►
Description
City of San José, California
Federated City Employees' Retirement Plan Board of April 21, 2022
This public meeting will be conducted via Zoom Webinar. For information on public participation via Zoom, please refer to the linked meeting agenda below.
Agenda: https://sjrs.legistar.com/View.ashx?M=A&ID=955005&GUID=9F28A980-FE1C-42EC-BF6B-BBE5E154B7D9
A
A
A
A
A
A
A
D
E
D
A
B
B
A
A
A
A
A
B
A
couple
of
ground
rules:
we
are
continuing
to
meet
virtually
at
this
meeting
and
are
doing
so
pursuant
to
ab361.
As
such,
all
votes
will
be
roll
call
votes.
If
you
are
not
speaking,
please
be
on
mute
to
cut
background
noise
for
discussion
items.
Each
trustee
will
have
a
turn
to
speak
in
roll
call
order
more
than
once.
If
desired,
the
public
will
also
have
an
opportunity
to
speak
on
each
item
after
trustees.
B
Members
of
the
public
wish
to
provide
comment
at
this
time,
may
do
so
by
quote
raising
your
hand,
unquote
in
the
zoom
app
or
joining
by
telephone,
by
pressing
star
9
on
your
telephone
keyboard
when
addressing
the
board
press
star
6
to
unmute
or
mute.
Please
state
your
name
for
the
record
prior
to
providing
your
comments.
B
While
city
council
normally
restricts
public
comments.
Two
minutes
per
speaker.
I
am
using
the
chair's
discretion
to
allow
up
to
three
minutes
for
speaker,
and
I
will
remind
the
trustees,
staff
and
the
public
that,
while
we
are
hearing
public
comment,
we
cannot
discuss
any
item
that
is
not
on
the
agenda
further.
F
A
B
F
F
I
think
it
would
certainly
help
people
who
want
to
participate
not
having
to
wait
for
the
whole
meeting
and
agenda
in
order
to
to
speak.
However,
there
are
on.
There
is
an
item
that
is
not
on
the
agenda.
I
did
bring
it
up
the
last
meeting.
This
is
in
regards
to
the
current
retiree
representative
on
the
federated
retirement
board.
F
F
F
Fees
every
month
month,
they
they
charge
each
member
a
monthly
fee.
In
order
to
be
a
member,
I
don't
know
what
their
purpose
is.
I
I
view
them
as
a
lobbying
group.
As
you
are
aware,
and
I'm
not
privy
to
it,
you
certainly
have
more
information
than
I
do
that
there
was
a
lawsuit
initiated
by
the
retiree
association
against
the
federated
retirement
board
and
ultimately,
the
citizens
and
the
taxpayers
of
the
city
of
san
jose
who
fund
the
federated
retirement
system.
F
I
think
this
is
an
embarrassment,
and
it's
it's
as
me
speaking
as
a
taxpayer.
I
am
I'm
extremely
disturbed
by
this
action
by
a
a
few
members
of
well.
Maybe
it's
not
a
few.
I've
understands
over
20
members
of
the
retiree
association
that
seek
to
benefit
from
this
lawsuit
and
they've
used
the
fees
that
they
charge
to
the
retirees
who
want
to
be
members
of
this
association
to
fund
the
legal
counsel
that
they're
using
to
sue
the
retirement
boards.
F
So
my
question
is-
and
I
am
asking
your
board
counsel-
to
look
into
this
as
to
why
this
association
is
being
allowed
by
the
city
council
and
to
force
the
retirement
board
to
accept
this
individual
that
was
appointed
by
this
association
that
doesn't
represent
the
majority
of
the
retirees
you
may
be
aware.
Maybe
not.
There
are
some
new
board
members
who
aren't
aware
that
the
city
council
stripped
the
voting
rights
of
the
retirees
by
not
having
elections
to
appoint
their
retiree
representative.
F
F
G
Yes,
thank
you,
mr
chairman.
Without
commenting
on
the
matter
and
public
comment
that
the
gentleman
raises
for
the
benefit
of
the
board,
I
should
advise
you
that
this
is
outside
the
jurisdiction
of
this
board.
The
selection
of
the
retiree
representative,
the
retiree
member
to
our
board,
is
entirely
within
the
purview
and
jurisdiction
of
the
city
council.
B
And
this
board
has
no
ability
to
accept,
reject
or
otherwise
influence
that
selection
process.
So
I
appreciate
the
gentleman's
comments,
but
for
the
board,
I
must
say
that
this
is
a
matter
that
is
not
within
the
subject
matter:
jurisdiction
of
this
board
and
therefore
it's
not
something
that
we
can
appropriately
put
on
a
future
agenda.
Thank
you,
mr
chairman.
B
E
The
next
thing
I
wanted
to
say
is
that's
one
of
the
reasons
that
I'm
attending
these
meetings
and
and
that
I
don't
completely
understand
what's
going
on
is
I
do
get
these
nuggets
of
information
and
pieces
and
bits
from
public
comment
and
from
other
people's
comments
and
discussions.
So
first
I'd
like
to
thank
the
chair
for
offering
the
three-minute
time
for
that
gentleman
to
speak
and
at
the
beginning
that
is
so
kind
and
helpful
to
us
in
the
public
and
then.
Secondly,
I
want
to
comment
to
the
to
the
other
gentleman.
E
B
B
Thank
you.
Okay.
Then
we
will
proceed
with
the
orders
of
the
day.
I
intend
to
take
a
break
at
around
the
10
o'clock
item
a
hour
and,
of
course,
there
will
be
a
recess
from
1
to
105
to
accommodate
the
civic
senate
tv
broadcasting
system.
I'm
asking
board
members
to
stay
on
the
zoom
call
after
the
regular
meeting
ends
to
conduct
the
special
ab-361
meetings
for
the
various
committees.
B
H
B
G
B
A
B
B
C
C
That
is,
that
is
correct,
so
no,
I
think
the
point
I
was
trying
to
make
is
I'm
glad
you
brought
that
up.
I
was
going
to
share
the
good
news,
but
you
know
there
are
snp
is
down
you
know,
seven
percent
year
to
date
or
roughly
thereabouts,
the
nasdaq
is
down
even
more
and
there's
certainly
a
bear
market
in
certain
certain
sectors.
C
As
you
know,
and
I
get
this
question
from
from
the
city
council
often,
why
are
you
not
simply
invested
in
the
s
p
500,
and
this
is
why,
and
so,
while
in
general,
the
s
p
over
long
periods
of
time
tends
to
tread
up.
There
are
periods
in
history
when,
when
the
market
is
down
as
a
whole
and
which
is
why
we
run
a
well
diversified
portfolio,
we
invested
real
estate,
real
assets,
commodities,
fixed
income
and
so
on,
and
that
really
cushions
the
blow
on
the
downside.
C
It's
a
pretty
large
conference,
attended
by
by
plan
sponsors
such
as
ourselves,
other
asset,
allocators,
endowments
and
foundations,
and
so
on,
and
some
money
managers
as
well.
It
was
very
nice
to
to
see
people
in
person.
There
was
a
lot
of
energy.
Of
course,
one
is
always
scared.
When
you
attend
these
events,
you
know
you
hope
that
they're
not
super
spreader
events
and
credit
to
trustee
orr.
C
I
think
she
was
the
only
participant
in
a
crowd
of
300
who
was
wearing
a
mask,
and
so
some
of
our
trustees
were
there
trustee
chandra
was
there.
Several
trustees
from
the
police
and
fire
board
were
also
there
and
they
stuck
my
panel
at
the
very
end
of
the
conference,
which
is
very
clever,
so
they
forced
me
to
stay
for
two
days.
C
C
So
with
that,
mr
chairman,
I'm
happy
to
take
questions
so
the
two
basis
points
that
I
gave
you
was
as
of
two
days
ago.
So
again
these
are
unofficial,
unaudited
numbers.
These
are
estimates
from
makita,
and
you
know
we
have
a
few
more
weeks
left
in
the
fiscal
year
again.
The
two
basis
points
is
positive,
but,
as
you
all
know,
that's
almost
you
know
six
and
a
half
percent
below
our
discount
rate.
So
to
that
extent
we
will
have
a
ual
from
this
year.
