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From YouTube: AUG 27, 2019 | City Council
Description
San José City Council.
View Agenda at https://sanjose.legistar.com/View.ashx?M=A&ID=709092&GUID=D6BEAF5B-B78C-47D9-956F-92D9817F6E5D
A
B
You
today
we're
honored
to
have
the
Khmer
Krom
Buddhist
monks
from
the
United
Khmer
Krom
nonprofit
organization,
which
is
known
as
the
kamarra
rang
Zi
temple
I'd
like
to
welcome
the
venerable
pray
charity
on
touch
and
the
venerable,
so
Binh
Minh
and
the
venerable
soap
on
audit
Khan,
who
will
be
giving
a
traditional
blessing
for
the
success
of
a
meeting
or
special
event.
The
chant
is
a
reminder
to
think
write,
speak,
write
and
act
right.
B
The
kymaro
rang,
Zi
temple
was
founded
in
2002
by
volunteers,
with
the
mission
of
preserving
and
promoting
Khmer
identity
and
culture
right
here
in
San
Jose.
In
addition
to
conducting
the
religious
services
of
the
temple,
the
Khmer
Krom
Buddhist
monks
teach
meditation
performed
community
services
such
as
blessing
newlywed
couples,
those
who
are
ill
and
performing
funeral
services.
The
temple
also
holds
Khmer
language
classes
for
both
children
and
adults
and
hosts
a
wide
variety
of
community
events
throughout
the
year
serving
as
a
culturally
rich
Kohner
store
cornerstone
for
our
Cambodian
community
right
here
in
San
Jose.
A
D
Good
afternoon
I'm
happy
to
recognize
captain
Sam
Siebert
for
his
commitment
to
saving
and
preserving
the
history
of
the
San
Jose
Fire
Department.
Captain
Siebert
was
hired
in
1946
and
devoted
30
years
of
his
life
as
a
San
Jose
firefighter.
Yes,
you
heard
me
right
1946,
as
our
mayor
mentioned,
Sam
just
celebrated
his
100th
birthday
yesterday,
yeah.
D
And
believe
it
or
not,
he
is
still
volunteering.
He
volunteers,
his
time
with
the
San,
Jose,
Fire,
Museum
and
I
know
he
puts
in
a
lot
of
hours
where
he
has
donated
and
restored
pieces
of
the
museum's
collection.
Captain
Siebert
is
the
heart
and
soul
of
the
museum,
and
is
that
an
emeritus
founder
he
has
received
the
Lifetime
Volunteer
Award
for
his
dedication
to
our
city's
fire
department.
I
invite
Captain
Siebert
to
the
microphone
now
to
accept
a
commendation
and
say
a
few
words.
B
B
B
A
B
A
E
Thank
you.
Thank
you.
So
much
and
I
understand
that
there
is
you
brought
some
faculty
from
Notre
Dame.
Do
you
want
to
come
up
we're
so
proud
to
have
you
here?
Thank
you
so
much
for
being
here
well,
I'm,
so
proud.
I
have
to
tell
you
to
be
able
to
introduce
in
and
to
be
here
with
such
a
bright
young
lady
shootie.
I
met
her
about
a
year
ago
when,
when
they
came
into
my
office
to
talk
about
her
nonprofit
first
of
all,
let
me
just
tell
you
about
her
impressive
resume.
Shoe
three.
F
E
Learning
and
psychology
she's
been
a
summer
research
intern
at
the
University
of
Iowa
for
the
Royal
and
Lucille
Carver
College
of
Medicine,
and
she
is
just
a
non-stop
dynamo.
As
we
know,
the
world
is
shrinking,
the
economy
is
getting
more
competitive
and
if
we
don't
expose
our
young
children
to
stem
the
odds,
are
stacked
against
them.
E
G
H
H
I
was
really
inspired
to
start
makers
of
tomorrow
upon
witnessing
the
digital
divide
in
my
own
community,
as
council
member
karrasco
touched
upon,
and
it's
really
been
a
privilege
of
mine
and
a
pleasure
of
mine
to
work
in
my
community
and
see
how
these
kids,
in
places
like
Sunrise
middle
school
and
Clyde
Fisher
middle
school,
which
are
some
of
the
schools
that
I
work
in
how
their
their
outlook
on
engineering
has
really
changed.
Just
by
doing
a
couple
of
hands-on
projects
and
really
having
fun
with
engineering.
H
Instead
of
thinking
that
it's
some
field,
that
they
have
to
be
scared
of
or
intimidated
by,
and
that's
really
such
a
joy
to
see
how
engineering
is
actually
making
them
more
creative
and
making
them
more
confident
in
their
own
skills.
So
I'm
very
excited
to
keep
expanding
makers
of
tomorrow,
and
thank
you
also
to
my
school
for
instilling
in
me.
A
very
service
minded
and
service-oriented
passion,
and
thank
you
for
this
commendation.
I
So
so
what
we
know
here
in
the
please
come
up
anyone
else
that
wants
to
join
us.
Certainly
any
council
members
that
want
to
come
up
with
councilmember
kamas.
That's
up
here,
joining
us
as
well.
So
the
freedom
of
religion
is
the
distinct
cherish
right
and
a
fundamental
value
in
Polish.
