halphen. i isn't society. i mr thomas. i thank you absolute size motion passes. so um, we will move into, um called sessions versus item number three a. b and c and we'll meet you there. everybody.

>> commissioner bridges. >> aye. present. >> she is here. >> commissioner driscal. >> here. >> commissioner gandhi? >> aye. >> president >> present. >> commissioner thomas. >> present. >> thank you, we do have a qualmer. >> okay, so we're back to general public comment. >> you're making a motion to vote. >> oh sorry, let's make a

motion, can i have a motion to vote to whether disclose discussion from closed session. >> i vote that we do not disclose matters of the closed session. >> okay. >> okay, madam secretary, can you please call public comment before we vote on that. >> yes, thank you. moderator, do we have any in-person speakers? >> for this item? any members of the public wish to comment on this item? seeing none, can you please--le >> general comment, right? >> yeah. >> yeah. >> madam, secretary, can you please see if there is any online public commenters for this item? >> callers, if you have not done so, please press star-3 to be added to the queue. if you have on wait, please continue to wait until you've been moderated. >> we do have two callers on

the line. i'm going to unmute the first one now. >> thank you, caller? please state your name, your two minutes begin when you speak. >> speaker: hello, can everybody hear me? >> yes. >> speaker: hi, i wish to general public comment, is now the time for that? >> no. >> that is the next item. >> okay, i'll just hold off until then. >> thank you. moderator, do we have any other callers? >> yes, there is one more caller. >> caller please state your name, your two minutes begin when you speak. >> speaker: okay, i just got unmuted but unmuting is wait. this is patrick shaw, i'm having difficulty speaking. i had cancer surgery last october on my face. so, it's difficult for me to

talk. on public comment, on your motion, to disclose or not to disclose, it's really appalling that whatever lawsuit, assistance district attorney,ing deputy city attorney, henry lipton filed against the retirement board is not available publicly. i've tried searching it online to see why a city lawyer would be suing the retirement board. you need to disclose what this lawsuit is about. in the interest of member benefits and retiree interest in potential use of funds to

settle a lawsuit against the city lawyer, this is ridiculous. thank you. i yield. >> thank you for your call. moderator, do we have any further callers? >> yes, we have one more caller on the line. >> caller, please state your name, your two minutes begin when you speak. >> caller: i'm speaking, but i would like to speak on the general public comment. >> okay, that is the next item, sir. >> caller: oh. >> thank you. moderator, do we have any further callers? >> madam secretary, there are no other call irz on the line. >> thank you, hearing no further calls, public comment is now closed. >> thank you, madam secretary so there is been a motion by commissioner heidfond not to

disclose the matters in closed session. and that motion was seconded by? commissioner driscal. can you call the roll. >> commissioner bridges. >> aye. >> commissioner driscall. >> aye. >> commissioner gandhi? you're muted, commissioner. >> her computer slowed down for a second, can you come back to her? >> president safai? >> aye. >> commissioner thomas. >> aye. >> commissioner gandhi? >> aye. >> thank you. we have all ayes, motion passes. >> great, so madam secretary, can you please call the item general public comment.

>> yes, item number 4, general public comment. >> any members of the public that wish to comment on this item, please come forward. looks like we have in-person. >> speaker: can you hear me okay? >> yes. >> speaker: it's nice to be here in-person. so many thanks need to be said at this time. the retirement system for the transparency for always helping us and our quest to try to restore the supplemental cola for people who retired prior to 1996, they gave us numbers, they gave us everything we asked for to try to get the proper information to educate not only the public but the board of supervisors, the elected officials. i would like to thank ahsha

safai, so after a lot back and forth, we were able to get the support of the board of supervisors. we got the republican party that bernie, we got the whole city behind this and we were very thankful to see that it passed at almost 66% unheard of. so i thank you all for your great stuff. everybody here, had a role in it. would i like to thank brian stansbury who is stepping down as a trustee. he helped us during the years. i wish him well for his retirement. i think you'll announce his replacement and i hope that it's something to do the job as

well as he did. trying to advocate for new staffing positions and i'll try to do everything i can to move that forward. once again, thank you all. nothing further to say. >> any other members of the public in-person, public comment? seeing none, madam secretary, see if there is any on like public commenters. >> thank you, and a remind to press star-3 to be added to the queue. moderator are there any other callers. >> we have two callers on the line. >> thank you, caller, please state your name, your two minutes begin when you speak. >> caller: thank you, i just this is patrick again. i will be sending 150 written comment from minutes.

i want to read a short statement where as, city policy for nearly three decades after the board of supervisors about to board resolution 270-96 on march 26, 1996. and mayor willie brown signed it into law on march 28, 1996, resolving that it is the policy at the board of supervisor of the city and county of san francisco to call in telephone system, we developed to make public comment to increase public conversation and city development. i'm asking verbally for a reasonable accommodation because of my speech difficulties. i cannot stay on the phone until you get the item number

18, but i want to encourage the retirement board to take the lead in increasing public participation in city government by retaining the dial-in remote phone system after march 1st. many many retirees are simply enable or disabled to be attend coming down to market street for their input in meetings. so it's really critical that you consider extending the remote call-in beyond the end of february and going forward. i can't imagine that it could be cost-prohibited. i would assume the cost are nominal considering the amount of money that you take out of

retirement system to fund, paying for retirement department employees. so this cost would be negligentable and i urge you as a matter of conscious to approve extending the remote call-in when you do get the item 18. thank you for your time. and i yield the rest of my public comment. thank you. >> thank you, for your call. moderator, are there any further callers? >> madam secretary, there are no other callers in the queue right now. >> thank you, hearing no further callers. >> wait, somebody just raised their hand. >> alrighty, caller please state your name. your two minutes begin when you speak.

>> caller: hi, can everybody hear me? >> yes, go ahead please. >> caller: thank you, and good afternoon and thank you for this opportunity to provide public comment. i'm sasha and i'm the state policy manager at communities together. dedicated to improving the lives of african immigrants in the u.s. and we support those who wish to fight for their rights which is why we're here to talk about the effects of your investment in the cm group. invested 931 million dollars into cim, a company that has fought to make a profit who have mistreated blue caller workers. today, you will hear from another tenant about cim's predatory actions and i'm here to build on their story on how cim's violates law.

as a result under section 4024 a of the care acts, provide tenants with 30-day notice today vacate. instead, cim gave tenants 5 days. after cim, towers, they brought over 500 eviction proceedings against the residents, from 2020 to april 2021. we have filed a complaint with the finance agency. and if they file in favor of the klaint, they can ask for all 436 million dollars to become immediately due. i bring all of this to your attention, because as pension investors you have a if i --fiduciary duty to the public who entrusted you with your

money. use your power to get cim dis en franchise communities. thank you for your time. >> thank you for your call. moderator, are there any further callers? >> madam secretary, we have one more caller on the line. >> thank you, caller, please state your name. your two minutes begin when you speak. caller, are you there? caller, please state your name. moderator, it seems like they stepped away.

caller, are you there? >> caller: this is patrick again, somehow the moderator had me in the queue twice. it's okay, i already spoke. >> alrighty, thank you, sir. moderator, are there any other callers? >> caller:can you hear me? hello. >> hello, caller, state your name, your two minutes begin when you speak. >> caller: [indiscernible] hello. >> please proceed. >> hello, please proceed. >> caller: okay, and thank you for this opportunity to provide public comment on investment in the cim group.

i'm a tenant at southern towers. thousands towers is a complex in virginia. tenants have made with cim to concern and explain. but we still find our service dealing with rent increases that unaffordable. our community seen rent increasing range froming 6% to 20% and our parking fees nearly double. additionally while ranges to be all inclusive, cim is making us to pay for utilities, even though our rent has gone up significantly, this pricing practices makes it clear that cim prioritizes profits for human lives. also to deal in their unit that

cim consistently does. the problems used to be so wide that we cannot only draw the conclusion that if somebody goes with it, the system, as you can imagine, this has impacted the quality of life for a lot of tenants. we are already working hard to make with the rising cost of living. we should not also forced landlord to compare them to do their job and provide us with habitable living conditions. we're facing a housing crisis and you're in a unique position to help. we are asking you not to invest in cim in the future. we're asking you to contact cim and demand that they take our request seriously. >> thank you. >> caller: with the dignity and respect that we deserve. thank you for your time.

>> thank you for your call. moderator, do we have any further callers. >> madam secretary, we have no more callers on the line. >> thank you, public comment is now closed. president safai? >> great. so the public comment is closed, please call the next item, madam secretary. >> item number 5, action item. approval of minutes of january 19, 2023, retirement board meeting. >> i move to adopt the minutes. >> i move to approve -- ~>> the motion was made by commissioner bridges seconded by commissioner heidfend.

>> moderator do we have any in-person speakers? >> moderator, do we have any speakers. >> we have no in-person speakers at this time. >> thank you, do we have any callers on the line? >> madam secretary, we have two callers on the line they may be holding on for public comment, but i'm going to unmute the first one. >> madam secretary, please. >> thank you. >> thank you. >> caller: this is patrick again, the moderator has me on the queue again. even though my hand is down. thank you. >> moderator, do we have any other callers.

