►
Description
City of San José, California
Federated City Employees' Retirement Plan Board of September 23, 2021
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://sanjose.legistar.com/View.ashx?M=A&ID=894676&GUID=2F3C1636-7FD7-4831-973E-229D32667E93
A
A
A
B
We
will
have
a
roll
call
in
order
of
seniority,
trustee
chandra
trustee
orr
president
trustee
keller.
B
B
A
A
A
A
A
A
A
A
A
B
A
few
ground
rules
I
need
to
announce
all
votes
will
be
roll
call
votes.
If
you
are
not
speaking,
please
be
on
mute
to
cut
the
background
noise
for
discussion
items.
Each
trustee
will
have
a
turn
to
speak
and
will
call
order
more
than
once,
if
desired,
the
public
will
also
have
an
opportunity
to
speak
on
each
item
after
the
trustees
and
the
public
public
will
also
have
an
opportunity
to
speak
again
at
the
end
of
the
meeting
on
any
other
item,
not
on
the
agenda
that
is
within
the
subject,
jurisdiction
of
the
board.
B
B
A
b
361
permits
local
legislative
bodies
such
as
this
board
to
continue
to
meet
virtually
through
telephone
and
the
internet
means
I.e.
Video
teleconference
during
a
proclaimed
state
of
emergency
without
having
to
meet
certain
technical
requirements
of
the
brown
act,
open
meeting
laws,
provided
the
board
makes
certain
findings.
The
findings
must
be
voted
on
and
approved
at
the
first
such
teleconference
meeting
and
to
continue
after
the
initial
teleconference.
B
Continuing
findings
must
be
made
again
every
30
days
thereafter,
in
march
of
2020,
the
governor
proclaimed
a
state
of
emergency
due
to
the
covet
19
pandemic,
and
that
proclamation
is
still
outstanding
and
active.
Pursuant
to
ab361
and
amended
section
54953
of
the
government
code,
the
board
will
be
holding
this
meeting
during
the
a
proclaimed
state
of
emergency
and
state
and
local
officials
have
imposed
or
recommended
measures
to
promote
social
distancing,
including
the
wearing
of
masks
indoors.
B
B
D
Yeah,
thank
you
just
a
little
bit
of
color
on
this
before
the
board
votes.
We
should
verify,
and
perhaps
the
folks
at
ors
and
verify
this-
that
there
are
still
local
officials
who
are
calling
for
social,
distancing
and
wearing
the
mass
indoors.
It
would
be
good
to
have
somebody
just
update
us
on
what
the
state
of
affairs
is
officially
in
the
city
of
san
jose,
so
that
these
findings
are
based
on
the
actual
state
of
the
emergency
declaration.
C
For
the
board,
before
voting
on
this,
to
have
an
understanding
of
what
the
conditions
are,
let
me
try
to
address
that.
First,
it's
kind
of
it's
a
little
hard
to
understand.
You
think
you're
cutting
off
sometimes
at
least
on
my
on
my
ipad,
but
I
think
san
jose
is
kind
of
doing
business.
As
usual.
The
city
council
is
actually
meeting
in
person
in
the
city
chambers,
but
they
are
conducting
hybrid
meetings.
C
C
I
did
hear
from
the
assistant
city
manager
this
week
that,
given
the
new
all
was
extended
and
the
new
requirements,
as
explained
by
the
chair
and
by
yourself
from
the
governor,
that
they
may
discuss
this
internally
and
then
provide
boards
and
commissions
some
direction
or
some
information,
but
for
now
it
is
fine
to
continue
meeting
virtually.
I
don't
know
if
that's
what
you
were
asking,
but
that
that's
that's
where
we
are.
D
Well,
yeah,
as
I
understand
that
there
still
is,
there
is
a
declared
state
of
emergency
statewide
and
I
was
just
inquiring
whether
there
was
were
any
further
local
orders
from
the
health
officials
or
from
the
city
officials
that
impact
on
the
the
finding
that
we
would
be
making
that
that
there
are
still
risks
involved
with
meeting
in
person
and
that
they're
still,
you
know,
recommending
social
distancing.
For
example,.
C
Yes,
they
are
certainly
doing
that.
I
haven't
heard
anything
new
from
the
from
the
county,
health
officer
or
any
new
requirements,
but
I
do
know
the
city
is
proceeding
in
that
fashion:
mass
inside
the
recommended
space
when
you're
inside
and
certainly
they're
keeping
with
all
the
cdc
recommended.
E
And
the
city
is
also
implementing
this
stage.
Two
vaccinations.
E
30Th
of
the
mandatory
vaccination
policy.
So
that's
in
recognition
of
the
ongoing
variants
that
will
be
coming
forward
as
well,
particularly
in
the
coming
winter
months
that
just
came
out
from
oer
employee
relations.
D
These
findings
will
have
to
continue
to
be
made
because
the
new
law
requires
you
to
continue
acknowledging
the
emergency
and
the
risks
to
health
and
safety.
If
we
were
to
meet
together
that
that's
an
ongoing
obligation
of
the
board,
if
it
wishes
to
continue
to
meet
virtually
so.
B
I
was
merely
going
to
suggest
that
perhaps
in
time
for
our
next
regularly
scheduled
meeting
that
we
have
a
more
comprehensive
statement
from
quote
local
officials
on
their
view
of
the
state
of
emergency
and
required
measures,
and
so
then
we
can
continue
to
adopt
this
motion
with
greater
confidence.
Right.
A
Excuse,
excuse
me,
mr
chair.
Yes,
the
council
member
has
her
hand
up.
B
Okay,
I'm
not
seeing
that,
but
please
go
ahead.
F
Thank
you.
I
just
wanted
to
to
make
sure
everyone
knew
we
are
continuing
every.
I
believe
it's
every
60
days
to
declare
the
ongoing
state
of
emergency
and
when
we're
meeting
in
person,
we
are
only
meeting
in
person
so
far
for
open
session
on
tuesdays.
All
committee
meetings
are
still
happening
virtually
and
when
we
meet
in
person,
there
is
distancing
in
the
in
the
council
chambers
and
everyone
who
is
speaking
has
to
keep
their
mask
on
even
when
they're
speaking.
F
So
there
are
some
some
issues
with
audio
that
that
have
happened,
because
people
are
wearing
masks
even
when
they're
speaking
into
the
microphone.
So
I
just
want
to
make
sure
that
everyone
is
aware
what
the
procedures
are
if
you
do
meet
in
person
and
the,
and
that
we
continue
to
renew
the
state
of
emergency
declaration
every.
I
believe
it's
every
60
days.
G
And
chairman
miss
miss
davis.
I
have
a
question,
so
is
that
written.
A
Is
that
a
written
policy,
or
is
this
something
that
we
could
find
in
the
city
council's
minutes
or
whatnot?.
F
That
I
believe
that
is
what
the
county
guidelines
are
for
for
maintaining
masking
and
so
we're
following
the
county
guidelines.
I
think
we
got
an
email
about
it,
but
I
don't
remember
exactly
okay.
Thank
you.
B
All
right,
thank
you,
council
liaison
any
further
comment
on
the
motion
on
the
floor.
A
B
Right
orders
of
the
day
we
will
target
a
a
short
break
around
the
10
o'clock
hour
and,
of
course,
we
will
have
a
recess
from
1
to
105
to
accommodate
the
civic
center
civic
center
tv
broadcasting
system.
A
A
B
B
Hearing
none,
I
believe
we
don't
need
a
a
vote
on
this.
We
can
move
to
item
2.0.
B
A
B
B
I
believe
we
had
a
second
was
that
trustee
keller.
A
B
Now,
move
to
item
number
two
death
and
survivorship
notifications
have
a
moment
of
silence
for
those
who
have
served
the
city
and
who
have
passed.
H
Today
we
will
actually,
under
the
investment
section,
we
will
be
talking
about
performance
first
quarter,
2021
for
private
markets
and
second
quarter
calendar
year
2021
for
public
markets
as
also
fiscal
year
returns
for
for
the
plan,
but
before
we
get
there.
I
have
a
few
comments
that
I'd
like
to
make
now.
Firstly,
as
you
know,
there's
going
to
be
a
joint
session
between
the
boards
and
city
council
on
september
30th,
and
at
that
session
I
was.
H
There
was
some
expectation
that
I
would
talk
about
investment
strategy
for
the
proceeds
of
the
pob,
and
I
made
it
clear
that
I
will
be
unable
to
talk
about
what
the
boards
will
do
with
any
pov
proceeds.
For
several
reasons.
One
is
we
don't
even
know
if
a
bob
is
going
to
be
issued
and
if
the
pov
is
issued,
we
don't
know
the
size,
we
won't
know
the
structure
or
the
timing
and
all
of
which
have
a
bearing
on
how
we
will
invest
those
proceeds.
H
H
H
Several
marquee
names
have
been
affected,
alibaba,
dd,
beidou,
10
cent
and
so
on,
and
even
some
of
the
online
tutoring
companies
like
new
oriental
education.
So
that's
had
a
bearing
on
the
chinese
market
and
china,
of
course,
is
a
big
part
of
emerging
markets
and
we
do
have
a
sizable
allocation
in
emerging
markets.
H
J
As
prabhu
just
mentioned
lately,
we
have
observed
some
of
volatility
in
china
and
in
chinese
stocks
specifically,
so
I
wanted
to
take
this
opportunity
to
update
the
board
on
our
china
exposure
in
public
equity,
our
managers,
reactions
and
our
outlook
in
emerging
markets,
so
our
emerging
markets
target
allocation
is
12
and
which
implies,
and
a
little
over
four
percent
allocation
to
china.
So
it's
quite
significant
on
here
fiscal
year
to
date
this
was
as
of
9
14.
J
While
emerging
markets
was
down
over
5
and
especially
msci,
china
is
down
more
than
14,
so
the
spread
between
us
and
china
is
more
than
17,
and
I
just
quickly
checked.
As
of
yesterday,
the
the
spread
has
widened
to
over
20
percent
and,
as
prabhu
just
mentioned,
a
series
of
macro
events
have
caused
uncertainty
and
driven
the
volatility
in
chinese
stocks.
It's
primarily
those
centered
around
a
few
things.
J
There
was
an
overhaul
in
the
education
sector
and
finally,
over
leveraged
property
companies
needs
to
be
addressed
in
china,
so
we
don't
have
a
dedicated
china
manager
and
our
chinese
exposure
is
largely
through
our
emerging
markets
managers.
This
is
their
allocation
to
the
country.
As
a
quarter
end.
The
federated
pension
fund
has
about
3.4
percent
in
china,
which
represents
the
underweight
relative
to
our
benchmark.
J
All
the
emerging
markets
managers
have
negative
relative
exposure
to
china
in
this
chart
is
the
gray
bar.
We
can
see
that
majority
of
the
managers
had
has
underweight
and
all
the
emerging
markets
managers
have
been
underway
to
china
so
for
different
sectors,
managers
take
different
approaches.
J
It's
almost
consensus
that
education
sector
is
not
investable,
they
exited
the
sector
even
prior
to
the
crackdown.
Some
managers
took
the
opportunity
to
purchase
large
internet
tech
names,
but
majority
of
the
managers
are
cautious
at
this
point
and
they
may
take
the
opportunity
to
incrementally
add
over
time.
J
The
active
managers
appear
to
be
well
positioned
entering
into
this
turbulent
period.
This
is
a
quarter
to
date,
manager
return.
As
of
last
week,
majority
of
the
managers
have
outperformed
the
benchmark,
despite
a
challenge
we're
seeing
in
the
general
market-
and
this
is
a
in
the
brownbot
that
we're
seeing
almost
all
the
emerging
markets.
J
Managers
have
had
a
positive
return
and
we're
hoping
that
active
managers
can
add
value
through
this
period,
so
external
managers
and
our
investment
staff
are
cautiously
watching
the
developments
of
the
macro
policy
in
china
and
we
will
maintain
the
underweight
for
now.
We
see
opportunities
in
small
cap
and
mid
cap
companies
and
in
certain
sectors
we
agree
with
the
manager's
positioning
and
we
will
continue
to
monitor
the
developments
of
china
market.
So
this
concludes
my
presentation
and
I'm
happy
to
take
any
questions
and
address
any
concerns
you
might
have
with
this
country.
B
The
government
in
in
mainland
china
has
taken
some
recent
moves
that
seem
to
be
quite
hostile
to
investors
and
it's
something
we
need
to
be
aware
of
a
couple
of
quick
questions.
B
J
It's
really
from
our
active
managers
judgment
call,
so
they
have
the
discretion
of
educating
in
other
emerging
markets,
countries
or
in
china.
Indeed,
some
of
them
has
reduced
dramatically
over
the
last
several
months,
so
that
reflects
a
3.4
percent
weight
to
china,
which
is
an
underweight.
