►
Description
City of San José, California
Police & Fire Department Retirement Plan Board of April 6, 2023
This public meeting will be held at San José City Hall and also accessible 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=1091508&GUID=8B72B8C3-4612-4033-B4DE-1A79F846A9A8
A
A
A
A
A
A
A
B
B
That's
pretty
echoey:
why
don't
we
go
ahead
and
get
started
right
on
time?
Look
at
that!
Let's
go
ahead
and
call
this
mean
to
order
and
I'll
do
roll
call
so
before
roll
call,
so
we're
never
the
same
after
covid
and
that's
not
because
of
covid.
That's
because
of
my
industry,
where
we
invented
the
tech,
so
we
didn't
have
to
meet
in
person
anymore,
but
it
could
be
pretty
Interactive.
B
There
are
people
out
there
in
The
Ether,
and
they
can
only
hear
you
if
you
press
that
little
red
green
button
in
front
of
your
microphone
so
we'll
have
a
test
run.
We
do
roll
call
so
call
your
name
press
the
green
button
say
here
in
the
microphone
and
get
rid
of
the
green
buttons.
I,
don't
know
if
you
hear
you
fall
and
sneeze
and
so
on.
So
here
we
go
Franco.
C
D
E
B
F
B
B
F
B
H
Well,
we
have
two
agenda.
Excuse
me,
there's
two
agenda
items
listed
under
item,
one
which
are
ab2449
remote
appearances
for
just
cause
or
emergency
circumstances.
Those
are
available
to
the
board
members
should
they
need
to
appear
remotely
under
those
under
that
provision.
However,
as
I
can
see
here,
all
the
board
members
are
here
in
present
in
person,
so
there's
no
need
to
address
those
agenda
items.
B
B
B
B
B
B
B
B
J
J
J
J
A
A
A
A
A
A
A
A
A
A
A
A
K
K
K
K
A
A
A
A
A
A
A
A
J
J
J
J
J
A
B
B
L
F
B
Opposed
any
pose
down:
hey
I'm
gonna
do
a
little
favor
for
one
of
our
trustees,
dick
I'm,
going
to
skip
ahead
to
a
death
and
Survivor
notifications,
because
Dick
In
fact
has
to
leave
a
little
early
from
this
meeting
to
attend.
One
of
those
funerals
I
will
point
out
that
it's
a
sad
moment
well
a
moment
of
silence,
but
it's
also
good
news
on
some
of
these
reports.
B
I
know
oops
notification
of
the
death
of
Robert,
L
bacon,
firefighter
retired
1996
died,
Feb,
February
2023,
so
our
survivorship
benefits,
Terry
bacon,
spouse
notification
of
the
death
of
Herbert
bartolini,
firefighter
retired
April.
1St
1968,
when
I
was
actually
in
third
grade
died.
Feb
2,
2023,
with
no
survivorship
benefits,
notification
of
death
of
Joshua,
Brown
police
officer,
retired
deferred
vested
died
from
12
2023.
Also,
no
survivorship
benefits
a
notification
of
the
death
of
Dudley
C
by
no
that's
a
good
name.
B
Firefighter
retired
July
12
1999
died,
December,
25th,
2022
survivorship
benefits
to
Linda
by
no
spouse
notification
of
the
we
had
a
lot
of
deaths.
Unfortunately,
winter
is
always
tough
notification
of
the
death
of
George
Greg
police,
Sergeant,
Richard
July
28
2007
died,
Feb,
5,
2023,
survivorship
Minimates
to
Catherine
Gregg,
spouse
notification
of
the
death
of
Michael
P
Nichols
police,
Sergeant,
retired
March
8
of
98
died,
December,
14
2022,
leaving
no
survivorship
benefits
a
notification
of
the
death
of
Stephen
Pisa.
B
We
have
all
your
names
on
this
list:
fire
captain,
retired
January,
15th
of
1998
died,
February
23rd
2023
survives
your
benefits
to
Elizabeth
Pizzo,
Pizzo
spouse
and
the
notification
of
the
death
of
Thomas
Wheatley
acting
Chief
retired
January
7
2004
died,
January,
23rd,
2023,
no
survivorship
benefits.
Let's
have
a
moment
of
silence.
Remember
these
folks.
B
L
Yes,
thank
you.
Mr,
chair,
I,
really
appreciate
the
time.
Unfortunately,
I
have
to
go
to
two
funerals
in
all
of
these
men.
Here
were
all
important
and
I'm
sure
they've
made
great
contributions.
I
knew
most
of
them
and
I
worked
with
all
the
firefighters
and
I
have
to
know
Chief,
Wheatley
and
so
on
and
I
didn't
know
the
other
two
police
officers
and,
of
course,
the
best
of
their
families,
but
I
do
want
to
point
out
the
firefighter
Dudley
Bynum,
because
I
had
to
speak
at
his
funeral
a
month
ago.
L
He
was
then
actually
I
came
out
in
1968
and
a
lot
of
you
folks
say
don't
know
the
times
then,
but
there
was
no
black
firefighters.
There
was
no
women,
there
was
no
Asians
and
there
was
only
10
Hispanics.
That
welcomed
me
aboard
times
are
very,
very
difficult.
Today,
you're
the
beneficiary
of
all
those
sacrifices
that
Mr
binder
was
the
one
that
created
the
black
firefighters,
Association
Santa,
Clara
County.
He
was
the
president
and
founder.
L
He
made
the
difference
by
bringing
in
working
with
at
the
time
the
city
managed
a
new
farmer
and
they
made
the
revolution
every
change
in
the
fire
department
and
that's
when
everybody
had
opportunity
of
being
hired.
So
I
wanted
to
point
out
his
extraordinary
leadership
and
when
Pam
Foley
talks
about
our
EAP
that
we
had
employees,
assistance
program,
Mr
Barna
was
ahead
of
that
and
was
really
a
nester
instrument
in
making
that
work.
We're
trying
to
make
sure
we
have
that
kind
of
service
for
our
retirees
today
we'll
go
through
psychological
issues
and
so
on.
L
So
we
appreciate
Pam's
energy
on
that
it
all
takes
funding,
but
the
sacrifices
are
enormous,
but
Mr
Bynum
went
on
to
make
sure
the
plane
level
playing
level
of
opportunity
was
a
level
and
kept
the
fires
of
Justice
burning.
So
I'm,
going
to
point
out,
Dudley
Miner
was
made
a
Major
Impact
in
the
San
Jose
Fire
Department
integrated
that
because
he
was
the
second
firefighter
black
firefighter
to
be
hired,
but
he
took
the
role
of
leadership
and
made
the
difference.
Thank
you.
Mr,
chair,
I,
appreciate
it.
C
Yeah
I
worked
with
some
of
these
police
officers
and
it's
always
it's
always
sad
to
see
them
pass,
but
I
do
want
to
acknowledge
the
former
acting
Chief
Tom
Wheatley.
He
was
a
pretty
amazing
man
and
he
was
probably
an
even
better
chief.
The
best
way
to
describe
him
is
that
he
was
pretty
much
our
Clint
Eastwood
of
the.
F
M
I'll
Echo
what
Franco
said
Tom
was
a
cops
cop.
All
the
way
up
to
the
chief.
He
never
changed,
who
he
was
in.
His
personality
was
provided
true
leadership
and
mentorship
to
a
lot
of
people
over
many
many
years
and
was
a
true
role.
Model
George,
Grigg
I
worked
for
his
I
never
knew
his
first
name
was
George
was
Bruce
to
me,
but
I
worked
for
him
when
we
were
in
Narcotics.
M
G
B
N
We
have
sorry,
let
me
pull
this
up.
I
think
we
have
two
things
on
the
agenda
today:
asset
allocation
and
then
there's
a
bunch
of
contracts
that
need
to
be
approved,
but
before
we
get
to
asset
allocation
and
Laura
I
do
have
preliminary
performance
estimates
as
of
4-4
and
again
these
are
unaudited
numbers.
These
are
just
estimates
and
these
are
not
even
month
end.
So
keep
that
in
mind,
police
and
fire
Pension
Plan
fiscal
year
today
at
4.7
percent
and
the
healthcare
trust
was
6.17
percent.
N
N
Okay,
so
thank
you,
so
strategic
aesthetication
is
is
a
very
important
decision
that
the
boards
make
it's
the
single
largest
determinant
of
of
returns.
As
you
all
know,
and
we've
had
pretty
extensive
discussions
at
the
investment
committee,
not
once
but
twice
on,
SAA
led
by
Makita,
and
we
have
here
A
bunch
of
options
for
the
board
to
consider
and
we
can
as
Laura
walks
you
through
these
options.
