►
Description
San José Federated City Employees' Retirement Board
View Agenda at https://sjrs.legistar.com/View.ashx?M=A&ID=711118&GUID=9F328D7A-938D-4EC0-8C37-91C31B899D38
A
Welcome
back
to
open
session
for
the
August
meeting
out
of
closed
session,
there
is
no
reportable
action.
We
read
through
other
quarters
of
the
day
on
orders
a
day
item
1a.
It
was
time
certain
for
eleven
o'clock.
The
applicant
has
requested
deferral
so
that
disability
hearing
will
not
happen
today
so
be
a
deferred
item
item
2.1
a
Miguel
Serrano
requested
for
a
service-connected
disability,
a
change
of
effective
date
from
November
15
to
January
29th
2019
on
items.
This
is
listed
as
this
looks
like
two
time:
servings.
A
A
B
To
remind
you,
bore
in
reference
to
item
2.7,
see
the
2020s
schedule
board
and
Standing
Committee
meetings.
We
will
follow
up
with
an
email,
but
please
know
your
first
meeting
in
generally,
which
is
usually
the
first.
The
third
Thursday
of
the
month
is
going
to
be
the
fourth
Thursday
of
that
month.
We
will
follow
up
in
2020
generally
to
remind
you,
but
for
the
first
meeting
of
the
year
it
would
not
take
place
in
the
third
Thursday
of
the
month
or
the
fourth
okay.
So
there's
no
comments.
A
A
D
Just
have
one
thing
to
report
it:
we
have
unaudited
fiscal
year
performance.
Therefore,
the
pension
and
health
care
trust
the
pension
fund
returns
four
point:
two:
seven
percent
for
the
fiscal
year
outperforming
its
benchmark.
That
returned
three
point:
nine
three
percent
for
thirty
four
basis
points
about
performance,
the
Health,
Care
Trust,
returned
four
point:
one:
nine
percent
versus
the
benchmark;
return
of
three
point:
eight
six
percent,
resulting
in
thirty
three
basis,
points
about
performance.
D
As
we
would
expect
relatives
who
are
peer
group
that
many
people
pay
attention
to
in
the
fourth
quarter,
of
course,
down
market
we
outperformed
many
of
our
peers
and
subsequently
in
a
park
in
the
first
quarter,
we
under
before
many
of
our
peers,
most
notably
when
apart
perhaps
pain
points
in
previous
years,
as
our
hedge
fund
allocations
lots
of
concerns
about
the
performance
there.
That
asset
class
actually
returns
to
seven
point:
six,
seven
percent
during
the
fiscal
year.
D
So,
in
a
period
of
volunteered
volatility
it
performed
well
since,
since
the
end
of
the
fiscal
year,
we
have
experienced
more
volatility.
The
S&P
500
is
down
roughly
three
percent
versus
June
30th.
The
yield
curve
has
flattened
with
the
10-year
yield,
reaching
about
one
point:
five
three
percent
today,
so
a
period
of
volatility
coming,
should
be
positive,
play
the
plans,
any
questions
for
mr.
stark,
okay.
A
E
So
my
colleague
David
is
handing
out
some
handouts,
a
presentation
to
go
along
with
the
report.
That's
been
posted,
so
this
is
the
port
report
that
we're
gonna
present
on
our
annual
piece
covering
the
calendar
year
2018
period.
This
is
a
unit
report
because
it
covers
a
comprehensive
view
of
all
the
investment
fees
that
we
paid
to
investment
managers,
as
well
as
the
cost
of
running
our
investment
program.
David
was
the
one
that
compiled
this
report
and
so
I'll
turn
it
over
it
and
great.
F
Thanks
so
everyone
should
already
have
the
longer
fee
report,
but
we
kind
of
just
that
we
decide
to
put
together
kamo
slides
to
highlight
some
of
our
key
takeaways.
The
overall
report
has
a
load
number
or
spot
of
word,
so
hopefully
we
can
cut
through
that
and
just
hit
on
some
salient
points
here.
So.
G
F
F
One
thing
to
know
is
that
you
know
we
only
started
collecting
operating
expenses
dying
last
year,
so
the
top
level
fee
is
not
necessary,
comparable
from
2015-16
compared
to
2017
and
80.
So
you
can
see
that
you
know.
Overall
fees
have
fallen
a
little
bit
roughly
call
it
9
basis
points
mainly
due
to
you
know,
decline
in
management
fees
as
well
as
incentive
fees
on
the
right
here.
I
we
were
trying
to
get.
F
Comparative
analysis,
what
what
our
peers
look
like,
what
the
universe
looks
like
you
know,
I!
Think
in
the
past
we've
stand
that
this
data
is
very
difficult
to
collect
and
and
one
source
is
using
Cafer
data,
but
then
that
data
is
little
suspects
in
some
cases
and
usually
for
reports.
Just
manage
build
management
fees,
but.
F
F
F
F
F
B
F
Of
going
through
a
couple
of
levers
that
we
have
to,
you
know
improve
our
efficiency
on
the
first
column,
you
know
kind
of
a
general
strategy
type
I
mean
here,
you
know,
you're,
talking
active
or
passive
and
I
think
we
generally
try
to
be
thoughtful
in
to
with
respect
to
ask
the
class
in
terms
of
you
know,
do
we
go
active
or
passive?
Usually,
you
know,
if
we
believe
asset
class
is
a.
I
I
F
F
D
F
F
Now
here
we
can
dig
into
the
numbers
a
little
bit
more
and
you
know
I
think
the
point
here
and
one
of
the
points
in
my
drive
home
is
you
know.
We
think
that
the
board
should
focus
more
management
fees
and
total
fees.
So
the
concept
here
is
is
basically
control
what
we
can
control
and
you
can
see
from
the
first
you
can
see
from
the
first
page
how
incentive
fees
are
very
volatile
and
inherently
unfocusable,
and
you
know
you
really.
D
F
G
F
F
Strategies,
hedge
funds,
long
warning
public
securities,
so
one
of
the
ways,
one
of
the
reason
why
they've
come
down
is
you
can
see
on
the
right
is
our
allocation
to
more
passive
strategies.
When
you
know,
we've
gone
from
42
to
43
percent
over
the
last
three
years,
and
you
know
more
specifically
41
to
43
in
the
last
year
the
numbers
might
look
small,
but
for
example,
here
this
one,
this,
this
increase
in
weight
of
about
two
percent
accounted
for
one
out
of
the
full
basis,
point
decrease
in
maginificent.
H
L
F
D
F
So
another
driver
of
white
management
fees
has
come
down.
Is
our
reduce
allocation
to
absolute
return
and
or
hedge
strategies,
as
well
as
a
little
bit
of
restructuring
with
into
the
bucket
of
hedge
strategies
themself?
So
the
management
fee
itself
within
that
bucket
has
come
down,
as
well
as
the
allocation
to
those
strategies
within
the
plan.
F
And
finally,
on
page
ace
we
this
is,
this
is
kind
of
breaking
it
down
a
little
bit
more
in
terms
of
what
exactly
do
you
mean
by
hedge
strategies?
You
can
see
the
bulk
of
it
is
from
absolute
return
bucket,
followed
by
global
equity,
fixed
income
in
real
assets,
and
we
we
expect
in
2019
to
have
exited
all
the
oh
well.
F
We
have
actually
exit
all
the
hedge
strategies
as
it
pertains
to
real
assets
and
fixed
income
and,
as
a
result
of
our
recent
strategic
asset
allocation
shift
in
October,
we
brought
down
absolute
return
from
Segrest
about
11
percent
to
7
percent,
and
you
know
that
should
drive
management
fees
for
the
lower
to
about.
We
asked
me
about
70
basis
points
in
2019,
which
we
kind
of
feel
is
you
know
within
the
vicinity
of
target,
so
that
kind
of
concludes
the
presentation
that
we
have.
G
E
B
I
like
to
make
a
comment
on
that.
Obviously
let
me
start
by
emphasizing
when
you
have
in
page
four,
which
several
occasion
is
the
main
determinant
of
fees.
Having
said
that,
this
table
is
representative
and
was
something
that
we
have
said
year
after
year
when
you
present
this
report,
which
is
you
see
where
we
stand
in
comparison
to
our
peers
now
again,
granted
asset
allocation
is
in
the
moment
determinant.
But
my
point
here
is
you
see
what
we
stand
and
then
you
see
the
total
fee
ripples.
B
So
if
you
look
at
when
eighteen,
we
stand
somewhere
between
the
forty
and
sixty
basis
points,
but
the
total
expenditure
is
one
point.
17
I
will
argue
that
many
of
these
plans
again,
given
the
difference
in
terms
of
ossification,
they
are
only
reporting
their
fees,
because
this
is
again
based
on
the
cafe,
which
are
management
fees.
L
E
On
the
capper,
the
total
fees
and
the
difference
between
net
and
gross,
that's
only
based
on
what
the
custodian
observes,
either
through
invoices
that
have
been
paid
for
management
fees
or
directly
on
statements
that
the
custodian
bank
is
able
to
record
so
similar
to
other
plans.
