►
Description
City of San José, California
Federated City Employees' Retirement Plan Board, September 15, 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://sanjose.legistar.com/View.ashx?M=A&ID=997581&GUID=EC71BF85-9CC8-4BED-8942-BDC1702C959D
A
A
A
B
B
B
D
B
A
few
ground
rules
for
this
meeting
we
are
continuing
to
meet
under
the
auspices
of
ab361.
As
such,
all
votes
will
be
roll
call
votes
for
discussion
items.
Each
trustee
will
have
a
turn
to
speak
in
roll
call
order
more
than
once
desired,
and
the
public
will
have
an
opportunity
to
speak
on
each
item.
After
trustees,
we
will
take
the
orders
of
the
day
to
be
heard
before
closed
session.
B
We
do
need
a
vote
to
wave
sunshine
item.
4B
there
was
a
late
arriving
attachment
for
item
4b,
which
is
discussion
and
action
of
funding
methods
for
the
pension
and
opec
plans,
with
potential
options
for
consideration
for
tier
one
may
have
a
motion
to
accept
the
orders
of
the
day
and
sunshine
so
moved
I'll.
Second,
okay
was
that
trustee
linder
as
a
move?
Yes,
trustee
chandra
has
a
second
any
discussion.
B
B
B
B
C
B
B
B
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
B
B
D
B
B
G
G
As
you
all
know,
the
market
had
a
nasty
fall
day
following
the
cpi
report
and
one
of
the
largest
one-day
losses
in
recent
times
so
fiscal
year.
To
date,
the
numbers
are
for
the
pension
plan,
and
this
is
through
tuesday,
of
course,
the
market's
down
one
percent.
Today,
but
through
tuesday
the
plan
was
up,
1.53
percent
fiscal
year
to
date
and
healthcare
trust
was
up
1.34.
G
G
G
There
was
significant
input
from
the
board
because,
as
you
all
know,
the
board
is
responsible
for
strategic
asset
allocation
and
when
I
took
over
a
cio
one
of
the
things
that
I
told
the
board
was
you
know
we
first
need
to
get
beta
right
before
we
get
alpha
right,
and
what
does
that
mean?
I'm
throwing
out
these
terms
here.
Beta
means,
you
know
what
is
our
exposure
to
the
market?
What
is
our
weight
in
growth
assets
right?
G
G
If
we
get
our
beta
right
and
we
don't
get
our
alpha
right,
we
will
be
okay.
If
we
get
our
beta
right
and
our
alpha
right,
we
will
be
exceptional
and
I
think
that's
what
we
this
team
has
demonstrated
and
when
I
say
this
team
I
mean
the
board
the
investment
team,
consultants
and
so
on
right.
So
so
I
think,
as
the
ceo
of
makita
apparently
said
recently,
you
know
there
are
no
victory
laps
in
investing.
You
know
we
cannot
rest
on
our
laurels.
G
We
have
to
keep
doing
well
because
we
can
lose
it
all
tomorrow
right,
but
I
think
it
is
okay
to
once
in
a
while
pause,
reflect
and
say:
okay,
we've
done
a
good
job,
it's
not
too
bad
right,
and
so
so
I
just
I
asked
laura
to
actually
run
this
exercise
right.
Had
we
continued
had
we
been
99
percentile
in
the
last
three
years?
Had
we
continued
to
be
in
the
bottom
percentile?
What
would
our
assets
have
been
and
because
we
moved
from
99
percentile
to
seven
percentile?
G
H
When
we
add
up
that
dollar
differential
over
the
last
three
years,
it
was
an
estimated
672
million
dollars
in
additional
value
versus
if
the
plan
had
remained
in
the
99th
percentile
and
just
as
an
aside,
we
did
an
internal
training
at
makita,
where
we
had
to
workshop
a
story
about
asset
allocation
or
manager,
selection,
or
something
that
that
happened
with
with
our
investment
advice.
And
so
I
I
went
back
and
I
actually
hadn't
done
a
post-mortem
on
the
time
period
that
some
of
you
recall
and
were
involved
with
in
early
2020.
H
G
All
right
thanks
thanks,
laura
thank
you
for
sharing,
that
and
and
and
by
the
way,
your
sister,
your
sister,
planned
it
as
well,
just
as
well,
and
so
our
assets
at
the
end
of
june
were
2.7
billion.
Had
we
continued
to
be
in
the
99
percentile,
it
would
have
been
2.1
billion,
but
enough
said
about
the
past.
We
have
to
focus
on
the
future
and
and
look
our.
We
have
a
fairly
aggressive
portfolio
and
when
I
say
aggressive,
what
does
that
mean
right?
G
G
We
will
lose
value
right
and
that's
that's
just
the
nature
of
markets,
which
means
that
going
forward
if
we
continue
to
be
in
a
bear
market
as
a
lot
of
people
expect
we
will
lose
value,
but
in
the
long
run
I
believe
we
are
well
positioned
to
do
well
over
the
long
run,
to
close
the
funding
gap
that
we
have
and
we
always
have
to
be
vigilant.
We
always
have
to
think
about
the
markets.
G
We
have
to
think
about
the
things
that
impact
the
market
macro
factors
and
so
on,
and
we
also
have
to
be
very
good
at
manager
selection,
who
are
those
managers
who
will
do
better
than
the
index.
So
we
have
to
get
beta
right.
We
have
to
get
alpha
right,
and
so,
but
I
still
did
want
to
share
that
one
thing,
because
this
is
not
so
much
for
the
board,
but
as
but
for
our
stakeholders,
because
I
believe
that
our
stakeholders
sometimes
don't
appreciate
the
work
that
we
do,
and
this
is
no
fault
of
theirs.
G
I
Prabhu,
yes,
I
have
a
quick
question.
You
say
we
have
an
aggressive
portfolio.
I
don't
really
think
we
have
an
aggressive
portfolio
as
much
as
a
portfolio
is
focused
on
investing
in
illiquid
assets,
because
we
do
not
need
the
liquidity
of
a
day-to-day
investment
like
someone
who's
like
needs
to
be
able
to
sell
an
asset
today,
we're
investing
in
assets
that
may
have
a
longer
time
horizon
which
matches
up
with
our
our
liabilities.
G
That
that's
exactly
right,
trusty,
killer
and-
and
the
reason
I
use
the
word
aggressive
is
people
should
know
that
when
the
markets
fall
in
our
beta
is
0.7
right
about
0.7,
okay
market
falls,
10
our
portfolio
is
going
to
fall,
7
right
and
in
fact
to
your
point
we
are
no
more
aggressive
right
now
than
the
average
plan.
I
believe
right
so
we're
about
there.
We
used
to
be
less
than
the
average
plan
and
we
may
still
be
marginally
less
or
about
there
right.
G
So,
relatively
speaking,
compared
to
three
four
five
years
ago,
we
have
taken
on
a
little
bit
more
risk,
but
you're
exactly
right.
So
it's
it's.
It's
a
very
loaded
term
when
I
say
aggressive,
but
I
still
want
people
to
understand
that
this
is
not
money.
That's
hidden
under
a
mattress
right
and
our
stakeholders
will
sometimes
ask
okay.
I
mean
I've
got
this
in
public
meetings
before
you've
done
so
well.
Why
don't?
G
We
just
you,
know
cash
out
on
this
and
keep
this
in
cash
right,
and
we
can
do
that
and
we
can
have
that
we
can
protect
the
2.7
billion
in
assets
that
we
have
right.
Now,
by
by
you
know,
immediately
converting
it
into
liquid
cash,
but
then
we
won't
have
any
future
growth
and
we
will
not
protect
and
against
inflation.
So
this
is
really
meant
to
explain.