B
J
We
might
have
a
little
bit.
I
was
talking
to
our
investment
officer
the
other
day,
for
example,
some
of
those
private
real
assets
or
or
venture
capital
managers.
They
have
one
or
two
names
in
china,
but
it's
much
more
much
smarter
than
our
public
equity
exposure
here.
This
is
a
four
percent
to
the
overall
plan.
G
Just
to
comment
to
that,
I
appreciate
the
update
in
this
timely
fashion
around
china
and
I'd
like
to
see
things
like
that.
You
know
whether
it
be
india
or
whatever
thematic
come
to
the
table
again
in
future.
This
is
very
helpful.
Thanks.
B
And
returning
to
the
item
3a
is
there
anything
further?
The
cio
would
like
to
advise
us
up.
H
Thank
you,
mr
chairman,
thank
you
christina
and
trustee
that
this
comment
is
duly
noted
and
we
will
of
course
bring
other
thematic
issues
in
front
of
the
board
and
with
regards
to
china,
you'll
all
get
to
revisit
our
strategic
asset
allocation,
which
typically
commences
at
the
at
the
end
of
this
calendar
year.
Early
next
calendar
year
firing
anything
unforeseen
in
the
market,
of
course,
in
which
case
we
may
do
it
earlier.
H
But
if
not
that's
when
we
will
revisit
our
strategic
asset
allocation
and
we
get
a
chance
to
talk
again
about
our
allocation,
emerging
markets
and
so
on,
we
are
long-term
investors
and
emerging
markets
continue
to
be
one
of
the
few
asset
classes
that
have
capital
market
assumptions
in
excess
of
our
discount
rate.
But,
as
the
chairman
pointed
out,
the
chinese
government
has
been
making
some
moves
that
do
cause
some
concern.
H
Mr
chairman,
before
we
move
on
to
the
private
market
report
by
newberger,
I
just
want
to
let
the
board
know
that
we
do
have
some
preliminary
numbers,
but
this
current
fiscal
year,
as
of
yesterday
pro
forma
performance
for
the
pension
plan.
It's
up
79
basis
points
0.79,
because
I'm
watching
the
thicker
today,
in
a
few
more
days
like
today,
we
will
actually
be
all
set
for
this
fiscal
year.
H
Yes,
I
might
do
that,
okay,
so
with
that,
mr
chairman,
unless
there
are
any
questions
for
me,
I'm
happy
to
take
any
questions.
If
there
are
no
questions,
I
would
like
to
invite
miss
casey
boyer
from
newburgh.
K
K
K
Okay,
perfect,
so
I'm
here
today
to
present
you
q1
or
the
portfolio,
I
will
start
at
the
beginning.
So,
as
you
all
know,
we
we
started
this
program
in
may
of
2017,
so
we
are
a
little
bit
over
four
years
into
investing
and
deploying
this
program.
K
K
I
would
point
out
that
the
last
year
has
been
a
great
value
driver
for
the
portfolio,
probably
similar
to
other
portfolios.
You've
seen
when
I
compare
these
q1
valuations
and
marks
to
q4,
we
saw
a
great
uptick
so
when
we
showed
this
to
you,
the
q4
numbers,
the
net.
Multiple
for
this
nb
partnership,
which
is
shown
in
the
middle
column,
was
1.4.
K
One
of
the
great
items
that
have
come
through
this
year
also
as
your
portfolio
has
developed
and
matured.
We're
now
really
starting
to
see
more
realizations
within
the
fund.
So
you'll
see
here,
distributions
of
2.3
million
a
preview
for
the
next
quarter.
You'll
actually
see
that
number
jump
by
10
million.
So
in
q2
we
we
distributed
an
additional
10
million
back
to
san
jose
federated.
K
K
Typically,
just
in
the
market,
we
see
q4
to
be
the
highest
quarter
for
companies,
selling,
acquiring
and
completing
transactions,
and
so
we
expect
to
continue
to
see
that
number
move
up.
This
is
obviously
q1
reported.
We
have
actually
released
the
q2
financial
statements
already
and
overall,
the
value
of
that
portfolio
will
be
up
right
at
16
percent,
so
in
q2
you'll
see
another
great
increase
to
the
portfolio.
K
Will
move
on
to
the
next
few
pages,
which
I
won't
go
into
detail
on
each
line
item
the
first.
K
The
next,
let's
see
three
pages,
are
the
exact
same
analysis
for
neuberger
you'll,
see
here
how
each
fund
is
performing
on
a
gross
basis,
as
well
as
the
quartiling
metrics
for
those
funds.
K
K
We
definitely
have
some
new
investments
that
are
still
actively
deploying
capital.
So
a
lot
of
these
return
metrics
will
continue
to
change
as
in
investments
are
deployed
and
put
into
the
ground
and
then
obviously,
as
the
operating
and
private
equity
firms
continue
to
develop
those
companies
and
hopefully
able
to
realize.
K
K
I
K
The
secondary
market
and
a
co-investment
is
directly
into
a
company
alongside
a
sponsor,
so
the
interesting
dynamic
on
this
page
is
every
investment
type
compared
to
last
quarter.
The
performance
moved
up.
K
K
K
It's
a
company
that
actually
sells
domains
to
end
users.
So
if,
if
you
see
you
know,
com,
dot,
edu,
dot
news,
all
of
those
are
domains
that
are
bought
and
sold,
and-
and
so
this
is
a
registry
operator-
and
they
were
combining
themselves
or
merging
themselves
with
an
operator
or
a
service
operator
for
those
domains.
K
We've
seen
that
company,
since
our
ownership,
which
has
been
less
than
a
year
of
ownership
organically,
grow
quite
a
bit,
and
I
would
say
even
outside
of
the
market
has
gone
up.
This
company
has
just
been
performing
very
well.
K
We
were
also
able
to
buy
into
this
company
at
very
attractive
multiples
compared
to
other
comparable
companies
within
the
market.
They're
trading
anywhere
from
28
to
30
times
we
purchased
it
at
a
much
much
lower
entry
price
and
then
combining
those
two
companies.
There
were
a
lot
of
synergies
combining
those
two
companies,
so
there's
kind
of
an
immediate
uptick
in
the
ebitda,
simply
because
those
two
companies
are
able
to
cut
quite
a
bit
of
cost.
K
So
that's
just
a
highlight
example
of
a
type
of
company
that
we've
included
in
your
portfolio
that
we
think
has
a
lot
of
potential.
So
I
just
wanted
to
highlight
that
that's
all
I
had
planned
to
say
so.
If,
if
there's
any
questions,
I'd
be
happy
to
answer
any
questions
about
the
portfolio
or
any
other
items.
B
I
I
did
have
a
question
myself
if
we
can
go
back
to
the
first
page
of
the
nb
partnerships,
no
forward
the
where
we,
where
we
highlight
the
individual
line,
items
of
investments
there
we
go
okay,
so
the
second
one
down
investment,
54
2017
vintage
7.9
million-
I'm
looking
at
the
report
from
a
year
ago-
and
it
appears
that
that
is
titled
investment.
44..
B
K
Yeah,
so
the
order
that
they're
laid
out
on
the
page
should
be
exactly
the
same
to
what
you're
seeing
a
year
ago.
It
does
look
like
the
numbers
have
changed,
so
I
can.
I
can
go
back
and
and
make
sure
that
our
team
is
making
sure
they're
the
same
number
so
that
it's
easier
to
track,
but
the
order
is
exactly
the
same,
we're
putting
them
in
order
by
our
timing
of
investment.
B
B
Some
of
our
successes
in
the
co-investment
space,
but
please
feel
free
to
tell
us.
You
know
where
we've
gone
astray,
so
we
shouldn't
just
hear
the
good
news
we
should.
We
should
hear
the
the
mistakes
as
well.
K
Yes,
happy
to
do
so
I
mean,
if
you
just
if,
if,
if
I
can
take
a
minute
to
do
that
now,
you.
K
K
K
They
are
in
the
retail
space,
so
they
typically
look
for
companies
that
are,
I
wouldn't
say,
distressed,
but
companies
that
are,
you
can
take
and
do
quite
a
do.
Some
operational
work
too.
To
achieve
that
return
and
they've
frankly,
just
taken
a
very
long
time
to
invest
the
the
the
first
couple
years.
They
didn't
make
an
investment.
They
made
one
investment,
so
it's
been
a
much
slower
deployment
deployment
path
than
we
would
have
expected.
So
that's
definitely
one.
I
would
highlight.
H
Thank
you,
mr
chairman.
I
would
like
to
invite
laura
weirich
and
jared
fred
fratt
of
makita
to
talk
about
items
three.
I
L
So
on
the
private
markets
report
also,
as
of
first
quarter,
just
like
the
new
burger
berman
presentation,
so
here
we
have
an
overview
of
each
of
the
sleeves
of
the
private
markets
program.
So
if
you
just
look
at
the
far
two
right
columns,
you'll
see
your
irr
compared
to
a
public
market
equivalent,
you
can
see
as
you
look
down.
The
columns
is
that
it
is
a
favorable
comparison
in
most
cases.
L
I
also
note
that
the
eight
percent
total
irr
you
see
on
the
bottom
is
quite
strong
in
absolute
sense
and
is
a
full
percent
better
than
it
was
reported
just
a
quarter
ago.
So
that
number
was
seven
percent
at
the
end
of
fourth
quarter
and
now
it's
at
eight.
L
L
Of
each
each
sleeve
of
this
here,
so
the
private
debt
program,
as
I
mentioned
before,
it's
a
decade
old,
so
quite
mature
in
the
sense,
it's
actually
overweight
its
target
at
three
and
a
half
percent
versus
a
three
percent
target,
and
it's
also
mature
in
the
sense
of
not
having
much
left.
As
far
as
unfunded
commitments
go,
you
can
see
performance
on
the
bottom
right
isn't
as
favorable
as
some
other
groups
and
as
we've
mentioned
before.
That's
that
has
a
lot
to
do
with
some
large
2010
vintage
year.
L
Commitments
that
didn't
work
out.
You
know
commitments
made
by
by
prior
staff.
L
If
we
go
to
page
four,
you
can
see
very
sizable
distributions
here
over
the
last
quarter
again
an
indication
of
how
mature
the
plan
is,
and
if
I
go
to
page
six,
you
just
see
dawn
return,
details
of
each
individual
strategy.
L
There's
there's
quite
a
few
labs
here
as
you'll
note,
but
one
in
particular.
That's
done
extremely
well
is
arbor
lane
two
here
in
the
middle,
with
an
irr
close
to
thirty
percent
moving
on
to
real
assets.
These
are
up
to
about
half
the
target
weights.
One
and
a
half
percent
now
against
the
three
percent
target,
so
still
ramping
up.
L
You
can
see
it
an
ir
here
at
the
bottom
of
close
to
eight
percent
and
that's
catching
up
to
piers,
so
the
prior
quarter,
it
was
just
trailing
piers
more
and
now,
we've
caught
up
a
little
bit
and
at
eight
percent
is
obviously
pretty
good.
On
page
nine,
you
can
see
this
program's
still
ramping
up.
As
I
mentioned,
you
can
see
contributions
to
managers.
You
know
outweighing
distributions
from
managers
by
quite
a
bit,
so
this
is
still
ramping
up
and
to
look
at
the
individual
line
items
again.
L
You
know,
there's
been
several
commitments
in
the
last
couple
of
years.
You
can
see.
Most
of
them
have
nm
for
non-material
performance,
yet
you
know
not
meaningful.
The
track
record
is
not
long
enough,
but
those
will
start
showing
up
over
time
and
then,
if
I
look
at
real
estate
here
on
page
13,
so
this
is
basically
near
target
slightly
overweight
at
3.3
against
the
three
percent
target
and
if
I
just
skip
ahead
here
to
the
individual
line
items
again
quite
a
few
line
items
here.
L
L
I
Great,
thank
you.
We
have
the
quarterly
review
for
the
pension
fund
here,
so
I'd
like
to
just
start
off
by
congratulating
the
trustees
and
the
staff
for
a
great
fiscal
year.
I
The
market
value
has
gone
up
from
2.18
as
of
the
end,
at
the
end
of
the
last
fiscal
year
to
2.83
so
not
too
far
off
from
a
billion
dollars
in
added
value,
because
there
have
been
regular
outflows
during
the
year
I'll
talk
first
about
the
market
environment
in
the
second
quarter
of
2021.
I
On
page
four,
you
can
see
that
commodities
were
quite
strong,
a
very
volatile
asset
class
that
when
we
have
supply
shortages,
tends
to
perform
well
followed
by
real
estate
investment
trusts.
And
then
you
can
see
a
quite
strong
environment
in
the
second
quarter
of
2021
for
u.s
equities,
with
the
s
p,
500
and
russell
3000
indexes
up
over
eight
percent.