O
Thanks,
okay,
so
as
your
CIO
introduced,
we
have
here
the
annual
asset
allocation
analysis,
which
the
investment
committee
has
now
seen
a
couple
of
times.
As
you
know,
we
go
through
this
process
when
Makita
updates
our
annual
Capital
Market
assumptions
with
our
annual
asset
study,
which
is
based
on
December
31
information
in
my
15
years
at
Makita.
I've
spent
a
lot
of
time
telling
folks
every
year
that
our
Capital
Market
expectations
have
gone
down
that
we
think
you're
going
to
get
less
return
per
unit
of
risk
than
you
did
in
the
past.
O
But
this
year
is
different,
since
we
have
a
higher
interest
rate
environment
and
lower
Equity
valuations,
given
that
last
year
in
the
markets
was
not
a
good
one,
we
now
have
expectations
for
forward
looking
returns
that
are
higher
than
we've
had
in
the
past.
So
we
do
expect
that
your
expected
rate
of
return
over
the
long
term
is
going
to
be
well
above
the
Actuarial
assumed
rate
of
return
of
6.625
percent
and
that
your
risk,
which
is
calculated,
is
standard.
Deviation
by
your
advisor
varis
is
going
to
remain
below
the
12
threshold.
O
That
is
within
your
investment
policy
statement.
So
in
this
document
we
have
several
options.
These
are
the
sort
of
determined
options
based
on
looking
at
many
many
other
options
at
the
beginning
of
the
process,
and
we
work
with
your
investment
staff
to
get
to
these
options
and
then
bring
them
to
the
investment
committee
and
then
to
the
board.
So
we're
going
to
show
you
the
current
asset
allocation,
compare
that
with
three
alternative
asset
allocations
and
also
look
at
a
60
Equity
40
Bond
allocation,
just
as
sort
of
a
benchmark
and
our
our
goal
here.
O
We
know
that
our
expectations
for
forward
looking
returns
are
not
going
to
be
exactly
right.
We
really
do
wish.
We
had
a
crystal
ball,
but
we
don't.
We
have
tried
to
to
have
a
sort
of
academically,
intellectually
honest
process
to
try
to
come
up
with
those
expectations.
Makita
doesn't
manage
any
assets.
Our
sole
business
is
advising
boards
like
yours.
So
we
have
no
interest
in
inflating
one
expectation
for
one
asset
class
over
another.
O
We
have
here
the
investment
policy
statement-
language.
As
you
all
know,
asset
allocation
is
a
really
important
part
of
investing.
Probably
the
biggest
determinant
of
your
returns
is
not
which
individual
investment
manager
you
select,
but
what
asset
classes
you're
in
and
how
much
you
have
allocated
to
those
asset
classes
and
that's
been
a
big
determinant
of
the
plan's
success
in
recent
years.
The
investment
policy
statement
does
include
some
language
on
reevaluating
asset
allocation
annually,
which
we're
doing
now
or
when
the
S
P
500
experiences
a
decrease
of
more
than
20
percent
from
its
peak.
O
So
when
you
made
the
big
change
in
the
early
pandemic
days
in
March
and
April
of
2020,
that
was
because
the
the
fall
and
the
S
P
500
triggered
an
asset
allocation
review
that
was
quite
Timely
in
terms
of
our
Capital
Market
expectations.
They're,
driven
by
a
lot
of
factors,
including
interest
rates,
dividend
yields
Equity
prices
2022,
as
you
know,
was
a
difficult
year
in
the
markets,
but
the
Silver
Lining
there
is
that
increased.
Our
return
assumptions
going
forward.
O
The
yield
to
worst
on
a
bond
is
a
really
good
indicator
of
future
returns
for
fixed
income
that
was
paired
with
lower
prices
for
equities.
So
you
can
see
here.
The
black
line
on
this
chart
is
sort
of
a
average
valuation.
Historically,
the
green
lines
are
one
standard
deviation
above
and
one
standard
deviation
below.
So
you
can
see
that
U.S
equities
are
still
relatively
richly
valued
relative
to
history.
They're
still
relatively
expensive,
but
you
can
see
they've
come
down
a
huge
amount
since
their
Peak
recently
and
there
are
lower
prices
in
non-us
equities
too.
O
You
can
see
that
developed,
International
equities
now
fall
below
that
historical
average
that
black
line
in
terms
of
valuations
and
then
in
terms
of
Emerging
Markets,
Equity,
Emerging,
Markets
Equity,
also
look
even
cheaper.
Of
course,
any
asset
can
be
cheap
for
a
reason.
There's
additional
risks
in
investing
outside
the
United
States,
but
relative
to
U.S,
equities
and
relative
to
history,
developed
International
stocks
and
emerging
market
stocks.
Look
less
expensive.
O
We
develop
expectations
for
asset
classes
that
are
outside
the
US.
We
look
at
a
U.S
return,
because
our
investors
are
U.S
clients
taking
a
look
at
page
10
here.
This
is
a
chart
that
I've
presented
for
many
years
and
said
every
year,
you're
getting
less
return
per
unit
of
risk,
but
but
we
do
believe
that
relative
to
2013,
which
10
years
ago,
which
is
the
blue
line
each
asset
class,
is,
is
looking
slightly
more
attractive
in
terms
of
expected
return
per
unit
of
risk
than
it
was
10
years
ago.
O
Our
process
has
sort
of
a
baseline
of
using
mean
variance,
optimization,
which
is
not
perfect.
You
can
see
that
it
assumes
a
normal
return,
distribution
which
we
know
doesn't
happen
in
practice
and
that
volatility
and
other
factors
are
stable
over
time,
which
is
also
not
the
case,
but
it
is
sort
of
the
best
thing
that
we
and
our
peers
in
the
investment
industry
have
to
sort
of
start
the
asset
allegation
process,
and
then
we
and
then
we
layer
on
it.
O
O
We
want
to
show
you
all
of
the
information
that
you're
deciding
on,
but
unfortunately
that
requires
putting
a
lot
of
numbers
on
one
slide
and
they
get
quite
small.
If
you
take
a
look
at
the
top
line
here
and
the
left
column,
so
the
left
column
is
the
current
asset
allocation
for
the
plan,
which
has
served
you
quite
well.
We
look
at
sort
of
as
a
baseline,
a
split
between
growth
assets
and
then
income
and
diversification
assets.
O
Most
of
our
clients
need
to
allocate
at
least
half
of
their
assets
to
growth
oftentimes
much
more
in
order
to
meet
your
Actuarial
assumed
rate
of
return
so
that
you
can
pay
benefits
over
time.
So
we
estimate
that
your
current
allocation
has
about
72
percent
of
its
assets
in
growth
type
assets,
and
that
includes
everything
in
the
growth
category,
except
Emerging,
Markets
bonds
and
high-yield
bonds,
and
then
we
add
in
core
real
estate,
which
is
a
growth
asset
as
well.
O
So
we
look
at
mix
a
which
has
the
same
mix
of
growth
to
income
and
diversification.
The
difference
for
mix
a
is
that
it
takes
three
percent
out
of
U.S
equity
and
puts
it
into
developed
markets.
Equity
I
just
talked
about
how
non-us
stocks
look
a
bit
more
attractive
relative
to
history
and
valuations
than
us.
So
that
is
one
option
for
you
there.
O
Another
option
here
is
Mix
B,
which
would
do
the
same
thing
in
terms
of
Shifting
assets
from
U.S
Equity
to
developed
markets
Equity,
but
would
also
put
an
additional
percent
in
absolute
return:
When
I
Was
Here.
At
the
meeting
a
month
ago.
We
got
some
questions
about
why
there
were
certain
assets
that
had
actually
done
really
well
during
2022,
when
bonds
and
equities
were
both
falling.
Those
sort
of
absolute
return,
hedge
funds
or
risk
mitigating
hedge
funds-
that
provide
some
diversification
and
did
well
in
2022.
O
That's
what
falls
under
that
absolute
return
bucket
and
we
get
an
extra
one
percent
from
U.S
equity
in
Mix,
B,
MC
C
was
added
at
the
request
of
the
investment
committee,
and
so
a
difference
here
is
that
it
has
a
little
bit
less
in
equities.
You
can
see
it
has
three
percent
less
in
U.S
Equity,
one
percent
less
in
developed
markets
non-us
and
one
percent
less
in
Emerging
Markets
equity,
and
then
it
also
has
no
long-term
government
bonds
and
it
puts
those
assets
into
short-term
investment
grade
bonds.
O
I
mentioned
how
the
yield
curve
had
changed
and
short-term
rates
had
gone
up.