The
portfolio
stands
in
more
layman's
terms,
but
you're
exactly
right,
we're
not
we're
not
any
more
aggressive
than
the
average
plan
out
there.
J
G
G
Yeah,
no,
I
just
I
don't
know
the
three
year
period
and
I
mean
I'm
sure
something
that
we
can
easily
get
from
bill
and
bill
may,
even
if
he's,
if
he's
listening
to
this
between
now
and
his
presentation
might
be
great
okay,
but
but
if
we
don't
I'll
make
sure
to
get
you
that
number
and
I'm
happy
to
share
that
with
the
board.
So
with
that,
if
there
are
no
more
questions,
I
know
we
are
on
a
tight
schedule
today.
K
K
Private
equity,
as
you've
noticed
also
through
the
public
markets.
Q1
did
come
down
slightly
as
as
did
q2
so
for
q1
you'll,
see
the
net
performance
both
for
the
legacy.
Investments
were,
which
were
the
investments
done
by
the
program
directly
before
the
new
berger
berman
partnership,
as
well
as
the
new
burger
berman
results
and
summary
numbers
in
the
middle
column,
and
the
combined
results
on
the
right
so
here
for
for
q1
you'll
see
a
net
multiple
of
1.9
times
at
q4
that
was
1.96.
K
The
overall
performance
came
down
about
four
percent,
and
that
was
very
much
in
line
with
our
overall
portfolio,
so
each
quarter
we
actually
take
a
very
in-depth
and
proactive
approach
to
where
we
see
valuations
coming
in.
Given
we
have
a
large
platform
and
we
invest
in
lots
of
different
private
equity
firms
across
all
asset
classes.
K
We
really
try
to
look
into
kind
of
what
the
average
valuations
are
across
the
board.
So
just
to
give
you
an
idea
of
how
that
played
out
across
our
platform
for
q2
buyout
firms
were
down.
Approximately
2.6
and
venture
firms
were
down
approximately
6.9,
so
close
close
to
7
down
for
venture
firms,
and
that
really
did
stay
in
line
with
how
your
program
performed
during
q2.
K
J
D
K
That
that
was
not
necessarily
the
q4
to
q1
number
for
you
all.
That
was
as
a
very
as
a
larger
sample
size.
That's
about
what
we
saw
venture
firms
down,
and
then
you
know
I
didn't.
I
didn't
specifically
split
out
what
venture
was
in
your
portfolio
for
q2.
I
can
definitely
do
that,
but
as
a
whole,
your
portfolio
was
down
three
to
four
percent.
K
So
moving
on
you'll
remember
this
from
each
quarter.
We
benchmark
the
underlying
fund
investments
for
both
legacy
and
new
burger
performance,
so
you'll
see
here,
we've
also
added
recently
these
arrows,
which
show
compared
to
last
quarter
which
funds
were
down
a
benchmark
and
which
were
possibly
up
so
here,
you'll
kind
of
see.
K
Correct
so
in
the
in
the
in
the
far
right,
these
two
columns,
that's
the
actual
benchmark
for
that
specific
investment
and
you'll
notice.
Here
we
actually
lay
out
first
quartile
median
and
third
quartile.
The
performance
of
the
investment
is
kind
of
the
top
line
of
the
section,
and
so
you
can
see
where
it
falls
in
terms
of
the
quartile,
even
if
it's
kind
of
on
the
higher
end
of
the
third
quartile.
K
K
K
The
the
real
difference
here
on
an
investment
type
is
simply
the
method
of
which
the
investments
call
capital
co-investments
are
going
to
be
invested
immediately
as
that's
capital,
that's
going
into
one
specific
company
and
then
primaries
here,
you'll
see
as
they
draw
capital
over
time.
This
invested
pie
chart
will
become
much
more
similar
to
this
committed
pie
chart
for
the
other
exposures.
K
K
So
on
the
top,
the
primary
secondary
and
co-investment
returns.
Look
great.
The
co-investments
have
been
really
generating
that
strong
early
return,
which
we
would
expect
that
part
of
the
portfolio
to
do
that's
why
we
like
to
include
you
know
30
to
40
percent
of
our
portfolios
into
co-investments
in
secondaries
and
then
primaries
also,
like
I
said
about
70,
to
60
of
the
portfolio
really
to
maintain
that
diversification
and
really
help
us
put
capital
to
work
where
in
in
the
parts
of
the
market
that
we
want
to
put
capital
to
work.
K
This
is
the
net
performance
of
your
program,
quartiled
against
the
peer
benchmark
using
burgess
and
so
you'll
see.
Here
we
were
happy
to
see
the
first
quartiles
on
both
an
irr
and
tvpi
basis
and
as
as
earlier
on
the
benchmarking,
you
can
see
what
returns
actually
produce
a
first
quartile
as
well
as
median
and
third
quartile
I'll
mention
we're
also
very
happy
to
see
the
first
quartile
returns
since
we
are
actively
still
putting
capital
into
the
ground.
K
J
If
you
can
ask
a
question
before
we
move
on
so
on
two
questions
on
secondaries:
first,
so
we
have
returned
capital
and
now
are
getting
capital
in
excess
of
our
denominator,
correct
and
then
what
what?
What
investments
represent?
The
secondaries
like
the
mix,
buyout
versus
venture
or
growth?
What
kind
of
secondary.
K
J
K
We
have,
in
the
last
quarter,
seen
more
traditional
secondaries
coming
to
market,
or
at
least
lps,
discussing
with
secondary
buyers
that
opportunity
and
what
that
might
look
like
our
secondary
team
actually
just
mentioned
to
the
group
on
monday
that
ever
since
labor
day,
they've
seen
a
huge
uptick
already
in
deal
flow,
that's
very
common
for
the
secondary
market,
because
a
lot
of
lps
are
trying
to
get
by
year-end
kind
of
things
off
their
book
if
necessary.
But
there's
there's
lots
of
conversations
at
the
moment.
We've
already
seen
uptick
in
our
deal
flow.
K
So
I
expect
that
to
continue
very
heavily
through
the
remainder
of
the
year
and
then
we'll
kind
of
see
how
see
how
that
works
in
q1.
But
I
think
a
lot
of
it
will
also
be
driven
off
of
everyone's
performance
from
q2,
which
everyone's
kind
of
getting
in
now
and
so
we'll.
We'll
see
how
how
that
either
kind
of
makes
it
higher
or
or
lower,
but
I
I
expect
over
the
next
quarter
to
be
very
heavy
and
then
even
in
2023.
K
I
think
we
all
kind
of
feel
that
that's
going
to
be
much
more
part
of
the
market
and
that's
why,
in
our
portfolios,
we
put
co-investments
in
secondaries
together
as
a
bucket.
So
we
can
be
more
opportunistic
around
those
types
of
investments
and
making
sure
that
we're
comparing
those
two
and
making
good
decisions
around
that.
K
J
Yeah
casey:
are
you
what
are
the
fund
investment
cycles
looking
like
in
the
buyout
world?
I
know
that
in
the
venture
role
they
become
compressed
and
managers
are
coming
back
to
market
faster
and
they
deployed
a
lot
of
money
in
the
2017
18
19
20,
20
vintages
really
fast.
So
I'm
wondering
how
buyouts
look.
K
K
So
a
lot
of
firms,
of
course,
there's
a
handful
of
buyout
firms
at
the
very
top
of
the
you
know,
great
returns
they've
been
in
in
the
in
the
private
equity
world
for
a
very
long
time,
they're
going
to
be
able
to
raise
very
quickly.
We
have
started
to
see
longer
fundraising
cycles
expected
from
gps
in
the
buyout
world,
as
well
as
if
they
had
expected
a
close
or
a
final
close
in
q4.