>> there is still one caller on the queue, let's see if they want public comment. >> please state your name. your two minutes begin when you speak. caller, are you there? moderator, do we have any further callers? >> madam secretary, there are no further callers on the line. >> great, so motion has been made and seconded by commissioner heldfond. please call the roll. >> commissioner bridges?

>> aye. >> commissioner driscoll? >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond? >> aye. >> president safai? >> aye. >> commissioner thomas? he must have dropped off, we do have 5 ayes, motion passes. >> great. please call the next item. >> approval of consent calendar. >> great. >> so is there a motion to approve the consent calendar. >> i move. >> second. >> motion made by commissioner bridges, seconded by commissioner driscoll. madam secretary, please call public comment. >> thank you.

moderator do we have any in-person speakers? >> we have no in-person speakers. >> thank you. do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you, hearing no callers, public comment is now closed. >> great, motion has been made by commissioner bridges, seconded by commissioner driscoll to approve the consent calendar. please call the roll. >> commissioner bridges. >> aye. >> commissioner driscoll? you're muted. >> aye. >> thank you. >> commissioner gandhi. >> aye. >> commissioner heldfond? >> aye. >> commissioner safai? >> aye. >> commissioner thomas, is gone. we have 5 ayes, motion passes. >> secretary please call the next item. >> item number 7, discussion item, proxy voting report for

calendar year 2022. >> wonderful, there is a presentation. >> thank you, good afternoon, as you recall, collaboration will be contributed to and foster a financial market on a had ho lis tick view of risk. management will identify and manage gse risk and opportunities throughout their invest process across all asset classes. and finally active ownership will influence outcome that's can improve long term financial performances, specifically our public equity portfolio. we speak with companies directly on letters, common

letters with are policy regulatory. so which brings us to our two items. each year, we have two action items to present to the board. the first is discussion item where we'll review the proxy voting season, proxy votes for prior calendar year and we recommend incremental policies. so we'll hand it over to present the first item which is review of our proxy votes. >> thank you, kirk. good afternoon, commissioners. as kirk said, each year we present a report on shareholder votes that occur during the previous calendar year. le where we remain voting rights. during 2022, we voted at around 14,000 proposals at over 100 meetings. this is around the same number that we voted on in 2021.

60% of those votes occured for u.s., with a balance between europe china and rest of the asia and small numbers in other markets like north market. we supported about 85% of the proposals that were management and about 50% that were validated by shareholders other shareholders in the companies. the report, provided provide that summary of general observation, as well as our voting record in more detail. and i'm happy to answer any questions that the board may have on the content. >> thank you. commissioners any questions? about the proxy voting or any other item? okay. seeing none.

madam secretary, is this matter an action item? we have to take public comment for this item? >> yes. >> madam secretary, please call public comment. >> thank you, moderator, do we have any in-person speakers. >> can't hear. >> moderator? >> no, there are no in-person speakers. >> thank you, moderator do we have any callers on the line? >> madam secretary, there are no public comment on the line. >> hearing none, that item public comment is now closed. >> next item. >> item number 8,ing proxy voting guidelines, 2023. >> good afternoon, as kirk inindicated, we bring the review of first proxy voting guidelines which are guidelines that we use and follow forecasting our votes at chair holder meetings.

for 2023, we're proposing 7 updates to these voting guidelines. all of which i can characterize as important updates that do not represent changes the guidelines. six are the way that we vote for board of directors of companies. and one relates to the rights of shareholders in those companies. we have a board that has changes as well as rational for each of the changes and then two versions of the proxy guidelines. one that shows proposed updates in changes and then the other which is a clean version that would be the version for adoption in 2023, should the board approve it. happy to answer any questions on the proposed changes or any other aspect. >> i would like to move that we

pass--commissioners. with a comment? [audio breaking up] i would like to make a comment that presentation of the changes that you're making and red line if you will was very helpful, i appreciate it. >> that's nice, anyone else, any other comments? >> i just want to understood, there is a couple of guidelines that are still be drafted, correct? 6-1? the way it's written. >> happy to clarify it. election of directors.

it was the 6-1 some continue to be worked out. sorry i don't have any hand on the page. >> if i can't get it down, it will interfere with the motion that was made. >> i think there is a motion in order. >> i made a motion. >> motion made by commissioner alfon to approve proxy guidelines for 2023 for san francisco employees retirement system. is there a second? >> second. >> second by bridges, madam secretary, please call public comment. >> thank you, moderator do we have any speakers?

>> madam secretary, we have no speakers. >> thank you. 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. >> great, so there is been a motion by commissioner heldfond and seconded by commissioner bridges to approve the proxy guidelines for 2023. roll call vote, please. >> commissioner bridges. >> aye. >> commissioner driscoll. >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> president safai? >> aye. >> and commissioner thomas is not here, that's 5 votes. motion passes. >> great. madam secretary, please call the next item. >> item number 9 discussion item, chief investment officer's report. >> great. >> thank you.

>> i hope given the length of the agenda, we have teams clear and focused on the presentation and i'm going to do the same with the cio report. so i'll do the bear minimum. the fund value as of january 31, was 22.3 billion and two items that were approved in closed session that i will update you on. first blue torch credit opportunity at the january 19th retirement board meeting, the board approved a close sessioned investment of up to 65 million in blue torch interest opportunities, including february 2, 2023. it's classified as a credit opportunity investment within

our private credit portfolio. secondly, institutional venture partners at the board meeting in january 19, 2023, retirement board approved in closed session the investment of up to 75 million to venture partners. 18 and the investment of 50 million on this fund february 3, 2023 classified as a capitol investment within the equity portfolio. i certainly welcome any questions or comment. but those were the main items from the cio report. >> just in terms of our total fund value, does that increase or decrease? >> sure, the some strength in the equity markets change on a day-to-day basis we have known assets with some of the market recovery. >> are we trending up not as

much but we're trending up? >> yes. keep in mind because a large of our private markets, there is a lag in the valuations, so it does not request any change in the market value in those areas. >> i just mean since the beginning of the year and we kind of ended the year with a fluctuating year given the market. >> we'll have more assets when the market. >> we're trending in a good direction, so far? that's what i'm asking. i think that's what we care a lot about, right? going in the right direction? any other questions or comments commissioners? >> question. the total market value number that is there, does that exclude or included the leverage offset number? sorry, i didn't get the arithmetic myself because the

question then becomes how it affects the market value test for the supplemental cola? is it included or not included? something i would like to know going forward. >> it looks like a negative right there. >> that number should be included in the total fund, specific to the inter cra see of the calculation. >> thank you. >> so about 33 just to be clear, the 3 3000 includes the leverage offset. you're just showing that leverage offset. >> 3 and 3 billion but yeah. >> yeah. >> and hence the question, we're still trending in a positive direction. any other comments or questions, commissioners? >> i have one question. i wrote down two that you reported on. >> is your microphone on?

>> maybe, it is. >> go ahead, sorry. >> venture partners, make sure there are any others? >> there may have been one that came in. [speaking at the same time] >> can't really hear what you're saying. were you intending to be heard or not heard? >> no, i think it has to be recorded at the next meet after the close. so it could be caught up in that one if you want or it can wait. take a break for a moment. >> apparently, there is an investment that may have closed -- ~>> allison i just emailed it to you. >> i have that on my email and i'll read it into the record. >> okay, it's getting a little

confusing. i'm not trying to be funny but when you turn, it's hard to hear into the microphone, so i may get it because i'm in the room but you're not being heard in the mic. so i want to understand the discussion. i think the question was was there an initial investment that closed prior to the report. is sounds like our cio is about to update us on that information, is that correct? >> that's correct. including us getting the terminal--so at the december 15, 2022, board meeting, the retirement approved inve. of up to 75 million dollars to be a lo cuted between mgb capitol 9 plus. and as far as investment 48 million in jjb capital 9 and 12

million february 14th 2023. this is investment cost venture capitol [indiscernible] >> there we go. that was great. closed on valentine's day, hopefully that is a good return. any other comments or questions commissioners? okay. thank you. so madam secretary, please call public comment on this item. >> sure, thank you. moderator, do we have any in-house speakers? >> madam secretary, we have no in-house speakers. >> thank you, do we have any callers. >> there are no callers on the line. >> hearing no calls, public comment is now closed. >> great, madam secretary, please call the next item. >> item number 10, discussion item, conversation plan manager report, quarterly review. >> thank you, can you hear me okay?

