yeah. mr bridges. absent commissioner, fiscal president. mr gandhi is absent. commissioner help on present is it's a fight president. mr thomas president, we have a quorum. great madam secretary. please call the first item. thank you. item number two communications. we welcome the public's participation during public comment periods. there will be an opportunity for

general public comment at this meeting and there will be an opportunity to comment, discussion or action item on the agenda. each comment is limited to two minutes. please note that city policies along with federal , state and local law, prohibit discriminatory or harassing conduct against city employees and others during public meetings, it will not be tolerated. world for public comment is permitted only on matters within the jurisdiction of this meeting party and we thank you for joining us. great. madam secretary, please call the next item number three general public comment great. so there any members of the public who would like to make general public comment? i think we have some names here today. so if you can come forward.

momentous. this is the first public in person comment, right? no we have fred sanchez friend. and then we had some people last time to from school. yeah yeah, just recording your voice. please proceed. you have two minutes. thank you. good morning, everyone. my name is broadly. begala and i am lead organizer with african communities together, a nonprofit dedicated to improving improving immigrants to fight for the dignity and respect they deserve and this role act supporters. the tenants at 1000 towers who are fighting against their displacement. the hands of tm group southern towers is a five building apartment complex located in alexandria, virginia , and has been home to thousands of hard working blue collar, um , many of whom are african immigrants. 1000 towers were

previously viewed as a safe haven for affordable housing. but after the cme group who have previously viewed as a safe haven of affordable housing, but same group who you have invested roughly 931 million into has changed the perception and engaged in predatory actions and that put vulnerable tenants at the risk of displacement. tenants have reported massive fiction filings and address to maintenance issues mauled disrespectful treatment and significant rent increase that situation at 1000 houses, unfortunately, not unique and see empire is a history of finger aging and scrub bliss practice to make a quick buck during your april meeting. cme's committed to e. c. g was discussed and after reading the staff anymore, we were shocked to see that your team has determined that cm is dedicated to s e g. when their actions

against vulnerable communities show complete opposite your memo mentioned that this conclusion was reached after that stuff staff spoke to with same and reviewed the company's policies and reporters. what cm has their issues reports one tell you that when we asked sam to trying to let its complex 40 page lives into relevant language, 14 anders was limited english proficiency that refused cm and there is the reporters want to tell you that same was giving tenants five days notes of eviction when their federal obligation under the cares act. required. they give 30 days notice. you could just wrap up, man. just your last sentence. thank you. your last sentence. we are asking you to conduct a proper investigation. enthusiasms commitment to sug by taking directly with impacted

communities also asked thank you. thank you. the remaining tenants are here. next speaker please, and we also turn up the volume markers that please ensure that microphone is on. into the mic. i i'm next speaker, please. hello, everybody. my name is harem a share and i am a tenant's 1000 towards towers is a five building apartment complex in africa, india, and it has been home to thousands of handle of hardworking families seeking a better life. for years, 1000 hours has been known as a safe he having for the immigrant community that all began to change in 2023. i m puts the complex, although see, i am

plans they are community, focus it and dedicated to maintaining workforce housing. for a blue color workers. their actions have made it clear that they would rather contribute to the this, uh to the displacement of working glass families, number of fights stable and safe housing. in addition, raising rent cost tenant at 1000 towers are also forced to deal with maintenance issues. that's the i m consistently fails to address we find our selfies in this fractious cyclists where we discussed where we discover a maintenance problem we put in a work order for staff to fix the problem. nothing gets done. and then we again. we have even

found that some of our work orders and up getting market asked, completed. when nowhere. has been done at all. i was up, tenants have reported. that. when they put in a maintenance request to address the model in their unit maintenance. its staff simply fans over the mall instead of properly. eliminating it, as you can imagine, this has severally impacted, uh, the quality of life for a lot of tenants. imagine finding out that your kid has developed it asthma because of the unsolved mall in your sc unit. or finding out. that the leak coming from

your selling has grown into a flood. as a blue color workers. we are already working hard to make ends meet with the rising cost of living. we should not also should not also be time. finished your last sentence? yes. we first thing housing grouses, uh and, uh, are in a unique position to help we are asking you to come to conduct a proper investigation. um, commitment. thank you so much next speaker. with money, everybody. sorry. i'm speak arabic. some ladies transform one's gonna translate for you, okay? um and it's part of the follow up. that's ours. ours my

band from kenya here, mccann seconding me. admin open of the listener $1000 kamala's green lacking by the house or whether 2023 i am die from being normal. we're supposed to talk to the second. tamara's got it just bit access other taxes or whether i see it. i was. health care. i mean, the legendary kennedy. well, that's a real fellas are advisory legal. i am alina. now

he cannot rather saying misery. listen in that second. the second year in his business. yeah that's agreements written to say, yeah, i'd be my fault that fan memory that the second here and we gotta mean in hazleton is on hold. area in the in the americas, ci empty guy animal and not even with off a little with mia. and i had the higher ah, okay. tournament legarrette. shari when he's with the lazaro, dammit, but, uh he doesn't see i m zero. in the months, two months. don't look

at my father's adequate. which i hope to hear. um it's about lerner and nothing is definitely surreal bus manager i'm not not hired legitimate palin misery probably see i am will have this movie. lines. why don't for eight years the smart you see, i am the head normally get that machine. man. we got mr locum. thank you very much. thank you. as you said his name is tarik kafala and his tenant. uh can you get just a little closer to the microphone? thank you. thank you. so as you said his name is

derek kafala, and he's one of the 10 and 30,000 hours just to generalize what he was saying. i myself have been a victim of same unfair, unfair price pricing practice. during the pandemic work was limited, so i had to rely on the rental assistance from the government due to the backlog of applications in my rental assistant was delayed am decided to capitalize on my vulnerable position and used the late payments from the government as justification to move me into amendments to list a company that's truly committed to scg should never use delayed government assistance during the pandemic as an opportunity to move at 10 19 to more expensive and less, uh, abilities. we are facing a housing crisis and you are we are. you are in the unique position to help. we are asking you to conduct a proper investigation into cnn commitment sug by taking

directly with impacted communities. we also asked that you had in future investment until same properly addresses this issue and contact. see, i am and demand that they take our request seriously, and to treat their 10 unders with the dignity and respect we deserve. thank you for your time. thank you. are there any more speakers today? thank you. thank you. good morning, everyone. my name is ayana to vegas and armenian in art. other stars. i was 18 and southern towns up. towers i'm very disappointed in your staff's decision. that's time is committed to e s. g when nothing could be problems are from the truth across the notion 10

tenants have been calling attention to cmc immoral. business practice. so you can only imagine how much of. slap in the face. it is to no see. this very calm. company be uploaded for conduct out is contributing towards our housing crisis. see i am could has been so three .org that's african community together hard file a conflict with the federal housing finally finance finance agency and fit pretty mark showing how cms action run contract to freddie mark, starting purpose. purpose of preserving affordable housing.

if this board is truly committed to g, you cannot simple really on cmes work that they are committed to e s a g. you must engage with the people on the ground. i was actually impacted your staff. mentioned that there were no indeed. identify mean. literally a risk associated with the i'm practices tell that the family who are being pushing out their homes becomes because see i am wanted to capitalize on their not ability. thank you. thank you. there anymore, um, speakers, public comment. okay

thank you. then. public comment is closed. madam secretary. uh please call the next item number four action item approval of the minutes of the april 2020 23 retirement for meeting what's up for a second? okay are there any members of the public who would like to make public comment on this particular item? seeing that public comment on this item is closed. motion made by. commissioner thomas seconded by commissioner helfand. uh huh. madam secretary, please call the roll. mr thomas. hi, mr halphen. president spy. i just throw. mr

bridges. i thank you. we have five eyes. motion passes great. i'm secretary. please call the next item number five action items consent calendar. moved. to ma okay. move motion made by commissioner helfand. seconded by commissioner thomas are there any members of the public who would like to make public comment on this item? seeing none. public comment is closed. a motion has been made by commissioner health fund seconded by commissioner thomas those in favor. alright say aye , those opposed. motion passes. madam secretary, please call the next item number six discussion item chief executive officer's report was continued from the april 2020 23 recurrent board meeting. thank you, madam. c o c i o good morning. commissioners

want to provide you with a number of updates for the ceo report? um first related to the forward calendar. i want to bring to your attention that the personnel committee will be meeting on june 20th and the topic of conversation will be of um, i'll have hit my one year mark. and so it will be my performance evaluation and we're getting on back back on track for actuarial services coordinator evaluation and i bring this to your attention because you will be receiving from ashley dunning at nasa men within the week evaluations for you to complete and we very much appreciate you filling that out so that the personnel committee can can fulfill their role. and we can again get this process back on track. likewise the investment committee meeting is scheduled for july. 12 we have a lot to cover during that meeting . we have three asset class reviews and we will be reviewing the absolute return revised guidelines to the extent that

you have now are looking at your calendars and there are any issues. please let us know as soon as possible. um but it's an important meeting and i hope that we can stick to the schedule and have that on july. 12th ma'am ceo seo just intro, can you can you say who's on the finance committee public? klay. on the investment commitment committee. the entire board entire board. okay. just wanted to make sure thank you. um another scheduling item that i want to bring to your attention in june. that is the time of year that we name the president and vice president for the year and it's the time that we establish, um, the scheduling around the board meetings. i know this past year we've changed the time it would be incredibly helpful, uh, for staff, and i think, probably also for board members to make sure we reaffirm when those board meetings will be so that we can plan accordingly. in our work and our schedules. likewise in july, the committees will be

named and, uh, the ongoing theme here is working with you to make sure we get the committee's schedule set, so i will be very active once those committees are named to work with the members and get it set and hopefully have a calendar that we can stick to the following year. those are the scheduling items. the next item i'd like to discuss is their board vacancy. i want to update all the board members that on may 11th nominations were closed for the vacant seat that we had. we had one nominee. um and that was tim o'connor. the department of elections is certified that tim is the trustee for the retirement board. we plan to have him sworn in in advance of the june meeting and i, along with staff who work very diligently to, uh, provide orientation and onboard him, and, uh, in in advance. i would just like to thank you, tim for his commitment and willingness to serve on the board on behalf

of the current and future retirees of the city and county of san francisco. finally um, i wanted to bring to your attention that we've included their retirement dashboard, which is a quarterly report into the ceo report. uh obviously comes under my purview, and this is just a way to keep the agenda moving forward and included so to the extent that you do have questions or want us to go through the dashboard we can, but it is available here in the materials. are there any questions? thanks for the date, thanks for the date on the dashboard. whether or not we would anyone comes into differed comp but also there's servicing going on the deferred comp program that may be useful that here to prove there's a lot more servicing going on. that may even appear on this one, doctor, but this is excellent. thank you. sure. um, can you just reiterate those dates again? i

have them on my calendar, but i just want you to save it for the record. so july 12th is the investment committee meeting, right? correct and then what are the other dates? big dates? well the other big dates are reconfirming when we're going to for the following your have our board meetings confirming the calendar. correct so those are that's not on the agenda. today, though, it is not. i'm putting that out there, so it's something that that will be prepared to address in june june, 20th is a personal correct . excuse me. can you say that to the microphone, please? june. 20th is the, um personnel committee personnel. and this is all in the forward calendar. that's in the materials. i understand. i just think it's important to say it on the record, so everyone hears it. appreciate that. i mean, i have all this on my calendar. but for those listening and for the

record, so the personnel committee is june 20th. and who's on the personnel committee. that is commissioner halphen and commissioner thomas okay? so. you know if there's not a committee meeting, we know who's responsible. all right. so those are the two big dates. june 20th july 12th. transition of presidency and then calendar. any other important things that you wanted to those were all the topics i plan to cover on this report. okay, great. so there excuse me. are there any members of the public that wish to comment on this item? seeing no public comments closed. so that's it, madam secretary, please call the next item. i have never seven discussion item governance committee meeting report, and this item was continued from april 2023 retirement board meeting. we have a presenter today.

