: thank you. i have some questions, but, supervisor preston, would you prefer we go to public comment now, and then we can jump into our questions about the program itself? >> commissioner preston: that sounds great. >> chair haney: all right. why don't we open this up for

public comment. >> clerk: thank you, mr. chair. operations is checking to see if there are callers in the queue. members of the public who wish to provide comment on this item, press star 3 to line up now. for those on hold, continue to wait until the system indicates you've been unmuted and that is your cue to begin your comments. we're working to provide interpretive services for the item. >> interpreter: [speaking spanish] [speaking spanish]

thank you. >> mr. chair, if you could kindly confirm how much we're allotting for each speaker? >> chair haney: sorry. one minute each. >> clerk: thank you. mr. adkins, do we have any callers in the queue? >> good morning, my name is sandra. i'm a leader with face faith and action bay area. we're bound by a commitment to winning and ensuring the rights of all the people in our community and the desire to connect us with our civic

actions and practices. you have the opportunity today to allocate funds that was intended by the people of san francisco while we approved prop i. faith and action has given strong support to rent subsidies as a means to allow people to remain in their homes. now we see an additional possibility to provide housing stability throughout the city using a model that will provide needed affordable housing. we are called to use all the creative means possible to ensure that our housed neighbors do not become unhoused neighbors. we support the ordinance being heard today. thank you. >> thank you so much for your comments. next speaker, please. >> good morning. this is anna.

the san francisco tenant union urges the budget committee to support supervisor preston's proposed ordinance allocating $64 million for emergency housing acquisition. as san francisco rents and market trends rebound at an increasing number of rental properties are put on the private market, the city has a rare opportunity to stabilize working-class communities and quickly add at-risk units to our affordable housing stock. this city can prevent displacement of many hundreds of long-term san franciscans from their homes and guarantee long-term stability by using prop i money to fund an emergency housing acquisition program. and remove housing from the speculative market and permanently preserve units at affordable rents. please act to fund the emergency housing acquisition program. thank you. >> clerk: thank you so much for your comments.

mr. adkins, next speaker, please. >> hi, my name is adam. i'm a member of sfmb. i support the resolution. i'm a physician who has to see the terrible health effects for the housing shortage every day that i work in the hospital. last year in covid i was working in the i.c.u. and we had three family members, grandmother, son, his wife all on a breathing machine at the same time. why? because they're crammed in a unit and the nephew worked in the tesla factory and there was an outbreak and he ended up with family members dying because of it. we need more housing. the understand from the board is that the goal is to have true social housing. that means government-owned, not necessarily owned by non-profits, the idea of having some people paying market rate across subsidized and then generating a revenue stream to make more housing because we're

in a housing shortage. and that should be the end goal. not just expansion of the small-site program as it currently exists which is what i think is currently being proposed. but if this is going to be a pilot for something bigger where we can leverage the government to cheaply acquire land and build as much as we can in a way that market rate housing sometimes fails, when there is, you know, economic crises and investment dries up, we lose all our funding for affordable housing, so we should be investing. so our construction industry can always be thriving. so, thank you for listening and i really hope that this ends moving towards a true social program. thank you. >> thank you for your comments. next speaker, please. >> hello, supervisors. my name is rachel. arts and culture administrator. i'm speaking in support of

funding emergency housing acquisition program to help stop evictions of our families and elders. there are filipino residents that are imminent risk of displacement and we must do everything we can to keep people in their homes and communities. there are many buildings that are bought and flipped for profit where residents are kicked out by greedy speculators. at 4042 sycamore street in the mission we've been asking the city to purchase the building to stop the displacement of two multi-generational filipino families who lived in the units over 35 years. a predatory landlord bought the building to empty it and make a quick buck. this would provide funding the emergency housing acquisition program to purchase rental profits. we must support an equitable recovery process by ensuring

that our neighbors and families are protected and stable. please support this. >> thank you. thank you so much for your comments. i do apologize if i cut anybody off, but we're timing each speaker, one minute each. next speaker, please. >> good afternoon -- or good morning. this is north beach tenants committee. i'm calling in to ask you to please support this and pass this as a full recommendation on to the board. we need this money now. i have myself been evicted and i know what that is. i know what it is to be afraid the moment you hear your building is going on the market. and then when you get the notice. here in north beach as well as on the border of district 2, we have three buildings that are in