I
I
Really
every
major
asset
class
was
positive,
including
down
to
investment
grade
bonds
of
1.8
for
the
quarter
since
the
end
of
june,
through
yesterday,
quarter
to
date
returns
remain
positive,
u.s
equities,
since
june
30th
have
been
up
2.6
non-us
developed
equities
of
1.8.
I
However,
emerging
markets
have
been
down
seven
and
a
half
percent
since
the
end
of
june
and
your
investment
officer,
ms
wang,
talked
about
some
of
the
reasons
for
that
with
with
china.
In
her
update
earlier
negative
returns
in
china
are
really
driving.
Those
negative
emerging
markets
returns
going
to
slide
five
and
just
to
point
out.
You
know
we
still
have
some
quite
strong
one-year
returns
through
the
end
of
june,
and
that
was
really
driving
the
strong
performance
that
we've
seen
for
your
fund.
I
I
So
if
we
take
a
look
at
page
24,
you
can
see
that
total
assets
stood
at
2.8
billion
as
of
the
end
of
june.
The
current
allocations
are
quite
close
to
the
policy
as
intended
and
then
flipping
to
the
next
slide.
I
You
can
see
that
the
total
fund
return
for
the
one
year
fell
just
short
of
30
percent,
so
many
multiples
of
your
actuarial
assumed
rate
of
return,
so
29.2
return
for
the
one-year
period
and
that
outperformed
all
of
the
underlying
benchmarks
quite
strongly
the
policy
benchmark,
the
investment
benchmark
portfolio,
the
low-cost
passive
portfolio
and
a
60-40
blend,
the
6041
would
have
been
up
and
a
half
percent,
so
a
really
strong,
absolute
return,
but
your
fund
was
up.
You
know
much
much
more
than
that.
I
You
see
the
pure
median
at
27
again,
also
quite
strong,
but
your
57
billion
is
now
2.8.
You
can
see
that
there
were
net
cash
flows
out
of
the
fund
of
about
53
million
and
investment
gains
of
almost
200
million.
Just
during
that
three
month
period.
I
If
we
look
at
page
52
and
53
and
look
in
particular
53
and
just
look
at
sort
of
a
it's,
not
quite
a
full
market
cycle,
because
it's
been
a
pretty
unique
market
environment,
but
you
know
if
we
look
at
a
longer
term
five
year
period
here,
you
can
see
for
the
five-year
period
the
fund,
because
it
was
more
conservatively
positioned
over
that
time,
while
it
had
a
return
of
almost
10
percent
per
year
every
year
out
of
the
last
five
years.
That
was
a
return
that
was
somewhat
behind
the
pure
median.
I
That's
on
the
far
left.
But
if
you
look
at
the
risk
of
the
fund,
it
was
below
the
pure
median.
That's
the
second
column
risk
for
the
fund
of
7.7
versus
a
peer
median
of
8.7
that
resulted
in
a
sharp
ratio
that
was
strong
at
1.1
and
ranked
above
the
median
in
the
38th
percentile.
I
So
you
know
this
is
sort
of
what
we
like
to
see
and
if
we
look
at
a
three-year
period
we
actually
see
that
in
the
three-year
period
we
had
a
fund
return
that
was
well
above
median
and
in
the
top
quartile
we
see
a
standard
deviation
that
is
still
below
median,
which
is
a
good
thing
in
terms
of
volatility,
and
that
has
a
sharp
ratio.
Then
that
ranks
in
the
top
quartile
of
the
peer
group.
So
we
see
improving
metrics
for
the
fund
between
the
five
and
three
year
periods.
I
B
I
Thank
you.
So
the
next
presentation
is
the
healthcare
trust
and,
as
you
know,
the
healthcare
trust
uses
a
similar
strategy
on
asset
allocation,
but
doesn't
have
the
same
level
of
e-liquid
assets
or
as
many
managers,
given
that
the
market
value
is
lower,
you
can
see
here
a
market
value
of
382.6
million
as
of
the
end
of
june
and
the
current
allocation,
as
we
would
expect
quite
close
to
policy,
you
take
a
look
at
page
24..
I
I
know.
We've
talked
many
times
in
the
past
about
how
this
health
and
welfare
fund
is
a
bit
more
aggressively
positioned
than
some
others,
because
it
has
an
expected
return,
relatively
close
to
that
of
the
pension
fund.
That
is
a
good
thing
in
up
markets,
because
you
can
see
here.
The
one-year
return
is
almost
25,
I'm
a
hedge
ahead
of
the
policy
benchmark
and
also
more
than
two
times
higher
than
the
pure
median.
So
you
can
see
that
the
one-year
return
is
in
the
top
decile.
I
The
quarter.
Return
at
4.4
is
also
well
ahead
of
the
peer
median
for
health
and
welfare
funds
and
is
in
the
top
quartile,
and
you
can
see
here.
This
fund
has
a
relatively
simple
asset
allocation.
I
think
it's
also
interesting
to
think
about
how
you
know
the
pension
fund
had
a
almost
30
return.
This
fund
had
an
almost
25
return.
I
You
know
in
some
market
environments
we've
seen
that
the
more
complexity
and
more
private
markets
on
on
the
pension
side,
you
know,
wasn't
advantageous,
but
it
certainly
has
been
recently
in
this
past
one
year
period
with
adding
you
know
more
value
with
the
private
markets
and
some
of
the
other
half
the
classes
that
we
have
in
the
pension
fund.
One
area
that
this
fund
has
that
the
pension
does
not
is
commodities.
I
You
can
see
on
page
25
commodities
have
been
in
the
fund
since
january
of
2015..
Over
the
long
term
they
haven't
added
a
ton
of
value.
You
can
see
that
they're
up
0.8
percent,
you
know
significantly
outperforming
the
index,
which
was
negative
during
that
time
period.
These
are
really
here
as
sort
of
an
inflation,
hedge
or
a
an
extreme
market.
Stress,
hedge,
you
can
see
for
the
one
year
period
a
return
of
almost
38
for
commodities,
so
that
was
certainly
additive
to
this
fund.
I
With
that,
I
won't
go
into
individual
managers,
since
they
are
similar
to
the
pension.
But
I'm
happy
to
answer
any
questions.
B
Okay,
I'm
not
by
the
way
linda.
I
cannot
see
if
any
hands
are
raised
in
in
on
my
screen.
So
please,
let
me
know
if
somebody
has
raised
their
hand.
C
C
Thank
you,
mr
chair.
Thank
you
welcome
good
morning.
Everyone
just
a
couple
of
minutes.
If
you
bear
with
me,
I
do
want
to
remind
you,
as
you
know,
right
now.
You
only
have
five
of
the
seven
seats
of
your
board
that
are
filled,
and
you
have
one
trustee
absent
this
morning.
The
two
seats
that
are
open,
the
retired
receipt
and
another
active
membership.
C
The
staff
is
still
working
with
the
clerk
office
on
this
process.
I
plan
on
bringing
you
an
update
at
the
cover
meeting
on
how
that
process
is
ongoing.
I
think
that
we
are
much
quicker
to
feel
your
active
members
see
than
the
retiree.
But
again
I
will
make
a
point
for
your
attorney
meeting
to
have
a
more
detailed
explanation
on
how
the
process
is
ongoing.
C
I
also
wanted
to
share
with
you
that
the
the
the
city
actually
pushed
further
out.
They
returned
to
the
office
on-site
work.
Initially,
they
had
looked
at
october
1st
for
a
deadline
to
bring
back
employees
because
of
continuing
issues,
including
the
delta
variant.
They
pushed
that
day
now
to
november
1st.
C
Although
the
the
city
does
have
some
skeleton
groups
in
some
areas,
just
like
we
do
in
our
office
that
come
to
the
office
from
time
to
time
for
the
most
part,
they're
gonna,
the
intent
is
to
try
to
start
bringing
back
employees
even
if
it's
in
a
hybrid
approach,
which
is
what
we
are
pretending
to
do
in
our
office,
but
remember
first,
if
the
city
remains
with
that
deadline,
our
goal
is
to
have
a
hybrid
approach
with
staff
and
start
having
staff
coming
back
to
the
office,
but
not
everyone
here,
five
days
a
week
again,
that
would
be
a
habit
approach
and
is
to
make
sure
that
we
follow
cdc,
suggested
guidelines.
C
I
think
trustee
jennings
mentioned
this
before
the
city
is
now
proceeding
with
stage
two
of
the
vaccination
program
stage
two
actually
requires
that
every
employee
is
vaccinated
by
september
30th,
which
is
next
at
the
end
of
the
month
next
thursday,
unless,
of
course
you
you
file
for
either
a
religious
or
a
medical
exception,
which
you
certainly
can
do
that.
But
at
this
point
again
the
requirement
is
that
all
employees
are
vaccinated
by
september
30th.
Otherwise,
you
do
have
to
file
for
an
exception
on
a
religious
or
the
medical
basis.
C
I
also
wanted
to
share
with
you
that
november
1st
to
november
30th
is
our
open
enrollment
for
healthcare.
For
retirees
we
were
wondering
whether
it
was
going
to
be
an
on-site
program
or
virtual.
We
actually
decided
for
the
latter,
so
it's
gonna
be
just
like
we
did
last
year.
It's
gonna
be
a
virtual
program
throughout
the
month
with
presentations
from
various
providers
and
having
staff
available
for
questions
again.
The
open
enrollment
for
healthcare
goes
from
november
1st
to
november
30th
and
planning
is,
is
already
in
progress.
C
I
also
wanted
to
share
with
you
I
remind
you
I
think
prabhu
mentioned
this.
We
do
have
next
thursday,
the
joint
meeting
of
the
boards
with
the
city
council
on
the
pob
discussion.
C
C
So
there
is
a
good
chance
that
the
city
staff
is
going
to
be
going
to
the
city
council
in
october
to
get
approval
for
the
validation
process,
and
so
there's
a
very
good
chance
that
later
on,
where
it
is
sometime
later
this
year
or
early
2022,
we
scheduled
a
second
joint
meeting
to
address
other
potential
issues
and
some
questions
that
may
remain
after
our
first
meeting.
But
again
we
will
keep
you
posted
if
that
is
the
case,
and
we
certainly
look
forward
to
the
presentation
next
week.
C
Lastly,
I
wanted
to
give
you
some
updates
from
personnel.
We
did
welcome
a
new
benefit
analyst
this
week,
michelle
not
sure
from
pronouncing
the
last
name,
corelli
ciao.
She
started
on
monday
september
20th
and
she
came
to
us
from
another
department
within
the
city,
but
by
the
same
token
we
are
losing
peter
pham.
Peter
is
in
our
it
group
and
he
is
leaving
us
his
last
days
october
1st.
C
He
started
with
a
new
department
within
the
city
on
october
4th
and
lastly,
I
wanted
to
let
you
know
we
did
receive
the
request
for
actuarial
information
from
our
actuary
as
they
are
working
on.
The
valuation
process-
and
I
just
wanted
to
remind
you
that
for
you
june
30th
2021,
which
the
schedule
was
included
in
your
consent
agenda,
it's
going
to
be
a
bit
different
this
year
because,
as
we
do
every
five
years,
the
process
by
kyron,
our
actuarial
firm,
is
also
going
to
include
an
audit
of
the
evaluation
process
by
the
siegel
company.
C
B
A
quick
question:
I
know
I've
seen
a
preliminary
agenda
for
next
week's
joint
meeting.
Do
we
have
a
final
agenda
on
that?
Yet.
C
It
is,
and
we
will
make
it
available
this
week
for
all
trustees.
I
know
the
city
is
gonna.
They
need
to
post
that
today,
seven
days
in
advance,
so
as
soon
as
it's
available
we'll
make
it
available
to
the
boards.
Yes,.
E
In
regards
to
the
replacement
trustees,
so
you
stated
there
might
be
a
delay.
Does
that
mean
that
the
active
the
employee,
the
city,
employee,
trustee,
might
be
hired
or.
E
Before
january
and
that
the
retiree
might
be
january
or
later,
I
I
just
wanted
to
understand
the
time.
C
C
I
don't
I
don't
have
a
specific
timeline
trustee
jenny,
but
because
of
where
they
are
in
the
processes
for
both
sides
seems
to
me
that
the
the
appointment
of
the
active
employee
will
be
going
to
the
city
council
sooner
than
they
retire
reappointment.
C
My
understanding
is
that
there
were
some
issues
with
the
original
retiree
application
process,
meaning
that
there
were
some
apparently
mistakes
that
occur
in
the
process
and
that
the
city
clear
have
to
kick
off
that
process
again,
which
leads
me
to
believe
that
at
the
earliest
will
be
late
2021
before
the
retiree
could
be
going
to
the
city
council
for
appointment,
if
not
early
in
2022.
C
In
regards
to
employee.