commissioner driscoll. you um stepped into chair the governance committee. is there anything that you would like to share with a broader board? actually knows first meeting. you've had some book. thank you. thank you. that's all. it's on now. when the lights off, it's on was okay. thank you. confused remotely was done. thank you. it was first meeting at some time. but the key thing about the meeting or the ex the next three items on the agenda items 9 10 11, so that will basically include the report of the committee. thank you. mhm was there anything in particular that you wanted to highlight on top of wood commissioner driscoll said. commissioner driscoll. maybe for the record if you could indicate that the governance committee approved, too yes. the committee did

approve the minutes from the main meeting in 20. 21 and then recommended the items you will see in the next minute in items 9 10 and 11 in terms of reference and operational policy. thank you. well, great. are there any members of the public that wish to comment on this item? seeing non public comment on this item is closed. madam secretary, please call the next item number eight action item review and approve revisions aboard terms of reference and policies. minor edits. this item was continued from the april 2023 retirement board meeting. okay? commissioners i am pleased to have before you the next three items, um, which reflects the board terms of reference and governance policies. by way of background. these are the first set of documents that i asked to see when i, uh join us furs

because this is what outlines what my responsibilities are what staffs responsibilities are and what are the responsibilities of the board, and this drives everything that that we do in my role. i view that i'm here to help facilitate you to adhere to these policies . the policies generally are up for review. every five years. we were somewhat behind and having a robust review of them. so i went through all the documents to clean them up and make sure that they were clear and consistent. uh did that with the help of karen of cecilia, with ashley from from nasa men to make sure that it reflected our current practices reflected, uh , current law regulation, etcetera and minimized redundancy. in some cases, i think over the years things have been added to various policies in various places, and that becomes more burdensome. want to update and to be confusing if we have things that are different and policies so overall, i would say that these policies have

not. it's not been a major overhaul. it's not that we've completely rewritten these. we've tried to clean them up in this section that that will cover on this agenda item or what we're carrying, characterizing as, uh, minor edits so either typos or just very minor clarification points that that we have put into these and to help you. we have red lines, and we also included in the first exhibit. a summary of the changes in the policies so, for instance, to give you a flavor for the retirement board terms of reference of indicated that the ips investment policy statement would be reviewed, not less than every five years. rather than every two years. this this isn't something that generally we would be changing regularly. we have the option to review it more often, but recommend five years. um we've also, for instance, done things like combined the vice president and president terms of reference for simplicity purposes. um i do

want to point out one particular item. with respect to the. code of fiduciary conduct, ethics and governance. um it's consistent with what we discussed very much in making sure we have meetings scheduled and we're here the items that they haven't really changed, but i want to bring your attention in the code of fiduciary conduct board members are to make good faith effort to attend an entirety of the board meetings and the committees in which they serve provide notice to both myself and to our board secretary, if you can't attend be active, engaged and refrain from using electronic devices during border or committee meetings in a manner that may disrupt the meeting. i know you all know this. um and i appreciate your diligence and in these, but, um want to make sure since is there's a lot here to bring that to your attention.

happy to go through in more detail the changes, but those are the points that i wanted to make with respect to what's in this agenda item. spread any questions from commissioner? yes, i have one. health fund. this is good cleaned up. understand approved. i mean, i like it all, but i'm confused. have oh, is there a redundancy in the word? executive director commissioner can just speak into the mike because it's not going into the microphone. is there a redundancy that. adding the name the title of executive director. with the i o. c e o and i am i personally. it is redundant, and i think you get rid of the term executive director. okay thank you for the question and to give an example of how diligent we were in reviewing all of this. that was the point of discussion among all of us and, um,

sincerely, maybe correct me if i'm wrong here, but, um, so the charter still uses the term executive director and so the ceo and see i was acting as the executive director. and so for consistency throughout these policies, we used the term executive director. are we beholden to the charter in the different in definitive in the definitions of that, the way we comport our business, and certainly in this way yes, we are and also the charter. sets out to the executive director can be ceo. c i o or ceo. so if there ever were a division of the roles in the future then we don't have to go back and change everything because we already have it as executive director. boy commissioners. another place where you actually wrote that clergy guys, hold on, please. please wait to be recognized before everyone starts talking. commissioner. frisco go ahead.

i'm just gonna mention that there's another document where this was addressed where it's written out where executive directors there you go now it's on. it's on. go ahead. you can check which documents were the phrases the terms executive director is he quick equivalent to the c e o. c i o i forget which document was, but it's addressed there. anyone else wish to comment on this item? okay please. of. one further point on the executive director question of first of all, the executive director. term of reference addresses this point that your that your executive director currently is the ceo. c i o in addition, from a streamlining perspective, almost all of your policies reference an executive director, and so to avoid the whiplash of having to change that, over time, with respect to multiple references. we thought this was a better a better approach to just keep it

to executive director, having defined it as you apply it currently. commissioner. union. did you have size? okay? any other comment. i mean, just just to add on to that. i mean, we spent a lot of time with the initiative was partly regarding the retirement. of those prior to 1996. and then we added the language about ceo ceo into the charter so because it's in the charter commissioner helped fund is defined very explicitly. we have to follow. you know that got that guidance and we were very careful to define what executive director and ceo ceo wasn't spent a lot of time with the city attorney's sicilia and her team. so this allows for a broader reference. and then we defined in another place. so appreciate that. any other questions or comments. okay? um so that was just purely item number eight. for now. so. so

this is about improving the revisions to the board. terms of references and policies can have a motion please. hotel crow. moved to approve made by commissioner alphonse, seconded by seconded by. commissioner bridges. are there any members of the public that wish to comment on this item? seeing them public comments close. motion has been made by commissioner alphonse seconded by commissioner bridges those in favor. bye. those opposed. okay no objection. motion passes. madam secretary, please call the next item number nine action item read and approved revisions of board operations policy. madam ceo seo. thank you. this item is a separate agenda item because we were required to have this posted for 10 days, so we've pulled it out, but the

items that have been, um, edited or amended again a red line, does it all the sections and what we've done is, um, indicated that, for instance, notes for meeting minutes would be approved by the board, which is what we've already been doing and establishes that standing committee meetings generally will be scheduled on a wednesday rather than only the third wednesday of the month. so again discussion in here about keeping a regular schedule and having committee meetings. but the edits themselves to this document were relatively limited . i should also mention we added language on parental leave to be consistent with the city. running questions with respect to the board operations policy. any questions? commissioners any . did you have a comment? the only additional comment i'd make is currently or policy provides that public comment. maybe up to five minutes. although your practice and your board meeting

agenda state that you prefer two minutes um, this find a happy medium of three minutes, which is a very common practice across that again. it's on page 10. it changes the public comments. reference to three minutes as opposed to up to five minutes, so that would need that should be changed on your agendas. if you adopt this and that is the most common, uh in my experience , advising a number of boards across california. up to three minutes is a is a very common and we don't even do that. our practices two minutes. i'm just noting that we have the flexibility. you have the flexibility, right? right question. commissioner halphen also with regards to that. how flexible are we on wednesday day ? yeah it was good, but hold on

a second jumping back. i want to talk about that as well. but i want to finish the time limit is anyone have any comment on that? just to clarify the last sentence. um, through the. to the city attorney or the c o. c. i o said the president of the time aboard may limit the total time to 30 minutes. that's total for item or total in gent, er item. okay just wanted to point that out on that that is, i believe is state law. right? i mean, that's what we reference in. and we do our transportation 30 meetings that they stayed out that based on state law that each item can be limited up to 30 minutes by the chair of president so that is our governance policy. but i just want to say on the record that that is a that is a practice with throughout the state commissioner driscoll. two things one and then becomes down to and the definition of item. does it apply to the motions or

the item? some items have multiple motions to execute, or that the item that's a loaded question. but is there already an answer to that? generally it's per item. i can't think of an example when we had have had more than one vote for item. i think we're usually trying to break it down. so it's one vote per item. well, yesterday we could have had four at the differed company. we decided to package it, but it could have been four separate motions. i'm just trying to understand that he should. i know you do have commissioned driscoll. if there's multiple items, you can merge multiple items on an agda, and then there becomes that then becomes one item the public can comment on not each one separately. what i'm trying to drive that if somebody wants to speak and get his 235 minutes on every motion as opposed to the item, yeah, he's the point that the president or whoever is chairing the meeting can make that ruling to include which is my next point, it doesn't have to be three minutes. if we use

the maximum limit of 30 minutes, we say, folks, unfortunately, somebody speakers, we're going to have to reduce it for two meetings two minutes today like we did today. flexibility there is under control. i just want to make sure that the public would understand. yeah means the item not by motion, right? good point. thank you. that's correct any other comments or questions on time limits? okay now, commissioner health. i was going to ask the same thing. so i'm glad you brought that up. go ahead. please reiterate. you're just, um i think it's essential and i'll speak anyway. um when president sapphire came on as the president. and in his role as as a commissioner here, as well as a supervisor for the city. um this supervisors have a very full agenda and its monthly . i mean, we're it's more current than we have. so i'm just if it if in the future i

know wednesday is something that is sort of ingrained in a lot of our constituency. our operations . it's been that way. we switched to thursday to make it operational in terms of president stuff to eat. but. are we locking ourselves in here on this item? because i would suspect that we would have a conversation about going back to wednesday. um it if when president suffer is term as president expires. if i may address that the language is written that regular meetings are held on wednesdays or at other time, date or places, uh. that the board may designate, so it does provide some flexibility . i think it's anchoring in on a wednesday but provides

flexibility if different decisions made the part that you said yeah, at the very end. um so i'm looking at page four. item 18 and where we see regular board meetings on the second wednesday, and the last phrase is or at other time date or places. the board regular meeting may designate. i didn't see that either. i wouldn't we just just to continue to question why wouldn't we with four? god we were passing this we're going to pass in an actor's today i prove it. okay why wouldn't we say there will be thursday of each month at 11 at 11 like it is right now and then when we went if we go back to that there was some sorry. why not put thursday? in and then go back to wednesday if we if we choose to i just go ahead commissioner minute. um i think

that the current draft makes sense in that it provides us with the flexibility to return back to the original date if necessary, but we can also maintain the current one, especially if we're looking at this in the future. given the way that it's written, it seems like it allows us to the flexibility to do any of those that the date you know? yeah i feel like i agree. i like it the way it is bridges. thank you, president saffy. i concur with commissioner thomas. i think i like the language the way it is because it gives us the flexibility. if you go to thursday friday, it doesn't matter because that last sentence gives you the flexibility to move. but i like it the way it stated now and also as a member of the governance committee. kentucky. you okay with that? i'm fine. yeah just to add on to your

point that the main conflict was if you have a member of the board of supervisors that also serves on the budget committee, the budget committee meets on wednesdays. so that was why it didn't matter which week it was in the month. it was the fact that it was a wednesday. i know here. it's his second wednesdays. i don't remember. i guess that's what we did. and then we moved into we were working out all the different schedules here. um. but i mean, i think it's fine the way it is because of that last sentence. we have the flexibility. i just wanted to point out there in the future. if not me and somebody else and they happen to be on the budget committee. you're going to continue to have that conflict because budget committee meets, um, mornings and then once we get into the budget season for the for the city, then they mean in the afternoon as well. it makes sense. you want someone that understands the finances of the of the city. so uh yes, commissioner bridges. if there are no more comments on this

item, um president salva ii move that were approved the revisions of the operations, the board operations policy. the motion made by commissioner bridges seconded by second commissioner health bond. are there any members of the public that wish to comment on this item? seeing and public comment is closed. so emotions been made by commissioner bridges seconded by commissioner health on those in favor. by those opposed. seeing none hearing no objections. the motion passes. madam secretary, please call the next item. remember 10 action items, review and approved revision aboard policies more substantial edits. this island was continued from april 2023 retirement board meeting. so this is the last of the three items related to governance policy and this group of, um, policies had a few more

edits than the last group. so we put them in their own section, as we did for the other sections. i have a summary page trying to highlight what the changes were in each of those policies and there are a number of items that i'd like to highlight here. to make sure that that, uh, you're you're comfortable with these changes first as it relates to the strategic plan. um previously there was really the policy was set up that there was an annual uh, strategic plan and we will be reporting on a quarterly. my perspective is that a strategic plan is typically more of a three or three or even five years. uh type of plan. um, and so we've set up this strategic planning policy now to be a three year plan with annual updates, so the communication will still be there and you will get updates as to where we are in that process, but the development of the strategic stand will happen on a three year rotating cycle. secondly