K
Many
of
them
are
now
staying
open
until
2023
q1,
at
least
to
give
lps
a
little
bit
more
time
for
their
diligence
and
give
lps
a
little
bit
more
leniency
in
terms
of
if
they
want
to
commit
in
2022
or
kind
of
save
those
commitments
for
2023.
So
we
haven't
necessarily
seen
a
shorter
time
of
returning
to
market.
I
think
it's
a
little
too
early
for
that,
but
I
anticipate
that
coming.
I
think
once
I
think
kind
of
once
2023
rolls
around
people
are
buyout.
K
K
A
long
period
would
be
two
years
in
between
a
fundraise.
They
kept
getting
shorter
and
shorter,
sometimes
even
a
year
after
they
closed
their
previous
fund.
They
were
already
coming
back
to
us,
so
we're
hoping
that
settles
down
and
gives
us
a
little
bit
more
time,
because,
frankly,
there
is
a
lot
of
funds
over
the
last
year
year
and
a
half
that
you
really
had
to
be
top
quartile
to
be
able
to
get
into
lp
cap
into
lp
capital
commitments,
because
there
is
just
so
many
funds
in
the
market.
J
Okay
and
does
that
it
was
that
it
sounds
like
you
think,
it'll
slow
down,
but
was
that
affecting
sort
of
pacing
and
commitment
plans
and
specifically
for
san
jose
with
it?
Was
that
an
issue
or
might
that
be?
I
guess
you
don't
think
it'll
be
an
issue
in
the
future,
but
I
know
it
has
been
for
lps,
who
are
have
a
bigger
venture
portfolio
than
we
do,
which
was
just
their
whole
deployment
and
pacing
was
kind
of
thrown
up
when
their
managers
came
back
to
market.
J
K
Yeah,
we
maintain
that
very
closely
so
in
coordination
with
your
investment
staff,
who
we
talked
to
about
our
annual
investment
pace
and
model
portfolio,
we
show
this
to
them
weekly,
we're
very
aware
of
how
much
we
need
to
put
to
work
each
year
and
it
really.
It
does
not
go
above
that,
so
we
just
have
to
be
more
selective
in
the
investments
that
we're
picking
and
making
sure
that
the
capital
we
have
to
put
to
work
that
year
is
in
is
in
the
best
investment.
K
D
G
Thank
you,
mr
chairman,
and
before
I
invite
laura
to
talk
about
3c
the
ever
attentive
mr
hallmark
heard
our
earlier
exchange
on
on
the
impact
on
funded
status
and
quickly
whipped
out
his
calculator
and
provided
these
numbers
to
us.
So
had
we
continued
in
the
99
percentile,
our
funded
status
based
on
market
value
would
have
been
43
43
and
because
we've
done
as
well
as
we've
done,
our
funded
status
is
actually
58.
H
Everything
else
was
negative
tips
held
up
relatively
well,
since
they
are
treasury.
Inflation-Protected
securities
bonds
were
down
quite
a
bit
and
not
as
much
as
equities
as
you
would
expect.
You
know
we
really
had
beginning
of
2022
a
risk-off
environment,
so
the
riskiest
assets
like
emerging
markets,
were
down
the
most.
Luckily
we
did
have
the
recovery
in
july,
but
the
markets
have
been
challenged.
Since
then.
We
have
some
sort
of
differing
signals
in
the
market
right
now
you
have.
We
have
some
slides
in
here
that
you're
welcome
to
go
through.
H
Here
the
total
fund
value,
as
of
the
end
of
june,
was
2.9
billion,
so
hovering
just
below
the
3
billion
mark.
You
can
see
the
current
allocations
were
quite
quite
close
to
policy
targets
and
performance,
while
negative
was
quite
strong
on
a
benchmark
relative
basis
and
a
pure
relative
basis
in
terms
of
protecting
on
the
downside
and
the
total
fund
for
the
second
quarter
of
2022
is
down
6.7
outperforming
all
benchmarks
and
ranking
in
the
top
19
of
the
peer
group
and
for
the
year
to
date
period.
H
H
If
we
look
at
the
next
page
here,
you
can
see
private
markets,
private
markets
for
the
fiscal
year
period
were
up
over
25,
so
25.6
positive,
the
private
equity
was
up.
36.4
percent
venture
capital
was
slightly
negative,
but
I
wouldn't
put
too
much
stock
in
that,
given
that
returns
are
not
yet
meaningful
on
a
time
weighted
basis,
given
the
the
newness
of
this
portfolio
and
venture
capital
and
the
very
small
amount
of
assets
there,
it
didn't
have
a
big
impact
on
the
total
fund.
H
You
see
private
debt
with
the
time
weight
of
return
for
the
fiscal
year.
25.1
percent
growth
real
estate
at
26.3
and
private
real
assets-
if
you
recall
the
bloomberg
commodity
index
being
the
only
positive
major
asset
class
on
the
public
markets.
As
you
see
that
flow
through
to
real
assets,
private
real
assets
were
up
30.4
percent
for
the
one-year
period
emerging
markets.
Debt
was
really
a
standout
in
terms
of
publicly
traded
securities
emerging
markets.
Debt
was
positive
up
3.
H
3.0
percent
relative
to
the
benchmark,
which
was
down
over
20
percent.
So
you
all
have
a
fund.
The
wellington
iguazu
fund
in
emerging
markets
at
that
is
a
long
short
emerging
market
debt
manager,
and
so
they
don't
capture
all
of
that
down
beta
when
we
do
have
a
drawdown
in
the
market
so
ranked
in
the
first
percentile
of
the
peer
group.
Low
beta
was
another
bright
spot
up.
7.3
percent
for
this
total
bucket,
while
immunized
cash
flows
were
down
slightly
market
neutral
strategies.
H
You
can
see
that
for
the
one
year
on
page
57,
the
three
year
on
58
and
the
five
year
on
59
all
three
of
these
time
periods
in
the
left
column,
you
have
a
return,
that's
above
median
for
your
plan.
In
the
second
column.
In
all
three
of
these
time
periods,
you
have
a
standard,
deviation
or
volatility,
that's
below
the
pure
median,
which
is
good.
H
H
B
B
B
A
A
D
B
H
Thank
you.
So
here
we
have
the
health,
healthcare
trust
with
a
june
30
value
of
345.8
million
and
current
allocations
quite
close
to
policy
and
looking
at
returns
and
to
put
these
in
context.
If
you
recall
your
health
care,
trust
tends
to
be
a
bit
more
a
bit
riskier
than
the
peer
group.
The
expected
return
for
the
portfolio
on
an
actuarial
basis
is
quite
close
to
that
of
the
pension.
H
H
If
you
look
at
the
three
years,
given
that
we
did
have
a
strong
market
environment
for
the
past
couple
of
years,
you
still
see
a
top
quartile
return
relative
to
peers
up
an
average
of
3.9
percent
per
year
and
just
like
the
other
portfolio,
growth
was
down
quite
a
bit,
so
we're
so
we're
emerging
markets.
But
if
we
look
at
some
of
the
diversification
that
we
are
able
to
have
in
this
portfolio
like
core
real
estate,
you
see
strong
returns
and
commodities
in
particular.
H
B
H
Great,
so
here's
the
overall
returns
and
if
you
look
on
the
left,
you've
got
the
type
of
private
markets
asset
class
and
on
the
right,
the
internal
rate
of
return,
which
is
your
return
for
each
of
these
areas
and
then
on
the
far
right
column.
The
public
market,
equivalent
irr.
So
because
these
all
right,
yeah.
L
I
apologize
to
stop
you.