>> it is great to see you in-person today. i'll be sharing the quarterly report for the compensation plan. it does cover, i'm sorry. >> what? >> okay, i thought i heard somebody talking, sorry. >> covers four pillars. up first, is investment, the staipable value plan has over 1 billion in assets and increased to 2.65 percent. value is designed to preserve capital with a steady market like return overtime. so it's a good time to note that in a rising rate

environment, rates will lag current interest rates. just like when the rates dropped significantly in 2020, current rates were higher because of this lag. this is also reflected in the memo chart. use of the underlying bond port pole increased slightly quarter over quarter, most recently at 9.9 percent. as negative performance in the bond market, contribute to ratio in the portfolio. the rise more than offset the lower market which enables increase in the credit rate. this rate is guaranteed for the quarter and will reset again in q-2, our stable manager and they're economic has been attached for your pleasure. we also been working very hard on the target date fund from

secretarying to implementation and communications, staff has been working very closely and voy to ensure new transition. currently on schedule to meet our mid-year target and have meetings calendared to benefit from the direction. the second pillar is marketing. the contribution liments have been updated and reflected in the memo before you. the distribution avenue used last october to get the word out. most recently it was featured in the san francisco health services system, january 2023, e news. staff will continue to hunt and pick for other distribution channels to ensure that these employee has at least heard about the plan. for more information, effort will be shared by mr. bishop

who is here with us today as part of quarterly on the plan after this. operation, and had mentioned last month, president bind side 2.0 into law on december 29, 2022, as part of the con toll lated appropriation act. many of the provisions have secured and geared to provide increased access to contribution plans helping to boost participate levels and simplifying rules for americans to have a better retirement. and secure 2.0 was designed to expand on that with a mandatory one being implemented this year and next. the applicable mandatory provision have been captured in the memo before you. and center around our needs and

raw. the age has now been moved from 72 to 73 and will increase again ten years from now in year 33 to age 75. for any rnds that are not taken, the excise tax or penalty tax have been reduced from 50% to 25 percent. while that sounds very good news, it can be seen as a lower threshold and therefore for the irs to enforce the 25% tax. where as they have generally more for giving with the 350% penalty, improvement of intentional. beneficiaries will also have an option to be treated as a participant. this allows to taking smaller withdrawals over a longer period for taxes. just a few more minutes. moving on to, roth, roth contribution right side after

tax differal while contribution are before pay tax deductions. some would rather pay taxes up front so that any, currently if you have a roth contribution in the, you are required to take rnd, unlike a wealth ira, however with secure 2.0, raw contributions under qualified plans like the by no longer required. this provides more incentive for participant to consider making roth differals going forward. in addition, the participant who's earn more than 145,000 a year, may only make roth contributions, if they want to participate in the age 50 plus catch up. that catch up is an additional 75,000 in a maximum contribution to regan you'll ones. this does not apply to the 3-year catch up though.

so for some plans, you cannot offer offer feature, they're, our plan however under the guidance of the differed compensation committee rolled out roth nearly a decade ago, so our impact is minimum. as mentioned, the plan has until 2027 to make these changes in the meantime, staff will confer with large california plans to align on whether to adopt some of the optional positions. and the last pillar commissioner is a record keeper, voya, rolled out and looking for more improvement in 2023. smft new features includes stronger security measures for high-risk transactions like withdrawals. will be added to the participant dashboard to provide spending insides.

there will be compensation for those underage 50, this is is success with their over 50 content rolled outlast year. in addition, spanish language statement will be available later this year for participant who choose this feature. i'll now turnover to mr. bishop, our manager through voya and i asked him to present on the plan with activity and out reach. i believe the commissioners are looking for a high level report here. i am happy to share the screen on my computer if the moderator will give me access, please. thank you.

>> we can't hear. >> are we good? >> yes. >> i'll go over the slides -- ~>> i'm waiting. perfect, thank you. >> on slide four. just a few comments. we did experience a slight increase in the overall numbers for the period of december itself had an increase of 131 new accounts for the month. this continues the positive growth that the plan has

experienced since the end of july, since july itself. we've seen over 400 new accounts added to the plan. and this is mentioned previously to increase hirings and positive activities that occured during october in and around the national security month activity that were carried out. as a result of this activity, the report does show the planned participation has remained steady and at the end of the quarter was 57.1 percent which is noted on the slide 18 for you. on slide 5, just wanted touch on planned assets very briefly. plan assets were supported by market conditions and rebounded in the fourth quarter. as of the end of quarter, they had surpassed a low, that was in queue 2 as of the end of december were 4.249 billion on total. on slide 25, if we can go there

diane. i want to turn your attention to participation activity. they had addressed an average of 1600 calls per month during the quarter. average was just over 11 seconds and the number of abandoned calls throughout the quarter remained in single digits each month. finally the first call resolution remains high as all calls were resolved during the first call into the call center, itself. on slide 29, turning directly to the activity of the counselors. you will note that there was a balance activity both at the end of september and through october. again as a result of the activities for national security month. those, those activities saw a busy period of time. but i do need to report that we saw a decrease in activity for the remainder of the quarter in

november and december. this is primarily due to the holidays themselves and reduced activity of the counselors due to vacation time that they took. but it's concern as we move forward as well. as we look forward, the first of the quarter or the first of the year moving into the new year, we've been work withing diane sfdcp staff to refocus the efforts for 2024--2023. we reminded for the need for service days to ensure that we're meeting with as many account holders as possible. and remindings in the phone conversation to press for in-person conversation with participants as well making sure that they're taking advantage of the opportunity to update the participant on not only their accounts but conversation that they're having but the need to go a

plan review as well. establish a service calendar to ensure that visiting all department sxz locations, this is something where we'll continue to review as we move forward in the year. and we also requested the counselors to contact us with their departmental contact so we can review for accuracy. and finally the fourth quarter which you have a copy of in your pact, continue to push to participant about reminding their blt to review their investment portfolio and take advantage for meeting with the counsel as well and as diane mentioned, we also provided a remainder and also a special catch up contribution opportunities for them also. unless there are any questions,

that would conclude our report for the quarter. >> i have one question, one comment. thank you for putting statements and brochures in spanish as well, it's very useful to our population. >> we have a national, we do have, very language or first language is not spanish or english, that's why our elections officers have to put our ballots in different languages. i'm just wondering, to add one or two additional languages that would help our population. >> sure, this is our conversation that await to look at chinese and other languages as well. there are no plans to do so at this time but i do know that there are plans to review and look at the book of business that we have and determine which language we should prioritize and next language to report. >> excellent, thank you. i should not be surprised.

>> secondly, when you, you may not have realized that the board several minutes ago, with actual service, we are forecasting another reduction to the plan [echoing] contributions to the differ comp which is is, i'm just letting you know to get ready for your marketing messages with your counsel as well as any other materials. that's my comment, thank you. >> thank you, i appreciate that direction. >> thank you, so much commissioner. >> commissioner safai, any other questions? >> any other questions, commissioners? okay, great. we can take public comment. madam secretary, please call public comment. >> moderator, do we have any

in-house speakers at this time? >> madam secretary, there is no in-house speakers at this time. >> thank you, and do we have any callers? >> we have no callers on the line. >> thank you, hearing no calls, public comment is now closed. president safai? >> okay, madam secretary please call the next item. >> item number 11, review of basic cola, do 23. >> good afternoon, the orientation has exceeded 2 percent to all should receive their 2% increase beginning july 1, 2023. the difference between inflation of 5 percent and the two percent will be cap will be placed in the cola bank. that is shown in exhibit b of your materials.

>> i move we adopt the cost of living for all the members covered by that. >> second. >> second. >> madam secretary please call public comment. >> thank you, moderater are there any in-house speakers? >> madam secretary, we have no in-house speaker. >> thank you, and moderator do we have any callers? >> madam secretary, we have one caller on the line. >> thank you, caller, please state your name, your two minutes begin when you speak. >> caller: hi i've been unmuted. it's patrick, so again i decided to keep you guys on secret phone. thank you so much for approving

the basic cola affective july 1. although, i'm presenting the term only the at the top of my head. that measure because you really don't have any, rational for not approving it. but, if you would examine your portfolio and get rid of those stupid head fund investments that were dragging the overall return down. if you would invest the edge fund allocation into different vehicles, we might be able to get the supplemental cola paid

out that retiree desperately need to keep up with inflation by getting better yield, better return on investments on other investment vehicles. so, in the interest of getting us that supplemental, please go back to the drawing board and think about divesting from hedge funds at long last. thank you. >> thank you, sir for your call. moderator are there any other callers? >> madam secretary, there are no other callers on the line. >> thank you, hearing no calls, public comment is now closed. >> thank you. motion has been made by commissioner driscoll seconded by commissioner heldfond to approve basic cost of living by

2% payable july 1, 2023. roll call vote madam secretary. >> commissioner bridges? >> aye. >> commissioner driscoll? >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond? >> aye. >> president safai? >> aye. is commissioner thomas back? >> i'm back, yes. >> i thought i heard him. >> okay, we're doing a roll call vote on cola? >> i'm an aye. >> okay, 6-0, motion passes. >> madam secretary, please call the next item. >> item number 12, determination of fiscal year

2023-2024 determination and approval of credited interest rate. >> it's the interest rates that our members earn while certificate of deposit nearly tripled, average rate still remain below the 4% specified in city charter. please accept the interest rate of 4% for the upcoming plan. >> move adoption to continue the current interest rate at 4%. >> second. [no audio] >> president safai, i don't think you could be heard. >> sorry.