So
there
was
some
discussion
at
the
investment
committee
over
whether
or
not
being
able
to
take
advantage
of
more
money
into
investment
grade
bonds
would
be
a
good
strategic
move
or
whether
it
made
sense
to
just
do
that
on
a
tactical
basis.
Should
the
the
investment
committee
and
board
be
interested,
but
we
added
mix
C
to
show
that,
on
a
strategic
basis,.
B
was
not
a
one-time
thing.
It
was
a
long-term
strategy
where
we
would
accumulate
money
and
then,
during
a
recession,
we
have
some
triggers
or
during
any
downturn,
but
because
kova
downturn
was
unusual
with
triggers
that
were,
but
then
in
which
of
these
buckets
is
that
money
that
we're
eventually
going
to
put
in
the
market?
Is
that?
Where
is
that
salted
way?
Is
that
in
the
absolute
return
bucket?
Where
is
it?
What
bucket
does
that
money
come
from
so.
B
B
O
Say
I
mean
we
wouldn't
recommend
making
changes
frequently
just
given
trend
transaction
costs.
If
we
did
see
another
huge
market
downturn,
then
that
would
trigger
a
new
asset
allocation
review
and
I
think
at
that
time.
Based
on
what
had
triggered
the
downturn,
we
would
show
you
different
options
for
taking
money
in
or
out
objects.
B
So
let
me
try.
I
was
not
I
I'm
on
the
investment
committee
every
now
and
then
because
they
need
a
warm
body.
I
saw
Christ.
You
know
that's
true,
so
the
idea,
let
me
make
sure
I,
understand
the
fences
bulk
history
of
these
triggers
and
we're
always
watching.
We
hit
a
trigger.
We
will
convene
with
you
and
the
staff
and
the
investment
committee
will
say
if
I
understand
what
we're
saying
is.
You
know,
there's
a
lot
of
liquidity
here.
B
B
O
Really
for
several
years
before
that,
there
had
been
a
lot
of
money,
specifically
in
short-term
investment
grade
bonds.
So
you
can
see
that
the
current
asset
allocation
has
a
zero
percent
Target.
It's
a
short-term
investment,
great
bonds.
So
in
early
2020,
the
committee
and
then
the
board
met
pulled
that
money
out
of
short-term
investment
grade
bonds
and
put
it
into
the
market.
N
Yeah,
if
I
can
add
to
that
so
so
we
have,
as
Laura
pointed
out,
we
use
a
functional
asset
allocation
right,
growth,
low
beta
and
other
another
is
really
some
inflation
protection
and
some
bonds
there.
So
the
idea
is
really
that
we
need
some
amount
of
growth
exposure,
because
we
have
a
hurdle
rate
which
is
between
six
and
a
half
and
seven
percent.
So
we
need
some
amount
of
growth
assets
at
any
point
in
time,
because
we
are
long-term
investors
and
we
need
to
hit
that
discount
rate.
N
Having
said
that,
there
will
be
times
in
the
market
when
the
Market's
very
expensive
and
we
can
toggle
between
growth
and
low
beta
so
going
into
March
2020.
We
were
an
extreme
outlier,
none
of
our
plans.
We
had
almost
30
to
35
percent
of
Assets
in
low
beta
and
and
that
was
spread
between
absolute
return
and
cash
cash
equivalence.
So
that
was
a
pretty
significant
bet
that
we
took.
Of
course,
we
didn't
anticipate
the
pandemic,
but
we
thought
assets
were
overvalued.
N
N
We've
sort
of
dialed
back
risk
over
the
last
couple
of
years,
a
little
bit
we've
tweaked
at
the
edge,
and
we
said
we
don't
need
as
much
in
growth,
Assets
Now
that
we've
done
very
well
and
so
we've
sort
of
dialed
back
a
little
bit
by
a
percent
or
two
and
gone
back
to
low
beta.
But
nowhere
close
to
where
we
were
before.
B
So,
just
so
I
guess
you
so
look.
I
really
am
a
knucklehead
when
it
comes
to
the
dance.
But
if
I
understand
what
Vince
was
thinking,
if
we
had
the
political
willpower,
we
would
probably
put
10
of
our
money
in
something
liquid
and
the
rest
in
the
stock
market,
because
over
any
20
30
40
year,
Horizon,
which
we're
talking
about
the
stock,
the
U.S
stock
market
outperforms
everything
else,
because
in
one
of
the
political
willpower
and
so
I
think
Vince's
idea
was
yes,
but
that
cycle
is
nonetheless
real
right.
B
We
I'm
an
old
man,
you
know,
David,
you've
got
some
gray,
hair
I
mean
we've
seen
recessions
and
you
can
bet
there
will
be
a
recession
and
a
boom
and
a
recession
boom,
and
so
you
kind
of
want
to
buy
low
and
sell
high
and
because
we're
we
have
such
long
time
frames.
We
can
play
that
game,
right,
Laura
and
and
and
and
Laura's
beaming,
because
we
made
hundreds
of
millions
dollars
playing
what
was
in
essence,
a
really
stupid
game
right.
O
O
So
then
we
have
a
variety
of
other
types
of
analysis
to
show
you
as
well.
We
look
at
your
asset
allocations
compared
to
peers.
There
was
just
some
discussion
over
how
you
all
looked
relative
to
peers
going
into
the
move
to
put
more
in
growth
right
now.
The
plan
is
right
around
the
peer
total
Equity
allocation.
Take
these
numbers
with
a
grain
of
salt,
because
they're,
self-reported
and
everybody
classifies
their
Assets
in
a
different
way.
O
But
we
see
here
a
total
Equity
allocation
of
43
percent,
which
is
median
I,
assume
that
these
plans
are
mostly
reporting
public
Equity,
since
they
have
other
categories
for
Alternatives
and
so
the
highest
Equity
option.
The
current
and
mix
a
that
you're
looking
at
have
a
42
percent
public
Equity
allocation,
so
you're
still
right
around
peers,
maybe
very
slightly
Below
in
terms
of
public
Equity.
If
you
look
at
private
equity
and
the
median
here
is
13,
your
buyout
current
allocation
and
Venture
Capital
equals
exactly
14
or
I'm.
O
Taking
a
look
at
mean
variance,
optimization
based
risk
analysis.
So
this
uses
the
optimizer
and
the
expectations.
You
can
see
the
differences
between
the
different
asset
allocations
and
you
can
see
generally
there's
a
trade-off
between
the
severity
of
the
worst
case
returns
or
the
probability
of
experiencing
a
lower
probability
of
reaching
your
assumed
rate
of
return
and
that's
sort
of
the
risk
return
trade-off.
That
we'd
expect.
O
Looking
at
historical
negative
scenario,
analysis!
That's
analysis.
So
this
is
not
based
on
makita's
expected
returns
or
volatilities.
This
is
based
on.
What's
actually
happened
to
different
asset
classes
in
different
Market
shocks.
Historically,
so
you
can
see
that
mix
C
would
protect
by
about
a
percent
percent
and
a
half
in
most
most
scenarios
relative
to
the
current
mix,
given
the
higher
Bond
exposure
and
less
exposure
to
growth
on
the
positive
side,
you
see
that
trade-off.
O
Then
we
look
at
different
stress
testing
scenarios,
so
increases
in
interest
rates
and
spread
widening
in
the
high
yield,
Market
or
dollar
gains
and
U.S
Equity
declines
here
so
again,
you
know
we
see
what
we
would
expect,
based
on
the
current
mix,
being
sort
of
the
growthiest
and
mixes
A
and
B
being
slightly
less
growthy
down
to
to
mix
C,
having
more
exposure
to
bonds
and
a
bit
less
to
growth.
So
if
we
look
at
the
positive
side
of
that,
you
see
the
same
trade-off.
O
So
if
U.S
equities
were
to
rise
by
a
huge
amount,
the
current
would
do
the
best
I'll
point
out
that
mixes,
A
and
B
would
be
would
do
better
here
if
the
trade
weighted
US
dollar
was
to
decrease
in
value,
so
we're
pretty
historically
High
values
for
the
US
dollar.
It's
quite
strong.
It's
Fallen
a
little
bit
in
the
past
couple
months,
but
I
know
if
you're
planning
some
summer
travel
somewhere
outside
the
United
States.
O
O
O
We
also
look
at
economic
regime
management,
which
is
a
type
of
analysis
that
Makita
developed,
because
we
were
thinking
about
well
we're
not
really
specifically
concerned
about
interest
rate
movements
or
inflation
movements
unless
the
Market's
not
expecting
them
and
they're
a
surprise,
because
that's
when
it
really
impacts
different
different
types
of
assets,
and
so
we
look
at
sensitivity
of
the
different
portfolios
on
page
21
to
types
of
shocks.
A
growth
shock
would
be
a
good
thing.
