reference strongly with public pension clients as well as endowment and they have a sophisticated infrastructure capable of supporting sfers in the need for asset allocation, liability studies, risk management and performance reporting. with that, i'll give it to wilshire. >> thank you. good afternoon to sfers board. thank you for allowing us the time to present wilshire advisor proposal for your next board consultant. before we get to the main content of the presentation, i want to go through high level introduction of the team presenting today. you can find more detail throughout

the presentation. my name is (indiscernible) i am a senior consultant and managing director and serve as the potential relationship manager. i am fortunate to be at wilshire my career which is 23 years of the firm. over the last 14 years the focus is on providing consulting serving to asset ownerstia u such as sfers with emphasis leading our first of the kind risk management consulting business which highlight what we think is advantage our firm has with the foundation as a best in practice provider of risk analytics and something i'll touch on more later on in the presentation. i'll allow the rest of my team to say hello. >> good afternoon. tom tote, managing director with wilshire. 19 year veteran at wilshire and lead our public plan vertical. i sit on the wilshire investment strategy committee, which is tasked with setting investment

strategy across our client base, and would act as a senior consultant for the client service team. >> good afternoon, lauren gilhouse a senior consulant on solutional client team at wilshire. i sit on the public plans pillar which most of my clear (indiscernible) texas teachers where i wore different hats starting in operation, transition to public market and sitting across public and private market as the head. that experience has been valuable as i now work with clients like yourself and look forward hopefully working with you all to better serve the employees of san francisco. >> good afternoon, my name is josh emanual, the chief investment officer for wilshire. i had 14 years with the organization and responsible for overseeing all of our investment related activities asset allocation

manager research portfolio management capital market research, quantitative research. i also chair investment committee and i am the cochair of investment strategy committee and appreciate the opportunity to be here today. thank you. >> thanks. on slide 4 wanted to start with a introduction to our organization. wilshire was founded in 1972 and we just celebrated our 50 anniversary. as you can see, our 500 clients range across multiple business lines including discretionary advisory work for institutions and intermediaries. we also provide alternative asset solutions and multi-asset class analytics. we believe the diversity of the organization and providing investment solutions is a benefit to all our institutional clients who portfolios are some of

the most sophisticated in the world such as sfers. as you see on slide 5 we have extensive footprint with offices around the globe which highlight the size and breath of the organization. that includes 311 associates globally. slide 6 is a detailed view of the extremely deep pool of investment professionals that we will tap as needed to serve this account. these aid the role working at the board independent eyes and ears in discussion with staff on policy guidelines and procedures as well as providing unbiased review of performance and benchmark objectives. our independent allows to provide objective investment advice with recommendations based on data and facts and always with the goal of enhancing portfolio results. lastly, before i pass to my colleagues i want to high lie dif rinchiators of our offering including the

focus on public funds, our technology heritage, and our understanding of esg and (indiscernible) risk and customize approach to client service. we specialize in using quantitative tools and techniques and evaluating portfolio strategy and understand both the merits and short-coming of some tools and will provide staff access to some of the most advanced risk analytics in the market designed for asset owners. this allows us to provide well rounded rigorous analysis to the entire sfers organization. i reference esg and dei, i now have my colleague lauren take you-give deeper dive into some of that work. >> thank you. our work with clients helping them achieve investment outcomes. each

client investment practice. to help guide the work with clients we have a handful of core beliefs. first wilshire believes man jsal material risk and opportunities is critical for long-term investors and there are risk associated with failing to do so. like sfers we believe consideration of esg factors alongside traditional factors should provide a better understanding of the risk and return characteristics of investments. we also believe that materialalty matters. not every risk is applicable to every investment. help minimize risk and max imize opportunity. understand esg means different things to different investors. there isn't a singular way to apply esg and the approach should align with the organization goals and objectives. next we believe engaging with companies on specific issues offer investors the opportunity to actively seeks ways to increase value of the asset and

create positive impact over time. wilshire believes diversity leads to better business outcomes. greater transparency on diversity is foundational to inform decision making internal and (indiscernible) [speaker speaking too fast] wilshire dedicated to enhance dei within the organization. this is done through effort such as employee research group mentorship program and annual report to hold accountable. also committed to encourage within our industry. this is done through external commitments such as the csa institute for dei code and diverse owned manager initiative which seeks to increase awareness and outreach. 40 percent of wilshire clients invest with diverse owned

managers. i'll hand things over to my colleague tom. >> thank you lauren. on slides 10-12, you see a team with deep experience and institutional client management committed to serving the board for the long-term. staff was able to meet with many of these colleagues during the diligence process. i think we had very productive conversations around all the critical topics with which the board is familiar, and this is one of the reasons we are fortunate enough to be here with you today. our breath of experience allows us to assist the board in maintaining best practices in all aspckts of portfolio governance. slide 13, the team leverage the broad resources of the firm across portfolio construction, risk and liquidity management and capital market research. wilshire invest significant capital in the talent pool to insure we have the right people to serve the clients.

since 2020, wilshire head count has grown by all most 20 percent including more then 50 people here in california. as lauren discussed previously, this includes a inclusive focus on those with diverse backgrounds, experiences,b and point of view. our traditional and alternative research capabilities means we are investigating and evaluating investment strategy across all asset classes. this information flow continually expands and enhances the knowledge and innovative ideas we can bring to the board. on slide 14, wilshire has the global region broad expertise to match the needs of you as a global sophisticated global investor. as the board consultant, wilshire will dedicate significant resources necessary to insure you have a true strategic partner in providing the

appropriate level of oversight and governance for such a important pool of assets. this includes sophisticated analysis of asset liability modeling and liquidity management which josh will touch on in more depth shortly. as well as education and training for the board and that can take the form of more formal presentations, or informal one on one discussions in preparation for board meetings. we recognize the balance necessary to work soully on behalf of the board and maintain a professional and productive relationship with the staff. we are committed to acting as your independent representative insuring sophisticated day to day oversight of the portfolio. slide 15 provides a snapshot of the institutional client base. i would simply highlight we have a long-standing relationship of the size and complexity of the sfers portfolio and fully prepared to handle the workload in

servicing in. with that, i will turn it over to josh. >> thank you tom. i want to briefly take you through some of the highlights of our asset liability study approach. i want to start saying wilshire believes is fund benefits promised to participants and the role of asset allocation is maximize the safety of the benefits and minimize the cost of funding those benefits. we deploy our time tested capital market assumptions and approaches to those assumptions in combination with benefit streams and investment policy objectives to go through a series of optimized portfolios with the staff. as part of that process, we obviously are mindful of the current volatility in markets and how they can effect funding status, but also have a number of dif-incherated approaches to complement mean variance optimization approach specifically to the

approach to factor exposer. on page 18, provide a brief overview of the benefit of utilizing economic factors from asset allocation perspective. specifically, when you look at economic efficiency relative to traditional risk and return efficiency you can have a unique perspective what drives the performance of your asset and what type of economic scenarios your portfolio is likely vulnerable to. if you look at the exhibit on the right you can see a variety of different asset classes that are plotted against the growth factor exposure and x axis and inflation exposure on the y axis. i call your attention to the u.s. treasury as a example having negative in inflation and growth. growth assets such as private equity and public equity have positive relationships to growth but negative relationships

to inflation. specifically point to the strategic asset allocation shown in the red circle, as you can see there, that portfolio exhibits positive growth exposure and negative inflation exposure. that is consistent how many plans are positioned today because of the contribution to the risk of the more growth sensitive assets to the portfolio. i call your attention to real assets. real assets exhibit a positive sensitivity to growth and meaningful sensitivity to inflation so understanding the different segments of the asset allocation landscape can understand and compare different types of portfolio optimization which optimizing and incorporating constraints on growth inflation to see if you can achieve similar risk and return profiles while controlling for inflation and growth sensitivity.

on page 18, you can see our approach to asset class bucketing, and that's specific approach we bucket together growth assets, defensive growth assets, which are more credit sensitive type of strategy and lower volatility equity, defensive inflation sensitive and diversifying and can take this custom basket approach and apply the same economic factor when developing a asset allocation structure for a client. this importance goes beyond just economic efficiency, but also relates to liquidity which is a big topic of discussion and ongoing topic of discussion for many plans. if we move to slide 21, i want to address innovative work we have done and specifically talk about wilshires liquidity metric. we

essentially reflect high liquidity and low liquidity assets and is a scale 0-100 percent. 100 percent is highest degree and 0 is lowest degree of liquidity. with that framework, we attach our economic factors, so our growth factors and inflation factors, and we use those factors to basically stress the liquidity of the underlying assets, so for example, we discount growth assets based on sensitivity to the growth father and that leads to meaningful discount. the reason that is important because liquid financial assets, while liquid in nature in normal markets often times when you need to access that liquidity that is typically an environment where those assets can be impaired or more distressed in valuation, so what this allows us to do is discount the liquidity of it assets whether growth

or inflation assets based on the sensitivity to the different market rezemes so it is a very good complement to a liquidity coverage ratio, because you can further then stress test those liquid financial assets that are very important meeting a plans liquidity needs. i'll stop there and pass over to ali. >> another additional point on the liquidity metric, commissioner driscoll you asked questions during the asset liability presentation trying to eval uate in a vacuum. one way that we really like to use the metric when it comes to asset allocation decision is compare and contrast the different mix of portfolios and how it effects the metric. we feel it is a very intuitive way of comparing these portfolios which are going to be part of the process that go into the discussions ongoing, so we are very very excited about it the prospect of able to

apply another metric on top of the very interesting ones you guys already incorporated into your framework. in terms of invasions, the last slide i want to leave you with here is page 22. as i mentioned, wilshire is a pioneer in developing risk tools for asset owners. it is a area of focus for me in my career and spent much of my time developing a lot of the tools again with the asset owner in mind. sfers is already a client oil wilshire. you have used our wilshire compass system quite some time and we are all pleased with that. i saw in the presentation that the optimization model incorporates the wilshire compass system. in our eyes the next generation of these tools is risk dashboards that utilize security level modeling. we

model your port fol eio security by security based on traenz paerns into our legacy risk models, and then produce information in a interactive web based platform that allow staff to view the portfolio interactively. it is something we are all very proud of and demoed to staff recently and we are including those dashboards as part of the proposal to sfers. in closing, we feel the combination of all the items discussed today position wilshire to provide sfers a robust dynamic partnership going forward. you should all be very proud of the accomplishments of this portfolio up to date. as already discussed, i think throughout the day there are risk going forward as it pertains to liquidity and those risks need to be addressed and we feel we are the right partner to help you address those risks. we know how challenging change can be but we want you to know how

committed we are to making the change as successful as possible. we are hungry and dedicated at the prospect of working for you. we respectfully ask today for the opportunity to be your next board consultant to help you steward the portfolio going forward. thank you and with that, we will answer any questions you may have. >> commissioners. >> i have questions but don't have to go first. >> you can always go first. >> i don't to be redundant. let me start then. wilshire has a certain percentage of money or assets (indiscernible) >> correct. >> do you use the same

reasoning particularly for the asset allocation mix? >> absolutely. >> okay. are any of your clients significant endowments? >> we do have if doument clients. >> significant-endowments who have say a portfolio allocation as sophisticated as ours? >> we do have allocations as sophisticated as yours. >> in the endowment area? there is reason i ask. >> in the endowment area i probably have to get back specifically of the level of sophistication. endowment portfolios are (indiscernible) >> it is follow up, not a score making. okay. the asset return forecast are generated from in-house, correct? >> correct. >> the correlation matrix in here is that done by a result of your own forecast for the

assets and historical? okay. >> correct. >> trying to find if the sample you did-i was trying to understand how you got the making comparison so i'll skip that part. i think it was page 18. the factor analysis-how many different factors do you consider and then i'll ask how you do it or whatever you think it has a big effect in the outcome? >> specifically for asset allocation process, we consider two factors. growth and inflation. those two factors. those are economic factors. we have tools to explore sensitivities from a risk perspective from other factorss but in terms of optimization, growth and inflation. >> commissioner driscoll, those

are the factors that we measure in terms of sensitivity for all the portfolio mixes we model. page 19, we also then bucket asset classes and i want to make the distinction in terms of the factor by the role we feel they play. this is similar to the asset allocation you already designed woo. we are in line. in terms of factors and bucketing we have more then those two. those are met to address the sensitivity of portfolios to address issues with correlations that can arise. coorilations correlations can be unstable and it can be somewhat of a issue so we try to complement the mean variance approach with the economic factor that josh walked through. >> okay. so, the two factor helps you make your recommendations to your clients and or when you run

your (indiscernible) okay. >> correct. >> i think question 21 you were asked to comment how accurate you thought your forecasts were. the way i read the answer, i say you didn't answer the question. there are the two graphs. i'm curious how strong do you think your forecasting ability--not looking for a-just trying to get the range of accuracy, forecasting. >> i believe-there was request to show how our historical return assumptions have done relative to history. i think you'll find certainly from a fixed income standpoint, they essentially have been very very close to history. land themself to being easier to do. (indiscernible) >> just trying to understand. >> in that study,

there are several pages, other examples where the equity assumptions are compared to history. >> okay. for when you actually make your allocation mix, you combined it, right? the factors with asset forecast? >> right. >> if you do it it is additive. the way it is written in here, youwilshire way of doing asset mix or waiting that is a huge task. it is differentiated so trying to understand that differentiation whether it is competitive advantage or not? >> in terms of development of the capital market assumptions, in that exhibit reference the equity performance over time, you'll see some number of the components of the model that have been more indicative of performance of equity going forward which is why we made

enhancement to continue to improve on the forecasting ability of our equity forecast. i wanted to point that out. also, in terms of the growth inflation factors and why that is differentiated, two biggest factors sensitivity rezemes from a macro economic perspective that plans need to be mindful of, and this is more macro related are growth and inflation. i think last year is a prime example of that, where correlation, the reason we develop this is correlations can be unstable in environments like that. they can break down and so what we saw in 2022 was a environment where correlation broke down. for those investors who considered growth and inflation factors in the portfolios, could recognize in advance of a year like 2022, that their portfolio had perhaps undo sensitivity to inflation as a example.

because of that, by incorporating assets that have greater inflation sensitivity when we run optimization and sufficient frontiers you can compare two frontiers and one that constrains on the inflation factor, and you can build a portfolio or seek to build portfolio that achieve a similar risk return profile, but also achieves more inflation neutrality. going from a negative inflation sensitivity to perhaps a more inflation neutral portfolio because of the incorporation of inflation sensitive assets. we find that to be very very important. there will be more environments like this in the future and we think that is a key dif rinchiator? >> how long have you added it into the operation and using it opposed to studying it? >> so, our growth inflation factors introduced 7 to 10 years ago roughly. 7 to 10 years ago. ment since that time

we use as part of the asset allocation process. >> so it isn't brand new for us. thank you. the statement diversification offers less protection against draw-downs. were you addressing that point, that explanation? >> diversification may represent less if it breaks down. looking at it from a economic efficient approach you can get a different perspective. >> okay, before i get to the -you started as a technology company, you are grown and are huge. you collect tons of data and and data is growing. for all the people you have in the wilshire kingdom, are any from data scientists? >> yes. in fact i

have a team that i work with, addressed in the resources page, called the alpha strategy team and what the team -it comprise of ph.d and mfd and the responsibility is evolve and enhance the process. we developed the number of technology based solutions that allow us to run portfolio sensitivity, conditional analysis, stress test portfolios, analysis to measure performance of managers. we also utilized that team to develop a number of market signals to improve the market intelgence, global valuation, heat maps, we have a quantitative team and they are a big drive of the invasion at wilshire today. >> i echo the point. in my role working in terms of developing comprehensive risk management solutions for asset

owners, that talent pool is tremendous. the work they do is really really innovative, and the important point, our mandate is the board consultant is to help with the asset allocation and governance process and help with measure performance and report performance to you, but you also will be tapping into the eco system of talent tap under to as needed to service your account as mentioned my comments and i can't under-state how important that is from our standpoint. >> great. this will be my last question. i assume that anna and kurt and allison-interrogated with the site visit and rfp, i focus on one or two issues important to me. the phrase converting risk to attractive returns on page 44. powerful statement. just wonder if you can explain that statement.