madam secretary, please call public comment. >> thank you, mod later, do we have any in-house speakers? >> madam secretary we have no house speakers. >> any callers on the line? >> madam secretary, we have no callers on the line. >> hearing no callers, public comment is now closed. >> we have a motion made by commissioner driscoll seconded by commissioner bridges. roll call vote. >> commissioner bridges? >> aye. >> commissioner driscoll? >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond? >> aye. >> president safai? >> aye. >> commissioner thomas? >> aye. >> can you put your camera on,

we need to see you. >> yeah, it's a signal thing, i'm doing my best. >> we have six ayes, motion passes. >> there you are. >> thank you, madam secretary, please call the next item. >> item number 13, action item, review and adoption of the july 1, 2022 actualial funding valuation report and presentation of 'em employer contribution rates stress test projections. >> here to report and answer any questions. and while share the screen, i've been following the process

of reform hires who we call new plans tier 3. and i want to note that those hired after january, now represent 50% of the normal cost plan. >> thank you, good afternoon commissioners. we have a presentation in your materials, we're going to get a few of the slides in the power point presentation and then take questions on the valuation results. the highlights are in the remains well funded based on the market value on actualial, contribution rates continuing to go down. for this year and will likely continue down at least one more year. then they're expect today level

out, to around 15% prior to. but there is a wide range of potential outcomes. here, the charter on the left is showing the liability and the bars and then the assets and the lines. and the liability increased over the last year, a little bit more than we expected primarily to higher salary increases than we expected. the market value of assets went down due to the investment as you would expect. we're stim phasing in the recognition of the 2021 gains as well as only recognizing a portion of the 2022 losses. contribution rates as indicated are going down from 21.4

percent to 18.2 for employers prior to cost. that decline is both to the investment returns from 2021 still being phased in and we finished paying off for some amendment that's were adopted in 2002 and the supplemental cola in 2017. after that, it doze down from and from 10.2 to 9.8. members who feel the impact are seeing a 50 basis point reduction in their contribution rate. jumping ahead here, our these

are the historical contributions rates and projected. you can see that we've had a long decade with a distribution rates were higher, actually trimming down. not down as much as we had projected after the 2021 valuation but they're still going down a little bit more before they level off. so turn to go ian to talk about a couple of slides that show vair ability based on reports. >> good afternoon, i'm happy to be here. i wanted to talk through this slide which phil projections on the previous slide did not show that basically how little volatility there is going to be in next year's contribution rate with the 2023 valuation which sets the rates of fiscal

year 2025. they also did not show how likely the 2025 rate is to be lower than the current valuation rate of 18.2 percent. this blue line that you're seeing hear represents the fiscal year contribution rate based on a wide range of investment returns. and those investment returns go from negative 15% all the way up to 30%. and this is assuming that there is no surprises that the liability are as expected. so basically any return that is, that is higher than negative 13% is going to produce a contribution rate lower than 18.2 percent. and as the actual turns improve, you see a gradual decline in that expected contribution rate. and then there is this induction point here and this

is the dynamic of the supplemental cola. so between 7.2 percent and 9 percent is when supplemental cola will be payable. but the earnings are not high enough to offset the supplemental cola cost because the supplemental cola costs are paid over 5 years and the fuel gains are paid over 20. the dynamic again, is investment rates, not investment rates but expected increase contribution rate comes down. and we have a cliff here at 21% and that's when the plan becomes fully funded on a actual value of basis, then it just continues to decline with higher returns. so this slide here is showing a range of possible contribution rates over the next 10 years t.does show some history back to 2019.

but these investments scenarios, are on the previous slide if you want to take a look. but they're showing one-year shots to the system meaning very high return of 35% and a very low return of negative 16 percent. those are the negative lines. we have the dark blue line is 5-year moderate, both positive and negative and what would happen to the five-year significant, meaning you have five years of significant negative returns or positive returns. and there is two take aways, the first is there is really a wide range in contribution rates not just that base line of the if you assume that 7.2 percent each year. that's the black line. and then the next take away here in the next three years, you really do have a lot of downward pressure on the contribution rates because of the differed gains.

and then finally, similar to the highlights in the beginning of the presentation, just a touch, just to wrap tup is that the system is very well funded still. 98% and 96% an actual value basis so the ratios are not converging. it's likely that you'll see a decrease in the fiscal year contribution because of the inve.. and there is final payment of 2018 supplemental cola that is going to be paid. that is equivalent to 1.2 percent drop in your contribution rate. so, direct contribution again expect today decrease over the next three years and a slight increase recognizing that fiscal year as 2022 investment loss for this valuation. and remaining relatively level at 15% start ining 2030 and

that's when propositioning b, 2008, was approved and that was 750 million and that will be fully paid. so with that, we are happy to take any questions that you have in the material or any questions that you have in general. >> thank you, and my first question, is just a top on the conclusion less funded, 98% market value market and actualial, that's down from where we were a year at 111 percent, 112 percent? >> on a market basis, yes. >> and on actual actualrial. >> we went up to 6%.

actualrial went up. >> recognize as of market value. for the actual rial we smooth those in the market of assets over a 5-year period, so that's going to be much less volatile. >> but in terms of our big talking points and one of the things that we tell everybody in terms of how we determine our employer contributions.

quick value and market. >> important, but anyway, 98%, is still phenomenal compared to other funds other out. >> our regular turn. >> at the same time we still may lower our contribution rate because of why are they out of

synch? it has to do with amorization rules that we're about to follow? it keeps the contribution much much lower if not zero. so that's good news bad news understand, you have to understand both sides of it. >> i want to understand the page 11, and you clearly explained why it steps up between 6 and 9 percent range. the 2% trigger. but i don't understand why, and how it drops down when where that second drop down at the 18-21%, i just didn't follow that because that's a significant issue because the amorization is different than any other item that we expense. >> great. >> sure. so at 21%, that would be the rate of return if you earn that

in fiscal, in this fiscal year of 2023. that would put you at over 100% funded on actuarial basis. that's where you have a surplus situation. and we call surplus situation is when it's acturial basis. cola and any basis that are amortized rolling 20-year base because you're in a surplus situation. part of that is that you're in a surplus and you have big gains but also that supplemental cola where we amortize it over 5-year period. but if you're, it gets put in with that, the surplus so it gets amortized over 20 years. very large drop there, because of both of those reasons. >> okay.

complex idea. then explain, i know you try to make very important complex subjects as simple as you can. wu but it gives us a-- -- ~>> it includes the vehicle as well. it takes something like 1.2 percent of return to cover the supplemental cola? the law is we have to have the money to pay the retired population at that point for the rest of their lives, that supplemental whatever it has, 1, 2, 3 and a half percent. >> it's in the ballpark. >> above whatever you assume

the rate of return is. >> approximately, i don't know. >> approximately of course. >> yeah. >> that's a big number, just how this all works. >> and then, what you put on page 15. the supplemental cola. >> supplemental cola that was granted back in 2018. >> right. >> and hopefully next year there will be another supplemental cola that we may earn and be responsible for paying. that would be another 1.3 percent for nine years. >> something like in those ranges. >> it would be a little bit big ger because you have a bigger population.

>> now understand why you put the phrase on page 2. i thought was a miss number but obviously not, if you plan for it. okay, that concludes my questions about hyrons work. the cover page written by our coordinator, notice the increase in the member count. it's a very large jump this year. it's almost a 2% jump, that's normal. it's significantly higher than couple of years. that leads to a service. that's a significant demand for hopefully, the board of office who appreciate that issue. >> thank you. >> comments, commissioners?

>> i have a question. >> i'm sorry, go ahead. commissioner. aj thomas. >> i want today thank kyron for the presentation, it was informative. and i want to give another shout out to staff for the way they prepared the documents this month, it's been really easy to follow along and prepared, because of how they're prepared. i want to give a shout out for that work. i do appreciate the information. i was going to make the motion [audio breaking] >> i think your connection is fading out. i think you were going to make a motion. just hold off because i have a couple of questions. >> on page 6, you talk about there is a few of the things about source of liability gains or loss. and it says, in the middle of

page 6, it says salary increases have had a biggest inpact on year to year losses over the last five years. can you, can you just talk about that a little bit more? >> sure. >> salaries is the one that make the volatility more--you can see the impact. so over last five years, we have seen morsel reincreases above what we have expected in our assumptions. so that's been driving some of the liability losses over the last five years. and that salary increases were lower than our assumption so we

had some gains. it's just something to. >> and that's in the sense because you're locking in salaries today that the retirement pay out will be based on in the future? >> that's correct. the higher the salaries are in the future the higher the benefits in the future. so when we get to the salary increases, it increases the projections of the benefits. >> what about the second bullet which is the determination and new entrance that result. i understand that pre1996 would be under the new entrance people that you're paying. is it that you, that you did not project as many retirement and terminations? >> well, in the last few years, we've had more retirement and fewer terminations than we expected.

