>> good morning and welcome to the retirement board meeting here in san francisco. this meeting is being held in hybrid format with the meeting occurring in-person and live in sfgovtv. before we begin i would like to remind individuals that the meeting in-person, that all health and safety protocols and building rules must be adhered to at all times. requirements may result in your removal from this room. i will appreciate your cooperation with these important rules and requirements with the interest of everyone's safety. please also note that hand sanitizers are available in every building and mask right

side available upon request at the front desk. madam secretary please call the roll. >> thank you, commissioner bridges. >> present. >> commissioner griscal is absent. commissioner gandhi is absent. commissioner han. >> present. >> president safai? >> present. >> commissioner thomas. >> present. >> thank you, we do have a quorum. >> all right, how many people is that? that's one, two, four. >> four. >> we have four. >> only four, so nobody can go to the bathroom. okay, madam secretary, please call that, thanks a lot scott and aj. [laughter]. madam secretary. >> president if we can schedule the lunch for 1:00 o'clock. >> i'm sorry, i cannot do that

today, i have to be somewhere at 12:30 so we're going to take a break a little bit before 12:30. >> all right. >> please call the first item. >> communications, we welcome the public's communication during public comment. there will be an opportunity to speak after close session and there will be an opportunity to discuss on the agenda. each comment is limit today 2 minutes. public comment will be taken both in-person and remotely by video or call-in. each item the board will take public comment first for people a tenlding the meeting in-person and people attending the meeting remotely. comments or opportunities to speak during public comment period, are available via phone by calling 415-655-0001. access code 24857716691 and

pound and pound again. when connected you'll hear the meeting discussions that you'll be muted and in listen mowed only. when your item of interest comes up, speak clearly and slowly and turn down your tv or radio. please noelt that city policies along with federal state and local law prohibit discriminatory or harassing conduct against city employees or others, and will not be tolerated. public comment are only permit inside matters within the jurisdiction thf body. we thank you for joining us. president fafai? >> yes, let's call the next item madam secretary. >> item number 3, action item, approval of matter 2022 board resolution to continue to meet in-person with some members

possibly attending remotely for at least 30 days pursuant to california code section 54953-e. >> all right. do we need any presentation or was that it? okay, motion made by commissioner bridges, seconded by. >> second. >> seconded by commissioner halfan. we'll take in-person public comment first for this item. anybody in-person public comment. >> we have no in-person public comment. >> please open the phone line for callers. >> thank you. callers if you have not already done so, please press star-3 to be added to the queue. for those on hold, please continue to wait until the system indicates you've h you've been unmuted, moderator are there any callers on the line? >> madam secretary, there are

no commers on the line. >> public comment is now closed. >> great, so there was a motion by commissioner bridges and seconded. roll call vote. >> commissioner bridges. halfan. >> aye. >> president safai. >> aye. >> commissioner thomas. >> aye. >> thank you, we have four ayes, motion passes. >> great, please call the next item. >> next item number 4 close session. >> great. so that's it, we'll move to closed session. thank you. >> we will return once we're >> make a motion we do not disclose our business in the closed

session. >> second. >> can we do roll call first? >> you jumped the gun a little bit. that's okay. secretary, please call the roll. [roll call] >> thank you, we have a quorum. >> there is motion to disclose whether or not to disclose and one has-go ahead, why don't you reiterate your motion? >> i move we do not disclose the business transacted in the closed session. >> great. that's under san francisco administrative code 67.12a. a motion is made and seconded by

commissioner thomas. before we take roll call we'll take in person public comment first. >> thank you, we have no in person public comment at this time. >> please open up the phone lines for callers madam secretary. >> thank you. callers, reminder to press star 3 to be added to the queue. moderator do we have callers on the line? >> madam secretary, we have three callers on the line. not sure if they are here for general public comment though. >> caller, please state your name. your 2 minutes begin when you speak. >> my name is max arnold. can you hear me? >> we can hear you. your 2 minutes begins as soon as you speak.

>> perfect. my name is max, and work at (inaudible) in san francisco. i work as a bread baker. (inaudible) billion dollar real estate firm based out of la. we have been trying to get modest wage increases for over a year in conjunction with the union and by ourselves and they are very- >> sorry to interrupt, i wanted to make note this is public comment regarding our closed session. this is not general public comment. >> okay. >> i'm sorry. please stay on the line, we will have general public comment for the next item, but we are still wrapping up

closed session motions. >> no problem. >> just hang tight, we will be back in one moment. >> i'll hang tight. >> madam secretary, any other callers on the line for commenting on whether or not to disclose regarding closed session? >> moderator, do we have other closed session public comment? >> madam secretary, we have-still have two callers on the line. let me unmute and- >> are their hands raised? >> yes. >> caller, are you making a public comment on the closed session? >> no. waiting for general public comment. thank you. >> thank you. next caller, are you waiting for general public comment?

>> yes. >> alright. moderator we'll continue on then. president safai you want to do roll call? >> yes. please call roll call. [roll call] >> thank you. we have 4 ayes, motion passes. >> thank you madam secretary. please call the next item general public comment. >> thank you. item number 5 general public comment. >> great. any in person public comment today? >> we have no in

person public comment. callers, if you not done so press star 3 to be added to the queue. moderator, do we have any callers? >> yes, madam secretary, we have three callers on the line. >> thank you. first caller, please state your name. your two minutes begin when you speak. >> hi. good morning board members and president safai. my name is matthew torres a working of three years. here to talk to you guys about (inaudible) owned by cim group multi-billion real estate firm. calling because i believe the board 1 million investment doesn't align with socially conscious investment. a report by the organization of african communities (inaudible) eviction at a housing comflex in alexandria virginia. these were

people of color and immigrants and doesn't reflect the board values. the investigation by bloomburg show cim is responsible forgent fiication and displacement in the west adams neighborhood of los angeles duz to investment practice and most importantly according to (inaudible) privately held real estate comments are run by high proportion of white man then (inaudible) i believe that this shows cim does not live up to the board social and governance principle. we are asking the board to investigate the investment to make sure it aligns with our values and values of san francisco. thank you. >> thank you caller. moderator, do we have further callers? >> yes, madam secretary. we have two more callers on the line. >> thank you. caller, please state your name. your two minutes begin when you

speak. >> my name is ed (inaudible) [difficulty to hear speaker] echo the statements of the other 2 folks who called in. like the board to take a look at the cim group the apparent company of (inaudible) in the bay area. both given (inaudible) record and opposing their worker attempts to get pretty modest impruchbments to standard of living and work scissions as well as cmi well documented behavior and fueling gentrification and displacement through property. entirely possible these investments don't rhyme with the board principles so we are here to ask the board to take a look at that investment to see if it is in line with that. thank you very much for your time.

>> thank you for your call. next caller, please state your name. your 2 minutes begin when you speak. >> it is max again. i wanted to echo both matthew and evan's statements. i am not sure that cim practices are in line with the board values and i feel like-the board to investigate. (inaudible) and that's basically it. p thanks again. >> thank you caller. moderator, do we have further callers? you're muted. >> sorry about that.

there is no other callers on the line. >> great. thank you, hearing no further callers, public comment is now closed. president safai. you're muted. >> you heard me though. just kidding. i don't think there is anything else to do other then call the next item. thank you. >> thank you. item 6, action item. approval of the minutes of october 20, 2022 retirement board meeting. >> move to adopt the minutes from october board meeting. >> second. motion by commissioner bridges, seconded by commissioner- >> thank you, we have no in person public comment at this time. reminder to any callers to press star 3 to be added to the

queue. moderator, do we have any call ers? >> madam secretary, we have one person with their hand up and may have been left over from the previous item. >> caller, please state your name, your 2 minutes begin when you speak. >> yeah, i'm left over. max again. >> alright. thank you. >> thank you. >> moderator, do we have further callers? you're muted. >> there are no other callers on the line. >> thank you. hearing no calls, public comment is closed. >> great. madam secretary, there is motion by commissioner bridges and second by commissioner helfond. please call the roll. [roll call]

>> thank you 4 ayes, motion passes. >> wonderful. please call the next item madam secretary. >> item 7, action item. consent calendar. >> motion to approve consent calendar. >> second. >> motion made by commissioner thomas, seconded by commissioner hellfon. madam secretary is there any in public-person public comment? >> we have no inperson public comment at this time. callers if you have not already done so, please press star 3 to be added to the queue. moderator, do we have any 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. >> madam secretary, they just hung up. >> thank you. hearing no further calls, public comment is now closed. president safai. >> please call the roll. [roll call] >> thank you. 4 ayes. motion passes. >> great. next item discussion item. i think we will do the annual esg update, is that right? how much time do you need for

that? perfect. is that too long? >> can i ask a procedural question? >> hold on a second commissioner heldfond, commissioner bridges is asking a question then i'll come back to you. >> (inaudible) >> i think they have to be done individually. >> do they? >> yeah, we had the conversation in advance. each has a separate-but yeah-thank you. thank you for asking that question. i was concerned about that as well. commissioner heldfond? >> same question. same question. >> alright. like minds think alike. what we'll do is is allow you to do your

presentation and then take a break before we go to the action items. please proceed. >> good afternoon commissioners. pleasure to you see in person as i commented earlier this is first time staff present to the board in all most 2 and a half years. in that time over the last 2 and a half years we expanded staff considerably so want to introduce you in person to those that are here to (inaudible) who joined us in august of 2020. adrienne is rare among us in that she is a san francisco native. she worked in (inaudible) state of agriculture and carbon sequestration. bachelor in political science in stanford and finishing up mba (inaudible) today is a esg update day really. in september we focus on plan liquidity and

october risk and november is esg matters. andrew will begin with a overview or review of our esg plat form focus on the three pillars described in the past. provide tangible case studies of our engagement with certain companies and update on the esg integration efforts across the plan, and then update on collaboration and communication efforts with the focus on the esg data convrnsance project as well as net zero 2050 ambition. that as noted will be fallowed by 6 action items where staff will make recommendations regarding the composition of certain restrictiveness within sectors including russian companies, sudan, tobacco, fire arms, thermal coal and climate transition focus on oil and gas companies. before i hand it over to andrew and adrienne i want to make comments about

esg investing generally. as you probably are aware in 2022 the concept of esg investing has been challenged criticized attacked probably more so then ever before and admittedically some criticism is justified while others are wildly mischaracterized what esg investing is. these criticisms stem from trends around for a while actually. these are trends that we have been aware of since we developed the platform in 2018 and trend we avoided. the first is unfortunately what i believe is the over-commercialization of the esg concept and fortunately investment managers have created all sorts of products that have taken esg matters into consideration and are very very superficial

manner. we avoided this because (inaudible) to make sure that when we approach invest in esg oriented strategy they are the essence of the strategy opposed to billions of dollars that have flowed to what we think are fairly superficial strategies. that is criticism of the industry and unmasked a little this year and think it is a good trend people understood there really are esg matters to consider and go beyond (inaudible) with certain investment managers. the second is the politicalization of esg matters and this isn't just conservative or liberal issue, it is across the political spectrum and there is lots of noise about esg investing particularly this year. what i want to reiterate before we go through the review,