This
is
roberto
and
I
apologize
to
the
chair.
We
receive
a
message
from
the
I
guess,
the
civic
tv
that
actually
transmitter
were
meeting
on
tv.
I
wanted
to
know
if
there's
any
way
that
we
can
use
a
larger
shot
of
the
screen,
I'm
not
sure
if
we
kind
of
know,
but
I
just
wanted
to
pass
that
along.
H
D
L
H
And
so,
if
you
take
a
look
and
the
newberger
berman,
irr
is
quite
strong
relative
to
the
public
market
equivalent
that
that
is
am
a
part.
You
know
those
funds
have
been
investing
since
2017,
which
has
been
a
strong
market
environment
and
you'll,
see
that
the
funds
that
your
investment
team
has
invested
in
private
debt,
real
estate,
real
assets
and
venture
capital,
since
that
time
have
also
been
quite
strong.
H
If
we
take
a
look
at
the
individual
funds
in
the
portfolio,
as
I
mentioned,
you
know,
funds
that
have
been
invested
recently
have
done
quite
well.
If
you
look
at
the
five
funds
that
have
been
invested
since
2017,
starting
with
arrow
mark
down
to
cross
ocean
that
have
meaningful
returns
on
your
far
right,
four
out
of
five
of
those
are
significantly
outperforming
their
benchmarks.
H
Taking
a
look
at
the
real
assets
program,
this
is
a
program.
That's
still
building
currently
there's
a
1.8
percent
allocation
relative
to
a
3
policy
target.
There
was
one
new
investment
during
the
quarter
and
this
is
for
the
first
quarter
of
2022.
Given
the
lag
whole
street
two
was
invested
with
a
six
million
dollar
commitment
and
taking
a
look
at
the
individual
funds.
Here
you
see
some
really
outsized
returns
for
kimmerge
energy.
H
Venture
capital
is
the
newest
private
markets
asset
class.
It
has
a
0.1
percent
weighting
relative
to
a
4
policy
target
and
it's
still
firmly
in
the
j
curve,
where
you're
committing
more
than
you
see
in
value
here,
there
were
no
new
commitments
during
the
first
quarter
of
2022
and
we
currently
only
have
three
funds
in
the
portfolio
and
they're
too
new
to
be
meaningful
in
terms
of
performance.
H
J
H
D
Trusty
chandra,
if,
if
I
could
jump
in
this,
is
dinesh
from
the
investment
team,
there
is
a
small
remaining
position
in
the
2005
vintage
fund.
It's
fun
to
fund,
so
there's
some
small
legacy,
investments
that
are
still
being
worked
out,
so
I
would
expect
in
the
next
few
years
that
that
should
be
liquidated
all
the
way.
J
B
M
I
have
a
question
on
the
second
quarter
performance
report.
I
do
see
that
there
are
two
funds
or
investment
managers
which
are
recommended
on
hold
because
of
underperformance.
So
my
question
is:
is
there
any
kind
of
you
know,
benchmark
on
on
the
underperformance
that
you
follow
for
for
the
recommendation
for
the
portfolio.
H
Sure
that's
a
good
question.
So
back
when
there
was
a
city
auditor
report,
they
recommended
that
there
be
an
official
watch
list,
and
so
one
of
the
criteria
that
was
put
in
place
for
the
watch
list
was
that
any
manager
that
had
underperformance
relative
to
the
benchmark
would
for
the
three
or
five
year
periods
would
be
placed
on
this
watch
list.
H
So
for
artisan
in
particular,
they
still
have
a
25th
percentile
rank
compared
to
their
peers
since
inception,
so
they've
had
a
little
bit
of
trouble
recently
relative
to
their
benchmark
for
the
three-year
period,
but
the
long-term
total
market
cycle
return
is
still
quite
strong.
So
we
don't
have
any
recommendations
for
changes
there.
Cove
street
has
been
a
perform.
You
know
a
performer
they've
swung
back
and
forth
quite
a
bit.
L
Be
happy
to
mr
chair,
you
may
recall
that
your
board
has
had
discussions
on
the
implementation
of
a
federated
disability
committee
of
peer
members
of
the
board,
including
a
discussion
the
last
couple
of
times
on
a
recommended
draft
for
a
federal
disability
committee
charter
and
at
the
last
meeting
you
born
only
accepted
and
and
approved
the
charter,
but
also
the
implementation
of
a
disability
committee,
and
so
here
with
you
this
morning.
I
think
the
goal
is
to
make
sure
that
we
fill
that
committee
with
the
members
of
your
board.
L
H
D
B
L
Yeah
and
just
as
a
reminder,
mr
chair,
I
think
the
three
members
actually
volunteer
volunteered
themselves
in
one
of
the
discussions
to
become
a
part
of
the
disability
committee.
So
that's
where
the
three
names
are
coming
from
and,
of
course,
mark
linder
was
the
lucky
winner
of
the
recommendation
to
be
the
chair
for
the
committee.
B
Yes
and
clearly,
we
were
trying
to
distribute
the
the
chair
responsibilities
amongst
the
committees,
so
we
don't
have
one
person
serving
as
multiple
chairs
trustee
linder
did
volunteer
and
acquiesce
to
to
chair
this
committee
and
they
have
an
enormous
amount
of
work.
I
believe,
ahead
of
them
there's
a
bit
of
a
backlog.
I
believe
in
disability
cases
correct.
So
with
that
I
will
open
up
any
discussion
by
trustees
on
the
membership
of
the
committee
and
then
hopefully
we
will
have
a
vote.
B
L
L
B
And
then
a
simple,
a
quorum
of
two
members
would
be
suffice
for
that
purpose,
so
great
and
now
moving
forward
to
item
4b
discussion
and
action
on
funding
methods
for
the
pension
and
notepad
plans,
with
potential
options
for
consideration
for
tier
one,
and
I
believe
bill
hallmark
from
chiron-
has
a
presentation
on
this
item.
This
is
continuation
of
our
discussion
at
the
last
meeting
where
we
were
challenged
to
see.
If
there
were
some
changes,
we
might
make
to
amortization
periods
in
order
to
possibly
improve
the
funded
status
of
the
plan.
N
Thank
you,
mr
chair,
good
morning,
everyone,
as
the
chair
indicated
you
know.
Last
month
we
had
the
extensive
review
and
I
apologize
for
how
much
detail
we
got
into
there.
But
we
had
were
challenged
at
the
end
of
the
meeting
about
whether
we
could
accelerate
the
the
funding
of
the
federated
plan
and
how
to
do
that.
N
So,
to
start
with,
I
think
this
is
the
information
that
fiduciary
council
was
probably
looking
at
when
he
made
the
challenge.
We've
had
this
history,
going
back
of
the
increasing
unfunded
liability
and
just
a
detailed
note
here,
there
was
no
valuation
in
2008,
so
these
charts
show
2007
and
the
next
mars
2009,
but
this
ever
increasing
unfunded
liability
and
then
on
the
funded
status.
N
N
N
So
that's
been
a
significant
change
that
the
board
has
made
and
if
we
look,
you
can
see
that
impact
here.
The
gold
diamonds
on
both
charts
are
the
the
federated
plan,
the
left
charts,
comparing
to
national
contribution
rates
from
a
national
database
of
public
plans
and
the
right
chart
to
california
plans,
and
you
can
see
we
were
in
the
middle
of
the
pack
and
then
increased
the
contribution
rates
fairly
rapidly
and
are
among
the
highest
in
the
california
chart.
N
N
Going
forward,
this
is
how
we
expect
to
pay
it
off
if
all
of
our
assumptions
are
met.
This
is
the
current
schedule.