It
doesn't
capture
everything,
there's
cases
where
managers
deduct
fees
directly
from
funds
and
those.
I
E
L
This
data
I'm
trying
to
get
some
clarity,
so
this
is
a
puree
based
on
the
capper
reporting
that
the
variance
between
the
reported,
the
gross
of
the
return
and
the
net
a
fever
you
deduce
the
difference-
would
be
the
fee
expenses,
but
it
doesn't
capture
everything,
correct,
okay,
so
I
just
feel
that
this
data,
although
provide
some
comparison,
this
really
doesn't
provide
a
very
good
comparison.
It
should
be
taken,
as
with
the
green
that
saw
for
the
look
not
for
a
really
comprehensive
fee
analysis
purpose,
I.
M
Was
gonna
say
at
least
starting
last
year?
We
don't
have
to
rely
on
cappers
anymore.
There
every
system
has
to
report
under
a
B
2833
to
the
state.
So
we
really
ought
to
be
looking
at
that
as
the
database
now,
because,
if
there's
a
uniform
reporting
now
that
will
have
things
that
don't
appear
in
the
cappers
might
be
worthwhile.
Looking
at
the
2018,
which
is
the
first
full
year
that
has
been
in
place
and
starting
to
use
that
as
the
database
instead
of
looking
at
khafre's
because
Kenneth
mr.
E
Comment
on
the
EB
2033,
it's
the
filament
ation
there
is
that
it's
for
alternative
investments.
Only
so
would
include
other
types
of
passive
active
strategies
as
well
as
it
only
captures
funds
that
were
contracted
to
on
or
after
January
1st
2017.
So
there's
some
cases
like
our
plan,
where
we're
able
to
go
back
to
prior
funds
and
then
capture
that
data,
whereas
other
plants
may
not
be
including
that
so
it's
not
quite
apples,
apples
yet
but
agreed.
It's
a
better
community.
Almost.
M
A
Well,
the
Detroit
trustees
sons
point
is
that
if
you
have
another
chart
that
has
this
is
the
baby
28:33
that
one,
if
you
have
those
numbers
as
well
as
the
secondary
comparison
again,
this
is
a
comparison.
There's
another
comparison
and
again
you
read
through
multiple
things
with
multiple
slices
or
lenses
will
provide
insight.
B
Do
I
do
have
one
because
I
think
the
rationale
behind
these
peer
comparison
table
was.
It
was
really
actually
a
request
that
I
had.
It
was
not
really
to
be
taking
us
a
comparison
with
the
kafirs
with
other
assistance
expenses.
It
was
more
because,
whenever
we
went
to
present
in
public
stakeholders
will
bring
back
comments
of
how
much
higher
we
are
compared
to
our
peers,
because
what
they
were
looking
at,
what
kafirs.
So
the
point
of
this
table
is
not
for
us
to
say,
hey
look:
how
are
we
compared
to
our
peers?
B
It's
like
hey,
look
at
what
we
are
and
we'll
come
with
our
conferees
I.
Don't
think
our
fears
have
much
difference
than
I,
then
so
I
think
the
a/b
20:33
is
not
quite
there
yet.
But
it's
probably
a
better
comparison.
This
table
is
not
to
say
that
we
should
compare
ourselves
to
our
peers
is
to
say
we
are
on
our
cover
about
50%
of
the
total
fees.
Again,
fees
are
based
on
us
allocation,
but
the
message
to
the
stakeholders
is
I.
Don't
think
it's
fair
that
you
compare
our
report
to
the
conference
or
anybody
else.
B
That's
really
the
point
of
this
table
not
to
present
not
to
use
this
table
as
the
table
that
we
want
to
use
to
compare
our
total
fees
to
everybody
else.
It
was
to
say
we
know
they
are
on
the
reporting,
no
because
it
were
purposely
that's
because
they
don't
have
that
kind
of
expense
pressure
before
that
we
produce,
but
keep
that
in
mind
when
you
compare
us
to
those
numbers.
That
was
the
purpose
of
that
tape.
A
So,
if
my
comments
are
this
a
couple
things
one,
if
you're
going
to
present
a
presentation,
that's
based
on
a
report,
all
of
these
same
charts
need
to
be
in
the
report
as
well,
so
that
we
can
look
at
both
of
them.
This
should
be
a
summary
or
an
excerpt
from
this,
as
opposed
to
just
taking
tables
and
data
tables
and
putting
them
in
chart
format.
It's
hard
for
us
to
go
back
and
forth.
It's
gonna
tell
us
what
we've
read
before
versus
this
and
kind
of
a
line,
everything
year-to-year.
A
A
Try
to
present
this
information,
I,
look
forward
to
this
game
presented
before
the
City
Council
and
in
the
aggregated
sense,
with
the
police
fire
data
as
well,
so
that
we
have
the
full,
comprehensive
feed
concept
and
if
we
could
have
any
other
comparisons
of
the
full
reports
that
you
have.
Is
this
information
I?
Think
it's
very
important.
You
know
if
there's
only
this
handful
of
funds
that
are
doing
this
full
reporting,
but
also
to
Berkeley
from
CalPERS
CalSTRS.
B
C
B
As
well
other
comments
or
questions
on
this
got
one
bottle.
What
was
this
gonna
counsel?
Oh
we're
still
working
and
then
we're
going
to
be
going
to
police
umpire
on
September
fair.
So
it's
just
like
we're
gonna
be
going
to
Council
towards
the
end
of
September.
I
know
there
is
a
meeting
that
they
don't
want
too
many
ideas,
because
I
forget
which
day
that
is
but
most
like
it's
gonna,
be
the
last
meeting
of
the
month,
but
I'm
not
that
day
hasn't
been
scheduled.
Yet
I
think
September.
A
Just
for
note,
I've
been
asked
to
kind
of
enunciate
beginning
and
end,
so
the
transcribers
can
make
this.
The
recording
this
and
they'll
be
putting
these
things
online,
and
this
podcast
later
on
so
I've
have
to
be
a
little
bit
more
explicit
about
transitions
so
on
to
item
5a.
This
is
our
time
certain
I'm,
only
four
minutes,
late
discussion
and
action.
Regarding
the
repayment
of
the
workers
compensation
offset
for
Danny
morning.
B
N
Morning,
my
name
is
Catherine
Schaeffer
I'm,
the
division
manager
for
the
office
of
retirement
services.
There
was
an
overpayment
to
the
member
created
in
December
2016
when
the
board
approved
a
change
in
status
for
a
service-connected
disability
for
Danny
horny.
Mr.
Horning
had
been
receiving
workers,
compensation
payments
since
July
2014
and
he
had
serviced
retired
in
July
of
2016
when
approved
for
a
service-connected
disability.
His
disability
was
retro
back
to
first
July
31st
2014
and
then
changed
to
July
10th
of
2014,
which
was
the
date
he
had
originally
applied
for
disability
municipal
code.
N
Three
point:
two
eight
point:
ten
forty
says
in
the
event
a
member
is
retired
for
a
service-connected
disability
pursuant
to
part
10
of
this
chapter
and
receives
both
a
service-connected
disability,
retirement
allowance
and
a
workers,
compensation
benefits
for
temporary
disability,
permanent
disability
or
vocational
rehabilitation,
temporary
disability
pursuant
to
Division
one
or
Division
four
of
the
California
Labor
Code.
Then
the
service-connected
disability
retirement
allowance
shall
be
offset
by
the
sum
of
all
workers
compensation
payments.
The
recommendation
of
staff
is
that
mr.
N
K
A
K
I,
don't
think
we
have
a
any
dispute
about
thirty
three
point:
two
eight
point:
ten
forty
I,
don't
I,
don't
I
think
we
agree
on
that,
however
Section
six
of,
but
that
the
Municipal
Code
section
says,
but
the
offset
does
not
apply
with
respect
to
workers,
compensation
benefits
paying
for
any
injury
illness
which
did
not
cause
or
contribute
to
the
disability.
Royce's
service-connected
disability
was
granted.
K
Now
he
filed
multiple
workers,
compensation
claims,
they
paid
him
on
a
2014
claim
that
was
later
determined
to
be
and
I
have
a
printout
from
the
workers
compensation
people
showing
he
got
paid
and
I
also
have
emails
showing
them.
He
settled
the
claim
that
it
was
agreed
that
2014
actually
never
caused
a
disability.
N
N
K
The
question
is:
did
the
2014
injury
causing
disability,
the
City
Attorney's
Office
agreed
in
the
settlement
that
it
did
not,
and
the
doctor
said
it
did
not
and
if
that
didn't
cause
a
disability
and
that
wasn't
why
he
was
retired
and
he
wouldn't
get
credit
for
that
2014
money.
In
fact,
when
they
looked
at
the
settlement,
all
the
money
was
paid
out
before
he
retired,
or
almost
all
of
it
was
at
the
very
least.
K
N
K
After
after
the
retirement
happened
and
the
permissibility
advance
overpaid
before
had
not
take
those
that
will
mean
a
lot.