The
law
and
ethics
of
the
United
States
is
based
freedom
in
the
Bay
Area
we
have
a
thriving
community
of
which
I
didn't
know:
250,000
Muslims
and
over
100
mosques
and
religious
centers
in
Santa
Clara
County.
I
There
are
over
67,000
Muslims
who
make
enumerable
contributions
to
the
cultural,
political
and
economic
fabric
and
well-being
of
California
and
the
United
States.
Some
of
the
Muslim
organizations
in
San
Jose
and
the
greater
Bay
Area
are
the
South
Bay
Islamic
sation,
which
is
one
of
the
oldest
mosques
in
the
Bay
Area
and
it
and
is
a
multicultural
community
service
and
religious
organization
that
aims
to
provide
Islamic
services
to
the
community.
I
We
have
the
Shia
Association
of
the
Bay
Area
Sabah
is
the
first
established
and
largest
Shia
mosque
in
Northern
California
and
provides
religious
and
community
services.
The
evergreen
Islamic
center
blossom
Valley
Muslim
community
center
Islamic
community
of
Bay
Area
Bosniaks
Masjid
al
Russell,
and
the
South
Bay
Afghan
Islamic
community
center
all
offer
a
place
to
worship,
participate
in
community
activities
and
engage
with
larger
community
for
the
common
good.
I
The
hidayah
foundation
has
been
serving
the
poor
and
needy
in
economically
depressed
areas
of
Pakistan,
India,
Bangladesh,
Sri,
Lanka,
Indonesia,
West,
Africa,
USA
and
Canada
by
providing
food,
clean
drinking
water,
clothing
supplies,
educational
support
and
medical
assistance.
Lastly,
the
Islamic
Network
group
pursues
peace,
encounters
all
forms
a
bigotry
through
educational
interfaith
engagements
and
has
reached
millions
of
individuals,
since
its
founding
I
believe
it's
appropriate
to
acknowledge
and
promote
awareness
of
the
myriad
of
invaluable
contributions
of
American
Muslims
in
California
and
across
the
country
and
extend
to
them
the
respect
and
camaraderie.
I
Every
American
deserves
American
Muslims
are
teachers,
lawyers,
doctors,
social
workers,
tech
workers,
nurses,
business
owners
among
numerous
other
valued
professions,
as
well
as
peace
builders
activists,
entrepreneurs
and,
of
course,
politicians.
Today,
in
recognizing
August
as
Muslim
appreciation
and
awareness
month,
we
seek
to
afford
all
residents
the
opportunity
to
better
understand,
better,
recognize
and
appreciate
the
rich
history
and
shared
principles
of
Muslim
Americans.
So
thank
you
so
much
for
being
here,
our
mayor
has
a
commendation
and
proclamations
provide
to.
H
Thank
you
very
much
mayor
Sam,
Ricardo
and
councilmember
Jimenez
and
the
full
San
Jose
Council.
We
truly
appreciate
that
the
city
of
San
Jose
is
recognizing
that
August
as
Muslim
appreciation
and
awareness
month.
This
is,
after
the
state
designation
of
this
month.
It
truly
means
a
lot
to
the
Muslim
community,
especially
given
you
know
the
the
rhetoric
that
we're
seeing
from
the
top
down
and
to
have
our
City
Council
and
to
have
other
jurisdictions
also
recognized
this
month.
It
truly
means
a
lot.
H
B
Thank
the
City
Council
in
recognizing
the
Muslim
Awareness
Month.
It
started
with
the
state
and
then
the
county
and
all
the
cities.
So
we
all
really
appreciate
that
as
the
recognition
that
they
recognize.
It
is
a
Muslim
community
as
part
of
this
community,
and
we
are
all
involved
with
that
and
we
look
forward
to
working
with
all
of
you,
which
we
always
do
and
it's
a
real
appreciation
that
is,
they
recognize
that
every
month
last
year
they
did
that
and
so
there
this
year.
B
H
Can
I
ask
the
community
members
in
the
back
to
come
this
picture
I
know
a
lot
of
people.
That's
Nabila
nerf
on
I'm
asking
you
to
yeah.
We
had
actually
had
a
lot
of
people
who
had
shown
interest
in
coming
I.
Think
about
60
people
had
responded
to
our
Facebook
page,
but
then
at
the
time
I
got
changed
to
midday.
So
I
apologize
about
that.
F
A
J
A
A
F
A
F
K
Joe
Royce
city
auditor,
in
the
box,
with
Brittany
Harvey
from
my
office,
as
well
as
Julie
Cooper
from
the
Department
of
Finance
here
to
present
our
audit
of
employee
reimbursements,
strengthening
and
streamlining
the
reimbursement
process.
So,
like
other
organizations,
the
city
reimburses
employees
for
expenses
they
incur
while
conducting
city
business.
K
Common
expenses
include
training,
food
and
beverage,
mileage
parking,
professional
memberships,
licenses,
uniforms
and
supplies
in
2018,
reimbursements
to
employees,
totaled,
seven
hundred
and
seventeen
thousand
dollars
for
over
seven
thousand
individual
transactions,
total
reimbursements,
have
remained
fairly
stable
over
the
last
five
years,
with
the
large
proportion
of
expenditures
for
training
and
professional
development.