The
unfunded
liability
would
gradually
decline
until
about
2040
2041,
it
gets
all
paid
off.
The
funded
percentage
would
increase
reaching
about
a
hundred
percent
99
in
2040.
I
think
100
in
2041.
N
N
Assumption
changes
the
guidelines
15
to
25
and
we're
using
25
groups
benefit
improvements.
Are
the
general
guideline
is
5
to
15
years
we're
using
20
years?
We
really
haven't
addressed
this
because
we
haven't
had
any
benefit.
Any
material
benefit
improvements
over
the
last
10
15
years,
but
if
we
use
shorter
periods
that
will
get
us
to
100
percent
faster,
it
also
increases
contribution
volatility
and
increases
the
contribution
amounts.
N
I
mean
basically,
if
we
want
to
get
there
faster,
we're
going
to
have
to
contribute
more
here's,
the
california
survey,
comparing
those
amortization
periods
and
on
experience,
gains
and
losses.
You
can
see
about
13
of
the
39
plans
used
15
years
and
about
12
use
20
like
us
on
amorization
on
assumption
changes.
I'm
sorry
about
16
of
the
plans
used
20
years,
we're
one
of
three
plants
that
uses
25.
N
N
N
N
The
black
line
here
and
the
blue
line
here
are
what
it
is.
If
we
make
no
change
and
the
bars
reflect
if
we
make
the
change.
So,
if
we
did
the
emerging
option,
you
can
see,
there's
not
really
an
impact,
that's
because
it's
really
only
going
to
affect
future
gains
and
losses
and
future
assumption
changes.
N
There
are
no
future
assumption
changes
in
our
projections
and
the
gains
and
losses
are
just
from
the
assets
smoothing.
So
there's
no
real
impact
here.
At
the
other
end
of
the
spectrum,
an
immediate
option
of
reducing
everything
by
five
years,
it
really
reduced,
starts
reducing
the
unfunded
liability
much
more
quickly.
It
gets
us
there
five
years
sooner.
J
N
Now
the
current
methods
are
reasonable.
They
are
within
the
general
guidelines.
I
think
just
about
every
plan
other
than
calstrs
is
in
california
is
within
those
guidelines
nationally.
That's
not
true.
So
california's
been
ahead
of
the
curve
in
terms
of
getting
the
amortization
periods
within
those
guidelines.
We
are
at
the
long
end
of
the
guidelines.
N
That
means
we
produce
more
stable
contributions,
they're
lower
now,
and
it
takes
us
longer
to
get
to
100
percent.
So
that's
the
trade-off
is
the
level
and
stability
of
contributions
versus
how
quickly
we
get
to
100
percent.
If
we
just
reduce
the
future
amortization
periods,
it
it
does
not
have
a
significant
effect
immediately.
It
will
when
we
have
future
gains
and
losses
or
future
assumption
changes.
N
N
I
N
N
N
To
the
extent
that
inflation
causes
interest
rates
to
go
up
and
improves
future
expected
rates
of
return,
it
very
much
works
in
our
favor,
or
I
guess
you
could
say
well
also
in
terms
of
revenue
for
the
city,
to
the
extent
it
increases
due
to
inflation.
That
makes
those
future
payments
cheaper.
Yeah.
N
M
A
N
E
Thank
you,
mr
chairman,
and,
on
behalf
of
the
board,
I
may
ask
a
couple
of
questions
and
bill.
Thank
you
for
coming
and
bringing
back
these
demos
and
options
very
much
appreciated
one
of
the
charts
bill
that
I
was
hoping
that
you
might
be
able
to
show
to
the
board
this
time
around
was
where,
where
this
fund
stands
relative
to
its
peers
in
terms
of
funded
status.
E
E
E
N
N
N
N
B
But
well
bill
if
we
might
see
the
previous
slide,
because
I
think
the
biggest
changes
have
been
the
previous
to
that
previous.
To
that
sorry
keep
going
back
there
we
go.
I
mean
the
biggest
changes
we
have
made
and
the
most
impactful
have
been
the
changes
to
the
discount
rate,
which
is
our
assumed
rate
of
return
which
have
come
down
significantly.
The
board
has
taken
the
hard
and
painful
work
of
being
much
more
realistic.
Now
right
and
the
discount
rate
as
a
result,
came
down
then
stabilized
and
is
now
increasing.
B
E
E
In
other
words,
the
contributions
just
cover
the
interest
they
never
eat
away
at
the
principal
amount
of
the
amount.
Doing,
wouldn't
it
be
prudent
to
at
least
start
improving
the
funded
status,
at
least
any
amortization
schedule
that
we
have
to
get
it
down
below
17
like
in
the
15
range
and
then
start
at
least
allowing
every
some
of
the
dollars
that
the
city
pays
towards
the
unfunded
liability
to
start
paying
down
the
principal
instead
of
just
paying
off
interest
on
the
debt.
N
N
The
interest
only
is
at
about
23
years,
22
or
23
years,
and
that
was
something
that
we
were
covering
last
last
month,
but
the
17
years
was
back
when
we
were
using
an
8
interest
assumption
and
something
like
three
and
a
half
or
four
for
the
amortization
increase.
Then
you
would
have
been
at
17.,
but
that's
part
of
what
we're
talking
about
here
is
we
have
made
that
transition
so
that
now
contributions
are
paying
off
the
principle
on
the
amortization.
O
Thank
you,
chair
horowitz.
I
I
just
wanted
to
give
everybody
the
kind
of
the
full
picture
of
your
your
where,
where
these
extra
dollars
would
come
from-
and
I
I
want
to
highlight
first
of
all
the
slide
five-
that
our
contribution
rates
are
already
amongst
the
highest.
I
think
bill
said
we
were
in
our.
We
were
in
the
95th
percentile
for
california
and
we're
we're
definitely
among
the
highest
in
in
the
entire
united
states.
O
The
stability
of
contributions
is
extremely
important
to
the
city
budget.
I
think
you
all
know,
and
it's
almost
become
trite
to
say,
but
it
is
true
that
we
are
one
of
the
most
thinly
staffed
city
halls
in
all
of
the
united
states
or
any
big
city,
and
our
budgets
are
extremely
tight.
Just
to
give
you
one
example:
every
dollar
that
goes
to
additional
contributions
is
a
dollar
that
we
cannot
spend
on
services
for
our
residents.
O
O
O
So
I
just
want
you
all
to
know.
Fewer
additional
services
are
services
that
are
still
very
badly
needed
in
our
community,
and
I
I
would
try.
I
would
like
to
make
the
case
that
keeping
everything
the
same
in
a
time
when,
first
of
all,
if
you're
talking
about
the
emerging
chain,
lowering
the
the
amortization
for
emerging
returns,
last
year's
returns
were
great
and
this
year's
returns
are
not
looking
great.
So
we
would
have
a
longer
amortization
from
what
I'm
and
bill.
O
It
looks
like
nothing
to
you
now
because
on
this
on
the
projections,
because
we
don't
know
how
the
year
is
going
to
turn
out
but
we're
over
halfway
through
that
we're
three
quarters
of
the
way
through
the
year.
I
think
we
have
some
idea
every
additional
dollar
that
we
have
to
spend
above
the
above.
The
projections
now
again
are
dollars
that
we're
not
going
to
be
able
to
spend
on
additional
services
for
our
residents.
O
So
I
just
wanted
to
make
that
point
while
you're
all
considering
this
that
I
I
understand
harvey
your
your
you
know
wanting
the
board
to
consider
their
fiduciary
duty,
but
considering
their
duty
to
the
public
is
not
only
about
this
funded
status.
It's
about
also
what
what
the
impacts
of
their
decisions
are
on
residents
and
the
services
that
they
receive.