A
A
E
Hi,
thank
you.
I
just
want
to
say
I
mean
I'm
learning
as
I
learn
more
about
what
all
of
these
groups
are
and
what
they're
all
about
when
we
say
that
things
are
up
and
things
are
good.
I
am
concerned
that,
and
you
have
to
do
your,
I
guess
my
understanding
is
your
fiduciary
responsibility,
which
is
first
and
foremost
to
protect
the
investments,
and
that
is
your
role,
which
is
which
is
so
important,
and
I
respect
that,
but
I
just
want
to
sort
of
be
the
echo.
E
I
guess
in
the
background
of
saying
that,
when
we
do
have
real
estate
investments,
we
have
to
understand
that
embedded
within
this
portfolio
are
many.
Many
people
that
are
have
become
victims
to
really
a
a
housing
market
that
is
crushing
quite
frankly,
crushing
us
and
and
meaning
that
the
renter,
the
person
who's
renting
and
renting
the
keeps
going
up
and
up
and
up
those
who
are,
you
know
in
the
business
of
having
owned
assets.
E
This
includes
pensions.
This
includes
retirement
boards
and
things
of
this
nature.
When
you
go
up,
it
is
most
likely
often
times,
because
rents
are
going
up.
Well,
that's
good!
For
a
lot
of
people,
but
not
good
for
a
lot
of
people,
and
so
I
do
see
this
as
sort
of
one
of
those
double-edged
swords
where,
if
we
start
to
do
what
we
have
to
do,
which
is
build
supply
a
lot
of
it,
you
know
how
would
that
impact
these
funds
and
so
for
people
that
don't
have
or
don't
own.
E
E
C
That's
right,
mr
chairman,
so
before
I
hand
this
over
to
laura
just
a
reminder
to
the
board,
we
usually
follow
the
saa
on
health
care
trust.
Once
we
passed
the
pension
and
we
did
pass
the
pension
saa
through
this
board
last
month
and
now
we're
following
up
with
the
saa
on
healthcare
trust.
We
did
have
a
conversation
with
the
ic
chair,
who
was
unfortunately
not
present
today,
but
laura
will
present
this
and
we
will
take
feedback.
I
We
still
predict
that
and
foresee
that
this
asset
allocation
that
you
have
in
place
currently
should
achieve
over
a
six
percent
return.
Over
the
long
term,
we
have
taken
a
look
based
on
input
from
your
internal
investment
team
and
investment
committee.
Another
asset
allocation
option
which
would
reduce
emerging
markets
a
bit
and
we
also
typically
compare
to
a
60
40
global
equity
bond
allocation.
Just
for
your
information
on
what
that
looks
like
so,
you
know
similar
to
the
pension
trust.
I
I
I
You
can
see
that
it
has
a
long-term
expected
rate
of
return
over
the
next
20
years
of
approximately
6.4
on
average
per
year.
We
know
that
that
won't
be
totally
accurate
in
short-term
or
any
given
year,
but
we
do
expect
that
that
would
be
the
long-term
average
over
that
time
horizon
or
somewhere
close
to
that,
and
then
the
makita
standard
deviation
here
is
12.2.
I
The
difference
here
is
that
emerging
markets
equity
would
be
12
instead
of
15
and
so
that
three
percent
that
we'd
take
from
emerging
markets
equity
would
go
two
percent
to
developed
markets,
equity
and
one
percent
to
short-term
investment
grade
bonds.
That
would
lead
to
the
same
expected
return
over
the
20-year
time
period,
slightly
lower
return
on
the
10-year,
so
very
slightly
lower
return
overall,
but
rounds
to
the
same,
and
that
also
would
have
a
lower
standard
deviation.
I
We
can
take
a
look
at
the
peer
group
on
page
eight,
so
you
know,
as
we've
discussed
in
the
past-
and
it's
turned
out
to
be
a
good
thing
in
this.
You
know
equity,
bull
market
that
we've
had
for
the
past,
12
or
so
years.
But
your
plan,
your
health
care
trust,
is
a
bit
more
aggressive
or
equity
heavy
than
a
lot
of
peers.
You
can
see
the
median
peer
allocation
to
equity
is
27
or
about
half
of
what
is
in
this
plan.
There
has
been
progress
on
the
assumed
rate
of
return.
I
You
can
see
that
there's
not
a
huge
difference
in
our
expectations
for
the
current
allocation
and
mix
a
mix.
A
with
a
lower
volatility
would
be
expected
to
have
slightly
less
catastrophic
worst
case
scenario
returns
slightly
lower
probability
of
experiencing
negative
returns,
but
also
a
slightly
lower
probability
of
achieving
that
six
percent
return.
Most
of
our
clients
like
to
adopt
an
asset
allocation
that
has
at
least
a
50
probability
of
achieving
the
assumed
rate
of
return,
and
both
the
current
allocation
and
mix
day
have
that
I'll
turn
it
over
to
jared
pratt.
J
Thanks
laura
good
morning,
everybody,
so,
as
you
know,
we
like
to
look
at
risk
in
a
few
different
ways
and
some
of
these
slides
maybe
put
it
in
a
little
bit
more
of
a
tangible
sense.
So
here
we're
looking
at
historical
negative
scenarios,
we're
basically
looking
at
the
exposures
each
plan
has:
how
did
those
underlying
you
know?
Broad
markets
do
in
actual
historical
events,
and
then
we
roll
it
all
up
to
the
portfolio
level.
So
this
isn't
actually
how
fed
did,
for
example,
in
covet
or
2008.
It's
just
how
the
underlying
exposures
did.
J
So
if
these
events
were
to
repeat
tomorrow,
this
is
what
we
would
expect
to
happen
and,
as
you
can
see,
there's
not
a
huge
difference
between
the
two
mixes,
as
we
just
talked
about
they're,
both
equity
heavy,
and
so
we
would
expect
a
little
bit
larger
magnitude
losses
when
these
scenarios
compared
to
piers
and
when
we
look
at
the
positive
side.
Obviously
that
goes
that
goes
both
ways.
That's
a.
A
J
So
that
is
when
the
the
fed
raised
you
know,
I
guess
kind
of
it
surprised
the
market
with
not
purchasing
assets
to
the
extent
everybody
was
expecting,
so
they
were
starting
to
to
taper
their
market
support,
and
you
know
kind
of
surprised,
the
market
and
and
caught
everybody
off
guard
a
little
bit
and
markets
didn't
respond.
Well,
I
don't
know
laura
if
you
want
to.
I
J
I
That's
a
perfect
description.
You
know,
I'm
not
exactly
sure
who
came
up
with
the
the
term
tapered
interim
having
small
children.
Tantrum
is
a
word
we
used
frequently
but
yeah.
It
was
just.
I
think
it's
a
good.
We
think
it's
a
good
historical
scenario
to
look
at
because
we
are
in
another
market
environment.
Where
you
know
the
fed
is,
is
sort
of
withdrawing
some
of
the
support
in
different
ways
that
it's
provided
the
market
recently.
So
it's
just
one
of
those
historical
scenarios
that
we
want
to
take
a
look
at.
A
I
A
I
I
All
of
the
strategies
in
your
portfolio
haven't
been
around.
You
know
in
obvious
historical
market
environments,
so
we
would
hope
that
you
all
have
you
know
you
have
some
active
management
in
the
portfolio
and
that
those
managers
can
protect
on
the
downside.
So
this
is
sort
of
beta
returns
for
the
asset
allocation,
the
asset
classes
that
are
in
it
for
these
different
historical
scenarios.
J
Thanks
for
the
questions,
everybody
so,
as
you
can
see
with
the
side,
lower
volatility
expected
from
mix
a
mix,
a
taps,
the
brakes
a
little
bit
more
on
the
down
markets,
but
just
slightly
here
we
can
look
at
on
the
next
page,
going
the
other
way
so
very
strong,
positive
returns
when
equity
markets
rally
again
mix
a
doesn't
quite
keep
up
as
much
as
the
current
plan.
But
you
know
again,
the
difference
is
very
small.
J
Another
thing
we
can
look
at
is
look
at.
You
know
current
valuations
interest
rates
and
and
do
more
of
a
shock
analysis
on.
