►
Description
City of San José, California
Police & Fire Department Retirement Plan Board of March 2, 2023
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=1084921&GUID=D604F32D-06C3-40A7-8466-961C0A763474
A
A
A
B
B
There
we
go
Howard
Lee.
C
Well,
actually,
Franco
our
chair
bottle.
We
have
a
request
from
eschwar
to
attend
the
meeting
virtually
by
ab2449
and
that
requires
aboard
action,
and
so,
if
I
may
lead
the
the
board
through
that,
so
R
can
participate
virtually
under
ab2449.
Okay,
thank
you.
So
my
understanding,
trustee
Menon
is
that
you
are
seeking
to
attend
the
meeting
virtually
by
AB,
2449's,
emergency
circumstance,
justification
and
under
the
statute.
Emergency
circumstance
is
statutorily
defined
as
a
physical
or
medical
condition
that
prevents
the
member
from
attending
in
person.
C
The
trustee
must
give
a
general
description
of
the
quote
emergency
circumstance
as
specified
under
the
statute
that
need
not
disclose
any
diagnosis
or
medical
condition,
and
the
board
must
take
action
to
approve
the
virtual
attendance
for
the
stated
emergency
so
trustee
Menon.
Could
you
please
State
for
the
record
what
your
emergency
circumstances.
D
Right
so
I've
been
traveling
a
lot
and
you
know
I've
come
down
with
some.
You
know,
I
guess
something
viral.
So
just
trying
to
protect
everybody
else.
C
Thank
you
and
chair
bottle.
We
will
need
a
motion
a
first
and
a
second
or
a
motion
to
approve
trustee
menon's
emergency
circumstance,
as
stated.
B
So
I'll
make
the
motion.
Dick
is
good
in
a
second
I'll
call
for
the
vote,
all
in
favor
say
aye,
aye,
aye
and
then
we'll
go
to
the
remote
people,
which
again
is
worth.
C
C
C
C
C
C
C
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
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
B
This
is
obviously
going
to
be
a
a
difficult
item
and
conversation
to
deal
with.
We've
decided
that
we
will
create
an
ad
hoc
committee
to
deal
with
the
members
affected,
as
well
as
how
to
move
forward
and
deal
with
this,
but
to
give
an
overview
of
it.
I'm
going
to
hand
this
over
to
our
Council
Maytag
foreign.
E
So
for
the
public,
this
is
our
first
meeting
back
in
person
after
three
years,
so
we
are
going
through
some
technological
issues,
so
I'm
gonna
ask
you
to
please
bear
with
us.
As
you
know,
sometimes
we
slow
down
the
meeting
but
we're
hoping
that
we
catch
up
with
it
really
quickly
in
the
next
couple
of
meetings
going
back
to
in-person
meetings
with
that
said,
make
that
should
be
available
any
second
together.
C
Yes,
we
can
hear
you
and
Ray.
We
can
hear
you
as
well,
though
I
think
your
your
camera
is
covered
all
right.
C
It
looks
like
the
board
is
back
in
Chambers,
but
they
are
on
mute.
J
C
No,
that's!
Okay!
So
before
we
begin,
we
need
to
do
orders
of
the
day,
chair,
Auto
and
then
Sunshine.
E
B
Okay,
I'm
sorry
Maytag,
but
so
is
this
nothing
on.
Do
we
have
to
wave
sunshine
or
we.
C
We
do
have
to
wave
Sunshine
there's
a
few
attachments
that
need
to
be
waived.
I
can
identify
this
for.
K
C
Before
we
do,
we
do
have
orders
of
the
day
we
will
be
hearing
out
of
order,
item
4C,
I
believe,
which
is
the
item
on
discussion
of
the
San
Jose
Municipal
Code,
section,
3.36.3660,
disability,
retirement
of
participants
in
the
impact
of
benefits
on
disability
retirees,
the
separate
account
alternative.
Payees,
that's
going
to
be
heard
at
9
30..
So
do
we
have
a
first
and
a
second
motion
to
hear
that
out
of
order
for
orders
of
the
day.
A
C
C
Okay
and
then
we'll
we
will
go
to
item
Force
4C
back
to
YouTube
Auto.
F
B
Yeah,
that
sounds
like
I
was
muted,
so
we
we've
had
a
discussion
about
this.
The
board
has
elected
to
create
a
ad
hoc
committee
to
address
this
issue,
because
we
know
this
is
going
to
be
very
difficult
for
the
members
and
the
understanding
of
it,
because
it
involves
some
Municipal
Code
language,
as
well
as
some
tax
code,
language
and
clearly
tax
code.
Language
is
not
fun
for
most
of
us,
so
we
will
turn
this
over
to
council
Maytag.
C
Thank
you
so
just
for
clarification
of
the
record.
So
today,
as
you'll
notice
on
our
agenda,
we
are
here
for
a
discussion
with
no
action
and
so
for
for
the
board.
C
We
will
need
the
the
chair
or
the
board,
to
provide
Direction
to
staff
to
hold
to
organize
a
special
meeting
to
form
for
the
adoption
of
the
the
ad
hoc
committee,
because
we
are
not
able
at
this
particular
meeting
to
make
that
ad
hoc
committee,
but
we
can
hold
a
separate
special
meeting
to
to
create
that
formation
of
that
committee,
and
so
with
that
before
I.