My
understanding
is
that
there
was
still
there
was
the
aim
part
of
that
process,
and
so
I
I
I
haven't
received
any
updates
the
last
week
or
so,
even
though
I
did
seek
to
request,
I
did
request
updates.
We
haven't
heard
back
yet,
and
so
I'm
guessing
that
that
appointment
will
be
coming
before
the
city
council
later
this
year,
if
not
in
october.
Definitely
by
november.
C
E
C
The
election,
if
I
understand
correctly,
I
think
the
council
changed
the
requirements
some
time
back,
and
so
I
think
that
there's
an
election
when
I
believe
if
there
are
linda,
if
I'm
mistaken
correctly,
if
there
are
three
candidates
or
more,
they
will
perform
an
election.
Is
that
or
is
that
for
the
retiree?
Only
that
not
for
the
actors.
C
Okay
for
the
active,
I
think
the
challenge
with
the
active
trustee
jennings
is
that
we
don't
usually
get
members
willing
to
to
to
apply,
as
you
well
know,
yeah
for
the
board,
and
so
I
think
there
was
only
one
applicant
that
they
were
going
to
the
process.
So
that's
really
what
it
is.
It
was
only
one
applicant,
I
don't
know
where
they
are
in
the
process
of
validating
that
one
member,
that
they
have
the
experience
of
the
of
the
same
issues
that
are
required
to
be
able
to
be
accepted.
C
So
again,
I
did
request
an
update
and
I
have
received
one
so
as
soon
as
I
get
one
I'll,
let
you
know,
but
my
understanding
is
that
there
might
only
be
one
active,
employee
willingness
to
file,
and
so
that
would
not
require
a
a
go
into
an
election,
and
so
it
will
make
the
the
process
a
lot
a
lot
quicker.
Yes,.
C
C
But
again
I
need
to
I
need
to
hear
about
from
the
city
clerk.
I
have
her
back
on
the
specifics,
although
I
do
know,
I
remember
that
there
was
only
one
active
employee's
willingness
to
to
file
for
the
position
and,
as
I
said,
we
have
been
having
trouble
finding
employees
that
are
willing
to
participate
and
join
the
board.
So
again,
as
soon
as
I
hear
from
the
silicon
city
clerk
on
on
where
we
are
in
the
process,
I
can
provide
the
the
update.
A
B
Okay,
roberto
as
a
future
agenda
item
either
for
the
full
board,
or
perhaps
the
governance
committee-
do
we
need
to
take
up
the
attractiveness
of
trustee
service
and
what
incentives
can
be
changed
within
within
the
scope
of
law.
C
Well,
that's
really
under
the
preview
of
the
city
council.
They
they
are
the
one
that
that
actually
established
the
rules
of
well
first
days,
there's
the
the
code
requirements
by
the
law.
But
then
there
are
the
specific
requirements
by
the
governance
of
the
city
council,
which
they
actually
went
through
a
governance
process
some
10
years
ago,
and
that's
what
changed?
Not
only
the
composition
of
the
boards,
but
also
the
experience
requirements
for
the
public
members.
C
So
again,
that's
under
the
preview
of
the
city
council.
I
think
they've
done
as
much
as
they.
At
least
they
wanted
to
do
at
that
point
before
you
join
us
trustee
horowitz.
Both
boards
provided
staff
with
input
on
how
to
try
to
make
these
positions
encourage
members
from
the
public
and
members
from
the
plans
to
apply,
and
we
have
implemented
those
meaning.
C
If
they're
public
members
we
reach
out
to
different
agencies
outside
the
city,
including
health
care
and
and
financial
and
other
areas
and
universities,
and
from
the
public
we
reach
out
to
the
unions,
I'm
sorry
for
the
plant
members
we
do
reach
out
to
the
unions
and
let
them
know
linda
actually
leads
that
spearhead
that
process
linda.
Can
you
comment
a
little
more
on
the
on
the
reach
out
that
we
do
for
for
the
for
the
boards.
A
The
state
colleges,
the
alumni
associations,
like
roberto,
said
the
health
care
like
santa
clara
family
health.
Yes,
you,
you
covered
it
roberto.
E
Well,
and
and
the
unions
I
can
as
a
city
employee
and
trying
to
get
someone
on
there
and
I've
been
with
the
city
for
quite
some
time,
19
years
and-
and
I
know
a
good
amount
of
people
and
also
people,
I've
promoted
so
I've
I've
reached
out
to
a
number
of
people
who
have
worked
for
me
or
know
me
or
whatever,
to
try
to
offer
them
the
ability
who,
I
think
would
be
good
members
and
the
problem
that
I
see
is
that
these
people
are
very
busy
in
their
jobs
and
don't
have
the
additional
time
to
take
for
the
commitment.
E
The
time
commitment
and
that
I
think
is
their
biggest
concern-
is
that
dual
a
number
of
them
are
like
managers
and
given
the
complexity
of
their
jobs
and
given
the
vacancy
rate
that
the
city
is
running
and
the
additional
job
duties
like
you
know,
look
at
what
barbara
does
or
look
at
some
of
the
other
people
that
you
know
they.
They
are
probably
extremely
busy.
So
taking
that
additional
job
on
is
really
the
hardest
thing,
and
sometimes
again
they're
family
people.
They
have
children.
E
Whatever
you
know,
I
mean
they
just
don't
have
that
bandwidth
and
there's
no
financial
incentive.
I
don't
know
if
that's
really
necessary,
but
I
do
know
that
I
had
employees
that
would
do
language
translations.
They
would
get
paid
for
that.
There's
no
pay
incentive
to
be
a
board.
Member
again,
I
don't
know
if
that
would
make
a
difference.
It
didn't
to
me.
B
E
B
Okay,
great
and
I
believe
the
next
agenda
item
is
from
chiron
and
before
we
get
into
the
excitement
of
actuarial
and
amortization
policy.
M
Hopefully,
everyone
can
see
the
screen
yes,
so
in
preparation
for
the
pension
obligation
workshop
and
the
process
for
the
valuation,
we
wanted
to
take
some
time
to
do
primarily
an
educational
presentation
on
how
we
developed
the
amortization
policy
and
how
it
might
be
affected
by
a
pension
obligation,
block
and
so
to
start
out
with.
I
wanted
to
just
talk
about
the
roles
as
we
see
it
between
the
city
and
the
retirement
board
on
these
issues.
M
M
The
city
also
has
to
pay
the
contributions.
They
pay.
The
actuarially
determined
contribution,
that's
set
by
the
board,
and
then
they
have
the
option
to
pay
a
supplemental
contribution,
and
so
that's
where
the
pension
obligation
bonds
come
in
is
in
the
context
of
a
supplemental
contribution.
M
The
board
is
responsible
for
the
investment
policy
of
the
all
of
the
assets
and
the
policies
that
set
the
actuarially
determined
contribution,
and
that
includes
the
assumptions
methods
and,
in
particular,
the
amortization
policy
that
we
want
to
focus
on
today.
M
N
One
of
the
first
steps
that
we
do
in
the
valuation
we
one
of
the
main
steps
is
we
calculate
the
projected
benefit
payments.
So
what
we
do
is
we
take
the
plan
provisions.
N
N
Okay,
so
what
we
do,
then,
is
where
that
that
assumption
your
discount
rate
and
your
expected
rate
of
return
comes
into
play.
Is
you
discount
all
those
projected
benefit
payments,
so
what
you
can
see
is
the
bottom
portion
of
the
graph,
which
is
the
dark
purple.
That's
the
actual
discounted
value
and
the
light
purple.
That's
the
amount
that's
attributable
to
the
interest
on
those
benefit
payments.
So
if
you
discount
all
of
them,
you
can
see
that
if
you
had
well,
you
can't
receive
from
this.
N
N
That's
the
amount
that
you
that's
the
value
as
of
today,
you
would
need
to
fund
all
the
projected
benefit
payments
for
the
current
employee,
current
participants
in
the
plan.
If
the
plan
were
to
earn
the
assumed
return
of
6.625
percent,
what
we're
going
to
focus
on
is
we're
going
to
focus
on
that
dark
purple.
Part
of
it
and
that's
the
that's
the
value
as
of
your
valuation,
your
valuation
date
of
those
benefit
payments.
If
you
take
the
sum
of
all
of
those,
you
get
what's
called
the
present
value
of
future
benefits.
N
Now
what
you
do
is
the
present
value.
Future
benefits
can
be
broken
down
into
two
other
portions
in
your
blue
portion.
You
have
your
arterial
liability,
which
is
the
portion
of
the
present
value
future
benefits,
that's
attributable
to
benefits
that
have
already
been
earned
for
your
current
participants,
and
then
you
have
your
present
value
and
future
normal
cost,
which
is
the
portion
of
that
liability.
N
Well,
you
have
the
portion
of
your
actual
value
of
assets,
that's
the
amount
that's
already
in
the
in
the
fund
and
that's
your
green
portion
there
and
then
you
have
what's
called
the
unfunded
actuarial
liability,
which
this
is
the
portion.
This
is
the
difference
between
the
assets
that
you
currently
have
and
that
funding
target
or
arterial
liability
so
that
unfunded
actual
reliability
is
what
we
really
focus
on
when
we
start
developing
the
amortization
policy.
E
Okay,
trustee
jenny
all
right,
so
I'm
sorry,
but
some
of
this
is
really
confusing
to
me
and
if
it's,
if
you
go
back
to
your
actuarial
liability
and
the
present
value
of
future
normal
costs,
I
I
didn't
quite
take
that
leap
between
the
present
value
future
benefits
and
then
to
that
slide,
the
gray
part.
I
don't
quite
get
that
one.
N
So
your
prism
valley
future
benefits
you're.
Looking
at
all
your
current
participants
in
the
plan
you're
looking
at
the
benefits
that
are
going
to
be
due
to
them
in
the
future,
and
that's
your
credibility
benefit
well
for
your
active
participants
in
the
plan.
There's
two
parts
to
that
projected
benefit
payment,
there's
the
amount
that
they've
already
accrued.
N
So
if
they
were
to
leave
the
plan
right
now,
what
would
their
benefit
be
and
then
there's
a
portion
of
what
are
they
going
to
accrue
from
this
valuation
date
through
the
time
when
they
terminate
or
retire
from
the
plan
so
that
prison
value
of
future
normal
costs
is
attributable
to
service
that
they
haven't
yet
accrued?
But
they
are
expected
to.
E
Accrue
okay,
so
this
is
for
employees
that
have
not
yet
retired.
Yes,
that
are
still.
N
E
E
N
E
Okay,
so
the
great
part
is
then
for
the
active
employees.
Like
myself,
I
am
an
employee
right
so,
depending
when
I
retire
you're
trying
to
estimate
when
that
might
be,
and
possibly
any
increase
in
salary
cost
or
something
because
of
that
as
well.
Absolutely,
yes,
all
right
all
right!
So
that
takes
you.
So
that's
what
you're
doing
there
yeah
and
then.
M
So
the
key
here
is
it's
based
on
service
up
to
the
valuation
date,
so
any
benefit.
That's
attributable
to
service
prior
to
the
valuation
date
goes
in.
The
blue
portion
benefit
attributable
to
service
after
the
valuation
date
goes
in
the
grade
portion.
C
M
We'll
have
an
actuarial
liability
and
that
will
be
for
benefits
attributable
to
service
prior
to
june
30th
2021,
and
then
there
will
be
a
present
value
of
future
normal
costs,
which
is
attributable
to
benefits
expected
to
be
earned
after
june
30th
2021.,
okay,.
E
Right
and
then
you
go
to
the
one:
that's
the
christmas,
colors,
the
red
and
green
unfunded
actuarial
liability
and
the
actuarial
value
of
assets.
Can
you
explain
again
to
me
what
that
is.
N
E
M
E
Okay
all
right.
I
understand
it's
just
you
go
through
it
really
fast
and
when
I
mean
I'll
just
be
honest,
I
have
probably
maybe
I'm
being
generous
60
40
understanding
of
what
you
guys
do
and
60
is
what
I
understand
and
40
is
what
I
don't
so,
but
I
think
it's
really
important
for
me
to
understand
this
because
we're
going
into
the
pension
obligation
and
and
you're
really
trying
to
get
us
to
a
certain
level.
So
thus,
I'm
being
a
little
more
particular
about
what
I
don't
understand,
yeah.
No,
this.
P
Okay,
good
morning,
everyone
so,
as
jackie
discussed
the
the
total
funding
target,
we
split
into
an
amount,
that's
funded
and
an
amount,
that's
unfunded,
so
you
can
think
of
the
total
funding
target
as
the
assets
that
the
trust
would
need
today
to
pay
all
those
benefits
that
that
jackie
showed
in
an
earlier
slide.
So
the
so
the
shortfall
is
the
unfunded
actuarial
liability
and,
as
we
show
here,
it's
roughly
two
billion
dollars
now,
there's
so
there's
a
trade-off.