huge, huge risk of losing -- we're losing that affordable housing. we're losing members, long-time members of our communities. please release the funding now so that we can keep people in their homes and keep affordable housing in preservation forever. thank you so much. >> thank you for your comments. next speaker, please. >> hello, my name is tina. and my grand aunt is 82 years old and has been living in sycamore street in the mission for the last 40 years. she's a matriarch in our family. she and our family living there are currently facing an illicit act of eviction due to a predatory landlord wanting to kick them out and make a quick profit. i'm here to support the program. she has raised three generations of children in her family and

her daughter and granddaughters who attend everett middle school and great grandchild all live with her. over the last two years, the aunt and the family have tragically lost family members due to disease. and her eldest daughter suffered a stroke. they are a low-income family struggling to make ends meet and always pay their rent on time. aunty evelyn has built a family bond with people on their street. they keep the street clean. they cook for each other and take care of each other. everything they need is nearby. >> time is up. thank you so much for your comments. again, i apologize for cutting anybody off, but we're timing each speaker for one minute. next speaker, please. >> hi, my name is chris.

i'm associate director of housing. fund the $64 million emergency acquisition program. we have capacity to acquire buildings. we're actively seeking opportunities throughout the city and we're finding a lot of solid opportunities that will prevent displacement of at-risk lower income households. we simply lack the needed funding. this budget approval will help us and other qualified nonprofit organizations to acquire more properties and preserve them as affordable. without this funding, we don't envision many of these preservation opportunities being funded in the coming year. i want to thank you for your time and consideration on this budget approval thank you for allowing me to speak this morning. >> next speaker, please.

>> hello, this is gabe. i'm calling in support, you know, of this resolution. i think it will help the issue with housing. i voted for prop i. i campaigned for prop i. i believe the fund should be used to support housing. if you remember, this ordinance would make good the promise of prop i funds for the purpose it was intended for. yeah, we need to act right now. especially as people continue to suffer from the covid crisis and we can start this emergency acquisition program off the bat. thanks so much.

>> thank you for your comments. next speaker, please. >> hi, this is zachary with young community develop. ycd urges you to fund the housing acquisition program. covid has heavily impacted housing in our city. due to this robust private market, institutional speculators are looking to acquire these units. it's imperative that we add funds to the housing acquisition fund program and add at-risk units to the stock in the city. the largest barrier is a lack of public funding. this allocation can allow us to keep hundreds of units from hitting the speculative market. [please stand by] [please stand by]

>> clerk: hello, speaker, you are connected. please begin your comments.

[speaking spanish]

>> interpreter: i will proceed to interpret. good morning, i live on mission street. 4830 mission street apartment 204 and i'm here, i have been living here since i got this house. now i'm not afraid to be evicted. please approve the funds so they can continue buying buildings. thank you very much. i hope you have a great day. >> clerk: thank you. next speaker please. >> caller: hi. i'm a resident of district 8.

i fully support using this money for affordable housing. i hope we can move forward quickly as possible. it's crucial that we protect tenants. it's crucial that we build and maintain housing for everybody. not just for the rich in san francisco. i urge this committee and the board to support this legislation without delay. thank you. >> clerk: thank you. next speaker. >> caller: good morning chair haney. i'm speaking in support of the ordinance that will provide $64 million fund for the emergency funding acquisition

program. district 6 think it's the most development than any other neighborhood. many of our families have been live living in unstable housing conditions for years. wealthy disparity in our neighborhood has made our residents at risk of losing their homes more than any other district. i do believe that cost per unit should be taken into consideration. it should be equitable. without taking into consideration the development and the rising cost in our neighborhood, having an equitable cost per unit would not be fair. will move out our most vulnerable community members. >> clerk: your time has elapsed. thank you for your comment. i do apologize for cutting anybody out. we're timing our speakers to one

minute on this item. next speaker please. >> caller: hello. we are to fund $64 million in emergency housing acquisition program to provide doorable -- affordable housing in san francisco. we have a member who has three jobs. it is vital to keep our city healthy. >> clerk: thank you so much for your comments. next speaker please.

>> caller: good morning. we are one of the early supporters of prop i in 2020. on behalf of my organization, we are strongly in support of this resolution. so that more families in san francisco working class and all tenants who are being threatened stay in their home. they won't be out on the street. thank you. >> clerk: thank you so much. next speaker please. >> caller: hello, supervisors. housing acquisition is an extremely important strategy and fight against gentrification and

displacement. in the south market, there's two to four unit buildings with residents at risk of eviction. passing this ordinance we can take these buildings off the market and stabilize our communities. housing acquisition is a key strategy. we ask supervisors to support this ordinance including supervisors who have not co-sponsored yet. thank you so much. >> clerk: next speaker please. >> caller: good morning.