The
objective
of
this
audit
was
to
assess
employee
reimbursements
for
appropriateness
and
compliance
with
city
policies,
so
we
audited
employer
reimbursements
in
response
to
a
request
from
the
city
administration.
K
We
had
two
findings.
The
first
finding
was
that
expense
reimbursements
were
generally
appropriate,
but
some
processes
can
be
strengthened
so,
while
remorse
reimbursements
were
generally
appropriate
in
any
compliance
study
policies,
we
noted
some
areas
where
we
can
make
some
improvements.
For
example,
in
2018
some
employees
received
mileage
reimbursements,
even
though
they
may
not
have
had
a
city
driving
permit,
which
is
a
requirement
under
city
policy
for
such
reimbursements.
In
some
cases,
employees
had
not
complete
a
required
tri-band
defensive
driving
training
to
receive
the
permit.
K
In
other
cases,
the
city's
tracking
of
employees
who
had
completed
the
training
was
not
accurate,
also
Department,
timekeepers
tink
timekeepers
did
not
always
appropriately
review
mileage
reimbursement
requests
prior
to
approval.
So
we
have
recommendation
that
the
city
reconcile
and
better
track
city
driving
permit
holders
in
the
city's
human
resources
management
system,
ensure
all
relevant
employees
obtain
the
city
driving
permit
and
notified
timekeepers
and
time
improving
supervisors
of
their
approval
responsibilities.
K
Also,
we
found
that
the
finance
departments
roster
of
the
designated
approving
officials
was
outdated.
It
included
individuals
who
were
no
longer
employed
by
the
city
and
ensuring
this
rosters
is
current
is
important
because
the
city
or
the
finance
apartment
for
the
most
part
relies
on
these
individuals
to
review
and
approve
expenditures
for
appropriateness.
Our
second
finding
was
that
the
city
can
streamline
the
reimbursement
process.
The
authorization
process
for
reimbursements
differs
across
similar
types
of
expenses
and
is
heavily
paper-based
in
many
instances.
K
We
found
that
the
time
to
approve
and
reimburse
employees
for
small
expenses
far
exceeded
the
process
for
large
larger
expenses.
We
also
found
that
the
reimbursement
requests
were
not
always
submitted
in
a
timely
matter,
as
required
under
our
s
guidelines.
So
we
had
a
recommendation
that
finance
and
office
of
employee
relations
review
and
streamline
the
authorization
process
for
small-dollar
and
reimbursements,
and
also
to
simplify
the
process.
Finance
should
include
commonly
requested
expense
reimbursements,
as
well
as
timelines
requirements,
either
in
the
upcoming
electronic
travel
reimbursement
system
or
some
other
electronic
solution.
A
A
A
L
L
J
If
we're
doing
streamlining,
you
know
in
supervisorial
role,
is
there
any
way
to
like
streamline
like
employee
onboarding
to
like
hey?
This
person
is
authorized
to
do
so
that
they
can
get
authorization
like
pre-authorized
authorization
as
soon
as
they're?
You
know
on
board
it
or
something
like
that.
Is
there
I
think.
L
F
A
L
There
are
three
applications
listed
in
the
packet,
only
Spencer,
Horowitz
and
John
Clos
B
will
be
here
today.
Spencer
will
be
your
first
interview.
You
will
interview
these
two
and
appoint
one
then
Lionel
Alan,
who
couldn't
make
it
today
and
whomever
you
don't
select,
will
go
to
the
Retirement
Board
for
them
to
interview
and
for
them
to
nominate
okay.
L
A
A
G
Thank
you
fair
enough.
I
have
a
great
passion
for
the
city.
I've
lived
here
for
the
majority
of
my
life,
I
feel
the
effects
directly
of
our
lack
of
resources
that
we
suffer
from
on
occasion
and
as
a
lifelong
student
of
the
financial
markets
and
as
someone
who
is
trained
at
the
graduate
level
with
the
finance
and
economics
degree
I
believe
I
have
some
insight
and
expertise
to
share
with
the
pension
boards.
G
We
are
in
a
situation
apparently
where
we
are
paying
a
very
high
fees
for
a
very
subpar
performance
and
that's
not
a
very
good
place
to
be
I.
Don't
think
any
of
us
would
accept
that
in
our
personal
lives
or
with
our
personal
financial
situation,
and
it's
certainly
not
something
that
I'm
happy
to
see
the
city
suffering
from
so
I
would
very
much
like
to
add
my
insight.
My
experience,
my
passion
for
seeing
the
city
move
towards
probably.
G
D
G
So
I
have
the
knowledge
and
insight
the
math
and
statistical
background
to
understand
the
basis
on
which
investments
are
made,
and
yet
I
have
a
personal
distance
from
the
industry.
That
will
allow
me
to
have
a
independence
and,
let's
say,
a
healthy
skepticism.
When
investment
advisors
are
trying
to
sell
us
on
overpriced
investment
services,
which
would
be
acceptable
if
they
were
achieving
extraordinary
results,
but
when
they're
actually
costing
us
money,
then
that
is
completely
unacceptable.
G
D
G
Obviously,
we
need
to
look
at
the
actually
live
actuarial
liabilities
of
the
system.
It's
a
mature
system,
so
there
is
a
fair
amount
of
money
that
needs
to
be
maintained
on
hand
just
to
pay
ongoing
expenses
from
the
pension
fund.