for the monitor and reporting policy. um i went through this with a fine tooth comb. this is the place where there was some redundancy in particular. there were there was a table in there that highlighted all the reports that we deliver to the board and other reporting requirements. um and a lot of that was already covered. in all the other policies. so what i'm recommending here and what you'll see in your materials is i updated the table so you can see all the items that are now current with the other policies , but i do recommend removing the table because we run the risk of again. we change a policy in one place, and now we have to change it somewhere else. so i have a very, very detailed, um, report schedule that i'm maintaining i can make that available to you. we are not losing and reporting just don't want i don't recommend having the redundant table here in this policy. the third item

that i wanted to cover is with respect to the communications policy and here wanted to highlight some and reaffirm some items that are in the communications policy. first on communications with staff as as written in the policy. all requests for information that required work should be done in writing and should be directed to me, the ceo or the actual actuarial services coordinator. copy me, please on all those emails, um and these are requests for consideration, not not necessarily action. um and i'll get to that in a second. but please do not reach out and we have this in policy to individual staff members with requests again. they should go through me through karen or to the actuarial services coordinator. the reason i say that the requests are for

consideration is i want to work successfully with you all as a board. we've gotten a lot of requests. those are great. we're very happy to have an inquisitive, uh, engaged board. um, i will be. i am keeping in formal and informal log of all the requests and want to make sure that the time spent by staff is aligned with the collective board boards view of where we spend time so um so we will work with you on that, and we may have further discussions. but first and foremost again just wanted to highlight that that communications with staff on work requested go through through. myself. secondly communications with members and beneficiaries want to reiterate that madam secretary madam secretary, madam c. e o. c i o m. the last sentence. you. you saved. this policy does not include routine request for readily available information. what does that mean? so a document that already exist just

a question on a matter of fact of something, you know policy. what have you if it's an, uh, on the other side of the spectrum, it's we want you to look into making this change with how you administer something, or we want you to provide an analysis of a manager or a new investment. those are obviously much more substantial work. what is the purpose of that? sentence. it seems, it seems nonsense quitter. are you saying? what what? i think you need a little more there. it doesn't. it's not making sense. are you saying if a board member has a routine information request. it can be done verbally, and it can be done to anyone. because it's not clear, direct, just like this is it, says board members request for information from staff got it. there's no page numbers so i can tell you a page. i'm there. i see where i see the things that you struck. and we've had

conversations and i've been very clear in terms of what i believe is the right way to communicate . it should definitely be on every board or any that i know. in this city communications from commissioners are done directly to the executive director and ceo. c i o not to stop. and i think that's very clear except for that last sentence. the intent was to give a little bit of flexibility. you know if you want a basic document that's on our website. and you're talking to your in a room with whatever staff members. we don't have an issue with you saying, hey, can you send me that? yeah the idea is, if there's any work that's required. i don't i don't think that i don't think that's i think that's too broad. i think that personally and i'm happy to have other commissioners way in. but i think personally that communications from commissioners should be through the ceo, ceo or uh, actuary service. person i don't think it

should be direct communication with staff for any information personally. i don't think that's a good practice. i think it's too flexible. it leaves room for a lot of things and the and the interaction dynamic is one in which it can start off with a routine requested then grows into oh, but i can do and then it becomes even more than that. i don't think it's appropriate. i think i think we should strike that last sentence, and i think i just have a comment from a governance perspective. i think it's a really good observation one way to reflect. i think both interests and i defer to your ceo. c i o on on this, but, um would be to note that it does not include routine requests for readily available information and then identify to whom that should be directed. for example , your board clerk if the request is for the board packet for a meeting or to know where the policies are within your systems, you shouldn't presumably from a governance perspective. be taking your ceo

seo's time with that. but the board clerk would know exactly where to direct you. that's what that might be an insulin available information it should to should be directed to the to the board clerk. i'm fine with that. that makes sense. but i just want to draw a clear line between the commission and staff. i don't think it's i don't think information request should be going from commission to staff. i don't think it's appropriate. so i'm happy commissioner driscoll. i assumed the way. ms stunning brought up this issue. for example, the board has an executive secretary. do we have to go through the executive director slash ceo seo to ask something. i think that was the point. i think that's a good point different terms. that's one too. what about the actual services coordinator? what it's mentioned here as it's one that's allowable. it, says c 00, or

actuary services coordinator makes those are understand the same chapter. what about any of our external well, that's in a different area, external communications. but do i have to go through the executive director? it depends on what external communications are referring to general consultant. sometimes called the board consultant. so right now you're talking commissioner just quality of talking about requests for information from staff, so that would be a different section of this that should be discussed as well. but maybe not. maybe we can refer to that. well, sometimes it's into it. even some of the subjects we work on here are worked with board staff. an external people. obviously the executive director ceo ceo wants to keep track of everything that makes good sense. but making a requisition that i have to go through her to talk to somebody else. sometimes it gets awkward or forgetting usually when i want to, and i

know who the person who has the answer to the question i c. c the c e o. c i o is that in violation? would that be a violation of the rule the way i look at it, but i would have to. i want to hear what the ceo has say. ms dunning's point. the section that we're talking about is information from staff. there are sections on guidelines about , uh, communications with others specifically address, um, commissioner driscoll's question , though, with respect to the board consultant, it is your consultant and specific to the board consultant. those communications can be direct. that's why in some ways comparable, the actuarial service coordinator reports into the board and it makes sense for you to have that direct access there as well. i don't want. where's the section that talks about? turned back? excuse me if you turn back to the prior page under item, um 11xtnal communications service providers, i believe that directly addresses this point

and notes that board members simply agreed to inform the board president and executive director in a timely fashion if they are having significant communications containing his first business with those individuals. yeah and it references the investment consultant, so there's absolutely no prohibition on that. there's simply a, um it says to keep keep them keep them in the loop priced right. that makes sense. in in terms of the title that's referenced. i differ whether it's board clerk or or board executive secretary, but it's the same person. to whom we were referring and believe what is the appropriate term? word secretary. so there's a couple other items to discuss on the communications policy, but i just want to make sure we're clear on what we're going to change. yes so what we will change here at the end is that this policy does not include routine requests for readily available information. um that

those can be directed to the board secretary. comma which should be directed to yeah. or which are to be we could make it more directive. interfere with me. don't wanna make sure i'm on the right hate on this thing. sure you on section item number 10 10 years. and its board members request for information from staff. it's item under which under which 13. oh, that's not the right word. find the best with your stuff broken up. beijing numbers not number was page numbers on this. i was organized coming in. it's this. it starts with this. calendar. here it is. this one. san francisco employees retirement system board communication policy. medications investment.

called him out. oh commissioner thomas did you have i'm sorry. i know you had your hand up. please go ahead, looking for us. i think we've resolved it would have been okay. page. to the right section i can before living right here, right right there. just policy does not include routine request for readily available information. and then we would add, which are to be directed to the board secretary. which are to be directed to the board secretary. we would add that comma, which are to be directed to the board

secretary board secretary not to the ceo. i can support that. let me move on. please perfect. so that addresses information requests from staff. i think it we've talked about interaction with the consultant a couple other points to make communications with members and beneficiaries. so, as you reminder board members they only convey general information to beneficiaries and cannot provide beneficiaries education or technical information on their benefits. we staff cannot discuss individual beneficiaries benefits with with board members , and if a member has a question that they ask of the board members then we asked that the board refer them to other our website, the member services team or the ceo as a appropriate . um next on referrals,

referrals being if you know about a jerk, come to you and ask for a meeting or other vendors again that must go through the through myself through the board. pardon that yup. is that under external? no, that's confidence. well, here we go. board member of pearls management correct. so those were those referrals must go through me through the board secretary or the ceo for consideration. those should not go directly to staff. obviously we would involve staff as appropriate, but that they should go through me. two more points on the communication policy one. what we're terming communication with two hats, um, board moments. discussions with stakeholders when acting in two capacities. um i had as a board member and that of one of your other roles, and that should be

aware includes both in person discussion, but discussions that we have heard through email or social media. and then finally, and i know you are all very keenly aware of this. i want to remind you that nonpublic information that we share with you in the course of interaction and board meetings must remain confidential. so those are the items on the communication policy that i wanted to highlight. i think we have for the record that the amendment that you wanted added in there, but i certainly welcome any other questions with respect to any of the policies in the section. any commissioners. questions further comments. okay? great.

just just going back to the remember referrals to management. it was just rereading that. so sounds that's been a consistent practice. but you've added some language or remove some language. um is it in that instance i see the board secretary. if someone. i wanted like a plant member investment manager media otherwise. you can contact with any of us with regard to benefit investment or other retirement related matters. when that just makes sense to just go straight to the c e o. c i o and that's it. and that instance not the board

secretary, that seems like a pretty significant request. i just want to understand what thinking is behind that. i think the rational that we were discussing before applies here. um you know if it's sort of a routine request of something that that we provide to, uh the member. and its administrative. i think that can go to the board secretariat. it's a larger ask, right, you say plan members. okay so you can leave the flexibility. it's more general in nature are simple factual, so it's like the ceo or the board secretary. correct. okay got it. okay. i'm good. so i think we need to make a motion to amend. um and add that sentence and then we can then vote on the whole item. so is there a motion to amend as written into the record under this section board members requests for information for staff. they would read. this

policy does not include routine requests for readily available information, which are to be directed to the board secretary. the motion to make that amendment. somehow. seconded by . second seconded by thomas. by health fund. okay so we've amended that so we have to. we have guess we have to take public comment on the item first, and then we can make a final. members of the public who wish to comment on this item. seeing the public comments close. so there's a motion to amend as read into the record by commissioner alphonse second commissioner thomas second wife commissioner helfand. all those in favor. i supposed. okay so that amendment motion passes and now emotion too. uh just send the for the item to pass the item as amended. napa box in

summer. moved by commissioner bridges seconded by commissioner health fun. all those in favor. hi all those opposed nay. okay. the motion passes. um i think we're going to take a break for lunch. we'll come back to item number 11, okay? lunchtime. sorry. we will be back at 12 45. president, mr health phone. i wasn't presidents of ie present , mr driscoll bridge is present. we have a quorum. great madam secretary. please call the next item. never love in action item consideration of remote public comment. alrighty uh, any i presentation, madame c o. c. i

o. would you like me? uh this up? okay um, so, um, relatively straightforward in terms of the agenda item, which we've laid out in the calendar sheet here, as you may recall on march 1st 2023 policy bodies no longer had a legal obligation to offer remote public comment to members of the public. um, with exceptions for reasonable accommodation, um this was discussed at the board meeting in february, but we now have it as an action item on on this, uh , for this board meeting and we put forward for your consideration a number of options. certainly there are other options available for your consideration, but option one would be to maintain our current practice, which would is no remote public comment except where required by law. uh option two would be to allow for remote public comment, uh, for everyone with a total time limits. so, for instance, what we put forward here is up to 10 minutes

of remote public comment project to item and then the per person time limit would be identical to in person. a third option that we put forward for your consideration is to allow, uh, remote public comment for everyone and those conditions would be exactly identical to in person comments so you would have limitations on individual, um speakers and as we discussed earlier in this meeting, it would be at the discretion of the president on any agenda item to limit total public comment in person and remote to a certain amount of time. so those are the options before you happy to address questions before before we go to. oh, that's fine. go ahead, commissioner helfand. but what i was going to say is i just listen. we've gone through obviously a major transformation over the last three years with the pandemic. and it has it has burst for lack of a better word.

birth, some some real positive impacts in terms of access and accessibility and public participation. um it has and i still stand by my previous comments. there are some real. downsides that our city is still struggling with as it as it pertains to remote work in particular. um and that's evidenced by pierre statistics. we have the highest office vacancy rate in the entire country. by by far not even close. and a lot of that has to do with remote work. ability to re entice people to come back into the office one, but it also has to do with the type of industry that we have here and were heavily reliant on professional services and the tech sector. and that is also part of the reason why, along with a whole host of other

reasons that we're trying to address as a city when it comes to crime. cleanliness and we don't have to get too much into in depth on that, but there are barriers for people, and some of it was evidenced by today. i mean, we saw a group of people that came from across the country. two. common. on an item general public comment. we have retirees all over the country. we have right. tyree's all over the state of california. have your trees all over the all over the world. and so i think that personally, i think it makes sense to have remote public comment. i think that we have the built in rules and governments to limit that. to ensure that we're still have the right flow on our agenda. but i think that it's time that we re institute that we had it during covid. all the longer wasn't much participation. still as an

option. i think that some some of that has been shown to be a positive in terms of getting the input and information that we need so go. have fun. um well, i'm in favor of i let me backtrack. as much as i don't want as much as i don't want to say that getting older is a disability. but, um you know when we have them participants in this building. particularly this building because we have the retirement board here and below us, i think is health service system, and it involves a major constituency of this city and county of san francisco. and um, just in the volume of responses i've had been emailed and what i told her i agree. it's supervisor. somebody that we should make it available to our constituency.