>> eel i'll start and pass to follow up. we are not about managing risk being risk avoidance. as investors you have to take on volatility to achieve the return. we don't think it is just about reducing or eliminating the risk it is find ing the right type of risk and you get com sated for and mitigate those you don't feel you are compensated for. one of the points i'll highlight in our section on invasion is approach we have come up with called actionable active risk. we laid out with public funds and gotten good feedback and the idea in terms of the active performance, a lot of that which you realized over the last few years is driven by the excess return from the private market and that can be really large in terms of dominating the tracking of the

portfolio and mask some of the risk in other areas of your portfolio, primarily in the public market portfolio, because of that large effect. one way we dealt with that is coming with this actionable risk metric where we eliminate the contributions that come from the inactual asisets, such as private markets and allow a risk budget applied to the actionable component t. is targeted in a way to make sure the risk you are taking in terms of active decisions are those you feel you can be compensated for and allow to mitigate the risk you don't feel you can be compensated for. >> okay. there must be a story that would go with that. dont explain it now. my curious point, have you asked them to explain or prove this point? you got the evidence? thank you. >> let me just say one thing, i

have been through a lot of these searches. i have to commend the staff. the level of due diligence starting with the rfp and on psite and follow up calls is one of the extensive i have been through. >> thank you, that concludes my questions. >> any further questions? okay. thank you. >> thank you very much. we appreciate all your time.

>> can you hear me? okay. good afternoon, and thank you so much for the opportunity to speak with you about our firm, and provide you with hopefully a understanding of how we would work with you. my name is name eileen neal and with me is shelly higher and scott wayland. there are three statements that we would like to leave with you. if

you remember anything what we say about our firm, and what we have to offer and are that is number one, [difficulty hearing speaker] very experienced-we worked with a number of public funds all over the country through all types of market environments. number two, (indiscernible) with san francisco (indiscernible) because we are hundred percent employee owned, and we only have one line of business, and that business is providing institutional consulting to plans sponsors such as yourselves, so all these paid to us by the clients (indiscernible) into the services resources personnel that serve those clients. the third is that we have a very robust

process regarding asset liability studies and asset liability management and (indiscernible) with that, we'll introduce ourselves our background. i'll start with mine. i have a over 30 years of institutional consulting experience. the bulk of which earned at my predecessor firm, wilshire. i have been at verus now 5 and a half years and throughout my career, i (indiscernible) serving largely public fund client but works with other sectors as well. i have a strong reputation, a positive one in the industry for being a not only knowledgeable, but also someone that is straight shooter if you will, and that will provide you with solid advice. i know a common

criticism of consultant is we sit on fences and don't provide clear opinions and that's not true of verus and certainly not true of me. >> my name is scott wayland, been with verus over 20 years and i 3 primary functions at the firm. i head the public sector team and in that role i make sure that the consultants are collaborating and implementing best practices with our clients. i also serb serve on the madgement management committee and there bring perspectives from the field to make sure the executive committee which shelly sits on, has the information they need to manage the firm now and into the future and most importantly, i serve 5 client relationships, 4 of which are california public plans, 1 of which is across the

bay in contra costa county and (indiscernible) i do my best to make sure they meet their investment objectives. >> also, i work with the client on the other side of the bay, alameda county as well as state level funds, such as (indiscernible) state of wisconsin, which are two very well known and respected funds. >> i'm shelly higher, the president of verus, been with them 23 years. i oversee consulting and investment research teams and in addition also active senior consultant on a number of our key client relations such as what we are proposing today. i would be a member of your team primarily responsible insuring this capability experienced team has the capacity and continues to maintain that capacity and resources from our investment

team to successfully meet but hopefully exceed your expectations. (indiscernible) scott or eileen i would also quickly step in to make sure you have two senior experienced professionals involve in your relationship on a day to day basis. >> in addition to the consulting team we spent a lot of time thinking about the supporting team and the role there. ypt to start just by saying we are problem solvers and the folks on this page really are there with specific skills to help sfers solve their problems. one example is, we identify a issue with our private credit capital market assumptions, and the fact that just one catch-all capital market assumption for private credit didn't reflect the way our clients were implementing the portfolios so thomas garret, who heads up the team that develops our

capital market assumptions worked with chris shellby who heads up the team who researches private credit for the firm and come up with 5 different and specific private credit capital market assumptions we bring to reflect the ways in which our clients implement their private credit strategies. that's just one example, but a good one to show how the folks on this page really work together to solve client problems and we would anticipate doing the same for you. >> i like to move on to the next page to give you a brief introduction of verus. before i do that, i need to preface about our business model . our focus is service sophisticated institutional asset owners served by experience and season investment consultants who are

supported by extensive capital markets, risk and manager research support. to keep that in mind as we go through the statistics i have on this page in the upper left corner it talks about our team. we have average number of clients to consultants of 5 to 5, and our target as a business about 8 to 1 as our maximum. to serve the sophisticated (indiscernible) maintain the low client to consultant ratio and capacity and focus and attention to the unique needs. the team we are presenting today has 12 clients total so 6 to 1. we have ample capacity and that is my job to make sure we maintain that capacity for san francisco. another thing on this page in the lower left you see comments about our size. this business model has afforded wonderful level of growth, we are proud to be the 10th largest consulting firm in the u.s. we

have 650 among friends in assets, over $500 billion is public pension assets. we work with the most california plans, we have 13 california public plans we know your peers, we know your folks in the area and we work with a number, 20percent of the state plans. these two individuals, hundred percent of the clients are public plans so our firm has quite a bit of experience in public pension plans and your team is extensively experienced in public plans. we are able to bring you thoughtful research. the other comment on the page in the upper right corner, it is under the category of commitment. it is important to note our business model insures no distractions for the staff and eileen and shelly of verus and minimizing if not eliminate conflict of interest. we only have one source of revenue, the checks that come in and pay our bills

are from one type of entity and that's institutional asset owners. no money manager business, those are ancillary business or software or service. we are proud to be and continue to be employee owned. 35 share holders of verus you are look at 3 here and it is important to us and that afford us a lot of continuity in our consulting team. the bottom of the page there is a couple statistics researched throughout the conversation today you will hear highlights. there is a lot of details about board education. the publications we made. the commentary on sbe. i'll take to the next page and tell more about the team behind scott and eileen and myself. page 4 shows all our people. 84 investment professionals which comprise 95 percent of the total employees because we only focus on one line of business. scott gave

great example of the access investment stats for san francisco as well as the board will have to our research team members and solving unique challenges or learning about unique opportunities. i thought i would highlight on this page how esg is covered by our invest ment team and we got a page in the back i think page 20 that gives a better sense what i'll describe for you. esg integrated within all of our teams. all cover esg. the firm underwent the csa intert institute training and certification program rkss and we used the methodology as a standards basis for communicating and educating for rating managers and classifying managers and strategies across the spectrum of esg style so a highlight how we cover that, again if we have time later we can cover esg further.

(indiscernible) provide discussion about the current asset liability study, because we believe that asset allocation is the most important decision that you as a board make as well as articulated during that discussion. our approach to assisting clients and developing a asset allocation policy is via study. we think it is important to take the holistic integrated approach because it isn't just the maximum return given the level of risk you are seeking to set your policy on, but it's asset allocation policy effect the-what we consider key pension risk metric. on this slide in front of you,

we basically focus on these 4 sort of quadrants with respect to the liability side of the asset liability study process and we took a look at your actuarial valuation and some of the information related to the financial condition of the fund and you as stated very fortunate. you are pretty much fully funded, you are in a unique position relative to peers so in terms of volatility the funded status we say there is low concern at least at this point in time. in terms of contribution policy, again, there you got this risk sharing and at this point in time with discount rate assumption that you have, there is a lower commitment if you will then if-i think this was mentioned

earlier, if that reduced further and would prompt higher contributions from the employers and employees. at some point, employees are going to assume hundred percent responsibility for the contributions to the fund and at that point the volatility associated with contribution policy will become a bigger factor in the evaluation of policy alternatives so that leaves the bottom two quadrants of the circle and cash flow, as mentioned earlier, the plan is currently cash flow negative and projected to go 3 percent. that is modest. the raisk range we are seeing is 3-6 percent range. that is probably a lower concern related to liquidity, but the remaining quadrant, the level of liquid assets, the fact the plan is roughly 40

percent liquid is clearly the most significant focus with respect to the key pension risk metrics and so it is understandable why a lot of the discussion earlier was based on the liquidity coverage ratio. we believe the integration of liabilities into the consideration of the asset allocation policy is so important that we have subcribed to the (indiscernible) asset liability modeling platform which is the same platform used by most actiaries in the industries. that insures that we are-have a high degree of conviction when we examine the volatility or risks associated with some of the metrics we covered that we have

the right data and not making our own assumptions and potentially not reflecting in our projection or in our advice, the right foundation. the top two exhibits on the slide are very similar to what was included in the information you saw earlier from your consultant and staff. the bottom two exhibits give you a sense of the level of customizationism bogets of the exhibitsed were created as analysis specifically to address clients unique considerations and so we have-because we have risk professionals on staff and risk is a core element of our consulting services, and we have resourced ourselves in order to appropriately reflect the risks that you face as a plan sponsor, we are able to produce highly flexible and

customized approach to asset liability studies. the next slide we presented to the staff when they came on site and the-i'll focus on the right hand chart, because that is specific to san francisco. what we did there is kind of a 3d chart, is we are looking at how the funded status may vary if there are fluctuations to the contribution levels as well as the discount rate assumptions, so it gives you a flavor of the depth and breath of the type of information that we incorporate in a asset liability study. (indiscernible) from staff on the liquidity coverage ratio

developed by verus, and it was developed to address a specific client need, a client that like you has a total asset allocation policy that incorporates leverage. they are 10 percent leverage so they were very concerned, because when you introduce leverage, you then have to introduce a (indiscernible) i will say that your staff has kind of solved that issue by the very creative solution of incorporating or integrating a credit facility with the security funding pool income. on this slide and (indiscernible) from the commissioner about is 1.5 liquidity coverage ratio the right level? this particular chart shows one analysis where we are looking at the variability in that ratio under different

drawdown scenarios. as part of our process of working with you to engage in asset liability study, we would actually work with you focusing on what the appropriate target and range around the liquidity coverage ratio target would be and scott will talk more about that process. we also employ a factor-what i call a factor based asset allocation policy and that works very well [audio cutting in and out] views risk in asset allocation policy. we were early adopters integrateing factor risk analysis into all aspects of the asset allocation setting process and in consulting services and so this slide is another slide that we covered with your staff during the on -site and this shows

the-the most left side the current target for the san francisco portfolio and then two alternatives we looked at that basically looked at different risk levels, but still incorporating leverage but different levels of leverage and that was discussion point earlier. here we are just comparing a capital allocation diversification, versus the factor allocation diversification and clearly it is a very different picture and clearly even though you have exposure to many asset classes in terms of the capital allocations, the risk is highly driven by equity risk exposures. >> i appreciate the time that you guys have committed to spending with us and going through the process today. one specific thing we were asked and wanted to make sure we responded to was invasions that we as a firm have come up with

and i think objectively speaking we have been very strong in this area. there is four i listed here that were impactful for clients and industry as a whole. i will go through three of them samarally and dive deeper on one. i want to start with our risk advisory service business that evolved over many years, become what we believe the gold standard in the industry in this area. it is a powerful tool fundamentally we use that allows those that are so inclined to evaluate the risks in their portfolio, efficiently track manage and communicate the multitude of risk factors using proprietary dashboard we put together. i'll skip over the liquidity coverage ratio for a moment and come back to that and talk about

our enterprise risk tolerance assessment alluded to earlier. this came about based on our observations of the series implications to pension plans that came from the tech level bursting and really relatively shortly fallowed by the global financial crisis and what we found was that most plans consider return first and risk as a residual outcome of the process of trying to meet the return rate. which is backwards. you should understand your risk tolerance and then get the return as a residual outcome. (indiscernible) understanding the return is at least equally as important as risk but it is chicken or egg thing and we believe understanding your risk tolerance comes first. we do that through a

multitude of approaches. (indiscernible) commissioner interviews, staff interviews, along with assessment of the ability of plan sponsored to incur risk and really thinking of it in terms of plans sponsor health and we like to do this at the beginning of every relationship and also periodically throughout the relationship. we also have a invasion, maybe one of which i'm most proud of and that is the iidc. the institutional investment diversity cooperative which is shelly's brainchild and she brought this to life through her tutelage. this is something that follows on to a truism that i say often and that is you get what you

measure. [audio cutting in and out] developed and implemented a clear measurement tool that all parties in the investment consulting business can access through investment where there's set standard of measurement of diversity across all investment managers and then what shelly did next was she went out to all our colleagues in the investment consulting industry, got 27 of the largest to sign on and commit to insuring the managers they evaluate our submitting data to investment and now there is the 27 investment consulting firms and $43 trillion in assets under advisement that follow this protocol. that brings me back to the liquidity coverage ratio, and what i will say there is, first of all, we were