However,
in
the
long
term,
the
only
way
to
earn
significant
returns
are
is
to
take
risk
and
most
of
those
risks
are
involved
in
the
equity
markets
stock
markets.
G
However,
the
one
area
where
we
do
have
control
we,
we
have
no
control
with
over
what
the
markets
present
us
every
day.
The
market
tells
us
what
the
market
is
doing.
We
cannot
wish
ourselves
a
better
return,
but
we
can
definitely
insist
on
paying
very
low
fees
to
get
the
return
that
the
market
is
giving
us
I
understand.
According
to
the
recent
civil
grand
jury
report
that
were
paying
129
basis
points
in
our
investment
funds,
that's
the
average
I
believe
between
the
fire,
police
and
the
federated.
That
is
an
unconscionable
amount.
G
I
pay
less
than
10
basis
points,
and
you
all
can
too,
with
a
vanguard,
S&P,
500
index
fund.
There's
simply
no
justification
from
me
for
paying
these
extraordinary
fees.
We
can
control
what
we
can
control
and
what
we
cannot
control
is
what
the
markets
present
us,
but
it's
clear
that
we
need
to
have
significant
allocation
to
a
to
equities
in
order
to
earn
a
reasonable
rate
of
return
for
the
city
and
for
the
pension
funds.
Thank.
G
Is
probably
set
to
high,
it
is
the
opinion
of
many
many
investment
professionals
that
the
expected
returns
over
the
next
10
and
20
years
are
unlikely
to
match
the
returns
that
the
market
has
generated
over
the
past
20
years.
We
are
finishing
up
an
extraordinary
period
in
the
history
of
the
financial
markets.
The
interest
rate
for
for
long
term
bonds
has
collapsed
over
the
last
30
years,
and
declining
interest
rates
are
the
the
wind
underneath
the
wings
of
all
asset
classes.
G
So,
as
interest
rates
fall,
bonds
go
up,
stocks
go
up,
real
estate
goes
up,
every
asset
class
is
advanced
by
falling
interest
rates,
interest
rates
are
currently
at
the
lowest
level.
They
have
been,
and
many
people
believe
that
in
the
next
recession
they
will
fall
to
negative
interest
rates,
which
is
what
we've
seen
in
Europe
and
Japan.
So
it
is
important
to
recalibrate
our
expectations.
G
G
The
the
discount
rate
is
the
measure
by
which
we
determine
what
the
future
liabilities
are
and
if
we
fail
to
achieve
in
reality,
if
we
fail
to
achieve
the
discount
rate,
that's
planned,
then
the
city
must
pony
up
the
excess
money.
So
if
we
have
an
unrealistically
high
discount
rate,
we
will
simply
be
on
the
hook,
for
that
is
we,
the
city
and
the
taxpayers
thereof,
will
be
on
the
hook
to
pay
that
much
more
money
in
in
the
future.
G
G
M
G
This
is
an
area
of
great
academic
study.
There
have
been
hundreds,
perhaps
thousands-
of
financial
professors
PhDs,
who
have
studied
the
performance
of
active
versus
passive
investment
strategies.
Active
investment
strategies
are
the
idea
of
finding
geniuses,
paying
them
lots
of
money,
so
they
can
provide
whatever
insights
they
have.
Unfortunately,
these
geniuses
have
failed
to
match
the
simple
market
average,
usually
for
the
US
stock
market.
That's
the
sp500
passive
approach
simply
says
we're
not
going
to
hire
geniuses,
we're
not
going
to
waste
our
money,
we're
simply
going
to
buy
the
market
as
a
whole.
G
We're
gonna
buy
all
stocks
in
the
S&P
500
and
that
has
proved
continuously
proved
itself
as
a
successful
strategy
over
the
years
now,
any
individual
manager,
any
individual
genius-
can
have
a
good
year,
maybe
two
or
three
good
years,
but
to
consistently
beat
the
average
has
proved
impossible
and
we
should
not
be
chasing
those
pipe
dreams.
It
almost
seems
like
a
statistical
anomaly,
you'd
think
on
average
half
the
active
managers
would
beat
the
average
and
half
would
fall
below
the
average,
but
the
reality
is
it's
much
worse
than
that,
perhaps
an
80%
of
active
managers.
G
It's
inconceivable:
80%
failed
to
beat
the
average
year
after
year,
even
Warren
Buffett,
one
of
the
greatest
investment
strategists
of
our
lifetimes
and
many
lifetimes
today
cannot
beat
the
S&P
500
and
said
if
he
was
advising
anyone
to
invest
in
the
market,
he
would
simply
put
as
much
money
into
the
S&P
500
as
he
or
she
felt
they
could
afford
so
long
as
you
maintain
adequate
liquid
assets
to
pay
current
expenses.
No.
H
G
I
have
for
my
own
personal
portfolio
and
for
my
family
achieved
a
seven
greater
than
7.5
percent
return
over
ten
years.
I
believe
that
handily
beats
what
the
pension
fund
has
produced,
and
this
is
not
by
hiring
very
elaborate
schemes
or
pursuing
anything
other
than
using
passive
investments
in
stocks
and
bonds
and
very
very
low
cost,
low,
basis-point,
ETFs
and
mutual
funds.