Less
money
should
be
requested
by
your
side
and
there
shouldn't
be
interest
or
something
like
that.
Mr.
hurting
did
nothing
wrong
in
this
thing.
Here
he
went
with
what
the
AME
that
the
city
agreed
to
and
you
got
those
benefits
there.
He
did
nothing
wrong
for.
C
A
M
Man
I
just
tried
to
break
down
with
you,
chef
said
about
the
injuries,
because
it's
not
clear
to
me
from
the
record,
so
it
would
be
helpful
to
have
representation
from
you.
As
to
this.
There
was
an
injury
in
2011,
yes,
workers
comp
paid
for
that,
and
yes,
what
was
that
injury
right
wrist
right,
wrist?
Okay,
that's
2011!
There
were
payments
for
that.
Yes,
was
there
2014
injury
there.
K
N
M
K
What
I
wanted
to
say
is
that
I,
don't
think
I
have
a
copy
of
Chairman's
report,
but
I
suspect
she
did
not
discuss
whether
or
not
the
2014
incident
was
a
new
injury
or
a
recurrence
of
the
2011
incident.
Consequence
of
it
I
suspect
that
wasn't
discussed
in
that
report,
but
the
city
did
and
I
have
emails
from
that.
I
can
present
to
you
guys
if
you
want
emails
from
the
City
Council
that
agreed
all
the
disability
came
to
the
2011
injury
and
nothing
came
from
2014
I.
B
B
Think
the
way
we
read
and
I'll
defer
to
counsel
the
Code
section
of
dominicano
has
to
do
with
the
fact
that
for
the
payment
to
be
requested
back
to
be
offset,
when
a
member
is
found
to
be
disabled,
disabled
from
the
timing
standpoint,
it
has
to
be
that
they
found
to
be
disabled
from
the
same
disability
as
the
workers.
Comp
and
I.
Think
that
you
answer
that
both
of
those
payments
are
related
to
the
right
wrist,
which
is
one
of
the
contributing
factor
to
the
decision
by
this
board.
To
grant
the
disability.
B
Therefore,
I
can't
speak
to
and
I
don't
even
know
exactly
what
your
frame
to
to
some
statements
by
emails
or
letters
from
the
City
Attorney's
Office,
and
we
don't
know
they're
part
of
this
ability.
But
both
payments
are
related
to
the
right
wrist
which
to
our
understanding,
because
they
both
relate
to
the
right
wrist.
Then
we
need
to
offset
the
payment
of
the
service
quantity
disability
with
the
payments
receive
for
workers
comp.
That's
the
way,
I
understand
it.
That's
a
simple
person.
B
K
Let
me
explain:
he
got
benefits
for
the
2014
injury
turned
out.
Those
benefits
were
probably
by
mistake.
Those
benefits
he
shouldn't
have
received
on
the
2014
entry.
He
should
have
received
the
benefits
already
in
2011
and
that
should
have
happened.
That's
what
was
resolved
in
the
case.
Yes,
he
got
benefits
and
in
some
regard
they
were
due
to
the
first
injury
and
not
the
second
injury,
but
the
city
is
requesting
benefits
on
an
injury.
They
didn't
get
benefits
for
him
because
that's
how
the
benefits
were
categorized.
Do
you
understand
no.
B
K
K
It
does
11
injury
and,
to
the
extent
you
got
money
on
that
injury
that
the
the
Municipal
Code
doesn't
give
you
an
offset
for
that
and
to
the
extent
this
is
a
strange
situation
where
you
have
a
this
doesn't
happen
all
the
time
it
happens
sometimes,
but
it
doesn't
happen
all
the
time.
I
would
request
that
you
do
some
kind
of
equitable
arrangement
with
him,
because
he
did
nothing
wrong.
He
went
through
with
everything
just
like
he
was
supposed
to
and
paying
into
it.
He
lives
of
is
all
his
income.
B
No
I
understand-
maybe
you
know
the
churn
you
kiddin,
maybe
this
for
the
discussion
to
be
held
here,
but
I
do
money
making
for
the
board
benefit
that
when
we
work
these
cases,
the
the
amount
that
we
are
you
looking
to
offset
actually
come
to
us
from
workers
comp.
We
don't
repair
that
amount
workers
come
understand,
these
Code
section
as
well
and
yeah.
That
amount
came
to
us
and
workers
come
so
it
sounds
like
if
there's
an
issue
here.
K
A
A
K
A
I'm
gonna
get
a
few
is
paid
for
something
that
he
should
have
gotten
paid
their
workers
comp
stuff.
They
would
resolute
that
to
us
as
far
as
something
that
would
be
some
information
over
to
us.
It
sounds
like
we
didn't
get
all
this
information
purpose
personally,
I'd
like
for
the
staff
to
go
back
and
work
with
mr.
Horning
to
figure
out
and
see
if
we
have
all
of
the
relevant
information
that
it
seems
like
we
only
have
some
of
it,
I
think
we're
gonna
and
if
you
could
put
together
a
timeline
of
these
things.
A
For
us
a
bit
would
be
helpful.
I
know
this
is
a
big
hairy
case
and
it's
challenging
and
I'm.
Sorry,
you
were
injured,
but
I
think
that
we
can
figure
this
out
harder.
Things
have
been
figured
out
so
we'll
figure
this
thing
out
and
we'll
we'll
do
what's
right
by
the
plan
and
you
and
won't
figure
out
the
right
plan
forward.
C
97
and
when
I
got
the
apply
for
disability,
it
took
two
years
for
them
to
settle
with
me.
There
was
no
interest
there
and
that
ended
before
I
got
the
settlement
and
retired.
When
I
turned
55,
I
started
click.
The
money
meant
for
a
couple
of
years.
I
was
getting
no
money,
but
I
had
to
resign
because
I
couldn't
work.
No
more
and
I
really
thought
it
to
follow.
That
money
was,
do
me,
I
didn't
think
I
cheated
anybody
and
even
went
to
see
Dan
and
if
I
have
to
pay
it.
A
That
part
out
I
think
I.
Just
don't
think
we
have
all
the
information
as
far
as
when
relevant
monies
were
supposed
to
be
had
and
what
code
is
applied
and
we'll
get
guidance
from
counsel
as
to
what
we,
what
rules
we
have
but
I
think
we
need
some
more
information
to
make
this
decision.
We
have
a
retreat
next
month
during
this
our
board
meeting,
and
so
let's
have
this
back
in
October.
So
if
you
both
work
expeditiously
to
get
all
the
information
and
get
staff
report
back
to
us.
M
So
we
can
make
a
decision
in
October
and
I'll
try
to
be
not
four
minutes
late.
The
next
time
we
have
our
hearing.
It
will
set
a
time
certain
to
get
that
thing
resolved
if
I
may,
through
the
chair
may
I
request
that
mr.
Horning
and
the
council
provide
at
least
two
weeks
before
that
October
meeting
any
material
they
want
to
have
included
in
the
record.
A
You
get
so
if
you
shoot
for
like
the
beginning
of
October
at
the
latest,
to
get
anything
is
now,
but
you
should
be
working
with
them
through
September
to
get
this
thing
tied
it
up.
So
we
can
get
this
thing,
get
all
the
information,
so
it
helped
us
decide
most
suicide,
officially
efficiently
late,
October.
A
B
Thank
You
suggests
I'm
just
going
to
kick
it
out,
but
really
you
have
before
you
a
memo
around
noon
after
you
bore
provided
direction
to
staff
and
to
trustees,
son
and
Costigan.
Oh,
we
had
two
or
three
I
believe
it
was
two
conference
calls
and
various
emails.
So
before
you
is
the
memorandum
summarizing,
what
was
the
least
one
of
those
discussions
along
with
the
second
page,
just
as
a
reminder
for
your
board,
what
were
the
islands
that
you
discussed
in
your
face?
B
G
G
G
G
It
is
the
opportunity
for
the
board
to
take
a
step
back
from
our
monthly
meetings
and
take
a
look
at
a
bigger
picture.
What
are
some
key
issues,
and
how
do
we
quantify
that
in
terms
of
an
annual
plan
so
of
that
at
the
beginning
of
an
annual
period,
we
can
say
here
are
our
priorities
and
then,
at
the
end
of
that
annual
period,
we
can
say:
here's
how
we
did.
A
What's
interesting
is
one
talks
about
benefits,
but
then
also
talks
about
the
asset
management
of
it?
Is
it
the
benefits
of
the
asset
management,
because
the
benefits
are
have
an
actuarial
thing
and
the
asset
management
is
more
of
the
consultant
side.
Investment
staff
side
is
the
conversation
about
the
discussion
on
what
tier,
2
tier,
1
tier
2
on
the
benefits
side
or
is
on
the
asset
side.
B
L
The
idea
that
we
had
or
some
composition
about
tier
1,
tier
2
for
awhile
the
idea
and
the
tier
1
tier
2
issue
have
been
ongoing
for
a
while.
The
Uni
show
discussion,
probably
back
in
2017,
we
see
increasing
membership.