What
do
we
think
would
happen
if
rates
in
this
case
rose
quite
a
bit
or
credit
spreads,
blew
out
or
equities
declined,
and
so
again
the
equity
sensitivity
in
both
mixes.
We
would
expect
the
results
you
see
here
where
credit
spreads
and
equities
falling
would
have
a
large
impact
and
then
on
the
next
slide.
J
That
kind
of
goes
the
other
way
as
well,
then,
at
the
bottom
equities
going
up,
30
percent
would
bring
the
portfolio
along
quite
a
bit
considering
the
heavy
equity
makes
inside
and
then
finally
another
way
we
can
look
at
it
is
more
broad
level.
You
know,
as
we
know,
the
market's
always
pricing
in
expectations,
and
so
the
market
is
responding
positively
or
negatively
to
surprise
us,
and
so
here
we
look
at
four
surprise
factors.
J
You
know
what
happens
when
the
market
is
surprised
by
interest
rates
or
by
inflation,
by
growth
estimates
or
by
systemic
events
like
2008,
and
here
on
the
of
page
15.
You
can
see
the
response
to
that,
so,
probably
not
surprisingly
their
portfolio
when
this
was
the
the
same
case
for
the
pension
plan,
the
biggest
response
is
to
grow,
surprises
or
systemic
risk,
and
the
reason
we
take
those
risks
is
highlighted
in
this
bottom
bullet
point,
which
is
that
those
are
the
you
know.
Those
are
the
highest
compensated
risks
as
well.
J
B
C
C
C
A
A
C
That's
a
great
question:
these
are
all
very
public
and
liquid
assets.
As
laura
mentioned,
we
have
no
private
assets
in
this
portfolio,
so
the
transition
is,
is
pretty
simple,
but
you
know
you,
you
asked
about
costs
and-
and
there
are
transactions
costs
every
time
we
make,
and
you
know
they
might
be
trivial,
but
you
know
in
the
long
run
they
do
add
up.
So
there
will
be
some
transactions
costs.
You
know
there
may
not
be
huge
transactions
costs,
but
you
know
when
you
buy
and
sell
securities
you
do.
A
A
H
H
I
think
the
focus
is
around
this
reduction
in
emerging
markets,
equity
and
I'm
trying
not
actively
and
intentionally
trying,
not
to
bring
any
of
my
own
personal
biases
and
emotions
right
to
the
conversation.
But
what
I'm
seeing
is
you
know
a
reasonable
reallocation
and
from
an
expected
return
perspective.
I'd
be
really
quite
comfortable
as
well
with
mix
a
but
I'm
agnostic
in
that.
If
we
were
to
hold
current,
that's
that's
just
fine
as
well.
A
I
Okay,
I
would
just
mention
you
know
the
way
that
you
invest
in
emerging
markets
matters
and
you
all
invest
through
a
fund.
So
the
nice
thing
about
a
fund
is
that
transaction
costs
are
shared
across
everyone
in
the
fund
and
if
you
have
a
lot
of
investors,
it
ends
up
being
trivial
and
you
all
end
up.
You
know
negatively
benefiting
from
that,
where
negatively
being
affected
by
that
when
somebody
else
sells
out,
but
making
that
relatively
small
move
from
15
to
12,
I
think
we
should
think
more
about
potential
investment
implications.
I
C
And
and
trustee
keller
is
absolutely
right-
I
mean
I
didn't
realize
the
cost.
Obviously,
but
you
know
if
you're,
if
you're
buying
and
selling
em
stocks
directly,
the
bid
asks
spread
can
be
pretty
wide
right
compared
to
stocks
and
you
can
run
up
a
lot
of
transactions
costs.
But
a
lot
of
these
are
invested
passively
and
through
funds.
So
so
what's
passed
on
is
is
and
that's
what
I
meant
by
trivia.
J
C
C
B
C
H
I,
I
would
add
two
sorry
laura
yeah.
I
mean
I
think
it
really
depends
on
the
time
period,
trustee
horowitz
as
well.
So
I
think
it's
directionally
correct
or
with
the
relative
confidence
that
your
statement
is
is
valid
and
I
also
would
probably
add
I
feel
pretty
comfortable
with
respect
to
the
pathway
of
of
getting
from
point
hct
current
to
mix
a
given
the
team's
experience
with
just
running
reallocations.
That's
sort
of
it's
not
something
new
and
different
and
terribly
hard
for
them.
B
B
B
Last
month,
when
we
reviewed
the
main
plan,
we
discovered
that
our
allocation
to
emerging
markets
was
almost
the
highest
of
all
of
our
peer
groups,
so
we
are
kind
of
over
committed
currently
to
emerging
markets,
and
while
they
do
have
constantly
had
a
higher
expected
return
over
the
last
10
years,
I
think
they've
rather
disappointed
and
they
haven't
delivered
the
higher
expectations
that
that
many
had
for
them.
So
I'm
quite
comfortable
moving
to
mix
a
especially
in
in
sight
of
the
fact
that
it
is
a
relatively
small
change
for
the
portfolio
overall.
B
B
B
B
D
Thank
you,
mr
chair.
So
if
you
bear
with
me
just
a
couple
of
minutes,
first
and
foremost,
I
wanted
to
remind
the
board
that
staff
has
been
in
a
hybrid
approach.
The
last
month
we
started
in
mid-march,
and
so
everyone
is
coming
to
the
office
pretty
much
two
days
a
week
at
the
office
and
the
rest
working
remotely.
D
Late
last
week,
so
our
doors
are
open
from
9
to
4..
We
haven't
really
advertised
it,
but
they're
open.
Although
we
continue
recommending
to
members
that
would
like
to
come
by
the
office
to
the
extent
possible
to
make
sure
that
they
reach
out.
So
they
can
make
appointments
for
their
particular
discussion
on
a
time
so
that
we
can
spread
the
the
members
coming
over
for
meetings.
So
just
wanted
to
share
that
with
you.
I
also
wanted
to.
D
I
don't
know
if
you
guys
had
a
chance
a
chance
to
see
the
newsletter,
but
he
was
recently
named
one
of
trustee
inside
top
transformational
leaders
over
the
last
five
years
and
trustee
inside
is
the
world
largest
limited
partner
network,
bringing
global
investment
and
market
information,
professional
connections
and
news
to
institutional
investors.
So
again
we
just
wanted
to
publicly
congratulate
our
cio
for
that
recognition.
He
does
a
lot
of
work
and
I
know
he
a
lot
of
these
accomplishments.
He
also
shared
with
the
great
job
and
support
of
the
investment
staff.
So
congratulations.
D
D
I
also
wanted
to
share
with
you
that
our
new
network
technician
started
last
month,
so
it's
been
almost
a
full
month
that
has
been
working
at
the
office.
I
get
to
see
him
whenever
I
come
to
the
office
because
for
some
reason,
when
I
warm
up
my
lunch,
I
do
it
about
30
seconds
before
he
gets
there.
So
you
always
have
to
wait
for
me.
I
also
wanted
to
share
with
you
that
our
process
for
the
selection
and
recruitment
of
the
I.t
manager
is
in
the
last
stages.
D
D
D
D
I'm
assuming
by
now
you
have
done
so,
but
the
conflict
of
interest
filing
with
the
city
click
at
the
city
of
san
jose
was
due
april
1st.
I
hope
you
all
had
a
chance
to
work
through
it
and
file
it.
If
you
haven't
please
reach
out
and
let
us
know
so,
we
can
help
you
finalize
it
and
file
it
as
soon
as
possible,
because
again
it
was
due.
On
april
1st.
D
The
staff
also
asked
me
to
share
with
you
the
the
reminder
about
the
waiver
of
recourse
fees
to
be
paid
for
the
fiduciary
insurance,
but
I'm
going
to
leave
that
discussion
to
thread
it
down
on
5
e,
there's,
an
item
on
physical
insurance
and
weber,
recourse
fees
which
will
address
that
there
and
further
down,
there's
also
a
5g
fiduciary
education
to
be
presented
by
general
counsel,
where
he
will
speak,
probably
on
those
audacity
on
those
issues
as
well.
So
with
that.