We
have
higher
Equity
returns
than
we
would
expect.
O
Inflation
shock
is
typically
okay,
if
there's
also
growth,
it's
a
negative
thing.
If
we
have
stagflation
and
we
have
low
growth
and
high
inflation
and
then
in
terms
of
an
interest
rate
shock,
you
can
see
that
the
global
60
40
would
have
a
negative
return
in
that
environment
is
particularly
sensitive
because
it
has
40
percent
in
bonds,
whereas
the
others
have
less
I
will
point
out
that,
in
terms
of
a
systemic
risk
environment,
so
systemic
risk,
we
think
of
as
system-wide
risk.
Look
like
the
global
financial
crisis.
O
Subprime
mortgage
crisis,
the
pandemic
mix
C,
would
be
expected
to
to
protect
a
bit
relative
to
other
allocations
in
a
systemic
risk
environment,
mainly
because
short-term
bonds
tend
to
hold
up
well,
treasuries
tend
to
do
well
in
those
types
of
environments,
so,
in
summary,
we
do
think
that
your
current
asset
allocation
is
quite
reasonable.
We
would
have
let
you
know.
You
know
before
this,
this
annual
asset
allocation
review,
if
we
thought
it
had
issues,
it
served
you
quite
well,
but
annually
we
do
want
to
look
at
other
options.
O
Q
Q
Q
Now
this
you
know
so
the
the
thing
about
C
is:
maybe
you
can
reduce
risk
now
and
you
know
potentially
add
to
it
later,
but
I
think
counter
to.
That
was
the
fact
that
you
know
the
market
is
already
down
somewhat
right.
Maybe
this
is
not
the
end
of
the
current
sell-off,
but
it's
not
the
beginning
of
the
sell-off
either.
So
that
was
counter
to
that
and
the
second
is
you
know
this
is
a
tactical
decision.
Q
Would
we
be
agile
enough?
You
know
to
kind
of
maybe
come
back
to
growth
and
and
one
of
the
points
which
Andrew
actually
you
know
raised
was
in
the
past.
The
board
has
done
a
poor
job
except
the
2020
case.
Right
where
we
went
to
lower
risk
and
then
never
came
back,
always
kind
of
thinking.
Well,
we
had
lower
risk
and
the
market
is
up
even
more.
Is
it
too
late?
Q
Q
You
know
which
is
about
the
you
know
the
part
of
the
you
know
the
short-term
bonds,
if
you
will
so
about
three
percent
and
I,
think
the
the
staff
have
some
flexibility
within
a
few
percent,
I
guess
in
terms
of
maybe
even
making
more
of
a
switch
if
they
think
it's
advisable
right.
So,
at
the
end
of
the
day,
the
you
know,
the
IC
decided
that
it's
better
to
stay
with
our
long-term
Focus,
which
is
that
we
want
that
growth.
Q
B
K
B
That
we
jumped
in
at
the
covid
shock-
let's
say
we
jumped
in
what
about
a
year
ago,
went
to
the
recession.
When
did
the
market
Fall
or
was
that
early
22.
a
little
over
a
year
ago?
Yeah?
So
if
I
understand
what
you're
kind
of
saying
is
Sloan
steady
wins
the
race
Drew
Vince
is
our.
Our
law
is
in
staff
strategy.
B
Is
we
will
buy
low,
well
we're
still
low,
so
we
will
hold
we
bought
and
we
will
sell
high,
and
if
the
median
time
to
recession
is
five
years,
then
probably
the
median
time
from
the
beginning
of
the
recession
to
the
peak
is
for
four
years.
You
got
to
write
it.
So,
probably
sometime
in
20
26.,
you
guys
will
come
back
and
say
Now's
the
Time
to
reduce
U.S
Equity.
Let's
reap
those
gains
and
get
set
to
play
this
game
again.
That's
kind
of
what
you're
saying.
Q
Yeah
possible-
and
actually
you
know
if
you
go
back
to
discussions
we
had
last
year,
we
did
think
about
reducing
risk
somewhat
and
I
think
maybe
in
the
future,
maybe
we'll
be
better
prepared.
Prabhu
and
the
team
have
gone
through
some
work
to
see.
Can
we
do
some
tail
risk
hedging,
Etc
or
find
managers
that
can
do
some
of
that
for
us,
so
in
a
future
environment,
when
the
market
is,
you
know,
maybe
very
high,
and
the
plan
has
done
extremely
well
as
we
did.
B
B
The
median
plan
in
California
fell
below
seven
percent
discount
rate,
the
millions
of
what
six
point
nine
percent
I
think
billboarded.
So
we
actually
are
not
far
below
median
now
and
I
look.
This
is
just
my
opinion
right.
My
opinion
is
that
we
should
Target
to
return
median
because
I
don't
like
to
explain
the
conferences
why
I
suck?
Oh,
you
have
the
worst
return.
B
No,
we
want
the
worst
returned
and
then
we
will
subtract
off
the
historical
and
predictable
Alpha
and
that
will
yield
a
beta
and
based
on
what
Peru's
been
saying
and
Laura's
been
helped
delivering.
That
beta
would
probably
even
substantially
lower
than
what
we
have
now.
If
we
can
sustain
the
alpha
right
Laura,
so
we
might
have
a
plan
that
is
so
low
in
risk
that
we
don't
feel
pain
during
a
recession.
And
yet
we
go
to
conferences.
We
got
the
best.
B
P
P
P
I'm
somewhat
familiar
with
mean
variance
optimizations,
just
because
I
did
a
lot
of
that
in
my
past
career
and
the
one
thing
that
you
highlighted,
it
really
resonated,
but
there's
two
things
that
resonate
with
me
with
MBL
number:
one
expected
return
correlations
are
all
you
know
it's
an
art
rather
than
science,
so
you
know
that
you
know
could
be
garbage
and
garbage
out.
So
you
have
to
take
everything
green,
the
shawl,
but
the
second
thing
that
resonates
with
me
is
the
underestimation
of
large
event
risk.
You
know,
that's
definitely.
P
The
tail
events
are
definitely
not.
You
know
factored
into
mean
variance
optimizations
and
that's
why
I
kind
of
like
a
little
bit
more
fixed
income,
but
with
the
flexibility
of
giving
Prabhu
the
ability
to
take
it
from
fixed
income
or
negative
for
low
correlation.
Actually
I
shouldn't
say:
fixed
income,
low
beta
I
should
just
say,
low
beta
bucket
and
put
it
back
into
growth
bucket
whenever
he
thinks
that
there's
an
opportunity,
you
know
that's
my
thoughts.
N
But
yeah
so
look
I.
Think
to
you
to
your
point:
Dave.
We
do
have
flexibility,
so
the
IPS
says
within
within
10
for
each
of
the
buckets
that
we
can
actually
move
now.
We've
we've
shied
away
from
exercising
that
in
the
past
generally,
because
and
I
know
again,
you
come
from
a
tactical
shop
and
you
know
tactical
asset
allocation
is
not
easy
to
add
value,
doing
things
tactically.
N
So
what
we've
tried
to
do-
and
we
got
this
this
ability-
maybe
a
couple
of
years
ago-
maybe
I,
don't
know
when
the
IPS
was
modified,
but
we
have
exercised
it
indirectly,
as
trustee
Menon
was
saying
so.
The
IC
chair
and
I
discussed
this
and
I
think
we
may
have
even
presented
this
to
the
IC
last
year,
where
we
actually
took
the
liberty
of
saying
the
proxy
does
not
have
to
be
in
the
Russell
3000
instead,
we'll
put
it
in
short-term
tables.
N
So
whatever
you're
seeing
here
in
growth
assets,
you
can
reduce
that
by
about
three
percent,
because
whatever
is
supposed
to
be
in
the
proxy
for
private
assets
is
actually
in
t-bills
right
now.
So
the
essentially,
what
we've
done
is.
We've
changed
the
proxy
from
being
the
Russell
3
for
private
assets
to
t-bills,
right
and
yeah
yeah,
so
so
that
so
the
growth
exposure
is
a
little
bit
lower.
N
Now
I
can
see
as
a
fixed
income
person
why
you
would
like
bonds,
especially
now
for
two
reasons
and
I
I'm
sort
of
with
you
on
that.
The
front
end
of
the
curve
has
never
been
this
attractive
in
a
long
long
time,
right
I
mean
I,
just
love
the
fact
that
you
can
get
five
percent
on
on
a
CD
or
a
six
month.
N
T-Bill
right,
I,
hear
you
and
on
the
the
longer,
on
the
longer
end
of
the
curve,
two
I
kind
of
like
it,
because
especially
I
mean
right
now,
eels
have
sort
of
gone
down
a
bit,
but
if
eels
go
back
up
and
if
we
are
going
to
have
a
recession
next
year,
I
mean
that's
what
the
yield
curve
is
predicting.