A
chair
I
think
it's
it's
it's
time
for
sir,
to
take
a
look
at
the
whole
plan
structure.
The
vs.
into
your
membership
to
see
if
it's
still
feet,
is
still
practical
to
keep
all
the
ads
to
kill,
keep
confident
assets
coming
gonna
manage
it
in
the
same
way
to
meet
our
obligations.
L
Certainly
tier
true
has
a
different
obligations,
characteristics
from
tier
1
and
then
I
think
the
first
of
all.
We
need
to
look
at.
What's
the
situation
between
to
your
20s
tier
one
versus
the
liability
and
a
society,
we
need
to
look
at
those
right.
Then
then
the
second
say
is
it
feasible
to
separate
them
and
then,
if
we
determine
if
it's
feasible
and
then
we
have
to
decide
Sarathy.
L
Well,
that's
am
I,
really
go
ahead
and
tend
together.
You
can't
really
talk
about
we're,
not
talking
about
liabilities
right
and
then
certain
one
is.
Should
we
decided
that
it's
it's
it's
feasible
to
separate
the
hall?
We
do
that.
So
that's
why
we
disgustin
we
created
the
first
time.
You
discussed
a
road
map
to
potentially
fabricate.
If
you
want
your
to
liabilities
and
and
then
then,
when
you
develop
the
bifurcate,
there
are
diability,
then
you
have
to
create
a
different
asset
management
plan
to
meet,
looks
like
these
down
the
road
and
then
coincide
with
that.
L
You
know
when
when
we
separated
assets
and
liability,
then
founder
of
status
will
come
into
coming
into
a
discussion
within
the
current
market
situation
of
with,
with
with
the
current
market
perspective,
how
are
we
supposed
to
to
line
the
as
amendment
with
the
liability
expectation?
True
true,
how
that's
going
to
impact
you
to
the
funded
status
for
postage.
M
Observation-
and
maybe
this
is
stating
it
just
differently,
but
the
same
thing.
It
seems
to
me
that
the
inquiry
is
focused
on
the
difference
between
tier
1
and
tier
2,
in
that
the
key
difference
is
that
tier
2,
any
unfunded
liability
is
shared
by
the
employees,
so
they
have
exposure
and
risk
that
is
not
characteristic
of
tier
1.
M
At
present,
there
is
virtually
no
nearly
no
unfunded
liability
associated
with
tier
2
and
we're
required
for
actuarial
purposes
to
assess
the
liabilities
of
tier
2
separately
from
tier
1,
so
that
we
can
determine
contributions
that
are
shared
by
the
employees.
So
I
think
that
question
was
a
little
more
focused
as
I
understood
it,
which
is.
M
Is
there
something
we
can
do
today
when
there
is
no
unfunded
liability
in
tier
2
to
essentially
immunize
tier
2,
from
what
we've
had
to
go
through
in
the
last
two
decades,
with
tier
1
with
unfunded
liabilities
and
not
having
collected
enough
from
contributions
and
earn
enough
in
investment
earnings
to
to
avoid
an
unfunded
liability
and,
and
so
I
I,
don't
know
if
I
for
keishon
is
the
right
word,
I
think
we're
really
talking
about
it
is.
Is
there
a
methodology
available
that
we
should
explore
that
would
allow
us
to
immunize.
M
A
My
comment
was
to
be
just
a
it's
sort
of
implied
an
end
by
the
way
it
stated
as
opposed
to
what
the
question
is,
that
we
want
to
study
it's
more
right,
explore
this
approach,
or
it's
not
as
explicit
as
that,
but
it
certainly
is
leaning
that
way
and
that's
where
I
I'm,
like
you
have
thinking
a
little
bit.
It
should
be
a
little
more
open-ended
about
it's.
This
next
study
of
tier
1,
tier
2,
I
think
we've
done
some
in
the
past.
A
A
A
The
beginning
is,
do
nothing
is
one
option
to
make
a
complete
other
extreme,
where
you
have
wholly
separated
everything
into
into
the
extreme
of
everything
you
imagine,
there's
probably
a
continuum
on
there.
That's
that's
reasonable
that
if
you
know
what
what
is
that
end
up,
looking
like
as
far
as
the
alpha
mode
for
the
boys.
A
L
Think
that's
all
related.
We
can't
really
say
one
thing
versus
the
other
and
then
the
final
I
think
the
fundamental
driver
of
this
discussion
is
because
we
have
increasingly
increasing
in
membership
in
tier
2
and
then
yet
the
tier
2
asset
is
managed
the
same
way
as
a
tier
1.
But
we
don't
have
the
same
liability.
We
shouldn't
be
exposing
to
same
level
risk
as
a
tier
1
asset.
L
L
We
choose
the
counsels
that,
if
possible,
you
know,
I,
know
cheer
to
has
a
small
amount
of
liable
itself
small
mark
on
the
knife
and
which
is
shared
a
50/50
by
the
member
and
the
city,
and
if
the
talk
will
hug
it,
can
we
shrink
that
up
on
the
line
but
down
the
road?
And
then
possibly
you
have
no
wheelchair
do
I
know.
Tier
1
is
high
colleague.
We
have
confidence,
millions
of
that,
but
territory.
If
we
can
avoid
that
situation,
though,
that's
really
see
thinking
generation
I
mean.
L
M
We
have
a
model
for
this
right
now.
We
have
a
pension
trust
in
a
health
care
trust
they
have
different
liabilities
and
we
manage
them
differently
because
they're
in
different
trusts,
we
can
manage
them
differently.
We
have
a
different
asset
allocation
for
the
healthcare
trust
than
we
have
for
the
interest,
that's
kind
of
a
model
for
what
I'm
hearing
that
the
board
may
wish
to
explore
here.
M
Obviously,
that
would
take
a
statutory
change
to
create
a
Tier
one
trust
in
a
tier
two
trust
like
we
have
the
pension,
trust
and
healthcare
trust,
but-
and
that's
not
within
the
power
of
the
board,
but
a
study
to
develop
the
intelligence
on
what
would
that
look
like?
How
would
would
that
go
about
happening
sounds
to
me
to
be
the
focus
that
you're
raising.
G
For
the
purpose
of
wording,
the
agenda
of
I
was
intentionally
trying
to
be
very
cautious
about
that,
because
without
suggesting
that
this
is
what
we're
gonna
do
definitively,
because
you
know
this
is
a
it's
a
very
substantive
change.
If
we're
to
go
down
that
road-
and
there
are
a
lot
of
stakeholders
attached
to
it-
I
wouldn't
want
to
get
stakeholders
riled
thinking
that
we're
gonna
go
down
a
certain
Road
preliminarily,
so
that
for
the
purpose
of
the
agenda,
it
was
really
more
more
like
what
chair
lash
was
suggesting.
G
It's
really
a
viewing
the
possible
doing
possible
landscape
the
the
breadth
of
the
continuum,
the
breadth
of
options
and
we
might
have
available
to
us
and
what
are
the
pros
and
cons?
How
are
people
our
stakeholders
impacted
or
not
impacted,
really
taking
that
first
blush
look
at
it,
so
that
then,
or
can
react
to
that
and
maybe
decide
we
want
to
get
more
reactant
outside
reaction
to
it.
But
it's
really
that
initial
discussion,
because
there's.
G
A
Okay,
that's
a
good
discussion.
Do
we
have
a
decision,
the
direction
on
that
one
as
to
what
we
should
talk
already
got?
It
indicates
an
outcome
as
opposed
to
the
discussion
like
they
didn't
come
up
with
a
roadmap
for
it
for
this
review,
whether
it's
it's
really
just
develop.
The
strategic
plan
around
immunizing
tier
two
is
really.
What
we're
trying
to
do.
I
think
is
that
that.
A
I
think
it's
you're.
Getting
we
got
to
get
what
Chiron
in
here
I
mean
I,
don't
think
we
need
our
investment
consultants
in,
but
our
investment
staff
can
weigh
in
on
implications
of
decisions
that
we
made
choices
around
pooling
things
differently
for
sure,
but
so
I
could
Chiron
have
something
prepared
in
a
month.
Yeah.
A
B
Out
to
Chiron
and
both
Makita-
and
they
both
have
put
tentatively
this
day
on
the
calendar
they
just
waiting
for
me
to
get
back
to
then
on.
What
is
the
direction
for
the
from
the
board
on
what
you're
looking
for
I'm,
not
sure
I
mean
if
you
look
at
the
second
page,
you
touch
based
on
these
two
years
ago.
I
think
this
is
just
going
to
be
I,
don't
wanna
see
more
of
the
same,
but
it's
the
same
concept
again
of
until
one
tier
two.
B
You
want
to
have
more
discussions
about
it
at
that
point,
the
first
key
curve
that
you
can
call
you
mediation,
Jai
Kali,
you
can
call
it
decreased
risk,
but
you
know
having
more
discussions
about
it.