G
M
G
Well,
I'm
an
engineer
at
heart
and
data
tells
that
tells
the
story.
So
it's
hopefully
a
case
of
presenting
the
facts
presenting
all
of
this
massive
massive
library
of
academic
research
that
shows
the
superior
performance,
I
believe
many
many
other
municipal
and
state
pension
funds
are
increasingly
turning
to
a
passive
investment
strategy
and
I
believe
over
time.
It
will
become
increasingly
difficult
to
defend
active
investment
strategies,
particularly
if
they
incur
significant
costs
greater
than
a
passive
investment
strategy.
G
G
B
J
Of
the
things
when
we
left
when
I
left
wood,
they
were
talking
about
potentially
going
into
like
angel
capital
funds
and
in
putting
some
money
and
in
pre-ipo
investments
mm-hmm.
And
what
are
your
you
know
you?
You
seem
very
confident
and
confident
in
you
research
on
on
basically
the
buying
a
basket
of
SP
500
stocks
mm-hmm.
What
are
your
thoughts
on
on
investing
in
in
a
pre,
IPO
or
angel
round
funding
mm-hmm
to
enhance
performance?
G
I
would
say:
I
have
an
open
mind,
I'd,
be
happy
to
hear
and
and
understand
the
presentation
from
any
venture
capital
firms
here
their
track
record
and
hear
about
their
investment
strategy
and
philosophy.
However,
the
bottom
line
is
it's
a
numbers
game.
You
wouldn't
allocate
a
huge
percentage
of
your
portfolio
to
venture
capital
unless
you
were
completely
ignoring
all
risks,
because
it's
an
enormous
ly
risky
area.
So,
if
you're
only
in
allocating
a
small
portion
to
get
excess
returns.
G
Well,
that's
just
not
going
to
move
the
needle
that
much
so
again
if
we
spend
an
enormous
amount
of
time,
resources,
money,
paying
venture
capital
who
work
on
a
two-and-twenty
formula
of
carried
interest
which
guarantees
them
the
return,
and
maybe
we
get
some
return
on
afterward
we
I
would
be
skeptical
with
an
open
mind,
but
I
am
skeptical
that
it
will
move
the
needle
very
much
in
terms
of
producing
an
overall
effect
on
the
return
for
our
total
pension
fund.
Thank.
G
A
You
I
just
want
to
follow
up
on
that
question.
A
bit
again.
I
do
appreciate
your
wants
to
serve
again.
I
know,
you've
been
doing
this
in
the
past
for
the
city
in
different
roles
and
I
guess
I'll
be
arguing
a
little
bit
against
myself,
because
I
know,
as
you
cited
I've,
been
concerned
about
the
extent
to
which
we've
been
paying
high
fees
for
active
investment
for
some
time.
But
if
someone
comes
to
you
or
comes
through
the
board
rather
saying,
we've
got
a
track
record
in
private
equity,
demonstrating
we
can
get.
A
G
Very
open
mind
my
mind
would
be
open,
particularly
on
two
aspects
is:
do
they
have
a
demonstrated
philosophy?
In
other
words,
it's
not
just
well,
we've
got
smart
people
making
smart
decisions,
but
do
they
have
some
type
of
specific
insight,
some
particular
algorithm
that
allows
them
to
invest
in
market
beating
performance
and
and
of
course,
they
need
to
show
that
they
actually
have
the
performance,
and
they
can
demonstrate
that
to
us.
So
I'm
not
gonna,
be
impressed
with
a
lot
of
hand
waving.
A
lot
of
you
know
guys
come
in
with
fancy
suits
rights.
G
Do
they
actually
have
some
factors
that
they
have
discovered,
and
this
does
happen
from
time
to
time?
Have
they
discovered
some
factors
that
allow
them
to
produce
market
beating
and
performance,
and
there
they
do?
They
have
a
track
record
of
actually
delivering
that
for
their
clients
and
finally,
do
they
deliver
to
their
clients,
Netta
fees,
because
very
often
the
fees
themselves
capture
whatever
excess
performance
they
they
can
produce
and.
A
G
Again,
it's
it's
the
flip
side
of
the
coin,
which
ends
can
we
earn
as
much
by
taking
much
less
risk
that
is
enduring
much
less
volatility,
so
anything
that
can
enhance
the
performance
is,
is
I'm
very
interested
I'm
very
interested
in
the
math
and
statistics
behind
it,
but
it
has
to
be
data-driven.
It
cannot
be
simply
on
assurances
or
on
relationships
or
on
some
other
very
tenuous,
assert
Asians
that
have
not
produced
results
and.
A
Finally,
I
think
you
know
that
the
the
current
discount
rate
I
think
it's
six
point.
Eight
seven
five
mm-hmm
is
that
right,
six,
seven,
five
or
six,
eight,
seven,
five!
Okay,
it
675!
Now!
So
it's
been
lowered,
okay,
so
we're
now
at
675,
mmm-hmm
and
I.
Think
you
were
asked
by
council
member
Davis.
You
know
what
do
you
think
it
should
be,
and
you
suggested
it
probably
should
be
lower.
Put
you
on
the
spot
for
a
moment
what
how
much
lower.