M
F
N
N
L
N
Yeah,
so
there
there's
a
couple
things
just
to
clarify
here:
one:
we
have
the
estimated
asset
impact
for
the
investment
losses
through
june
30th
2022.,
and
so
that
impact
is
what
you're
seeing
is
the
difference
between
the
blue
line
and
and
the
top
of
the
gold
bars.
So
that
part
is
built
in
we
are
we
smooth
those
returns
over
five
years
so
to
just
a
minor
correction
to
council
member
davis's
concerns
the
80
of
the
gains
from
the
2021
would
still
be
amortized
over
this.
D
L
I
I
just
wanted
to
add
to
that.
Thank
you
bill
for
this
those
explanations
and
then
thank
you
to
councilmember
davis
right.
This
is
one
of
the
reasons
you
have
your
city
council
liaison,
so
they
can
keep
your
price
of
the
business
of
the
city,
because
it's
important
I
mean
this
is
a
very
difficult
subject.
L
It
is
very
important,
extremely
critical
and,
above
anything
else,
we
want
to
make
sure
that
you
have
as
many
data
points
as
and
information
as
possible,
which
is
very
helpful
to
hear
from
the
city
council
member,
providing
you
some
further
information
that
is
not
in
this
graph
about
future
implications
of
any
consideration
of
decreasing
these
amortization
periods.
I
also
wanted
to
let
you
know
we
try
very
hard
to
work
closely
with
the
city
and
to
keep
them
apprised
about
discussions
and
a
common
upcoming
decisions
by
your
board.
L
That
has
implications,
in
this
case
financial
implications
to
the
city.
So
we
also
share
this
public
information
that
is
presented
here
this
morning
with
then
beforehand
and
so
with
you
here
this
morning,
and
I
don't
I
don't
want
to
put
you
in
the
spot.
Jim
is
jim
channon.
He
is
the
city
budget
director,
I'm
just
sort
of
letting
you
know,
because
he
is
actually
listening
to
the
meeting
and
he
certainly
can
address
any
questions
that
any
of
your
board
members
may
have
in
terms
of
hopefully
helping.
L
You
settle
any
thoughts
so
to
so
you
can
make
a
decision
and
we
also
have
our
city
liaison
sherry
parkman
as
well
as
always
attending
the
meeting.
So
the
city
project
director
did
share
with
me
some
some
communications
and
comments
early
in
the
week
in
regards
to
the
possible
implications
of
some
of
the
decisions
that
were
being
considered.
L
L
B
I
No,
I
was
just
going
to
say,
I
think
there
is
a
real
balance,
because
we
need
to
make
sure
that
the
city
of
san
jose
has
the
the
funds
to
provide
services.
So
the
city
of
san
jose
is
a
place
to
live
a
place
to
work
in
and
but
we
also
need
to
protect
our
our
beneficiaries,
and
there
is
a
balance
we
can't
just
say.
I
D
B
F
Yeah,
I
actually
raised
my
hand
this
time,
guys
all
right,
so
I'm
looking
at
this
chart
on
page
seven-
and
I
just
wanna-
reconfirm
what
I'm
seeing
here.
So
this
is
the
blue
line
or
whatever
the
line
is
it's
the
2021
projection
of
contributions
that
we
gave
and
that
jim
budgeted
with
the
amount
over
that
is
based
on
the
latest
performance
from
this
last
fiscal
year.
So
and
then
I
have
a
two
part
to
that.
But
can
you
just
confirm
that
that
has
nothing
to
do
with
any
change
in
any
assumptions
correct.
N
So
if
the
investment
returns
were
worse-
and
I
think
to
the
the
point
that
was
made
earlier
worse
over
the
last
three
years
in
particular-
then
yes,
the
contributions
would
be
higher
and
probably
much
higher.
If
you're
talking
about
a
672
million
dollar
difference,
they
would
probably
be
much
higher.
F
You
know
you
know
the
and
it
was
like
yeah
kind
of
like
it
was
the
years.
You
know
it's
the
20
to
25
whatever.
If
we
only
changed
the
assumption
you
know
and
and
took
that
from,
I
don't
know,
I
think
it's
at
20
and
took
it
to
15..
I
don't
know
it's
where
you're
showing
how
everybody
else
is
yeah
that
yeah
that
guy,
so
the
the
investment
the
one
to
the
left.
F
You
know
we're
we're
in
with
the
pack
right.
You
know,
there's
12
that
are
at
20,
there's
13
that
are
15..
I
I
don't
know
why
we
have
to
change,
or
can
you
know
do
that?
What
but
the
other
one
we're
at
25
and
there's
only
three
and
the
pack
is
more
or
less
at
20..
So
if
we
were
to
do
something
like
that
and
those
are
assumption,
changes
right,
that
might
be
a
lot
less
and
you
know
to
be.
F
F
F
F
Yeah,
that
would
be
great
if
you
could
I'd
like
to
see
what
that
is.
You
know,
and
I
I
think
you
know
I
guess
my
standing
at
this
point
is
I
don't
want
to
go
cold
turkey
and
I
would
be
more
inclined
either
towards
you
know,
just
getting
the
outliers
back
into
the
or
to
go
to
the
future.
You
know
where
we
in
the
future
look
at
trying
to
get
us
a
little
more
there,
because
we
do
have
to
be
cognizant
of
what
it
does
to
our
sponsor
as
well.
B
J
Yeah,
I'm
not
sure
if
this
is
helpful
to
bring
it
up
now
or
we
can
table
it
for
later,
but
I
do
wonder
where
pension
obligation
bonds
might
fit
into
the
equation
enough.
The
interest
rates
are
worse
now
and
that's
always
a
bet
against
paying
a
certain
fixed
rate
and
hoping
you
can
outperform
that
in
the
with
your
investment
returns.
So
I
I
haven't
thought
it
through.
I
don't
even
know
what
current
rates
are.
I
B
B
N
Yeah,
so
this
is
this:
is
our
interactive
model.
We've
got
the
projection
of
the
liabilities
on
the
top
here.
The
lines
are
the
assets
funded
ratio
across
here
we've
built
in
the
current
year's
investment
performance
and
then
at
the
bottom.
We
have
the
projected
member
contributions,
city
contribution
and
the
comparison
to
the
2021
projection
on
the
far
right.
This
is
what's
new.
N
N
B
D
N
F
Doesn't
increase
the
sponsor
amount
right
right,
that's
what
we're
showing
okay,
so
it
could
be
if
we
were
to
do
that,
it
would
get
our
assumptions
in
line
with
the
other.
California.
Is
it
just
california
we're
comparing
it
to
yes,
yeah
so
to
the
other
california
pension
plans,
but
really
not
address
the
funded
rate,
but
also
not
impact
the
sponsor.
D
O
Maybe
you
can
maybe
you
remember
that,
but
I
that's
my
kind
of
recollection
of
why
why
why
the
board
elected,
to
leave
the
amortization?
The
way
it
was
for,
in
fact
it
might
have
actually
changed
from
30
to
25,
but
there
was
that
discussion
about.
Well,
if
we're
going
to
continue
decreasing
the
assumed
rate
of
return,
maybe
we
don't
want
to
mess
with
the
amortization
as
as
much
or
at
the
same
time.
So
I
appreciate,
I
think
it
was
a
trustee
chandra
who
who
was
talking
about
you
know.
O
If
we're
going
to
revisit
the
assumptions,
maybe
it
makes
sense
to
revisit
the
amortization
of
the
assumptions
at
the
same
time
as
opposed
to
having
these
two
conversations
separately,
because
there
you're
right,
if
we
say,
oh,
you
know
we're
gonna
leave
the
assumed
rate
of
return
the
same.