How
do
you?
How
do
you
fund
this
right?
P
There's,
there's
a
trade-off
between
the
length
of
time
and
the
affordability,
so
you
know
paying
it
all
in
one
go
two
billion
dollars:
it's
probably
not
going
to
be
affordable,
but
that
would
be
a
quick,
quick
fix
right
on
the
on
the
other
side.
If
you,
if
you
set
too
long
of
a
period
to
pay
this
off,
then
then
you
won't.
Even
you
won't
pay
it
off.
You
know
too
long
a
period.
P
Excuse
me,
you
don't
pay
the
interest
so
there's
a
balance
there
trying
to
set
up
an
hour
station
period.
That
is
a
reasonable
period
of
time,
and
it
will
also
pay
off
the
unfunded
liability.
I
P
As
very
similar
to
a
20-year
mortgage
payment
right,
the
but
the
interest
rate
is
the
6.625
percent.
So
that's
that's!
You
can
think
of
it
as
the
earnings
on
on
the
assets
that
aren't
there,
and
so
similarly,
you
know
similar
to
a
mortgage
payment.
There
is
interest
and
principal
being
paid,
so
we
show
in
the
in
the
the
darker
pink
color
the
principal
payments
and
the
lighter
color,
the
expected
investment
earnings,
so
essentially
the
interest
on
those
payments.
So
this
is.
P
Like
now,
that's
straightforward:
it's
not
how
things
are
usually
done.
P
So
here
we
show
payments
increasing
at
a
rate
of
2.75
percent,
so
that
that
is
the
rate
that
is
used
for
the
federated
plan,
and
that
is
a
a
rate
of
increase.
That's
somewhere
between
inflation,
the
inflation
assumption
and
the
payroll
growth
assumption
and
the
reason
the
reason
most
plans
do
this.
Is
it
it
better
tracks,
payroll,
growth
and
and
revenue
growth?
P
So
so
here
right
you
know
the
the
level
dollar
payment
sort
of
front
loads
things
so.
A
P
We're
showing
what
what
would
actually
what
is
currently
done
with
the
the
federated
plan,
a
rate
of
growth
of
2.75
on
these
payments,
and
that
that
amortization
would
would
pay
off
the
2
billion
over
20
years
with
that
rate
of
increase
in
there.
So
you
can
see
it
starts
at
140
goes
up
to
240
million.
P
Now,
that's
all
fine
and
well,
but
the
the
unfunded
actual
reliability
is
not.
You
know
it's
a
moving
target,
so
it
changes
over
time
and
and
when
it
changes
we
need
to
add.
You
know
we
need
to
tweak
these
payments
so
that
so
that
the
funding
target
will
still
be
met
out
in
the
future.
P
So
so
here
we're
illustrating
an
an
experience,
loss
right,
so
gains
and
losses
are
currently
for
for
tier
one
amortized
over
20
years,
and
so
so
here
you
can
see,
there's
a
new
layer
at
the
bottom,
yellow
and
yellow,
and
so
so
this
would
be
if
if
there
was
an
experience,
loss
right
in
the
upcoming
valuation
that
gets
amortized
over
those
20
years,
it
creates
a
new
layer
on
the
bottom.
There.
P
Similarly,
there
could
be
experience
gains
right,
so
you
know
good
asset
returns.
If
people
you
know
aren't
living
as
long
as
expected,
those
sorts
of
things
create
experience
gain
so
those
those
actually
create
negative
layers
that
decrease
the
amortization
payments.
So
here
we're
showing
how
that
works.
P
Now
there
are
additionally
other
items
that
can
change
right,
as
we
do
experience
studies
every
periodically
five
years
or
so
some
of
the
assumptions
can
change
and
those
impact,
the
unfunded
actuarial
liability
and
currently
those
are
funded
over
25
years.
So
they're
spread
out
a
little
bit
longer
to
make
make
them.
I
guess,
for
a
little
more
stability,
but
we're
illustrating
a
layer
here
in
purple.
That
shows
the
an
assumption,
change
that
that
is
a
positive
of
four
million
a
year,
so
that
so
that
that
would
be
an
assumption.
M
So
I
think
the
thing
to
keep
in
mind
here
is
that
any
valuation,
the
present
value
of
all
of
these
amortization
payments
has
to
add
up
to
our
unfunded
liability.
M
So
when
the
unfunded
liability
changes,
then
we
add
another
series
of
payments
so
that
the
total
still
adds
up
to
the
unfunded,
landlord
payments
or
credits
and
when
you
keep
doing
that
year
after
year,
you
end
up
with
this
mosaic
of
amortization
pans.
Now
these
are
the
amortization
schedule
from
the
2020
evaluation,
with
the
addition
of
the
2021
investment
gain
based
credit
that
we've
added
on
here.
M
But
you
can
see
we
we
reset
the
amortizations
in
2009,
so
there's
this
huge
payment
layer
from
the
unfunded
liability
in
2009,
just
like
we
kind
of
started
in
the
example
with
the
current
two
billion
and
then
since
then,
all
the
the
yellow
boxes
are
different
experience,
gains
and
losses
and
all
the
purple
are
assumption
changes
that
we've
adopted
in
between.
M
Now
we
have
a
big
investment
gain
this
year,
but
we
only
recognize
20
of
it
each
year,
so
we're
smoothing
that
in
over
the
in
the
actuarial
value
of
assets.
So
this
is
just
that
20
piece
when
we
run
our
projections,
we're
projecting
the
rest
of
that
game
to
come
in
and
so
we'll
get
the
credit
for
the
2022
investment
gain.
M
No,
what
we're
saying
is
it's
actually
the
2021
investment
gain,
but
we're
recognizing
it
over
five
years.
So
this
is
the
credit
in
2022
that
would
come
from
that
investment
gain
if
we
continue
to
earn
six
and
five-eighths.
E
M
Yeah
and
then
that's
it,
okay,
and
so,
if
you
look
at
what
that
does
to
our
net
amorization
payment,
it
drops
it
from
the
teal
line
down
to
the
dark
blue
one
and
so
that's
a
reduction
in
amortization
payments
of
about
40
million
dollars.
A
M
The
other
thing
that
that
actually
does
is
out
here
in
the
future.
It
creates
a
net
amortization
credit,
so
we've
got
a
net
amortization
credit
of
over
40
million
dollars,
scheduled
in
2042.
M
Now
that's
a
long
ways
out.
That
assumes
we
get
six
and
five-eighths
percent
return
for
the
next
20
years,
so
I
certainly
wouldn't
bank
on
that
credit.
Yet,
but
that's
that's
what
we'd
have
scheduled
there?
M
You
know
there's
a
interesting
little
dynamic
here
we
have
a
minimum
contribution
in
the
plan
equal
to
the
normal
cost,
and
so
the
only
credit,
the
maximum
credit
we
can
take
is
just
to
pay
our
administrative
expenses,
and
so
the
rest
of
this
credit,
so
that'd
be
we're
estimating
about
four
million
that
we
could
take
in
2041
out
of
the
41
million
credit,
the
rest
of
that
credit
just
rolls
over
in
and
maintains
or
helps
build
a
surplus.
M
So
if
we,
if
we
get
there,
that
would
be
the
dynamic,
but
that
may
come
into
play
when
you're
designing
a
pension
obligation,
bond,
yeah
and
so
we'll
come
back
to.
E
M
That's
the
that's
the
big
piece,
yeah,
there's
all
these
little
pieces,
and
and
there
will
be
new
pieces
that
come
in
here
during
this
period
that
we're
not
showing
because
we're
just
assuming
all
of
our
assumptions
are
met.
Okay,.
M
E
Because
that's
if
you
look
at
that,
what
is
that
about
so.
M
And
it,
but
it
grows
up
here
to
90.
M
M
And
so
then
there
is
this
issue
here
out
at
20
years,
where
it's
increasing
the
amortization
credits
that
can't
be
used,
and
so
there's
there's
limited
benefit
there,
but
that's
out
20
years
or
18
years.
M
Now,
from
the
city's
perspective,
though,
they
have
to
pay
a
debt
service
on
the
pension
obligation
bond,
and
so
while
it
wouldn't
be
in
our
amortization
schedule.
I
added
a
piece
here
for
their
debt
service
and
we
understand
that
they
intend
to
set
it
up
as
a
level
dollar
payment,
and
I
set
it
for
20
years,
assuming
three
percent
interest
on
the
plb.
M
Just
as
an
illustration,
and
so
then
this
lighter
green
line
shows
the
net
payment
to
the
plan,
plus
the
city's
debt
service
on
the
plb,
and
so
you
can
see
in
the
early
years.
It
starts
out
fairly
close
because
we
set
up
our
amortization
credit
with
a
2.75
percent
increase
each
year
and
they
set
up
their
debt
service
as
a
flat
dollar
amount.
M
That
theirs
is
based
on
three
percent,
and
ours
is
based
on
six
and
five
eights.
Those
happen
to
work
out
to
be
pretty
close
to
the
same
number.
At
the
beginning,
but
over
time
as
the
amortization
credit
increases
in
the
p
pob
debt
service
does
not
the
difference
grows.
M
Now,
when
we
get
to
the
full
funding
position
here,
the
payment
to
the
plan
is
kept
by
the
same
minimum,
but
then
the
city
has
to
pay
their
debt
service.
On
top
of
that,
so
the
actual
payments
for
the
city
would
be
higher
in
those
years
with
the
bob.
B
Some
bill
looking
at
this
first
of
all,
if
we
look
at
2036,
my
eyesight
is,
is
strained.
What's
the
actual
delta
between
the
current
amortization
projection
versus
what
the
net
net
would
be
with
the
pob,
so
that's
146
versus
155,
so
under
10
million
delta.
A
B
B
Is
there
even
a
positive,
a
total
amount
to
the
city
plus
pension
plan.
M
I
haven't
done
that
calculation
because
I
I
suspect,
given
this
dynamic,
what
the
city
would
actually
look
to
do
is
something
more
like
a
17-year
bond
and
while
the
board's
policy
would
be
to
stretch
the
amortization
credit
over
20
years,
if
we
didn't
make
any
change,
we
would
recommend
that
the
board
match
the
amortization
credit
period
with
the
term
of
the
bond.
M
And
so,
if
they
do
that,
then
it
takes
out
that
issue
of
the
expected
full
funding.
M
Now
one
thing
to
keep
in
mind
here
is
this:
is
20
years
out,
so
it's
very
uncertain
about
what
is
going
to
happen,
but
if
you're
doing
a
pension
obligation,
bond,
you're
betting
on
good
investment
returns,
not
bad
investment
returns.
B
M
Right,
yes,
these
payments
will
be
set
once
we
we
will
set
up
this
amortization
credit,
which
the
actual
credit
each
year
could
be
affected
by
our
amortization
policy,
including
our
discount
rate,
so
that
might
change.
M
But
in
addition,
the
assets
we
get
are
going
to
contribute
to
any
investment
gain
or
loss
that
we
have,
and
so
these
future
gold
bars,
whether
they're,
positive
or
negative,
will
be
larger
in
magnitude
because
we
have
additional
assets.
F
Bill
isn't
it.
You
had
said
you
know
doing
a
pension
obligation,
bond,
you're
betting
on
good
investment
returns,
not
bad
investment
returns.
Wouldn't
it
be
truer
to
say
you're,
betting
on
near-term,
good
investment
returns,
as
opposed
to
just
in
general,
because.
M
M
But
that's
the
dynamic
that
you
would
see
on
this,
and
and
so
just
looking,
I
don't
know
what
the
city
is
really
considering
doing,
but
I
would
expect
they'd
be
for
your
plan.
They'd
be
looking
at
something
like
this
17-year
bond
just
because
of
the
schedule
that
we've
set
up
here
now.
M
We
do
have
complete
control
over
this
schedule
and
we
can
make
changes
to
it
and,
in
fact,
for
police
and
fire
we
have.
M
We
have
not
done
it
for
federated
other
than
minor
tweaks
to
the
schedule,
but
normally
we
are
looking
for
pretty
stable
future
contributions,
and
so
I
wouldn't
be
surprised
if,
when
we
get
out
10
more
years,
if
we're
still
looking
at
this
cliff.
M
And
we
did
do
that
for
police
and
fire.
Their
cliff
was
coming
much
earlier
because
they
had
a
15-year
amortization
schedule
and
when
we
put
this
2009
base
in
it
was
over
30
years,
which
is
why
it
ends
in
2039..
M
And
so
there
their
cliff
was
much
earlier.
And
so
we
did
make
some
changes
to
it
so
that
it's
a
smoother
downslope
rather
than
dropping
off
in
class.
M
M
It
may
go
down,
but
it
we
would
structure
it
so
that
it
does
not
go
up.
But
after
that,
it's
going
to
depend
on
what
the
experience
of
the
plan
is.