(inaudible) developed our esg program. rather, and say collectively including the board and staff, have committed to approach that considers environmental, social and governance matters as a means to evaluate investment risks and investment opportunities. this we believe-this approach we believe is consistent with our fiduciary duties. andrew describes our progress we made as active owners. the progress in integrating esg factors into our risk and return considerations and progress towards net zero ambition is important for everyone to understand the approach is to consider esg matters as risks to be identified measured monitored and managed and to consider matters as a tool to help identify opportunities. despite all the noise particularly this year i want to reiterate that staff and know our board are steadfastly committed

to incorporating esg matters in a manner consistent with our fiduciary duty. with that, i'll hand it over to andrew for our overview. >> thank you kurt. i will share some slides here. sharing some slides here. thank you. good afternoon commissioners. the clock hit 12. annual update on the esg program. similar as kurt was saying to the updates we have done in the various asset

classes and functional areas. this year we tried to change the format a little bit, provide a few case studies and dive if to the initiatives and activities we do to make it maybe a little more tangible in terms of the work we undertake. wanted to start by just reiterating a couple things that kurt said and laying the groundwork that we really try to continue to be a leader as a plan and incorporating esg factors into the way we manage the plans assets. we do this through a 3 pillar program. the first pillar is active ownership. the way we are engaged investors, promoting good corporate governance practice with the managers and underlying companies we invest with. second is integrating esg factors into our investment management process the way we select our managers we

allocate to and ongoing man agement of the relationships and third is the way we collaborate and communicate with our steak holders and other investors to promote sustainability economy. we are committed to really furthering esg integration and executing a range of initiatives on the esg platform and that is what we will update on today. we'll start with a overview of the esg platform then talk about a few progress areas we focused on in 2022, dive into those case studies on active ownership, try to bring to life initiatives and provide update on pillar 2, key actions we have done on our esg integration and investment management process and wrap up with a update on the

net zero asset owner ambition. wanted to put up the esg platform on the screen reminding everybody of the 3 pillars under the esg platform and echo what kurt said in the intro with our esg investment beliefs. we believe factors could be material to investment outcomes impacting risk and return that we achieve from investments but everything we do under this initiative is really anchored in actions consistent with our fiduciary duty and supportive of our efforts to protect and grow the plan assets which i see as our primary social mission at the pension system. we have a long history of doing this, goes back to 1988 when we first introduced our social

investment procedures and over the years we evolved and enhanced the actions under those initiatives. we now call it our esg platform and we moved-focus on primarily exclusionary practices cutting things out of the investment universe to more comprehensive approach that also seeks to integrate esg considerations throughout our entire investment process. in 2022, we made great progress on all three pillars of the esg platform and focus on a couple key thematic areas. one is managing climate risk. the other is good governance practice with focus on diversity equity inclusion. net zero and climate, we continue to make progress on that long-term commitment or ambition to be a net zero asset owner by 2050. couple things we have done is

introduced a way to evaluate our external managers around their climate awareness and their alignment with our net zero ambition. as kurt said we support a initiative called the esg data convergence project that seeks to bring climate data to the private equity space, a area where there isn't a lot of good climate data decision making available. (inaudible) other investors also on net zero journeys to share information and understanding there. on board governance and diversity activities, we really continue to enhance our corporate governance voting guidelines. we raised expectations for our company proxy voting guidelines to raise expectations around board diversity,

executive compensation and place continued focus on proper management of environmental and social risk. also entered the third year of collaboration with 3 other california pensions where we engage directly with the boards of companies that lag in terms of racial ethnic gender diversity. core to the work as asset allocatur (inaudible) as well as ongoing relationship with the managers. we committed capital to sustainability oriented managers and we have on-boarded a technology solution that i'll talk more about later to support that ongoing work. diving into pillar 1 active ownership, i'll highlight 4 case studies, 2 on votes we cast during the year and 2 on engagements

we undertook. so, the first here we have a corporate governance guidelines that we implement to shape the way we vote our proxy at the public companies in the portfolio. we continue to enhance those guide lines as i said and through the end of september this year, we cast 1300 votes against directors in the public equity portfolio due to range of corporate governance board. (inaudible) excesssive compensation packages, lack of board diversity and concerns about things like unequal voting rights. one example of that here is on the screen. this is typical of the way that we approach and implement a vote under our corporate governance program. this is the

company doordash where at their annual meeting in june of this year, they had a board of 8 members and only one of whom is a woman. our guidelines suggest we vote against the chair of the nominating governance committee of that board if gender diversity is less then 30 percent and that's the committee responsible for nominating and appointing new board members to the board. we cast that vote against that chair on nominee (inaudible) 12 percent of other share holders also cast against votes for that candidate. 12 percent may seem low, but it is fairly significant for a director to receive 12 percent against votes. it sends a strong message from share holders. notably, following the meeting in july of this year,

the company did appoint a second woman to the board, ms. ely merfts. this is typical of the votes we cast and think shareholders when they express a concern about governance may impact a outcome. the second example here want to provide an example of shareholder proposal we voted on during this past year. a shareholder proposal is different then a director nomination, which comes from the management of the company. shareholder proposal is filed by shareholds in the company on a range of topics. we supported over a hundred shareholder proposal on the last year on environmental and social topics with things like management

of human right, climate risk, diversity equity inclusion and (inaudible) on the example here is exxon mobile. at the may meeting there was a shareholder proposal balloted that requested the company produce a audited report that explain how a net zero transition could effect the company financial and operational health. we (inaudible) that really seek tuesday analyze such proposals and generally support proposals that we feel provide additional material information to investors around things like climate risk that enhance our understanding how the company manages those risk. this proposal in that evaluation met the guideline (inaudible) or votes in favor of the proposal. it was a

high lee notable vote because majority of shareholders, 51 percent of shareholders also supported that proposal. it was only one of seven filed at exxon that received majority shareholder support so sent a strong message to the company again they should consider such a report and furnish it to shareholders. we are still waiting on the outcome of that report. so, those were two examples of votes we cast. now i want to dive into two examples of where we had direct engagement with companies on environmental and social issues. one is around diversity of boards and we come at this topic with belief

that good governance starts with a strong board and diversity now more then ever is one factor but a key factor in what makes a board qualified and capable of guiding a company to success. engagement we do on the topic is in partnership with other investors so for the last 3 years we have been working with our peers at calpers, cal strs and (inaudible) to engage a set of companies in the portfolios that lag on racial ethnic and gender diversity. during the last year, we had conversations with 57 companies and had great outcomes here in terms of the progress those companies made. across those companies we were 31 additional women aopponented to those boards. 17 of

whom are racially or ethnically diverse and 22 racially or ethnically diverse men were appointed to those boards. in addition to those appointments, a lot of companies adopted new corporate governance guidelines and policies around how they source and select candidates and so i think another important component to this is institutionalizing those practices for strong corporate governance guidelines and committee documents. one example here is with the company monster beverage corporation. we began talking to this company in january 2021. at the time the company had one woman on their board and provided no information to shareholders around how they considered or thought about gender racial or ethnic diversity. in june that year we per the guide pp lines voted against the nominating

governance committee chair due to lack of gender diversity at the company. in september of that year, the company did appoint a woman to the board who identifies as a person of color. tiffany hall. expanding the gender diversity and racial ethnic diversity of the board. the company still of course did not meet our expectations and standards for gender diversity so we had a follow-up conversation where we actually had a conversation with the lead independent director of the company to discuss their practices around board diversity, their policies, how they recruit and how they disclose on this topic. following that conversation in december of 2021, the company appointed an additional woman to the board (inaudible) who self--identifies as hispanic and that

additionally enhanced the gender and racial ethnic diversity of the board. at their april agm (inaudible) they published the proxy statement which now reflected 30 percent gender diversity on the board as well as the racial ethnic diversity they add. they also provided a disclosure of what is called diversity matric showing self-identified gender race and lgbtq status of the collective board. at this point the company now falls off our screen for concerns on this topic from a governance perspective so a great outcome of consistent and repeated engagement and good dialogue with this company. so, last case study here is on

collaborative climate engagement. (inaudible) called the climate action 100 plus, which has mobilized over 700 investors collectively with $68 trillion in upper management to engage the 166 public comment in the world and really understand how they're managing the transition to low carbon economy and engage with them in a way that is beneficial to shareholders. the way the initiative works is the 700 different investors take reengagement positions with different companies to distribute that work among them and focus on key companies in that cohort. we have 15 companies we engage with. we do this as a

lead engageer so where we lead the fl engagement and supporting or collaborating with other investors on the engagement. we primarily talk with oil gas and utilities companies and this is due to the fact we feel those companies have the most significant impact on our carbon footprint and impact on the carbon emission in the real world economy. we prioritized engaged (inaudible) one for oil and gas and one for utilities. i'll provide a example of our engagement with konoco phillips a oil and gas producer we have been engaged in with as a colead engageer since 2018 having dialogue with that company around the way they are thinking about transitioning their business model for

success in a low carbon economy. we have typically two calls a year with that company. this includes executive management team including from time to time with their ceo ryan lamps and we also read statements at the annual general meeting the last 2 years once virtually last year and once by proxy this year in person. some progress i want to highlight on coming outs of that engagement over the last year is one around accountability at the company and so investor suggestion and pressure they are now tying their executive compensation packages to how successfully they reduce green house gas emissions. diversity equity inclusion targets and goals and corporate esg ratings.

second, they established new emission targets. they committed to net zero operational emissions by 2050. they strengthened their interim goals so have a 2030 emission reduction goal and expanded those goals to cover not just the oil and gas assets they own and operate, but also those that they have equity ownership stake in so extending far beyond just their direct operated oil and gas assets. and then third, i think really importantly, they recently joined the oil and gas methane partnership and this is the most stringent global standard around the madgeagement of methane emissions from oil and gas industryment methane as you probably know is the most potent or highly potent green house gas. 30 times

more warming potential then carbon emissions, so really important greenhouse gas for companies to manage and mitigate for us to reduce global greenhouse gas emissions. one of the few north american companies joining this initiative. all three of these activities were things we had dialogue on with the companies over the last several years and really importantly, companies like conoco phillips are responsive to investor suggestions and likely not pursue these without engagement like spers. i want to move to pillar two. esg integration during investment management process. we continue really to embed esg considerations into the way that we--