and actually the city. the whole entire city. so, um. it the only concern i have is that we do it smartly. in terms of not um overloading our, um our teams. and in terms of comportment. delivering the service. and reduce and addressing the costs. so i wouldn't i'm sure you jen wants to say thank god finished. that's my position. commissioner thomas. oh thank you, mr president, um, in discussing with folks that want to participate in public comment, and also with staff to, um research, whether you know the administrative burden and all would be significant. i feel very comfortable with option three from the recommendations,

um and seeing commissioner bridges, um, gesture, i'm gonna go ahead and make a motion to adopt option three. okay okay. great. i'll take that motion. i mean, i just want to give everyone the opportunity to win. commissioner bridges. thank you from the think option three is the best solution for us because again going back to having constituents all over the country and sign even outside of the country to other places. he gives every everyone an opportunity to do process gives everyone an opportunity to voice their opinion. not everyone can get on a plane. and i applaud, um six people that came in from across the country. that's that's no easy feat and financially economically. i mean, it's tough. but and we have some people that are disabled, right? you have disabled folks that you call in. i think they should have the opportunity to voice their concerns as well. so i'm a person that's really supporting option three. any other

commissioners want to comment? commissioner driscoll hit your little hit your button. i can certainly support option number three. it's a period of the first two. there may be in one sense more convenient for us all the with all the other items were trying to cover but i think to use the word smartly that commissioner healtheon just used how we would implement. option three can help us achieve our other tasks, meaning we've never actually then invoke good time limit. on the topic. and therefore some meetings. um on one item, he goes hours, which is fine. we want our members to he recognized. we want them to believe that we're listening to them, and they have all sorts of proof when the big issues just as one example the fact that we added andrew collins and another analyst to help him dealing with the s g issues is a big expense. but we did it to prove it and it's helped us improve. art is amazing, but what i'm concerned about the amount of time spent

which could occur. it's a couple. it's already happened a couple of times in the last couple of years. normally then we're having particularly investment staff and other people staying in the room for a couple hours, and they're not doing other work. therefore another one of the tools besides implementing the time cap is that we have the right to say. okay we're gonna take up this item and may take up four or five hours, but because issues of protecting the quorum we're going to adjourn the second half of the meeting, which may be pure investment items. until the next day. unfortunately, sometimes their investment items. they usually occur in the closed sessions, which we always take up first, but maybe we're going to have to push it back there on a deadline. if we don't decide today, we're not going to be able to make that investment. so again. that's a competing interest. for the time at the same time, we're trying to have the remoteness access to have our members. and beneficiaries be able to listen and participate. so again. that's a tool that hopefully the who's

ever managing the board of the board would consider that so we can make option three work, but in such a way it didn't negatively affect all the other work we're trying to do at any given meeting. great. and. i think all those are really important comments. i think that having the ability to participate. really really important kind of overriding. everything else. um when it comes to the comment, and i think you're right commissioner we've never invoked that limit, but we do have that limit and we have the ability to control for that. um okay. great some doesn't motion on the floor for option number three, made by commissioner thomas second invited commissioner. second of my commissioner bridges. all those in favor. did we get public comment? wait. members of

the. and that's funny. any members of the public wish to comment on this item. seeing them. public comments closed. um okay. so motion made by commissioner thomas seconded by commissioner bridges all those in favor say aye, those opposed okay. motion passes next item. action item recommendation to engage successful proposal to perform actuarial audit. good afternoon commissioners. in march, spurs issued. request for proposals for the actuarial audit. and we received for responses from four very qualified firms. after considering the proposals. we are asking that the board approved engagement of grs. to perform the actual audit. grs

scored highly under each selection criteria, they can deliver a high level national view of our plan firm and consultant experience, and they provided a very competitive for the actual audit. do you have any questions? any questions, commissioner commissioner driscoll two questions when who was on your team? it was karen and allison and myself. thank you. second question. has grs ever done. artists were chiron was the consulting actuary. i did not ask that question they have. then thousands will probably okay. thank you. happy to support your recommendation. thank you. any other comments. moved to approve moved to approved by commissioner alphonse seconded by commissioner driscoll. any members of the public wish to

comment on this item. seen that public comments closed. motion has been made by commissioner alphonse seconded by commissioner regal driscoll. those in favor say aye, those opposed ain't no objection. motion passes. madam secretary. thank you excited. item number 13 discussion item chief investment officers report. um that's three items that will cover today. um update on board approved investments. uh discussion of our investment manager selection and monitoring process and point will make on total planned value just have foster this process. if you don't mind. i'm going to go through the update on board approved investment, so we get that right into the record so that we can have a broader discussion on the investment process. so i will read that into the record. uh, at the board meeting on march 16th 2023 , the retirement board approved in closed session and investment

of up to 25 million and pillion ventures, eight than best, um, spurs investment of 25 million in pella adventures eight closed on april 5th 2023 next. at the board meeting on march 16 2023, the retirement board approved in closed session, investments of up to 10,000,002 k v c secondaries fund three and up to 100 million and knightsbridge h. 2019 lp. spurs investment of 10 million in the kbc secondaries fund, three close on april 28th and spurs investment of 100 million in knightsbridge age 2019 lp closed on may 1st 2023. next at the board meeting on april 2020 23, the retirement board approved in closed session. a commitment of up to 80 million in t a 15. it, uh, that fun is classified as a growth capital investment within the spurs equity portfolio, and it closed the 80 million million

investment in t a 15 closed on april 27th 2023 next at the meeting on april 20th. 2023 the retirement board approved in closed session investments of up to 50 million to be allocated between mayfield uh 17 in mayfield select three. investments of 20.5 million in mayfield, 17 and 13.5 million and mayfield select three. closed on may 1st 2023 finally, um at the board meeting on february 16th 2023, the board approved in closed session, a commitment of up to 100 million in genstar capital partners, 11 and priority co investment vehicles. gen star capital partners, 11 lp is classified as a buyout investment within the spurs private equity portfolio. ah first commitment of 100 million to gen star capital partners closed on april 26th 2023. so with that i was going

to turn to the presentation that i have in this report regarding the investment manager selection monitoring process, and darlene if you could pull up the slides. so um, first by by way of background. um i've spoken in some prior board meetings about the enhancements we've been making to our investment, um, monitoring and management selection process have also received a number of questions from board members over the last several months, so i wanted to take the opportunity with the c i o report to present to the entire board. what our processes and that is, uh, very central to your role as fiduciaries to understand what our processes are, and how are our decisions are made and provide oversight. to that. um i also think it's a timely point to have this discussion because, as you know , we've been working with nasa manana delegation survey and we are on track to report that, uh, in in june, and so this gives an opportunity for you to best understand all the work and the

oversight and controls that we have in in our manager selection process. so with that, um, if we could turn to slide to, um, quickly hit on the key takeaways, but i want you to daughter this presentation. if nothing else, which is one we do have a very robust and established manager selection and monitoring process, and it was all got it by the board because you all approved the investment policy statement, the manager guidelines and the monitoring process. we've set this up to match rolls with expertise, so it is the investment team in the asset class that has the greatest subject matter expertise and they are doing the bulk of the work, but that is supported by subject matter experts as as consultants and oversight with other individuals across the investment staff, which i'll outline in more detail. we have added a number of steps to our investment monitoring and men selection process. i've spoken in prior meetings, things like, uh, i will be approving the

manager selection criteria before we kick off a search in public markets. i review very early stage early stage in the diligence, a teams, um, right up on a manager to understand what they're looking at, why it fits in their portfolio. and what are the key risk? it gives an opportunity to have a discussion early in the process so that we can address any issues. uh, as we do our diligence. and we have solidified the role of the portfolio manager, uh, management group, which is the mds that head up each of the asset classes they plan important part in reviewing every investment because they provide broad perspective of the total funds. and so bringing this together again. key message for the board is to understand that before an investment comes to you as a recommendation, it has been thoroughly analyzed, thoroughly vetted and importantly, thoroughly debated . uh we have a robust dialogue

with consultants and within our own team, pushing each other to make sure that we've evaluated the risk john our work and done the diligence. now i'll dig in a little bit more to those points, because, uh, flip to slide three. so who's involved in this process? the investment staff, which we have at the center is really the asset class team. and they worked with a lot of individuals throughout this process. what we're showing here in green are sort of that what we're calling for this the purposes of this conversation, the internal oversight parties, so that's myself. that's the portfolio management group and operations and then we have relative again to the staff, the external oversight retirement board, general consultant asset class consultant and working with outside counsel in the city attorney's office, so you can see there are a lot of individuals involved in a line with with their expertise. so that's who the parties are on page for. what we talk about is

what the parties do and again. this is all outlined in the policies that you all as a board have approved. so some key responsibilities of investment staff is to be involved in every aspect of manager selection, monitoring and allocation. staff are the subject matters, expertise and i'm putting together some data to, um, show that that show that numbers, uh , by my current review staff collectively has over 350 years of investment experience that that is substantial. um with regard to external oversight, you you know your role well, the board sets the implementation framework reviews, investment structure, asset allocation and investment results. these are all very important and big picture items, but it's important to understand that that all drives ultimately which managers we choose, because you help us design that that framework and then you provide oversight on the decision making which is part of the core

produce very duty. and then finally, the investment consultants make recommendations on investment policy issues. they assist them with selection and monitoring, and they are an outside sounding board. they will share where there are risks. they will debate with us, and it is an opportunity to leverage their expertise to get a broader perspective of risks, risks and considerations. so turning to the next slide again. we've talked about who we've talked about what and i want to talk a little bit about when and where there are controls in our process. what we've tried to show here is a bit of a graphical, um, representation of each of the stages of the process of manager selection. and those are sourcing and screening, investment, diligence, operational diligence , investment recommendation and contracting. yeah at the center of all this is the asset class team that does this work, but at each stage of the process, we have external and internal oversight. where we have locks

on this page. it's a graphical representation for you to understand where they're sort of decision point controls, where approval has to be made or review has to be done for it to move forward in the process. again here. i'd reiterate that overarching all these steps in the process, the board is involved in establishing a parameter murders by setting the investment policy statement. now you may be asking yourself. what are these checks mean? what is done at each stage? that's what we've tried to capture on the next slide, and i will admit on slide. six this is an eye chart, and it is hard because there's a lot on here. but i know some people find it helpful to sort of see an entire process in one place, so that is what we provided to you. but i want to talk about in particular where at each stage of the process we have those controls. so for instance, during sourcing and screening, um we do have the annual reviews to talk about where we want to go for the year

to talk about pacing to talk about where we're going to lean in and out of certain areas based on the market. i am part of that process. and we, uh you know, agree that this is the path work for the year forward when it comes to investment due diligence again. i am involved with his. what we're calling the go. no go if a team brings forward and investment idea that is not consistent with what we had agreed upon in terms of that annual plan or is outside of the guidelines. or is problematic or has too many risks will stop. but more likely, it will better inform our decision and our processes as we do diligence to make sure we're continuing to ask the right question and again at that investment, diligence stage. we're working very actively with our external consultants. uh so soon when it comes to the investment recommendation stage. um that's when the asset class team provides to our portfolio manager group. the all the recommendations. so the consultant recommendation the

consultant, od d report and the investment memo. and they come up with a lot of questions to ask her asset class team. it's a i mean this in the best way. it is a tough group. it's a tough crowd because because each of them bring expertise to the table and a total fund perspective and ask very insightful questions to make sure that again all these things are fully bedded. the pmg group will then concur with with the recommendation and then it is open open ultimately up to me to approve that i take into consideration everything that the pmg has taken into account and i will take into account that the recommendation of the pmg so we built in and made more consistent each of these stages of the process to make sure that the review is robust. and then finally on the contracting side again where we have controls. we work with outside counsel and we work with cecilia and her team. they approve every document to form but we've enhanced the processes there as well. to