That
concludes
my
comments.
Mr
chair,
I'm
happy
to
answer
any
questions.
B
K
K
If
there
is
a
downturn
we
have,
we
have
enough
to
smooth
that
out
and
we've
also,
I
also
asked
about.
Is
there
any
possibility
for
using
some
of
that
money
to
pay
down
our
unfunded
liability
on
the
pension
and
they
are
working
on
a
policy
proposal
that
they're
going
to
be
coming
to
us
in
the
fall
with
and
and
they're
also
prioritizing
moving
the
services
that
have
been
covered
for
many
years
in
with
one-time
funds
moving
those
into
the
ongoing
fund
bucket,
as
well
as,
of
course
restoring
services?
K
And
I
think
many
of
you
know
our
public
safety
police
department
in
particular,
has
been
the
as,
as
we
say,
the
the
most
thinly
staffed
police
department
of
any
big
city.
We
we
need
to
add
to
it.
It
always
was,
and
even
even
by
adding
250
additional
officers,
it
still
will
be,
but
it
would
give
us
a
lot
more
resources
to
help
with
many
of
the
issues
that
have
been
cropping
up
since
the
pandemic.
K
And
finally,
if
you're
interested
in
in
delving
more
deeply
into
the
budget,
the
study
sessions
will
start
on
may
11th
and
we
will
be
talking
about
them.
There's
a
there's,
a
whole
schedule
of
that,
and
I'm
sure
that
roberto
makes
that
available
to
you
all.
But
the
overview
of
the
city
budget
will
be
on
wednesday
morning
may
11th.
If
you
want
to
get
get
the
overview
and
then
delve
into
the
draft
documents
from
there
and
that's
it
for
my
report.
D
K
E
Thank
you.
I
just
want
to
say
thank
you
to
councilmember
davis.
That
was
a
really
succinct
but
very
informative
report,
and
I'm
really
grateful
it's
very
helpful
to
know
dates
of
times
that
I
can
attend
meetings
with
really
important
important
items
like
the
budget.
So
thank
you
for
that,
and
thank
you
for
the
information
about
the
excess
and
then
also
bringing
up
our
law
enforcement
that
I
am
so
so
hoping
we
can
make
sure
to
continue
to
increase
year
after
year.
Our
are
forced.
Thank
you.
G
Sorry
about
that
I
was
going
to
ask
council
member
davis.
Has
there
been
a
change
in
the
last
week
or
two
in
the
council's
resolution
regarding
social
distancing,
and
I
was
confused
with
whether
or
not
the
going
to
voluntary
mask
mandate
is
a
change
in
policy
by
the
council,
whether
that
also
affected
the
recommendation
to
maintain
social
distancing
in
city
meetings.
K
We're
still
thanks
harvey.
We
are
still
doing
remote
meetings,
so
there
hasn't
been
a
change
in
policy,
we're
still
doing
remote
meetings
for
committees,
and
we've
asked
that
question
of
city
staff
and
the
city
manager's
office
has
indicated
that
they
think
that
we
will
be
doing
committee
meetings
remotely
until
after
the
july
break,
so
that
we
would
come
back
fully
in
person
in
august.
D
D
D
That
would
require
us
to
approve
the
maximum
contract
amount
at
this
last
year
from
550
to
about
35
40
000
we
asking
for
50
000,
just
as
a
buffer,
doesn't
mean
that
we
will
explain
the
full
amount,
but
just
in
case
something
else
come
up.
We
can't
think
of
anything
at
this
point,
but
in
any
in
a
nutshell,
we're
just
recommending
approval
of
an
additional
affiliate
test
and
increase
so
that
they
can
complete
that
work.
D
For
the
final
year
of
the
audit,
and-
and
we
can
have
this-
this
relationship
with
grant
thornton
that
has
been
actually
a
very
productive
and
a
positive
one.
I
think
they
do
excellent
work,
which
is
one
of
the
reasons
that
we
have.
I
agree
over
the
years
to
some
of
the
requests
on
increase
or
their
cause
mind
you
to
some
extent
the
request
has
been
considerably
higher
than
the
amounts
that
we
have
brought
forward
to
you
boy
in
the
past.
D
A
B
D
Thank
you,
mr
chair.
This
is
just
straightforward:
a
request
to
extend
the
contract
of
our
communication
consultant
for
another
fiscal
year.
We
have
enough
funds
in
the
original
contract
to
cover
the
costs
associated
with
their
services
for
the
upcoming
fiscal
year.
So
again,
this
is
just
a
request
to
extend
their
services
for
the
fiscal
year.
22-23.
B
B
H
D
D
D
So
it's
not
only
helpful
to
have
a
discussion,
but
also,
I
think,
council,
as
part
of
his
fiduciary
education
presentation
later
on.
He
will
comment
on
that
as
well.
In
any
event,
there
are
three
different
types
of
insurance
that
we
are
requesting
here
and
the
cost
associated
with
that
is
the
one
that
is
explained
in
the
memo
I'm
happy
to.
D
Well,
I
shouldn't
say
I'm
happy
because
I
don't
know
that
I
could
answer
those
questions,
but
if
you
do
have
any
questions,
we
will
be
happy
to
address
them
either
benji,
who
works
more
directly
with
the
broker
and
has
more
knowledge
of
this
area
than
me
or
ultimately,
efficiently.
Council
harvesting
men
also
have
information
on
it.
D
B
D
B
I
did
ask
for
it
to
be
brought
up
as
an
agenda
item
simply
to
highlight
the
fact
that
this
is
an
important
insurance
protection
for
all
trustees,
and
it
is
something
that
the
trustees
must
pay
for
out
of
our
own
pocket.
So
we
want
to
make
sure
all
trustees
were
aware
of
that,
and
this
protects
us
in
the
unlikely
event
that
we
are
sued
personally,
as
as
trustees
of
the
board
for
our
volunteer
activities.
B
B
G
G
They
always
do
it
with
a
reservation
of
rights
that
if
it
turns
out
later
that
it
was
not
a
covered
claim,
then
they
have
recourse
back
against
the
individual
that
they
advance
the
money
for
to
claw
back.
If
you
will
any
amount
that
they've
paid
that
turns
out
was
not
covered
claim
under
the
policy.
G
It's
not
priced
like
a
premium.
It's
done
more
as
a
courtesy,
essentially
almost
to
the
trustees
in
these
situations.
So
it's
a
very,
very
inexpensive
way
of
buying
you
peace
of
mind
that,
even
if
it
turned
out
they
didn't
have
to
cover
the
claim
they
will
never
be
able
to
come
back
against
you
for
a
reimbursement.
G
G
C
C
G
For
example,
if
a
fight
were
to
break
out
on
the
dais,
we
don't
that's
not
going
to
work
virtually,
but
if
we
were
all
back
in
a
meeting
in
a
room
and
a
heated
conversation
were
to
happen
between
two
trustees
by
the
way,
this
is
not
far-fetched.
I've
had
it
in
other
systems
and
one
trustee
intentionally
slaps
another
trustee.
G
That
would
be
considered
an
act
out
of
the
course
and
scope
of
the
responsibilities
of
acting
as
a
trustee.
It
would
be
a
personal,
intentional
tort
if
you
will
and
the
insurance
would
not
cover
you
if
the
trustee
who
was
slapped
brought
a
personal
lawsuit
for
battery
assault
and
battery
against
the
offending
trustee,
the
offending
trustee
would
not
be
able
to
claim
insurance
coverage
for
that
kind
of
an
intentional
wrongful
act.
G
B
G
You
are
not
personally
liable
for
making
decisions
in
the
course
of
the
running
the
business
of
a
public
employee
pension
fund
and
making
the
decision
whether
to
sue
or
not
sue.
The
actuary,
for
example,
was
a
business
decision
that
is
well
within
the
discretion
of
the
board
and
therefore
could
not
lead
to
personal
liability
of
any
board
member.
B
B
E
Everybody
knows
that
that's
just
what
that
is.
Second
thing,
I
would
say,
is
build
in
some
sort
of
model
for
when
you
retire
from
the
board,
that
is
returned
to
you.