>> particularly fire employees? >> exactly. >> even though we're pulling them out, i want to emphasis the bullet. we've been within 1 percent. so it's. >> generally small loss representing less than 1% of expected liability. >> right. >> so the large on this turn here, because we're always showing. >> but in terms of what you projected in the blue line, it's not that far off? >> correct. >> got it. >> okay, good i appreciate you pointing that out. and i have to say i agree with commissioner thomas, the way you summarize and prepared it, the presentation, really straightforward, very easy to understand and got a lot of information in there in a very clear manner. we really appreciate that. >> thank you.

>> motion. >> yes, sir. >> move to approve this private--valuation report. >> yeah. >> thank you, commissioner heldfond. seconded by? >> second. >> commissioner driscoll. madam secretary please call roll call. >> moderator, do we have any in-house public speakers >> we currently have no in-house speakers. >> any callers on the line? >> we have no callers on the line. >> public comment closed. >> call the next item. >> madam secretary, please call the roll. >> commissioner bridges? >> aye.

>> commissioner driscoll? >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond. >> aye. >> president safai? >> aye. >> commissioner thomas. >> aye. >> he's having issues based on his reception. >> i understand that, but. >> city attorney is that okay, given the technical difficulties? >> yeah, that's fine. >> okay. then we have 6-0, motion passes. >> thank you so much. please call the nexting item. >> number 14, adoption adoption of employer contribution rate of 18.24% for fiscal year 2023-24. >> the report which we just saw.

>> cause developed in the report. we ask that the commissioners adopt rate of 18.24%. >> move to approve. >> second. >> president safai you're muted. >> moved and second. please call the public comment. >> thank you, moderator, do we have any in-house speakers? >> madam secretary, we have no in-house speakers at this time. >> moderaters, 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 closed. >> great. please call the roll. >> commissioner bridges? >> aye. >> commissioner dricool? >> aye. >> commissioner gandhi. >> aye. >> commissioner held independent fond? >> aye. >> president safai? >> aye. >> commissioner thomas? >> i think we lost him. so for this one, i think he's not. >> okay. 5-0, motion passes. >> okay. >> thank you. >> please call the next item. >> item number 15, discussion item personal committee report february 1, 2023. >> standard protocol it's for committee meet to go have a

report from the chair of the committee to larger group. that's all this item is. >> thank you. >> i've already brought up these issues, earlier in the meeting. at the meeting of february 1, we had a personnel committee meeting. dealt with passing the minutes, the prior meeting, we talked about we talked about the valuation as well as cio valuation all of which have been discussed. and the take away is we're very pleased with the valuation service board and there is ceo,

cio, and that is my report. >> you're muted. >> any questions from commissioners or comments? >> okay, seeing none. madam secretary, please call public comment. >> thank you, moderator are there any in-house speakers? >> madam secretary, there are no in-house speakers at this time. >> 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. >> commissioner heldfond would you like to make a motion? >> on this item? it's a discussion item. >> oh okay, sorry, i was on to the next already. great, thank you. madam secretary, please call the next item. >> item number 16, action item approval of department budget

for fiscal year 2023-24 and fiscal year 24-25. >> it lfr for the head of community the report budget presentation did come out of the operator committee. i did not have it as a separate item. if there is anything that you want to do to frame it up, otherwise i can start with the presentation. >> again, here i'm going to hit the highlights, there is a lot of behind this budget. what i want to present is how to we arrived at the budget and highlight some of the key asks for this year. i'm going to talk through my slides, i don't think there is any necessary need to have them in the screen but if you want to, feel free. our mission, i would consider

having three pillars, the investment side of the house benefits and administration and providing benefits provide benefits that require a solid business operation, and solid implementation of the plan. we must invest adequately and effectively across all of these pillars to be able to accomplish our mission. and we have done that over the years over our businesses and i want to spend just a minute highlighting how the businesses revolved over the last two years. so over the last ten years, total members have grown over 45%. on inflation basis our expenses which is everything that is non investment expense has grown 21%. so we'll have more members and more members to serve, we've been much more conservative on how we are spending our money

to serve these members. at the time, it includes things like adoptive technology and other areas which as you know is becoming increasingly complex. which leaves me to through the business operations, when i look back at the edit report, ten years ago, some of the areas of focus were on a document management system, watching a new member portal which today seems, it's a lot of work, it's expected i would say. and, working in that organization. today again, business is much more complex. we have to do with hybrid meetings and all the hardware and software that have to do with that and communicate withing members because we have more investment, that means we have to have more complex operations. and we have controls and

processes with our quality assurance group. again, businesses have evolved and all of this requires appropriate investment. and then thirdly on the investment side, this is the easiest to quantify in terms of investment for budget dollars. if we look for what the board has done in supporting the investment organization to help us evolve the approach and providing the resources to do t you can see that we've had a good investment. so we ran a analysis to say, what if 5 years ago, what was our, what if we had invested any 60-40 portfolio? now let's say that we added the resources where we can do something more sophisticated. now we hired a really talented staff that can good managers.

all of that in the last five years and admit antly it's been very good 5 years. that has lead for every dollar spent on staff and internal capability to see do this, we've gone additional 140 dollars in added return because of the complexity and resources team. that's compelling of the investment side. and i bring this up again beinger because this is one thing that can quantify and with the board support that we've done to deliver the reports. that's what was, now let's talk about going forward. i think any budget, needs to be tied to a priorities are. now, i have not had the opportunity to sit down with the board and weigh out a full strategic plan but i thought it was prudent to highlight what i call the framework which are in of the key things where we want to prioritize our time and efforts.

where we come on strategic planning, attracting and retaining talent, managing our return and liquidity, and i can tell you every ask on the budget for this year, had any significant changes in the budget is tied back to those things. so let me highlight on the pension part of the house. we are focused on excellence and talent and intuition al knowledge. this is where we'll get to request for additional fee. and focus and codifying institutional knowledge. this will include something like a system to enhance our

recording and our collaboration. and finally, on investments, we're going to have some additional dollars spent here and making sure that we have a robust set of consultants. that we employ odd which sometimes comes at a little bit of an incremental cost on the investment side. and making sure that the analytical tools to evaluate our risks is adding a more robust risk system. again, those are the high level points that i wanted to make sure that you are aware where some of them more notable changes overall. budget. next on the dc side, diane has done a fantastic, these are the ones specific to the dc side of the business. improving retirement readiness

for participants, cultivating high performing and innovative plan and raising the profile to enhance planed effectiveness. all very good objective and the budget that diana put together and we're putting here today, supports that, there are no significant changes in the dc budget for this year. so taking that altogether, where does that leave us? what is the number? the total estimated budget for the 23-24 fiscal year is 133.9 million. it's important to note that the way the budget has been done in the past is includes investment manager for some of our equity investments and we have to make an estimate as to what those fees will be. in terms of costs that are really, related to technology.

>> can you rpt numbers. >> we're estimating 1.2 in this

coming fiscal year and on top of that addition avenue 1.5 million there after. >> for total of 2.7? >> correct. >> i get it. >> okay, thank you. >> thank you. >> some of the that we want to achieve with those fees. first on the town side. the plan has grown in complexity and membership. so we're serving 77,000 members, we've got 14 plans and retirement options, we have 146 million going out each month and they need to process all that. and we need to work across multiple tables, systems and i can go on for hours and eric has done a fantastic job. describing a lot of that, but that's a big job and in the

compound that with the additional for spoesh projects, so great with path a to deliver on that. so there is a lot of complexity that the team is working hard and they're stretched very thin to meet the demands of that complexity. >> these are very intensive jobs that require skills and training over a long period of time. and we want to create a number of services and started down the path a career path so that we have people understanding our system and have opportunity to stay at spers and potentially as the retirement continues at senior level, we can use the talent to support

this. right now, rerely on a number of prop a to build some of the gaps. again that's fantastic. we're happy to have those individuals. that is sustainable for long term businesses. and we do again, really appreciate all the work that our retirement team is doing. they are stretched thin and that can be wearing overtime. to try the needs of all of our members, from a front person staff and from those who are doing work behind the scenes and we want to support them so they have excited to be here. high to talent is institutional knowledge. we have a loss of individuals over the last five years as many organizations have during covid and may have expedited requirement and we need to rebuild that knowledge.

and we need to have it across the number of individuals so that we're prepared going forward for today and for when we may have future ri timer. so we do think that will put us in a stronger position to do 14 things. complete our business attract and develop talent, improve efficiency and importantly that is a lot through process and documentation and we can document the process and train the people, you mitigate risk and you preventor ors from the offset. and with the incremental staff, we can work for smartly and use the judgment to use technology where we can to enhance our profits.

i think, one thing that i where when i was doing this analysis and looking at our needs, it's good and important. it can be helpful to get a sense of what the market. because it provides some context for what this ask is. and so, one thing that we did, and eric did a lot of leg work is we reached out to a number of pure plans that are somewhat similar in scale to us that do benefits administration and assess, what the structures were and it's important to have the conversations and just putting the public information. and based on that work, what we've seen in looking at one of our pier plans, if we look at the, number of ftes relative to

numbers. we have far fewer staff than our peers and our ask for 18 additional ftds is only half to be the average of what our peers are. so while it's a large number, no doubt in a significant, it's not out of line with how other california plans have operated. to put that in terms of ftes to look at it in terms of total dollars. and looking at actual numbers that ended in 2022. we're spending far less than our the average pier again. applied by scaling it to the liability. so we're spending 21.4 billion when our peers are scaling are

spending 37.6. but this is, this is a way to demonstrate that our costs are particularly low. and just another frame of reference, something we're not subject to, but a number of california through some california code, that can be spent on admin expense to see get everything non investment related is 21 debts of the acturial liability.