understand what a contract ultimately comes to me. um, where? where is it? have we gotten into the contract? everything that we need. where does it differ from? from? from our standard. why is that a risk ? is that not a risk and i think we've worked out a good system to make that happen. so what i'm trying to convey, and it's a lot of detail. there's a lot more on this page is that we've systematized that the process to ensure that that we leverage the expertise of the asset class team but have good and appropriate oversight. through our consultants through outside counsel and through the broader set of individuals, uh, at at, um it's in the investment staff , and i should also add our investment risk team plays an important part in many steps of these these processes and we're building out that team. so we have the bandwidth to make sure

that we have that that risk mindset with every decision. on talked about oversight on slide seven. i talk about the actual responsibilities of the asset class team. i won't read through the slide again. this is all from from the guidelines that i ps that you've approved. um, but again, our teams often are following managers for years before something comes to recommendations stage. they get to know these managers. they follow them. they analyze them. um and they helped god where we leaning out in and out certain years, based on their experience and perspective on on the market there conducting quantitative diligence, qualitative diligence , meeting with managers, etcetera and not only considering investment risk but operational risk, and all of that, then informs their recommendation in terms of how to size the portfolio. think about it. it's role in in their overall asset class. so a lot of

words on that page. but but it's reflective of all the great work that the team is doing. so that's how we get to hire a manager or funding strategy. our work doesn't stop there were always monitoring very closely. the managers once we hire them, and that is what appears on slide eight. so um, it's an ongoing process. um the asset class team does the work. they work with our risk management team. we work with consultants or attending manager meetings. l packs gm and we're addressing all the things that you see on this page, so not only investment performance but making sure that the manager is sticking to the philosophy. the process. understanding the risk and return drivers that they're acting consistent with guidelines so a lot there and there's a lot of detail under each of these boxes, but rest assured again. the work is not done. once we hire a manager, the work only continues. the

last point that i want to make on slide. nine. is that investment staff myself. we are committed and we are required to then report to the board on many aspects of the manager selection and monitoring process that again fulfilled your duty of your oversight duty as fiduciaries on slide nine. wait, we detail um, all the delivery deliverables to you very familiar with us because you've seen us present on all these. um i think in particular things like the asset class strategy reviews, which will have some coming up in the investment committee meeting in july are extremely important because that that is a reflection of the entire asset class decisions on portfolio construction and having time to discuss issues like that again. that's where the board can have, uh, a lot of impact. and so while we spend time on individual managers and $25 million investment, some of the things that are on this page that we deliver to you are uh, are very, very important. sort

of wrap up my comments and i welcome questions. want to leave you with a few things? we have a good process in place to select and monitor managers. since joining this organization, i reviewed the approach. i've worked with the team to enhance that approach. we're looking to the subject matter. experts with the financial knowledge to run the process, but we have checks and balances along the way and again as i started everything that comes before the board has already been very fully vetted and debated. um, before you see it. so that was a lot. uh it's a big process. we try to encapsulate all of it. and i particularly want to thank uh aloe tanya kurt david. ana. sorry um, who work with me to sort of execute the vision and try and get a very complex process down on paper to share with you and the board. hmm.

just to comment. i guess if you were to look at extraordinary cost center. this is an extraordinary gossip. how this is allocated up box cross all those boxes in the terms of how we do our business. and, um i i'm i guess i'm safe in saying that. you you drill down in the each one of these little boxes to find out whether they were actually costs are rationalized . right? so yeah. that's one of the. incremental i mean inherent parts of the deal. yes and i think we included in our budget proposal sort of a return on investment for the returns that were able to achieve by by investing across asset classes, investing in private markets, and it is a significant risk are

sort of return on that dollar investment. i think i would if i would circle back to go to a primary thought that i have in this area. is that in, for instance, in all the work that we go through these boxes. to put a investment to the board for their consideration. to make that investment. the packet. sometimes can be like this. and someone comes gonna be like this, and that's just what we're getting. you've got probably reams of data and whatever that staff is using to come to the conclusion that you want to make refer to make that investment. so, um. that is, um in the area of opportunity. probably and we've talked about that. i think

that's an ongoing. um. challenge that you're looking at internally. and where we're getting the most. oversight advice. thanks for the buck. and so. but this is great, you know, love it. um thanks for doing this. document this way. and i'm gonna make a couple of observations. but the fact that isn't a bridge. representation of the i ps is great. i like pictures, much more so than words. that's not why i don't always have a lot of respect for lawyers. but pictures are easy for people like me. no offense to the lawyers. one clarification i want, though, is the phrase back on page seven.

just one of the again this is i know it's a discussion about determine ability to meet spirits objectives. can you just clarify that someone make sure i understand. that's a very important statement. specifically ties to investment objectives, as outlined in the investment policy statement, so both the objectives i think for the total fund and for the asset class that objective, which then leads to how we invest, okay, um thanks for thinking back on page two, when you sort of list page for all these. but the internal team slash investment staff doesn't. many many complex task. oh, i know that in one sense. doesn't represent everything staff has to do, but i'm glad you see you have fish. you've managed risk. there, you know. the order doesn't represent how important anything is. that's one to the one missing piece of the puzzle. i thought again. this is a discussion. it's not meant to be complete. but one of

the active decisions delegated to staff. is the issue of how much leverage for polio to get and how it's been to invest it. that's a different that's actively investing that's not monitoring that has to be monitored. so to the extent this becomes represented, going forward. we have to figure out how to included. so we understand. this really helps support understand all the things staff is doing little to appreciate all the time it takes to do these things because, for example, the managing risk is not. it's not simply a manageable quarterly earnings semi annual report. you guys are on it 24 hours a day. so again, that's just one of the items about this great document if i may address that point to clarify the intent of what we show on page four, is specifically responsibilities as they relate to manager selection and monitoring, um and does not . we didn't intend to capture on here. the how we address leverage in our systems and processes there. that's something that we're working to enhance, and we can come back at

some point and provide that. okay that's that's a useful clarification because the point bullet point there about rebalancing assets that's again. rebalancing is a that's one of the ways you manage risk because guardrails or guidelines that you're giving. you have to do that. there's another aspect of . the authority staff has to do you're able to move money within an asset class. those are active bets. that's something else that we the board has to make sure that's being monitored. your reporting and consultant is watching that thing. it can be a significant amount of money after a while again. lot of tasks. a lot of responsibilities . it always come back. we giving you and staff enough resources do that which means time and people and being compensated correctly. how this represented in one sense the process. i used the phrase um increasing value.

increasing enterprise value, which usually most people think is finding another opportunity for investment to make and invest. one of the less well understood items is improving the process. much like hiring more and better people. leads to increasing value. and it's a whole range of issues making is a good place to work. a place to stay where you're gonna be respected. we can really use your brain to help us. make more money and, more importantly, manage risk. so again. great document. thank you, um. i would say it sounds like if you this is representing the process. that you can see where how to improve the process. along the way. we'll also increased value. thank you. any other commissioners. i have one other item to c i o report that i wanted to mention, but were there any other questions on

fun? um so the last item that we have, as we have every month is the planned value report. um and in the spirit of transparency, um i do want to bring something to the board's attention. um we've talked in the past about the denominator effect. and you've understood why we've been overweight. uh, private equity. um. but there is one other area that we are underway and we're underweight relative to the guardrails and that is on treasurys. um and. we probably at some point will come back to you with a proposal to maybe consider both treasuries and cash together and our exposure there. the reality is in this interest rate environment. um you can get return on cash. we're not often sitting on cash . um but the way that we are going to probably manage it going forward is to think about cash together with treasuries because those that those are the

assets that we're looking to get liquidity for. so while we are a little underweight when we look at what we have on cash balance at any given point with the treasury's, we're still well within those those guardrails. so we will come back to you on that. but i wanted to just note, uh, that because there's a lot of numbers on this page, and i wanted to make that clear. any questions on that. it's a curious then how do you count the numbers because in the last few years we get that large of influx of cash in july. 85 but that then allows the team to use that cash is i, uh, collateral to use derivatives like leveraging. do you count it that way when it's invested that way, or is that that minus number? perhaps we can go through all the math. maybe i'll flying, but we're we. we do calculations for herself that look at cash cash.

that's collateralized. what's your cash? what's caches collateral? what's unencumbered cash? so all those things go into the equation when we were getting cash in, for instance, in the end of june, we then say we're going to get this much cash. we predict in the next two months we're gonna have these outflows of capital calls and then we make a decision based on whether or not we want to equitized whether we want to keep it in cash treasuries, etcetera. that's based on the market environment at the time of the flows. okay, thank you. any other commissioners. any other comments, madam c o c. i o yes, in this instance c i o it's everything i had given the item . at different hats should just put him on when he tried item comes up. okay, great. any member of the public wish to come in on this item, seeing non

public comments closed. secretary please call the next item number 14 action item recommendation to hire wilshire. advisors llc for general investment consulting services. chili chili, usually. chile bingo. he called it off my cold. are you gathering? there was a little cold, right? a. j is not . he's got that big beard. please go ahead. turn the light off. it's weird. it's counter. it should be off. counterintuitive yeah, it's like the light off and then the microphone comes on. all right. um. october 2022 retirement board meeting the retirement board approved staff's recommendation. rfp for general investment consulting services

to support the board and staff. um. in in general investment consulting reviews. steph conducted rigorous, multi face due diligence process, including review and braiding of the rsp responses focused virtual interviews intensive on site due diligence. multiple demonstrations of analytical and performance tools. reference checks, interviews with first ceo c i o and lastly the room sorry. yeah yeah, sorry. we would have just lost quorum. go ahead. i'm sorry. go ahead. and the last, uh, phase of the rfp review was at the april board when the semi finalists presented the second finalist, um, presentation, uh, was from

paris and wilshire. there is presented a differential approach to asset and liability study and wilshire stood out with its approach, um, robust approach to capital market research. um. analytical in decision making four strategic asset allocation and strong risk management and e g practices. so based on the results of this five ft screening process staff recommends that the retirement board approved the hiring of will shoot visors. for spurs general consulting investment services. um, we're here. to take any questions from the board. any questions, commissioners. yes you do. do commissioner driscoll. um. i'm

going to support the recommendation, not because it's resigned to it. i mean, it's obviously the best choice. um no offense to the virus in any pc and the other bidders. because we always have the choice of not hiring anybody and going back to the field. but again, and sometimes i felt that way based on when i review it, but these are strong candidates will sure being the strongest um, there's always and item would there have been one or two more pieces of information that could have been gathered. that would even prove that point further, for example, how well have they performed as the ceo for some of their clients because that would capture a whole bunch of other decisions, some of which would align with what we're expecting them to help us with. it's not necessary, but it's when you read stuff, it always makes more questions come up. there's always that quality issue. the time it would take to get the answer questions are not worth it. it's not going to change the

basic decision or the basic recommendation. so the fact that will share is very. technically advanced compared to their peers have invested a great deal which will be benefit of us in a sense where a more sophisticated investors who can really tap into those resources. i do. staff has already been doing it . i think now you're going to be given that even a better greater tool that you use. thank you for warning. you always just drives us to expect more work from you, but that's the way it goes. the thing i was concerned about the with wilshire since they have a corporate culture. they do have a low turnover of their key people that were interested in but the fact that their new owners took them over less than two years ago. well that sometimes it takes a while for things to change. no. one with investment bankers are taken over by somebody, not from the industry. every time and i'm talking about five or six cases where it's blown up on us, and we wind up having to fire the manager. we hired big and it relates to an ownership change.

um do you have any doubts about this going forward because the lead consultants are been there with him. 18 20 years will they stay? very good. very good, uh, consideration, commissioner driscoll. and we did debated a lot. um and we felt that one we hire wilshire. we also work with their research team with their data analytics team with their risk management team, not just one consultant representing the relationship, so we feel that while they presented very good, um, team on the consulting and client front front facing. we also feel that there um. cool expertise that supports this consultant. is, uh, is very strong. okay there's a slightly difference. um. use the word outside allocation development.