[ indiscernible ] gentrification displaces generations. please pass this ordinance. thank you.

>> clerk: next speaker. >> caller: my name is stephen. i'm currently in negotiation to buy every safe sleeping site in the city to construct 12,000 units of housing that i plan to leave empty until amazon builds new headquarters in the bay view. i'm hurting. if this legislation passes, i'm worried some of my fellow landlords will fall to this effort. threat to landlords anywhere is a threat to landlords everywhere. i urge you to vote no on this appropriation. thank you.

>> caller: good morning supervisors. it is peter cohen with the council of community housing organizations. you're hearing from many speakers. i will reinforce that the council on community organization organizations is in support of this funding for preservation at homes at risk of speculation of sales. this is happening across the city of san francisco. displacement is not just an isolated experience. we've heard from supervisors in every corner of the city as well as folks on the ground of their risk of instability in their housing. this anti-displacement affordable housing program is a

citywide value. we also heard earlier at the press conference for this well pointed out, this is a worker issue. displacement and lack of affordable and stable housing for so many of the city's essential workforce is a critical stress and this is a program that will help stabilize housing and provide more housing opportunities for our city's workers. >> clerk: thank you for your comment. i do apologize for cutting anybody off. we are timing each spheric at -- speaker at one minute. next speaker. >> caller: good morning budget and finance committee. i'm calling in support of this appropriations for $64 million for social housing and to urge you to make social housing

funding a regular, annual expenditure. the supervisors supported the resolution last year. not a single dollar was dedicated to social housing in the june budget negotiations. it is especially critical to act now because while covid initially depressed some rents, those are now rebounding making s.f. unaffordable. we have to buy housing off the market before prices go up further. that is why we urge you to move this ordinance to the full board of supervisors for recommendation. thank you. >> clerk: thank you for your comments. next speaker. >> caller: hi, i'm speaking on behalf of a san francisco bay area coalition that represents nearly 700 public workers to

voice our overwhelming support for the emergency housing acquisition program. in addition to what all of other speakers said, i want to highlight some of the health impacts of housing that we e-mailed. the health impacts are widespread and well documented. this is why we hope san francisco leads the way where the epicenter of the housing crises, we want to be epicenter of the leadership on the issue. impacts of housing on health -- [ indiscernible ] research shows that access to housing is inequitably distributed due to race. at the individual level, it can increase panel burden -- financial burdens and increase depression and stress, increase likelihood of moving to substandard housing.

>> clerk: we do appreciate your comments. >> caller: good afternoon. i'm the senior research analyst. it's great there's so many voices speaking in support of this item. our members were hit very hard. in many cases are still reeling from the devastation. they are joined by the tens of thousands of people still struggling to hold ton their housing. these funds will save hundreds of services. on behalf of the working people of the city and thousands of

members, we are strongly urge you to move this forward. >> clerk: we do currently have 44 listeners with 30 laned up to speak. we do appreciate your participation and your patience. next speaker, please. >> caller: good morning interviews. my name is jason, i believe that housing is a right to be human right. it needs to be owned, operated and built by the people and not for wall street speculators. >> clerk: next speaker please.

>> caller: good morning. i'm calling in support of supervisor preston's proposal. this investment in line with san francisco's climate emergency plan by investing in house and anti-displacement. as it stands now, without public investment, we risk missing our city's goals for adapting to the climate crises. i ask the board to echo support for prop i and support this investment in our future. >> clerk: thank you. next speaker. >> caller: good afternoon. i'm with the san francisco housing development corporation.

we have seen firsthand the importance of this preservation work, specifically. we completed couple of projects for the small sites program in partnership with metta. we finished a month ahead of schedule and under budget. the work can happen if we have the dollars there to do it. we also have the copa legislation in place. we need the dollars to go along with it. we urge you to vote yes on this move it to the full board. we need this money for the support reservation work to help low and moderate income people remain in their homes. thank you so much. >> clerk: thank you for your comments. next speaker.