very proud to see that you guys use it that your staff uses it and also tell the story how can came about. as a illustration of how we work with clients in developing these invasion. (indiscernible) of one of our largest public pension plans who was very concerned about the level of illiquid assets they can have. he come to us and asked us to think about the problem. we did some deep research surveying the landscape of public funds and other institutional investors about how they address it and really learned that there wasn't a lot of thinking that had gone into it. we landed on the liquidity coverage ratio defined by the basal 3 regulatory rezeme and spent time to see if that made sense and established it did

and we were really enamored with the simpplicity and elegance in the simplicity. provides a good powerful lens into the liquidity question and how much (indiscernible) through setting a range, doing both deterministic and (indiscernible) stress testing and really just trying to identify the sensitivities of the ratio, but we have used it every since. we use it frequently with clients. i had a conservation with a client yesterday (indiscernible) accurate as possible, and this was i think a good example of how we could partner with you to insure that through invasion we are bringing the best answers to solve your

problems. >> i know we are pretty close to time, so want to wrap it up and by saying basically what we started with, that we hope that you do take away what we believe are the key (indiscernible) number one, our team is very experienced in working with funds of the complexity and size of san francisco, and we are used to working with funds with staff that is very experienced as yours is in a very collaborative fashion, and working even with other consultants in order to ultimately achieve your objectives. we believe we were on team san francisco and all on the same team so we are always very collegial even when sometimes we have disagreements potentially as they arise. i think second, we are again very aligned in that 100%

of our personnel and resources are dedicated to the provision of consulting services to institutional plan sponsors. no conflict of interest. no (indiscernible) businesses and 100 percent of your fees go to supporting resources that are for yourselves. and, i think the last point hopefully we made in spades and that is we have developed robust resources, so we have been wise in investment of client fees and developing-insuring that we got the appropriate analytics and personnel and processes to support fiduciaries for very lanch large funds making the important decisions you do which is primarily asset allocations but there are many others we didn't touch on. with that, we thank you so much for the opportunity. we would

love to partner with you as your consultant and with your staff under the leadership of allison who i know from a prior life and respect tremendously. we are looking forward to your questions. >> any questions from commissioners? okay. [difficulty hearing speakers] >> thank you for the presentation. i appreciate it. one piece that stuck out while you were speaking is founding of the diversity cooperative and also, the firm is hundred percent owned by employees. can you talk more about how verus implemented diversity equity inclusion initiatives internally and how your company (indiscernible) >> happy to do that. kick me if i'm talking too long because i can spend a wlaut of

time on the topic. we are folk- >> just ask you to be brief. >> i will. >> we have a tight agenda and are goes to lose quorum shortly. not related to you all, but i just wanted to put that out there. >> thank you for discretion. there are three things we focus on and most importantly this is coming from the top down. this isn't a committee in the corner trying to push these things, this is coming from the ceo and myself and our executive committee. we focus on diversity in 3 important area. us, what we do to support diversity inclusion at the firm. we appropriate hr practice to insure diversity in recruiting and promotion practice. we have a strong pay equity practice and then we have quite a bit of focus on inclusion activities and can go into those in more detail if we have time later. the second later is work recognizing the role we play as gatekeeper frz institutional assets.

asset managers need to come through us and not just your mandate but most of the clients we are the gate keeper frz the asset manager selection. we have a important role there so we-extended that to become the iidc but we believe diversity isn't just measured by it ownership of the firm but also the composition of the staff and the key decision makers and so we focus iidc on investment decision making professionals diversity and getting better data around that. that will contribute to further economic growth as well as alpha or results for the clients. and then the third area is respect to clients. we have put quite a bit of effort into growing coverage of diverse managers. we have data on managers that have diverse teams and (indiscernible) considered by our clients. those are the three areas we

focus on to make sure we make impact on that front. >> thank you. other questions? >> yes, i can follow up because that was going to be-i think commissioner (indiscernible) that is a major question on dei. you talk a lot about esg and how you incorporate [audio cutting in and out] you talked about minority managers, how many minority managers are you deal wg today? >> that is a good question and will give guesstimate numbers and happy to circle with specific numbers. it is important to remember we characterize managers and track them in the database and track are they diverse owned because that is a common industry so we have quite a few of those. also identifies with diverse teams. and then we probably have over a hundred managers in our database that we tagged that were researching

in conversation with. i think we have 20 or 30 we have assets with. we are working to grow that number and happy to circle back with actual dollar amounts. >> love to know that. when i look at the verus team it isn't reflective of that. >> you are right, we have work to do onthality. that. we have a number of public plans with diverse manager programs as well so we can also provide more on that. we helped to develop many emerging diverse manager programs for clients and helping have dedicated exposure there. our approach i think that is really important and what is most successful is integrated into all our due diligence. every manager that we talk to we are understanding what is going on, what are they doing with diversity and promote inclusion and doing to improve the diversity of the organizations and can report on that. every one of the due

diligence memorandums have a section on the diversity. it is part of everything we do. >> you can't hold a manager to the standard you don't practice. >> right. (indiscernible) we are holding the standards so the network and framework and disclosure standsards we promote upon asset managers all the consultants said and we'll do the same. >> exactly. you can't-i can't ask you to do something (indiscernible) when i look through this t is like okay- >> commissioner bridges can i respectfully jump in and try to address that? looking at me as a old white guy, you (indiscernible) respectfully we are based in seattle washington. that is our headquarters. it is not a known area of diversity. so, the talent pool we are choosing from isn't representative of the broad diversity across our

country, so i'm not offering that as a excuse, it is explanation. i will say that we just recently hired-we just starting a chicago office. we recently hired couple professionals there, and 50 percent of that hire is one is a black woman. it is one person, but we pay attention to this and are try toog do better. >> that's what i was looking for, the commitment, and that is basically what started my question t. is one thing to have it on paper, but when you talk about the cooperative but if you are not practicing it, then- >> understood. >>b it is hard to track for me. >> also, the team that we highlighted both with the-those are very very senior dedicated folks. we have a lot of other folks-verus is a firm (indiscernible) >> it should go (indiscernible) thank you for the explanation.

>> we are creating opportunities hopefully for those individuals that we are bringing in that are diverse. >> and also what you give back into the community in seattle. >> we are. >> (indiscernible) >> i think that is even more important. >> it is. >> that's not measured. >> it isn't measured but (indiscernible) what you give back to the community to support the community that you- >> hundred percent. and it building the talent pipeline for the future. >> exactly and that is where you pull from. >> which i think is where most of the focus should be, but it's not. >> thank you. >> any other questions? >> yes. (indiscernible) >> the services you can provide, what is the short answer what you do for wisconsin?

>> so, we-wisconsin does not use general consultant, which is- >> project work for them? >> no, no, no. they use stable board consultant for different activities or functions and they- >> retainer consultant. >> we are a retainer consultant there, and have worked with them for many years, and we worked with them in two capacities as (indiscernible) a benchmark consultant, and compensation consultant. wisconsin manages 2/3 of assets in-house and they have incentive compensation program for their staff to reward them for that internal management, and in order to provide sense of compensation that is reflective and

objective of their performance they need good benchmarks so we work with them to develop benchmarks for assets classes, individual mandates. it is 50 plus benchmarks public and private and we developed another invasion. a compensation metric and we do on a project basis this type of project is assisting entities, mostly endowment foundations with investive programs establish metric for their teams and that is what we have done for wisconsin and we update that every year with the board. >> thank you. the ert, you do-you have a process interacting with board and staff with this ert? >> yes. >> i assume it is proprietary product? >> yes, survey we develop.

>> you wrote here that (indiscernible) you thought our risk tolerance was 18 percent? (indiscernible) >> i'm not sure we have made a statement about your risk tolerance. >> maximum of 18 percent tolerance. that ring a bell with you? >> nope. >> it is in here. >> okay. can you give a page reference to kraez address it? >> >> i congratulate you (indiscernible) stuck your neck out by answering that question that way. thank you. there is no right answer, but curious how open you would be with us in your opinion. >> (indiscernible) >> let's go back to risk tolerance. you have different clients with all sorts of different situations. you were here a hour while we

were talking about our--what i was leading to, i think a question was, did you have advice for us now and did i read correctly that you suggest we go up to leverage of 1.5, not 1.0? >> no. what we have done to this point in terms of your policy is just provide a couple of different scenarios that if you wanted to reduce risk, which sometimes plans when they are fully funded have the luxury of reducing risk, and so that's a possible alternative because i don't think you are there frankly, but you will be probably in the next 10-15 years. so, that was a alternative that we provided to staff simply to give them a sense of how the process that we would work with goes, and then the other alternative was to increase leverage, and keep

the risk level the same as it is currently. but we would really in order to answer that question well, we would have to have an understanding of what your risk tolerance is as a board as many different levels in order to answer that properly. we are assuming your current risk level is reflective of your risk tolerance, but you probably haven't engaged in the process you would with us at that level. >> i will make this the last question and wish i could find-i think page 34. don't waste your time look frg it right now. when you take clients, new client through the process, do you think they actually significantly changed their risk tolerance one way or the other? >> good question. i have been through this process numerous times, and this is education process for both consultant and board, and i think the

answer is no, not significantly. it is a conformation of where they are. some focus on different risks and this isn't just one. you use the 18 percent. this isn't just one risk metric, it's a holistic approach and largely qualitative approach of circling in on where the board is comfortable. but i think the simple answer to your question is, not a lot of significant changes across the clients i worked with. >> okay, thank you. if i find the reference to the other question i'll let you know. that concludes my questions. >> any other questions commissioners? what's the next step madam cio? >> this isn't a action item. >> this isn't action item. at a future meeting, the staff will come back with and work on a recommendation. >> that's what i assumed, i

just wanted you to say that into the record for anyone listening. we had two presentations by two different groups so didn't want to abruptly go to next item. thank you. >> will there be a opportunity to provide (indiscernible) follow up with staff be-okay. >> absolutely. >> thank you. >> any members of the public that wish--public comment on this? that was item 10, right? member ozf the public that wish to comment on this item? seeing none, public comment is closed. madam secretary, please call the next item. >> thank you all very much. >> thank you all for coming. >> thank you. >> item 11, action item. recommendation to hire mercer investment llc for public markets investment consulting services. >> before we do that,

commissioner heldfond has to make a statement. you have to turn your microphone on. >> i'm going to abstain from this item. recuse myself. >> what we should do is make a motion to recuse and vote on that. motion to recuse commissioner heldfond? (indiscernible) we have a roll call on that please? [audio cutting in and out] >> does this relate to what we are doing? the next item. okay. >> he would be too late to recuse himself. [roll call]

>> 4 ayes- >> you are excused. please call this item madam secretary. >> the same item? >> yes. hold on a second. i am ready to go. i want to be cognisant of time. i have 7 minutes. i think this is a staff recommendation, so unless there are real questions from commissioners, this should be a pretty straight forward item and don't think we will have a presentation. if there are any questions-do you have questions? >> yes, i do. >> okay. we might not-go

ahead. >> it won't change my vote. i will follow up afterwards. >> that would be helpful. because of that, since there are not any questions, can i have a motion to approve this item? >> i move adoption of staff recommendation. >> second, please? >> second. >> motion made by commissioner driscoll, seconded by commissioner thomas. any members of the public that wish to comment on this item? seeing none, public comment is closed. motion by commissioner driscoll, seconded by commissioner thomas. can we take this-all in favor? >> aye. >> opposed? okay. the item is adopted without

objection. call the next item. please bring back commissioner heldfond. >> item 12, discussion item. esg practices and cim group. >> you can go ahead. >> okay. this agenda item is on the agenda at the request of the board. as you recall prior meetings you asked for us staff to talk about detail the investment with cim, the extent of the investment and cim practices. as a prefacef the conversation i want to say as a matter of business practice we do not discuss individual portfolio holdings of private market investments. these are subject to confudench yaelt. what we can discuss is assets management, the funds generally, sfers less due diligence process and our general esg findings at cim.

we have $109 billion invested with cim. through a number of funds and majority of the funds in particular are core where we are largest exposure, performing well and exceeding benchmarks. with respect to esg, the sfers organization and staff is committed to considering esg factors in the selection of funds. we take the issue associated seriously as it relates to long-term risk and return. when we hire manager and we seek board approval, the team is done extensive due diligence process. we sent to the manager asset questionnaire, meet staff and include as you know esg selection in investment recommendations that go to the board for approval. esg is tailored for

the investment we invest and as it relates to investing with real estate managers factors we would take into account is looking at property management practices, tenant and labor relations and community engagement. beyond the diligence when we recommend higher of manager we do rotating review of managers once part of the staple. we also do ad hoc review if matters arise as things come to the attention and in the news we will engage with managers in these cases. keep in minds sfers is a limit ed partner and does not direct decision making on individual assets. specific to cim, what has staff done? in 2021, we conducted due diligence on cim esg practice. had over 20 conversations and

meetings with cim over the last 2 years, many conversations have specifically been relevant to esg or part of a broader conversation. we reviewed cim policies. the esg reports. other documents, and some cases engage in dialogue regarding practice and issues at portfolio holding level. those cases we talk to investment team and many cases talk to property managers at specific property locations and assess statistics regarding those particular holdings. after the thorough research and ongoing dialogue we had with cim, the team concluded that there were no identification of material issues associated with cim practice that significantly impact the risk and return profile that we underwrote. we will continue to monitor cim and have engage in dialogue

with them to understand as they evolve their practice and address issue what progress continues to be made. they also have been in close dialogue with us and been accessible to answer any questions that we have. so, those are my general comment and i welcome any questions from the board. >> commissioners, any questions? realizing this is evolving issue. >> i have one question. this cim issue relates to a property involved in that we are not directly involved in, but relates to the activity called organizing. i'm just curious then of the attributes and we try to assess any of our investments with, when it comes to the people who own the company or general partner, is that a issue we ask

them about-not about how they manage their own people, but if they get involved buying portfolio companies where they may have influence on how that company operates and how they treat their people with the subject of organizing might come up, is that a issue we try to identify if they are not pro or con labor but do they have a position about that? loading tricky question, but i like the report done by the esg group but i want-whether this flavor of the issue comes up at all.

lot of levels of due diligence and the issue of materialalty. if you were to find

out that perhaps a company and they hire also groups to manage their properties, even further step away from limited partner, but do you try to assess if they have history of being anti-organizing and anti-workers rights, that kind of thing? >> [unable to hear speaker] >> pardon? >> the mic has to get fixed. >> having to repeat aspects if you didn't catch that commission driscoll. i think the answer is similar in that, our esg due diligence looks particularly for a closed end

fund where we are investing at a point in time before investments have been deployed. we would look at the past practices of a manager with respect to esg and prior funds to try to understand how they may manage environmental-different environmental social governance risks relevant to the outcome of the business, the ability to operate erate in the community, relationship with human capital. so that is informative to us as we look forward to consider our esg due diligence for a future commitment, we would certainly assess their past practices and track record around esg factors. >> we will have a perfect score but they are aware it is a issue we measure among all the things. >> correct. >> great. thank you.