well, shares was robust. viruses was everybody fraser used but another positive phrase but different my question comes back. to the strength and weaknesses of at least the two finalists. they have slightly different strengths and weaknesses, but it particularly from your reference calls to the former clients. did you pick up any weaknesses that are important such that? not that you wouldn't recommend it. but if that was a weakness in an area that we need help do you have a solution or substitute or something like that? both were referenced very strongly and we again that's why we felt very comfortable bringing both semi finalist to the board. uh, in april. we do feel that the support team is much more a bust on the, um will show team and the other thing is the wilshire came up with that kind of total proposal, which is more, um, competitive. so let me re ask my

question to make sure i understood your answer, do you? did you did? detectives cover any weaknesses in wilshire that it's okay there they they run their own company, but that that's a service. we need to make sure we cover another way. no very complete. okay? complete for our recommendations from the rfp, and actually, they offer one beyond what we set out in the rfp. okay if i may add to that, um not doesn't comment specific to wilshire, but to our process. part of the reason that we separated out the public market consultant from the total fund consultant was to make sure that we got the best of both and didn't have to make a trade off . uh um to get the best board consultant, but maybe it wasn't

the best asset class consultant that in some ways, i think, um just knowing the industry that that sometimes the sticking point where you're you're making the biggest trade off. and so this gave us the flexibility and bidders could bid on one they could bid on both. so we've resolved that issue through the process. uh, that's good. i'll say i proved that point by we had to fight to unbundle certain things along the years when we unbundled, for example, are deferred compensation program. the money went right back to our members. the money we save significant amounts of money were safe. so this is our money saving thing is are you getting the help? the expertise. we need to help you do your job better because when you're doing it cutting down risk making us more money, adding value. that was the objective if you did that great. so i put it this way. then i did ask a question when they were here. i read it again in their rfp. their approach to

developing their understand for them to understand our risk tolerance, which we have to understand. i look forward to that. piece of the work when they're on board. that's one two. um i look forward to access to their library, which they've made said they would make available to all of us. and three they will let you please. if you asked them, or they insist on doing some editing of our investment policy statement . great but please make sure he's presented to us in the same format. that ms. romano just presented all the terms of reference. it's so much easier to read. last time there was a problem. there's so many changes you couldn't keep track of all the changes just makes it hard for us to read and vote and approved. if all these things lead with meaning, hiring wilshire helps and leads to our investment team. improving the process. and making better decisions. it's a great recommendation. thank you. okay.

the other questions. commissioners. that concludes my questions. great. the other part of your presentation. it's a recommendation, so we expect to vote to approve. second. think public comment on this item. seen them from closed. um motion has been made by commissioner. alphonse secondary commissioner driscoll. those in favor say aye, aye. supposed seeing now. motion passes menace secretary next item. number 15 discussion item 2023 annual liquidity management update. we want to show. you sure?

yeah. oh, let's take this taking care. movement is good and share. it doesn't show, though. see it on the screen. do you see the

presentation? let me do mine. thank you very much. okay? so um, we'll walk through the liquidity management . i see. okay? liquidity management, um isn't any well, including the management is continuous process for staff, and we also present an annual update to the board. and so this this is an annual update. there are lot of details here, however, i'd like to first get a broader view about liquidity management process and then, um just highlight the key takeaways. so we'll start with

the overview of the process. spurs liquidity management process is outlined in the three pillows we review. in mortal, the cash flows from private investments. and this is very important because first has a very large private investment portfolio, private equity, private credit and real assets and the this is mostly a portfolio that invests in what's called drawdown vehicles where the managers can draw down. um distribute cash opportunistically, so we need, uh, we actually put together a number of models that help us. predict and forecast the cash flows of our large private portfolio, so that's killer number one. the third pillow, um, that feeds the into this process, um, and in the right is

the forecast of our pension obligation. this is where we work very closely without actuaries. um and also last um. presentation you've heard from an abc when we reviewed the liability side of the asset and liability study. and what we always look at is not just the base case, but also the stress cases. um under, uh, different conditions, and so then we can collect all those forecasts from , um, the. yeah. sh cash flows to and from private portfolio. as well as expected pension obligation and review our liquidity position again. this is the ongoing process, but what you see in this report is the annual report of this expectations, so that's when we review how much liquid acids do we have? what what is the amount

of this assets and under different stress conditions and do we have enough to meet different? um, different, um. positioning of the portfolio. and here i am not going to go through all of the details. i'll just get the highlight. and if we go to page four, um that's first trust has adequate liquidity to meet obligations on the different stress conditions and we considered multiple stress conditions. i'd like to kind of zoom in and what's different in this report versus the kind of the key takeaway from this report. probably have sufficient liquidity. ah to meet . um our obligations, current liquidity, environment and private markets are stressed. and we wanted to calibrate and understand house trust, is it? are we close to financial crisis

or 2008, which was one of our kind of higher, stronger stress scenarios. are we in? well we're the assets are not growing and managers are kind of backing off, which was the stress case that we called no growth. um and that's where we worked very closely with our partners and our consultant, cambridge associates. um they are our consultants for all private investments. and we're able to work on, um castaic model to valid projected cash flows. and so the court outcome there was that the gfc type scenario is a really big, it's just scenario. more like one in 50 year, maybe one in 20 year type scenario, and we're not there. and i would , um, less, um stressful if you

will assist scenario, which is the no growth scenario is e lower quarter tiles, types of stress, so it's a one in five europe one in four year a type of scenario and that's where we are. that's where we were managing to last year. when we evaluated the cash flows in 2022 2 in from our private before leo , we've seen that actually the liquidity conditions where below this, um lower court child, and they were closer to one in five years, one in six years event. and so what we've done, uh, working with cambridge is to make sure that currently we're managing liquidity. closer. to 15 percentile, which is one in 71 in eight years scenario, and that's where that that's kind of

calibrating this to castaic modeling help us calibrate oh, you know, it's stressed. we know we're getting less distributions , but it's not gfc. it's also not kind of the no growth stepping back. we need to have can you guide opposed to how are we going to manage our liquidity day today and plan? point forward because it affects the pacing annual commitment. piecing it affects the projections of the asset allocation. so that's the key takeaway, and we're very grateful, um, to cambridge, who provided this sophisticated model work closely with us and frankly, everyone here, um, helped cambridge because there is a lot of details, so that's that's the big piece. what's what is it that we're doing to address that? um that outcome of the stress. uh environment, liquidity environment we are

recommending well, we're we're. together with the c e o. c i o as well as um, cambridge consultant and stuff. we're reducing annual commitments. to private investments by about 10% to be precise. 11% 350 million. so last year, the budget the annual commitment budget to private investments in aggregate was 3,000,000,003 point. oh five billion. this year. it's 2.7 billion, so it's 350 billion less in aggregate and it's across all three private asset classes, private equity, private credit and real assets. so these are the steps that we're doing another reason we are comfortable, um, managing to lower commitment. is what we reviewed. i thought with the board lot, uh, during april

asset and liability study that. this. this tension obligation piece is growing right? so the net outcome do you two out of the plan? pension payments is expected to increase. as planned, matures. and as a result, we need to, um the liquidity is a logical situation and we need considered decreasing allocation to privates. so this took a sin durations kind of the maturing plan and, um, challenging but again something that we manage, but liquidity liquidity in the market for the last 18 months. lead to reduced pacing. these are the highlights. we do have cambridge associates on the line. if you have any questions on the details i appreciate there are a lot of details in the report. and it's our annual

um, report to show you the, um the adequacy of liquidity and liquidity management framework. questions all right discussion item. it is a lot of great and so please feel free to reach out . i know there is a lot but the this is something that we've discussed regularly. um and that's why i felt that in and we discussed it with alison. we could assortment. make sure thank you, joe. thank you couple of questions. it's just to make understand that some of these things lead to affecting another major issue. it's good that cambridge worked with you projecting capital calls i would understand just a routine thing for them. but what about all the

other issues about did you use any pc at all? we didn't use any pc with asset and liability study that we presented cash projections. cash projection rule will work closely with cambridge capacity or skill that well, she would have yes. yeah and a pc also incorporated as we presented we, we work very closely with an abc to incorporate cash projections, but we ultimately took what cambridge yeah, that's because cambridge is our consultant and plugged it into an abc s, um, snm liability study. i didn't know how good they are an economic forecasting now. so it's fine to use them. they're also a great source of information. the question, then becomes this using that below 25% title assumption. uh, that's a assumption of where we think the economy will be which drives the market. the way that was

developed was that developed by cambridge for us or jointly or how did you vet that? that's a that's a major decision. it's a major. it was done. uh, with cambridge developed the assumptions, but we worked very closely with them on reviewing the assumptions reviewing the mortar link and the data that leads into that led into the stochastic process. question. did you accept? mm bridges, workers, you guys really tear it apart and make sure we agreed. we had multiple iterations and we also had reviewed at our annual review of, uh private investments and, uh, spend hours at least an hour. with with with c o. n c i o the next issue is then. that was with some of the updates with the asset managers. um and i figured out how you labeled. all the securities at three levels. mhm. okay, um. but

some of these shifts would automatically lead to lowering the assumption we make about the rate of return. i know we're going to be doing that going forward but is or have already gone that far ahead to realize it doesn't look like much of what's uh, $350 million reduction in the private areas doesn't seem like a big would have moved the needle, but maybe it would have we gone that far is that that's gonna what we're gonna be working on the next couple of months. if you look at the projections are like a 10 year projection, and so there is a lot of there are a lot of assumptions going on in here. and so we felt that at this point where we are, we're comfortable calibrating it by 10% but we are monitoring it. and also the other thing. commissioner driscoll is that that this is what we plan. would actually we also need to see what the market gives right because many managers actually pushed their fundraising. and so even though we had the funding, we prefer to not spend all of it. this is kind of the higher estimate. and if it could also

add, um, just so it's clear to everyone. um it doesn't necessarily immediately changed your return expectations because you have to take into account if um, distributions slow and capital call slip. we still have, for instance, an overweight to private equity, so slowing down. putting a new money doesn't necessarily radically change in the short term exposure to these asset classes and our return assumptions. um i do understand that. um, that's why there's 7 to 10 years. when you make a movie takes it will take a decade for it to be reflected at the same time. when we make that assume greater return assumption. we're looking that far out as well so it will be affected. the cash flow effect will be in the future, but we have to look that way when we come back and discount all that liabilities today, so they all go together. absolutely numbers are basically for one year, they may go up or down further year from now. so thanks for walking the process. i'm just reviewing

the steps. and understand. great. thank you. anna includes my question. any further questions. comments just one quick question. so ana as we move forward, and to do, the allocation will go back over this process again right before them because with wilshire? yes, because this data point will change for sure. based on the markets. i mean, i feel good that you guys feel comfortable with where we are now and based on the data we have in front of us, but i know as a market moves this these assumptions will change and we keep breathing, validating absolutely very fair point. okay that that's yeah. i'm glad that you're on top of it, and i look forward to getting the updates. liquidity reasons. we must constrain some of the investment opportunities for very logical reason, then plays out in the assumed rhetoric. that's true. another thing the balls. anything

further questions? comments? um as you said himself. so a lot of data here but well presented. thank you. thank you. but your branches support system back there. should also sure thank them. their assistance. george staff. to be sure help. we need to ask for public comment before we well. comments on this, adam . hearing none. yeah, i would come. it's closed. can you call the next item place? item number 16 discussion items. san francisco deferred compensation plan quarterly report. cuban 2020 and if i may make a elite

in comment, i know diane and timur are prepared to present but i wanted to take the opportunity on this agenda item to share with you some fantastic news. um the plan sponsor council of america recently announced that 2023 signature awards for retirement plan education. and under the leadership of diana and her team and with the support of voya, the city and county of san francisco with boy was, um, honored with second place in the events and workshops category. so thank you, diane, uh to the entire gc team savoia for that. done well done with that. i will turn it over time. no, i'm turning you over. how are you? thank you so much. vice president and thank you, ceo. c i o romano for those words. i'm glad you said something because

i don't usually boast about our achievements. but that is something that we are proud of. we send steve moyer, who's our program manager out to florida to pick that up. and we're very, very excited. so thank you, um, just for context that is for our october um, national retirement security month. so that it always tends to be a very, very busy campaign, and we're already working on that for this year after we wrap up our targeted fund campaign, which you guys are well aware of, so, um, with that said, i'd like to begin the quarterly report if it pleases the board. excellent do you get do you guys share that with our participants and beneficiaries? i have not. but we certainly can . i think it's good. you should cheer it, right? yeah. we actually have a list of a bunch of plaques that i put considering placing around our office. just to continue to motivate staff and to showcase you know the excellence of our work, so thank you for that support. so today commissioners