>> caller: good morning, supervisors. i'm with the san francisco labor council. i want to bottom line this. i just feel like this is essential to helping every day working san franciscans. it's really simple. you're on the side of speculators or you're on the side of working people and staying in their homes. i think it's heartless -- to do this during this climate and urge you to vote yes and pass this legislation. >> clerk: thank you for your comments. next speaker please. >> caller: good morning. i work as a lawyer and real estate broker for nonprofit buyers under the small site program and copa. my prior career i spent 20 years litigating on behalf of san francisco tenants.

it really is important to fund the small size program. this is a vital part of our city defense against evictions. right now, i think lot of us are aware, there are approximately 20 households in severe risk of evictions. these buildings appear to be good candidates for small sites. it's about people. in the buildings are families, service workers, lots of elderly and disabled long-term residents. they will be evicted unless we get one or more nonprofit funds to purchase the buildings. small size doesn't just protect the existing tenants. sets aside the units in affordable housing permanently for generations to come. this funds you allocate will be -- [ indiscernible ] >> clerk: i do apologize, we are timing each speaker at one

minute. next speaker. >> caller: i'm here to urge passage of this item for the city to acquire small family rental buildings. these are funds collected from prop i and it was passed by the board last year. nothing could be more appropriate for these funds that are board and voter-mandated. we have a never again window of

opportunity, make sure money matches our high ideals for equity, affordable housing and for tenant stability. thank you. >> clerk: thank you for your comments. next speaker please. >> caller: thanks. i support prop i. i will be surprised if it doesn't pass out of this committee unanimously. this is a drop in the bucket while it's good and it will help some people, we get our arms around what's happening in our city over decades. you have to figure out a way to stop the amount of mullin that people can make off using land and housing as an investment.

it can be done locally. i know this isn't the budget committee. maybe not the appropriate form. i urge you to think about actual solutions because if this is a mandate when we're hemorrhaging. >> clerk: next speaker please. >> caller: i'm with senior and disability action. i strongly support this ordinance. both for the $64 million for the rental subsidies. it takes a small increase in senior's rent, a senior who's on very low income, social security for her or him to be evicted. it's so important to have rent subsidies. the other $64 million for housing acquisition, it's a no brainer. when we have over 100 buildings in the city that are up for sale, we have to take advantage

of this as soon as possible. we should have done it sooner than that. we need to purchase as much as we can and as a prior person said, this is just a drop in the bucket. we need more and more money to do this now. building new housing is wonderful, affordable housing is good but it's so expensive to build housing now. even affordable housing. it makes much more sense tie inquire as many buildings as we can and help the people who are in those buildings to remain in affordable housing. >> clerk: thank you for your comments. next speaker please. >> caller: i'm a concerned community member living in the mission. i'm speaking in support of funding emergency housing acquisition program to help stop evictions of our families and

elders. there are filipino residents that are at risk of eviction and displacement and both the soma especially on natoma street in the mission. we ask that the city support efforts to stop the displacement of our families with children, seniors and people with disabilities. i hope that the city approves $64 million that will go towards funding the emergency housing acquisition program to purchase existing rental properties. please support this ordinance. >> clerk: thank you for your comments. next speaker please. >> caller: good morning. i live in district 6 in support of this measure to finally begin the work of demonstrating that mixed income social housing can

be part of san francisco's future. i hope that this can be used for social housing that's publicly owned operating even built. i think this is what lot of us expected that we can do something really new and innovative here. i hope we can do this and demonstrate how the model can work and scale up mixed income social housing by using city resources for new construction. thank you. >> clerk: thank you for your comments. next speaker. >> caller: good morning supervisors. i fully support supervisor preston's resolution. the link between real estate speculation and eviction is real. you want to save money and lives, then fund the purchase of existing affordable housing by

purchasing build, like the unit on g street which just came on the market. in addition to my paid job as a gardener, i volunteer to help stabilize elders. we need help. >> clerk: thank you lisa aubrey. thank you for your comments. we are timing each speaker one

minute. next speaker please. turn down your tv. >> caller: one second please. [speaking spanish]

>> clerk: if you could interpret the last speaker please? >> interpreter: of course. hello supervisors, good afternoon, for prop c, we need for fund to be assigned it was intended back when it was approved by the voters to avoid displacement of more families. we believe that these funds must

be used to support supervisor preston's project. thank you. >> clerk: thank you. i do believe there was another speaker on that line? >> caller: yes. i have three more speakers. [speaking spanish] >> interpreter: apologies i was about to ask the speaker to slow down little bit so i can catch the full message. is that all right?

[speaking spanish] >> interpreter: i live this district 10. i have experienced being displaced and this is the reason why i am asking that you support supervisor preston's project to help all the families that have put their trust in you and for all the people that are waiting for this project to be approved.

thank you very much. >> clerk: thank you. >> caller: i have another speaker.