>> (inaudible) >> screen and select investment managers we allocate capital to. as well as the way we manage ongoing relationships with those managers over time. we now have a standardized process to integrate esg considerations into our underwriting and done that with 42 investor recommendations over the past year that we brought in front of you to the board for approval. we also have engagements with our external managers what we call off cycle so these are conversations not during a capital raising period, but maybe when a manager comes to us for input or suggestion on their esg practices, when we have the opportunity to have a deeper conversation with them give input and also learn what they are doing in terms of improving and enhancing their esg

program. the screen here shows this is a timeline and process we follow for esg, due diligenceintsgration. it starts with a questionnaire we send to managers. they fill out the questionnaire, which our esg team internally evaluates. we have a follow up conversation either virtually or in person to dive deeper and conduct diligence on their esg investment practices. we then draft a memo that goes into the board packet as part of investment recommendations and then we input that information into internal esg database called (inaudible) i'll explain what that is in a second and produce a esg scorecard and record of that engagement and that's accessible to

our team and also each of the asset class teams on that platform. i just mentioned is a new tool we added during 2022 to really improve and bring tech enablement to our esg due diligence process. this allows us to both send our due diligence questionnaire digitally to our managers, but also house all that information in a secure platform that we can access both as i said our esg team and asset class team. (inaudible) a process using excel and word documents and gives us the ability to track progress on esg efforts over time for our managers. we have a series of scorecards that we use internally through this tool and it is really made our

ability to have multiple conversations with many managers (inaudible) and also track progress over time much easier, produce analytic reports and identify areas for follow-up. >> commissioner (inaudible) >> how often do you update the info? >> we have a standardized process for public market managers where they do this annually are. other managers it is more of a ad hoc cadence usually tied to when they come back to market with a new fund. >> i don't know (inaudible)

>> it is a great tool for us to streamline our work. also mention other investment teams have used this for things like rfp or rfi processes to sort of (inaudible) the work we are doing. >> (inaudible) >> and then so lastly, want to provide a update on the third pillar of the program, esg collaboration and communication for sustainable economy. two initiatives under this pillar. really both focused on spers direct activities but also building the broader eco system of data and services and

frameworks we can use to advance our esg program. the first is esg data convergence project. this is an initiative that was started by the carlise group along with calpers and housed by (inaudible) the trade association for private equity limited partners in the boston consulting group is the aim is bringing esg data to private (inaudible) and private credit market. this is a space within our portfolio where we have limited visibility into the esg performance of managers, things like carbon emissions, diversity equity inclusion data isn't normally tracked and reported to lp's so this is a joint initiative of limited partners and general partners to come together and agree on a set of metrics

partners can track and report to limited partners so hugely important to bring that transparency and data for decision making to the private equity space. the focus is 6 core metric. green house gas emission, work related accidents, renewable energy, net new highers so job creation from private equity firms, diversity and employee engagement. we are supportive of this initiative participating in working groups associated with it and many gp's are members and committed to collecting and reporting data through this initiative. and lastly, want to provide a update on the climate action plan. as you know in 2020 march 2020 before

covid shut down we committed or announced the ambition to be a net zero asset earner by 2050 in alignment with the objectives of the paris agreement and general science. consensus net zero by 2050 is necessary to avoid catastrophic impact of climate change. we implement what we call climate action plan to work towards this ambitious. we published that last year and presented that to you at the (inaudible) meeting a year ago. want to provide a couple updates here on progress we made. the first is on progress towards our interim goal of 50 percent carbon reduction by 2025. the chart on the screen--yes? the chart on the screen

here shows that progress and a couple of the lines. i want to highlight is the blue dot is our 2017 carbon footprint and this is the baseline or benchmark we set to measure progress over time and we chose 2017 because that was the year before we really initiated and began the board directed climate actions that we subsequentially have taken. the second blue dot there is a carbon footprint in 2021, the third is carbon footprint today in 2022. that sits about 40 percent lower then the 2017 carbon footprint and well on the trajectory to be 50 percent reduced by 2025 and further our

progress towards the 2030 goal which is 65 percent reduction for 2017 baseline. as you can see, the grow line shows the (inaudible) that's our public equity policy benchmark. in 2017 our carbon footprint was about policy benchmark today is well below that policy benchmark demonstrating the progress we made with respect to our security or (inaudible) selection and allocation. >> is there much more of the presentation? i was timing about 15 minutes. i need to take a break and come back. >> this is the last slide here. >> okay. >> you wanted to wrap up everything. the two other objectives

we set out for 2022 under the climate action plan, we also achieved and made great progress. one is develop a climate aligned evaluation framework for potential and existing investment and you see in board packets now in the esg section it discusses alignment of each investment against our net zero by 2050 ambition and second is if gauge and improve data transpancy for alternative assets classes around climate issues and presentation and data convergence project has made great progress to achieve that objective as well. that concludes the update. happy to answer any questions. >> i like to make a comment. >> we can also

[meeting reconvened] [roll call] >> thank you. we have a quorum. >> great. let's continue-there was questions regarding the annual esg update. we had to put on hold. we have already taken public comment, correct? >> yes. >> i know that commissioner thomas, commissioner bridges and commissioner heldfond all had comments and questions. i will start with commissioner bridges. >> you are muted. >> unmute yourself. she's good. go ahead. >> i made my comments (inaudible) i first

want to thank kurt and you and the team and welcome adrienne to the esg team. i think it is a great report. it is very thorough, and at some point i like to get a demo as i was saying of the system. i think it is great we have this now as a way to respond and get information and as you said not use spreadsheets anymoreism i think it is great and pleased with how far we have come with this platform and program since you have been on board and how (inaudible) i think for most institutional investors we are where they are trying to be so pleased the progress we made and hope we can continue and the outcome with some of the stuff we have done with some of these companies

really-(inaudible) when governance and i think that spers is right on track and think we continue down the path that would be great. thank you. >> thanks commissioner. commissioner thomas. >> thank you president safai. i want to join my colleagues in complementing the esg team for the work that has been put in. the more i learn about esg, the more i become skeptical of some of the items--sticker products that we hear a lot in the commercialization or green washing i heard mentioned earlier, where it is is just sort of a lot of really over-priced products with esg sticker and unclear how they relate to the goals of esg so it was a delight to hear not only the statement of values we are looking to employ the principles of esg and not just find a

product that lets us green wash our own portfolio and also hear about the process we go about doing that so i really do appreciate the work the esg team has been putting entice. i also like seeing the examples where our votes came in. i was looking at the exxon mobile vote 51 percent so this isn't jumping on a wave of something, these are votes that actually matter and coordination matters so good to see that sort of strategic thinking. i did have some questions on our process, especially when it comes to the private side. if we could on slide 15, we talked about our carbon footprint for the portfolio. wondering if mr. collins could explain,

is this our entire portfolio on slide 15 or is this just the public side or the public market side of the portfolio? >> yes. commissioner thomas, great question and thank you for the prior comments. it represents a portion of our overall plan carbon footprint and it covers specifically the public equity and corporate fixed income sleeve of our public fixed income portfolio so it does not represent the entirety of the plan footprint. and this really i think speaks to a lot of work we doing through the esg data convergence project and other initiatives to create a framework and architecture to get esg and carbon footprint data for the private market. there are not regular torry

frameworks today and many companies don't voluntarily report it so we are putting a lot of work in there given the alternative exposure to try to get better access to that data. that said, last year we undertook a exercise to estimate the carbon footprint of the private equity portfolio and looked at analogues of private companies to public companies used assumpsons around it business activities those companies were involved in and it showed spers private equity portfolio given our (inaudible) to tech and life sciences on this estimated basis was about 45 metric tons of carbon per million dollars of revenue. that is the metric we use. 44-our

public market footprint today is about 124 tons per co2 which is much lower then our benchmark then it used to be. this exercise showed our private equity footprint is order of magnitude about a third of again on a estimated basis, a third of our public markets portfolio. so, we do want to get access to the actual and real data to measure and improve that but that was a good indicator based on the sectors, the business activities the types of companies enrolled in the private equity portfolio. >> thank you, mr. collins. another question i had as you were presenting comes up with our due diligence and review process. it appears that the primary steps when we jump into this and i really do like the whole workflow you laid out for us and

the process and especially as commissioner bridges mentioned the diligent software, i think it is really cool to see that we're setting up a way to have record keeping and a process for all this internally. but you did it seems mention that we primarily engage in this when there is new investment opportunity or when an existing investment partner has a new product that they are bringing out, and i guess where my question really comes, we for example heard now for two months in a row about investments with cim where there is allegations of anti-labor and illegal evictions and things like that. i will not ask about cim directly, but what do we in circumstances when we hear-become aware of a existing

investment might have say for example the social element where there is a concern there? does that trigger this whole process or is there a different process? can you elaborate on what happens when we become aware of existing investment maybe having issues? >> sure. i think i can outline that across the full life cycle of our relationship with the manager. the first step i think which is important is that that primary due diligence of our managers really matters at the time we do make that investment. because one of the things we ask about and dive into is how they handle insdants incidents that may arise in the portfolio during the life of their investment and whether environmental (inaudible) the process to manage those and also the process to proactively communicate to their

investors around those issues if they do arise. we hope they don't arise, but if they do arise so that is something we want to get comfortable is managers have the process in place and understand the value of communication and committed to having the dialogue with their investor base. if something does arise during the life of an investment, we do investigate it. we handle it on a case by case basis really due to the nature of the incident, they can very much vary in terms of the type of incident that may occur, but ultimately we are looking for two things. one is it going to potentially impact the investment performance? that is a primary concern for us. as we understand what that incident may

be, how might this effect the performance or investment and then two, what does this say about the strength of the organization and are we still comfort ortable with that organization and can we get a better understanding if and how this may effect the strength of the organization? we often have very good dialogues with our managers. those dialogues can be with our investment teams, certainly including the esg team and as necessary our cio. >> thank you. and then so it sounds like if you become aware you can do a ad hoc investigation and sounds like it follow a similar process of what you laid out here in slide 11? >> yes. that's correct. >> okay. and then my final question has to do evaluating investments that don't provide esg data. we

have seen those occasionally come before us where we read the evaluation and the investment just don't provide data like that. how does your team tackle analysis of these sorts of investments? >> great question. we still implement the same process of sending our questionnaire, assessing responses, engaging with that manager. i think it is important to note that we don't want to be prescriptive around what spers requires or tells managers to do, but really to understand their current process and understand their commitment to topics like this. and so i think given the (inaudible) esg space, we recognize that many of the managers are at various points along their own journey as we have been over the last several years and

involving esg practices. i think there have been several examples where we have been a great partner to our managers to provide input and guidance around the development of esg programs given our purview of seeing many practices across asset classes and manager types. they have come to us and proactively sought out input from us on developing policies, investment practices, use of data, use of consultants, the type of reports they generate. i think we see that as a real win in terms of strengthening relationships between spers and managers we have a lot of conviction in and i think that shows their further commitment to this topic, so that has been i think a key success area for us that played out several times. >> thank you. appreciate it. no further questions.