. we are presenting the quarterly report, which is our most comprehensive update, and it covers the four main pillars of the plan, investments, marketing operations and the record keeper up. first is the investments category. i'm happy to report that the stable value funds crediting rate for q two has increased by 12 dips. 22.56% this rate is guaranteed for the quarter and will reset in q three. stable value currently holds over one billion in assets . and as we have all seen the recent headlines the collapse of credit suisse silicon valley signature bank adverse republic has caused great concern for many investors. however i'm pleased to report that the stable value fund had no exposure to three of these banks. um and the only exposure was 10 pips of credit suisse with no 81 exposure. overall bank holdings are also limited to 11% of the stable value

portfolio across 40 issuers, and any impact will be reflected in the q three crediting rate, which will be announced next month at the june board meeting. i've also attached for your reference galleries. q one commentary for additional reference and insight on the past quarter. now i'd like to turn it over briefly to mr greg sherman, our investment consultant from kalin to provide a brief overview on this past quarters investment performance as you can see on the screen. this quarterly activity report is located right after the quarterly memo in front of you, and with that, mr anchorman, can you please begin? thank you. and good afternoon. just some brief comments that after a very challenging 2022 were both stocks and bonds were negative, with the exception of the stable value fund was positive. the first quarter of 23 came very robust, particularly the large cap growth, which was the

biggest underperformer last year, bounced back very nicely in the first quarter. you could see it was up 16.87% a short time period, but outperforming the index. other areas of interest the fixed income market up close to 3. so a very nice bounce back from the previous year and looking at small cap in international, some of the value managers trailed their benchmarks in the first quarter after very strong relative results last year, so again, it was a bit of a yin and yang between last year and this year, but by and large all those some up to be positive results for the target date. which really dropped on many of these core offerings to the participants of the plan, and you can see in the year to date column for the target date funds. they're all outperforming their respective benchmarks. and again, that's a great testament to the strong active managers that you employ

in the plan. happy to address any questions, but again, i just wanted to leave some high level summary comments. any questions? that is the. that is the investment portion. i'd like to move on to the marketing pillar. there's no questions there. okay thank you. i'm happy to report an update on our target date fund manager transition as you know, t. rowe price was selected as an incoming targeted from manager and a target launch date of july. 1st a direct marketing mailer was dropped via usps to all targeted fund participants yesterday. to inform them of this change, and the benefits include enhanced asset allocation. new target date fund vintages for retirees. increased bond diversification, a new tactical asset allocation to respond to market movements, all at a lower cost as a result of

the glide path, effective july 1st. an announcement of this will appear on sf dcp dot org tomorrow and a follow up email to target date fund participants with an email address on file will be sent next week. in addition, all these participants have the option to opt out of automatic re enrollment, which maps participants into the target date fund, according to the established 65 year old retirement age chart. for instance, safety personnel tend to retire earlier and as such, they would choose a targeted fund that corresponds to retirement age date age of 55 instead of 65. we have trained the field and the counselors to not only be prepared to explain the transition and its benefits but are actively engage police fire and sheriff with their option to opt out. we've sent out department emails to those groups and counselors will be available at select locations to assist and answer any questions with regards to this transition.

we will also be hosting and in person targeted funds seminar on june 8th here in this building on the fifth floor, as well as two webinars on june 13th and june 20th for those participants who choose to attend remotely. webinars dovetail nicely into the next pillar if there's no questions on marketing operations. we are excited to announce our new webinar schedule. going forward sf dcp webinars will be offered every wednesday from noon to one with rotating topics weekly. you can find webinar details in the memo , and they'll include topics on tax strategies to raise their retirement and sf dcp tools and web demonstrations. any c csf employee can attend these helpful webinars by simply registering at sf tcp .org. and also attached for your reference

is the sf dcp cuban newsletter. that is towards the end of your materials. um i'm proud to report that this newsletter has the highest open rates of 65% since we've transitioned to voya for context, this open rate is very, very high, even for us because we benefit from higher open rates given are engaged, participant based for context, the email open rate is nearly two times and all industry average of 35% so clearly this newsletter hit home with participants and it's possible that the subject title also grabbed their attention, which was tips for your sftp account. um we also had seller conversion rates of over 10% conversion mates basically track when a receiver clicks on something within the male, so that's they were actively engaging, and that is 10 times the industry average of 1. so we are very excited

about this because the newsletter covered many interesting topics, including taxes, as we're approaching taxis in as well as the increased rmd age to 73 as a result of the secure two point, oh legislation. and a brief update on secure 2.0 on that topic as the board has been informed earlier this year staff is tracking and monitoring the secure act and prioritizing the mandatory provisions over the optional first. staff has continued to liaise with similar sized government plans to gauge their reactions and implementations to the secure two point. oh provisions. the plan. sf dcp is also part of magda, which is an acronym for the national association of government defined contribution administrators. the role of magda is to support government plans by carrying our voices to capitol hill when it comes to legislative changes that impact plan sponsors and the retirement outcomes for our employees.

magda has identified several areas in the secure sorry errors in the secure two point, oh legislation, including one that could be read to eliminate catch up contributions and tire lee. so nagged a has been working closely with the hill and has suggested a regulatory fix to the i. r s and the treasury. both have agreed to remedy the problem could not commit timelines of legislative action , which, as you know, is generally a very long process. so the situation is still in flux. we will continue to monitor the situation and briefed the board as needed, particularly on catch up contributions as well as the roll up of the mandatory rollout of the mandatory roth catch up contributions that are supposed to go into effect at the beginning of next year. a lot of government plan sponsors are requesting more time to get their affairs in order to properly track what the income

levels are. in order to qualify participants for those rock ketchups. i'll stop there if there's any questions on operations before moving to record keeper any questions? nope. proceed so you have questions, suggestion. okay? it's more like the previous subject, but whenever the stable value return ship shows below the treasury, which it is right now, people start asking serious questions. this is a good graph , but again a longer period will show over time. the stable value tends to be above it. just have that graph already in case the complaints start because we're gonna be in this situation for a good 12 months or longer. takes a while for the stable dragon suggestion. yep and then you're absolutely right. because in down markets, then it's you're absolutely right. um i think in in purposes for the memo, we wanted to make sure that we captured the most recent, but

that is good. good point and good for reference, actually, even in the future. so finally, the last pillar moving on to the record keeper. voya has rolled out some new security features that include mobile phone authorization and real time validation, with cybersecurity becoming increasingly more important. we want to do our best to help safeguard our participants assets. one of the easiest ways sf dcp participants can protect themselves is to register their account online. this is because failure to do so allows cybercriminals to easily assume your sf dcp online identity. this step is also important because voya has offered the s f d. c p r plan. they're safe, guarantee safe stands for safe accounts for everyone. voya safe program will restore the value of participants account if it is compromised by unauthorized activity, but it is subject to the degree of recommended safety

actions of participant has taken in advance. one of them being to register your account. so to register your account simply go to s f d c p .org and click register now. question. um, i have a question. how much of the data where is the data resides? the majority of the participants that does it is it in our place or is it in go ahead or. no question of that would be with us primary correctly. questions. thank you. my question is about some of the other safety requirements. so you mentioned one was registering an account. but there was some other steps that participant would need to do as well. do you know of him? what those other steps are? no, i don't. but i did actually include the website in the memo on where we could find those. and if you have the memo before you, i believe it is located at

apologies. i don't have that with me right now, but it is basically located at www dot voya .com slash articles slash safe dash guarantee. i'm sorry i got turned around and the pages which paging on page seven, and my memo for the record keeper, pillar. thank you. certainly. there are also some tips that the d o l provides for investors as well and that is located on the deal website. that is something we may consider sharing at our next meeting as well. so properly armor participants with what they can do. and that concludes my quarterly report. i'd like to now turn it over to voice mr bishop besten, who will walk the board through our quarterly board report. we are going to show it on the screen. mr. ackerman can you assist? thank you. thanks sam. thank you, greg

. i'm just gonna briefly to cover a few slides, uh, highlight the activity and then happy to address any questions that you might have so first off , we can go to slide four. i just want to cover the activity or increases in plan participation that we include the number of participant accounts. we received over the first quarter of the year. this really this kind of continues ongoing trend that we have. although the data within the slide actually shows a couple of periods where there's a month data captured, we're actually seeing positive quarterly change for this plan going back over two years now, so total accounts added to the plan during the first quarter was 212 at this point. one slide five kent just to talk a little bit about planned assets and the growth in the plan itself as greg mentioned positive activity within the markets in the first quarter that resulted in additional growth within the plant assets. assets rose over 6% during the quarter when you look back over q four for a total of $4.5 billion in plant out sets at the end of the

quarter. on slide six. just want to briefly talk about the asset growth in the quarter, and particularly the cash flow that we experienced as well. cash flow numbers can vary from quarter to quarter. as you see on the lower right hand side of the slide, but the assets when you look at it from a quarterly perspective, it was most positive cash flow quarter we've had since q one of 2021. and actually based upon last year's activities, although it was more we can attribute most of that growth, probably to increased contribution rates as we move into the first quarter and the activity of the rs at the end of the year. moving on just to look at quickly at slide 29 to look at the counselors activities for the quarter again if you might recall during the last quarterly meeting, which i reported on, we did have decreased activity when we looked at q four and q one, though all activity that key categories whether that's one on one meetings, group meetings, virtual meetings a group meetings that were going on

being held, also. key event that this activity is attributable to unlike you know when we're in q three looking at you for looking at the activity of national save for retirement month. this is actually more dr. driving of activity within the activity of our participants looking to push them to be on site more carrying out more departmental and location visits, making sure that they're using proper use of their time and then also trying to find new ways in which to highlight their availability to participants in the plan as well. and what's that? i will pause and take any questions that you might have. questions, comments. 0 16. 16. it's not. you done? yes that concludes my report. great report. thank you . i love the way you put it

together. you always thanks for being running a meeting. very nice. thank you. thank you. thanks so much for your presentation. i read it in advance and went over the numbers. sorry i had to step out of the room. but any other comments commissioners we can entertain a motion. thanks that's discussions. okay, great. sounds good. any members of the public wish to comment on this item. seeing that public comments close. thank you so much very much. madam secretary , please call the next item item number 17 discussion item retirement board member of the order. okay i will say that but missionary to this time, the bond this is the good of the order the water. thank you. i agree with any other any other because i have a couple of things i want to say since does anyone have anything? okay so

one thing i wanted to update focus on. i know that there we had some discussions on credit for prior service as it related to, uh, those that were veterans , so we have a piece of legislation at the board of supervisors. that's what stephanie and myself are sponsoring to clarify that we're going to bring that forward. we believe it will have strong support. so that will that will pass shortly, and folks updated. what. and secondly, i know we had some public commenters here today. we're not responsible. i do want to sing them asked the to look into some of the information. we were given some of the reports from staff follow up information on that. because there's things that you can walk the line and follow the law to the letter, and then there's other ways that you can be more

sensitive. and again. i understand that we're looking at a material. assessment perspective. um, seems to be just based on my experience. there's there seems to be their potentially seems to be some issues that i'd like to have asked the ceo ceo to follow up on that. um and we will excuse me minutes here. it's also practices based on statistics. and there's local laws in virginia. there's that need to be followed. and there's possible based on the overall market, then common testimony today that. i found disturbing um they gotten emails in the park, so i just feel like we need to look into the matter further. that's all i'm prepared to say at this moment any anything. oh, commissioner thomas question your first item. um items that european with

surprise yourself exactly to require a ballot measure or is that something can be done right at the legislative? i don't know if the city attorney wants to illuminate. i had a little more information. it's an amendment of the administrative codes that doesn't have to go in the balance. thanks. thanks. anything else? folks, okay, i don't have any. anything else. hold on. we're not are there any members of the public? that's right. take your microphone away any any members of the public that wish to comment on this item? seeing no public comments . close okay. meeting adjourned.

sf gov t v. san francisco government television.televisio

>> in 1948 swensen's ice cream used to make ice cream in the navy and decided to open up an ice cream shop it it takes time for the parent to put money down and diane one of the managers at zen citizen in arena hills open and serve old-fashioned ice cream. >> over 20 years. >> yeah. >> had my own business i was a firefighter and came in- in 1969 her dad had ice cream and left here still the owner but

shortly after um, in here became the inc. maker the manager and lead and branded the store from day to day and in the late 90s- was obvious choice he sold it to him and he called us up one night and said i'm going to sell the ice cream store what you you talking about diane came and looked at the store and something we want to do and had a history of her dad here and growing up here at the ice cream store we decided to take that business on. >> and have it in the family i didn't want to sell it.