>> any further questions? >> yes. >> we don't need to emphasize any further then we already are. okay. >> thank you. so, first i like to thank staff for the report that we asked for that was presented today. i think that it demonstrates how seriously that we take this as a organization. we had heard comments earlier today about similar issues with brookfield and i think that it says something about this retirement system that we take these things very seriously when they come up, whether they are allegation or things during the investment process. i also think is very important we pay attention to the fiduciary obligations, we get training and take them very seriously as well. we need to provide for the members going forward. it is concerning you hear allegations we (indiscernible) human suffering. and i think it is a point we conduct these sort of investigations

and appreciate the summary we got of the due diligence not just done in response but regularly as part of what we do in our investments. i do think that when we look into future investments it is very important that we have a robust method of looking at these social components, whether it is allegation of union busting or harassing tenants or other type of behavior, we make sure it is a robust part of future investment [difficulty hearing speaker] partnering with those who are possibly practicing that, we need to have a very robust analysis going forward. i do thank the staff again for the response and for the work you all have done on due diligence. thank you. >> thank you. >> questions? if not,

there is no action, right? we need public comment, right? please. >> seeing no public, public comment is closed. >> thank you. please call the next item. >> item 13, discussion item. sfdcp manager report. >> if i may offer up, i know we-i think we have 45 minutes. we have the opportunity perhaps to take 13 and 14 as submitted to allow time to then get to 15 on the glidepath and then later on there are two items that i would suggest we take as submitted and perhaps move the governance policies to a future meeting. >> move 13 and 14- >> 13 we can take that as submitted. >> 14 also?

>> and then move to 14 and do-if- >> so, been presented we move 13 forward accept as submitted, and is there discussion on that? okay. >> so, vice president heldfond, i'm fine with moving 14 submitted to get to the action item, which is 15. that is the recommendation, am i correct? >> we are on 13? >> we are on 13. we need to take public comment and get through 14 as well. >> seeing no public comment, public comment is closed. >> item 14, discussion item. differed corchlsation compensation committee

report. >> i move we take this as submitted. >> second. >> moved and seconded. >> i lost track of numbers. which are we on? >> 14. >> one was labeled as discussion. i make the motion. the issue about the glidepath- >> we are not there yet. >> okay, it was under 14 on my binder. okay. stop. go ahead. >> we are on item 14 is moved and seconded. public comment? >> it is discussion item. >> we don't need a motion on 14. >> thank you. >> any member s of the public who would like to comment? seeing none, public comment is closed. >> item 15, action item. approval of the target date funds glidepath and tactical asset allocation bands. [audio cut out]

>> i'm not making a motion, i'm ready to vote against it, that's why. i know there is work to be done. i'm trying to figure a motion that won't stop what has to be done. there is something about the glidepath-not only do i not understand it. >> we were go toog have a presentation. >> let's take a deep breath and get back on the agenda. we are on item-glidepath issue is

right now. we haven't had a presentation. >> is this discussion or action item? >> this is action item. >> the fact it is mislabeled on the agenda as well as in the binder. >> it says action item. it is incorrectly stated the action says discussion only, so it is not clear-cut, but there is enough notice in the materials that there is-there was a action here for this item, so we can move forward with as a action item. >> it was posted on the web site as action item. >> there was more then one version of this agenda. the agenda posted was correctly stated. it is different from what is in the material. >> i'm going to exercise the boards prerogative. we are going to pull the item or agree which it is action or not, period. >> i don't have time to figure

a motion to keep the work going forward. if i had known it was action item i would have focused on this as well as the last couple hours. >> i think there is motion to put it off if that's necessary. >> we don't-we like to present the item to you and we would like to hear your concerns as part of our recommendation. we can do a 5 minute presentation. our board is right now primarily subset of the committee. the committee approved to full board with recommend ation. >> make your presentation quick and then have hopefully we'll have time to address commissioner- >> okay. >> that sound-good for you, joe? >> make your presentation. i'm try toog make sure we stay on schedule for today. the answers i got on-the written questions submitted a couple days ago, it can take more then a few minutes to get

the questions answered to get clarity about the guidepath design. we discussed at the meeting but i got more questions and let's say my doubts about how the glidepath was designed increased, not decreased. the glidepath as we know is the (indiscernible) differed comp program and (indiscernible) >> i believe that we did offer those answers and offered the ability to have a call. >> yes. >> right. >> excuse me for being in a conference. >> i wanted to understand if possible if you could voice those concerns so we could address them today. >> no, i can't. sorry. how many minutes do we have left? >> we got--realistically we got about 20 minutes for this item. >> yes, i think if we could

make progress and addressing some of your questions today. we certainly want to make the full board comfortable with the decision, but we do have time today to shed light on the issues at hand. >> i'll try to make as concise as possible the measurement problem that goes to the guts of the glidepath. >> considering the presentation is before the board and that the majority of the board consist of the dtc and like to ask commissioner driscoll if you like to move forward with his questions. if it isn't a specific page on the deck i recommend we have andrew on the line waiting very patiently in baltimore to address them. commissioner driscoll, where would you like to start? >> wish i could pull up the pages but i pulled them out

already. the questions i asked this week had to do with the replacement ratio issue. and the table-i wish i can tell the page and (indiscernible) the same question about-there was a total compensation they were using, they worked it down to certain mandated deductions for the member, and then that lead to what was to be the replacement amount. i tried to convert to ratios and got the answer sent back to me to include can we set up a phone conversation so there is efforts to resolve this, but here we are this time of the day with something i thought was going to be discussion item and now it is classified as action item. forget about the parliamentary. i don't think we can solve this in a few minutes. i hope to talk to the gentleman who did the

glidepath. i think mr. vanmalen and based on the demographics come that went into the glidepath design? >> can we address that now because he's on the line? >> try for it. >> if i understand this correctly, i believe you had questions about slide 7. andrew, can you pull up slide 7 so commissioner driscoll can see what we are talking about? in short this slide was supposed to be a simplified version so you could see sort of real life case studies across these different demographics. this is number 7, correct. is this the slide? >> it is the next one. the ratio line and how i wrote between what we have now? 15, 16 tiers across the 3 plans and i pulled one plan to get to the question about what is the replacement we are

driving for? >> okay. >> happy to jump in since this is our work. so, i think back to diane's comment, this slide in particular slide 7 is really a snapshot of a particular case. the glidepath incorporates the entire distribution, but this was supposed to be illustration that of the particular case or average case to show how the replacement ratio works. to specific question about the replacement ratio, we don't target a specific number or dollar amount. every single individual in the simulation will have their own ratio and that ratio is ultimately based on their compensation and how much they choose to differ. the idea is really to match the take-home pay pre-retirement in retirement and so one thing

that you see for people who differ more to the pension or differed compensation plan, the take-home pay is lower so the ratio of the income is lower because they choose to differ more. similarly for somebody who differs less as a ratio of the income that ratio is higher. what we think about is it take-home pay or purchasing power and compute those amounts and get distribution of those for each of the populations and that becomes ultimately that dynamic relacement ratio individualized at the participant level. i'm not sure if that provides clarity or more questions, but ultimately i think that was the crux of your question. >> it is similar to the answer you gave during the committee in your presentation. that's why i asked about replacement.

is the goal replacement come off of the pre-retirement income or post-retirement income where the defined benefit kicks in and i look adit the numbers and thought these are wrong. i focused on one group. >> right. this is trying to simplify the numbers. this is a more in depth picture what we are trying to solve for, and the idea here is to really the load we expect the differed compensation plan to bear when it comes to the income need of retirees so the way we get to that number is we ultimately look at pre-retirement take-home pay as consumable income, so basically it is what somebody makes in terms of salary minus deferral for taxes, savings in the pension plan, savings in the

defined contribution plan and we take the take-home number and adjust the retirement amount so after the different sources that become the same number in retirement. the goal is 100 percent purchasing power parody from pre-retirement to post-retirement becomes the goal and how we get to these fuchsia or pink slices of the pie, which is in the-when we look at estimates of pension, so i (indiscernible) in this it looks at the average firefighter at retirement and so the expectation would be that with their actuarial assumed 21 years, the pension would cover about 37 percent of their income needs.

they would also have some-the healthcare contribution, the retirement age for average firefighter is pre-medicare, the healthcare contribution off set the out of pocket expenses for health insurance, and what that leaves with after you take into account the deferrals is 23 percent of income needs come from the contribution plan. slide 7 was trying to try to put those same percentages into real numbers so thought it is a easier way to explain. at the top that same middle column is a average firefighter. this is going-we assume rounded out average salary of $225 thousand and the idea is get in a simplified way to the take-home pay, so after you take into the

gross pay minus deductions which is pension and healthcare contributions and estimated taxes, federal and state taxes that gets to the take home number of $10 thousand so that becomes the bogey for the retirement income need. to get to that same number you need to generate $13.750. there is still deductions for taxes of course, and so that becomes ultimately your net number that you are going to need and we estimate the pension would cover $8200 of that, the healthcare retirement insurance, $500 so the difference is that 23 percent we showed on the prior slide, about $5 thousand to generate for differed compensation plan. this is a example. it is not the-this is not what drives-it is basically thousands of these

to form distribution to create the glidepath so explain how it works to generate that individualized ratio that we targeted in the glidepath instructions. >> ask a question about it demographic at the top where you have the table. the first set where did that data come from? >> that is the current data on the san francisco differed compensation plan. this is ultimately when we had participant level data that included the age

compensations, (indiscernible) and we also included-we have two measures of compensation, one total compensation, the second is pension eligible compensation so they account for overtime income. >> that's information about the participants about the members? >> participants. >> participants. >> the actual participants? >> participants. >> you think the age date number is correct? >> that is average age. the simulation is for retirees so that is just a data point that describes the distribution so we had a entire population about 18,000 records and so that was the average for this sub-population, but lt ultimately the illustration at the bottom is 59 year

old the expected retirement date. it was a snapshot, just a single snapshot looking at one of the pieces and how that map works for that one piece. in the design itself we use the entire distribution of the participants data. >> fwut but leads to 23 percent replacement? >> that is correct. >> i'm trying to explain the reasons why i think it is wrong. you don't like that, do you? >> i'm happy to set up more time to go through this with you, and we can go-again, this is just one example.

we can certainly go through many. the disbution-this is a illustration of how the-walk you through the process more then provide just the actual numbers. those numbers, the 23 percent is for that one person. everyone will have a different number but average we expect the 23 percent to be relatively representative of the sub-population. >> i have a question. everybody knows i'm a firm believer in the committee system. especially on this retirement plan-board. was this discussed in the retirement committee? >> basically it was, but i was try toog follow up to understand the replacement issue. >> okay. >> please, please, please. i'm

open how we get over this impasse. we do a quorum problem in a few minutes, and -joe, i want you to feel you had your question answered, and you have done the committee deal and presented this. >> twice. >> we can't let these off-ramps end up at the board meeting. >> what i'm trying to figure out is, if i think this is wrong will it change the glidepath at all? that's what i'm not sure about. it isn't the question of materialalty. this is a important service. the managers executing all the different pieces of the target date funds,

(indiscernible) what i'm talking about can be fixed later but trying to avoid the mistake when we started the glidepath 8, 9, 10 years ago where they had to come back and make a change because the wrong question was answered. it pre-dates you. i didn't forget, why i'm not afraid to speak this time. i thought this was discussion item but people want to keep this moving along. i'm trying to come up with a motion with a amendment subject to- >> commissioner driscoll, if i may, if you felt it was a discussion item based on your agenda, you can request to put this off another day if you didn't feel you got adequate preparation. the agenda posted for the public was correct so from a public notice perspective, it can proceed as action item, but if you are not satisfied you had time to prepare thinking it was only discussion item, then you can make the motion.

>> many ways of stopping this. that's counter productive. i'm trying to avoid that. but haven't come up with a useful motion where i can get my concerns addressed why diane (indiscernible) continue working on this thing. >> andrew, do you know if the numbers changed would that impact the glidepath design, because this is just a snapshot, one example of one person. >> yes. it is one example. it is more of a representation of the process, and so i think if the concerns around the process-the process drives the design. there are certainly other illustrations of the data that i want to make sure the commissioner driscoll is comfortable with the process because ultimately that is at the heart of the design. >> i think that is what we had approved and what we discussed

and i think that is what commissioner driscoll is asking is input. if the input changed that doesn't impact the methodology. the methodology could be approved and then we can work through the inputs. >> the input gets to the question of the replacement ratio which is one of the first things we decided. the replacement ratio for the population is very broad. trying to focus down to one glidepath, okay. sorry i don't have the motion. >> i'll-go ahead. >> in the hopes of trying to get where we need to go, can you speak if we were to table this one month would that have significant impact in the ability to continue to proceed forward? >> it will. >> we are in a very tight timeline. we have brought this-go ahead.

>> this is a second time we brought the issue up, and for follow-up questions and two committee meetings to address these issues, so i it so important we address the issues in committee going back to commissioner heldfond's problem or issue about committee system. when it comes to the board we resolve these issues we don't scr have to go back and forth on. i know commissioner driscoll mentioned this, but the follow-up to your questions we thought you had addressed in the committee meeting. >> i'm going to solve this. >> okay. >> i will call the question and i am going to assume that there was enough information and if we are talking about the methodology and the like, that's good. if everybody agrees on the methodology, which it seems they do. the

factual input changes, everybody is adaptable but we'll move this and decide it today. >> i feel-i was participant in the committee- (indiscernible) with the presentation we had. i do respect commissioner driscoll analysis and the need to have question answered. i feel comfortable making the motion to bring with the caveat that they be-coordinate with commissioner driscoll to have a follow-up meeting to discuss the items he has concerns. amendment to the motion satisfy? >> if it is--subject to review of the inputs not changing the glidepath, yes. i'm not putting words in your mouth. if that's what you

meant. they can be done before next friday. >> would that be satisfactory to your team? >> we can work with staff. >> i like to make that motion then. >> second? >> (indiscernible) >> changed the motion- >> i understood--i was not deliberately delaying to bail me out on the phrasing. i move the item with the amendment that the team coordinate with commissioner driscoll in the short-term to address his concerns. >> i second. >> okay. >> just so to clarify what the vote is about, if there wasn't a subsequent meeting, then it would n't be approved? >> we are approving it. >> yeah, i think maybe we don't need to make that part of the motion if- >> approved it. >> it was approved

contingent on the meeting. >> motion to approve and noting a meeting needs to take place. >> motion to approve and i second. >> moved and seconded. public comment? >> any members of the public who like to comment on this item. seeing none, public comment is closed. >> great. motion-commissioner thomas and seconded by commissioner bridges. roll call vote. >> commissioner thomas-aye. commissioner heldfond, aye. commissioner driscoll, aye. commissioner bridges, aye. thank you, 4 ayes, motion passes. >> thank you. >> (indiscernible) >> thank you.