>> commissioner heldfond. >> i already-i made my statement before we broke. >> i thought you had additional questions. i'm sorry. >> nope. >> okay. we have taken public comment. >> can i make one comment? >> absolutely. go right ahead. >> thank you. this is intent is to wrap up the conversation. being relatively new to this role i had a opportunity to sit down with kurt, andrew, adrienne to analyze and assess the esg program put into place. i want to take this opportunity to thank the board and the team for being leaders. you helped hch you the board helped the organization implement a program in 2018 that was truly leading and we continue to be leaders of the space but importantly also reviewed the approach with the lens of how does our approach consistently work

towards enhancing return and or reduce risk and i firmly believe this 3 prong approach that andrew laid out active engagement with respect to managers and collaborate with partners collectively and emphasize collectively, they all need to be there-we are achieving that goal of enhancing return to reducing risk and having impact and by impact i mean protecting long-term returns of our portfolio so it is a very robust process and one that is well executed. as andrew said, it is not presciptive it is guardrails so we can be thoughtful, work with managers and think how we invest to generate long-term returns. >> if i might add something (inaudible) >> i knew you were going to want to talk. >> i know but i'll make it quick. this

is robust. it is about leadership and see the light of day so the lighter (inaudible) understands that we are meeting or striving to meet the goals. >> great. i want to thank you and your team for wonderful presentation. we had a pre-meeting in advance. i think it's really important to note that san francisco is leading the way in many ways as it regards to this particular section of the investment so want to thank you for the thorough presentation and engagement and work you have done in this area. thanks to quou and you and your team and welcome aboard. alright. next item. >> item 9, action item. annual report and recommendation on

russian restrictions. >> we go back to you and your team. >> yes. we'll leave it up to you board president. happy to provide introduction to the item or leave it as submitted and answer questions. let me know- >> i think it is helpful to have a few words on each item. i think they are important enough it warrants a little discussion. i know some of it will repeat itself, but given what is happening in the world right now and given the conversation we just had i think it is important to emphasize and highlight a few key points for each item. >> sure. happy to do so. starting with our russian investment restriction. we implemented this earlier this year in march after the russian invasion of ukraine. at the time we recommended halting

new investment in russian and actively divesting all (inaudible) by department of treasury and department of state. our managers complied with this request for divestment but i want to note that we hold a few remaining securities valued at zero dollars in an account where the manager unable to transact due to market closures and lack of liquidity. that manager remains committed to existing those positions when they are able to do so. as many know providers like (inaudible) have removed russia from investable universe and so this further contributes to minimizing any russian exposure to spers and for this reason we are unable to really estimate the dollar impact of this investment restriction using our method we do for other restrictions, which

basically compares a russia index to benchmark index. that said, i think we can assume this impact has been negligible going forward due to the fact russia is largely excluded. for the update this year, we recommend slight wording updates for clarity purposes to the criteria we use. those are outlined in staff memo and happy to answer questions on those, but i will close there with those comments. >> just for context, my question is, how much did we have invested that we had to shift in russia or russia related securities? >> we provided a market value estimate as of february 28, 2022. we had $3.2

million of direct exposure to russian securities. >> $3.2 million? >> yes. >> that's it? okay. small. okay. great. any questions or comments commissioners? seeing none, i make a move that the san francisco-motion to move that the san francisco employee retirement system reaffirm the intent to remain divested from (inaudible) adopt 2022 criteria for restriction of investment in russia and russian related sanction securities presented in appendix d. >> so moved. >> alrighty. thank you. madam secretary, please take in person and online public

comment. >> thank you. we have no in person public comment. reminder to callers to press star 3 to be added to the queue. moderator, do we have callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is closed. >> great. motion made by myself, seconded by commissioner bridges. madam secretary, please call the roll. [roll call] >> 4 ayes, motion passes. >> great. madam secretary, please call the next item. >> item 10, action item. annual report and recommendation on targeted restrictions in sudan. >> we had investor restriction in sudan

since 2006, which was really the height of the (inaudible) there wasn't much reconsideration of this restriction until 2019 when the head of state omar (inaudible) was overthrown in a cue. he had been in power since 1989 so this represented sort of the first step in a pathway towards accountability and reconciliation for the country. following that sudan put in place a joint civilian military government and signaled internationally the country was on a path towards democratic elections and civilian leadership. this allowed the u.s. to withdraw its label of sudan as a "state sponsor of terrorism" which is a key step for the country in allowing more international aid to flow in and support

development there. that said, we continue to restrict investment in companies that operate in sudan on a limited basis and we are monitoring progress towards normalization in the country before we might recommend to the board that we remove this restriction. this year we are recommending added two caemps to our restricted list and taking off one company from the restricted list. the details are outlined in staff memo. we had no direct exposure to those proposed new additions and since 2006, we estimated that the sudan restriction had a small but slightly positive impact on overall returns at about $38 million. happy to answer questions on this item. >> any questions commissioners? i'll say i appreciate the update on monitoring

the situation. obviously political and democratic conditions can change and so it is important to monitor. a weak central government doesn't allow for monitoring of human right abused and think it is good we continue to monitor that given the historic political divide in that country, so appreciate that update. thank you. >> move to prove the recommendation. >> second. >> i think [multiple speakers] >> commissioner bridges was in the middle of making a motion, so hold on gentleman. sorry. start from the beginning commissioner bridges. >> i will.

(inaudible) reaffirm intent to remain divested from certain companies operating in sudan and adopt the 2022 list of companies involved in sudanprinted in appendix b. >> thank you. >> staff recommendation. >> second. sorry leona. >> that's okay. alrighty. madam secretary, we'll take in person and online public comment now. >> thank you. we have no in person public comment. moderator, do we have callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is now closed. >> great. motion made by commissioner bridges, seconded by commissioner thomas. madam secretary, please call the roll. [roll call] >> 4 ayes. motion passes.

>> alrighty. next item please. >> item 11 action item. annual report and recommendation on tobacco restrictions. >> we had our restriction in tobacco in place since 1998 when the tobacco master settlement agreement finalized between the largest tobacco companies and many u.s. state attorney general. tobacco continue to be the leading cause of preventable death in the u.s. despite increasingly tight regulations and declining rates of traditional tobacco usage. there has been movement on the regulatory front recently. it is focused on new packaging rules, regulation of electronic nicotine delivery systems referred to as e-cigarettes and regulation of flavored tobacco products. this year we are

recommending slight updates to the restricted list. this is the addition of two companies to the list and updates to the names of two other companies on the list. the details are outlined in staff memo. we have no direct exposure to the proposed new additional companies. we estimated that since 1998 our tobacco restriction has had a small but slightly negative impact on overall plan returns at about $123 million. happy to answer any board questions if there are any. >> what were the two companies? >> the companies we recommend adding are a1 group- >> (inaudible) [multiple speakers] >> there is another one, massive holdings.

>> yes. the other two reflect corporate name changes. we are updating our restricted list to reflect those names. >> okay. good. thanks for highlighting that. any questions or comments commissioners? >> yes, president safai. i had a question. i was wondering- >> commissioner thomas. >> could you tell me again the estimated amount of money lost and give us how long a period that is over? >> the estimated amount is $123 million and that's over the period from 1998 to- >> from 98, okay. sorry, okay. >> (inaudible) the process we use is to

license and index from msci that is our policy benchmark for public equities. subtracting out the companies we restricted and compare returns of those two over that time period and so, this is a truly a estimate because our plan does not invest exactly according to our policy benchmark, but it is the best methodology available to us to estimate the impact. a lot of these impacts also are likely due to compounding effect of this money since 1998. the year on year gains or losses from any of these restrictions is pretty negligible. >> any investment we did that were outside

of that benchmark that may be over-performed the benchmark wouldn't be included? >> correct. this is a sort of simulation. >> i see. alright. i appreciate it. thank you. >> great. any other questions or comments from commissioners? i want to say i think this is an example unlike some of the other areas we monitor a industry that continued to evolve to make itself look worse and worse. they find ways to target young people, communities of color and those that are disadvantaged and poor, specifically to hook them on these carcinogens. rather then a industry that is evolving and trying to do better, they consistantsly try to

do worse. i'm happy that our investment funds continues to insure we are not investing in companies like this. thank you. entertain a motion? >> motion to adopt staff recommendation. >> i think we have to read the language, is that right madam city attorney? move the san francisco employee retirement system reaffirm intent to remain devisted from the u.s. tobacco companies and adopt the 2022 list of u.s. companies involved in the production or wholesale distribution of tobacco products presented in appendix b. second? seconded by commissioner bridges. madam secretary, please open up for public comment both in person and online. >> thank you. we have no in person public comment. reminder to any callers to press

star 3 to be added to the queue. moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is now closed. >> thank you. motion made by myself and seconded by commissioner bridges. madam secretary, roll call vote, please. [roll call] >> thank you. we have 4 ayes, motion passes. >> please call the next item. >> item 12 action item. annual report and recommendation on firearm restrictions. >> we've (inaudible) in firearms and ammunition makers and retailers since 2016. mass shootings and gun violence continue to be a public health

issue in the u.s. yet firearm sales remain strong but they did slow in 2022 after increases through 2020. the biden administration has taken some federal action around gun violence to limit trafficking, straw purchases, and (inaudible) self-assembled firearms called ghost guns. we continue to engage with certain firearm retailers and others in the eco system of a firearm transaction including payment processors and banks. we conduct this work through the principles for responsible civilian firearm industry alongside other pensions (inaudible) this year we are recommending one additional company be added to our restricted list. the removal of one company that exited the

firearm business and update to a name of another company that had a corporate name change. the details are outlined in staff's memo. we had no direct exposure to the proposed new additional company being added. since 2016 we estimated that our firearms restriction has had a small but slightly positive impact on returns at less then 1 million dollars. happy to answer any questions on this recommendation. >> any questions or comments commissioners? alrighty. >> i move that the san

francisco employees' retirement system reaffirm its intent to remain divested from firearms and ammunition manufacturers and retail companies and adopt the 2022 list of restricted firearms and ammunition manufacturers and retailers presented in appendix b. >> second. >> can i have a second? >> sorry, was that you commissioner thomas? >> yeah. >> okay. alrighty. madam secretary, please open up for public comment both in person and online. >> thank you. we have no in person public comments. reminder to callers to press star 3 to be added to the queue. moderator, are there any callers? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is now closed. >> great. there is motion made by commissioner bridges, seconded by commissioner thomas. madam secretary, roll call vote, please. [roll call]