>>. >> i need to chair that. >> so that's, >> so, question is, whether they brought in,--[talking at the same time] >> thanks, it was how we're

going to go. but thank you for asking. >> we did go over the numbers. >> we came. >> yeah. >> we had a meeting last friday on the operations committee. and we discussed the process and the budget at the time. originally very priced. with the new department and we kind of give a chance to break down for the needs and why there was a need for somebody hired in the scene. after we were back and forth on that.

to a number and the rules and the asks that have been made to be presented to the board. on how we came to the process but that's what happened. >> so you're recommending based on what? ceo? >> this. >> is that commissioner gandhi was not clear on how it was going to be presented to you. so they differed to make the presentation and it was a good question for you to ask for her

to affirm and ensure that na the committee is supporting those recommendations and i, i just heard that. >> yes. >> president safai? >> got it. >> put the socks on backwards. >> we've had some sock issues before. >> as i move in this process, the same thing--i didn't get it on here. >> separate. budget, offering the committee. agenda item to discuss the budget and then discuss the budget. >> commissioner heldfond? >> okay.

>> it goes like this, i make a couple of comments. >> you're going to prepare for a meeting before you face the inquisition. the numbers before us, the 133 million if that included differed please understand that's a separate cost issue. sometimes they understand and sometimes they don't. secondly, the in terms the broke out the investment how well it did versus the 60-40, obviously a very powerful chart. >> parallel to the chart is when you put down the ratio to peers, did that chart include the investment personnel? >> those ftes are for our member services. >> it's just, component that we were comparing.

>> it's important because there are other funds they invest more money than we do but they have small investment staff. >> in case, anybody analyzed, the case you're trying to make for services to members, compared to our peers, we're not as good and spending as much justification for the increase costs. it's a personnel cost issue. go back on the investment side. it shows, addition of two people. >> apparently it shows 30. now the 30 budget positions are 30 still positions. >> all right. >> we're so, let me take a step back. a year ago, the budget we have five positions that new positions for this year and two for the following year.

>> i know there is another issue. i think that concludes my question, i'll find it if i had another one in there. thank you. >> let me make sure it's separate. so they're not confused by what is coming up. >> i noted, calculation. >> thank you. >> it takes a, a few, it, it does not mean.

>> president safai, i'm not sure if there is anywhere before me. >> go ahead. >> i want to second what he said. we had an exhaustive presentation. and hearing commission observation about the process. that makes sense and the good good question to ask and i want today say that they showed their homework and i'm ready to make this motion when appropriate. >> commissioner bridges? >> so, sorry. commissioner halfond? >> just a basic comment. support it but from a process point of view, each

constituentcy as well as other constituentcy and this is part of our job to give as much support to what we have been appointed by for getting us through this at a very difficult time. and i think we have to help the ceo orchestrate the presentation and any type of push back they get or the like. and this is whether, you're elected by a constituents. just,

>> another acturial gain. >> people understand that benefit, we thought we would operate at a 50 basis cost. therefore rest to ask for another point worth doing. and i think we earned it, please ut get the budget as requested. >> that's a selling point with the facts that you generated in this excellent budget recommendation. >> thank you. >> any other additional comments or questions? >> would i like to say one more thing that also went over, the the about other ways to [audio breaking]

the concern where we have how this in the future, we have spend as we have combine technology. so -- ~>> the irony is that technology let's you make more work. >> for sure. >> but you're right, you're right. >> all right. >> motion to approve the budget.

>> it's a action item, i would like make a motion to approve the budget for fiscal year 23-24 and 24-25. >> second. >> motion made by commissioner thomas seconded by commissioner heldfond. madam secretary please call the public comment. >> moderator, do we have any in-house speakers. >> we have one in-house speaker. let me get you set up, sir. >> i just want to say, complex, complex, complex. i listen to you all talk about things and actualrial percentages and then the market percentages and complexity that goes into how they come about all of this stuff is just tag erg.

you look at trends and they're talking and i'm fully supportive of this budget adding the ftes. you're talking about 1.7 million over two-year period. and you're operating budget, 133.9. and then you look about trends. just from december 31, to january 31, you guys made 8 million dollars. this department is the best run department in the san francisco, by far. and it's education going back to the mayor's office and the board of supervisors and oshka can help do that. they have earned it by their track record.

they have out performed other pensions of similar size for a number of years you've been rated number 1 where you're actly today if you're number 2. i support this and i will try to educate people over at city hall but. you're track record has earned it, thank you. >> thank you. moderator, do we have any further in-house speakers? >> madam secretary, there are no further in-house speakers. >> thank you. 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. president safai? >> there is been a motion made by commissioner thomas and seconded by commissioner heldfond. roll call. >> commissioner bridges. >> aye.

>> commissioner driscoll? >> aye. >> commissioner gandhi. >> aye. >> commissioner heldfond? >> aye. >> thank you, president safai? >> aye. >> commissioner thomas. >> aye. >> thank you, we have 6 ayes, motion passes. >> great, please call the next item. >> item number 17, action item declare retirement board vacancy affective february 14 and approve draft election schedule. >> commissioners as you know, brian resigned as a member of the board on february 14, 2023. he is an elected employee member. the team here on very short

order since this only happened in the last week and a half has reviewed the process to post a vacancy and put before for approval. so step one, the board needs to declare the vacancy and approve that the department of elections conduct the election and approve the draft schedule. the draft schedule is in your materials. this complies with the time frame of 120 days after the vacancy is open. but, you approved the draft schedule, they review and it may be subject to change but this is based on what we think the timeline there be to meet all the requirements. >> okay. >> great. >> if there is a motion in order? >> motion to approve the

schedule as presented by our ceo. >> second. >> i think yeah, i think we need to say we're declaring a vacant affective february 14, 2023 so i'll amend and we'll conduct an election approved subject to revision by the department of elections. so okay. >> so motion made by commissioner heldfond seconded by commissioner thomas. madam secretary please call public comment. >> thank you, moderator, do we have any in-house speakers? >> madam secretary, we have no in-house speaker. >> moderator are there any callers on the line. >> madam secretary, we have one caller on the line. >> caller, please state your name and two minutes begin when you speak. >> caller: thank you so much.

i know like many boards and commissioners are not required to answer questions. but i am just curious on your motion on whether this is, a vacancy on the board where all members of the retirement was able to vote on the election as replacement member or if this heat on the board is reserved only for public safety members to cast votes during the election. if you can clarify that point, i think, there are a lot of retirees that would like to know that answer. thank you. >> thank you for your call. moderator, do we have any

further callers? >> madam secretary, there are no other callers on the line. >> thank you, hearing no other callers, public comment is now closed. president safai? you're muted. >> there is a motion made by commissioner heldfond seconded by commissioner thomas. can you please call the roll call. >> commissioner bridges? >> aye. >> commissioner driscoll? >> aye. >> commissioner gandhi? >> aye. >> commissioner heldfond? >> aye. >> president safai? >> aye. >> and commissioner thomas? >> aye. >> thank you, we have 6 ayes, motion passes. >> please call the next item. >> richie needs to mute his microphone. >> item number 18, discussion item, discussion regarding to

permit remote public comment beginning march 1, 2023. >> introduce this topic. so that the covisit 19 sunseting orders. the city administrator is working with a mayor and others on possible guidance regarding more remote public comment. in the meantime this item is on agenda for discussion only regarding whether to permit public comment remotely after march 1. >> commissioners any comments? okay. seeing none, we'll take public comment on this item.