>> item 16- >> if i may suggest perhaps we take move to item 20 and then 21 in the interest of time. >> 20s and 21 . >> what about the governance committee? >> i think that is a substantial discussion that we should push to the next board meeting. we do need to get items 20 and 21 action approved. >> as a parathentical comment i'm looking forward to the governance committee report because we haven't had one in like- >> do we need to table these or just skip over them? >> let's make a motion to move them forward. >> we can make a motion to continue them for the next time. >> so moved. >> second. >> does this need public comment? no.

>> yes, we should have public comment on the motion. >> any members of the public who like to comment on this item? seeing none, public comment is closed. >> moved and seconded. roll call vote. >> commissioner thomas, aye. commissioner helds fond, aye. >> commissioner driscoll, aye. >> commissioner bridges, aye. 4 ayes, motion passes. >> now we are on 20. >> item 20, action item. review and approval of the 2022 sfers annual report. >> i have one question. you don't have to change the terms on the back of with our fancy pictures? >> remember this is as of june 2022. >> oh. >> so, they should be current as of then. >> right, okay. got it. thank

you. >> just if there are other questions, otherwise we can take as submitted. >> anybody didn't like their picture? [laughter] great report. i just went through this on a proposal actually to-where is the (indiscernible) this is old stock. >> we'll tell our communications division about that. >> there is another picture that has the sales force tower. >> you are right. i see that. >> i wouldn't have done that if i hadn't gone through this huge proposal for the city. >> i have a question. so, who bottom lined the report? who was the team lead for

this? >> so, this is a team effort. we take our financial's and we run it through there, so we got the communications division, we got janette looks at, janelle, the investment team looks at it, each piece is vetted by the team responsible for it. >> all the departments are doing this. there is always a few people that carry a large part of inload and ypted to give a shout out because these are a lot of work to produce. i just want to make sure-i was impressed with the draft we have and didn't catch the sales force omission, but they are a ton of work and ends up on somebody's plate. >> thank you very much for that. >> the other thing, this is all 2022, so there is no

footnoting or anything with regards to commissioner (indiscernible) >> that's correct. >> great. >> any further comments on this? this isn't a action item. this is action item. shall i--entertain a motion. to accept it. accept the annual report. >> i are move we adopt the (indiscernible) >> second? >> commissioner thomas. >> i'll second. [multiple speakers] >> moved and seconded. any public comment? >> any members of the public that would like to make a comment on this item? seeing none, public comment is now closed. >> roll call vote. >> commissioner thomas, aye, commissioner heldfond,

aye. chair driscoll, aye. chair bridges, aye. 4 ayes, motion passes. >> i have 10 more minutes. the governance committee the two things should be taken together, right? >> yeah. >> we are on the last item? >> item 21. >> item 21, action item rchlt approve request to adjust industrial disability retirement allowance from 50 percent to 65 percent until qsr for qo52, police sergeant. >> as submitted or- >> would you like as submitted- >> please. >> what would you like cecilia to discuss? we can take as submitted. >> as submitted. >> which is that? >> item 21. >> is this action item

we need to vote on? >> yes. >> there is a presentation as part of it? >> (indiscernible) [multiple speakers] >> i can give a brief overview. this is a pension adjustment for a police sergeant. received disability industrial disability retirement on january 18, 2023. we have not included the name for the sake of privacy, but it is in your materials and the police sergeant at issue isn't qualified for service retirement, and under the circumstances the charter provides retirement board may adjust the retirement allowance of a member of the police department who becomes incapacitated and not qualified for service retirement. in those cases the percent of disability is determined by the appeals board. this

individual has a idr benefit amount of 50 percent. he received 65 percent disability rating from the worker comp appeals board and therefore request the retirement board adjust his disability percentage to 65 percent under the charter. this disability rating will remain in effect until he's qualified for service retirement. and we need a roll call vote for this item. >> okay. pro/con? >> sorry? >> given the charter language it is automatic. >> okay, great. i'll take a motion. >> move to adopt staff recommendation. >> moved and seconded. public comment please? >> any member who like to comment on this item? seeing none, public comment is now closed. >> great. roll call

vote. >> commissioner thomas, aye. commissioner heldfond, aye. commissioner driscoll, aye. commissioner bridges, aye. thank you, we have 4 ayes. motion passes. >> next item, please. >> item 22, discussion item. retirement board member good of the order. >> i guess the good of the order--i really hope that-this isn't to be taken personally by any commission or anybody, just i hope that we get to a place where the governance-that is why i'm so happy we have governance stuff we will be talking about, because all these issues-so many issues can be settled in the committee structure, and the staff is wonderful and the information they present, it is just the process of getting

there, so i think--i think this was a good example of maybe a drop-down in the old ways we are not addressing in the committee structure. i apologize for that, and let's go forward. that's my only comment. allison and everybody, your team was great and long meeting. thanks. >> (indiscernible) for the good of the order, i just like to commend our ceo/cio and the investment team who participated in the pension bridge conference this week. sfers had the largest contingent there and delegation and many of them were on panels and discussions and again, cao (indiscernible) the staff did a great job representing sfers as a agency so i want to commend you and thank you for your team being

in attendance. >> thank you. >> we adjourned. >> do we have public comment on this item? >> okay. public in here- >> any members of the public who like to comment on this item? seeing none, public comment is now closed. >> thank you. >> item 23, adjournment. [meeting adjourned]

[music] so, can you tell us what it was like for you during your first encounter with the san francisco fire department? >> yep. it was super cool! i got to learn about the dry standing pipe correction. it is actually called, dry sand piper just stand pipe. tomato. you know. yea. >> so, what is coming up next for what is that for? >> oh , firefighter backsterinvited mow to a fire station to see the cool stuff firefighters use to put out fires. you have seen the had doors open like a space ship from out of nowhere.

i close my eye its is like i'm there right now! wow! whoa. watch out, man. what is that for? >> what is this? these are fire engines they might look alike they are both red. white top and red lights on top. this is a new 2021 fire engine and this is an older 2014 fire engine. if you can't tell, this one is shorter and narrower than our older fire engines. they have cool things like recessed lights. roll up doors. 360 degree cam ares and more that is important as the city is moving toward slower and safer

streets adding parklets and bulb outs and bike lanes we need to decrease our footprint to keep us and the community safer on emergency scenes. >> what's back there? >> when is not guilty fire engine. great question. i want to see, sure. >> let's go back and look at the equipment and the fire pump on the fire engine. >> this is a fire pump. it is cool all the colors and all that. this fire pump and this engine holds 500 gallons of water that is a lot. >> a lot of water. >> it is push out 1500 gallons a minute of water. we can lose our 500 gammons quickly. why we use hoses like this to connect to a fire hydrant and that gives us unlimited amount of water to help put a fire out temperature is important we have enough fire engine in san francisco to put fires out.

so we can reduce the injuries and minimize loss of life and minimize property damage. [music] >> mr. will. mr. will. will! >> oh. daydreaming. thanks, everybody for watching! bye! [music] >> i don't think you need to be an expert to look around and see the increasing frequency of fires throughout california. they are continuing at an ever-increasing rate every summer, and as we all know, the

drought continues and huge shortages of water right now. i don't think you have to be an expert to see the impact. when people create greenhouse gases, we are doing so by different activities like burning fossil fuels and letting off carbon dioxide into the atmosphere and we also do this with food waste. when we waste solid food and leave it in the landfill, it puts methane gas into the atmosphere and that accelerates the rate at which we are warming our planet and makes all the effects of climate change worse. the good news is there are a lot of things that you can be doing, particularly composting and the added benefit is when the compost is actually applied to the soil, it has the ability to reverse climate change by pulling carbon out of the atmosphere and into the soil and the t radios. and there is huge amount of science that is breaking right now around that.

>> in the early 90s, san francisco hired some engineers to analyze the material san francisco was sending to landfill. they did a waste characterization study, and that showed that most of the material san francisco was sending to landfill could be composted. it was things like food scraps, coffee grounds and egg shells and sticks and leaves from gardening. together re-ecology in san francisco started this curbside composting program and we were the first city in the country to collect food scraps separately from other trash and turn them into compost. it turns out it was one of the best things we ever did. it kept 2.5 million tons of material out of the landfill, produced a beautiful nutrient rich compost that has gone on to hundreds of farms, orchards and vineyards. so in that way you can manage your food scraps and produce far

less methane. that is part of the solution. that gives people hope that we're doing something to slow down climate change. >> i have been into organic farming my whole life. when we started planting trees, it was natural to have compost from re-ecology. compost is how i work and the soil biology or the microbes feed the plant and our job as regenerative farmers is to feed the microbes with compost and they will feed the plant. it is very much like in business where you say take care of your employees and your employees will take carolinas of your customers. the same thing. take care of the soil microbes and soil life and that will feed and take care of the plants. >> they love compost because it is a nutrient rich soil amendment. it is food for the soil. that is photosynthesis. pulling carbon from the atmosphere. pushing it back into the soil

where it belongs. and the roots exude carbon into the soil. you are helping turn a farm into a carbon sink. it is an international model. delegations from 135 countries have come to study this program. and it actually helped inspire a new law in california, senate bill 1383. which requires cities in california to reduce the amount of compostable materials they send to landfills by 75% by 2025. and san francisco helped inspire this and this is a nation-leading policy. >> because we have such an immature relationship with nature and the natural cycles and the carbon cycles, government does have to step in and protect the commons, which is soil, ocean, foryes, sir, and so forth. -- forest, and so fors. we know that our largest corporations are a significant percentage of carbon emission, and that the corporate community

has significant role to play in reducing carbon emissions. unfortunately, we have no idea and no requirement that they disclose anything about the carbon footprint, the core operation and sp360 stands for the basic notion that large corporations should be transparent about the carbon footprint. it makes all the sense in the world and very common sense but is controversial. any time you are proposing a policy that is going to make real change and that will change behavior because we know that when corporations have to disclose and be transparent and have that kind of accountability, there is going to be opposition. >> we have to provide technical assistance to comply with the state legislation sb1383 which requires them to have a food donation program. we keep the edible food local. and we are not composting it because we don't want to compost edible food.

we want that food to get eaten within san francisco and feed folks in need. it is very unique in san francisco we have such a broad and expansive education program for the city. but also that we have partners in government and nonprofit that are dedicated to this work. at san francisco unified school district, we have a sustainability office and educators throughout the science department that are building it into the curriculum. making it easy for teachers to teach about this. we work together to build a pipeline for students so that when they are really young in pre-k, they are just learning about the awe and wonder and beauty of nature and they are connecting to animals and things they would naturally find love and affinity towards. as they get older, concepts that keep them engaged like society and people and economics.

>> california is experiencing many years of drought. dry periods. that is really hard on farms and is really challenging. compost helps farms get through these difficult times. how is that? compost is a natural sponge that attracts and retains water. and so when we put compost around the roots of plants, it holds any moisture there from rainfall or irrigation. it helps farms make that corner and that helps them grow for food. you can grow 30% more food in times of drought in you farm naturally with compost. farms and cities in california are very hip now to this fact that creating compost, providing compost to farms helps communities survive and get through those dry periods. >> here is the thing. soil health, climate health, human health, one conversation. if we grow our food differently, we can capture all that excess

carbon in the atmosphere and store it in unlimited quantities in the soil, that will create nutrient dense foods that will take care of most of our civilized diseases. so it's one conversation. people have to understand that they are nature. they can't separate. we started prowling the high plains in the 1870s and by the 1930s, 60 year, we turned it into a dust bowl. that is what ignorance looks like when you don't pay attention to nature. nature bats last. so people have to wake up. wake up. compost. >> it is really easy to get frustrated because we have this belief that you have to be completely sustainable 24/7 in all aspects of your life. it is not about being perfect. it is about making a change here, a change there in your life. maybe saying, you know what? i don't have to drive to that particular place today. today i am going to take the bus or i'm going to walk.

it is about having us is stainable in mind. that is -- it is about having sustainability in mind. that is how we move the dial. you don't have to be perfect all the time. >> san francisco has been and will continue to be one of the greener cities because there are communities who care about protecting a special ecosystem and habitat. thinking about the history of the ohlone and the native and indigenous people who are stewards of this land from that history to now with the ambitious climate action plan we just passed and the goals we have, i think we have a dedicated group of people who see the importance of this place. and who put effort into building an infrastructure that actually makes it possible. >> we have a long history starting with the gold rush and the anti-war activism and that is also part of the environmental movement in the 60s and 70s. and of course, earth day in 1970 which is huge.

and i feel very privileged to work for the city because we are on such a forefront of environmental issues, and we get calls from all over the world really to get information. how do cities create waste programs like they do in san francisco. we are looking into the few which you are and we want innovation. we want solutions. fire department ems at station 49. i was born raise in the oak land

my dad is mexican my mom is black i was playing soft ball this hayward and directly behind our soft ball field is an empty field. and almost every day at practice i saw this tiny woman leading the big people in work outs and eventual low i look in the and found out she was teaching how to do physical trin to get people red to work in the fire department. that peeked my interest. the oak lan fire department was the first fire department i did. i did a firefighter one training program there. that got me into fire whim start the paramedic school i went to city college and fell in love with the city. i did nile internship at station 49. it was wonder. . i learned the san francisco wave doing things. like the wild, wild west, every

day. i loved it was a family environment here. that made mow say san fan fire department, that's i didn't want to be. i avoided science my entire education up to becoming a paramedic. i failed my first time taking my emt registry. i hope well is nobody out there that gets discouraged if this happens. you have opportunity to take again. i d. i came back. took it, passed and continued to paramedic and pass the my registry the first time. being a woman in the fire department i am a minority here. a minority in multiple aspects. i'm a woman. biracial i'm the only black woman paramedic in the ems position. it is insane and i hope i encourage other women to join

this profession that does not represent the city of san francisco. i love to show up on a scene and i can see the comfort in member who men looks like me or my family members they see me and they are comforts. i hope there are women that see me and see themselves in me and know they can do this job limp i have a 20 month old daughter at home. i would like to teach my daughter it is okay to say no as a woman and have and voice that opinion. and i did a good job of that already. >> i really hope that anybody considering this field schedule a ride along. go to your local deputy or knock on an ambulance window can ask to schedule a ride along. that is irrelevant how diit my

first couple ride alongs i saw things that blew my mind and said, that's what i want to do with my life. [music]

>> welcome to to the 42 annual san francisco government awards. i'm-the san francisco director for sure spur i and i want to thank you all for being here tonight to honor excellence in public service. at spur, we strive to a bay area where all people thrive. we know accomplishing this takes partnership,

(indiscernible) particularly are local government and we are really proud to support the good government awards, because we truly believe that government can make a positive difference in the lives of san francisco residents so really excited to take a moment to acknowledge and thank all of the folks who make the city run so well. i also like to- [applause] i also like to acknowledge and thank our elected officials who are joining us this evening. san francisco city attorney david chui. [applause] assessor recorder joaquin florez. treasurer tax collector jose is -former city attorney dennis

(indiscernible) and current general manager for sfpuc. [applause] and of course san francisco very own mayor london breed, please join me in welcoming mayor london breed to the stage. [applause] >> alright! good evening everyone! it is so great to be here and after work hours never the less. drinking in city hall, hanging out with our friends and family, and just taking a moment to pause and reflect on all the extraordinary work that so many of you have done and will continue to do for the city and county of san francisco. in fact, i know we have some extraordinary people that we will be honoring here tonight, but i really want to take this

moment to acknowledge many of you who were nominated for these awards, because we know your work is equally as important. you know, san francisco continues to go through challenging times, and when i think about what we are trying to do to make san francisco better, safer, cleaner, more efficient for the residents and the people who live here, who visit here, who work here, the people that make that happen consist of public servants who work as city employees, who continue to roll up their sleeves and do everything they can, you can to make san francisco that beautiful viberant welcoming place that we see on the postcards that people experience every single day. don't let the narrative about san francisco that is floating out there distract you from what san francisco truly is.