>> 4 ayes, motion passes. >> great. i think next one is item 13. >> item 13 recollect action item. annual report and recommendation on thermal coal restrictions. >> commissioners, restricted investment in thermal coal since 2017 when general consensus was the industry was in decline due to abendant cheap natural gas and strong efforts toward decarbonization of the power sector. this factor hasn't changed but the thermal coal industry rebounded in 2021 and 2022 as energy demand picked up coming out of pandemic, shutdown and the russia ukraine (inaudible)

international energy agency projectss coal demand will increase by about 1 percent in 2022. this year we are recommending added 4 companies to spers restricted list. removing 5 companies that no longer meet our investment restriction criteria, and updating the name of another company, again details are outlined in staff's memo. we have no direct exposure to the proposed new additions to our list. since 2017, we estimate our coal restriction has had a small but slightly negative impact on returns at little over million dollars. happy to answer questions. >> questions or comments, commissioners? seeing none, entertain a motion. >> move to approve.

>> okay. we to read the motion into the record. i'll read it. motion made moved the move that the san francisco employees' retirement system reaffirm its intent to remain divested from thermal coal companies and adopt the 2022 list of thermal coal companies presented in appendix b . second? >> second. >> alrighty. can we take public comment both in person and online? >> we have no in person public comment at this time. reminder to callers to press star 3 to be added to the queue. moderator do we have callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls public comment is closed. >> alrighty. there is a motion made by myself seconded by commissioner thomas. roll call vote,

please. [roll call] >> thank you. 4 ayes, motion passes. >> great. next item, please. >> item 14, action item. approval of annual update on fossil fuel investments engagement and restrictions. >> commissioners, in 2018 we undertook a exercise at the board direction to identify the riskiest oil and qu gas assets in our public market portfolio and to prudently divest them. in order to do so, we developed a novel framework that took into account both climate data as well as financial data to distinguish between companies better positioned for the transition to a low carbon economy versus

those more poorly positions. we recommended the board divest a set of the highest risk companies and undertake direct engagement with another set of companies to try to influence their decarbonization strategy and pathway. this is process we revisited annually since 2018. in applying the framework in 2022, we identified 9 companies where staff recommends the board to continue to restrict investment. these are 9 companies currently on our restricted list. we also identified a set of companies for spers climate transition watch list due to elevated climate transition risks we see in those companies and we prioritize engagement at 7 of those companies where spers has more

meaningful equity exposure and/or ongoing engagement with that company. overall, we've estimated that since 2018 our oil and gas restriction has had a small but slightly negative impact on overall returns at about $3 million. happy to answer any questions on this recommendation. >> i had a question. this gets back to estimating the scope of our losses and pursuing this. i couldn't help notice when we were looking at the russia document and the sudan document and thinking about often there is a correlation we see with fossil fuel industry in certain areas and foreign policy develops, is there any analysis of the sort of by staying away from fossil fuel companies we avoided

potential losses in the case of russia where a lot of investment opportunities there were fossil fuel based and we were not there perhaps because of the steps we started taking in 2018? >> that is not an analysis i'm directly familiar with, but we would be happy to look into that and see if we can provide you any information on that. >> thanks. sorry if that probably not--probably a little speculative but to be able to understand just how much risk we avoid by not investing in areas that seem to pop up in subsequent areas where we need to pull out so love to learn more about that in the future. >> certainly. >> thanks. i can read

the motion. i feel i'm the only who hasn't volunteered yet. move that the san francisco employees' retirement system reaffirm its intent to remain divested from certain oil & gas companies and adopt the 2022 list of restricted oil and gas companies, presented in appendix b. >> great. second? anyone want to make a second? >> (inaudible) >> great. in person public comment and over the phone. >> thank you. we have no in person public comment at this time. moderator, do we have callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is now closed.

>> roll call. [roll call] >> thank you. 4 ayes, motion passes. >> great. next item. >> item 15- >> we have a presentation from our chief investment officer. >> item 15, discussion item. chief investment officer report. >> thank you. today i'll run through three items one provide a brief update on the state of markets, two, talk about how we (inaudible) and three provide a quick update on investments we made

since the last board meeting. really the key take away what is going on in the market, volatility persist and uncertainty. return in october were positive which is very different then what we have seen last month when we went through the returns. there was some gains and some appetite to take risk in october and saw equity markets (inaudible) positive with the exception of china. (inaudible) towards the end of the month did start to stabilize. we are pleased to see positive returns in the month of october. that continued to some extent in november as well, but certainly overall for the calendar year we are still down. why does the volatility and uncertainty persist? (inaudible) they are there in manyacy aspect ozf the market.

economic uncertainty, geo political uncertainty and uncertainty in the market structure. the economic side there is inflation, probability of recession, specific to china, the lock-downs lasted longer then anticipated which is impeding growth and are impeding expectations and also seeing divergent approaches to monetary and fiscal policy. (inaudible) while the prime minister enacted tax cuts and that created volatility in the market place. we have this economic uncertainty combined with geo political uncertainty, russia, ukraine, china, we are through the u.s. midterms. when i put

together the materials we were not there yet but that always creates uncertainty in the market place and combine that with some challenges on market structure and these are managed thus far but it is probably worth noting we saw again in the uk with pensions run if to challenges because they use ldi approach. they had volatility increased in the uk they had to sell bonds to meet margin calls and there was a-they had it step into ameliorate the situation. there were challenges there. based on the uk system, but an indication there are stresses in the market and certainly this last week and a half seeing challenges on the crypto side in terms of the way these

companies were operating. none of those have directly impacted us, but they do impact sentiment in the market place and concerns about risk going forward. what does it mean for us? it means similar to what we discussed last month, it is important to pay attention to diversification and have that diversification volatility persist. that is diversification through asset allocations and investments we have and in sloout absolute return and make sure it has correlation to other asset classes and think you have seen in a number investment recommendations we made the theme is to have a source uncorrelated or lower correlated returns. it also means in this market we are looking to have discussion how we optimize ringe and return in the landscape. are there opportunities to get the return we may not have been able to get a year ago with less

risk? certainly with interest rates and yields up there may be a opportunity there within certain investments for stronger covenants and that is what i think the managers are savey about doing as we put money to work. the other thing we are doing is evaluating the themes the organization moved into and thinking about how they will play out for the long-term but also through potentially volatile or challenged markets in the short and mid-term. finally we heard last month presentation on how we manage risk and i will reiterate here this is focus of the group and we continue to have discussions about risk management and opportunities to continue to make sure we have robust guardrails to manage risk in various environments. together performance which included in the materials to document

the total fund assets are estimated at the end of october, $32.7 billion. given the state of the market again, the performance estimated year to date through october is down 10.76 percent but we (inaudible) diversification and outperform equity markets fixed income market and 60, 30, 10 portfolio having exposure to the diversifying assets and private market assets. i welcome any questions on that, otherwise i can turn to the investment we made since the last meeting. >> any questions? i don'ts think so. it is really a report. this isn't anything specific. why don't we turn to the next portion. >> thank you. so, at the board meeting on october 20, the 2022 the retirement board approved in closed

session investment up to $25 million (inaudible) this investment was approved and (inaudible) $25 million to center bridge close on october 28, 2022. >> that's it? great. not saying that's it. that's a lot of money. not trying to minimize that. okay. i think we have to take public comment on your report. madam secretary, please call public comment. >> thank you. we have no in person public commentt this time. reminder to callers to press star 3 to be added to the queue. moderator do we have callers on the line? >> madam secretary, there are no callers oen the line. >> thank you. hearing no calls, public comment is now closed. >> great. i don'ts think there is anything to debut go

to it next item. >> item 16, discussion item. san francisco differed compensation plan quarterly report q3-22. >> thank you. can you hear me okay? >> we can hear you, thank you. >> excellent. thank you. good afternoon commissioners. i'm aware of the hour and know this is a long meeting so i'll try to make this as quick as possible. is that okay president safai? >> yeah, it hasn't been that bad. >> okay, good. >> we are doing alright today. it is only 2:30. don't feel the need to rush. >> thank you. i appreciate that. we will try and make sure we just cover the basics and most important things to be respectful of time. very excited to see commissioners today. good afternoon. we have a quarterly report which is a more in depth one that covers the 4 main pillars of the plan, which are investment marketing operations and the record keeper.

and so i'll touch on all these very briefly and at the end of my report i will turn it over to mr. bishop (inaudible) he will cover the presentation portion of our plan overview. without further ado, i can begin. up first is investments. we have had a busy quarter on the investment side since the board approved the recommendation to retain t row price. in october after rfp process. since then we have worked closely with the city attorney on contracting and held pick off meetings for implementation. russell has been cooperating with the plan on the transition (inaudible) with t row price on data transfers and setting up white label operations with foya. we are targeting complete transition by june 30, 2023 and will continue to brief the bord on our progress

to date. this is also a great quarter for stable value. as you can see, we received another bump in the stable value credit rate which is 3 (inaudible) total.21 percent which is great news for stable value if ue investors. this rate is guaranteed for the remainder of the quarter and reset for q1, 2023. we also noticed inflow into the stable value fund which holds over $1 billion with a b in assets. stable value is managed by (inaudible) capital management one of the largest stable value providers. happy to announce mike norman has been named sole president. you may remember as the former senior-copresident and presented to the board in the past. andrew owen the other copresident of gal yard moved into a

expanded role with (inaudible) which is the parent company. i'll turn it over to greg ungerman our consultant to provide general commentary on performance numbers which are provided in the activity report at the end of the material for this item. greg, do you want to share a few words? >> thank you diane. good afternoon everyone. as already reported it has been a very volatile market not only for the pension plan but certainly for the dcp participants. i think from a big picture standpoint as noted through the third quarter was a challenging period with both stocks and bonds down double digits. so far through the 4th quarter october and november we have seen bright spots with equity market bouncing back and many active managers adding value over and above the benchmark returns. i will say or note we have seen the bond