G
G
A
F
G
F
Risk
which,
which
I
appreciate
one
of
the
things
that
I've
we've
heard
from
from
staff
and
the
pension
boards
in
the
past,
is
that
we
have
a
mature
fund
and
because
of
that,
because
people
are
going
to
draw
on
it
sooner
rather
than
later,
that
kind
of
limits,
our
ability
or
the
leash
to
kind
of
go
out
and
have
a
longer
time
horizon
a
view
riskier.
So
so,
can
you
tell
me
a
bit
about
that
and
comment
well.
G
Well,
clearly,
that
would
limit
the
amount
that
could
be
allocated
to
equities,
which
are
typically
earned
more
than
fixed
income
because
equities,
you
really
have
to
take
a
long
long
view
a
long
time
horizons.
But
again,
even
on
the
the
fixed
income
side,
we
need
to
devote
some
efforts
to
managing
that
part
of
the
portfolio
so
that
we
can
pay
out
for
current
retirees
who
are
addressing
the
system,
I'll
simply
say
in
Tooting
my
own
horn.
G
One
of
the
questions
on
the
application
was
asking
what
what
suggestions
I
might
make
in
terms
of
current
market
conditions
and
on
July
31st
when
I
submitted
and
answer
that
question
I
advocated
extending
the
duration
of
our
fixed
income
portfolio
and
since
that
time,
a
few
short
weeks
ago,
the
the
ten-year
bond
has
fallen
from
just
over
2%
to
just
under
1.5%
55
basis
points.
That
is
a
huge
move
in
the
bond
market.
I
can't
promise
that
kind
of
insight
always,
but
it
was
a
pretty
darn
good
call.
F
A
A
A
Welcome,
sir,
thanks
for
your
willingness
to
serve
on
the
board,
you
were
very
welcome.
Yeah,
absolutely
taking
the
time
under
patience
here,
just
wanted
to
give
you
a
couple
minutes
to
talk
about
why
you'd
like
to
serve
and
what
you
might
be
able
to
bring
in
your
talents
and
experience
to
the
board
and
then
we'll
just
jump
into
questions
and
conversation.
Okay,
absolutely.
N
Terrific
I'm
one
of
those
individuals
who
worked
for
one
organization
for
almost
his
entire
working
career,
that
was
fidelity
investments,
so
I
have
financed
kind
of
imbued
within
me.
It
is
a
kind
of
way
of
life
right
now
it
has
become
kind
of
part
of
what
I
get
excited
about.
If
you
can
understand
that
and
I've
got
this,
this
this
vitality
and
seal
after
I've
retired
to
be
able
to
do
something
good
where
I
know
that
I
have
the
capacity
and
the
knowledge
and
the
experience
to
contribute.
N
I
am
familiar
with
a
situation
with
the
with
a
federated
fund.
Here
in
San,
Jose
and
I,
see
some
pretty
quick
fixes.
I
see
some
excellent
people
that
right
now
are
part
of
the
organization,
o
RS
and
also
the
board
itself.
But
there
really
is
a
cry
for
simplicity
and
for
creating
a
much
more
nimble
infrastructure
to
meet
the
needs
of
the
plan.
So
I've
got
the
time.
I
don't
need
to
build
my
resume.
I
am
networking
years
and
I've
got
the
commitment
and
that
I
think
summarizes
the
way.
I
feel
about
my
contributions.
B
D
N
Absolutely
fidelity.
Obviously
my
career
I
was
more
on
kind
of
the
ground
level,
rather
than
the
upper
echelon
of
the
financial
industry
and
like
most
firms,
there
is
that
trade-off
between
risk
and
reward,
so
I
mean
it
depends
on
your
on
your
individual
situation,
but
if
you
can
take
on
risk,
the
chances
of
reward
are
are
much
greater
and
that's
the
same
situation
with
the
federated
plan.
N
However,
with
the
enormous
responsibility
of
making
certain
there
are
funds
for
the
retirees,
the
pensioners,
you
have
to
take
a
much
tougher
harder,
look
and
scrutinize
how
your
investments
are
allocated.
At
the
same
time,
you
can't
be
completely
averse
of
risk.
You've
got
a
mitigated
risk.
You
have
to
make
certain
that
the
risk
that
you
are
taking
on
you
completely
understand
it
that
you
dig
down
and
if
it
is,
for
example,
private
equity.
You
better
know
exactly
what's
in
there,
you
can't
rely
strictly
on
an
investment
consultant
or
an
investment
advisor
you
as
a
board.
N
As
a
member
of
all
RS.
You've
got
to
dig
down
deep,
for
example,
some
of
the
Neuberger
Berman
limited
partnerships.
There
are
elements
within
those
partnerships
that
I
am
not
convinced
that
the
board
or
the
staff
has
complete
understanding
of
everything
that
is
in
that
particular
investment.
So
to
manage
risk
you
got
to
get
down
really
really
deep,
but
you
can't
avoid
risk.
You
have
to
return,
especially
in
this
current
environment,
where
we're
dealing
with
negative
interest
rates
right
now.
N
The
credit
markets
have
taken
away
any
kind
of
return,
so
you've
got
to
take
a
broader
look.
You've
got
to
take
a
look
at
the
equity
market
in
a
much
different
perspective.
However,
within
the
equity
market,
you've
got
to
focus
on
those
opportunities
that
will
give
you
the
reward,
and
it
may
not
be
the
global
markets.