[applause] i was out this past weekday and i went to the cherry blossom festival. first, i spoke on stage, but then i went in disguise. i walked around and i could barely get through japan town center. i could barely move because there were so many people. they ran out of burgers. it is one of the most sought after burgers at a cherry blossom festival. i stumbled on this great easter egg extravaganza and drag queens were running the show and in the front row were families and kids and folks enjoying san francisco. i went over to the marina, i road into the bayview hunters point and i wondering where are all these people coming from, just enjoying the embarcadero, enjoying and smiling and

appreciating san francisco. and every stop i went to, there was either a department of public works worker who was cleaning up the trash, there was a muni bus driver driving one of the buses the 24, 22, who knows, past the particular events. there were firefighters and police officers on the streets and yes, there were people giving tickets to folks at the meters. you know, keep the city going. but there was so much activity and so much excitement and all of that happens because of the people who serve and protect the city and county of san francisco and that startz with our city workforce. so, today as spur has done for 42 years in honoring our workforce in extraordinary, we want to thank stir and thank you. that is a why there is a lot of

food and drink but don't eat over or drink over $25 per person. we don't want any problems with the city attorney office. david is looking like it is me now, not dennis, even though they are over there sitting together. the fact is, we are here to celebrate you and just take a moment to pause and to reflect on the extraordinary work and in particular i want to call out and you'll hear the names and the people a little later, but the municipal fiber team from department technology. i see linda joining us here today. [applause] you know, what happened and still happening in oakland is not happening in san francisco. let me just say that. thank you linda. [applause] the permit center team from public works, department of technology and the office of the city administrator. [applause]

now, for those of you who had to stand in line and wait all day to get permits to do very simple home improvements, trust me, you appreciate this new efficient program. the housing acquisition team from the mayor's office and department of homelessness and supportive housing with all these great projects we are taking over to make sure we are able to house people who were formally living on the streets. they now have a safe affordable place to call home thanks to this team. [applause] the public integrity reform team from the city attorney and controller's officeism for those who pay recology, you probably got a refund so thank you very much. [applause] and last but certainly not least, assistant

deputy chief simon pang always out there on the front line with the street crisis response team and all the great work serving as a true ambassador to san francisco but doing everything he can-he is somewhere. is he here? where is simon? way in the back. from the san francisco fire department- [applause] you would think that chief nicholson was getting the award, she is all in the front row, simon. but, at the end of the day, we know this work is hard and we know sometimes you don't hear thank you enough, but i'm here to say thank you, we appreciate you and this is just a chance to really demonstrate that appreciation to a few of your colleagues who have definitely gone above and beyond, but well come to the families and friends and the community and thank you for being here to support these extraordinary public servants. glad to be here also, as i said with spur who lead the

effort the last 42 years, so without further ado welcome executive director of spur, alicia john baptiste. [applause] >> thank you so much mayor breed. as always incredibly inspirational remarks. isn't she amazing? the mayor of the city! thank you. [applause] good evening everyone. alicia is john baptiste with spur happy to be celebrating with you. the extraordinary public service you have been providing. as mentioned, at spur we do believe in local government as a force for good and this year's award winners truly demonstrate why that belief is so well founded. among you, you have tackled everything from bridging the digital divide, to restoring public confidence in how government works, to

finding innovative ways to shelt er and care for our most vulnerable neighbors and in doing this, you have shown why local government, especially is so important. because the truth is, the circumstances that shape our lives as individual people are a result of so many different things. they are the result of federal policy decisions and state policy decisions and local policy decisions, of macro economic forces and micro economic forces, divisions and choices made every day by nations, by businesses and by individual people, so there is is this huge array of forces working on our lives, but it is at the local level where we actually live. it is in our homes, at our dinner tables, walking on our city streets that we reflect to ourselves about what is working in our

lives and what is not. what we are grateful for, and where we struggle. so when we face challenges, whether they are the result of something that the federal government decided a generation ago, like under investing in our social safetynet or a global phenomena like a pandemic, it is our local government that we turn to. it is you all who we turn to, so we ask you to solve these macro issues, economic insecurity, housing insecurity, climate change, health access, digital equity, the list goes on and on, and we turn to you because government is the only american institution who's job it is to truly serve the public good. to serve the good of all the people. so, even though these are not issued

created locally, san francisco didn't invent homelessness or digital divide, it is imperative we be able to solve these issues locally, because people need to trust that there is a institution dedicated to their wellbeing. because people need hope. because people need to know that tomorrow can be brighter and particularly today when we are still experiencing the uncertainty and insecurity that comes with the huge changes we experienced over these past few years, people need to be able to count on their government to provide security, stability, answers. to chart a path forward. and we are living so differently today then we were just three years ago. and that means we are having to adjust the way we organize, pretty much everything. our

transit systems our tax structures, work hours, even our literal physical space. all of it is in flux as we reorient and reorganize. and that has a cost, but also, we wouldn't be living differently if it didn't also have benefit. so, while we are in this process that feels very distabling and unsettling, this process also has enormous potential for what can be. for what we can create together. and that is why your work is so critical, and it is why we are celebrating you today, because you have proven that locally we can tackle the big macro challenges. we can find the way forward. you have shown that we can bridge the gaps. mend the nets, serve our most vulnerable . you

have shown we can count on our government to deliver for all of us and we can be hopeful for the future we create together. so, i'm so grateful for all of the extraordinary work you have done. i'm really thrilled to be honoring you all and all from spur and me personally, i want to just say thank you. [applause] and now we'll start the party. so, we'll kick things off tonight with our first good government award honorees. true housing heroes. the housing acquisition initiative team. [applause] >> there were several

goals to take advantage of local and state funds available in a relatively soft real estate market to acquire properties at scale and quickly to address really what continues to be a critical need in our city to insure that we attend to diverse needs and diverse neighborhood said. >> the housing acquisitions are made possible with two primary sources, one is our city our homes fund the gross receipts tax to increase service for people experiencing homelessness. this was a large historic inflex of local funding for homelessness. in addition the department was able to secure $136 million in home key funding. home key is a state wide initiative of $1.4 billion to expand

housing for people. >> we went through a public procurement process so we advertise on our website that the city and the department were looking for buildings to buy. we receive over a hundred buildings that people told us i will be willing to sell my building to you guys. we literally went to every single building that we decided had potential and then we have different things doing analysis. will this building be a good candidate for say families or for young people or adult. >> we acquired 8 buildings that include 6 buildings we acquired as the city playing the role of purchasing and owner residential property as well as twob buildings we partnered with one of our non profit housing providers.

the first building that the city acquired we closed on that purchase in december of 2021. that is 16th street in the mission district. it is 25 unit building that had been vacant and is now housing 25 young adults and one of the largest buildings we acquired is city gardens south of market. 200 unit building, brand new construction, beautiful building that will house 200 families that are formally homeless. >> to get the buildings ready we issued competitive procurement. those procurements actually had two components. one was for property management and then there was support services component and the support services is providing case management, wellness checks and supporting the overall tenants housing stability. in the application process, we also encouraged collaborative applicants and that really helped us get two agencies that

provided their skilled expertise in that particular service component to best serve the building particular population. >> there were so many different partners that made this happen. from legislative perspective, we could not have done this without the city attorney. the planning department. made sure we had all the requirements needed to move forward with acquisitions. san francisco police department was huge in terms of community engagement. the non profit providers that run serveesses across our system of care were with us every step of the way. they were there in the legislative process supporting this, they were there in the community talking to people about the work and who they serve and certainly there hand in hand with us every step of the way.

>> good evening everyone. i'm executive director of homelessness and supportive housing and this is very very very exciting. i see the hard work that our staff put in every single day, and i know that it is not obvious sometimes to the general public recollect but they are just an amazing amazing group of people. and so, this just makes me so happy. i can't even tell you. tonight it is my honor to be here to celebrate the work of the supportive housing acquisition initiative team. well many members of the hsh staff involved in the bold initiative and you heard we had other partners, this team lead the charge with this new approach

to acquiring and opening supportive housing . the team charged with adding 1,000 new units through aggressive acquisition strategy that built on the momentum coming out of covid and leverages one time funding opportunities from prop c and home key program. to date the group acquired 987 new units of housing across 8 buildsings to provide housing to adult families and youth out of homelessness and we have more to come. through this innovative collaborative effort, san francisco leveraged $136 million in competitive home key grant funds to bring critical state resources into our community to address one of the most if not the most pressing challenge. iment to thank the team for making the vision realty so thank to dan adams, dan is senior advisor for housing initiatives in the

mayor's office. dan was hired for expertise in affordable housing development and finance as project manager to lead the identification and acquisition of former hotels converted to permanent supportive housing for people experiencing homelessness. dan does not directly supervise but is responsible for leading and project managing work that involves city staff from multiple departments, non profit housing providers and are private consultants. salvador menjivar is director of housing at hsh and oversees 67 staff and responsible for managing a $417 million portfolio of programs that provide housing to formally homeless adults families and youth. this includes over 10 thousand units of site based permanent supportive housing. over a thousand scattered housing subsidies and supportive services to

help tenants stabilize and retain housing. dylan schneider is the manager of policy and legislative affairs at hsh. sure many of you know her. she directly supervises two staff and is responsible for managing relationships with the board of supervisors, responding to request for information from the board and budget analyst, respondsing to whistle blower complaints, shepherding legislation and staffing public hearings when items are being heard, which is all most every day. elizabeth hewson the manager of supportive housing programs hsh. she is responsible for managing a portfolio of several thousand units of site based permanent supportive housing for formally homeless households. she oversees a team of 13 other employees, day to day work includes managing dozens of grant agreements with psh providers, establish policy and

procedures for department portfolio, reporting to state and federal funders as well as local oversight entities coordinating service delivery and non profit and trouble shooting individual client issues. lisa augstin is the finance director and she oversees a team of 17 staff and responsible for managing the fiscal accounting and budgeting functions with a annual budget of $672 million. monique colon. managing for contract invoice and monitoring. this is the housing acquisition team. they are amazing folks. i'm so so pleased to be here and so honored to work with all of you. congratulations on a very well deserved

award. [applause] >> thank you and good evening. my name is (indiscernible) director of housing department of homelessness and supportive housing. on behalf of dan, elizabeth, dylan, monique and lisa, i want to express gratitude for this wonderful recognition. i want to thank (indiscernible) the executive director. we also want to express our gratitude to mayor london breed. for her leadership in the effort to acquire our 1,000 units of housing, for the people that are most in need in our community. lastly, we also like to thank you to

our non profit partners and other elected officials that supported us in this effort. it take a village to do this project. homelessness is one of the most painful national manifestations of economic social political system. (indiscernible) working to create different solutions to homelessness. if you take a look at the local newspapers, you will think that very little is done to address homelessness in san francisco, but i got to tell you something, that could not be farther from the truth. tonight our team, the department reaffirm our commitment to continue to work to find a solution to homelessness in our city. i want to ends by inviting you to

celebrate (indiscernible) not the wonderful team back at the department or the mayor's office doing all this incredible work to acquire all these units. i want us to celebrate the over 715 individuals that are going to be placed in housing because of this initiative. 750 people. [applause] and 250 families with children. [applause] those are the true heroes. over 1550 people including children, human beings like you and i with dreams who can now have a place to call home because of all the work we have done and all your support. thank you very much. [applause]

>> our next good government award honorees, did the nearly impossible, they consolidated the city's permitting processes, which is really extraordinary. to state of the art one stop shop, the permit center team. [applause] >> (indiscernible)

much more welcoming experience for visitors and frankly much healthier work environment for staff. some of the key tenants of the project includes sustainability, efficiency, flexibility certainly. >> department of technology it team played a key role thin network design and implementation (indiscernible) the service team application fee and (indiscernible) all made this collaborative effort at department center which is more focused and a lot of backbone behind it that was designed and implemented by the it staff at the department. proud to see how technology can (indiscernible) implemented at this permit center we are able to provide better experience for the residents, businesses, visitors as well as the

employees of the city of san francisco. >> data plays a important role in the permit center. prior to the move to 49 south van ness, working off of paper sheets an ecdotal evidence, with permit center, especially with the queuing system we are able to have real data and real numbers to back up and make business decisions based on actual data. we are able to track the customers entire journey throughout the permit center and identify peak hours, bottlenecks and make business decisions. >> physically we center customer service by placing the customer service representatives at the front door of the building as customers enter and provide a warm greeting. the team has to be knowledgeable and a lot of difference type of services provided at the permit center and once they understand what the reason for the customer visit, then they can provide

the journey to get their permitting. >> permitting prior to the permit center was spread out across a dozen permitting departments in 10 different buildings across the city. the calilous catalyst is colocate the functions in one building with the hope of accomplishing two things. to create a better more centralized cohesive customer experience, and secondly, to foster collaboration across departments that have been used to operating as their own silos. now everything you need for permitting is available under one roof, not only all the departments and staff, but services like our print center, which allows you to print plan sets or get notary services as well as automated cash and kiosk that allow to pay for services. it was a enormous chess game to figure how to move a dozen department broken into bureaus and

subdepartments across 10 buildings and did it across 10 separate weekdays thin summer of 2020. >> because there is so many moving pieces involved in making a project of this magnitude come together, and working for the real estate division we have real deadlines to meet and that speaks to leases and dates that we cannot move in terms of expiration or things rolling into hold-over so we have real financial deadlines and dates to adhere to. what that means is, we cannot shift the date in terms of when we would be moving into this building. people needed to vacate when they had to, and there was no flexibility around that. i'm most proud working with you know, a insanely incredible talented team of individuals.