>> thank you, moderator, are there any in-house speakers? >> madam secretary, there are no in-house speakers at this time. >> and moderator do we have any callers on the line. >> madam secretary, we have one caller. >> caller, please state your name, your two minutes begin when you speak. >> caller: okay, it's patrick. really disappointed that you could not answer that basic question on the last agenda about the election procedures, shame on you for not taking 30 seconds to answer it. as for item 18 on this remote public comment period, it is, useful seeing it on the agenda as a discussion item. but i'm shocked, none of you, to actually discuss.

the merits pro and con about continuing to take remote public comment from everyone, just not people with disability as a reasonable accommodation. you should have some discussion about this and then consider introducing an action item in your to announce whether you're going to continue or discontinue remotely comment. yes, the covid pandemic is under control most of it are better vaccine and/or boosters but that is not the only reason to continue but that's not

reason not to have public comment. a lot of cannot trek downtown to make public comment. and they should be afforded the opportunity to participate in these meetings remotely. >> 30 seconds remaining. >> caller: even if they're not advertise abled. soy urge you to take a leadership roll in doing what the board of supervisors did years and years ago in remote participation to improve our democracy. you should do that, if for no other reason. thank you. >> thank you for your call. moderator are there any other callers? >> madam secretary, there are no other callers on the line. >> thank you, hearing no

further callers, public comment is now closed. >> president safai. >> just to the last question, we have the chief executive officers report, we can get some clarify that on the next item publicly. we just don't respond back and forth when it comes to public comment. but to this item, i'll just say that we have been, we learned a lot during remote access, we learned a lot in this process over the last couple of years. one of the things that we have done is a heightened need for those physical disability to have access. we're committed ensuring that going on. anyone that needs a reasonable accommodation will have such. but we're also balancing the need for people to return to work and to helping our local economy and so we're balancing all of those things as they

pertain to the city needs in a well functioning city. i think we tried to balance that well. i think we'll do that going forward. i appreciate that comments from the callers but the emergency order from the state level, gives us some pretty clear direction. and we will follow that guidance in terms of continuing and ensuring that we have good access and accommodation for those with any disabilities and that requested. the one thing that i will say is that in the past, a reasonable request the timeline we discussed at the board of supervisors. the amount of time that was required to make an accommodation request was pretty far out in advance. i think that's one of the things that we've learned. again in this process of increasing the ability and access to technology. that's something that we'll have to have an internal conversation that we'll have. of course you can't ask, you know, ten minutes before.

but, if there is, a reasonable request the day before or you know, let's say 12 hours in advance. there is a reasonable amount of time we do have to have some clear guidance on that. and we've had that conversation in the board of supervisors. i think it was 72 hours and that seems insignificant amount of time to ask for that accommodation. we're going to ask ourselves here internally to look and give us some advise on and what would be reasonable but not what was the past practice. any commissioners have any other comments? commissioner driscoll? >> since you've had a bad experience. limited to one public comment or public comment item by item by item as we've been doing? >> no no, what we do and because it's a little bit

different here, we have general public comment. and items on the agenda that have been discussed in committee, they're not allowed to comment on those. so if we do a special committee as as a whole, as if you're doing committee in our board of supervisors then people can comment on that item. if there are items without reference to committee. people can comment on those items during general public comment. but anything that is on the agenda for that day, people cannot comment on. and in fact, they will be shut down and asked to redirect their comments. general public comment is designed to talk about everything that is not on the agenda squ bring up new items. because we don't have a rebust committee system where the public can comment on the items, it's problem why we do comment here, item by item.

>> thank you for na explainsing. i'm not sure what the cost would be for continuing this method bu. there is a issue of time every single one. those meetings go quickly but mr. for example, we've had a couple of public comment which is not unusual but the number of times. there is an issue of factoring while our try to remain as democratic as possible. are we in the board we still have two items. >> we're still on item 18 discussing whether to permit public comment. i think we're going to follow the guidelines of the state. people agree with that, following the guidelines of the state? yeah. okay. >> okay, so we've taken public comment. there is no action to take.

madam secretary, please call the next item. >> item number 19, discussion item, chief executive officers report. >> madam ceo, i know you have your report. but if maybe, either here or the next item if there is some clarity for the the process of election. you're going to do it after? okay. great. >> okay. we'll address it after. >> so we get that into the record. >> absolutely. >> for the ceo report, few items to update you on. first i want to remind the board you should have in your email an a reminder to complete the form 700 by april 3. i just want to make sure that you keep an eye out for that if you have not seen it already. secondly, i don't we officially announced this in the last

board meeting, but i want to let you know that commissioner bridges has been reappointed. thank you for your service and i look forward to continue to go working with you so thank you for doing that. next, the materials that we have included here in the presentation are the standard materials that you are all used to seeing at this point. i will highlight a few notes.

number 323 including workers and retirement system to ensure their investment support legal rights and affordable housing. and i wanted to let you know that we did receive this, we will consider this while we also continue to have the obligation. at least that's the extent of my comments on the report. >> commissioner if there is any comments or questions.

okay. any comments, madam secretary? >> moderator, do we have any in-house speakers? >> madam secretary, we have no in-house speakers at this time. >> thank you, and do we have any callers. >> we have one caller on the line. >> thank you. caller, please state your name your two minutes begin when you speak. >> caller: it's patrick. >> go ahead and speak. >> thank you. i would have sworn that president safasi asked the ceo to outline the procedures but i didn't hear anything. and i do want to comment that the excuse of helping out the local economy is reason to end remote comment is ridiculous.

because if we showed up in your building, you would have to take our public comment anyway. so making a reasonable accommodation for everyone and not just for the people that are, that are disability, seems to be reformation that people are disabled to an accommodation but people that don't, are being discriminated against on excuse to try to help out the local economy. with all due respect, mr. safai, the hope that people are going to return to work is, is presaoeshs, people have returned to work and return to work.

no matter what the mayor may want. >> three seconds remaining. >> you guys really need to agendize that and address, commissioners concern about the time involved. much time commissioner dristoll. wake up! >> okay. anymore public comment. >> thank you for your call, moderator are there any other callers. >> madam secretary, no other caller on the line. >> thank you, hearing no calls, public comment is closed. >> is this where we're going to answer? no? yes? okay. okay, yes, so if you can call the next item and then.

>> item number 20 discussion item retirement board member good of the order. >> i'm going to ask before any members go, if she can explain a little clearer on the election process. >> thank you. the return [audio staticy] out of the charter with retirement system, anyone can vote. active or retired. so with this election, everyone will get a ballot. it's confusing that we may be arising is because simultaneously having an election with the healthcare class fund board which is not to restore this body under the retiring trust fund board rules they each have designated active member and retired with

this one restored a retired member seat. so the retiree will be getting two, they'll be getting tuba lots for the retiring healthcare trust fund and they will get a ballot for the vacancy here. the active however, will not. they will get one ballot for the vacancy for the spur of election and they will not get a ballot for return healthcare trust fund election if they run simultaneously. and i realize that is confusing and i hope i explained it. >> i hope so. >> i think so. >> any other members have any? joe, i think you did right?

>> thank you. hopefully that explanation will be clear with the department officers. each department has an election officer as well as the, using instruction package in the envelope that election, director sends out in the envelopes to all active and all retirees. all you do is make the explanation clear and hopefully people will understand and vote. >> we will make every effort to have it clear. >> i want to declare on who gets a ballot? >> not clear? >> no, what i mean, i will not get one ballot but i will get another ballot. >> you'll be getting. >> that's my point. >> okay, no no, i just i figure

that if you're meant to get tuba lots you'll get them with an explanation. if you're meant to get one, you'll get one with an explanation. and hopefully that will go smoothly. >> any, and then, and then people can send them in by mail. >> everything is by mail. >> yes. >> right. >> any other and then do we accommodate if people are coming in for questions in the retirement system, can they drop off their ballots here? is that something that is allowed? >> that has to go through the department of--so [audio staticy] >> i only say that because it's part of the plan we learn through expand where people can drop off their ballot and if people get them, they want to put it in to see if there is a

drop off location here where people are coming in to ask questions about their benefits or meetings. so maybe you can ask the department of elections if they can have a drop off. maybe people use it or and maybe they don't. anyway, just thising to think about. >> we had a drop off. so it's -- ~>> and they have one it? and they run it in front of city hall and they put them in front of neighbors in the city to supplement their inperson voting. >> yeah, i'm not asking them to do that across the city, i'm saying this would be a good location because people come in to ask questions and so maybe. >> okay. any other issues? for the good of the order? >> quickly. >> it's too late, just kidding. >> echo, i think it has to do with the room.

we got to solve that, okay. one, subsequent questions on the budget but it's not worth taking time. thanks whoever did this, but i do not like this method so i would prefer going back to the three-ring binder. and election, suggest that different envelopes since we're going to be mailing envelopes to arizona we want this to go as well as possible. >> doesn't the system use a color and retirement uses another color sdm i think i remember that in the past. >> we're paying for it, we can do one yellow and one blue. >> i'm not trying to be funny. i think i've seen that in the past. >> right. >> so they did one for the health system and the retirement system was blue. >> yes. >> you do them with two

different colors, that's helpful. >> okay. >> okay. i just wanted to add on to my comments from before. so we have been for the past three months, convening downtown city wide recovery group as it results to the economy. one of the biggest thing is that this downtown core representatives 70% of the city's g.d.p. so when people don't take public transportation and they don't spend money on gas or parking and not coming into this area and it's not just about returning to work but coming to meetings and having being face-to-face. i said that in a very condensed way. i know a lot of you understand that because you're looking at numbers on a daily basis, but it was shocking to me that 70%

of our g.d.p. relies on not to mention, the small businesses and all the other service sector janitors many of who are active and retired employees or soon to be. they're all over. maybe they left the city and brought into private employment and working into private sector. i just wanted to say that that's part of the reason why that is in the state's interest, they're the ones giving us that guidelines. that does not mean that is something to be negotiated. our city, our m.o. u that human resource department is renegotiating full return to work. we representative the largest employee in the county of san francisco for thousands of employees and number of

employees are reviewing their policies now. so now there are arguments on accessibility in time and inability for people to come in and access. i will say over the last two years that we've been here remotely, there has been very few if any, remote public comment. and that's just, that's speaking factual, it does not mean there could not be in the future and we'll work to accommodate that as required by law. but ipg that is that it is also in our interest. i joke with, mr. sanchez about some of that interaction and face-to-face helps his membership retiree protect our benefits to have that face-to-face in most conversations.