We'd
have
a
schedule
that
would
continue
that,
but
the
experience
of
the
plan
would
adjust
it
as
we
go
forward.
M
So
any
questions
on
that.
I
wanted
to
switch
over
to
our
model
and
just
show
you
some
sensitivity
to
investment
returns
and
also
to
the
discount
rate.
But
before
I
leave
this
presentation,
I'm
going
to
check
if
there
are
any
questions.
M
M
So
this
is
our
normal
model.
We
show
with
the
valuation
I've
added
this
actual
cash
flow.
Yes
means
we're
actually
using
the
2021
asset
statements,
so
we've
overridden
our
projections
for
2021,
with
the
actual
contributions,
actual
benefit
payments
and
actual
investment
earnings
during
the
period.
M
The
bottom
we're
showing
the
contributions
as
a
percent
of
pay,
the
member
in
purple
and
the
city
in
gold.
The
black
line
is
that
normal
cost.
It's
the
value
of
the
benefits
attributed
to
that
current
year
of
service.
That
is
also
the
minimum
contribution
level.
M
M
M
M
The
pattern
here
is
something
that
we
like
to
see
both
in
that
it's
going
down,
but
it
moves
relatively
smoothly
until
you
get
out
to
2040.
M
Yes,
right
now,
that's
because
we
got
the
30
returns.
So
you
know
these
projections
are
not
set
in
stone,
but
let
me
change
the
baseline
red
line
so
that
it
matches
that
projection
and
then
I'm
just
going
to
put
in
a
couple
different
returns
here
to
show
you
what
what
could
happen
going
forward.
So
if
we
got
a
zero
return,
I
we're
going
to
see
a
gradual
increase
over
those
projections,
but
it's
not
dramatic
and
does
not
get
us
all
the
way
back
to
where
we
were.
M
C
Return
in
in
one
year
bill.
Yes,
if
I,
if
I
made
a
couple
of
things
when
you
refer
to
the
funding
ratio
on
the
top,
that
funding
ratio
is
on
a
market
value
basis,
not
on
the
actuary
value
basis,
right
which,
of
course,
the
city
makes
contributions
on
the
actuarial
value
basis,
not
on
the
market
value
basis.
Right.
C
M
C
C
I
know
you
plan
to
bring
this
model
to
the
thresh
testing
to
the
joint
meeting
joint
meeting
of
the
boards
with
the
city
council
as
well,
so
that
everyone
can
see
what
will
happen
if,
if
we
have
better
results
than
expected
results,
just
as
we
expected
them
to
be
or
results
that
are
more
negative
than
we
expected
so
that
they
can
see
how
the
funding
ratio
and
contributions
will
move
around.
Does
that
make
sense.
M
Yes,
okay,
we
are
putting
together
just
some
illustrative
scenarios
to
show
the
city
council,
so
we
don't
have
to
just
freelance,
but
then
we
will
have
the
ability
to
freelance
if
they
so
choose.
C
M
We
can
get
a
repeat
performance,
it
would,
it
would
drive
us
up
above
80
percent,
funded
on
a
market
value
basis.
C
F
A
suggestion
on
the
on
the
illustrations
that
you're
going
to
do
at
the
joint
meeting,
so
the
6.625.
F
Assumption
assumed
rate
of
return
is
something
that,
in
the
time
that
I've
been
on
this
board
now,
almost
five
years,
the
assumed
rate
of
return
has
gone
down
at
least
an
eighth
of
a
point,
if
not
more
every
year
or
two.
So
what
I
would
be-
and
I
don't
know
if
there's
a
floor-
that
there
hasn't
been
a
floor-
that's
been
discussed,
but
the
the
risk-free
return
that
we've
been
talking
about
is
much
much
lower
than
the
6.625
that
we
are
targeted
at
our
assumed
rate
of
return.
F
So
it
would
be
helpful
for
for
me,
I
think
if
you
did
not
assume
a
discount
rate
of
6.625
for
these
projections
since
you're
doing
since
you're
doing
an
illustration
for
us,
but
rather
decreasing
by
at
least
an
eighth
every
year.
So
we
could
actually
see
what
is
most
likely
to
happen,
as
opposed
to
this
assumption.
That
we
all
know
is
not
true
and
we're,
not
even
in
20
years
likely
going
by
an
eighth.
If
I'm
doing
my
math
correctly
we're
not
going
to
get
to
the
floor
of
a
risk-free
set
of
assets.
M
You
know
lower
and
lower
assumed
rates
of
return
across
the
board,
not
just
with
your
plan,
I'm
happy
to
show
you
know
some
projections
at
different
discount
rates,
but
I
I
don't
think
I
would
want
to
represent
that
an
eighth
of
a
percent
reduction
in
discount
rate
per
year
over
the
next
10
or
20
years
is
the
most
likely
path.
F
M
M
This
is
the
unfunded
liability
that
we're
graphing
here,
so
it
was
about
2.2
billion.
It's
now
projected
to
be
1.6
billion
in
2021,
and
so,
if
we
did
drop
the
discount
rate,
let's
say
we
dropped
it
all
the
way
to
six
and
a
quarter.
M
We
would
estimate
that
that
would
increase
the
unfunded
liability
to
1.85
percent,
and
then
you
can
see
how
it
would
affect
the
contributions
going
forward.
E
E
E
F
G
Our
mandate,
right
as
the
board
members,
is
to
review
the
strategic
asset
allocation
and,
over
the
course
that
conversation
with
chiron
and
the
external
consultants
and
amongst
the
ic
is
that
conversation
around
what
the
discount
rate
ought
to
be,
and
it's
driven
by
a
bunch
of
factors.
I
think
it
might
be
just
a
little
bit
off
agenda
from
maybe
what
bill
is
trying
to
share
with
us
at
the
moment.
You
know
what
is
the
perfect
discount
rate.
You
know
and
I
don't
think,
there's
a
a
right
answer.
G
The
question
is
I
I'm
thinking
along
with
councilman
davis
was
councilwoman.
Davis
was
saying,
is
how
best
to
present
this
chart
to
the
broader
group
sort
of
with
the
right
caveats
of
you
know:
there's
a
lot
of
data
there,
so
sort
of
starting
with
the
basis
basic
definitions
where
we
are
in
discount
rate,
currently
acknowledging
that
that
number
could
change.
I
don't
have
any
sense
whether
that's
going
to
be
an
eighth
or
a
half
a
percent
or
a
percent.
G
Sorry
sorry
about
that
going
forward,
but
I
think
we
want
to
really
sort
of
keep
people
focused
on.
You
know
some
of
the
key
elements
around
that
large
unfunded.
Actual
liability
is
always
going
to
be
the
elephant
in
the
room,
so
I
hope
that's
helpful.
F
I
just
think
it's
disingenuous
to
show
this
slide,
for
example,
with
a
discount
rate
that
decreases
in
one
year
and
then
stays
the
same.
That
has
not
been
my
experience.
Historically,
I
see,
and
so
my
point
is
to
make
this
change.
If,
if
you're
going
to
show
a
change,
don't
show
any
and
one
big
change,
but
it's.
F
F
You
know
regularly
over
time
by
an
eighth
to
three-eighths
of
a
percent,
so
that
needs
to
be,
I
think,
added
into
this
model,
since
this
is
a
dynamic
model
to
say,
if
we're
taking
recent
history,
as
as
I
think
we
should
being
likely
future
events,
then
that
needs
to
be
shown
in
this
model.
That's
one
of.
G
G
Behavior
I
just
intellect
just
a
way
of
presenting
it.
I
mean
I,
I
don't
have
a
particular
bias
as
to
how
it's
presented
because
either
way
it's
going
to
be.
You
know,
showing
multiple
scenarios.
You
can
tweak
any
one
of
these
different
inputs
to
get
to
an
outcome.
B
If
I
can
suggest
bill,
I
mean
the
beauty
of
this
particular
slide.
Is
you
you've
built
the
you've
built
the
machine,
so
we
can
do
sensitivity,
analysis
and
perhaps
is
illustrating
a
what
may
be
potentially
be
a
worst
case
example
showing
what
a
eighth
of
a
point
decline
in
the
discount
rate
annually
going
out
to
2040.
What
that
might
look
like
I
mean
that's
one
possible
future.
B
We
don't
know
my
my
own
view
on
the
recent
past
is
our
pension
plan,
along
with
all
the
pension
plans
in
the
country
started
out
with
discount
rates,
maybe
a
decade
ago,
eight
and
a
half
percent
that
were
unrealistic
and
they
were
constantly
feeling
for
the
floor
and
we
we
may
be
getting
close
to
where
the
floor
is
so.
I
don't
know
that
it's
an
iron
rule
that
we
will
continue
to
decline
the
discount
rate
in
future.
B
It
is
a
discussion
we
have
every
year,
so
it's
a
possibility
that
we
change
it
annually,
but
the
I
think
the
ideal
is
to
get
to
a
point
where
we
come
to
a
discount
rate,
which
we
actually
truly
believe
is
reflective
of
a
20-year
return
that
we
can
expect
based
on
our
asset
allocation,
and
I
don't
think
we
will
ever
get
to
a
risk
reallocation
because
well,
honestly,
that
wouldn't
make
much
sense.
We
want
to
take
some
risk
in
the
market
in
order
to
earn
returns
above
the
risk-free
rate.
B
M
So
one
of
the
simple
charts
that
I've
shown
not
just
to
you,
but
when
I
speak
to
audiences
across
the
country
about
what's
happened
with
public
pension
plans
in
general,
is
just
showing
the
yield
on
the
10-year
treasury
compared
to
the
median
assumed
rate
of
return
for
public
plants
and
back
around
2000.
M
What
do
we
expect
going
forward?
Well,
there
are
two
questions,
one,
what's
going
to
happen
in
the
markets
to
interest
rates
and
valuations,
but
then
also
do
we
want
to
narrow
that
gap
between
our
expected
return
and
the
10-year
treasury.
M
If
we
want
to
get
it
back
to
you
know
a
two
or
three
percent
gap:
that's
going
to
mean
that,
yes,
we
do
have
to
have
significant
reductions
in
the
discount
rate
going
forward
unless
interest
rates
bounce
back
up.
M
If
we're
comfortable
with
the
gap
we
have
now,
then
there's
no
change
going
forward,
and
so
you
know
projecting
where
we
go
with.
That
is
a
matter
of
the
risk
assessment
and
what
you
want
to
do.
M
I
do
think
that
that
equation,
especially
with
the
risk
assessment,
changes
substantially
if
you
become
fully
funded,
but
that's
not
in
the
near
term
horizon
for
this
plan,
so
that
particular
piece
may
come
up
in
the
future
or
if
we
get
some
good
returns.
That
could
change
our
our
perspective
on
it
sooner
rather
than
later,
but
we're
still
looking
the
ways
down
the
road
before
that
becomes
a
machine.
M
Just
because
of
the
impact
it
has
on
the
sponsor
budgets,
and
so
you
may
be
in
reducing
the
discount
rate,
an
eighth
or
a
quarter
each
year
to
in
an
effort
to
get
down
to
a
more
comfortable
discount
rate,
but
I
think
we're
we're
now,
at
least
for
this
plan
within
that
range,
maybe
there's
a
little
more
to
go
down
or
maybe
not,
depending
on
on
your
perspective,
we'll
be
presenting
the
updated
capital
market
assumptions
in
october
so
next
month,
for
this
board
to
start
looking
at.
B
B
It
is
a
complex
issue
and
might
be
beyond
the
scope
of
this
particular
agenda
item,
but
is
one
we
will
grapple
with
as
as
bill
mentions
when
we
deal
with
asset
allocations
and
the
capital
market
assumptions
that
we
will
hear
next
month,.
D
Tiz,
thank
you.
This
is,
I
really
I
thought
that
was
a
terrific
discussion
following
the
slide
presentation
that
that
will
that
will
be
featured.
I
think
in
future
conversations.
D
So,
let's,
let's
try
to
put
a
marker
on
that
discussion
with
the
board
regarding
the
idea
of
de-risking
the
plan,
as
we
close
get
closer
to
full
funding
of
the
plan.
That
is
a
very
intriguing
and
positive,
powerful
concept
that
most
public
plans
haven't
had
the
privilege
of
grappling
with
over
the
last
several
years.
D
Given
you
a
confidential
legal
memorandum
maytag-
and
I
authored
that
for
you
to
try
to
give
you
the
context
of
how
all
this
fits
in
with
your
fiduciary
responsibilities,
but
you're
very
familiar
with
those
responsibilities
already,
because
in
the
ordinary
course
of
what
you
do,
as
trustees
and
stewards
of
this
plan
amortization,
which
was
the
last
presentation
that
bill
and
and
chiron
presented
to
you,
jackie
and
steve.