>> good evening everyone. deputy city administrator and the person overseeing the permit center today. i'm really excited to be here about recognizing the delivery of this really big complex project. when plans were being made for new office building at 49 south van ness, city leaders seized the opportunity to consolidate permitting that was done in 14 different locations at the time, so wouldn't have to chris cross the greater civic center area to get the permits they needed to construct or renovate a building or open a business. actually, realizing that vision that the leaders had come up with and delivering

the physical space and the service model and all the data parts and the technology that makes it work, took the work of the team being recognized tonight. excuse me, i'm losing my voice from a cold. gus customer service manager has been key in setting up the entire customer flow and queuing system and all of those parts. samual chui the senior project manager public works worked with the people and stakeholders to envision how you bring all these people together in a place where they had been in such separate locations and really separate silos, how do you create that space that works? umesh gupta, department

of technology, had to figure how do we build a network that will integrate the department needs, all their different systems and make sure new telephones, all of those things worked on day one when we moved into the is enter. andrea labatan, the building manager was the one who helped coordinate and make sure everybody was able to move in as well as all the people in the 16 stories above that are in the departments that are supporting permit center activities, public works, building inspection and the planning department. mori wallner is the business analyst and he's been-he as we moved into the permit center in trying to take all this data and transform the way that we are doing business.

mori knows more then anybody knows there is a lot more work to be done to be improving permitting and this award really recognizes this huge accomplishment in getting us into a single place where that collaboration, where that customer focus can happen. so, all these people insured networks and technology would serve staff and customers, and assembled a group of expert customer service staff who can work with all most every personalty type imagine. all most 200 different personalty types every day. they finished the work and moved people in the center. you heard in summer 2020 when many staff would have been available to help, dsw assignments elsewhere in the city or sheltering at home with families andt noavailable to come into work. before calling the team up, i also want to recognize two people who were not eligible to

receive a good government award, but been really key in delivering this project and i think deserve recognition as well. they are melissa whitehouse and rebecca myer [applause] permit center directors past and present. and so with that, i love to welcome up the team. [applause] >> even though we are here today to recognize this good group of managers, this award really is for the hundreds of employees that work with us on the front line and behind the scenes at the permit center every single day. employees from over 12 permitting departments, passionate about customer service and

focused on improving and streamlining the permitting process for businesses, special events and construction in san francisco. a big thank you to these departments, to their staff, to our coworkers for their service and support. we also like to thank our former director melissa whitehouse. thank you for providing us the permit center blue prints, for laying down the groundwork and for assembling this wonderful team. and also for instilling in us with your spirit of good government. i assure we still carry the spirit with us every single day. also want to thank our current director rebecca myer. thank you for your strength, for your commitment, your courage and for your vision which keeps us motivated as we take on and coner new challenges at the center. it

is your leadership that will take this team to center and the permitting process to the next level. thank you to carmen chui our city administrator and douglas leg, our deputy city administrator for recognizing our potential, for believing in us and supporting us and supporting the vision and mission of the permit center. lastly, thank you to spur for this wonderful event and for honoring us with the 2023 good government award. congratulations to all the honorees and are thank you for your great work. we wish everyone a wonderful night. thank you. [applause] >> now please join me honoring

our next good government award team. these are the civic champions responsible for refunding san francisco rate payers $100 million. the public integrity refuse rate reform team. [applause] >> by september of 2020, we issued a public facing report that outlined how recology was providing hundreds of thousands of dollars to a special event fund that mohammed nuru-controlled. it was a off the books account outside the city finance system and it begged the question of

course, what if anything is recology getting in exchange. by december of 2020, recology council disclosed to us there had been a significant error in the 2017 rate application and that is where the controller's office came in because we needed them to figure out exactly how much rate payers had been over-charged. >> our team had to quickly get up to speed, identify why the error occurred, quantify the amount of the error, and understand well enough to be able to make recommendations that were going to be useful to policy makers . we were lucky our team and the controller office was paired up with a great city attorney. with this project, it was both humbling and i gratifying knowing that we were able to get on

average $190 returned to every rate payer in san francisco. that is what public service is about and that's what makes it so rewarding. >> this group didn't know each other when we first came together. i worked with yvonne and celsly in the city attorney office and deep in the process of investigation and negotiation but we needed help and went to the controller office and todd and said here is the support we need and it was like he opened a magic door and all these great people leaned in and joined our team and pushed us, challenged us, joined us in negotiations and fact finding. >> whenever government takes a deep dive into something that is a issue or a problem, and you are able to tackle it, what emerges is better government. good government, and here what is going to emerge

from these negotiations and this effort is our refuse rate system in san francisco is better. it is better longterm. it is better for us having conducted these negotiations from achieving these results from shedding light on these errors and coming up not only with a solution that helped address and readdress the problems of the past, i think in terms of the future it helps us chart a better path forward. >> the 2022 refuse rate reform measure which passed by san francisco voters with more 70 percent of the vote in june 2022 really increasing the transparency and accountability of the process. it puts the controller in charge of the refuse rate adjustment process. it asks them to make recommendations to the rate board, it also puts a rate payer advocate on the existing rate board, which gives a much stronger voice to the residents

of san francisco as refuse rate payers. the ballot measure also asks the rate board to be more involved with occasional independent audits of the rate setting process. >> just want to say you know, how proud we are of the entire team. it isn't just the managers but a lot of people behind the scenes and within our departments that facilitated the whole thing and the tenacity, work ethic, the challenges that we faced, tight timelines in order to make the june ballot, we did this 100 percent remotely. brave new world with new ways of doing things and 100 percent zoom meetings and learning how to overcome all those difficulties and just generally the long hours and the commitment from everybody. >> good evening. i want to welcome you all to the 42 annual academy awards

for san francisco city government! [applause] and on behalf of the academy, i just want to thank each and every one of you for everything you are doing for san francisco. my name is david chui, your city attorney and contrary to what mayor breed said, i'm not tracking how much wine each of you are drinking. that's what we have cameras for here at city hall. so, i am honored to join in help introduce my fellow nominators. i was thinking of starting with the joke about how the chinese department and latino department and jewish department had a couple drinks and walked on a stage but ben and dennis told me, can't do that. what i do want to say though, is these two amazing public servants behind me are city controller, and former city attorney, they helped to kick off the work of this team and the three of us are so honored to lead the best city attorney's office in the country, the best city

controller's office in the country, the best publicue till tay commission in the country. [applause] and as part of reflection of that is the team that we are recognizing tonight. you heard some of what the work is about but what i'll say on a serious note, this is work that stemmed from a wide ranging public integrity investigation that spanned nearly 3 years and uvvaed many staff from our office. they embarked on very complicated discovery and reviews, pouring over countless financial statement jz documents, conducting numerous interviews all over the city, over 40 negotiation and information sessions with recology and what was the outcome of this after two year negotiation, it resulted in a $100 million refund to san francisco taxpayers and if that want enough and i did hear that cham pain bottle, yfs going to refer as the $100 million team but they are actually

the $125 million team because after they finished their work in 2021 they took another bite at the apple and got another $25 million from recology so with that friends and colleagues, on behalf of our city attorney office, the controller office, the public utility commission, controller ben roseen field and our wonderful gm and former city attorney dennis herrera, let me bring up the public integrity reuse team. [calling out names] >> thank you very much. we want to say thank you to spur for hosting this event and for supporting good government and public servants. we want to thank our fearless leaders, ben, dennis and david for supporting our public integrity work, and it is really rare that the legal system

can actually make victims whole, but we got awfully close and that is because of the great partnership between our offices and leveraging both the legal expertise of the city attorney's office with the financial expertise of the auditors and accountants at the controller office who fought for every last penny with interest for the rate payers. and then we are able to leverage the lessens that we learned as part of calculating what the rate payers were owed to inform the new rate ordnance that govern how rates are set going forward. i know glens wants to thank the subject matter experts throughout the city. i don't think there is a single department in the city who doesn't interact with recology and trash, so thank you to everyone who contributed to that effort. it was a pleasure to get to work with such amazing

colleagues and dedicated public servants. we all got to become friends on zooms over the pandemic, and three years of public integrity, which i think we are all most over. can i say that? ben is like don't say that. [laughter] so thank you for honoring us tonight. [applause] >> next up is this evening we have the stewards of our city digital equity. these are folks who extended high speed internet to low income communities, the department of technology municipal fiber team. [applause]

>> the mission of my team is to provide foster labor free broad band. there are certain areas in the city which lack internet and we notice it is mainly focused on affordable housing and we are trying to solve that problem. i'm proud of leading a team of employees. highly motivated who built the largest municipal fiber in the country. as of now it is 48 thousand miles of fiber, enough to go around the world two times. >> there are over 500 affordable housing sites in the city and out of those, we connected close to a hundred. these range from single building, multilevel

building to (indiscernible) and they can range from 20 units to 200 units. we reached a total of 9300 households and 1080 homeless vets but we try to exceed what we have done the year before so the number will continue to grow. >> we involve many other departments, puc for their pole and (indiscernible) conduits. even the central subway project, we use central subway as a path to go all the way to china town, which was pretty hard to get to. it involved a lot of different departments, many many people. >> i have been doing this for 18 years and nothing has been at this scale. a lot of things we do is on the ground and infrastructure. getting to the building is always different. downtown you are dealing with all most hundred percent on the ground infrastructure.

you are dealing with old conduit that have been there over a hundred years old. they were paper literally, clay, they collapse. a lot in the day were made out of redwood trees and they just bored through them and that is the conduit. >> we provide customer service for the fiber to housing project in collaboration with the mayor office of housing and community development. they provide essentially a first tier of support, but mohcd role in the project was beyond that. they helped on-board buildings that identify high priority buildings, they assist customers with getting on to the network. they talk through with residential service folks at the sites. what are the requirements they can help customers get on the network. the feedback from the residents of the affordable housing buildings we serve has

been great. >> we are fortunate to serve a large vast amount of communities. our program has seen a wave of acceptance. we get daily phone calls, daily e-mails of people reaching out wanting to know how can their buildings apply for these services. i think this program is extremely valuable to everyone involved. we see wifi similar to homes, shelter, food, to be able to keep up with the world they need access to wifi and access to just relevant and (indiscernible) >> good evening. well, you heard from the

country's best housing group, permit center, controller's office, puc and city attorney and now i like to share with you the work of the best department of technology and fiber team in the country. [applause] my name is linda and i serve as the city chief information officer and executive director of department of technology. i like to thank spur and the nominating committee for recognizing the municipal fiber program. the good work would not be possible without the vision and support from mayor london breed, city administrator chui, the board of supervisors and capital planning. even before covid, san francisco believed that all residents should have the ability to access the internet and we were already underway building a fiber

network to serve our most vulnerable residents. covid showed us the essential and necessary nature of the internet for healthcare, schools, senior care, job opportunities, economic development, and city service delivery. residents and you use the internet every day, and the spur award acknowledges the importance of this mission, and we hope san francisco's programs inspire other jurisdictions to provide their unserved residents with internet access to close the digital divide. it is my honor to congratulate and thank joseph john who served the city for 29 years and heads up the municipal fiber team and the team itself- [applause] absolutely. for their commitment, hard work,

enthusiasm to build and serve residents with essential internet service, so thank you team. [applause] >> good evening. i'll make it short. linda has spoken about the team but i'll tell two things about them. one, they think in the long-term interest of the city every time they do their work. several years ago, our staff was installing fiber somewhere near (indiscernible) and it was a saturday. i took my third daughter over there and she came with me and she talk today the staff quite some time and when we were going home she told me one thing, your staff did a very good job, but they could not

explain to me why they are putting (indiscernible) she told me i should explain that to them. the fact is we also didn't know what purpose we are going to use this but we were very sure that the cost of installing 200 (indiscernible) because you have to do the digger, you have to put a (indiscernible) the team continued with the same philosophy for every project. because of that, this project social responsibility project of providing free internet has become practical and it is feasible. secondly, i want to say that this team has the capability to adapt, to challenging situations. you tell them anything they find a solution for that. i tell you next time last year when the fiscal year comes i say what

did we do last fiscal year? let us beat that record. some time in april i told randy and kevin you come up with a affordable housing so they came with a list of 47 locations. i called rene and josh and talked to them and josh tells me joseph, we do 15-20 a year, now you are telling me to do 3 years work in 3 months time. so, i told josh and rene, you are very smart. it is how smart you do the things, it's not the work and try to tell them, make use of existing resources in the city whether (indiscernible) underground, on the pole or microwave, work with caltrans, motivate your staff and find a solution. when he was working from my office to his office he stopped by my office and told me, what is wrong with

your boss he has gone crazy or he is joking. so she ran to my office to tell me that. i told her, i was not joking, i was serious, but as for the second statement, craziness i never disputed in the past and not dispute it now. josh and rene did how many- >> 42. >> kevin keeps track of that, so they did 42 [applause] and thank you spur. i want to say that the city is lucky to house such a team of employees. thank you. [applause] >> our last honoree this evening is also our only

individual honoree. the man who is proving compassion plays a pivotal role in good government, assistant deputy chief of community paramedicine, simon pang. [applause] >> community paramedicine is a very very great idea. easy to sell, but never the less, if it wasn't for our chief of department that was supportive, if it wasn't for the mayor that was supportive, nothing would have happen, so it is like a perfect confluence of events. we had a very good knowledge of the city resources, the referral processes, we put out proposal and collaborated with the health department and came up with the street crisis response team so that was 2020 and the first team got started on november 30, 2020,

one team working 5 days a week at the start. so often we on ambulances and first responders see someone 2 or 3 times a day because we take them to a emergency room and they are stabilized, the doctors recognize that there is nothing acrut and discharge back to the community and then they might have alcohol use disorder or substance use disorder and a citizen will see them on the sidewalk prone on the sidewalk and call 911, we come and pick up again and take them to the hospital and happens again and again and again and the street crisis response team was tasked responding to people in acute behavioral crisis. and that team is alternative to policing. june 2022, we had a cut-over, so approximately 14,000 calls annually that the