If
it's
just
a
placeholder
and
the
reason
that
I
bring
this
up,
it's
so
important
to
me
is,
I
think,
we're
being
nickeled
and
dimed
to
death
by
these
insurance
companies
drives
me
bananas
kind
of
stand
up
for
yourselves
and
say
I'm
a
volunteer.
E
I
mean
you
are
doing
something
that's
necessary
for
the
community,
for
your
fellow
co-employees
that
you
worked
with
you
shouldn't
have
to
pay
a
dime.
We
should
be
paying
you
so
second,
I
want
to
comment
on
the
fact
that
the
five
percent
that
you
mentioned
in
that
letter,
the
ceo,
can
just
go
ahead
and
you
know
say:
that's
fine!
Well,
it's,
coincidentally,
for
being
raised
4.9
percent,
so
I
would
highly
recommend
you
change
it
to
2.5
percent
and
hopefully
the
next
time
the
insurance
company
comes
to
you.
E
You
can
say:
okay,
we'll
take
2.5
percent.
We
have
to
start
getting
smarter
and
more
ruthless
because
the
numbers
are
getting
larger
and
larger
and
larger
and
5,
not
a
small
number.
Once
you
start
adding
this
up
and
and
insurance
is
just
gonna,
keep
going
up
and
they're
gonna
take
whatever
they
can.
So
please
consider
changing
that
rule
so
that
you
can
discuss
it
at
the
board,
change
it
to
2.5
or
three
percent
that
the
ceo
is
allowed
to
go
ahead,
and
you
know
authorize
that
those
are
my
comments.
Thank
you.
B
A
A
A
A
B
B
B
A
B
B
G
You,
mr
chairman,
and
thank
you,
members
of
the
board.
We've
been
we've
sort
of
been
postponing
a
little
bit
this
annual
presentation,
so
we've
got
a
full
complement
of
the
board
and
we
finally
have,
even
though
trustee
chandra
can't
be
with
us
today.
I'm
delighted
that
we
now
have
full
seven
membership
on
the
board,
which
is
real,
really
important,
as
you
can
see,
for
the
work
not
only
the
board
but
its
committees
as
as
well.
G
G
G
G
Putting
this
role
of
trust
and
responsibility
which
you
you
take
on
and
you
take
on
voluntarily,
but
it's
a
very
different
kind
of
a
relationship
and
one
that
requires
heightened
duty
of
care
and
loyalty
and
we'll
talk
about
that.
What
I'd
like
to
do
is
if
I
may
share
my
screen,
I
don't
know
who's
in
charge,
linda
or
marty,
or,
if
you
could,
let
me
share
my
screen.
Let
me
know
when
that's
possible
and
I'll
put
my
slide
deck
up.
G
G
G
G
The
law
recognizes
that,
if
you're
going
to
take
on
this
kind
of
responsibility
and
listen
you're
pretty
much
volunteers
in
doing
this,
when
you
take
on
that
kind
of
fiduciary
responsibility,
the
law
gives
you
broad
discretion
in
which
to
exercise
your
judgment,
and
the
irony
here
is
that
the
key
is
that
is
not
your
personal
exercise
of
judgment.
It's
how
you
all
act
together,
collectively
to
make
decisions
and
exercise
your
judgment,
and
so
the
law
imposes
on
you.
A
duty
of
prudence.
G
G
All
of
that
falls
into
this
diversification
obligation
and
the
final
thing
is
that
may
seem
sound
simple,
but
it's
tough
sometimes,
and
that
is
you-
have
a
fiduciary
obligation
to
follow
the
law.
The
law
in
this
instance
is
the
state
constitution,
the
city
law
of
city
of
san
jose,
the
internal
revenue
code.
Remember
we
administer
a
tax,
qualified
public
employee
pension
plan.
G
In
exchange
for
that,
the
irs
extracts
an
obligation
from
us
that
says
you
have
an
obligation
as
a
trustee
to
follow
your
planned
documents
and
the
document
plan
documents
are
all
the
governing
instruments
of
this
system.
It
can
be
our
bylaws,
it
can
be
our
policies
and
charters
of
committees
these
and
the
law
itself.
G
So
we
have
an
obligation
to
follow
the
planned
documents.
If
we
don't
follow
the
planned
documents,
the
irs
has
the
right
to
pull
our
tax
qualified
status
or
penalize
us
for
not
doing
that,
and
that
would
not
be
an
appropriate
use
of
the
assets
of
the
system
going
back
up
to
the
exclusive
benefit
rule
right
here.
G
Excellent,
all
right,
no,
it
wasn't
easy
to
find
these,
but
anyway,
this
is.
This
is
as
graphic
as
I
get
as
a
lawyer,
so
this
is
it.
This
is
the
animation
that
you're
gonna
get
in
the
slide
deck
so
enjoy
it,
but
I
wanted
to
gank
so
under
each
pillar,
if
you
will
under
each
fiduciary
responsibility,
I
kind
of
gang
some
things
that
you
know
that
sort
of
belong
in
that,
for
example,
under
loyalty
to
members,
we're
going
to
talk
about
conflicts
of
interest
in
the
in
avoiding
wearing
two
hats.
G
When
you
come
to
this
board,
you
only
wear
a
single
hat,
and
that
is
the
representation
of
what
is
in
the
members
best
interest,
but
also
part
of
your
loyalty
to
members
includes
attracting
and
retaining
capable
staff
and
providing
superior
member
service
minimizing
the
risk
of
loss
for
the
system,
because
that
does
not
endure.
So
you
don't
get
to
go
out
and
gamble
with
the
assets
when
it
was
1984
by
the
way
when
pension
trustees
in
california
were
first
allowed
to
invest
in
the
equity
markets.
G
G
The
legislature
allowed
for
the
first
time,
investment
in
the
equity
markets,
but
that's
when
they
also
put
in
the
constitution
that
the
obligation
was
to
minimize
employer
contributions,
and
that
didn't
mean
that
we
had
an
obligation
to
keep
contribution
rates
low.
It
meant
that
we
could
not
gamble
with
the
assets
in
the
equity
market.
G
There
was
a
great
fear
that
we
would
take
on
outsized
risks
as
pensions
now
that
we
could
invest
in
the
equity
markets
and
it
was
constantly
had
to
be
reined
in
by
balancing
risk
with
expected
reward,
so
that
became
part
of
the
loyalty
to
members
using
the
assets.
I
would
talk
it's
important
to
understand
whenever
we
approve
a
contract,
for
example,
like
we
did
earlier
today,
whether
they're
extensions
or
the
auditor's
contract,
we
have
to
ask
ourselves
consciously
or
unconsciously.
G
Is
this
a
reasonable
expense
of
administering
the
fund?
Should
we
pay
additional
amounts
in
you
know?
Do
we
get
the
bang
for
the
buck
that
we're
supposed
to
be
getting?
If
it's
not-
and
I
think
we
had
this
conversation
as
well?
Some
of
you
raised
the
issue
when
we
were
talking
about
the
healthcare
trust
as
to
whether
or
not
the
transaction
costs
justified
moving
to
mix
a,
for
example.
G
G
Prudent
care
really
goes
to
our
governance
policies.
How
we
manage
ourselves,
how
we
create
a
record
that
we're
exercising
discretion
and
good
judgment
under
the
circumstances,
the
things
that
we
do
to
be
transparent
to
have
our
board
meetings
open
and
open
to
public
comment.
For
example,
we've
taken
some
good
steps
to
encourage
that
recently
proven
care
of
a
five
billion
dollar
pension
fund
also
includes
the
board
delegating
responsibility
to
staff
and
consultants.
G
You
meet
once
a
month
only
for
11
months,
actually,
one
month
you
don't
meet
in
july,
it
would
not
be
prudent.
It
would
not
be
possible
for
this
board
to
run
this
pension
fund
for
the
benefit
of
members
one
day
a
month
in
exercising
your
own
judgments,
despite
many
of
you
having
expertise
and
investments,
for
example,
you
could
not
do
it
meeting
once
a
month,
and
the
only
way
you
can
accomplish
this
in
a
prudent
manner
is
to
engage
knowledgeable
staff,
knowledgeable
consultants
to
help
carry
out
the
responsibilities
of
the
board.