N
N
Well,
I
think
that
there's
a
trap
and
that
trap
is
that
when
you
get
into
the
world
of
institutional
investing,
you
always
feel
as
though
you
have
to
get
the
best
of
best,
and
you
need
all
of
these
different
investment
consultants
to
help
you
make
the
right
decision.
So
you
have
to
take
a
hard
look
and
assess
whether
or
not
you
are
getting
the
value
from
the
money
that
you
are
spending
on
these
investment
consultants.
I
mean
anybody
can
give
you
a
list
of
money.
N
Managers
to
select
from
anybody
can
create
a
deck
that
shows
you
returns,
but
you
really
have
to
question
that
relationship
and
find
out
whether
or
not
there's
value
so
I
think
that
negotiate.
Negotiate
in
fact
are
up
front
for
the
fees
that
you
pay
these
consultants
and
looking
at
whether
there's
any
duplicity,
do
you
need
an
absolute
return
consultant?
Do
you
need
investment
consultant?
Do
you
need
a
risk
consultant
you
do,
but
maybe
you
could
consolidate
that.
Maybe
you
don't
have
to
reach
for
the
Mercedes.
Maybe
you
can
find
the
Cadillac
out
there.
N
N
However,
the
interest
on
the
unfunded
liability
is
going
to
go
down,
so
you
know,
is
there
a
bit
of
a
trade-off
a
bit,
but
that
is
a
very,
very
tough
concept
to
grasp.
I
think
everybody
believes
that
five
and
a
quarter
is
probably
a
great
rate
of
return
right
now,
given
where
we
are
with
the
market.
So
that's
my
opinion,
6%,
probably
much
more
palatable,
but
even
an
aggressive,
six
and
three-quarters,
and
you
have
to
give
credit
for
everybody
to
push
those
assumptions
and
make
it
happen.
It
is
not
realistic.
N
It's
Christian
where's,
the
money
gonna
come
from
I
mean
how
much
is
in
the
general
fund.
How
much
can
you
afford
to
pay
into
the
retirement
kitty?
There's
a
lot
of
money
right
now
at
five
and
a
quarter.
I
guess
you'd
have
to
get
Chiron
in
to
open
everybody's
eyes,
but
yeah.
It
would
be
a
brutal
you.
D
N
I
guess
that's
well
known,
that
was
in
the
application,
so
I
believe
that
what
it
did,
at
least
for
me,
was
to
give
me
a
really
deep
baseline
understanding.
So
what
happened?
I
ended
up
going
to
probably
12
15
meetings.
I
went
through
all
the
material
I've
got
a
good
sense
of
the
numbers.
I've
got
a
sense
of
the
players.
I've
got
a
sense
of
mechanics,
I
have
a
sense
of
possible
solutions.
N
No,
as
a
member
of
the
civil
grand
jury,
it's
kind
of
a
delicate
position,
you
see
a
lot
of
good
things,
but
your
charge
really
is
to
come
up
with
something
that
might
benefit
in
help
the
institution
and
in
this
case
the
pension
fund
I
think
it's
it's
clear
that
it
it
seems
to
be
or
my
opinion.
It
is
a
very
complex
structure
with
a
lot
of
money
managers,
a
lot
of
investment,
consultants
and
boy.
Could
it
be
simplified?
N
We
have
empirical
evidence
from
other
plans
across
the
country.
They
do
it
much
more
simply
and
they
get
the
returns.
Tampa
Bay
I!
Guess
it's
it's:
it's
Tampa
Bay's
football
team,
the
city
of
Tampa,
Police
and
Fire
pension
same
size,
fair
rate
about
2.2
bill.
They
don't
have
one
alternative
investment
and
they
did
eight
point
eight
percent
last
year
and
I
know
the
stats
show
that
if
you
did
a
60/40
mix,
really
simple
stuff,
sixty
percent
domestic
equities,
forty
percent
domestic
bonds,
all
in
the
US
you
returned
last
year,
would
have
been
9.2
percent.
N
So
that's
when
I
talk
about
simplicity,
I
mean
those
are
some
of
the
things
that
it
would
be
great
to
get
the
board
to
think
about
and
make
them
understand
that
yeah.
There
are
plenty
of
opportunities
in
venture
capital
and
private
equity,
but
is
it
really
necessary
from
a
risk
standpoint
of
a
transparency?
So
you
have
kind
of
two
philosophies
here:
you've
got
kind
of
the
higher
end
sophisticated.
N
Sometimes
you
as
a
pension
fund,
may
not
get
the
best
IPO,
and
you
know
that
those
IPO
shares
are
going
to
go
to
the
big
big
investors,
the
mutual
fund.
So
you
may
end
up
with
something
that
may
never
materialize,
and
hence
therein
lies
the
risk.
I
can
tell
you
anecdotally,
by
being
in
the
business
for
many
many
years
and
for
being
up
in
Palo
Alto
for
that
considerable
amount
of
time,
every
time
upon
a
liquidity
event,
you
would
have
the
VCS
come
in
with
their
cash
and
put
it
into
index
funds
and
ETS.
M
You're
already
touched
on
my
question,
but
in
your
application
you
were
talking
about
greater
leverage
of
passive
strategies
which
you
started
to
speak
to.