Then
the
long-term
bonds
will
do
well.
I
mean
you
want
a
little
bit
of
duration
right.
N
So
so,
for
those
reasons
and
I
think
those
are
tactical
reasons
right:
I
I
do
like
fixed
income
and
I.
Think.
That's
probably
one
of
the
reasons
why
I
don't
want
to
put
words
into
her
mouth
Sunita
actually
recommended
mixi
in
some
ways,
and
but
we've
we've
discussed
this
a
lot
and
we've
sort
of
come
to
the
conclusion,
as
a
group
that,
at
least
at
the
IC
level
right
that
a
this
says,
there's
several
things
here.
N
One
is
that
do
we
have
the
ability
to
time
the
market
and
we
April
of
last
year,
I
think
March
or
April
of
last
year
we
had
extensive
discussions
at
the
IC
about
trying
to
protect
the
downside.
You
know
and
using
option
strategies
and
both
this
board,
as
well
as
this
IC,
as
well
as
the
federator
IC,
came
to
the
conclusion
that
it's
not
worth
paying
Insurance
to
protect
downside
on
the
portfolio,
so
we
shied
away
from
it
and
to
your
other
point,
I
think
I.
N
Yes,
there
is
a
lot
of
growth
exposure
here
and,
as
Laura
pointed
out,
our
expected
returns
look
very
attractive
now,
thanks
to
what's
happened
in
the
market
in
the
last
12
months.
But
if
you
look
at
any
prior
year
asset
allocation,
the
same
combination
of
assets
would
have
given
a
much
lower
expected
return
right.
So
so,
for
those
reasons
again,
I
don't
want
to
speak
for
the
IC,
but
I
think
we
decided
we'll
stick
to
the
current
asset
allocation.
D
I
like
to
believe
that
I'm
far
away
from
Bond
bias
after
a
negative
interest
rate
environment,
but
but
you
know
I
just
had
a
few
thoughts
around
this
I
think
you
know,
philosophically
it
seems
perhaps
I
don't
have
enough
history-
that
the
the
10
leeway
that
was
given
to
the
the
team
practical
purposes.
That's
my
impression
is
that
fair.
D
Okay,
so
so
I
mean,
if
I
were
to
as
Drew
tries
to
encourage
all
of
us
to
be
at
a
hundred
thousand
feet.
The
I
think
that
we,
we
still
have
a
philosophical
discussion,
perhaps
that
we
could
have
at
the
investment
committee,
which
is
you
know
clearly
in
March
2020.
It
was
a
great
opportunity
to
fix
a
strategic
asset
allocation.
Perhaps
I
mean
in
hindsight
mistake
which
was
you
know
as
I
understood
further.
D
It
was
less
than
50
growth,
which
seems
very
low
for
a
plan
like
this,
and
so
I
mean
having
done
that.
I
think
we're
all
human
beings
so
and
we
don't
want
to
sort
of
stay
with
that
bias
that
it's
very
hard
to
risk,
add
risk
assets.
I
think
it
would
behoove
us
to
respond
to
big
changes
in
in
what's
happening
around
us
and
and
the
way
I
see
it
is
the
last
12
to
15
months
after
after
15
years,
we
are
finally
having
some
mean
reversion
of
interest
rates.
D
There's
going
to
be
sort
of
I
know,
models
are
a
little
bit
agnostic
to
this,
because
your
horizon
is
much
longer.
Assumptions
have
gone
through
these
major
Cycles,
but
the
I
mean
we
could
go
on
philosophically
in
a
few
different
ways
and
I
know
I'm
on
the
soapbox.
Sorry
bear
with
me,
you
know
I
think,
there's
a
concept
of
strategic
versus
static
right,
which
is
we
could
say
that
our
static
allocation
to
growth
is
always
70
and
30
percent
low
bid
or
something
like
that.
D
It's
it's.
You
know
it's
debatable
and
to
be
use
that
bucket,
along
with
the
cash
equivalent
bucket,
which
I
know
there's
some
constraints
to
the
cash
equivalent,
because
we
do
like
to
plan
for
our
immediate
needs
to
be
able
to
use
that
bucket
better
for
a
forum
for
a
time
when
valuations
would
present
themselves
now.
I
would
caveat
that
between
the
time
we
spoke
on
the
the
last
couple
of
ICS,
and
now
the
market
is
rallied
a
lot.
So
the
other
last.
D
Make
is
the
complexity
of
this
exercise
is
the
friction
of
timing
right
we
meet
once
a
month.
The
IC
meets
once
in
two
months,
which
is
why
I
think
that
maybe
philosophically-
and
this
is
probably
a
discussion
for
IC-
we-
how
do
we
Empower
Prabhu-
to
make
those
decisions
a
little
bit
more
dynamically
is
what
I
would
sort
of
suggest.
N
One
one:
let
me
just
Dinesh:
we
do
have
three
percent
of
the
proxy
in
tables.
Okay,
thank
you.
I
didn't
misspeak.
So
one
thing
to
keep
in
mind
when
we
look
at
the
current
asset
allocation
is
growth
is
not
71,
but
it's
68..
So
when
you
look
at
current
versus
mix
C,
it's
not
that
different
by
the
way,
I'm
very
comfortable
with
all
the
mixes
right,
I
mean
they're,
not
very
different,
and
thanks
to
what's
happened
with
the
yield
curve
and
expectations,
you
can
still
see
the
10
and
10
20
year.
N
Numbers
are
a
pretty
pretty
attractive
in
any
of
these
scenarios
and
and
I
would
just
add
the
point
that
being
static.
The
new
word
that
you've
used
is
also
being
active
because,
in
the
face
of
a
ton
of
information
and
I,
think
a
bunch
of
us
here
come
from
very
active
backgrounds
and
asset
management
backgrounds,
and
it's
it
takes
a
lot
of
Courage.
It
takes
a
lot
of
effort
to
digest
a
lot
of
information
and
say
I'm
actually
not
going
to
move,
and
that
to
me
is
also
a
very
active
decision.
O
One
other
point
I
just
mentioned-
is
that
you
know
you
all
have
the
13
in
cash
and
equivalence,
whereas
the
peer
median
allocation
on
the
far
right
to
cash
is
one
percent.
So
there's
already,
you
know
a
significant
difference
from
peers
in
terms
of
those
those
cash
equivalents
and
the
amount
there
putting
more
in
short-term
investment
grade,
bonds,
I
think,
would
be
slightly
out
of
line
with
peers.
N
N
Allmark
has
told
us
time
and
again,
and
we
said
how
do
we
actually
take
more
risk
on
the
growth
side,
but
at
the
same
time,
how
can
we
sleep
at
night,
properly,
right
and
and
that
and
and
we're
not
the
first
to
do
it
by
the
way?
So
this
is
by
no
means
an
original
thought.
There
are
some
other
plans
have
done
it,
maybe
not
to
the
extent
of
five
years.
So
we
did.
Some
Makita
did
some
analysis
and
said
every
time
there's
a
drawdown.
N
How
long
does
it
take
to
go
back
up
to
that
starting
point,
and
it
seemed
like
five
was
about
the
right
number,
and
so
we
said
we'll
put
aside
five
years
worth
of
humanized
cash
flow,
which
will
actually
allow
us
to
take
that
exposure
and
growth
assets.
And
even,
if
there's
a
deep
drawdown,
we
don't
need
to
indulge
in
a
fire
sale.
So.
D
P
J
N
P
E
So
yeah
I
I
do
want
to
support
what
Sunita
said
about.
Maybe
using
the
word
static,
you
know
I
I,
don't
like
labels.
On
the
other
hand,
I
fully
agree
that
we
have
to
be
long-term
and
strategic
and
I.
Think
going
to
me.
The
most
important
thing
is
trying
to
determine
what
are
the
big
events
you
know
is
it?
E
Is
it
this
change
in
the
yield
curve,
or
is
it
the
change,
rapid
change
in
interest
rates,
and
my
view
was
to
maybe
come
up
with
metrics
at
some
point
that
would
allow
the
staff
to
indicate
okay.
This
is
something
that's
big
coming
and
we
can
see
it
so
that
way,
it's
not
reacting
to
every
single
Market
swing,
so
I
I
think
there
is
some
recognition
of
what
are
big
events
and
when
you
can
take
those
actions.
B
Hands,
let
me
find
a
comment:
I
get
gray,
hair
I
was
a
young
man
when
I
joined
this
board
and,
ladies
and
gentlemen,
we
have
invented
perpetual
motion.