G
That
is
part
of
the
exercise
of
prudent
care
and
expertise,
and
then
you
monitor
what
they
do
and
evaluate
what
they
do.
You
evaluate
your
cio
and
ceo
annually
and
staff
and
they
evaluate
staff.
So
this
is
all
part
of
a
prudent
process
that
fiduciaries
are
required
to
follow
talked
a
little
bit
about
diversifying
assets.
G
G
G
G
These
are
all
in
the
plan
documents.
They
are
not
with
your
response.
This
should
give
you
some
relief
that
you
it's
not
up
to
you
to
design
this
plan,
it's
up
to
you
to
carry
it
out,
you're
the
trustee,
not
the
trustor,
okay,
the
city
is
the
trustor
and
they've
created
the
trust
with
the
terms
of
what
the
city
and
its
unions
and
its
employees.
G
G
But
it's
an
additional
obligation
that
you
have
that
your
counterparts
and
private
pension
funds
do
not
have,
and
it's
simply
a
I
put
this
down
as
a
marker
for
you
to
keep
in
mind
that
you're
acting
as
a
public
official
which,
in
my
view,
is
a
heightened
even
heightened
level
of
public
trust
in
how
you
conduct
yourselves.
As
fiduciaries
of
the
system.
G
G
G
Is
that
a
hand
up
mark?
Oh
okay?
No
no
mark
mark!
Oh
I'm
sorry,
mark
linder.
Mark
linder,
for
example,
comes
to
the
board
via
a
retiree
vote.
If
you
will
some
of
the
others
of
you
who
are
active
employees
julie,
for
example,
avasti,
for
example,
come
to
this
board
because
of
your
relationship
as
an
active
employee
of
the
city.
G
G
G
There
are
retiree
organizations,
there
are
unions,
the
general
public
and
the
taxpayers
have
interests
in
our
system
even
so
far
as
consultants
and
vendors
we're
all
stakeholders,
I'm
a
stakeholder
in
this
system,
because
I
I'm
under
contract
providing
services
to
you.
But
you
don't
owe
me
if
we
do.
In
fact,
I
owe
you
fiduciary
responsibility.
A
J
G
G
That
that
take
it
out
of
the
abstract
and
put
it
into
something
that
maybe
you
can
get
your
arms
around.
Obviously
the
first
one
is
adhere
to
your
fundamental
fiduciary
duties.
It's
a
little
abstract,
but
we've
talked
about
it.
Second,
obeying
conflict
of
interest
was
but
the
rest
of
these
are
conduct
type.
You
know
reminders
avoid
activities
that
improperly
influence
your
judgment
or
are
inconsistent
with
your
duty
to
act
in
the
best
interest
of
all
members,
and
this
could
even
be.
G
You
know
meeting,
for
example,
discussing
the
business
of
the
board
with
other
groups
and
listening
to
them
in
you.
We'll
talk
about
some
of
those
decisions
that
you
make
that
are
tough.
You
don't
want
to
be.
You
don't
want
to
appear
to
be
prejudiced
or
biased
in
any
way
in
how
you
conduct
yourself
on
the
board.
G
If
you
have
a
conflict
of
interest
number
four,
you
should
disclose
it
and,
if
necessary,
you
have
to
recuse
yourself
from
participating.
We
will
do
another
program
on
conflicts
of
interest
because
it's
too
much
to
get
into
in
this
one
sitting,
but
I
want
to
do
another
program
for
you
on
conflicts
of
interest,
so
that
you
get
a
better
idea
about
the
pitfalls
that
you
that
could
befall
you
and
how
to
handle
those
when
they
come
up.
G
Take
you
on
a
trip
somewhere.
This
is
these
are
items
of
value
that
you
cannot
accept
and
there's
very
little
tolerance
for
these
kind
of
things.
You
need
to
be
very
careful
with
the
legal
limits
on
those
another
again,
fairness
obligation
is
honoring
the
quiet
period
during
manager
and
vendor
searches.
G
Number
seven.
You
need
to
avoid
using
your
public
position
for
private
gain
or
influence.
We
have
had
pension
trustees
and
other
systems
spend
a
lot
of
time,
especially
in
the
investment
world,
developing
information
and
using
staff,
for
example,
to
develop
information
that
they
are
then
going
to
use
in
their
private
business.
G
G
Don't
make
our
closed
sessions
leaky,
leaky
situations
where,
as
soon
as
you
get
out,
you
pick
up
the
phone
and
call
somebody
at
the
union
or
you
call
somebody
at
the
city
at
city
hall
and
say
wow.
We
just
made
a
decision
to
do
x,
y
and
z.
I
want
you
to
know
about
it.
Can't
do
that
part
of
the
reasons.
G
So
these
kind
of
things
engender
respect
among
board
members
as
well
as
respect
for
those
who
are
serving
part
of
that
also
is
conducting
yourself
with
civility
and
respect
at
board
meetings.
I
will
tell
you
that
was
it
10
12
years
ago,
when
the
markets
were
in
the
dumper
and
funds
were
losing
asset
value
in
the
great
recession
that
the
level
of
civility
and
respect
among
boards
like
this
was
seriously
compromised.
G
People's
feelings
were
running.
High
people
were
upset
with
each
other.
Very
little
business
got
done
because
people
on
boards
like
this
couldn't
get
along
together.
Fortunately,
in
better
times,
that's
that's
resolved
itself.
We've
never
had
that
kind
of
issue
here,
but
I've
had
other
boards.
I've
had
other
state
boards
that
I
work
with
have
board
members
who
actually
attack
each
other
physically
during
board
meetings
and
file
police
reports
against
each
other.
G
G
You
talk
all
the
time
about
what
is
the
appropriate,
assumed
rate
of
return,
the
discount
rate,
and
that
can
impact
the
city's
bottom
line
and
impact
your
you
know
the
employees
contribution
rates,
that's
really
a
hot
button
issue
and
when
you're
making
those
decisions,
we
need
to
keep
coming
back
to
what's
in
the
best
interest
of
long-term
funding
of
this
system
for
the
members
of
the
system,
not,
oh,
my
god.
What's
the
impact
going
to
be
on
the
city's
budget,
we
can
take
that
into
account,
but
that's
not
your
first
and
foremost
obligation.
G
G
G
G
Issues
like
this
in
constructing
its
portfolios
has
to
first,
in
my
view,
has
to
first
come
to
the
determination
that
there
is
a
rational
and
logical
nexus.
If
you
will
a
connection
between,
let's
take
an
environmental
issue,
an
environmental
issue
and
the
financial
performance
of
the
portfolio,
so,
for
example,
this
is.
This
comes
up
all
the
time
now,
especially
now
with
well.
Let
me
take
one
that's
not
quite
so
currently
in
vogue,
which
is
the
divestment
from
fossil
fuel
companies.
G
G
G
Because
if
you're
only
doing
it
as
a
policy
matter,
if
you're
saying
I'm
going
to
no
longer
diversify
a
portion
of
my
portfolio
into
a
particular
sector
of
the
economy,
but
I'm
going
to
do
that
because,
as
a
matter
of
public
policy,
I
I
don't
like
them.
I
don't
like
that
sector,
then
you're,
not
putting
the
performance
of
the
fund
first
and
foremost
you're
attempting
to
accomplish
another
public
policy
goal,
see
what
I'm
saying
with,
for
example,
let's
take
fossil
fuels.
G
I
think
that
that'll
help
there
is
obviously
a
current
movement
to
ask
retirement
systems
retirement
boards
to
divest
holdings
in
the
biggest
polluters,
from
based
on
fossil
fuel,
whether
it's
fossil
fuel
extraction
or
transportation
or
whatever.
It
is
because
it's
a
harmful
industry.
Arguably
that
will
hurt
the
welfare
and
lead
to
climate
change
and
adverse
effects.
G
G
A
C
C
G
A
G
Is
the
bill
it's
in
the
appropriations
committee
right
now?
It's
moving
quickly
and
it's
listed
as
an
urgency
bill.
So
it'll
become
law
soon
if
it
passes
and
gets
signed
into
law,
and
basically
what
it
says
is
that
california
pension
funds
not
san
jose,
because
this
is
a
charter
city
fund
and
for
better
or
for
worse
we're
excluded
from
the
coverage
of
the
rest
of
the
pension
funds.