I
think,
at
the
time,
everybody
correctly,
the
camera
was
very
clear
that
we
were
I,
don't
want
to
say
quite
a
few
years
away,
but
a
few
years
away
somewhere
in
the
second
half
for
the
2020
decade,
before
this
boy
was
in
a
position
to
really
having
to
do
something
about
it.
B
So
again,
I
think
having
discussions
to
keep
your
price
after
what
the
options
are,
because
you
have
different
options
from,
as
you
indicated
mr.
chair,
not
doing
anything
to
complete
either
different
trials,
or
even
just
one
trust
but
separate
allocations,
and
so
you're
just
want
to
make
sure
that
you're
ahead
of
the
curve
with
what
are
the
implications-
and
you
know
both
of
those
tiers-
have
different
demographics,
I,
don't
think
I,
don't
remember
the.
B
A
A
That's
really
the
challenge,
not
just
a
number
of
people
ease,
and
so,
if
we
can
set
that
up
for
success,
if
there's
things,
okay,
great
within
the
next
two
years
within
the
next
five
years,
we
need
to
have
the
plan
to
plan
or
appliance
position
like
this,
or
we
need
to
get
a
statutory
of
request
and
the
City
Council
to
do
this
specific
thing
that
doesn't
that's
not
an
instantaneous
pivot
that
they
could
do.
It
takes
election
cycles
to
get
that
in
front
of
them,
and
so
we
need
to
think
through
those
things.
A
B
G
Yes,
you
know
I,
think
I
know
you
know
this,
but
just
remind
you,
the
from
the
prior
retreat
regarding
the
prior
retreat
after
November
trustee
Chandra
will
be
the
most
senior
person
on
the
board.
Yes,
two
years
yeah,
two
years
of
ten
years,
so
there's
a
lot
of
stuff
that
they
have
been
discussed
two
years
ago,
yeah.
So.
A
A
Again,
this
one
seemed
a
little
funds,
not
as
specific
as
I
think
would
be
as
useful
as
could
be
so
is.
It
is
the
intent
that
investment,
consultants
and
Palani
are
presenting
the
current
market
environment
and
the
impacts.
What
we
would
expect
over
the
next
period
and
then,
if
we
separate
the
investment
investments,
or
is
it
just
the
current
status
of
what's
going
on.
L
My
phone,
if
we,
if
we
choose
to
separate
Tier
one
tier
two,
we
will
have,
we
want
to
know
how
the
funded
status
well,
it
will
be
come
specifically
to
Tier
one
and
tier
two
of
my
expectation
if
we
really
take.
If
should
we
choose
to
separate
the
the
assets
I'm
assuming
at
the
base
of
the
market
condition,
the
Tier
one
found
is
that
difficult,
even
worse,
could
be
worse
than
what
its
current
fee
and
then,
in
that
case,
it
won't
come.
What
do
we
want
to
do?
L
L
He
wanted
to
say
he
wanted
to
have
a
discussion,
how
that's
going
to
impact,
how
that
the
plaintiff
understand
is
going
to
be
impacted
with
the
down
cycle.
They
dumb
economic
cycle,
and
then
you
know
how
worse
is
supposed
to
be.
What
can
we
do?
You
know
how
what
is
the
worst
lowest
funniest
and
as
we
can
accept,
but
that's
something
you
know
it
is
a
jungle,
so.
A
I
might
I
suggest
I
think
we
should
pull
off
the
separation
of
Tier,
one
tier
two
funded
implications
and
I
think
it's
pretty
safe
to
say
if
the
fund.
Instead,
if
we
had
two
different
trusts
here,
two
would
be
nearly
a
hundred
percent
funded
and
Tier
one
would
be
less
funded
that
it
is
I.
Think
it's
that's
a
pretty
obvious
thing.
I
would
say
if
we
could
get.
You
know
if
the
the
impending
downmarket
cycle
or
current
cycle,
beginning
whatever.
A
What
should
we
expect
and
because
I
think
that
would
be
very
useful
information
to
project
to
the
city.
As
far
as
a
current
study
of
what
we
expect
over
the
next
period
and
what
my
reactions
would
we
see
from
staff
as
far
as
investment
changes,
if
any
I
think
that's
a
pretty
meaty
topic
in
and
of
itself,
and
probably
a
good
study
that
so
basically
just
drink
the
last
sentence
off.
A
A
Like
establishing
a
process
for
developing
and
improving
a
board
work
plan,
I
think
that's
I
I
think
I
understand
what
you
want
there,
but
it
again
it's
really
to
discuss,
develop
a
process
and
timeline
of
when
we
would
have
work
plan
discussions
right
now.
We
have
budget
process.
We
have
a
review
process
and
stuff.
We
have
lots
of
things,
jumbled
up
and
I,
don't
think
it's
really
explicit
as
to
when
we
should
expect
things.
A
You
know
if
you're
developing
a
budget
plan,
you
have
work,
plans
that
align
to
it
that
should
those
things
should
all
be
kind
of
lined
up
and
kind
of
teared
up
earlier
in
the
calendar
year
so
that
by
the
beginning
of
fiscal
year,
you're
firing
away
in
it
right.
So
it's
really
having
that
discussion.
That's
not
a
very
long
discussion,
but
I
think
if
perhaps
this
is
clearly
coming
from
you,
mr.
Paignton,
that
really
it's.
A
If
you
had
the
keys
to
the
kingdom
and
where
you
do,
if
you,
if
the
board
tells
you
develop
a
work
plan
timeline
of
when
you
would
be
presenting
what
you
want
wouldn't
or
should
be
doing
at
what
period?
When
does
that
happen?
You
come
to
us
in
December,
so
you
know
what
clear
direction
you're
pushing
a
budget
sign
so
that
you
know
that
by
June,
1
July
1
year,
coconut
all
cylinders
on
that
work
plan.
What
does
that
process?
Look
like
for
you,
as.
G
G
For
every
year
you
have
you
have
a
budget
process,
you
have
an
administrative
priorities,
there's
a
decision-making
process
that
that
you've
got
to
bring
the
board's
through.
In
order
to
for
that,
your
what
you
put
out
in
the
budget
to
coincide
with
what
the
board's
want
and
then
it
gives
you
time
to
implement
with
your
team.
How
do
we?
G
B
A
What
you're
hearing
is
because
there's
a
lot
of
folks
that
are
going
to
be
new
to
the
board
are
new
in
order
to
review
the
process
of
giving
us
we're
gonna
be
trustees
coming
on
soon
enough.
There
really
is
once
once
this
word,
applying
development
look
like
and
what's
the
process,
and
you
want
to
bring
it.
A
Okay,
so
that's
item
5b,
there's
no
real
I
mean
I've
been
in
to
vote
on
this.
It's
just
sitting
in
agenda.
So
as
far
as
description
there
so
no
vote
on
item
5b
5c
is
time
certain
for
13
minutes.
Perhaps
I
gotta
hustle,
because
the
PMF
staff
is
it
afford
it
sorry
joining
us
here,
so
that's
held
till
11:30
106
or
all
update
from
the
CEO
mr.
Feeny
yeah.
B
Thank
You
mr.
chair
just
quickly,
the
external
auditors,
from
Grant
Thornton
will
be
back
starting
on
August
26
for
a
Miss
a
month
to
continue
working
on
law,
financial
audit
and
the
new
account
clerk
for
the
accounting
function
will
stir
on
September
23rd
on
the
the
benefits
area.
We
have
three
positions
right
now
that
are
open.
We
have
a
senior
analyst
which
we
are
going
to
be
interviewing
for
tomorrow.
B
B
We
are
about
10
of
12
positions
in
the
benefit
side,
but
we
have
about
four
benefit
on
it,
so
we're
down
many
finals
were
down
one
and
then
senior.
We
have
two
positions.
We're
down
one
as
well
as
you
are
well
aware,
you
bore
is
actually
short
to
trustees
and
the
city
clear
was
actually
running
an
application
process
for
the
two
seats,
the
application
process
and
the
nagas.
Second,
we
received
four
applications.
However,
one
of
them
did
not
qualify
because
they
did
not
meet
the
50-mile
radius.
B
I
think
it
was
fifteen
point
two,
but
in
any
case
so
three
of
then
we'll
move
forward.
As
the
chair
Ramanna
me
this
morning,
one
of
those
positions-
I
always
forget.
If
it's
a
third
of
the
seventh
it
requires
that
you
bore
actually
do
an
interview,
so
we're
going
to
be
working
with
the
city
clerk,
but
the
Civic
League
is
working
bringing
to
the
City
Council
interviews
for
the
for
one
of
those
positions
on
August
27.
B
Presumably,
the
way
we
work
is
the
City
Council
will
make
an
appointment
of
one
of
those
three
members
and
then
the
other
two
will
come
before
your
board,
most
likely
for
doctoring,
meaning
for
interview
so
that
you
can
interview
they're
the
two
members
and
then
recommend
back
back
to
city
city
council,
one
of
those
members
for
appointment
for
your
November
meeting.
You
receive
this
week,
then
no
known
conflict
of
interest
form.