>> to keep it here in san francisco. >> and (unintelligible). >> share worked there and worked with all the people and a lot of customers come in. >> a round hill in the adjoining areas loved neither ice cream shop in this area and support russia hills and have clean up day and give them free ice cream because that is those are the people that keep us the opportunity to stick around here four so many years next generations have been coming her 20 er thirty or 40 years and we have the ingredients something it sold and, you know, her dad said to treat the customers right and people will keep on coming back and 75 or 74 years,

you know, that is quite an accomplishment i think of it as our first 75 years and like to see that, you know, going into the future um, that ice cream shop will be around used to be 4 hundred in the united states and all gone equipment for that one that is the first and last we're proud of that we're still standing and people people are you tell people it's been around in 50 years and don't plan on

>> this is one place you can always count on to give you

what you had before and remind you of what your san francisco history used to be. >> we hear that all the time, people bring their kids here and their grandparents brought them here and down the line. >> even though people move away, whenever they come back to the city, they make it here. and they tell us that. >> you're going to get something made fresh, made by hand and made with quality products and something that's very, very good. ♪♪ >> the legacy bars and restaurants was something that was begun by san francisco simply to recognize and draw attention to the establishments. it really provides for san francisco's unique character. ♪♪ >> and that morphed into a request that we work with the city to develop a legacy business registration.

>> i'm michael cirocco and the owner of an area bakery. ♪♪ the bakery started in 191. my grandfather came over from italy and opened it up then. it is a small operation. it's not big. so everything is kind of quality that way. so i see every piece and cut every piece that comes in and out of that oven. >> i'm leslie cirocco-mitchell, a fourth generation baker here with my family. ♪♪ so we get up pretty early in the morning. i usually start baking around 5:00. and then you just start doing rounds of dough. loaves. >> my mom and sister basically handle the front and then i have my nephew james helps and

then my two daughters and my wife come in and we actually do the baking. after that, my mom and my sister stay and sell the product, retail it. ♪♪ you know, i don't really think about it. but then when i -- sometimes when i go places and i look and see places put up, oh this is our 50th anniversary and everything and we've been over 100 and that is when it kind of hits me. you know, that geez, we've been here a long time. [applause] ♪♪ >> a lot of people might ask why our legacy business is important. we all have our own stories to tell about our ancestry. our lineage and i'll use one example of tommy's joint. tommy's joint is a place that my husband went to as a child

and he's a fourth generation san franciscan. it's a place we can still go to today with our children or grandchildren and share the stories of what was san francisco like back in the 1950s. >> i'm the general manager at tommy's joint. people mostly recognize tommy's joint for its murals on the outside of the building. very bright blue. you drive down and see what it is. they know the building. tommy's is a san francisco hoffa, which is a german-style presenting food. we have five different carved meats and we carve it by hand at the station. you prefer it to be carved whether you like your brisket fatty or want it lean. you want your pastrami to be very lean. you can say i want that piece of corn beef and want it cut,

you know, very thick and i want it with some sauerkraut. tell the guys how you want to prepare it and they will do it right in front of you. san francisco's a place that's changing restaurants, except for tommy's joint. tommy's joint has been the same since it opened and that is important. san francisco in general that we don't lose a grip of what san francisco's came from. tommy's is a place that you'll always recognize whenever you lock in the door. you'll see the same staff, the same bartender and have the same meal and that is great. that's important. ♪♪ >> the service that san francisco heritage offers to

the legacy businesses is to help them with that application process, to make sure that they really recognize about them what it is that makes them so special here in san francisco. ♪♪ so we'll help them with that application process if, in fact, the board of supervisors does recognize them as a legacy business, then that does entitle them to certain financial benefits from the city of san francisco. but i say really, more importantly, it really brings them public recognition that this is a business in san francisco that has history and that is unique to san francisco. >> it started in june of 1953. ♪♪

and we make everything from scratch. everything. we started a you -- we started a off with 12 flavors and mango fruits from the philippines and then started trying them one by one and the family had a whole new clientele. the business really boomed after that. >> i think that the flavors we make reflect the diversity of san francisco. we were really surprised about the legacy project but we were thrilled to be a part of it. businesses come and go in the city. pretty tough for businesss to stay here because it is so expensive and there's so much competition. so for us who have been here all these years and still be popular and to be recognized by the city has been really a huge honor.

>> we got a phone call from a woman who was 91 and she wanted to know if the mitchells still owned it and she was so happy that we were still involved, still the owners. she was our customer in 1953. and she still comes in. but she was just making sure that we were still around and it just makes us feel, you know, very proud that we're carrying on our father's legacy. and that we mean so much to so many people. ♪♪ >> it provides a perspective. and i think if you only looked at it in the here and now, you're missing the context. for me, legacy businesses, legacy bars and restaurants are really about setting the context for how we come to be where we are today. >> i just think it's part of san francisco. people like to see familiar stuff. at least i know i do.

>> in the 1950s, you could see a picture of tommy's joint and looks exactly the same. we haven't change add thing. >> i remember one lady saying, you know, i've been eating this ice cream since before i was born. and i thought, wow! we have, too. ♪♪ >> you are watching san francisco rising with chris manner. today's special guest is carla short. >> hi, i'm chris manner and you are watching san francisco rising the show about restarting rebuilding and reimagining the city. our guest is carla short the intric director of public works and here to talk about the storms we had and much more.

welcome to the show. >> thank you for having me. >> great to have you. let's start by talking about the storms that started beginning of the year. there fsh a lot of clean up recovery and remediation. can you talk about what your team did? >> sure. the 17 inches of rain we got starting on new year's eve through the first 2 and a half weeks of january made it one of the wettest periods in recorded history for san francisco, so as you imagine we had a lot of work to do. we gave out more then 31 thousand sand bags, we were operating all most non stop from new year's eve to san francisco residents and businesses out of our operation yard and frequently working thin rain so it was a beautiful dance to watch. we had a corio graphed where people drive in the stop and load with san dags and get on it way so thats was the most visible thij weez had to do. responded to all most a thousand calls for

localized flooding for the corner of the street with catch basin. our team trying to address that. we clear and pick up anything to block and it hopefully get the flooding to go down. if we are able to respond we call in the san francisco pub utility system and are responsible for the sewer system under so they bring ing vack trucks that vacuum out debris inside the catch basin. we also dealt with lots and lots of calls about trees and tree limbs down. i think we actually faired better then some other places in terms of loss of full trees. we did have whole tree failures and that is not that uncumin with super satch waited soil conditions. we had over 950 calls about trees or tree limbs down. a lot of calls were about loss of a limb and we could save the tree. we are still assessing the

data to figure how many were full tree failures versus limb failure. >> also had land movement too. the great highway comes to mind. what is your approach to managing rock mud and land slides? >> that is a great question. we had 28 different slides over the course of that period. it is kind of a interesting process, so the first step is we have our geotechnical or structural engineers take a look to see is the hillside safe, do we need to stabilize it in some way or just need to do some cleanup? once they made their assessment they will recommend the next steps. often times to protect public safety we will place k rails the giant concrete rails at the base omthe slide area to make sure that any debris doesn't get on the edroway and bring ing the heavy equipment to scoop up on the ground and move off the roadway and try to open the roadway. some

cases, we will actually inject some rocks or other stabilizing forces either into the slide area or sometimes below the roadway. right now there is nothing that's unstable out there but be are keeping a close eye on the areas including the gray highway area. >> right, right. well, so talking about the storms in the city response, brings us to southeast community scepter when there is rain remediation projects going on. can you talk about the inconstruction project kblrks that is a favorite project. a beautiful new community facility. we were involved in pretty much every aspect of developing that project for the public utility commission. they were a client. we design project management and construction management and the landscape design for that project. and one thing that we included was storm water management throughout the entire

project site. so, that project encapturealize the rain water that lands on the roof and flows into the landscape where we have rain gardens so intent is slow the water down to and give areas to collect to percolate into the ground rather then the sewer system. when we have sewers that are overloaded, because our rain water mixes with the sewer treatment storm sewer system, we actually can end up dist charging into the bay which we dont want to do. anything we can do to just prevent those combined sewers from overpm loaded is a good thing and in this case allows the water to collect onsite and percolate to the ground which is the best way to manage the storm water and it is beautiful and provides habitat. i encourage everybody to see it. it is special place. >> that's great.

there was recently news about how city (indiscernible) powered by steam, which is super unusual i think. i understand public works ablgtually does the maintenance on the system. can you just talk about that a bit? >> sure. that is a unusual situation. that steam loop was actually built when the city was recovering from the 1906 earthquake. it only provides to steam about 4 buildings in civic center but that is how we keep buildings like city hall warm. the steam goes into the radiators and provides the heat. it is a old system and if you see steam billowing out of the man holes or other spaces, that is indication of a leak actually. we spend a lot of time trying to fix the leaks because it's a old system. it is managed by the real estate department and at one point they were looking

trying to replace the whole thing but think that is a massive undertaking so now they focus on making as needed repair said. we did a big repair on growth street where we spent a month and a half working on the known leaks s in the area. it is a very tight spot and have to use blow torches to seal up the leak so a intense operation and seeing more leaks on polk street so we will be out there once it warms up to fix the leaks. >> excellent. let's discuss what is the reunifiquation of public works. there fsh a proposal or plan to split off the division, called the street and sanitation. now that has been shelved and public works is going to just retain being a single entity. can you talk through the process? >> sure. yeah. the original proposal was a ballot measure voted on to split the

department into 2. it basically create the department of sanitation and streets that was really going to incompass all our operation divisions so it was a street cleaning department but encompass everything we refer to as operations. when we worked preparing for that split with the city administrator office, we found there were actually 91 what we call touch points between the operations work and our engineering and architecture side, so we really felt like it could be very difficult to split into two departments. we have so many areas of overlap. there was a new ballot measure last november to reunit the department. technically we split october one and did split in some ways. we did put on hold some of the behind the scenes things like rebranding all the vehicle jz giving everyone a new e-mail

address in the sanitation and streets department, but on january 1 of 2023 we came back together so we are reunited i want sing the peaches and purb song and think it is a good thing for the 91 areas of overlap. we making #2c3w50d use of the research. preparing for the split. looking at all the touch points and trying to strengthen the department so we are more streamlined and efficient. one of the most important component from the original ballot measure is commission oversight. we retained two commissions, the public works commission which oversee the over-all department and approve the budget and contracts. and sanitation and street commission and their mandate focus on policy and deliverable for street cleaning and basically the operation division. reporting to them regularly how we are

doing, we think will help make sure we are as efficient and effective as we can be as a department. >> that sounds great. thank you so much for coming and talking to me today and appreciate the time you have given. >> thank you so much for having me. it was a pleasure. >> that is it for this episode. you are watching san francisco rising. television.

>> asian american pacific islanders may is asian american & pacific islander heritage month about san francisco the asian-american about the history and curtain or encouragement. >> about fun and family and food. >> about all of us celebrating each other together after celebrating the cultural tradition a our future. >> showing you the regular things like the families and

connecting the japanese heritage and my heritage in hawaii and other asians around the city and world and growing up with the bay area. >> asian american pacific islanders it about showcasing the apa heritage culture contributions and full staves of music and the great diversity within the community i'm not a asian-american but have a great communication and about celebrating the stories of blood lines of apa heritage and the difficult challenges creating opportunity and building a new. >> let's celebrate may is asian american & pacific islander heritage month and victorville our writing our future for the future may is asian american & pacific islander heritage

>> good morning. the meeting will come to order. welcome to the may 24, 2023 budget finance committee. i'm supervisor chan, joined by supervisor mandelman and shortly by supervisor safai. mr. clerk, do you have any announcements? >> thank you. friendly reminder to make sure to silence cell phones and electronic devices to not interrupt proceedings. the board and committees are convening hybrid meetings that allow in person