G
Public
pension
funds
in
california
under
this
bill,
but
basically
it
would
require
pension
funds
to
stop
investing
in
businesses
or
hiring
companies
as
vendors,
for
example,
that
have
active
business
operations
in
russia
unless
they
take
what's
called
substantial
action
to
stop
those
operations
down.
This
is
basically
would
be
every
company
in
the
fortune
500
and
beyond.
G
G
The
real
key
here,
however,
and
why
this
is
a
teachable
moment
for
us
whether
or
not
it's
going
to
impact
san
jose
or
not,
is
that
is
this?
What's
called
a
savings
clause,
and
it
says
the
board
doesn't
have
to
do
any
of
this
unless
it
determines
that
divestment
from
these
companies
is
consistent
with
its
fiduciary
duties,
and
that
will
trigger
this
conversation
and
the
question,
so
is
it
consistent?
Would
it
be
consistent
with
your
fiduciary
duty
to
stop
investing
in
400
of
the
fortune
500?
C
So,
since
this
is
all
very
hypothetical,
I'm
I'm
going
to
give
it
you
know
so
the
way
I
see
my
my
duty
and
our
duty
and
council
leaderman
can
can
correct
me.
If
I'm,
if
I'm,
if
I'm
mistaken,
is
our
job
is
to
maximize
our
risk
adjusted
returns
and
our
job
is
to
make
sure
that
our
pensioners
get
paid
right,
and
for
that
you
know
we
need.
C
We
need
to
have
the
full
set
of
investments
that
are
available
to
be
able
to
produce
those
returns,
and
if
I'm
able
to
pay
my
pensioners
and
then
they
can
vote
with
their
dollars.
If
they
get
their
monthly
pension
checks,
then
people
can
have
their
own
pet
projects
right,
and
you
know
you
can
you
can
boycott
starbucks?
You
can
boycott
russia.
C
You
can
choose
to
spend
your
pension
dollars
as
you
please,
but
if,
if
we
start
limiting
our
ability
to
invest,
that
is
going
to
cost
us
returns
right
and-
and
especially
I
mean
so,
I
think
russia
is
it's
a
smaller
issue,
given
that
we
have
such
a
small
weight
in
in
russia
and
ukraine,
and
this
is
not
to
minimize
the
human
tragedy.
That's
happening
in
russia
or
elsewhere,
but
but
then,
if
you
start
extending
these
things
right
and
then
people
have
pet
projects
and
pet
social
costs.
C
C
You
know
good
returns,
and
so
I
I
and
my
team-
and
I
we
always
think
that
you
know
our
duty
is
to
is
to
maximize
our
risk,
adjusted
return
for
our
pensioners
and
that's
how
we
approach
this
and
and
anything
beyond
that,
every
every
every
restriction
that
puts
that
you
put
it.
It
costs
a
burden.
No,
it's
it's
a
burden,
not
just
in
terms
of
monitoring
these
things,
but
also,
I
think
it
does
take
away
returns
and-
and
I
I
would
say,
look
I'm
I'm
when
it
comes
to
climate
change.
C
C
In
fact,
one
could
argue
that
you
have
to
take
the
opposite
end
of
the
trade
on
on
on
fossil
fuels,
right
if
every,
if
everyone's
dumping
that
maybe
it's
a
good
time
to
buy
it,
because
they're
suddenly
selling
cheap
right
and
that's
what
we're
looking
for
we're,
always
looking
for
or
for
value-added
opportunities
in
our
investment
portfolio.
So
so
every
every
restriction
that's
put
is
is
a
cost
in
terms
of
return
in
terms
of
due
diligence
in
terms
of
investment
time
for
monitoring
these
things,
so
that
that's
just
my
personal
view
on
this.
G
You
can
see,
there's
no
answer
specifically
to
any
of
this,
but
there
are
considerations,
and
it's
part
of
the
exercise
of
prudence
is
to
have
this
conversation
when
it
comes
up.
Look
at
the
data
get
the
advice
of
you
know
your
investment
consultants
in
this
instance,
for
example,
about
the
markets
and
what
the
future
markets
are
going
to
look
like
and
then
make
an
informed
decision.
You're
never
going
to
be
held
to
be
a
guarantor
of
the
outcome
of
that
decision,
whether
it's
going
to
be
good
or
bad
for
the
system.
G
B
B
B
So
so,
given
that
last
hypothetical,
the
well
it's
not
so
much
hypothetical,
the
the
proposed
state
law
actually
has
two
outs
for
our
particular
pension
plan.
But
what
if
there
were
no
outs?
What
if,
for
instance,
our
sponsor
the
city
of
san
jose
passed
a
an
ordinance
that
directly
prohibited
us
from
investing
in
companies
that
do
business
in
russia?
B
B
H
It
would
be
a
long
drawn
discussion.
I
imagine
I
mean
my
two
cents
on
this.
Is
I
I
first
thank
you
harvey
that
was
really
a
very
broad
and
deep
presentation
and
much
appreciated,
because
it's
always
good
to
revisit
and
sort
of
rethink
scenarios,
and
you
know
just
how
can
we
improve
our
behaviors
and
remind
ourselves
our
obligations
in
the
public
in
the
public
domain
when
I
think
about
esg
or
russia,
these
issues
they're
so
complex
that
they
shouldn't
be
any
easy
answer.
H
H
G
We
have
that
additional
obligation
to
to
the
public
welfare
and
how
we
operate,
and
so
there
there
is
nothing
but
gray
area
in
these
kind
of
determinations
and
boards
struggle
with
them,
and
rightly
so.
It
should
be
a
struggle.
It
shouldn't
be
an
easy
answer
in
one
way
or
the
other,
but
we
will
face
these
and
they
will.
They
will
test
your
fiduciary
metal
from
time
to
time,
and
I
would
expect
that
san
jose
is
not
will
be
no
different
than
most
other
systems
in
that
regard.
B
E
E
E
I
also
think
that-
and
maybe
you've
already
you
already
know
this,
but
this
could
certainly
be
a
presentation
that
so
many
people
need
to
see
and
they
need
to
know
that
that
all
of
you
are
actually
bound
by
these
types
of
amazing
parameters
that
you
have
too
that
are
set
up
for
you
and
I
loved
the
ten
commandments.
That
was
fabulous
amazing.
I
just
want
to
thank
you.
E
It
was
amazing
so,
but
the
second
thing
I
want
to
say
is
how
much
courage
it
apparently
takes
to
take
on
these
positions
that
you
all
have
as
trustees
and
the
little
that
I've
learned
over
these
meetings
that
I've
attended.
I
just
want
you
all
to
know
that
I
admire
you
and
I
encourage
you
to
keep
at
it.
E
I
one
of
the
the
my
pillars
in
life
is
to
try
to
become
much
more
civically
engaged
and,
in
addition
to
that,
to
learn
as
much
as
I
can,
whenever
I
can,
and
so
to
come
on
here
at
a
public
meeting
and
for
free,
receive
this
type
of
education
and
be
inspired,
and
then
to
know
that
all
of
you
take
on
this
risk,
you
have
to
pay
now
75
dollars
and
all
of
your
time
anyway.
I
I
just
want
to
thank
you.
This
was
this
was
a.
E
G
E
B
D
Yes,
thank
you.
So,
first
of
all,
let
me
just
say:
council
has
been
doing
this
job
for
a
long
long
time.
Probably
I
started
when
I
was
a
little
kid.
I've
been
in
the
retirement
arena,
public
arena
for
some
25
years
and
trust
me.
The
the
job
has
gotten
a
lot,
a
lot
more
challenging,
especially
for
trustees,
so
so
kudos
to
all
of
you,
for
you
know
putting
the
time
and
effort
on
doing
this
job.
I
wanted
to
ask
harvey
you.
D
D
There's
the
county
code,
there's
a
federal
law,
and
so
it's
not
easy
to
really
manage
all
those
things
together
and
when
do
we
have
to
pay
attention
to
them
or
not?