>> interpreter: hello, i live in district 9. as an elderly person, i see that accessible housing is not a reality near san francisco. supervisor preston's project is more of an obligation with our community. you must respect the vote of the people who voted in favor of this proposition and i ask that you do what is morally correct and approve the project. >> clerk: thank you. next speaker please. >> caller: good morning supervisors. i'm co-director council

organization. it's long time coming when voters pass proposition i to see this money going to its proper uses. one thing i like to add what others said, we shouldn't be here every year with something that should be a dedicated funding stream, $128 million total that's here probably growing to $200 million, that's about $1 billion every five years which will be going straight to saving people's homes, keeping them, providing stability. thank you very much. >> clerk: thank you. next speaker please. >> caller: we've been fight, if the creation and preservation

for affordable housing for 40 years. we're strongly in favor of this item. thank you. >> clerk: thank you so much for your comments. next speaker please. >> caller: good afternoon. i'm calling to urge your support to fund the $64 million emergency housing acquisition program. right now, over 100 apartment buildings are on the market. every district in san francisco. that's more than 1000 units for sale housing working families, seniors and other vulnerable households.

we have to make sure we're in this fully funded. that's why i'm urging you to support supervisor preston's proposal to allocate $64 million to the housing acquisition fund. this will give on the promise of prop i to use the transfer tax revenue towards solutions for guaranteed long-term housing and affordability. >> clerk: next speaker please. >> caller: hello. i want to call in support of this ordinance for affordable housing.

i'm a lived experience when i was a kid living in motel. long-term, i would like to see housing production. to bring back and keep our minority communities not being displaced. that's a different topic for sure. i'm calling in support of this ordinance for rent relief for housing. have a great day. >> clerk: thank you for your comments. next speaker please. >> caller: hello, supervisors. i am a proud member of local 21.

i'm a disaster service worker for the city and an employee of the city's human rights commission. i'm calling with strong support for this measure. i thank supervisor preston for his leadership on this preservation measure of housing. it's so essential. this is something that has been called for many years in reports through the city. i have sent a letter. i echo the call many of the commenters today. i want to also point out that our city has been identified as the most intensely gentrified in america between 2013 and 2017. we have had exodus of cities

black and african-american population for decades. we need to invest in our workers. >> clerk: thank you for your comments. next speaker please. >> caller: [speaking spanish]

>> interpreter: hello, i am a leader in axion. i live in district 5. during this pandemic, i was sadly displaced. i have two children who are

minors and currently i am living in a hotel. as a mother, i see in this plan by supervisor preston a lot of hope for families who are also afraid of being evicted or displaced. this is also affecting our children's mental health. i ask that you do the right thing for all our families. thank you very much. >> clerk: i believe there's one more speaker on that line? >> caller: yes, i have three more speakers. thank you. [speaking spanish]

>> interpreter: i will proceed to interpret what the caller just said. hello. i am a leader in faith and axion. i go to the church in district 5. we need for this acquisition plan that supervisor preston is proposing to be approved. it is not fair for people to be evicted. these are houses that our children were born and grew up in. we ask that the plan be approved so that the families can stay in

their homes. >> caller: [speaking spanish]

>> interpreter: hello. i go to san carlos church and i live in district 9. we need for these funds to be used in the way that they were initially approved by the voters to avoid families being displaced. we need affordable housing to be supported. we also need for the funds to be used in the way that supervisor preston had proposed and we ask that you do what is morally right to avoid these families from being evicted. thank you very much. >> caller: [speaking spanish]

>> interpreter: i will proceed to interpret. good afternoon supervisors. i'm from district 11. i'm here to support supervisor

dean preston. the worst virus we can have is indifference towards our community. during this pandemic, i suffered from being displaced. i do not want other people to go through this as well. please support supervisor dean preston and try to give our community affordable housing so they can live with dignity. i hope this touches your heart and you do the right thing. thank you very much. >> clerk: thank you. i believe that was the last speaker on that line? >> caller: one more speaker please. [speaking spanish]

we have two more speakers if it's possible. >> interpreter: i will proceed and interpret. good afternoon, i am a leader in president off the board of

axion. i'm calling in support of this proposition hoping that it passes so that it can become a reality for low income families to be able to stay in their homes and not be evicted. lot of families have been displaced during the pandemic due to their high cost of rent. supervisor preston, we leave it in your hands. we hope that god blesses you and that the funds can be allocated for for the project. may god bless you. thank you very much. >> caller: [speaking spanish]