police were handling all transferred to street crisis response team. street wellness was designed also as alternative to police to respond to wellbeing checks, so a wellbeing check is very losely defined. somebody sitting in a doorway to somebody calling out of state saying they haven't heard from a family member and are could you please knock on the door. we had the street wellness and street crisis response team and recognize these teams were essentially responding to the same population. both teams will respond to people housed and unhoused, but primarily we are working on street level conditions, and people that are experiencing homelessness on the streets. paramedics are trained to respond to emergency, work as rapidly as possible and stabilize, and a community pair med paramedic the idea is slow down and try to understand someone's true

needs and advocate for them and find a way to connect them to the appropriate system of care. the best thing is to be ernest, respectful, authentic, to get down on someone's level. quite literally get down on their level and start a conversation. offer friendship. provide food, coffee, and let the person know that you are really there to help them. [applause] >> wow, the lights are bright. greetings and saluleitations, your fire chief nicholson. pleasure to be here to celebrate one of the best, simon pang. first of all, shout out to spur. thank you my sisters for running such a great organization and

we can always use a shot in the arm like this, no covid punt intended. a feel good shot, so thank you for that. just being here tonight makes me really proud of all the work that the city and county of san francisco is doing so thank you everyone for all the work that you do and congratulations to everyone tonight. so, first of all, i want to thank simon's parents for having him. they are here. thank you so much for having him. [applause] and i can say that the world is a better place because of your son, and san francisco is a better city because of your son, so thank you. [applause] i also want to thank dph and dem, sister mary ellen and hsh and everyone for their partnership. we did not do

this alone, and we continue to not do this alone. we saw a need as chief pang spoke about. both he and i work together as paramedic firefighters back in the day and i remember thinking, wow, he is really kind. he is really nice. he doesn't have a big ego and i would want him to take care of me, because he is so smart and good at what he does if anything ever happened to me. hopefully that won't happen simon, but just so you know. simon has been the architect, the main architect of community paramedicine, which is an alternative to policing and frankly alternative to just bringing people to the emergency room over and over again, which is when we saw that was not exactly what they needed. it has been really a iterative process developing the appropriate teams for the different needs that

we have, and simon has been about helping the most vulnerable is and the most challenged people on our streets. he has a good heart. he does things for the right reasons, and i just respect that so much and he's super smart, and people call from all over the country to ask for his advice, his council in terms how to get their own programs started. so, i just want to say, simon, thank you for everything you do. congratulations and congratulations to all your family as well. [applause] >> hi, my name is simon, and i thank you very much for this honor and i wanted to say, it

is very strange to see both my chiefs next to my parents, my smart and beautiful wife and my two wonderful sons. strange and wonderful that they are all together at the same time. [applause] and january 2016, april slone and i were tasked with restarting ems6. we started with a 20year old vehicle and one cell phone, and since then, we now annually respond to nearly 20 thousand incidents per year. community paramedicine is a story that's writing itself. we have been very successful because like all first responders, we respond rapidly, we work 24 hours a day weekdays and holidays, but additionally, we have had a willingness

to fill system gaps and we had a e thrks hos if not us, who? community paramedicine is a idea that did not originate with me, but we have pushed the-we have pushed the implementation of community paramedicine a little further down the playing field, and all our accomplishments would not have been possible without the help and support of many others. the community paramedics themselves doing the work every day. they are highly motivated to create positive social change. my high performance management team of april slone and mike mason. [applause] the many city agencies that we collaborate with, and finally, key stakeholders, my own leadership in the fire department, chief

nicholson, chief tong, members of the board of supervisors and finally, mayor london breed. thank you again and i will work very hard to earn your continual support. thanks. [applause] >> i want to thank you again for all the incredible work you have put into serving the people of the city of san francisco. you really do prove to us local government is a force for good and we are forever grateful. this concludes our formal program, but it brar bar is still open, so stick around and enjoy. thank you all so much. [applause]

in fire prevention. i'm very happy at fire prevention because not only am i able to enforce the code and make changes to help the citizen of san francisco be safe in their homes or place of business, but i think my work also make sure that my fellow firefighters and first responders, when they respond to a fire, the building is also safe for them. >> you're watching san francisco rising with chris manners. today's special guest is brooke jenkins. >> hi, i'm chris manners and you are watchs san francisco rising, the show about restarting rebuilding and reimagining our city. ourguest san francisco district attorney brooke jenkins here to talk about theopeioid crisis, criminal justice and more. >> thank you so much for having me. >> thank you for being here. let's start with organized restale threft. some jurisdictions across the country imposed most

of the punishment against people shop lifting in groups but that may be applied disproportionately to epipooal and doesn't address the organization behind it all. how can we make sure both prosecute the ring leaders behind the crimes and make sure justice is handed out eveningly? >> making sure we get to the higher level of organizations in the organized retail threrft area so that is something myophilus is very much focused on working the police department on. looking at organized retail threat ringzsx but we have to make sure people are being caught who have stealing and that is a big challenge in the sit a so we have worked with retailers and small business owners to insure the necessary protocols and procedures are in place to at the very laest catch people who are stealing because they have been running out of the stores and therefore facing no consequence so we have to start there and trying to do

more with intervention with the youth who are some of the population doing some of the threfts. many stores have turned to not detaining employees stealing oertrying to stop them and that change in procedure lead to making it very difficult for the police department to capture these people stealing. we have been working with them on a change in their protocol going back to the way it used to be done so we can actually have the opportunity to have people face consequences. >> right. so, let's move to the opioid crisis which had a devastating impact across the community and across the country, including san francisco. how can your office help address the issue? >> the main thing is going back to where people feel there is a consequence dealing drugs in the city. we can't treat drug steel dealing as a victimless crime. we have ooverage 2 people dying a day from overdose. there are

victims of this offense so quha what is did is say no longer the case we decriminalizing drug sales in san francisco as the da office. we have to put consequence on the table and insure the most agregiouss sellers so massive quantityties of fentanyl, some enough to kill all most half the city. sometimes with people with wep ens and guns are multiple of cases with fentanyl are treated differently then thoges with small contties so i ask those people detain in custody. we can't have them on the street hours later, but also trying to work with the police department and our city making sure our laws are enforced. it is the only people people suffering from addiction will have a opportunity at recovry. imagine if you are trying to get clean and every 10 steps doin the block you are offered the drug you have been addicted to. it is impossible.

that is one way we are dealing with the supply side and we are taking a different approach on the demand side, which is to say, if people are publicly using drugs over and over again, that we believe we need to intervene in those situations and so the police are citing them and when somebody reaches 3 of the citations, we then file a complaint, but route them into a treatment court to try to help them get help. >> they have a option take treatment or face charges? >> correct. essentially. we of course encourage treatment because that is what these folks need. >> absolutely, absolutely. san francisco is known for being forfront of criminal justice reform with initiatives such as community justice center and restoreative justice, how do you plan to build on the efforts and push for aggressive policies insuring we have a fair system that holds people accountable? >> i have been clear accountability comes in many different forms.

historically, da office used one form and that is incarceration. the way i functioned as a prosecutor over the years is make sure we are finding the appropriate form of accountability for each and every person for their specific circumstance, and so for some people it may be incarceration, others it is treatment and going through behavioral health to stabilize mental health issue. some it is say ing we toopt see you get a job so we require that you go through a trade program so you can get a skill that allows you to take care of yourself in a different way. for me it is investing in those opportunities which requires us to be partnering with community based organizations to identify what programs we can send people to, but i'm very much invested in seeing our collaborative courts, which is what community justice center, drug court, young adult court seeing those courts

thrive and encouraging the lawyers to explore those opportunities. >> right. what role do you think the da office can play addressing the issue of police misconduct and promoting accountability? >> our job is to prosecute police officers when they commit such misconduct and use excessive force in a way that is illegal so we'll continue to maintain that is our job and our position. we prosecute all crime in san francisco, it is not about what your statue is, what your position is or what office you hold. the law will always be our standard. we can't treat differently where they come from, whether they wear a uniform or not, our standard is the law. for me, as a black latino woman it is issue very personal to me. we had a death in police custody in my family that i heard about my entire life. i'm raising two black children including a

black son who you know, i will have to talk about these type of issues as he grows up. i was out raged long before george floyd. the list goes on and on, but as a prosecutor i have to maintain one standard and it is whether somebody according to the law has committed a crime and so that's what we always look at. >> absolutely. finally, what message do you have for the people of san francisco and what you hope to accomplish during your tenure? >> i want the people of san francisco to know i'm committed serving the function the da office was designed to serve which is make sure we promote public safety across san francisco. like i said, we have to have accountability in our city. what we see going on in our streets is the result of people feeling as though there was none. they didn't fear even the police walking by as they were committing a crime because there was a belief that even if you arrest me,

the da office isn't going to do anything that i'm afraid of experiencing, and so we want people to have a healthy fear of what a consequence will be, but i also want san francisco to know we are a da office that stands by the val aoos we have here in san francisco which is second chances, compassion, responsible alternative to incourseeration bought the end of the day accountability has to be what people said back on the street or community in a fashion where they can succeed. every time somebody cycles into the system we are thoughtful what the person needs to get back on their feet and not create another victim in the future. >> quite right. thank you. thank you so much for coming on the show. i really appreciate the time you have given us today. >> thank you. >> that's it for this episode. we'll back for another shortly.

for sfgovtv, i'm (musi >> i started the o was with a financing and had a business partner all ended up wanting to start the business and retire and i did was very important to me so i bought them oust and two weeks later the pandemic h-4 one of the moments i thought to myself we have to have the worse business in a lifetime or the best. >> we created the oasis out of a need basically so other people

bars and turning them into a space and when the last place we were performing wasn't used turned those buildings into condos so we decided to have a space. >> what the pandemic did for us is made us on of that we felt we had to do this immediately and created this. >> (unintelligible). >> where we would offer food delivery services with a curbside professionalism live music to bring spectacular to lives we are going through and as well as employ on the caterers and the performers and drivers very for that i think

also for everyone to do something. we had ordinary on the roof and life performances and with a restaurant to support the system where we are and even with that had terribly initiative and hundreds of thousands of dollars in debt had to pay our rent we decided to have an old-fashioned one we created club hours where you can watch to online and or be on the phone and raised over one quarter of a million dollar that of incredible and something that northbound thought we could do. >> we got ourselves back and made me realize how for that

people will show up if i was blown away but also had the courage but the commitment now i can't let anyone down i have to make the space serviceable so while this is a full process business it became much more about a space that was used by the community. and it became less about starting up a business and more about the heart of what we're doing. this building used to be a- and one of the first one we started working on had we came out what a mural to wrap the building and took a while but able to raise the money and pay 5 artists to make a design around many this to represent what is happening on the side and also important

this is who we are this is us putting it out there because satisfies other people we don't realize how much we affect the community around there when he i want to put that out there and show up and show ourselves outside of those walls more fabulous. and inspires other people to be more fabulous and everyone want to be more fabulous and less hatred and hostility and that is how we change the

>> there is a lot of unique characteristics about visitation valley. it is a unique part of the city. >> we are off in a corner of the city against the san francisco county line 101 on one side. vis station valley is still one of the last blue color neighborhoods in san francisco. a lot of working class families out here. it is unusual. not a lot of apartment buildings. a lot of single family homes. >> great business corridor. so much traffic coming through here and stopping off to grab

coffee or sandwich or pick up food before going home. >> a lot of customers are from the neighborhood. they are painters or mechanics. they are like blue color workers, a lot of them. >> the community is lovely. multi-racial and hopefully we can look out for each other. >> there is a variety of businesses on the block. you think of buffalo kitchen, chinese food, pork buns, sandwich. library, bank of america with a parking lot. the market where you can grab anything. amazing food choices, nail salons. basically everything you need is here. >> a lot of these businesses up and down leland are family owned. people running them are family. when you come here and you have an uncle and nephew and go across the street and have the guy and his dad.

lisa and her daughter in the dog parlor and pam. it is very cool. >> is small businesses make the neighborhood unique. >> new businesses coming. in mission blue, gourmet chocolate manufacturing. the corridor has changed and is continuing to change. we hope to see more businesses coming in the near future. >> this is what is needed. first, stay home. unless it is absoluteliness scary. social distancing is the most important step right now to limit spread of virus. cancel all nonessential gather everythings. >> when the pandemic litly land avenue suffered like other

corridors. a few nail salons couldn't operate. they shut down. restaurants that had to adapt to more of a take out model. they haven't totally brought back indoor seating. >> it is heartbreaking to see the businesses that have closed down and shut because of the pandemic. >> when the pandemic first hit it got really slow. we had to change our hours. we never had to close, which is a blessing. thank god. we stayed open the whole time. >> we were kind of nervous and anxious to see what was going to come next hoping we will not have to close down. >> during covid we would go outside and look on both sides of the street. it looked like old western town. nobody on the street. no cars. >> it was a hard eight or nine months. when they opened up half the

people couldn't afford a haircut. >> during that time we kept saying the coffee shop was the living room of the valley. people would come to make sure they were okay. >> we checked on each other and patronized each other. i would get a cup of coffee, shirt, they would get a haircut. >> this is a generous and kind community. people would be like i am getting the toffee for the guy behind me and some days it went on and on. it was amazing to watch. we saw a perfect picture of community. we are all in this together. >> since we began to reopen one year later, we will emerge stronger. we will emerge better as a city because we are still here and we stand in solidarity with one another. >> when we opened up august 1st.

i will not say it was all good. we are still struggling due to covid. it affected a lot of people. >> we are still in the pandemic right now. things are opening up a little bit. it is great to have space to come together. i did a three painting series of visitation valley and the businesses on leland. it felt good to drop off the paintings and hung them. >> my business is picking up. the city is opening up. we have mask requirements. i check temperatures. i ask for vaccination card and/or recent test. the older folks they want to feel safe here. >> i feel like there is a sense of unity happening. >> what got us through the pandemic was our customers. their dogs needed groomed, we have to cut their nails so they

don't over grow. >> this is only going to push us forward. i sense a spirit of community and just belief in one another. >> we are trying to see if we can help all small businesses around here. there is a cannabis club lounge next to the dog parlor to bring foot traffic. my business is not going to work if the business across the street is not getting help. >> in hit us hard. i see a bright future to get the storefronts full. >> once people come here i think they really like it. >> if you are from san francisco visit visitation valley to see how this side of the city is the same but different.

[gavel] >> good morning. this meeting am come to order. welcome to the april 20, 2023 regular meeting of the government audit and oversight committee of the san francisco board of supervisors. i am supervisor dean preston chair of the committee. i'm joined by vice chair catherine stefani and supervisor connie chan. our clerk today is john carol in for stephanie cabrera and our tanks to the team at sfgtv for staffing this meeting. mr. clerk any announcements? >> yes thank you mr. chair. the board of supervisors and its committees convene hybrid meetings for public comment and remote access via telephone of the board recognizes that equitable