and there is a whole interest that representatives the retirements well. >> thank you for making that observation. one of our is to make this as desirable location for our employees to come to. >> this is a strategic time to buy a building in this area. >> do we own the building? you're right, in the city we've gone through a number of conversation about purchasing property. and if there is an opportunity that's something to schedule an agenda to have a conversation to have. >> it's to task. >> huh? >> it's to task our staff is

the way to do it. >> okay. >> that's worth the while, we have our department of real estate. why are you shaking your head? >> i would not work with that department. that's a strong opinion. >> that's fine, but it's a point where staff can start and we can hire our own broker and that's fine. i'm just telling you they have the inside track for a lot of sale properties. i know that for a fact as a member of the budget committee because we're being presented with opportunities to purchase or encouraging staff or department to work on those deals fm it's been one of the biggest things that we've pushed on rather than expensive laesz looking for opportunities to purchase. that does not mean that we

cannot hire our own people. that will be the worth while thing to look into. >> i agree. >> you do make a good point. and i'm glad you added that on. for the staff and difference between the frontline blue collar staff, that don't have the option for remote work, that have been going every single day, fire police and retirees, it also helps to have additional bodies and others coming back in to liven the streets and protect the employees that are there specifically from the perspective of this body and the people that come into this building. it's helpful in that regard, as well. i'm really glad you brought that point. any additional comment? okay.

>> i'll make a comment. >> only if you're on come ra. >> if it is, cecelia is breaking any leg. i just want to thank everybody for their patience, i know i've had connectivities time. i want to thank you. while this is intriguing with property, i would encourage to you explore through the committee process, i like that we're restarting all of these committees. i'm sure there is a committee where this can be unpacked and allow staff to explore what the pros and cons and different options are. i agree this is worth exploring but i would also like to add on, it's best explored through the committee process. >> okay. we'll take that into consideration. and one thing we can do is ask

staff to come and do some present and come and present to the committee level. that would be the normal process but directing staff to go do the work and compile some information, it's okay to begin and ask that direct staff to do that. and then have them come back to the committee level and then present it to the full body. >> absolutely, you're saying it in the way that i was thinking it thanks. >> got it, perfect. okay. any others? >> i was -- ~>> cio? >> i was going to share that, our space is top of mind and questions, that i appreciate from staff. so it's something that we've been discussing internally. >> it's a very complex structure, the relation with the city. we're working on it, but it is a very complex issue to work

through. >> right. >> okay. so, we've, we took public comment on this item already? >> no. >> we didn't? >> no. >> oh okay. >> not for the good of the order, no. >> okay, let's take public comment again. yay. >> moderator are there any in-house speakers? >> madam secretary, we have no in-house speakers. >> and any callers on the line? >> we have one caller on the line. >> thank you, caller please state your name, your two minutes begin when you speak. >> caller: okay, i'm patrick on the good of the order. first, on the idea that there is only been a small number of retirees calling into these

meetings in the last two years is not and if it's small, foesinger them to come downtown to your building to provide public comment is not going to help the local economy, mr. safai, if it's a miniuscul. i appreciate the conversation about elections coming up but that does not answer the question about whether the seat trustee is vacating apparently it's not.

so i appreciate that clarification. again, you really need to consider having generosity in teaching remote public comment whether it's retiree calling in or not. >> thank you, very much. any other callers on the line. >> madam secretary, there are no other callers on the line. >> hearing no calls, public comment is closed. president safai? >> right. >> next item. >> item 21, adjournment. >> i move the meeting be adjourned. >> adjourned. >> thank you.

as latinos we are unified in some ways and incredibly diverse in others and this exhibit really is an exploration of nuance in how we present those ideas. ♪♪ our debts are not for sale.

>> a piece about sanctuary and how his whole family served in the army and it's a long family tradition and these people that look at us as foreigners, we have been here and we are part of america, you know, and we had to reinforce that. i have been cure rating here for about 18 year. we started with a table top, candle, flowers, and a picture and people reacted to that like it was the monna lisa. >> the most important tradition as it relates to the show is idea of making offering. in traditional mexican alters, you see food, candy, drinks, cigarettes, the things that the person that the offerings where

being made to can take with them into the next word, the next life. >> keeps us connects to the people who have passed and because family is so important to us, that community dynamic makes it stick and makes it visible and it humanizes it and makes it present again. ♪♪ >> when i first started doing it back in '71, i wanted to do something with ritual, ceremony and history and you know i talked to my partner ross about the research and we opened and it hit a cord and people loved it. >> i think the line between engaging everyone with our culture and appropriating it. i think it goes back to asking people to bring their visions of

what it means to honor the dead, and so for us it's not asking us to make mexican altars if they are not mexican, it's really to share and expand our vision of what it means to honor the dead. >> people are very respectful. i can show you this year alone of people who call tol ask is it okay if we come, we are hawaii or asian or we are this. what should we wear? what do you recommend that we do? >> they say oh, you know, we want a four day of the dead and it's all hybrid in this country. what has happened are paper cuts, it's so hybrid. it has spread to mexico from the bay area. we have influence on a lot of people, and i'm proud of it.

>> a lot of times they don't represent we represent a lot of cultures with a lot of different perspectives and beliefs. >> i can see the city changes and it's scary. >> when we first started a lot of people freaked out thinking we were a cult and things like that, but we went out of our way to also make it educational through outreach and that is why we started doing the prosession in 1979. >> as someone who grew up attending the yearly processions and who has seen them change incrementally every year into kind of what they are now, i feel in many ways that the cat is out of the bag and there is no putting the genie back into

the bottle in how the wider public accesses the day of the dead. >> i have been through three different generations of children who were brought to the procession when they were very young that are now bringing their children or grandchildren. >> in the '80s, the processions were just kind of electric. families with their homemade visuals walking down the street in san francisco. service so much more intimate and personal and so much more rooted in kind of a family practice of a very strong cultural practice. it kind of is what it is now and it has gone off in many different directions but i will always love the early days in the '80s where it was so intimate and sofa millial. >> our goal is to rescue a part

of the culture that was a part that we could invite others to join in there there by where we invite the person to come help us rescue it also. that's what makes it unique. >> you have to know how to approach this changing situation, it's exhausting and i have seen how it has affected everybody. >> what's happening in mission and the relationship with the police, well it's relevant and it's relevant that people think about it that day of the dead is not just sugar skulls and paper flowers and candles, but it's become a nondenominational tradition that people celebrate. >> our culture is about color

and family and if that is not present in your life, there is just no meaning to it you know? >> we have artists as black and brown people that are in direct danger of the direct policies of the trump administration and i think how each of the artists has responded so that call is interesting. the commontelevision.

>> in 1948 swensen's ice cream used to make ice cream in the navy and decided to open up an ice cream shop it it takes time for the parent to put money down and diane one of the managers at

zen citizen in arena hills open and serve old-fashioned ice cream. >> over 20 years. >> yeah. >> had my own business i was a firefighter and came in- in 1969 her dad had ice cream and left here still the owner but shortly after um, in here became the inc. maker the manager and lead and branded the store from day to day and in the late 90s- was obvious choice he sold it to him and he called us up one night and said i'm going to sell

the ice cream store what you you talking about diane came and looked at the store and something we want to do and had a history of her dad here and growing up here at the ice cream store we decided to take that business on. >> and have it in the family i didn't want to sell it. >> to keep it here in san francisco. >> and (unintelligible). >> share worked there and worked with all the people and a lot of customers come in. >> a round hill in the adjoining areas loved neither ice cream shop in this area and support russia hills and have clean up day and give them free ice cream because that is those are the people that keep us the

opportunity to stick around here four so many years next generations have been coming her 20 er thirty or 40 years and we have the ingredients something it sold and, you know, her dad said to treat the customers right and people will keep on coming back and 75 or 74 years, you know, that is quite an accomplishment i think of it as our first 75 years and like to see that, you know, going into the future um, that ice cream shop will be around used to be 4 hundred in the united states and all gone equipment for that one that is the first and last we're proud of that we're still standing and people people are

you tell people it's been around in 50 years and don't plan on

>> staff of the public and welcome to the san francisco health commission on february 7, 2023. secretary, please call the roll and make necessary announcements. >> yes. commissioner green? >> present. >> commissioner hao? >> present. >> commissioner duarte. >> present. >> [roll call] >> i have a script to read. good afternoon and welcome to the february 7th, san francisco health commission meeting. this meeting is held in hybrid format with the meeting occurring in person at 101 grove street, room 300 broadcast live on sf gov t and viewing webex or call 415-652-0003. before we begin, i would like to remind all individuals present and attending the meeting in person today that all health and safety