D
The
amortization
discussion
is
really
a
piece
of
a
much
broader
use
of
actuarial
talent
to
assume
certain
things
about
the
future
in
terms
of
job
growth
and
hiring
and
mortality
rates
and
the
assumed
rate
of
return.
Those
are
things
that
this
board
deals
with
in
the
ordinary
course
on
a
regular
basis
as
you
go
through
the
actuarial
evaluation
and
you
go
through
the
asset
allocation
analysis
and
your
risk
benefit
comfort
levels,
all
those
things
that
you
do
in
the
ordinary
course
and
as
counsel
in
this
process.
D
D
As
a
result
of
the
influx
of,
however
many
millions
of
dollars
that
may
be
of
additional
money
from
whatever
source
I
mean
the
city,
the
city
could
put
additional
contributions
into
the
system,
either
through
a
pension
obligation
bond
or
through
additional
funds
coming
from
federal
programs
or
general
funds
surplus.
D
It's
really
we're
very
from
the
pension
board
point
of
view,
we're
agnostic
about
the
source
of
that,
and
I
want
to
I'm
going
to
revisit
that,
because
whether
the
city
and
its
bond
underwriters
and
the
credit
rating
agencies
believe
that
the
arbitrage
that's
available
to
the
city
now
to
be
able
to
borrow
it
three
percent
or
less
and
put
it
into
a
plan
that
is
growing
at
greater
than
that
amount.
Those
are
decisions
that
are
not
our
board's
decision.
We
don't
care
where
the
money
comes
from.
D
D
Let
me
mention
we
had
a
presentation,
I
think
laura
weirich
from
nikita
highlighted
today
that
in
this
last
fiscal
year
we
took
in
over
700
million
dollars,
and
we
did
that
and
we
treated
it
in
the
ordinary
course
of
our
asset
liability
studies
and
our
asset
allocation,
our
assumed
rate
of
return.
D
We
didn't
move
the
needle
on
those
decisions
because
we
took
in
700
million
dollars.
However
much
the
pension
obligation.
Bonds
may
be
that
money,
I
believe,
should
be
put
into
the
system
in
the
ordinary
course
of
the
decision
making
that
you
do
pension
obligation,
bond
proceeds
for
us
are
really
no
different
than
any
other
earnings
of
the
system.
D
Now
they
may
come
all
in
at
one
time
and
we
may
want
to
talk
about
dollar
cost
averaging
or
whatever
methodology
for
putting
the
money
out,
but
we're
not
going
to
specially
treat
those
those
proceeds
unless,
of
course,
they
so
far
exceed
what
we
ordinarily
earn
and
have
been
earning
that
they
have
a
special
impact
on
the
fund.
I
don't
think
they
will
have
a
special
impact
on
the
fund
over
time.
D
D
D
D
D
We
don't
start
with
contributions
and
reverse
engineer
back
into
all
of
our
assumptions,
so
contribution
rates
the
impact
on
contribution
rates
and
how
we
can
mitigate
volatility
through
the
use
of
the
actuarial
methodologies,
like
the
amortization
rate
over
time.
That's
the
end
of
the
board's
process,
not
the
beginning
of
the
board's
process,
and
I'm
going
to
take
one
exception
just
to
highlight
this
bill
on
on
slide
32.
I
think
it
was
at
very
end.
D
You
were
making
you
say
you
were
going
to
recommend
that
whatever
we
do,
that
we
set
the
amortization
in
the
first
year
to
not
exceed
what
the
city
is
presently
paying
in
contribution
rates
plus
their
pob
debt
service,
and
I
want
to
suggest
to
you
that
we
should
not
let
that
tail
wag,
the
investment
dog
or
the
assumptions
that
we
make.
If
that's
the
result,
I
think
that's
perfectly
fine,
but
that's
not
that
we
don't
skate
towards
that.
D
Puck
in
setting
all
of
the
other
assumptions
and
creation
of
of
how
we
actually
fund
the
system
perfectly
fine,
if
that
is
the
end
result,
but
as
I
say,
the
board
has
a
fiduciary
responsibility
to
assure
the
actuarial
soundness
of
the
system
and
the
employer's
contribution
rate
is
derived
from
all
the
other
things
that
we
do
both
from
an
actuarial
standpoint
and
an
investment
standpoint,
and
once
we
get
those
things
set
in
place,
then
we
can
use
a
a
methodology,
like
the
amortization
schedule
to
nibble
at
the
edges
and
take
the
edges
off
of
the
impact
to
the
plan
sponsor
and
to
the
employees.
D
D
D
D
Once
you
have
a
full
set
of
facts
to
consider
to
deliberate
over
to
do
the.
If
then
proposals,
you
have
a
lot
of
discretion
given
to
you
as
trustees
of
a
public
pension
fund
in
order
to
shepherd
the
assets
of
the
system
and
assure
the
soundness
of
the
system.
So
let's
gather
as
much
information
as
we
can
we're
not
in
the
decision-making
mode
quite
yet
on
these
things.
But
the
message
I
want
to
leave
you
with
today
is
ordinary
course
take
in
whatever
is
being
proposed.
D
B
G
I
may
be
jumping
the
gun,
but
I'm
just
wondering:
should
the
city
go
ahead
to
issue
decide
to
issue?
To
what
extent
would
our
legal
counsel
be
working
in
concert
with
the
cities
in
terms
of
just
the
reviewing
of
the
documents
and
disclosures.
B
All
right,
thank
you
again,
council
leaderman.
Thank
you.
Bear
your
remarks
in
mind
for
certain
for
sure.
B
B
Okay,
we
have
discussion
and
action
on
the
cio
compensation,
which
will
be
followed
thereafter
by
discussion
and
action
on
ceo
com,
compensation
and.
B
B
Okay,
well,
we
will,
we
will
proceed
so,
as
we
all
know,
the
trustees
in
in
discussed
the
performance
of
both
cio
and
ceo
at
the
our
last
meeting.
B
We,
as
I
understand
that
we
are,
should
not
in
open
session,
discuss
what
the
ratings
specific
ratings
we
gave
to
to
the
these
employees
were,
but
we
can
discuss
the
compensation.
B
Write-Ups
for
the
year,
and
so
now
we
are,
we
are
in
the
task
of
discussing
what
compensation
to
tie
to
those
to
those
reviews,
performance
reviews
I
do
receive
some
talking
points
going
first
to
the
cio,
the
current
cio
annual
salary-
and
I
I
do
have
to
just
give
an
aside
that
I
find
this
entire
discussion
in
public
to
be
very,
very
personally
difficult
and
and
untoward,
but
nevertheless
that's
the
process
we
face.
B
B
I
know
that
our
sister
board,
police
and
fire
has
already
discussed
these
compensation
for
both
ceo
and
cio
and,
of
course,
we
have
to
come
to
an
agreement
between
ourselves
and
with
the
other
board
and
setting
the
final
actual
number,
and
I
believe
what
the
police
and
fire
have
discussed
is
a
in
view
of
the
fact
that
it's
been
a
fairly
extraordinary
year.
B
I
think
extraordinary,
both
in
terms
of
our
performance
performance
of
of
of
investment
returns,
as
well
as
our
performance
and
operationally
under
extremely
difficult
and
unprecedented
conditions
that
they
believed
a
an
increase
at
the
very
top
of
the
range
was
merited,
but
they
did
not
specify
an
individual
number
and
they
suggested
that
the
cio
receive
something
in
the
range
of
five
to
ten
percent
increase,
with
a
bias
towards
the
upper
end
of
that
range.
B
So,
with
all
that
said,
I
open
the
floor
to
the
other
trustees
to
to
add
their
input.
I
don't
know
if
cio
palani
or
ceo
payne.
You
would
like
to
comment
on
this
item
at
this
time,
but
if
you
do
please,
please
proceed.
H
C
D
Mr
chairman,
may
I
make
a
comment.
Please
thanks.
I
think
it
would
be
helpful
for
the
board
if
we
have
available
the
components
of
the
compensation
which
are
the
base
building
and
the
non-base
building
amounts,
and
then
maybe
some
context
in
terms
of
what
increases
to
both
of
those
came
in
the
last.
D
Can
you
hear
this
yeah?
That's
better,
I'm
sorry,
so
I
was
suggesting
that
maybe
we
give
the
board
some
of
the
the
current
salary
and
both
from
the
pensionable
and
non-pensionable
amount
and
the
types
of
increases
that
have
been
granted
in
the
last
couple
of
years.
Just
to
give
put
some
numbers
too
to
help
the
board
understand
any
further
proposal
going
forward.
B
Well,
I
I
think
I
did
address
some
of
that.
I
believe
we,
the
board,
voted
on
a
five
percent
merit
increase
last
year.
B
Of
course,
these
numbers
come
on
top
of
the
cola
which
has
already
been
assigned
as
of
june
30th
at
the
end
of
the
fiscal
year
for
the
cio,
the
the
current
annual
salary
existing
is
307
207,
and
that
is
within
a
range
for
the
position
of
240
to
322
355.,
and
so
it
is
a
increase
off
of
the
307
that
we
are
now
discussing.
B
G
B
E
To
322.,
but
I
have
a
question.
B
E
Does
that
include
so
I
have
a
question:
I'm
a
little
more
knowledgeable
about
city
pay.
Does
that
include
the
three
percent
cola
that
unit
99
got
so
that
would
have
increased
the
range.
C
Yes,
let
me
let
me
address
that
chair
horowitz,
yes,
trustee
jennings,
it
does
include
the
the
most
recent
range
with
the
with
the
cola
increases
in
july.
C
So
that's
and
then
on
top
of
that
is
the
obviously
there's
the
five
percent
not
pensionable
and,
as
you
know,
as
the
city
provides
increases,
if
the
increases,
if
an
increase
takes
you
to
the
top
of
your
pay
range,
then
obviously
that's
what
you
receive
if,
for
some
reason
the
increase
goes
beyond
the
top
of
the
range,
then
you
will
only
go
in
terms
of
salary
to
the
top
of
your
range
anything
beyond
that
is
actually
made
available
to
the
employee
in
in
a
one
one
payment.
That's
right.
E
And
so
this
will,
if
we
were
to
give
roberto
just
to
play
the
numbers
at
10.
That
would
take
him
beyond
the
range,
and
that
would
just
mean
that
that
additional
amount,
let's
say
8
000,
would
be
a
one-time
bonus.
It
would
push
him
to
the
end
of
his
range.
C
E
Yeah
for
the
ceo:
that's
what
spencer
provide
he
didn't,
provide
the
cio
numbers
yet.
E
Cio,
oh
I'm
sorry,
I
wrote
ceo
okay,
so
that's
the
cio
all
right
so
for
the
cio,
that's
what
it
is.
So
as
a
trustee,
since
I
do
tend
to
understand
the
city
process,
and
I
was
on
the
bargaining
committee
for
the
employees
that
they
both
pursue.
E
It
is
a
difficult
process
on
how
we
pay
our
city
employees
and
we
don't
really
recognize
our
city
employees
to
the
level
that
they
should
be,
and
I
feel
very
strongly
about
that
and
roberto
and
brep
who
do
an
excellent
job
and
if
comparatively
in
the
outside
of
the
city
would
be
making
probably
far
more
than
they're
making.
Now
they
have
done
a
stellar
job.
E
They
have
taken
us
to
a
level
that
we
are
extremely
happy
and
pleased
with,
but
proof
certainly
has
taken
us
to
earnings
and
advice
that
the
board
implemented,
but
with
his
guidance,
and
so
I
do
believe
we
should
go
over
the
five
percent.
I
think
we
should
go
within
a
range
between
the
five
and
ten,
but
you
know
that
is
my
recommendation.
E
I
mean
I
would
you
know
it.
It's
a
difficult
thing
to
throw
this
out
and
see
whatever,
but
I
certainly
would
go
over
five.
I'd
probably
go
with
you
know
like
7.5,
or
something
like
that.
Just
to
you
know
throw
it
in
the
middle,
but
I
am
certainly
someone
who
can
be
convinced
differently,
but
I
think
that's
what
we're
being
asked
to
do.
So,
that's
that's
what
it
is.
Okay,.
B
And
just
to
be
clear,
the
the
five
percent-
this
is
not,
you
know
a
city
prescribed
number.
This
is
the
range
that
police
and
fire
have
established
at
their
board,
and
so,
if
we
were
to
go
outside
that
range,
we
would
need
to
go
back
to
them
and
renegotiate
a
new
number.
Well,
I
thought.
E
I
do
want
to
let
everybody
know
that
for
the
mpp,
what
was
negotiated
for
the
other
employee,
you
know
the
the
people
who
are
not
unit
99
was,
if
you
are
outstanding,
you
could
get
a
2.75
increase
and
if
you
were
commendable,
you
could
get
a
2.5,
and
that
was
something
beyond
what
they
normally
get.
E
B
Right
all
that
is
completely
correct.