market actually show signs of positive returns so far in november. it continues to be a ongoing seesaw effect with the capital markets trying to find (inaudible) our main focus is on the diversification, continuing to meet with the active manager and understand how they implementing their strategies on that longer term more consistent basis over time. certainly happy to answer any specific questions but i think bottom line is the plan seems to be doing quite well on a relative to benchmark basis. >> okay. thank you mr. ungerman. the next up is marketing and communication. october was national retirement security month which is sponsored by congress each year with bipartisan support. the goal is to increase retirement savings and personal financial literacy to

enhance retirement security. encouraged to raise awareness and emphasize the benefit of saving for retirement in a employer sponsored dc plan. as such october is a very busy month for us as we drum up activity and endeavor a new opportunities to promote the (inaudible). this year was our first time back in person with group meetings, benefit (inaudible) and live seminar. you can find more details on the (inaudible) overview of the look and feel in the nsrm deck in the attachment. couple items i like to draw attention to is the feature in dhr all employee monthly e-mail. this new outlet is likely our largest distributor to all prospects and staff spent time cultivating

relationship with dhr so plan is top of mind discussing benefits for employees. we hope to use the channel again when we share the new contribution limits in 2023, then come in person seminar which is very very well attended. i have included a summary on the in person seminar on page 6 and happy to report that nearly 70 people came in person. at the end of the seminar each attendee chose to receive umbrella or mouse pad foun stand as a parting gift. on the spot feedback was positive and many attendees scheduled follow-up meetings with the counselors. we are still sorting through all the feedback including the virtual feedback and plan to report on the results next month. initial year over year comparisons have been included for you on page 7 which shows a 93 percent increase in

nrsm the website page visits and increase of over 20 percent in e-mail open rates, general open rates are already high so the increase is significant and 7 percent increase on participant touches. ultimately this year campaign served as a bellweather for participants and prospect desire for interaction and will identify ways to provide them. now the city is open 2 to 3 days a week we encourage counselors to get back in the field and working on a calendar that shows which location they will be at to drive traffic as needed. also continues to be open for in person meetings on tuesday and thursday from 8 a.m. to 5 p.m. if there are no questions we can move to operations. >> any questions commissioners? okay. please proceed. >> thank you president safai. the biggest

new tier is the irs released increase in 2023 contribution limits. the next year the annual maximums are, $22.500 for those under age 50. $33,000 age 50 and older and $45 thousand for those eligible for special catch up. eligibility depends on normal retirement age so participants should contact the counselor or team to identify the nra. the plan adopted with board approval some of the provisions within the secure act and cares act. and had until 2024 to update the plan document. with the pending outcome of secure 2.0 the irs extended the deadline to november 2026. we'll continue to stay abreast and update the plan document accordingly. finally,

the last pillar is the record keeper who is voya. voya rolled out a (inaudible) for those with salaries under $50 thousand. based on the voya behavioral finance institute partnership with academic researchers they found seeing a penny contribution from a dollar to be more palatable then the percentage of salary for lower income wage earners. voya also rolled out improved user experience and navigation on their plan sponsor website that staff uses which includes data on demographics, contribution trends participant details plan information guides and et cetera. that summarizes my brief quarterly report. i'll turn it over to bishop (inaudible) our strategic relationship manager from voya to walk through a few key points from the attached quarterly plan overview. bishop, please begin. >> thank you diane.

hopefully you can hear me. thank you for your time. bishop (inaudible) voya financial. i want to reference a couple quick slides within the materials that you have. on slide 4 typically what we show on the slide is overall number of accounts the plan has in place on a monthly basis. at the bottom of the slide you see there was a slight increase of roughly hundred new accounts for the month of september and happy to report that is over 170 new accounts in august as well. we do believe based on activities as national security retirement month we carried out and other activities in place we should be on track to another additional 200 accounts by the end of the quarter or have an account to 200 quarter to date at this point in time. we do believe that this activity combined with some of the mayor recent comments with regards to hiring of the city and county will lead to continued growth in the plan or looking forward to reporting on that in the future as well.

on the bottom slide 5 that slide references plan asset levels and you might expect those are continue to be down due to market conditions through september. overall there is a silver lining as we look at this. we do see the drop in assets is lower then anticipated or-reported in the prior month and also i can tell you as of yesterday market closed plan assets are now back over $4.3 billion which puts us back earlier in the summer. on slide 16 wanted to reference to you-skipped over slide 9. slide 9 and this echoes a comment diane made with regard to assets in the stable value fund. we did see inflow into the fund of roughly $9 million in the month of september. total assets in that fund now are 25 percent of total plan assets which is up from 21 percent at the beginning of the year.

moving to slide 21, there are no significant changes with regards to roll over process ed. i did as a point of reference look to the roll over used for (inaudible) service purchase credits. we did have $230 thousand utilized for those purchase credits during the quarter and puts us just under $9 00 thousand in service purchase since the beginning of the year. last slide i want to highlight is slide 29, which goes over the activity of counselors. on that slide you can see one on one meetings up by 147 for the month over the numbers from august. group meetings remain study as well as virtual meetings we are already slightly increased as well over the prior month. we do see increase one on one activity in october due largely to activities carried out in october around national security retirement month and

also examine steps to increase number of group and virtual meetings that are carried on a monthly basis both through the remainder of the year and going to 2023 as well. if no other questions for me or any questions regarding the report, that is all i have to report at this time. >> thank you sir. any questions commissioners? commissioner bridges. unmuted? >> i'm unmuted. >> perfect. >> [difficulty hearing speaker] >> getter getting parts of the comment. >> i'm not on mute either. let me take the mask off. (inaudible)

>> it is commissioner. we would expect a bump both in enrollment and activity generally in that month. unique this month and diane might want to comment as well, but clearly with no activities the past 2 years this year- >> (inaudible) because of covid and all the (inaudible) >> correct. >> certainly commissioner bridges. thank you for pointing that out, because we usually get a bit of the list in august based on the spers statement. the spers annual statement comes with a buck slip that talks about the sfpcp and that is our way reaching out to prospects so get a bump there. you are correct, october is definitely our busiest month and i should have added actually that our in person seminar was brought back by encouragement of commissioner bridges. she has always been a strong

advocate for education for employees and our prospects and because of her we started our first seminar years ago. we were on hold for couple years because of the pandemic so we were delighted to do it again and had an amazing turn out and you can see from the picture as well. >> thank you for the update. (inaudible) good turn out and i think people are still engaged, so (inaudible) thank you for continuing the educational process. >> certainly. >> thank you commissioner. >> i want to ask, do we is still have commissioner heldfond with us? >> we do. >> okay. there he is. okay. thank you.

>> i don't think we take action on that. just presentation. do we-but we take public comment on that. >> public comment, yes. >> please call public comment madam secretary. >> thank you. we have no in person public comment at this time. moderator, do we have any callers on the line? >> madam secretary, we have no callers on the line. >> thank you. hearing no calls, public comment is now closed. president safai. >> next item, please. >> item 17, discussion item. travel expense report for quarter ending september 30, 2022. >> travel expenses.

(inaudible) [laughter] do we have anything to report madam (inaudible) >> thank you. this is a straight forward travel expense report. as you expect, travel picks up-our teams on the ground getting out doing diligence and meeting with managers and attending conferences and all the travel expenses you see here are very much in line with that. >> okie dokey. travel expenses. okay. i don't think we have comments or questions from commissioners. okay. let's go to public comment. >> we have no in person public comment at this time. remeender to callers to press star 3 to be added to the queue. moderator, are there any caller snz >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public

comment is now closed. president safai. >> great. please call the next item. >> thank you. item 18 action item. 2022 review of economic assumptions. >> good afternoon commissioners. this item is a recap of the september meeting discussion item. we ask that the board take action to select the economic assumptions for the july 1, 22 evaluation. the results of the valuation will be brought to the board in february and we have bill hallmark and ann harper (inaudible) say a few words. >> good afternoon commissioners. we are not going to run through this whole presentation, but i wanted to hit a couple slides to refresh our presentation from

september reviewing the economic assumptions. first up, just quickly we are not recommending any changes other then consideration of potential discount rate changes. i'm just going to hit a couple points- >> bill, can you do me a favor, can you get closer to your mic? i'm having hard time hearing you. >> is that better? >> that's better. >> okay. so, not going to run through all the different assumptions. i do want to hit a slide on the price inflation because these days every presentation we talk price inflation and couple slides on discount rate. the question often comes up with inflation rates where they are currently. it was 8 and a half when we

made this presentation. it has come down a little since then, but still very high rates of inflation. how can we assume 2 and a half percent going forward? we presented a number of statistics that just wanted to focus on. this break even inflation, which is the difference between nominal yields on treasuries and tips, and that is sort of an investor consensus measure of inflation. we looked at it over different time periods. if you look at updated version of this it is still in the range of 2.3 to 2.6 percent for all of these measures. we do expect higher inflation in the short-term but as we move out to 5, 10 and 20 years we are expecting inflation to be more in the 2 and a half percent range. i

wanted to hit on the e discount rate just looking at the trends of the assumptions we used compared to the rest of the country. currently we are using 7.2, which is a little higher then the national average of 7. i know since this data was collected there has been some additional movement downward along other systems, but this is still largely the same picture with the medium assumption around 7. we are at 7.2 and the trend [echo] if we look in california, we the last few years we were the highest discount rate when we were at 7.4. we dropped to 7.2. there are two

systems at 7 and a quarter. the overwhelming majority are at 7 or 6 and 3 quarters. then we looked at market expectations from various investment consultants including nepc for your asset allocation and under the current allocation the average was a range over 5 to 10 years of 6.4 percent and over 20 to 30 years of 7.4. we know there have been discussions about potential liquidity issues going flward forward and how that might potentially effect your asset allocation. we know you are just at the beginnings of asset allocation study, but we had put together an

asset allocation that reduced the private equity compount to create more liquidity so you could see the impact of that. and then the-we put projections together under those different discount rates. this slide wasn't in the presentation in september, but provides a summary of the projections that went into the presentation in september with employer contribution rates after cost sharing on the left and member contribution rates on the right under the different discount rates. i think it is worth noting that because of the investment returns in the fiscal year ending 2021, we are expecting contribution rates to go down in most of these scenarios, and these reductions do

take into account returns through fiscal year end 2022. they don't take into account any investment returns since then. so, as you would expect with lower discount rates, you will produce higher expected contributions going forward. so, with that, just our summary, we are not recommending any changes to price inflation, to wage inflation or the amortization payment growth rate. discount rate, 7.2 percent we believe is reasonable. we note a lot of uncertainty in the market with interest rates going up with valuations and price earnings coming down that will effect capital market assumptions going forward, but there is also potential outlooks of recession