But
can
you
go
into
more
detail
in
terms
of
what's
your
passive
strategies
that
you
were
referencing
what
those
passive
strategies
would
be
I
know
you
touched
on
ETFs,
which
I'm
a
big
fan
of,
but
can
you
go
into
a
little
bit
more
detail
in
terms
of
your
strategy.
N
Was
that
any
public
market
investment
there's
usually
a
benchmark
index
up
there
that's
available,
and
is
there
a
hard
enough
look
at
that
benchmark
index
versus
inactive
manager?
That's
that's
picked
from
a
long
list
of
money
managers
that
investment
consultant
provides.
I.
Think
the
answer
is
yes.
With
with
due
diligence,
and
you
probably
know
the
scope
of
the
investment
world,
there
are
a
myriad
of
index
funds,
so
you've
got
a
zero
and
find
out.
N
You
know
why
do
I
want
to
buy
an
index
fund
with
15
basis
points
when
I
can
get
one
for
two
basis
points.
So
that's
what
I'm
referring
to
is
whenever
there's
an
opportunity
for
an
investment
to
mimic
a
benchmark
and
allow
a
passive
choice,
we
need
to
take
a
really
hard
look
at
that
really
hard
look.
N
You
know
I
respect
the
the
individuals
on
the
on
the
board
around
very
accomplished,
very
well
educated
and
very
successful
in
and
I
hope.
They
would
view
me
as
the
same
way,
but
not
really
up
here
but
more
down
here
on
the
ground
and
I
think
you
know,
with
collaboration
cooperation
and
having
a
very
strong
dialogue
and
you've,
got
to
question
each
other,
not
not
in
a
way
that
that
breeds
contempt
but
collaboration.
They
are
your
colleagues,
so
I
think
a
reason,
I
think
using
examples
from
across
the
country
are
incredibly
powerful.
N
You
know,
we
all
know
the
Nevada
story.
Pennsylvania
is
doing
the
same
thing.
There
are
numerous
pension
funds
out
there
that
have
shifted,
made
their
mix
much
more
straightforward
and
simple
and
they're
getting
better
returns
at
a
lot.
Less
cost,
so
I
think
reasonable.
Minds
can
in
will
understand
that.
A
John,
thank
you
appreciate.
You
bring
a
lot
of
experience
in
your
background
to
this
I
also
appreciate
you
serve
on
grand
jury
and
produce
a
report.
Thank
you.
If
you
don't
my
I
like
to
ask
you
a
couple
questions
about
the
report
itself.
I
just
skip
on
to
the
conclusions
really
around
the
factors,
contributing
underfunding,
the
pension
plans
and
one
of
the
factors
that
was
identified
was
the
mandatory
3%
and
you'll
call
it
for
Tier.
A
N
N
A
I,
don't
I,
don't
doubt
that
it's
a
significant
burden,
I
guess
I,
wasn't
sure.
If
the
grand
jury
was
aware
in
2012
we
went
to
the
voters
and
sought
to
reduce
that
tier
1,
Cola
and
a
trial
court
told
us
that
we
could
not
do
so
legally
was.
Were
you
aware
that
at
the
time
you
put
out
the
report
I
know.
A
N
A
N
F
N
D
N
Knew
to
pay
down
the
mortgage
to
make
a
principal
payment
is
incredible
sacrifice,
and
where
do
you
find
the
money?
Yeah
I
mean
that
that
is
a
tough
task
and
I
mean.
If
you
ask
me
what
my
plan
would
be,
it
would
behave
if
you
can
come
up
with
15
years.
Where
who
knows
that
would
be
great?
You
could
just
bring
down
that
unfunded
liability
real
quickly.
So
right.
A
Okay,
so
you
acknowledge
that
getting
anywhere
near
5.25
and
I
certainly
don't
disagree
that
the
discount
rate
could
come
down,
but
coming
anywhere
near.
That
would
require
us
to
lay
off
hundreds
more
employees
time
when
we're
already
incredibly
thinly
staffed.
Okay,
I
just
want
I
mean
I,
I
appreciate
the
work
of
the
grand
jury,
but
just
seemed
like
the
recommendations
that
were
being
made
that
we're
either
illegal
or
at
least
did
not
acknowledge
the
realities
on
the
ground
which
are
we're
badly
under
serving
a
city.
N
N
We
lost
a
number
of
individual
just
because
the
fact
they
couldn't
comprehend
I
think
they
couldn't
comprehend.
They
didn't
want
to
take
the
time
to
comprehend
and
I
think
for
a
lot
of
grand
jury
reports.
It's
it's
more.
Let's
all
of
the
citizenry
be
aware
of
what
some
of
these
significant
issues
are.
It's
exactly
what
you
said
in
your
budget
and
messaging
in
March
of
this
year,
so
so
I
appreciate.
A
That
you,
you
know
I
clearly
I,
like
the
issues
I
know
they
are
pressing
issues
for
a
community
and
I
appreciate
it's
not
easy
work,
particularly
for
citizens
to
come
together
and
try
to
get
their
arms
around
something
that
frankly,
lots
of
people
any
of
their
arms
around
for
many
years,
not
easy.
So
thank
you
for
your
willingness.
Take
it
on
other
questions
from
the
council.