We
have
created
a
goose
that
lays
golden
eggs
and
we
hired
him
he's
not
here
by
accident,
he's
here
doing
exactly
a
plan
that
Laura
invents
Cutler.
When
did
you
join
us?
2012
2013.
B
G
D
D
B
The
way,
no
there's
actually
nothing
wrong
with
that,
and
this
is
probably
the
most
distant
discount
rate
of
the
two
most
important
decisions
we
make.
So
it's
actually
good
to
hear
dissension,
but
you're.
Just
anxious,
like
a
little
dissension,
not
like
I
think
we
should
all
put
it
under
a
mattress
and
go
to
Brazil
right.
So
yeah.
I
N
N
B
M
D
N
No,
we
so,
since
we
are
not
making
so
the
on
the
healthcare
side,
we
don't
have
any
private
assets
right,
so
we
just
use
public
assets
and
unless
there
are
big
shifts
on
the
pension
side,
we
don't
change
the
healthcare
asset
allocation,
and
so
so
the
clarification
here
was
that
we
would
keep
Health
Care
as
is,
and
the
return
differential
is
really
because
of
some
of
the
underlying
weights
there.
But
we
can.
N
B
O
Do
you
want
it
on
the
health
care?
You
know,
there's
certain
asset
classes
like
private
Equity
they're,
just
in
public
Equity
or
private
debt,
that's
in
public
bonds!
So
you,
you
generally
have
an
environment
where,
if
markets
are
up
the
healthcare
trust
is
up
more
because
it's
just
more
beta,
more
exposed
to
the
market.
It
doesn't
have
the
diversification
of
the
illiquid
assets.
I.
B
Well
and
you're
you're
watching
the
second
act
of
a
for
act
play
because
over
time
we
are
giving
our
guys
more
and
more
the
guys,
gals,
more
and
more
latitude
and
in
fact,
we're
going
to
have
a
meeting
of
the
ad
hoc
Venture
Capital
committee
and
next
to
me,
will
be
how
much
latitude
should
we
give
them
and
I
think.
The
overall
theory
is
when
we
kind
of
get
to
the
Terminus
of
this
Prabhu.
B
K
N
Peru
all
right,
thank
you,
so
I,
just
I
guess:
we've
done
with
this
agenda
item
I
do
want
to
acknowledge
the
work
done
by
our
Consultants
Makita
and
Veris,
and
they
are
two
of
the
best
consultants
in
the
business
I'm
going
to
embarrass
them
here
a
little
bit.
We
have
an
excellent
working
relationship.
The
Consultants
do
report
to
the
board
and
you
know
board
trustees
are
often
reach
out
to
Consultants,
and
but
we
have
an
excellent
working
relationship.
N
We
work
as
a
team
and
I
really
value
the
input
of
both
Makita
and
Varys
and
I'm
going
to
embarrass
Laura
a
little
bit
further.
Since
you
asked
her
if
she
had
four
kids,
she
was
in
a
meeting
in
Sacramento
yesterday,
flew
back
home
at
6,
30
cooked
dinner,
put
her
kids
to
bed
and
she's
here
this
morning.
So
sorry,
Laura
I
had
to
I
mean
this
is
just
you're
a
superwoman
that.
N
K
I
I
We
have
56.6
in
growth,
which
is
all
in
public
Equity
as
Makita
indicated,
and
we
have
5.4
and
short
team
IG
bonds
and
0.71
in
cash
and
the
other
37
is
split
between
core
real
estate,
Commodities
investment
grade
bonds
and
long-term
government
bonds.
So
the
information
is
there
I.
Think
prabo
indicated
the
IC
can
have
this
discussion,
but
no
changes
to
that
allocation
based
on
the
fact
that
you're
not
making
any
changes,
see.
T
T
Bara
is
the
risk
data
provided
and
is
paired
with
virus
in
February,
the
investment
committee
reviews
staff's
recommendation
to
renew
their
contracts.
All
three
contracts
for
one
year
and
staff
will
conduct
an
RFP
during
the
during
the
next
fiscal
year
and
bring
a
recommendation
to
the
boards
in
second
quarter
of
2024..
B
So
there
was
a
master
plan
when
we
hired
Prabhu
and
that
Master
Plan
indicated
that
at
the
asymptotic
level,
which
are
pretty
close,
you
know
your
staff
is
mostly
filled
out
now.
Right,
mostly
bad
Consultants
would
be
about
a
third
of
the
payroll
if
the
accounting
consultants
and
what's
your
total
payroll
to
the
low
1
million
plus
range
now.
B
The
total
of
these
these
three
contracts
plus
says
payroll,
is
about
1.6
or
seven,
and
this
is
a
little.
This
is
almost
exactly
a
third
of
that
purpose,
so
I
would
say,
as
we
go
on,
this
is
probably
stable:
the
amount
of
services
you're
getting
from
them
and
your
staff.
This
is
about
the
asymptote
right.
B
N
Yeah
I
mean
I,
think
I.
Let
me
let
me
add
this
so
I
mean
we
we're
always
looking
for
cost
savings.
I
want
trustees
to
know
that
and
we
negotiate
hard
with
our
investment
managers
and
with
our
Consultants
when
we
you
know
when
we
came
up
with
these
contracts,
and
so
we
will
continue
to
do
that
and
we
will
continue
to
cut
costs.
But
to
your
point,
Drew
I
think
these
are
very
essential.
Services
having
an
investment
consultant
and
a
risk
consultant,
I
think
our
systems.
N
B
B
So
we
pay
about
1.6
or
1.7
million
dollars
a
year
for
a
group
that
is
generating
on
average
50
to
60
million
dollars
of
alpha.
So
why
I'm
going
to
say
this
and
I
understand
you?
Are
the
responsible
one
and
I'm,
just
a
child
I
really
don't
care!
How
much
you
charge
I,
don't
really
care
how
many
of
these
people
they
have
dude.
If
that
is
what
the
Golden
Goose
needs
to
eat,
to
lay
the
golden
eggs,
bring
it
on
right.
That's
my
opinion.
Floors
open
question.
T
H
B
Is
a
disembodied
voice
in
this
room?
Thank
you.
Thanks
man
Jack,
that's
great!
Let's
go
ahead
then,
and
take
them
one
time
hang
on.
Look
at
my
iPad
back
all
right,
so
items
three
see:
do
I,
have
a
motion
to
approve
the
door
motion
to
prove
McKee
this
contract
item
3C
so
move
so
much
of
a
second
second
second,
oh
who's,
that
who
said
second
Quan,
oh
Quant,
sorry,
Dave
I
was
looking
the
other
way,
all
in
favor
aye
all
right,
we're
moving
on
to
3D
the
contract
for
Vera.
B
J
B
B
B
I
Yes,
yeah,
yes,
wake
up!
Thank
you,
no
I,
just
I,
don't
I,
don't
have
it
in
the
screen.
Yet
so
I
haven't
seen
what
item
number
four
is:
oh
there
you
go
so
thank
you.
Mr
chair.
You
may
recall
that
at
your
last
board,
meeting
I
made
a
presentation
for
the
annual
administrative
budget
which
you
bore
approved.
Obviously
you
were
absent
that
day,
Mr
chair,
but
the
board
did
approve
the
the
budget
at
the
time.
I
I
also
mentioned
that
the
process
every
year
is
such
that
we
actually
communicate
with
the
mayor's
office
on
our
requests
in
terms
of
personnel
and
this
year
our
budget
requires,
for
personal
purposes,
requested
three
new
positions
net
and
so
I
I
made
the
point.
I
was
still
waiting
to
hear
back
from
the
from
the
mayor's
office.
I
They
were
in
support
of
moving
forward
with
two
of
them,
which,
after
discussion
with
staff,
we
feel
positive
and
confident
that
we
still
be
able
to
perform
our
core
duties
and
we
are
going
to
be
able
to
perform
all
the
operations
and
requirements
for
the
coming
fiscal
year.
So
I'm,
okay,
with
moving
forward
with
two
of
the
three
positions
that
we
requested,
we're
not
going
to
make
a
presentation
for
the
full
budget.
There
are
three
attachments
in
your
iPad
two
of
the
documents.
I
They
were
just
adjusted
and
updated
to
reflect
the
change
on
the
numbers
and
for
presentation
purposes.
The
original
PowerPoint
hats
on
20
slides
this
particular
PowerPoint
is
limited
just
to
the
revision
to
personal
expenses,
because
that
is
all
we
are
updating
and
changing
on
the
request.
So
with
that
on
this
page,
this
slide,
this
is
the
original
request.
It
included
4
million
I'm.
Sorry,
let
me
go
back
to
the
original.
Thank
you
Benji
or
whoever
is
driving
this.