B
So
when
you
get
a
chance,
if
you
can
fill
that
out
and
send
it
back
to
staff,
a
letter
was
sent
out
to
retirees
last
June
because
we
made
some
changes
to
the
pay
portion
of
their
paycheck.
So
small
changes
on
the
pay,
stubs
and
so
I
think
it
was
well
received.
We
are
working
with
the
city
on
the
steps
for
making
sure
that
you,
investment
professionals
that
are
currently
on
the
tier
3,
actually
are
able
to
join
CalPERS
defined
benefit
plan.
B
I
think
the
city
has
a
a
goal
to
bring
forward
a
recommendation
to
City
Council
the
August
27th
meeting,
and
the
idea
is
to
hopefully
sometime
in
October,
to
kick
up
the
process
to
have
those
members
sign
up
for
the
CalPERS
benefit.
And,
lastly,
we
two
things
we,
we
had
interviews
for
the
IT
manager
position
as
you
be
called
as
the
our
new
deputy
director,
that
was
the
opposition,
ality
manager,
and
so
we
are
down
to
two
members
and
I
think
we
are
actually
going
to
the
process
of
checking
references.
B
And,
lastly,
it
was
about
five
years
ago
that
we
actually
made
changes
to
to
our
offices
and
the
building.
The
brain
lease
agreement
is
coming
up
in
March
of
2020
and
so
I'm
working
with
staff
and
looking
different
options,
which
include
anywhere
from
remaining
in
this
building
to
look
in
our
locations
nearby
in
other
buildings
in
the
area.
We're
going
to
be
coming
forward
to
your
board
at
the
meeting
in
October,
to
give
you
an
update
as
to
where
we
stand
and
what
we
would
recommend
it.
That
concludes
my
comments.
Mr.
chair.
A
O
I
just
want
to
make
sure
that
the
Retirement
boards
are
aware
that
PG&E
has
issued
a
public
safety
power.
Shutoff
notice
that
and
basically
what
it
means
is
PG&E
at
their
discretion,
can
shut
off
the
power
whenever
they
feel
like
it.
If
they
determined
that
there
is
danger
of
a
wildfire,
because
the
lines
this
could
affect
San
Jose
and
many
parts
of
San
Jose
and
the,
and
once
they
shut
off
the
power,
it
will
likely
be
off
anywhere
from
three
to
five
days
so
longer
than
48
hours.
O
This
prompted
our
mayor
to
ask
for
a
study
session
on
energy
resiliency,
which
we
will
be
having
on
August
29th
and
that
will
be
in
the
morning
on
August
29th.
He
was
also
in
Sacramento
yesterday,
testifying
before
the
legislature
and
asking
for
an
oversight
process
so
that
there
was
some
public
accountability
rather
than
someone
executives
that
are
beholden
to
shareholders,
as
opposed
to
the
public.
O
So
that's
something
that
we're
very
concerned
about
and
really
trying
to
take
steps
to
make
sure
that
our
emergency
services
are
able
to
handle
what
will
happen
because
there
will
be
more
emergencies.
Medical
emergencies
in
the
event
of
shutoff
because
of
all
the
people
who
are
on
have
medical
devices
that
they
eat
every
day.
So
we're
concerned
about
that
and
we're
working
on
that.
A
B
B
The
city
actually
requested
the
grand
jury,
an
extension
on
the
90
day,
which
actually
happens
to
be
I,
believe
the
90
day
is
September
17,
which
is
two
days
before
you
retreat
meeting
on
September
19.
That
request
was
actually
granted
and
and
I
was
working
with
Cheryl
and
I
confirmed
that
that
requires
included
the
retirement
board's
quote.
That
does
not
mean
that
we
have
to
respond.
B
October
1st
I
think
that
the
extension
was
granted
through
October
1st.
Is
that
correct?
So
that's
the
new
day
that
we
had
to
respond
to
October,
1st
and
I
think
the
key
issue
here
is
they're
very
specific
I
think
there
are
five
recommendations
for
which
are
we
v
United
to
retirement,
for
which
are
asking
for
something
to
be
done
by
June,
30th,
2019
and
2020,
and
1
by
December,
31st,
2019,
I
think
in
terms
of
actually
working
response.
It
should
be
very
straightforward.
B
Basically,
whether
or
not
the
boards
agree
with
the
recommendation,
if
we
agree
or
do
not
agree
explain
why
and
what
we
want
to
do
about
it.
So
you
think
in
essence,
you
bore
I
agree
with
the
recommendations.
Then.
Yes,
we
agree,
and
we
intend
to
have,
you
know,
recommended
steps
to
be
completed
by
the
dude
that
they
gradually
recommended
or
requested,
and
if
we
do
not
agree,
then
the
reasons
why
not
I
can
speak
that
the
police,
a
fire,
bore,
I,
believe
and
staff.
A
Is
I
get
it
to
Mister
since
area
on
the
police
and
fire
board
and
asked
him
that
I
think
the
most
efficient
path
is
for
if
we
can
get
the
two
boards
to
delegate
their
chairs,
whoever
to
coordinate
a
response
thing
that
we
understand
what's
being
asked
of
us
and
then
that
will
action
in
at
an
appropriate
time
that
will
provide
a
written
response
timely
to
what
the
request
is.
Obviously
some
of
these
things
have
longer
time
frames.
The
city
has
a
response
that
they
need
to
provide
as
well
to
their
specific
things.
A
H
Our
apartment
office
of
employee
relations
I'm
just
here
to
request
that
the
city
and
the
Retirement
Board
do
you
coordinate
on
the
responses.
There
are
some
responses
that
do
overlap,
I,
believe
questions,
three-year
findings
and
recommendations.
Three
and
four
I
made
the
same
kind
of
comment
to
the
police
and
fire
board
two
weeks
ago.
So
just
wanted
to
bring
that
up
here
at
the
federated
board.
Very
good
I
work
together.
A
The
Big
W
team
I
didn't
actually
want
the
extension
I
want
our
response
as
quick
as
we
can
and
get
it
over
with,
because
I
don't
see
any
value
for
us
to
wait
longer,
just
because
it's
really
because
then
it
shortens
our
time
clock
if
we
agree
to
their
timeline
I'd
rather
not
short,
our
time
give
them,
for
example,
the
one
that
if
we
find
that
their
December
31
2019
turnaround
on
one
of
the
recommendations
is
agreeable
to
us
that
shortens
our
time
line.
To
actually
do
something.
A
H
H
B
A
A
H
C
H
Is
this
is
a
an
item
that
the
city
is
requesting?
So,
as
you
know,
we
do
have
some
employees
that
change
membership
recently
from
tier
two
tier
one
based
on
their
previous
membership
in
Tier.
One.
The
request
before
you
today
is
that
you
do
request
kai-lan
to
provide
these
members
with
an
annual
statement.
We
believe
this
will
be
helpful
to
the
members
because
they
will
know
how
much
they
have
to
pay
back
and
be
helpful
to
Chiron,
so
they
don't
have
to
continue
to.
H
B
On
behalf
of
the
office
retirement
services,
we
completely
agree
with
the
city
request.
We
reach
out
to
be
a
hallmark.
The
initial
set
of
cost
per
plan
is
about
fifteen
hundred
two
thousand
dollars,
and
they
are
actually
about
forty
federated
members
that
are
impacted
by
these
classification
of
tier
2
to
tier
one
and
so
will
probably
cause
some
Abyssinia
of
2500
to
3500
a
year
combined
for
all
the
40
members
to
prepare
these
statements
and
a
complete
support
of
it
and
I
was
recommended
to
board
to
approve
the
request.
A
6C
16,
my
apologies,
so
60
is
e.
F
and
G
are
all
time
certain
for
11:30
I
know
one
minute
late.
If
I
could
beg
the
indulgence
of
police
and
fire
I've
got
maybe
three
more
minutes
on
the
committee
reports
and
then
we'll
be
on
to
you.
So
on
to
item
7
1a
oral
update
from
the
chair
of
the
investment
committee.
We
haven't
met
since
May
we're
meeting
later.
This.
B
A
B
A
C
A
A
A
C
A
A
O
I
B
I
Today,
we're
going
to
talk
primarily
about
the
remaining
project
items
which
are
member
direct,
which
is
a
website
or
the
member
and
slide
to
the
current
project
status.
Is
that
officially
the
main
intention,
ministration
implementation
project
is
completed?
There
are
the
two
remaining
items
that
are
still
being
worked.
We
transition
to
hold
on
just
one.
Second,
the
camera
is
actually
trying
to
set
the
screen.
So
when
you
turn
out
there
not
extra
Z's
in
the
screen,
so
maybe
somewhere
in
between
where
it
wasn't
where
it
is.
I
Back
on
track
fire
away,
okay,
we're
now
in
support,
as
of
August
1st,
for
all
the
functionality
that
was
delivered
by
February
1st,
which
was
the
indiscernible
processing
like
the
status
of
the
remaining
words
member
direct.
Currently,
the
vendors
making
changes
as
a
result
for
the
items
found
during
user
acceptance,
testing
we're
targeting
the
end
of
August,
remember
direct
to
be
ready
to
go
live.