It
doesn't
change
the
city
contribution.
All
that
much.
I
think
it
it's
three.
I
think
it's
about
three
million
dollars
is
that
right
over
what
2024
was
going
to
be,
but
maybe
I'm
wrong.
I
did.
O
N
So,
just
to
give
my
recollection
of
the
history
back
in
2007,
the
system
was
using,
what's
called
a
30-year
rolling
amortization,
which
is
really
not
a
recommended
method,
it's
a
long
period,
but
then
every
valuation
you
reset
it
to
30
years.
So
it's
sort
of
like
refinancing
your
house
every
year
and
resetting
the
those
payments.
So
you
never
make
progress
on
paying
down
the
unfunded
so
part
of
what
drove
the
contribution
rates
higher
was
us
shortening
those
amortization
periods
and
and
doing
it
relatively
quickly.
N
Is
that
that's
really
a
reset
of
all
your
past
costs?
It's
a
reassessment
of
all
your
past
costs.
It's
not
something
that
you
just
experienced
this
year,
so
that
that
would
be
the
rationale
for
having
a
longer
period
for
assumption
changes.
But
having
said
that,
you
know
20
years.
It
is
right
in
the
middle
of
that
recommended
range
and
is
what
most
of
the
systems
are
using.
N
The
member
contribution
rates
are
impacted
if
we
change
the
discount
rate,
but
the
unfunded
liability-
and
here
we're
only
talking
about
tier
one,
so
tier
one
members
do
not
pay
for
the
unfunded
liability.
If
we
were
making
similar
changes
on
tier
two,
there
would
be
a
cost
to
the
members,
but
we're
only
focused
on
tier
one
here.
G
Yeah.
Thank
you,
mr
chairman.
Just
a
quick
comment.
Council
member
davis
spoke
about
the
assumed
rate
of
return
and
I
have
to
say
you
know.
The
two-year
treasury
last
year
was
yielding
21
basis
points,
and
it's
now
yielding
3.78.
I
mean
it's
a
significant
increase
in
expected
rate
of
return
on
the
two-year
treasury.
Now
will
that
sustain?
Will
the
fed,
quash
inflation
and
will
rates
go
down?
G
G
B
B
B
N
B
J
J
B
B
L
G
Would
say,
I
would
say,
a
trusty
killer
just
based
on
market
movements.
I
think
it's
very
reasonable
to
raise
the
discount
rate.
This
is
not
taking
into
account
that
we're
going
to
go
to
a
recession,
and
you
know
we
don't
know
how
profits
are
going
to
be
impacted
and
there
will
be
layoffs
and
consumer
spending
will
go
down
negative
impact
on
gdp
and
so
forth.
G
B
N
N
N
J
L
It's
hard
to
follow
this
discussion
was
very
educational.
Thank
you
bill.
So
much
and
honestly,
thank
you
to
everyone
else
that
have
comments
and
thoughts
on
the
matter
very,
very
helpful,
and
certainly
a
lot
more
additional
for
thought.
I
thought
you
more
decision
to
have
further
discussion
and
potentially
make
a
decision
when
you
have
more
data
points
and
more
of
that
information
is
an
appropriate
one.
So
thank
you.
Thank
you.
L
L
L
At
the
same
time,
we
are
working
on
recruiting
activities
for
the
the
third
position
that
you
bought
and
the
city
council
approved
for
us
for
the
new
year
on
the
senior
supervisor
position.
So
we
will
keep
you
posted
on
how
that
that
process
ensue,
and
hopefully
we
can
work
on
someone
on
board
soon.
L
We
are
in
the
middle
of
developing
our
open
enrollment
packets,
which
we
hope
to
deliver
by
mail
to
our
members
next
month
and
right
now,
given
everything
as
have
been
developed
with
kobe
19
right
now,
we're
actually
planning
on
our
first
in-person
health,
fair
in
a
few
years.
We
don't
expect
that
to
change.
But
if
something
happens
we
will
let
you
know-
and
in
addition
to
that,
we
will
have
multiple
opportunities
for
members
to
attend
virtual
online
webinars
by
our
vendors.
B
O
B
D
L
B
B
Our
ceo
received
an
outstanding
rating
on
his
performance
for
this
past
year
and
we
were
all
extremely
pleased
and
he's
received
very
positive
comments
from
trustees,
as
well
as
an
excellent
track
record
in
his
performance
as
discussed,
the
position
has
already
received
a
4.5
contract
rate
or
cola
rate
or
base
rate.
I've
heard
various
terms
for
it
and
we
were
discussing
the
potential
of
a
performance
increase.
F
So
one
I
would
like
to
recognize
the
strong
performance
of
both
our
ceo
and
cio
over
the
last
fiscal
year.
This
performance
has
provided
extraordinary
plan
value
to
both
our
sponsor
employees
and
retirees.
As
noted
previously,
we
are
now
in
the
seventh
percentile
of
our
peers
and
our
beta
point.
Our
beta
is
0.7
based
on
this
performance.
Isomotion,
the
following
merit
and
executive
days
for
our
ceo
and
cio.
B
I
J
This
is
trustee
chandra,
I'd
like
to
echo
what
vice
chair
jennings
said,
and
just
I
know
that
it's
been
said
in
other
forum
and
in
some
of
the
survey
work
that
we've
done
to
arrive
at
the
ceo's
performance,
but
I
actually
wanted
to
say
it
in
this
forum.
Tremendous
job.
Thank
you
for
your
service
and
we're
grateful
to
have
you
in
the
role.
J
B
L
M
B
J
D
J
Timing,
so
I
I
think
some
of
the
background
that
shar
horowitz
provided
is
also
applicable
to
the
review
that
was
conducted
for
cio,
palani
self
evaluation
and
then
also
input
from
our
board
and
the
police
and
fire
just
to
refresh
everyone's
memory.
We
engaged
in
a
new
process
last
year,
which
we
was
helped.
We
were
helped
in
developing
it
by
cortex,
and
the
bottom
line
is
that
our
cio
received
an
outstanding
across
all
categories
and
for
his
overall
performance
I
think,
notably
for
the
cio's
office.
J
J
So
it's
it's
been
tremendous
performance
through
significant
headwinds
and
everyone's
familiar,
obviously
with
the
prior
fiscal
year,
where
we
had,
as
I
believe
the
chair
refers
to
it
a
blockbuster
year,
but,
more
importantly,
the
feedback
that
the
cio
has
received
from
his
staff
and
the
support
that
he
provides
them.
The
leadership,
the
management
the
mentorship
has
been
excellent.
J
D
J
Which
we
just
had
a
rather
lengthy
conversation
about
the
last
thing,
I'll
mention
is
that
our
brethren
at
police
and
fire
also
discussed
in
their
board
meeting
in
the
open
section,
their
compensation
determination
for
the
cio,
and
I
believe
that
they
have
come
up
with
a
range
of
four
to
five
percent
and
five
executive
days.
But
with
that
I
would
love
to
hear
my
fellow
trustees
and
their
thoughts
on
cio
compensation.
F
I
F
D
F
B
I
B
I
I
think
those
are
all
incredibly
important
considerations.
I
believe.
Yes,
we
would
hire
some
type
of
head
hunting
hr
firm.
It
would
be
an
expensive
and
laborious
process,
and
I
don't
we
hope
that
we
can
put
in
a
program
where
we
would
not
be
losing
our
cio
and,
of
course,
to
that
end,
the
jpc,
as
you
may
know,
is
discussing
the
implementation.