I
Is
that
correct
so
of
the
total
plan
assets
that
we
have
about?
60
percent
belong
to
police
and
fire,
and
forty
percent
to
fight
the
radius.
So
I
wanted
to
make
that
point.
Every
other
Personnel
expense
in
the
in
there,
which
you're
going
to
see
an
orchard
is
50.
50
is
set
for
investment
staff,
so
again
original
request:
4
million
839
000.
I
If
we
can
move
to
the
next
Slide,
the
the
new
revised
request
for
personal
services
is
four
million
seven
hundred
ninety
two
thousand
in
which
makes
a
new
total
of
eight
six
million
824
000.
If
we
go
to
the
next
slide
so
now
the
authorized
positions
is
45.
Originally,
it
read
46
because
we
had
requested
three
positions
to
the
43
that
we
have
now
since
we
are
getting
approved
to
oh,
oh
there
you
go.
Thank
you
Benji.
I
So
one
of
those
positions
was
actually
already
there
and
it
was
an
add-on
delayed.
So
it
doesn't
really
had
a
net
increase
so
of
the
two
Originals
that
we're
gonna
increase
to
45.
Now,
with
the
approval,
we're
only
increasing
that
number
by
one
to
44
instead
of
43,
which
is
actually
split
between
the
two
plans
on
full-time
employee
allocation
per
plan
of
22
per
plan,
so
again
an
increase
from
43
to
44.
I
If
we
can
go
to
the
next
slide,
we
can
actually
show
the
that
was
the
original
org
chart
that
was
proposed
versus
the
revised.
You
can
see
the
positions
that
have
been
when
requested
and
have
been
approved
again
if
we
can
go
back
to
the
original
Benji.
So
that's
the
original
request
and
then
again
to
the
revised
request,
shows
what
are
the
positions
that
have
been
approved
with
the
mayor's
office
and
I
just
want
to
touch
base
on
that
process.
I
I
I
Fortunately,
for
me,
we
have
not
been
in
that
situation
since
I've
been
leading
the
church
at
the
office,
but
I
wanted
to
make
the
point
that
we
have
a
very,
very
cardiac
relationship
and
we
work
well
with
the
city
and
the
budget
office
and
the
Major's
office.
So
I
hardly
support
the
request,
as
is
put
forward
and
I'm
happy
to
entertain
and
answer
answer,
any
questions
that
you
may
have.
Thank
you.
E
I
I
We
use
the
number
one
to
really
on
board
and
provide
education
to
our
new
employees,
but
also
for
projects
that
we
have
to
work
through
throughout
the
year
and
and
the
truth
is
that
we
do
have
vacancies
throughout
the
fiscal
year.
So
in
order
to
it,
takes
some
time
to
be
able
to
fill
those
vacancies.
So
we
also
use
the
retired
rehires
to
to
perform
that
kind
of
work.
Sandra
and
Barbara
I,
don't
know
if
we
have
any
further
comments
on
what
are
the
reasons
we
use
the
retirement
rehires,
no.
E
E
I
J
I
E
I
I
B
But
I
am
a
recognized
expert
in
building
High
function,
teams
pretty
good.
He
walks
on
water
Barbara.
Will
the
world
already
knows
I
think
Barbara
walks
on
water?
Guess
what
Ben,
Benji
and
Sandra
are
superb,
whatever
you
guys
want
ask
for
it.
I
reckon
Harvey,
Maytag
or
sweating
bullets
out
there
we're
talking,
44
people
managing
close
to
5
billion
dollars,
generating
50
million
dollars
here
and
out
performance
and
I.
B
Any
effort
you
make
Roberto
is
to
hire
more
people
to
bring
our
services
up
so
that,
like
our
numbers
they're,
the
best
I
would
like
to
have
the
best
pension
plan
in
the
state
of
California
we're
almost
there
and
now
I,
like
the
best
pension
plan
in
the
nation
and
I.
Don't
think
that's
too
ambitious,
wow,
of
course,
there's
too
ambitious,
but
you
have
to
say
something
so.
I
I
would
urge
us
to
go
and
support
this
Floors
open.
B
I
I
Minutes,
yes,
thank
you.
Thank
you
Mr
chair,
so
I.
As
you
know,
we
actually
move
from
having
remote
meetings
to
in
person
and
I'm
only
saying
that,
because
I'm
trying
to
buy
some
time
because
I
do
have
an
email
from
staff
that
they
provided
to
me
in
terms
of
the
aura
update
and
it
was
easy
when
we
were
remotely
because
I
would
just
have
it
there
and
read
it,
but
today
I
left
it
in
the
office,
but
I
I
found
it
in
my
in
my
in
my
iPhone.
I
I
532
have
been
processed
today,
the
remaining
318
will
be
paid
no
later
than
the
May
pension
payment.
This
is
police
and
fire
that
file
come
through
with
the
Medicare
reimbursement
that
they
entitled
to.
So
again
we
have
processed
532.
We
have
318
to
go.
Thank
you.
Sandra
for
information.
We
had
a
new
senior
benefit
analyst
Amy
Dickinson
that
started
with
our
office
Monday.
I
It
says
here,
April,
1st,
but
I
know.
Monday
was
April
3rd,
sometimes,
staff
staff
does
that
to
see
if
I
make
a
mistake,
but
I
I
fixed
it
there,
so
that
was
good,
so
Amy
I
actually
met
Amy
this
week
and
Amy
welcome
to
the
office.
We
also
have
a
new
benefit
Analyst
at
Sierra
kinoli
Chavez,
who
is
scheduled
to
start
on
Monday
April
17th.
That
is
the
correct,
Day
Sandra.
I
I
Know,
Linda
retired
last
week
and
issela
was
with
us
for
a
few
weeks,
while
Linda
was
still
at
the
office,
and
so
now
Isela
is
all
by
her
Lonesome
and
she's
smiling,
because
she's
having
such
a
wonderful
time
and
I
just
want
to
welcome
one
again
again
Isela.
We
are
I'm
so
thankful
to
have
you
in
the
office
and
thank
you
so
much
and
it's
my
comments.
Mr
chair.
I
B
I
A
B
S
The
cartoons
were
hysterical.
Thank
you
for
that
kept
council,
member
Davis
and
I
awake,
because
the
presentations
were
things
that
we
have
known.
We
come
to
these
meetings
every
month,
I
told
her
that
we
should
probably
have
gotten
a
pass
off
of
that
meeting
last
week,
but
we
were
there
just
like
everybody
else
and
I
want
to
thank
you
for
the
presentations
I
think
it's
really
helpful.
S
Considering
we
have
six
new
council
members
who
don't
have
the
background
in
the
retirement
boards
and
the
decisions
and
how
they're
made
and
and
even
the
amount
of
dollars
we're
talking
about,
but
primarily
for
them
to
understand
the
unfunded
liability
and
the
impact
on
the
general
fund
is
really
critical
as
we're
coming
through
the
budget
process.
So
I
want
to
thank
you
all
for
participating
in
that
and-
and
you
know,
a
refresher
is
always
good
for
for
us.
You
know
I
love
the
I
love
the
little
drawings
it
it
made
me
feel
like.
S
Okay,
stick
figures
are
good.
I
could
do
that.
I
could
do
stick
figures,
as
as
Roberto
said,
we
are
in
budget
session
and
I
I
acknowledge
that
he
got
cut
back
one
staff
person,
but
so
did
I
in
a
task
force.
I
was
trying
to
get
two
staff.
People
funded
that
was
division.
Zero
task
force,
which
is
our
goal,
is
to
reduce
pedestrian
fatalities
on
our
streets.
We
had
65
last
year
way
too
many
and
I
chair
that
task
force,
so
I
was
looking
for
two
staff.
S
It
is
a
difficult
budget
cycle
this
year,
while
we
are
projecting
a
reserve
for
this
year,
it's
a
very
tenuous
reserve
and
next
year
we're
projecting
a
loss
on
Revenue
next
year.
So
we're
very
concerned
about
that.
We're
also
at
a
position
where
we're
really
short
staff
in
all
of
our
departments,
and
we
need
to
make
a
priority
of
hiring
staff
and
compensating
them
well.
Our
priorities
in
funding
this
year
are
Public
Safety,
making
sure
that
we're
hiring
more
police,
more
fire,
more
EMTs.
That's
really
critical!
S
That's
one
of
the
number
one
focuses
of
the
mayor
and
city
council
also
our
efforts
to
reduce
homelessness
and
then
improve
the
quality
of
life
in
our
city.
Those
are
all
huge
budget
items
and
we're
going
to
have
to
look
for
cuts
somewhere,
I,
don't
know
where
the
cuts
are
going
to
come,
except
I've
heard
that
they
may
be
a
proposal
to
reduce
the
cost,
the
cost
of
running
each
city.