I
recognize
that
even
when
they
are
a
areas
or
laws
that
don't
particularly
say,
for
example,
like
paper
impact,
the
city
of
san
jose,
we
should
always
we,
as
in
the
board
and
staff,
always
keep
in
mind
that
on
the
back
of
our
head,
because
it
will
be
used
to
determine
the
reasonableness
of
of
the
decision
making
and
the
process
that
we
implement.
D
I
try.
I
guarantee
that
I
don't
do
an
excellent
job
at
it.
I
try,
in
my
own
boarding
of
trustees
to
sort
of
explain
a
little
bit
about
it,
but
obviously
law
is
not
my
background,
and
so
I
just
wanted
to
raise
this
issue
so
that
when
you
get
a
chance,
you
can
bring
that
also
as
part
of
your
education
to
trustees,
because
it's
not
easy
to
know
when
particular
areas
impact
you
directly
and
even
when
they
do
not.
Why
it's
important
to
keep
that
in
mind.
Does
that
make
sense?
G
Of
laws
and
rules
and
regulations
that
get
triggered
and
we
try
every
time
an
issue
comes
up.
You
know
part
of
our
responsibility
to
you
is
to
give
you
the
peripheral
vision
into
all
the
applicable
laws,
whether
they're
tax
or
you
know,
municipal
code
or
state
laws,
internal
revenue
requirements.
You
know
we.
We
want
you
to
have
the
full
knowledge
of
that
entire
fabric.
That
impacts
your
decision
making
at
the
time.
G
So
we
will
try
to
give
you
it's
almost
like
filing
an
environmental
impact
report.
We
try
to
give
you
a
legal
impact
report
that
accompanies
any
decisions
that
you're
making
so
that
you
have
that
that
vision
and
know
that
you're
stepping
inside
the
chalk
lines,
if
you
will
and
not
going
out
of
balance
so.
G
We'll
continue
to
do
that.
Conflicts
of
interest
is
some
of
the
more
specific
things
because
it
really
gets
into
things
like
do
you
have
an
interest
that
is
more
than
two
thousand
dollars
a
year
or
how
much
you
know?
Can
you
accept
a
gift
from
a
friend
who
happens
also
to
be
a
money
manager
for
the
system?
And
you
know,
can
you
give
a
wedding
present
to
somebody
who
is,
you
know,
x,
y
and
z,
there's
a
lot
of
granular
rules
that
will
that
relate
to
public
officials
and
conflicts
of
interest,
and
it's
a
minefield.
G
Those
of
you
who
have
ever
run
for
public
office
know
that
about
the
campaign,
finance
laws,
and
I
I
applaud
anybody
who
ever
runs
for
office
and
can
get
through
that
without
getting
slapped
on
the
wrist
or
fined,
because
the
it's
a
minefield
of
minutia,
it's
not
quite
so
bad
with
conflicts
of
interest,
but
there's
just
a
whole
bunch
of
things
and
what
you
have
to
keep
in
mind.
You
know
roberto
and
conflicts,
for
example,
is
how
would
it
read
you
know
above
the
fold?
I
guess
nobody
has
a
newspaper
anymore.
G
D
Thank
you,
council
again.
I
I
recognize
conflict
interest
is
in
itself
a
very
particular
section,
just
I'm
just
making
the
point
that
in
a
future
education,
you
can
address
the
other
issues,
because
I'm
afraid
I
don't
do
a
very
good
job
in
the
onboarding
process,
because
I
don't
have
your
background
so
that
that
would
be
helpful.
But
thank
you
very
much
for
the
explanation.
D
G
All
right,
thank
you,
mr
chairman.
I
don't
need
to
say
much.
You
have
before
you
a
memorandum
that
we've
prepared
outlining
the
factual
findings
that
continue
to
exist
that
allow
us
to
be
able
to
continue
invoking
ab361's,
relaxed,
teleconference
rules
under
the
brown
act
and
those
those
two
findings
appear.
They
are
that
the
governor's
the
emergency
declaration
continues,
in
effect
relating
to
covet
19
and
impact
the
ability
of
this
board
to
be
able
to
safely
meet
in
public
further
the
city
council
on
april
5th.
B
Thank
you,
council
lederman,
so
under
ab361,
this
board,
as
a
legislative
body,
must
make
certain
factual
findings
if
it
elects
to
continue
meeting
virtually
within
the
next
30
days,
based
on
the
information
presented
by
council
and
provided
with
our
board
backup
materials,
it
appears
that
the
following
factual
findings
justify
the
continuation
of
virtual
meetings
under
ab361
one.
The
governor's
proclamation
of
state
of
emergency
continues
due
to
the
ongoing
covet
19
pandemic
and
two
the
san
jose
city
council's
recent
resolution,
continues
to
impose
or
recommend
measures
to
promote
social,
distancing
and
city
facilities.
A
B
A
E
Thank
you.
I
I
do
hope
that
you
will
all
pass
this.
I
have
a
feeling
you
will,
but
I
do
want
to
just
comment.
I
really
hope
that
someone
is
considering
on
how
we
can
continue
to
have
everything
be
continuing
like
this
online,
and
I
will
tell
you
why,
obviously
I'm
attending
here
and
have
interest
in
this,
I
would
most
likely
not
be
able
to
attend
if
you
meet
in
person
someday,
and
I
do
think
that
it
is
has
inspired
in
me.
E
It
really
did
inspire
me
and
taught
me
a
lot
and
has
increased
my
level
of
trust,
and
so
that's
one
thing
I'm
really
working
on.
So
if
you
might
just
consider
that,
in
your
vote
and
in
in
the
future
to
have
meetings
online,
I
think
that
one
of
our
goals,
as
as
a
city
as
residents
and
as
elected
officials,
we
should
be
trying
to
improve
this
trust.
With
the
public
that
that
we
seem
to
be
have
lost,
so
I
I'm
all
for
this.
I
hope
we
will
continue
this
into
the
future,
even
past
covent.
B
H
B
And
I
vote
I
as
well
it
passes
and
we
will
continue
to
meet
under
the
ab361
guidance.
We
now
move
on
to
committee
reports
6.1.
The
investment
committee
committee,
chair,
chandra,
is
not
here
to
report.
I
believe
I
was
the
only
other
member
on
the
last
meeting,
which
was
simply
a
special
meaning
to
continue
ab
361
procedures
so
other
than
that.
There's
nothing
to
report
a
governance
committee.
B
A
H
D
H
D
Chair
or
I
just
wanted
to
just
bring
this
up
in
public,
I'm
working
with
prabhu
trying
to
understand
when
the
information
in
reference
to
the
compensation
work
by
the
two
consulting
firms
may
be
available
for
discussion,
because
that
will
have
a
direct
impact
as
to
when
the
committee
may
need
to
meet
next
time.
So
we're
trying
to
sort
that
out
get
a
sense
on
what
that
may
be
available.
D
A
B
Understood,
thank
you
agenda
item
seven
education
and
training.
We
have
the
core
text
report
for
your
reviews:
there's
a
caliper
special
virtual
trustee
roundtable,
a
one-day
affair
april
29th
and
there's
also
the
sackers
sprint
conference
in
in
rancho
mirage
coming
up
in
may
any
trustee
or
public
comment
on
any
of
those
items.
B
B
A
D
Yeah
they
meet
twice
a
year
by
sure
jenny's
in
november
and
may,
and
they
alternate
between
southern
california
and
northern
california.
So
if
they
have
the
main
meeting
in
southern
california
in
the
palm
springs
area,
then
they'll
have
another
in
november
in
the
northern
california
area,
as
opposed
to
calipers
right,
which
is
only
similar
conference,
a
little
shorter,
and
it's
only
once
a
year
in
the
month
of
march.
A
D
A
D
A
D
Little
better,
but
also
to
provide
some
background
information
that
is,
is
very,
very
important
for
trustees
and
and
we
are
trying
to
schedule
a
similar
onboarding
meeting
with
new
trustee
avasti
as
soon
as
we
can
schedule
that
I
certainly
will
mention
this.
But
when
I
met
with
trusteelin
that
I
did,
I
mentioned
the
calipers
and
sakura's
conferences.
I
know
the
kind
of
programs,
and-
and
so
I
will
do
so
when
we
meet
with
trusty
avasti
as
well.