and so it is very uncertain going forward. we are not pressing you to make a change in the discount rate, but it would certainly be reasonable still to consider a reduction. with that, i'll take any questions you may have. >> what you just said you are not recommending any changes, but you kind of want us to make changes? can you clarify that last statement? >> in the history of working with this board, you only reduced the discounts rate when we pressed and said there is compelling (inaudible) right now you're at the higher end of reasonable range so it would be certainly reasonable to consider reductions, but given the uncertainty i think for most of the clients they are sitting tight and waiting at least another year to make a

decision. >> can i say something? >> you absolutely may commissioner heldfond. >> i have a question. if you want [difficulty hearing speaker] in terms of time and push this (inaudible) it has a long-term effect on what we will decide and it has a long-term effect on many constituency we represent. what would be in your mind the most conservative thing we could do in terms of making this decision (inaudible)? >> the most conservative thing i think would be to take a step to reduce the

discount rate. >> you have to speak up. >> sorry, the most conservative thing to do would be to take a step towards reducing the discount rate. that provides a greater level of conservetism for the plan. but, given the uncertainty it is reasonable to stay where you are and take a look at that next year. we review this every year, and knowing what your asset allocation is going to be after your asset allocation study would be very important towards making this decision. if you already have a since where you are going with that, that may inform this decision. i don't have a good sense of where you are going. >> (inaudible) in terms of my thinking,

i think (inaudible) making a decision today which i don't think we will but we need input of all commissioners at a board meeting. so, that's the goal in my mind because we all do represent some different constituency and we need at solid growth (inaudible) with uncertainty out there we have to be very cognisant of that. that's just my random thoughts. but i agree with you that we don't jump right now. >> president safai, i have questions if commissioner heldfond is done? >> absolutely. commissioner thomas. are you done commissioner heldfond? >> i'm done. >> okay. >> i similar to commissioner heldfond just had questions

about sort of the opaqueness right now and figuring which way the market is going and how we should be positioned going forward. most things i read and experts i'm talking with are wait and see mode and trying to maybe spend time figuring out the direction that inflation and the rest is all going togo over the next year and waiting to see before they adjust in ort areas. when you included 7.2 as one of the options that you recommended is that the reason-one reason why is that take the wait and see approach to see which way things are going? >> yes. absolutely. i think we look at our data based on the capital market assumptions from beginning of the year. 7.2 is still reasonable but the high end but we know

the market changed quite a bit since beginning of the year. treasury yields were 1 and a half and now they are 3.6, 3.7 and they were above 4. so, there is quite a bit of movement and so yeah, part of the reason we are much softer now then in september is that notion of let's pause a little bit given all this uncertainty and see where things may settle out. >> appreciate that. one of the other things mentioned, this is the last month meeting as well is the role of potential shifts in the future of asset allocation may have on this assumption. one hard thing for me to reconcile is we haven't made these changes to asset allocation yet and i'm not sure necessarily

how they'll go. i understand that if we were to take some hypothetical shift that would impact this discount rate assumption, correct? these three are recommended under thecurrent system but it may change in the future-the recommendation may shift in the future if we shift the asset allocation? >> that is correct. we looked at the asset allocation you have in place and use that as the basis for developing the recommendation. >> i see, so but under the current asset allocation, 7.2 is still one of the recommended (inaudible) >> correct. correct. >> okay. having heard last month's discussion and are this month's i would agree with commissioner heldfond comments that it seems like we may be jumping ahead by trying to shift the-if we were to shift off 7.2, we

would be jumping ahead of that asset allocation discussion and also seeing how the situation will unfold over the next year or so. i agree with commissioner heldfond. >> great. any other comments or questions? this is an action item. actual action item. we have to make a decision what we do with the discount rate and other items and think the recommendation on the floor is to leave things (inaudible) am i correct? how long does that stay in place? >> one year. >> one year. >> it would be from one year from today? >> june to june. it

is fiscal year. >> why are we doing this now? if it is june to june why are we doing it in november? >> we are doing it now because we are preparing the june 30, 2022 valuation and we need to the assumption to use. >> you are fading in and out. i promise i have my volume as high- >> i'm sorry. >> there you go. maybe put on a headset and plug in. that might be better. >> okay. >> go ahead. go ahead. >> it is june 30 valuation so every year we make this assumption review in the fall, and then we- >> you wait for all the numbers to be in that close june 30, you take august, september and october to evaluate the numbers and come present to us in november? >> correct and then that's used to determine contributions for the

following fiscal year, so it is for the fiscal year 2024 that this would-this decision impact 2024. >> right. so do we return to this conversation on economic assumptions in the spring or do we wait until again this time next year to make this discussion? last year-go ahead. >> we can bring this to you as early as july. traditionally we brought around august. we did not have a meeting in august so brought in september. we like the board to be able to think about this and not make a rush decision, which is why we usually bring it back in november for the decision so we don't delay the results of there valuation presented in february and of course the city is looking for at that time the

23-24 employer contribution rates. a decision today would be keep us all on track with our traditional timing. >> do you know if we change the discount rate from 7.2 to 7 how that effects the city's contribution rates and effect employees and what it does overall to the budget for the city? >> we do. >> you want to give that information? >> (inaudible) bill can bring back up again. but it would increase cost for the city. >> my understanding is that 2/10 of a shift represents about a $30 million shift in the city general fund contributions overall. am i incorrect? >> i don't have the dollars in front of me

and our estimates cover all employees but as a percentage of pay what i show if it goes from 7.2 to 7 it would increase the fiscal year 2024 contribution from about 15.2 percent of pay to 17 percent of pay. >> that effects employee and employer? >> that is employer number. the employee number would go from about 9.2 to 9.8. >> basically both people contributions would increase? >> yeah, but both of the contributions are lower then what they are paying in the current year. >> they don't go down as fast as they would otherwise is watt what you are saying? >> exactly. >> (inaudible) it is it numbers they are speaking to.

(inaudible) in 7.0-7.2 scenario- >> what page is that? >> (inaudible) >> does it have a chart? >> it says projections. (inaudible) at the very end- >> that is what i said and you said no. >> projections september 15, presentation. >> that's correct. >> we didn't have a september 15. okay. go ahead. tell me. >> what you can see there in looking at the employer contribution rates the graph on the left in both 7.2 and 7.0 scenario contribution rates do come down and consistently come down. they come down

for the 7.2 percent. >> in affect that is all most like instead of expected continual decrease it isn't decreasing at the same rate. >> it isn't decreasing as much. >> people have been seeing-it is not so it seems as though it is like a increase. i just want to be clear. also that graph is going up on 7 and 7.2. i don't know what rate-that's 2030. [laughter] >> i was focusing from today. >> which is 18.7? >> correct. >> right? and then in 2024-that's a big difference though. if you look at 7 and 7.2

instead of dropping to 15.2, it drops down only to 17 percent. that's a difference. that is significant, which means that the contribution is coming from the city that cover the employer side goes up significantly because their projections is it continue to drop at a much faster rate which means it cost more for the city out of the general fund. i want to get it clear so the commissioners that are here today understand that. we are making all of the decisions financially but i just wanted to put that out there. the remation recommendation to leave the same but we would not come back to this conversation until july, so this-i think what we did last year, you were not here, i think we kept postponing the decision because we were not able to make a fully informed decision because we

had other factors-i think we made that-didn't make it until the spring. >> that was the year before. >> i know, i know. there was gamesmanship going on unfortunately. commissioner bridges. >> (inaudible) is this something we can delay until next month? >> we could but i think there is concensor-i don't know if anyone objects to the recommendation of keeping things pat. we have folks weigh in but we have majority here. if there is somebody that protested this decision-i'm fine if the will of the body to wait to the next meeting when we have all the commissions here, but because i

think the recommendation-the recommendation is to leave things the same. if the recommendations were to change then i would not make this decision today without more commissioners here, but because the decision is to leave the dist count rate the same, i feel comfortable moving forward today, unless somebody objects. >> (inaudible) i think that is the way to go. personally, i think that is the way to go. >> to what? >> what you just suggested. >> to move forward? >> move forward as we are. >> right. that's what i thought. okay. commissioner thomas, do you agree with that? >> i think in light of the fact we haven't had that asset allocation discussion yet and there is still uncertainty and seems our peers are also holding pat until the dust settles it makes the most sense to hold pat ourselves and i would like to hear from janet on this though. i know we

talked to bill but given janet-my assumption is 7.2 is a recommended numbers. i want to-it seems like that is where the consensus is on this and all that and want to hear your thoughts too. >> yes. i'm happy with the board to stayt a 7.2 percent. i'm interested to see where the asset allocation study that comes in 2023 where the decisions that are made then at that time by the board. >> thank you. i'm comfortable staying at 7.2. >> (inaudible) how do you feel? >> thank you. ultimately cheiron subject matter experts with (inaudible) i can comment from

investment perspective and fully support the decision that 7.2 is a reasonable estimation or reasonable number based on all the criteria that everybody laid forth, particularly in light of the volatility and uncertainty in the market. >> thank you. thank you. >> great. i think we have consensus. alright. can i entertain a motion then please? >> i will- >> commissioner heldfond. >> i move that we keep the economic assumptionsprinted as is. >> great. i'll add on to that. for july 1, 2022 valuation wage inflation and amortization payment growth rate of 3.25 price inflation of 2.5 percent and discount

rate of 7.20 percent. so that be seconded by commissioner heldfond, right? >> right. >> okay. madam secretary, can you please open up public comment? >> thank you. we have no in person public comment at this time. moderator, do we have callers on the line? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is closed. president safai. >> great. so, we have a motion made by myself seconded by commissioner heldfond and can we take a roll call vote, please? [roll call] >> thank you, 4 ayes. motion passes.