F
What
council,
member
davis
saw
and
what
our
budget
director
saw
was
a
performance,
although
they're
not
thrilled
that
it's
going
up
could
have
been
much
worse
and
it
would
be
if
we
didn't
have
bappu
at
the
at
the
helm.
I
am
that's
my
strong
assumption,
and
so
I
just
knee
and-
and
I
understand
how
and
I
am
a
city
employee-
and
I
wear
another
hat
too,
as
representing
a
union,
and
so
I
understand
how
city
employees
find
this
hard.
F
J
E
C
C
I
tend
to
lean
more
towards
your
position,
mr
chair,
that
this
is
a
two-step
process
and
I
think
something
that
seven
percent
is
more
comfortable
for
me.
Given
the
two-step
process
that
we're
in,
if
we
were
not
in
that,
I
would
lean
more
towards
the
higher
amount,
but
I'm
also
recognizing
that
we're
in
that
two-step
thing
and
we're
gonna
be
going
to
the
council
it'll
be
with
both
steps
over
this
next
year.
A
I
I
O
I
think
that's
a
great
question.
You
asked
what
I
think,
although
I'm
supposed
to
represent
the
entire
council.
I
don't
know
that
I
can
answer
for
the
entire
council
and-
and
I
and
I'd
also
like
to
caveat
what
I
what
I'm
about
to
say
with
with
the
fact
that
I
don't
know
where
mr
palani
is
in
in
his
salary
range,
and
I
don't
know
what
off
the
top
of
my
head,
what
his
increases
have
been
over
the
last
few
years.
So
I.
J
O
Okay,
thank
you
for
that.
That's
very
helpful,
so
I
I
think,
given
given
the
outstanding
performance
of
of
the
last
few
years,
I
I
could
see
a
seven
percent
increase
being
being
reasonable.
I
don't
know
what
him
being
at
the
top
of
his
pay
scale
means
for
any
compaction
issues
beyond
our
regular
increase
amounts.
So
I
don't
that's
that's
why
I
have
to
caveat
what
I
said
about
about
the
seven
percent.
J
It
would,
it
would
effectively
be
well
in
it.
It
is
not
the
motion
per
se
but
effectively
because
he
is
at
his
cap.
It
would
be
a
one-time
addition
to
his
compensation
for
this
year
and
would
not
be
a
part
of
his
compensation
next
year.
That
would
require
the
boards
to
determine
what
that
would
be
in
that
fiscal
year.
D
O
D
D
O
D
M
J
You
know
vice
chair
jennings.
Did
me
a
great
favor,
because
I
don't
think
I
can
improve
upon
the
way
she's
described
the
performance
and
the
value
add
and
I'll
also
draft
off
of
trustee
kelleher
in
recognizing
the
importance
of
retaining
this
type
of
talent.
I've
been
in
the
investment
business
a
long
time,
and
you
know
I
will
always
take
a
mediocre
money
manager
over.
J
J
I
think
there
are
two
other
things
we
need
to
consider.
One
is
being
expeditious
and
not
having
this
drag
out
for
a
long
period
of
time
and
while
I
believe
ten
percent
is
deserved
and
that
three
percent
is
probably
meaningful.
I
also
believe
the
two-step
process
we're
going
to
engage
in
is
going
to
require
both
boards
to
be
fully
supported,
fully
engaged
united
and
allied
in
the
effort
to
put
forth
the
best
proposal.
B
B
B
Thank
you
for
the
confirmation
of
my
offhanded
observation
all
right.
Thank
you
for
the
discussion.
It's
always
it's
always
painful
for
me
to
discuss
this
and
in
private,
nor
in
public,
so
either
way
it's
it's
it's
difficult,
but
we
appreciate
our
our
executive
staff,
their
leadership
and
what
they've
achieved-
and
I
hope
that
comes
through
regardless
of
what
numbers
we
assigned
to
that
on
to
item
agenda,
5d,
discussion,
action
on
authorizing
the
ceo
to
negotiate
and
execute
a
first
amendment
to
the
agreement
with
socially
responsible
partnerships,
our
social
media
vendor.
M
Barbara
heyman
deputy
director
for
the
office
of
retirement
services.
This
item
is
requesting
board
authorization
to
negotiate
and
execute
a
first
amendment
to
the
agreement
with
socially
responsible
partnership,
the
social
media
vendor
to
extend
the
term
of
the
agreement
through
june
30th
2024
at
the
same
monthly
amount
of
1557
dollars
and
50
cents.
M
and
fifty
seven
dollars
and
fifty
cents
per
month,
and
the
cost
is
shared.
Fifty
fifty
between
each
of
the
two
boards
police
and
fire
and
your
sales
federated
and
the
budget
for
these
services
was
approved
by
you
board
at
as
part
of
the
budget
for
the
fiscal
year,
2022-23
now
per
board
policy
board
approval
is
required
for
any
contract
that
would
result
in
the
cumulative
contract
value
with
any
single
vendor
above
50
000
over
two
consecutive
years,
so,
which
is
the
case
for
the
for
this
agreement.
M
B
B
E
E
So
what
would
entertain
is
a
motion
to
make
the
findings,
as
outlined
in
the
memorandum
by
the
current
emergency
status
and
recommended
social
distancing
and
for
the
board
to
continue
to
be
able
to
meet
in
the
next
30
days
pursuant
to
ab361s
abbreviated
procedures.
I'll
also
make
a
comment
just
so.
You
know
we'll
have
more
about
this
later.
E
E
I
will
tell
you
just
as
a
teaser
that
ab2449
is
even
more
complicated
of
a
process
than
what
we're
going
through
right
now,
so
they
didn't
do
us
any
favors
in
passing
this
bill,
but
it
is
at
least
another
alternative
that
will
outline
for
you
or
today.
However,
we
would
entertain,
if
I
may
say
so,
mr
chairman,
a
motion
to
adopt
the
findings
as
set
forth
in
the
memorandum
and
to
continue
meeting
pursuant
to
ab361
for
the
next
30
days.
Thank
you.
B
N
D
B
J
Yes,
I
don't
have
a
comprehensive
update,
but
we
did
have
a
meeting
on
the
let's
see.
When
did
we
have
the
meeting
I'm
losing
track
of
time
now,
but
at
our
last
meeting
we
discussed
that
we
got
a
really
nice
update
on
the
public
markets
from
senior
investment
offered
jaequan
and
also
always
helpful
speaking.
J
You
know
for
myself
here
the
risk
overview
by
varus,
I
think,
maintaining
our
staying
within
our
risk
budget
and
being
mindful
of
not
overexposing
ourselves
on
beta,
has
been
critical
to
our
success
and
varus
does
really
good
work
for
us.
So
I
just
wanted
to
note
that
and
other
than
that,
I
think
we've
got
a
couple
of
meeting
minutes
to
file.
B
F
B
Okay,
thank
you
audit
committee.
Their
last
meeting
also
was
a
special
meeting.
Anything
to
report
chair
keller,
no,
nothing
to
report.
Thank
you
joint
personnel
committee.
We
did
have
a
meeting
on
september.
9Th
chair
orr
was
not
in
attendance
for
that
meeting,
nor
this
meeting
so
perhaps
I'll
address
it.
We
did
have
an
extensive
review
of
two
studies.
One
was
on
competitive,
ceo
compensation
and
the
other
was
on
cio
compensation
and
incentive
programs.
B
The
survey
done
that
we
paid
for
from
mcglagan,
which
is
a
leader
in
the
field.
We
had
some
extensive
discussion,
preliminary
discussion
on
whether
we
might
institute
an
incentive
bonus
program,
what
that
might
look
like
how
it
might
be
described
and
communicated
to
the
city
and
other
stakeholders,
so
suffice
to
say,
there'll
be
more
on
this
in
the
future.