Council
District.
We
all
have
our
own
budgets
that
we
manage
like
our
own
small
business
and
we
have
to
stay
within
our
budget.
S
S
S
You
resolved
it
really
quickly
by
an
interpretation
that
Council
recommended
and
was
quickly
responded
to
so
I
I
want
to
commend
this
board
on
how
quickly
you
address
that,
because,
while
it
addressed
it,
it
affected
police
and
fire,
it
had
the
long-term
effect
of
affecting
the
Federated
board
to
or
federal
Federated
employees.
We
just
hadn't
felt
it
yet
as
a
result.
So
I
I
want
to
thank
you
for
that
with
that
I
think
I'm
done
with
my
presentation.
S
Yes,
I
am
so.
If
you
have
any
questions
other
than
can
I
put
in
a
little
announcement,
please,
okay,
this
is
from
my
Council
Office
every
year.
This
is
the
second
year
I've
hosted
an
event
called
music
in
the
valley.
It's
a
free
event.
It's
the
last
Sunday
in
April,
April
30th,
and
it's
a
time
where
we
showcase
performing
bands
and
choirs
from
the
middle
schools
and
high
schools
in
my
district.
So
please
come
we'll
have
food
trucks,
lots
of
things
for
little
kids
to
do
so.
H
Sure
so
this
one
relates
to
the
service
connected
disability
benefits,
as
well
as
with
a
member
who
has
an
alternative,
paying
with
a
separate
account,
established,
suicidro,
and
so
here
we're
seeking
discussion
in
action
for
approval
for
a
proposed
communication
to
the
city
and
in
the
related
bargaining
units
to
seek
clarif
clarification
and
cleaning
up
the
municipal
code.
As
we
discussed
at
the
special
meeting,
the
middle
school
code
was
ambiguous
and
could
be
read
multiple
different
ways.
We
were
able
to
reach
a
conclusion
that
benefited
our
members
in
interpretation
that
was
reasonable.
H
The
internet
benefited
our
members,
however,
her
future
staff
bargaining
units
and
Council,
as
we
all
know,
we
will
all
pass
at
some
point.
We
would
like
to
clarify
that
in
the
municipal
code,
the
intention
of
the
code
and
the
interpretation
that
we
implemented
so
with
that
what
we're
seeking
here
is
approval
from
the
board
to
direct
Council,
to
prepare
a
letter
to
send
to
the
the
city
and
the
respective
bargaining
units
on
this
point.
So.
H
B
C
C
J
R
Yes,
that
is
me
so
normally
this
would
go
to
the
audit
committee
first,
but
because
of
timing,
it's
going
directly
to
the
board.
So
we
apologize
for
that.
The
current
audit
contract
with
Grant
Thornton
expires
at
the
end
of
this
month.
So
an
RFP
for,
let
me
share
for
an
RFP
for
external
Auditors,
was
issued
in
February
and
it
closed
on
March
17th.
We
received
three
proposals:
one
from
MGO,
one
from
uhi
and
one
from
Edie
Bailey,
and
the
only
California
firm
that
was
received
was
MGO.
R
Other
fees
were
a
little
bit
higher
about
10
000,
more
than
per
plan
than
the
other
firms,
but
I
think
it's
because
of
the
cost
of
living.
Like
I
said
they
are
in
California,
the
other
two
firms
are
outside
of
California,
so
they
were
a
little
bit
more.
As
you
can
see,
we
are
requesting
750
000
per
plan
to
cover
all
five
years,
as
well
as
the
two
year,
two
one-year
contingencies
after
that.
C
R
It's
a
little
bit
higher
Now
Grant
Thornton
was
at
the
last
audit.
It
was
around
85
000.
So
if
you
can
see,
2023s
is
around
93
000..
So
it's
a
little
bit
higher,
but
I
know
that
Grant
Thornton
had
to
you
know
they
had
to
limit
it
at
85
000,
but
they
were
definitely
incurring
a
lot
more
hours
than
than
they
yeah.
I
I
So,
even
though
this
is
actually
a
bit
higher
than
we
were
playing
right,
Grand
totally
is
actually
lower
than
what
Grant
Thornton
with
a
child
just
if,
if
they
were
to
be
for
the
job,
and
in
fact
this
is
why
this
is
why
they
did
not
be
for
the
job
now,
because
it
was
too
expensive
for
it
playing
like
ours
to
make
that
payment.
But
having
said
that,
we
do
have
experience
working
with
MGO
and
you
know
I
hardly
support
the
recommendation
by
staff.
Thank
you.
I
E
E
R
R
The
city's
Auditors
are
currently
MGO.
They,
their
contract
will
expire
after
this
year's
audit
and
then
they'll
be
issuing
their
RFP
next
year.
I
know
in
the
past
it
has
been
brought
up
about
the
independence
issues,
but
both
the
city
and
the
Retirement
Systems
have
different
partners
on
their
plans.
They
have
different
Staffing,
and
so
it
kind
of
actually
makes
it
more
efficient
that
they're
both
Auditors
are
the
same,
so
they
can
work
together
to
get
because
some
of
the
information
that
our
Auditors
need
are
at
the
city.
G
R
I
B
B
B
B
I
I
B
R
E
B
And
then
you
post
brings
us
to
retirements,
so
we
are
in
a
very
cyclical
business,
our
pension
and
we
unfortunately
had
earlier
a
lot
of
deaths
Winters
a
time
when
older
folks
suffered
the
most
and
we
see
a
lot
of
people
retire
at
the
end
of
the
year
in
the
beginning
of
the
year.
So
typically
March
April
is
one
of
the
quietest
times.
So
there's
only
one
retirement,
Manuel,
Guerrero,
the
third
police
officer
police
department,
effective
April,
15
2023,
with
26.52
years
of
service,
all
entertain,
emotion,.
C
M
Yeah
I'll
say
something:
I
worked
with
Manny
actually
before
either
of
us
got
hired
with
San
Jose
police
department
in
the
illustrious
career
of
Eastern,
small
security
training
grounds
for
San
Jose
PD
for
many
years,
I've
known
Manny
for
a
long
time
and
I
wish
him
the
best
in
his
retirement.
Tell
me
he.
B
Q
D
Audit
committee
meeting
with
Federated
I
just
wanted
to
sort
of
highlight
to
the
board
that
there
was
a
presentation
by
our
internal
auditor
around
the
various
audit
issues
and
where
the
progress
report
was
from
from
ORS
from
the
wireless
team
and
where
we
left
off
was.
There
was
a
lot
of
discussion
on
Aging
of
the
audit
findings
and
there's
been
some
slow
down
in
the
implementation
rate.
D
I
think
it
fell
from
65
to
15
percent,
so
we've
requested
Roberto
and
team
to
come
back
with
any
materiality
or
sort
of
some
kind
of
analysis
around
which
recommendations
are
material
and
if
needed,
we
can
bring
it
to
the
board.
I
I,
don't
suspect,
there's
anything
of
concern,
but
I
just
wanted
to
highlight
that
we're
waiting
to
hear
from
the
team
for
the
next
meeting
around
how
to
progress
that
we
do
recognize
I
mean
resource
constraints
and
prioritization.
B
C
B
Thank
you
dick
head
to
attend
some
funerals,
so
I'll
do
disability
committee,
I,
I
missed
the
last
disability.
Just
like
this
board.
I
was
on
vacation.
I
know
there
was
one
disability
that
was
heard.
Let
me
note
for
the
record
that
we
will
receive
and
file
the
minutes
of
February
2nd
February
6th,
the
March
13th
last
item
and
drove
to
JPC.
Q
G
Okay,
go
ahead.
We
we
did
meet
just
a
few
days
ago.
I
believe
it
was
and
there's
three
things
that
we're
discussing.
One
is
looking
at
the
salary
surveys
for
the
CEO
CIO
and
investment
staff.
We
have
come
to
and
an
agreement
recommendation
that
will
bring
to
the
board
next
month.
We
would
have
done
it
today,
but
we
missed
the
deadline
to
have
this
on
the
agenda,
so
we'll
have
a
recommendation
next
month
to
adjust
those
salary
ranges
before
we
take
it
to
city
council.
G
B
Thank
you.
Let
me
know
what
we
receive
and
filed
the
minutes
from
February
9th
any
more
comments
floors
out
public,
any
thoughts
all
right.
This
is
not
the
earliest
we've
ever
done,
but
it's
the
top
three.
So
that
is
great.
It's
great
to
see
all
your
smiling
faces,
I
miss
seeing
all
of
you
last
month,
we'll
see
you
again
in
a
month,
thanks
guys.