>> great. item 19. review of quarterly-go ahead, sorry madam secretary. take away your thunder. >> item 19, discussion item. review quarterly retirement services dashboard. >> commissioners, before you you have the quarterly dashboard of the retirement services. it's pretty self-explanetary but to summarize we had a small up tick in membership registering to our portal. we had a slight down tick in september over members logging into the portal and calculating their possible retirements which makes sense because we generally find this up tick at the end of the year and right around in beginning of year and around june when they retire. and then we also had a pretty

significant uptick in usage for our spers connect e-mail. we find that's a really good way for the members to reach us immediately and get immediate turn around and uptick in the appointment not just for retirements but also the service puchss and on the last page we have built out request of commissioner driscoll a little more information the disability cases that have been filed and pending and gone to hearing and happy to take any questions. >> that was fast. >> i tried. >> can you repeat? kidding. any questions from commissioners? [laughter] i know commissioner thomas has a question. no? okay. doesn't seem like that is

action item but we have to have public comment. madam secretary public comment please. >> thank you. we have no in person public comment. moderator, do we have callers? >> madam secretary, there is no callers on the line. >> thank you, hearing no calls public comment is now closed. >> great. let's go to ceo report. >> item 20 discussion item. chief executive officer report. >> thank you. 3 items to discuss here. as usual we have the full calendar including materials and like to emphasize with respect to that i reached out to various committee chairs (inaudible) schedule set up for this 2023 and engaging on the items who have responded and continue hope to get through the calendar so you can plan your

schedules for the coming year. next i like to update you on a couple items. first, as you probably are aware prop a the retiree supplemental cost of livling adjustment did pass with a 64.7 affirmative vote. this will be effective january 1, 2023. what does it mean for us? it means our benefit team has begun the work to analyze what needs to be done to implement that and i'll keep you posted when the work is complete and adjustments are being made. >> (inaudible) >> we don't know yet. they do? (inaudible) >> did you get many calls? >> (inaudible)

we have not gotten many calls. we got one e-mail and then benefits knows and they have talked to their membership so suspect that is why we haven't. >> okay. curious based on the outcome. thank you. >> thank you. that second item to update on the special needs trust ordinance which we discussed last time to amend the admin code (inaudible) we have been informed this is scheduled through the rules committee and we'll keep you posted. >> say that again? >> that the amendment is eligible to be scheduled through the rules committee and- >> what amendment? sorry, i are missed that. >> the special needs trust ordinance. >> the one i put forward? good. >> it would be heard the 28. >> yes. sometimes you guys are ahead of my

staff. that is the issue brought to us. sorry, go ahead. >> (inaudible) >> great. do we have to take public comment? yes, we do, right? public comment madam secretary. >> does commissioner heldfond have a question? >> commissioner heldfond do you have a question? >> did we schedule a personnel committee? >> no, i haven't gotten all responses yet. >> okay. it is on the table though right? >> isent out a doodle. >> i know you did. i'm the only one who answered. >> okay. >> public comment. >> public comment please. >> we have no in person public comment. moderator, do we have any callers? >> madam secretary, there are no callers on the line. >> thank you. hearing no calls, public comment is now closed.

president safai. >> yes. let's go to the good of the order. >> item 21, discussion item. retirement board good of the order. >> anyone have any issues today that they like to discuss? >> yes, mr. president one brief one i like to flag for the board. i just wanted to highlight this is the second month in a row we heard during public comment concerns and allegations about cim group previously was anti-tenant illegal eviction allegations and this month heard about anti-labor practice they are alurjed to be owners of. additionally during our etmooing meeting the san francisco labor council published a letter that i'll

provide to be included with the minutes but send for distribution where they all or the cochairs demanded that the retirement board investigate into these allegations to see whether or not participant funds are being utilized in violation of our social and governance priorities and to take appropriate action on this. what i would plike like to do is ask staff to conduct some research on our engagement on this and to provide a report back to us at our next meeting to see how involved our funds are in this and whether or not these allegations against cim come into conflict with our esg evaluation. similar to what we saw today. the evaluation process that was presented to

us today. >> (inaudible) >> we will follow up on those items. >> thank you. great. anybody else? >> move to adjourn. >> i'm going to make a comment myself. i'm sorry. i want to make sure you all had-commissioner bridges. >> mr. president and maybe i missed this- [difficulty hearing speaker] >> sure. the city and county is requiring 3 days a week return to office. i think on staggered schedule and think they differ to supervisors of

different areas. that is people working in offices. there is hundred percent return to work for people that vast majority of city employees, police officers, firefighters muni operators, labor, people on the streets working for public works. this is mainly for office employees so they definitely have in terms of commissions and departments, they only allow for remote access if there is a verifiable covid related reason. some city attorneys are stronger enforcing that then others. just kidding. [laughter] but that is the rule, and so part of the reason why couple commissioners were not here today because it was not covid related and so you center

have covid related reason whether directly you are caring for somebody. yeah. and but that is the intent. our emergency order is intended at least from the state intended to be lifted in february and the board of supervisors has a resolution that will be considered very soon to completely remove in public-excuse me, online public comment. we are going to be considering that as we moved away from and most departments are encouraged to come in person into committee. is that the update you were looking for? yeah. i will just say i know we were talking about it in the beginning but we had a hearing in budget and finance yesterday. there was response from the city economist that talked

about the projected loss in revenue related to lack of office occupancy. we project office occupancy-office vacancy to rise about 30 percent and it will remain worst then the.com bust and worse then the great recession and the resiliency or the ability for people to come back, the nature of office work has changed dramatically in this city and so some of the over-reliance on information technology and professional services puts us in a very vulnerable position. the projected loss in property tax revenue just in the traditional downtown core is projected to be anywhere between 100 and $200 million. that is just property tax. that isn't property transfer tax, that isn't gross receipts tax, that isn't other business

taxes, so our budget for the city will be facing some very dire numbers and consequences, which then will impact hiring decisions, vacancy decisions and basic public services in the city. we are intending to have a very robust conversation. we have a working group that involves business, labor and multiple sectors and we'll come up with recommendation to the board of supervisors in terms of tax incentives and other incentives, but it is part of the reason why the lack of engagement or lack of return to work even on a staggered schedule has a massive ripple effect in our economy from the public transportation to small businesses to our tourism to all of the inputs that go into our gdp here in san francisco. that

is a side note. the two things i wanted to talk about-thank you for bringing up the special needs item. we will be there and don't-do you intend to attend that day? okay, good. we will coordinate on that. looking forward to fixing that wrinkle in the system to insure people can beneficiaries of those type of significant need wont jeopardize their government support for their disability as it relates to their retirement. that was one thing we have worked on, so thank you. secondly, thank you madam ceo/cio highlighted prop a. it was a collective effort. city attorney did tremendous work working with representatives from organized labor. myself and commissioner stansbury

and heldfond worked on that item, protect our benefits if they are listening they are not here today but worked collaboratively with us. we worked with our controller, and it was in my opinion something long overdue and just for the record, as i understand it one of the first times in the city history that there was a benefit that is afforded to beneficiaries taken away regardless of how the court decisions came down. it was something that had been afforded and removed and so we did everything we could to mitigate the cost to our system here as well as the system the financial system in san francisco. very proud of the work of everyone that was actively involved in helping move that forward and having that resolved and 65 percent of the voters of san francisco agreed and so we are very happy. we also were able to work out

the going forward the ceo/cio position and that is something also we worked collectively on so that is now codified in the city charter and again thank you for all parties involved. (inaudible) commissioner stansbury, commissioner heldfond and others that worked on that organized labor. everyone able to-everyone played their part in helping get prop a forward. once we got on the ballot it seemed pretty straight forward but getting it the ballot was not easy work. it was-commissioner heldfond did you want to add something? >> it is a journey. >> i think that would be one thing i feel good about in my time as president of this body we were able to resolve so i think that is a good step forward. other then that, that's it. we

will-we have a meeting in december is that correct? >> yeah. >> president safai, i just wanted to briefly mention one thing that was really impressive about that whole endeavor was the work that your team was able to do with organized labor around crafting and trying to work on this. it was just seeing the amount of time put into that was very impressive. >> thank you. definitely a group effort. everyone involved. everyone played that part. anyway, okay. that's it. i don't think we have anything else. i think commissioner heldfond made a motion to adjourn. >> could we get public comment on-good of the order? >> i think we did didn't we? we did and then we came back to

more comments. okay. alright. i think the next item is adjourn. commissioner heldfond made-i don't think we need a motion. we are adjourned. [meeting adjourned]

>> driver, bye. >> hi. i'm will b. mixture weltake a walk with me. >> i just love taking strolls in san francisco. they are so many cool and

exciting things to see. like -- what is that there? what is that for? hi. buddy. how are you. >> what is that for. >> i'm firefighter with the san francisco fire department havings a great day, thank you for asking. this is a dry sand pipe. dry sand pipes are multilevel building in san francisco and the world. they are a piping system to facilitate the fire engineaire ability to pump water in a buildings that is on fire. >> a fire truck shows up and does what? >> the fire engine will pull up to the upon front of the building do, spotting the building. you get an engine in the area that is safe. firefighters then take the hose lyoning line it a hydrant and that give us an endsless supply of water.

>> wow, cool. i don't see water, where does it come from and where does it go? >> the firefighters take a hose from the fire engine to the dry sand pipe and plug it in this inlet. they are able to adjust the pressure of water going in the inlet. to facilitate the pressure needed for any one of the floors on this building. firefighters take the hose bunked and he will take that homes upon bundle to the floor the fire is on. plug it into similar to this an outlet and they have water to put the fire out. it is a cool system that we see in a lot of buildings. i personal low use federal on multiple fires in san francisco to safely put a fire out. >> i thought that was a great question that is cool of you to ask. have a great day and nice

meeting you. >> thank you for letting us know what that is for. thanks, everybody for watching! bye! [music] learned and expand

it across the city. [♪♪] the tenderloin is home to families, immigrants, seniors, merchants, workers, and the housed and unhoused who all deserve a thriving neighborhood to call home. the tenderloin emergency initiative was launched to improve safety, reduce crime, connect people to services, and increase investments in the neighborhood. >> the department of homelessness and supportive housing is responsible for providing resources to people living on the streets. we can do assessments on the streets to see what people are eligible for as far as permanent housing. we also link people with shelter that's available. it could be congregate shelter, the navigation center, the

homeless outreach team links those people with those resources and the tenderloin needs that more than anywhere else in the city. >> they're staffing a variety of our street teams, our street crisis response team, our street overdose response team, and our newly launched wellness response team. we have received feedback from community members, from residents, community organizations that we need an extra level and an extra level of impact and more impactful care to serve this community's needs and that's what the fire department and the community's paramedics are bringing today to this issue. >> the staff at san francisco community health center has really taken up the initiative of providing a community-based outreach for the neighborhood. so we're out there at this point monday through saturday letting residents know this is a service they can access really just describing the service, you know, the shower, the laundry, the food, all the different resources and referrals that can be made and

really just providing the neighborhood with a face, this is something that we've seen work and something you can trust. >> together, city and community-based teams work daily to connect people to services, good morning this will meeting will come to order welcome to the november 17th, 2022 the government audit and oversight committee of the board of supervisors. i'm supervisor pret own joined by vice chair connie chan and supervisor catherine stefani. our clerk is stefani