I
just
wanted
to
to
clarify
the
source
of
the
five
percent
number.
It's
not
does
not
lie
with
the
city,
it
lied
with
our
sister
board
and
they
did
in
fact
we're
leaning
towards
a
a
10
increase
for
the
cio
and
and
a
seven
and
a
half
percent
increase
for
the
ceo.
B
A
Well,
I
think
it's.
It
has
been
an
extraordinary
year
in
terms
of
both
the
pandemic
and
also
the
subsequent
investment
performance.
We're
certainly
in
much
better
position
now
than
we
were
a
year
a
year
and
a
half
ago,
and
so
I
would
wholeheartedly
support
giving
prabhu
as
much
of
an
increase
as
we
can.
G
I'd
like
to
add
that
the
performance
by
the
cio
and
and
really
recognizing
the
full
team-
I
mean
it's
not
just
about
the
total
performance,
although
you
know
29.2
percent
we're
punching
way
above
our
weight,
we're
beating
most
of
our
peers,
and
I
think
we
beat
a
lot
of
the
largest
plans
out
there
as
well
within
the
context
of
a
plan
that
is
relatively
conservative.
So
you
know
the
mandate
was
hit.
G
A
bunch
of
singles,
keep
us
steady
and
guess
what
we
got
a
home
run
so
that,
along
with
the
the
amount
of
risk,
control
and
overall
administration
and
keeping
the
keeping
the
team,
I
think,
motivated
and
performing
at
this
high
level
are
all
things
that
are
just
very
unique
and
deserve
recognition
and
reward.
B
Well,
I
I
also
agree.
This
has
been
an
outstanding
year
and
certainly
it's
about
the
performance
of
the
entire
team
and
and
and
even
the
trustees
in
our
judgment,
but
we
are
only
deciding
the
compensation
for
the
cio
and
the
ceo,
so
it
that
is
the
relevant
metric
we
are
dealing
with.
B
B
B
We
will
take
a
roll
call
vote,
then,
in
order
of
seniority,
trustee
orr,
aye
trustee
keller
aye
vice
chair
jennings
hi,
and
I
also
vote.
I
passes
unanimously.
B
And
now
we
come
to
the
matter
of
ceo
compensation
and
let
me
read
out
some
of
the
data
facts
there.
I
believe
we
also
voted
last
year
for
a
five
percent
increase
to
the
compensation
for
our
ceos.
B
B
So
he
is
also
not
at
the
top
of
the
possible
range
of
compensation
and
I
think
in
discussions
again
between
both
boards.
He
without
specifying
a
specific
rating,
received
very
favorable
performance
review
this
year
and
I
believe
the
police
and
fire
also
suggested
a
range
of
five
to
nine
percent,
which
they
would
be
comfortable
with,
leaving
the
heavy
lifting
to
us
once
again
to
specify
an
exact
number,
and
I
think
they
were
sort
of
centering
on
a
a
number
of
seven
and
a
half
percent.
E
Okay,
I'll
speak
up
again,
so
I
think
again,
given
everything
that's
going
on,
given
what
roberto
did
to
deal
with
the
pandemic
to
deal
with
the
staffing
issues
I
mean
everybody
had
to
deal
with.
That
I
mean
it's
not
like
the
other
directors
within
the
city
did
not
okay,
it's
just
that.
E
His
role
is
very
critical,
handles
quite
a
lot
of
financial
responsibility
in
keeping
us
legal
and
on
par
we've
had
two
trustees
that
you
know
have
left.
You
know
he's
had
to
kind
of
oversee
and
keep
that
going
go
through
the
whole
investment
piece
I
mean
so,
given
that
I
would
throw
out
a
recommendation
of
eight
percent.
B
Comments
from
other
trustees,
trustee
keller.
A
I
would
say
that
I
certainly
agree
trustee
jennings,
that
this
has
been
an
extraordinary
year
and
roberto
is
just
has
greatly
added
to
the
to
the
plan
and
to
the
financial
stability
of
the
city
through
his
leadership
over
the
last
year,
and
given
the
police
and
fire
had
indicated
a
range
of
five
to
nine
percent,
I
would
actually
be
much
more
in
favor
of
recognizing
his
leadership
and
giving
him
the
full
nine
percent
go
to
the
top
end
of
the
range.
A
Oh
five
to
ten,
then
I'm
sorry,
I
would
go.
10.
roberto
has
a
lot
of
experience
in
managing
underfunded,
pension
plans
and
just
like
cio
palani.
B
G
Trust
me,
thank
you,
trustee
keller,
I'll
just
add
to
that
which
is
I
mean,
I'm
gonna
echo
everything
else.
G
Everyone
else
has
said
roberto's
really
been
running
running
this
you
know
steering
the
ship,
and
I
guess,
as
a
my
sense,
is
that
the
role
relative
to
some
of
the
other
key
city
roles
is
just
as
essential,
obviously,
and
so
I
think,
having
that
compensation
be
commensurate
to
reflect
some
of
the
other
deputy,
you
know
the
city
manager
levels
and
the
like,
as
well
as
dealing
with
this
diverse
array
of
challenges,
be
it
litigation
funding
launching
of
the
system,
the
the
member
benefits,
communications
and
the
different
the
past
system.
B
Okay,
given
those
comments,
will
I
hear
a
motion
for
specific
compensation
increase.
G
B
Very
good:
we
have
a
motion
on
the
floor
for
a
10
increase
for
our
ceo.
Any
discussion.
A
B
H
So
we
did
have
a
meeting
in
august
and
we
discussed
in
the
senior
investment
officer.
Jake
juan
gave
an
overview
of
public
markets
and
perez
did
a
quarterly
update
of
risk.
B
I
see
all
right,
thank
you
and
receive
and
file
the
various
minutes.
Do
we
need
a
a
motion
and
a
vote
on
that
or.
B
So
we
receive
and
file
move
on
to
the
governance
committee.
We
had
a
meeting
one.
O
Hi,
thank
you
blair,
beekman
here.
Thank
you
for
the
meeting
today.
I've
been
listening
and
it's
been
a
good
learning
experience
for
myself.
This
was
a
time
of
minutes
approval.
I
thought
I
could
make
a
few
closing
comments.
I
have
to
be
getting
to
another
meeting
the
sports
arena
authority
meeting
if
you
can
be
patient
with
myself
just
a
few
thoughts.
I
thank
you
for
your
report
on
on
issues
of
china
and
international
issues
way
back
at
the
beginning
of
this
meeting.
O
It
was
very
much
needed
and
you
know
I
I
think
it's
important
how
we
address
the
future
of
the
covid
vaccine
this
this
fall.
I
hope
it
can
be
a
process
where
we
learn
to
better
talk
about
it.
We
have
to
prepare
students
for
possibly
taking
the
vaccine
coming
up.
I
think
there
can
be
a
language
to
do
that.
This
has
an
important
purpose
to
this
meeting.
O
Sorry
about
that
too,
but
to
try
to
quickly
conclude,
I
think
I
I
I'm
a
person
who
tries
to
offer
the
concept
that
we
have
to
be
considering
the
potential
of
upcoming
natural
disasters
in
the
bay
area
and
how
that
works.
O
With
your
balancing
your
your
economic
plans,
good
luck
in
how
to
do
that
and,
if
you're
aware
of
any
natural
disaster
events
in
the
next
few
years,
hopefully
that
can
be
of
help
in
in
in
myself,
mentioning
it
and
how
you
can
judge
what
you
guys
need
to
do
at
this
time.
I
thank
you
to
the
words
of
dev
davis,
trying
to
balance
out
how
to
work
and
look
through
10-year
plans
through
one-year
incremental
or
every
other
year
incremental
ideas.
I
thought
that
was
some
interesting
thinking
from
herself.
O
It
may
not
be
the
fully
accepted
way
to
work,
but
it
was.
It
was
interesting
to
hear
and
to
conclude
just
a
thank
you
that
I
I
feel
there's
police
overtime
issues
are
becoming
a
more
everyday
conversation
between
community
and
city
government
and
oakland
has
given
some
good
examples
to
really
address
the
future
of
police
overtime
issues
that
I
just
wanted
to
mention
at
this
time
that
we're
actually
thinking
about
the
concept
and
working
on
it,
and
hopefully
that
can
be
a
reminder
here
at
this
time.
O
Thanks
again
for
your
patience
and
and
my
in
my
speaking
at
this
time.
Good
luck
to
the
rest
of
your
meeting.
Thank
you.
B
Thank
you,
mr
beakman.
Now,
if
there
are
any
other
public
comments
or
hands
raised,
I
I
cannot
see
the
hands
raised
when
you're
sharing
the
screen,
or
at
least
I
don't
know
how
to
do
that.
So.
B
If
there
are
no
further
comments,
I'll
proceed
with
the
report
from
the
governance
committee,
we
did
have
a
meeting
september
9th
and
we
did
discuss
modifications
and
proposed
modifications
to
the
board
education
policy.
And
if
we
can
bring
up
the
attachment
under
item
52c.
B
We
made
some
modest
changes
to
the
to
the
existing
education
policy.
First
of
all,
we
recognize
the
fact
that
much
of
the
what
had
happened
previously
in
off-site
meetings
and
and
the
committee
in
in
conferences
or
learning
is
not
necessarily
held
in
a
remote
physical
location.
Much
of
it
is
online.
Now
we
detailed
further
some
of
the
concepts
that
we
would
expect
and
anticipate
a
trustee,
especially
new
trustees,
to
master,
and,
of
course,
this
is
not
a
comprehensive
list.
B
There
are
so
so
many
details
to
to
master,
but
certainly
understanding
the
actuarial
issues
which
we
delved
into
at
length
today
and
investment
asset
allocation
and
including
the
concepts
of
mean
variance
one
of
the
more
significant
changes.
If
we
roll
to
the
next
page
was
the
suggestion
that
we
offer
new
trustees,
the
possibility
of
a
mentorship
with
an
existing
board
member
to
help
get
them
up
to
speed
to
help
give
them
some
guidance
insight
as
to
what's
going
on.
B
We
all
know
what
it's
like
to
be:
a
new
trustee
and
you're
you're
dumped
into
the
deep
end
of
the
of
the
pension
pool,
and
maybe
this
is
a
method
that
can
help
ease
the
transition
for
future
new
trustees.
It
is
something
that
other
pension
plans
have
implemented.
B
B
We
also
updated
the
appendix
just
to
indicate
some
of
the.
B
In
addition,
before
we
get
to
the
appendix
we,
we
suggested
that
the
retirement
system
management
sort
of
check
in
more
frequently
with
the
new
board
members
to
make
sure
they're
coming
up
to
speed
and
they're
feeling
satisfied
with
the
level
of
knowledge
they
are
acquiring
and
their
ability
to
to
deal
with
the
issues
before
the
board
and
the
appendix
was
updated
to
include
some
of
the
more
common
courses
that
we
are
taking
right
now
and
suggesting
we
take
particularly
the
ones
from
calipers
and
sackers
that
I
believe
many
of
the
trustees
have
completed.
B
B
B
So
we'll
have
a
roll
call
vote,
trustee,
orr,
aye
trustee
keller,
aye
vice
chair
jennings
hi,
and
I
also
vote
I
it
passes
unanimously.
B
Next,
we
have
the
audit
committee
chair
keller.
Would
you
like
to
report.
A
Sure
so
juman
bassini,
our
internal
auditor,
presented
a
member
termination
audit
and.
A
C
Yeah,
mr
chair,
so
yes,
the
the
last
meeting
was
april
30th.
We
were
probably
going
to
be
trying
to
schedule
a
meeting
sometime
later
this
year.
Twofold
number
one
is
the
former
chair
of
the
joint
center
committee,
who
was
a
trustee
of
police
on
fire,
actually
resigned
to
the
board.
So
the
president,
the
joint
personnel
committee,
have
to
elect
a
new
chair
for
the
joint
committee,
which
happens
to
be
the
only
real
joint
committee
of
the
boards
and
two
oddly
enough,
probably
starting
in
november.
C
C
You
are
correct,
you
are
correct,
and
so
I
was
thinking
a
two-fold
either.
Hopefully
by
then
we
have
your
new
appointee
for
the
active
members
which
will
make
you
bore
six
trustees,
which
would
allow
you
to
see
three
members
of
the
committee
or
you
are
correct.
C
If
you
still
have
five
members
and
we
happen
to
schedule
a
meeting
before
you
get
to
six
members,
then
you
are
correct
that
maybe
only
two
of
you
of
the
trustees
from
federator
could
attend
the
meeting
to
avoid
having
creating
a
quota
for
the
full
board
you're
a
correct
network.
So
we'll
keep
that
in
mind.
C
B
All
right,
moving
on
to
agenda
item
six
education
and
training.
If
there's
any
questions
or
comments
about
the
various
opportunities
here,.