What
that
means
is,
once
it's
moved
into
production,
rather
than
a
soft
launch.
We're
going
to
ask
the
retired.
I
They'll
be
invited
to
login
to
member
direct
enroll
and
login
and
use
the
system
once
that
is
successfully
successfully
completed.
Ors
will
invite
the
retirees
to
enroll.
This
will
take
place
no
later
than
October
1st,
but
could
be
earlier
depending
on
how
the
soft
launch
goes
and
the
communication
to
the
retirees
active
members
will
be
invited
later
in
the
year,
probably
an
early
December.
I
Any
questions
about
remember,
direct,
ok
measure,
app
benefit
cow,
since
this
slide
was
produced.
The
vendors
and
vendors
indicated
that
the
fixes
for
we'll
be
in
two
parts
they're
going
to
deliver.
The
first
part
will
be
in
production,
August,
30th
and
the
remaining
items
for
the
benefit
cow
fixes
are
not
yet
if
it
hasn't
been
determined
when
they'll
be
delivered,
they
just
have
not
had
time
to
estimate
them
yet
Cola
for
measure
F
will
go
in
October
and
guaranteed
purchasing
power
and
Moo
health
will
go
in
and
December
next
slide,
for.
I
I
Next
slide
what
was
accomplished
since
May
the
testers
were
trained
in
number
direct
and,
of
course,
the
testing
occurred
for
control
sheets.
We've
had
limited
progress
at
this
period
they
retired
annuitants
that
came
back
to
help
has
been
out
on
an
injury,
she's
expected
to
come
back.
The
other
retired
annuitants
that
are
here
to
help
us
on
the
project.
I've
been
very
busy
with
other
testing
and
other
RS
business
measure.
F
benefit
cows
testing
was
done
and
it
still
is
still
going
on.
I
I
Six
during
the
next
90
days,
we
will
have
the
soft
Lodge
remember,
direct
and
for
the
employees
of
the
retired
annuitants,
and
also
the
retirees
will
be
invited
within
the
next
90
days
for
measure
F
both
benefit
calcs
and
cola
will
have
passed
user
acceptance,
testing
to
be
moved
to
production
and
the
last
phase
of
measure
FG
PP
user
acceptance.
Testing
should
be
nearly
complete
in
90
days,
so
in
good
shape.
There
next
slide
7
there.
This
is
this.
Is
the
budget.
The
first
two
sections
of
the
slide
are
the
first
two
portions:
don't
change!
I
Those
are
the
budget
numbers,
the
last
section,
the
bottom
section,
the
only
thing
that's
changed
since
the
last
report
is
the
amount
of
change
request,
went
up
from
136
to
176,
so
there's
about
700
53,000
left
in
that
budget.
At
this
point
next
slide
shows
the
LR
WL
and
the
hosting
budget
I
met
you.
These
charts
show
what
was
originally
budgeted
and
what's
been
paid
today.
I
just
want
to
point
out
the
money
in
the
l.
Rw
l
budget
is
a
little
over
seven
months
of
work
laughter
that
could
happen.
I
I
Next
slide
shows
the
LRS
the
project,
implementation,
hosting
budget
and
payments,
there's
still
a
couple
payments
that
are
due
to
LRS
we're
in
discussions
with
them
now
on
final
sign-off,
there's
the
warranty
payment
of
the
remainder
of
the
whole
back
and
the
change
request
balance.
So
as
soon
as
we
finish,
the
discussions
on
acceptance
then
so
the
last
slide
just
shows
the
l
RW
budget,
that's
actual
and.
A
A
C
M
C
C
A
A
B
So
let
me
kick
off
the
discussion
with
the
chair
of
both
chairs
before
you
is
a
layman.
Re
he's
our
senior
internal
auditor.
If
you
recognize
him
is
because
before
he
was
our
scene
unit,
an
auditor,
he
was
our
financial
analyst
in
the
Investment
Group
and
so
I'm
very
thankful.
The
investment
group
was
willing
to
let
him
move
to
this
other
area.
J
So
to
start
or
memorandum,
but
I,
don't
know
what
the
chart
else
with
this
memorandums,
you
can
see
are
your
eyes
as
well.
So
this
should
summarize
the
important,
certainly
to
have
any
charge
before
we
proceed
with
actual.
Are
these
activities
so
the
how
the
Charter
is.
A
formal
document
extends
out
internal
audits,
purpose,
authority,
responsibilities
and
position
within
the
organization
so
except
the
nature
of
the
services,
including
the
expectations
and
limitations.
J
I
J
Help
the
department
to
succeed
in
fulfilling
its
mission.
So,
as
I
said
earlier,
this
Charter
is
important
to
put
into
place
before
that's
from
the
body
of
activities
or
services
to
be
provided.
So
there
will
be
a
clear
understanding
of
the
role
itself
which
we
will
discuss
later
on,
maybe
to
actually
turn
out
this
Charter
and
also
it
is
also
to
serve
as
a
service
level
agreement
to
avoid
some
confusions
with
regarding
to
like
potential
condition,
areas
and
questions
especially
way
it
access
to
sensitive
data,
especially
with
benefit
records
and
Bureau
information.
H
J
It
also
indicates
here
that
this
Charter
is
the
be
renewed
once
every
two
years,
just
to
keep
all
the
information
of
the
date
with
internal
audit
standards
and
also
to
to
make
sure
it
stays
relevant
to
the
needs
of
our
X.
The
second
part
is
purpose
ignition.
So,
as
the
heading
says,
it's
its
describes.
The
purpose
and
mission
I
think
there
are
a
lot
of
function.
So
the
purpose
of
internal
audit
is
to
provide
an
independent,
objective
assurance
and
Kisame
activity
designed
to
add
value
through
RSS
operations,
so
consistent
with
its
purpose.
C
J
The
main
difference
lies
in
the
ultimate
objective
so
assurance
it
is.
It
is
a
service
version,
you
express
an
opinion
or
a
conclusion
about
an
assertion
based
on
the
evidence
you
gathered
and
independently
excitement,
while
consulting
services
focuses
more
on
improving
the
operations,
but
this
doesn't
mean
that
you
know
audit
services
to
be
provided
or
the
public
projects
upcoming
audit
politics
in
the
next
five
years.
It
would
just
tackle
one
or
the
other.
It's
not
our
nature
exclusive.
So
in
one
project
you
can
have
both
so
I.
J
Think,
as
an
example,
let's
say
you
have
a
project,
let's
say
to
ensure
that
all
cash
dispersements
are
recorded
accurately,
so
the
objective
itself
is
under
assurance
per
se,
but
along
the
way
there
will
be
consulting
services
as
well,
because
you
may
come
up
with
a
conclusion
that,
yes,
the
cash
disbursements
are
recorded
accurately,
but
there
are
lacking
controls.
There
are
missing
controls
which
for
now
yeah
it
did
not
affect
what
is
recorded.
It
is
correct,
but
there
could
be
potential
errors
in
the
future.
So
this
is
where
our
consulting
services
comes
into
place.
C
A
B
J
This
summarizes
what
is
rising,
what
is
not
so
I
just
like
to
highlight
some
of
the
items
here.
So
the
first
item
is
have
unrestricted
access,
the
functions,
records,
property
and
personal
within
the
law,
so
this
includes
any
sensitive
or
highly
confidential
information,
but
rest
assured
that
confidentiality
will
always
be
maintained
and
the
access
would
just
be
a
read-only
access,
so
I
cannot
delete
or
edit
or
any
changed
information
or
data
system.
Then
the
fourth
one
have
fully
access
to
audit
meeting
the
board.
J
So
we
have
the
quarterly
meetings
for
the
value
committee
and
then
what
the
meetings
for
the
board
so,
but
there
will
be
instances
where
again,
I
would
have
to
kind
of
put
you
guys
through.
Even
second
Prince
calls
and
then
the
last
thing
that
I'd
like
to
appoint
it
point
in
this
section
is
what
is
not
authorized
to
do
by
internal
audit
division.
So,
basically,
to
summarize
my
cannot,
cannot
perform
operational
responsibilities
and
is
not
responsible
for
any
company
activities
are
very
independent
standards.
We
can
apply.
J
J
B
Internship
independence,
he
reports
to
me
in
terms
of
how
many
training
purposes,
and
certainly
he
were
within
in
the
audit
plan
that
he
developed,
but
he
has
direct
access
to
the
other
committee
members
and
the
committee
share,
which
is
critical
to
provide
the
highest
independence
right,
that
he
can
actually
access
the
committee
without
having
to
do
with
management.
Yes,.
C
B
J
M
For
clarification
under
this
goes
to
the
independence
point
under
H
organization.
This
correctly
states
that
IAD
will
report
functionally
to
audit
committees,
administrative
lead
to
the
CEO.
If
we
go
back
to
the
accountability,
Section
F,
those
are
all
functional,
there's
bullet
points,
I,
I,
don't
think
that
this
should
say
shall
be
accountable
to
the
Audit
Committee
of
the
board
and
designated
senior
management
for
those
functions.
Those
senior
management
should
not
be
overseeing
those
functions
to
maintain
the
independence,
so
I
would
recommend
striking
and
designated
senior
management
from
from
that
section.
J
I
J
J
A
A
J
So
in
the
memory
can
actually
see
the
adi
projects
we
have
in
the
next
five
years.
The
summary
of
it
it's
placed
on
planning
the
risk
assessments,
procedures
that
are
for
the
past
few
months,
so
it
covers
key
risk
areas
and
I
took
it
into
consideration,
imagined
and
concerns
requests
and
also
resource
availability,
because,
as
you
know,
this
is
this.
J
Skip
with
the
background
objectives,
because
so
on
page,
you
can
see
some
sort
of
a
diagram.
It
is
the
general
approach
in
planning
the
audit.
So
the
first
step
is
I
understand
the
business.
So
this
information
gathering
its
cooking
process,
so
it
generally
varies
and
then
considered
some
external
internal
factors
surrounding
a
plan
such
as
the
loss
of
operations
like
musical
codes
standards
as
well,
and
things
like
that,
and
mainly
of
course,
for
the
internal
is
to
mission
of
the
plan
itself.
J
J
J
So
that
and
I
also
read
some
documented
policies
and
procedures.
That's
already
currently
in
place,
so
I
can
know
what
are
the
processes
and
what
what
processes
can
be
uttered
about
so
in
each
process
and
also
identify
areas
and
certain
areas
that
are
within
the
process
so
analysis.
So
in
analyzing
and
determining
of
all
the
risk
identified
in
each
process,
I
could
see
the
board.
J
Also
inherent
risk
is
the
risk
over,
and
that
is
present
you
to
the
mission
of
the
process.
Well,
control
risk
is,
there
is
like
locking
our
missing
internal
controls,
so
I
determine
inherent
risk
factors
and
weighted
them
according
accordingly,
based
on
the
significance
intoxicant
that
each
has
on
the
organization.
So
the
inherent
risk
factors
are
financial
impact,
complexity
of
activities,
degree
of
automation,
volume
of
transactions,
extensive
change
and
stability,
provides
the
rules
and
regulations,
reputation
of
sensitivity
and
time
since
last
audit.
J
So
in
actually
score
in
order
to
measure
inherent
and
control
risk
factors
that
are
scoring
scale,
which
you
can
see
on
page
seven,
so
each
process
is
scored
individually,
which
under
inherent
risk
factors
and
control
these
factors,
so
I
just
need
to
take
two.
No
I
just
want
to
point
out
that
the
whole
risk
assessment
process
involves
subjective
decisions
in
each
stage,
including
the
scoring
itself.
So
it
is
based
on
the
information.
J
So
on
page
eight,
then
it
shows
the
risk
assessment
matrix.
That
summarizes
the
other
process,
budgetable
processes
in
all
divisions
and
the
risks
associated
with
it,
so
average
risk
or
is
the
average
score
of
the
inherent
race,
which
is
impacted
by
impact
management
of
impact
and
likelihood
so
weighted
score
is
just
no
average
score
times.
The
weight
like,
for
example,
the
way
for
financial
authorities,
five
percent,
so
it's
average
four
times
nine
percent
and
then
the
inherent
three
six
core.
Just
it's
just
the
sum
of
all
the
internet
risk
factors,
and
you
can
3-squared
scores.
A
C
Ability
to
vote
in
a
few
minutes.
Would
you
like
me
to
make
them
up
a
motion
on
the
police
side
Matt
like
make
it
cover.
I
move
that
we
approve
the
internal
audit
Charter,
noting
the
deleting
the
phrase
under
item
half
designated
senior
manager
for
Council
the
Lederman
suggestion.
That's
my
motion:
is
there
a
second
second
any
discussion
on
place
to
fire
signed,
if
not
all
fiber
aye,
that's
good
passes
I'll,
make
a
motion
on
the
federated
side
exactly
the
same
as
mr.
Lanza's
striking
that
language
for
mr.
Lehman's
comments.
B
C
C
Top-Notch
work
and
I
really
love
this
stuff.
I've
chaired
many
many
audit
committees,
so
you
haven't
been
able
to
really
dig
in
yet
you
will
in
the
future
on
the
controller's
score.
They're
all
just
scored
as
three
right
now
can
get
better.
So
let
me
ask
you
to
bring
something
back:
I,
don't
maybe
it'd
be
here.
It
takes
a
long
time
to
really
go
through
this.
C
It's
not
ideal
because
if
there's
a
thousand
factors
in
to
some
extent
subjective-
and
you
might
say,
I
know
that
red
dot
is
the
one
that's
farthest
out
there,
but
actually
this
little
yellow
dot
here
that
really
matters
right.
It
doesn't
quite
get
capturing
number,
so
you
will
fill
out
the
control,
I
risk
scores
and
generate
that
chart
for
us
whenever
you
have
all
the
data
right.
Yes,.
J
J
C
C
J
B
C
B
I
I
wish
we
had
more
time
to
discuss
that
because
I
think
it's
great
work
and
I'm
really
looking
for
for
the
work
of
Eileen
the
office
I
think
is
it's
really
getting
to
the
main
event
as
to
you
know,
hopefully
what
would
that
do
is
now
we've
been
sort
of
reactive
and
having
this
function
with
someone
that
skillset,
it
will
probably
help
us
be
more
proactive,
which
is
really
the
key
right.
I
mean
that's
what
we
want
to
get
to
so
I.
C
I
could
not
echo
that
more
Roberto
I
think
80%
of
companies
I
sit
on
the
firefighters,
oh
shoot,
oh
shoot
audit,
oh
shoot
and
the
really
good
ones
do
redo
doing
Lane
and
they
get
ahead
of
that.
The
proactive,
absolutely
right
and
and
I
think
that
this
kind
of
chart
is
as
good
a
way
as
any
to
get
it's
not
perfect.
But
when
you
see
a
dot
up
in
this
matters
and
or
don't
have
it
under
control,
then
that's
how
we.
B
Can
emphasize
enough
how
critical
and
important
is
for
me
that
he
has
a
train
access
to
the
article?
Absolutely?
Is
that
one
hint
to
be
comfortable
when
the
committees
to
be
comfortable
and
the
boards
to
be
comfortable?
No
only
because
you
know
it
was
my
background
when
I
said
it
professionally,
but
also
because
I
believe
heartily
that
for
him
to
get
the
job
done,
he
needs
to
have
that
direct
access
to
the
committee's
well.
C
You
know
Elaine.
If
we
see
you
every
quarter
and
what
you're
sort
of
showing
us
is
that
red,
yellow
green
dot
of
this,
as
you
fill
it
in
as
you
learn,
that's
a
track,
how
you're
making
progress
and
also
in
the
beginning,
maybe
you
took
one
out
each
meeting
say:
there's
a
red
dot
there
and
we
can
actually
start
tackling
Elaine.
J
So
for
that
one
so
aside
from
their
risk
assessment
procedure
that
was
performed
so
basically
there's
like
priority
the
you
prioritize,
like
mostly
in
the
review
years,
you
prioritize
those
that
are
riskier
than
the
others
and
then
aside
from
that,
compared
to
the
major
reason,
I
mean
one
of
the
major
reason
in
like
putting
this
like
put
together
and
what
certain
year
it's
it's
because
of
the
mission
of
the
department
itself.
So,
as
you
can
like
see
artists,
you
know
if
you
have
noticed
the
auditable
processes.
J
Other
robotic
activities
in
the
benefits
side
of
the
department
is
scattered
in
the
many
years.
That
is
because,
if
our
departments
mission
is
centered
and
providing
services
to
so
that's,
and
then
last
thing
is
the
resource
allocation
resource
availability,
so
I
actually
kind
of
like
manage
like
what
I
mean
the
plant
hours
right.
So
I
actually
just
thought
like
saying.
J
J
So
I
just
think
the
good
thing
that
you
so
basically
initially
for
now
we
have
a
five-year
internal
internal
audit
plan,
but
that
doesn't
mean
that
I
will
there
won't
be
any
landing
in
the
succeeding
years,
because
planning
is
really
a
continual
process,
as
well
as
the
risk
assessment
part
of
it.
As
you
go
on
through
the
audit.
So
every
year
I
will
reassess
the
plan
and
just
to
check
us
a
recess
the
bag
and
to
see
if
there
needs
to
be.
There
are
things
that
needs
to
be
changed
or
as
I
go
through.
J
J
C
J
B
See
if
I
can
jump
in
you
to
to
help
you
mentioned
one
of
the
five
was
the
benefits
disability
payments
right.
That
was
one
so
five
I'm
correcting
my
mistaken,
but
at
the
end
of
the
day,
we're
here
to
to
make
sure
that
members
care
their
payment
timely
correctly.
So
it's
critical,
so
he's
critical
rice,
kitty
cat
our
mission
I
mean
knowing
that
we
have
to
give
you
the
payment
hungry,
but
you
have
to
be
right.