Go
to
my
comments,
may
I
get
that
direction
from
the
board.
C
Thank
you,
and
then
so,
just
by
way
of
background
I'm
going
to
provide
some
preliminary
remarks
and
we
would
like
to
hear
from
the
membership
as
well.
It
has
come
to
the
board
and
ors's
attention
that
ORS
has
not
applied
municipal
code
3.36.3660
and
last
year,
even
though
this
provision
has
been
on
the
books
since
2000.
C
this
Municipal
Code
provision
was
enacted
when
the
city
enacted
part
17
of
the
municipal
code,
which
created
the
separate
accounts,
divorce
relation
order,
option
and
so
for
those
that
may
be
familiar.
There
are
two
ways
that
a
a
member
with
a
divorce
may
elect
to
have
their
benefits
allocated
between
them
and
their
ex-spouse
or
ex
domestic
partner,
which
is
known
as
alternative
payee.
C
Also,
alternative
payee
will
have
separate
accounts
with
the
fund
and
the
alternative
you
will
receive
their
payments
from
their
separate
account
with
no
communication
or
contact
with
the
members
account,
and
so,
when
the
city
enacted
this
provision
I'm
going
to
show
you
a
document
that
I'm
going
to
share
a
document
that
we
received
from
the
city
regarding
the
the
ordinance
that
was
passed
and
before
I
do
I
need
staff
to
please
stop
sharing
their
screen,
so
I
can
share
mine.
C
Okay.
So
here
is
the
municipal
code
at
issue
as
you'll
see
here.
It
relates
to
the
recalculation
of
disability,
retirement
benefits,
When,
the
alternative
payee
comes
into
the
picture
and
we'll
go
through
the
provisions
piece
by
piece
and
then
I'll
show
you
the
city
council
memo.
So
the
subdivision
a
sets
for
the
purpose
of
the
mem
of
this
Municipal
Code,
which
is
that
the
participant
retiree
and
the
alternative,
payee
I.E,
the
ex-spouse
or
ex
domestic
partner,
shall
not
exceed
the
total
amount,
otherwise
would
be
paid
to
the
member
alone
and
then
subdivision
piece.
C
That's
for
all
the
requirements
for
the
alternative
payee
for
eligibility,
meaning
that
the
alternative
pay
cannot
get
paid
their
share
of
benefits
until
the
member
would
have
been
eligible
for
service
retirement
and
once
that
occurs,
the
alternative
pay.
You
may
then
apply
to
receive
their
portion
under
the
separate
account
and
then
once
that
occurs,
the
participant
and
members
benefit
shall
be
recalculated
as
though
it
was
the
member
retired
for
a
service.
Now,
when
this
provision
was
adopted,
you
see
here
section.
C
This
is
the
ordinance
memo
that
adopted
part
17
of
the
municipal
code,
and
you
see
here.
This
is
November
1999,
and
we
have
here
we'll
scroll
down
to
some
of
the
background,
and
this
is
why
the
separate
account
was
created
in
the
first
place.
It
says
quote:
in
response
to
concerns
raised
by
members
of
the
plan,
the
board
formed
a
committee
to
work
with
the
board's
actuary
and
legal
counsel
to
develop
a
method
where
the
former
spouses
payments
could
be
made
directly
by
the
plan.
C
Now,
when
looking
at
this
memo
in
the
legislative
history,
it
is
clear
that
the
city
council,
when
they
passed
this
ordinance
and
that
enacted
the
provision
at
issue
here,
they
did
not
run
this
by
tax
Council
and
so
whether
or
not
the
city
was
aware
of
the
tax
implications.
It's
unclear
to
us
and
it's
also
further
unclear
to
us
why
the
city
council
on
the
city
attorney's
office,
has
written
the
statute
the
way
they
have.
C
But
for
the
record,
the
board
is
a
plan
administrator
and
not
the
designers.
We
must
administer
the
plan
as
written.
We
don't
know
why
the
city
designed
the
plan.
This
way
we
have
invited
the
city
to
come
address
this
issue
with
our
membership
to
come
to
this
meeting
today,
but
they
have
told
us
they
were
not
available
to
come
to
this
meeting
and
so
to
assist
the
members.
What
we
have
done
is
to
provide
with
our
agenda
the
see
if
I
have
it
here.
C
C
With
this
agenda
item
and
as
the
chair
has
stated,
we
are
looking
to
host
a
special
meeting
to
form
an
ad
hoc
committee
and
invite
all
the
stakeholders
to
address
any
potential
amendments
to
the
plan,
because,
as
plan
administrators,
we
must
administer
the
plan
as
written
to
maintain
our
tax
qualified
status,
and
so
with
that
we
we
have
direction
from
the
board
to
do
that,
and
that
is
the
action
that
we
will
take
with
that.
I
turn
that,
back
over
to
the
chair.
B
Okay,
we'll
open
this
up
for
public
retiree
General
comments
not
related
to
the
specific
agenda
item.
No,
no.
C
B
Have
a
hand
up
from
Stuart:
oh
we're
still
on
the
item.
I
apologize,
we'll
go
ahead
and
open.
This
comment:
please:
if
you're
on
Zoom
raise
your
hand
and
I'll,
try
and
see
you
if
you
are
in
person
here,
just
oh
go
ahead.
C
M
Foreign
good
morning,
so
we
can
explain
here
a
little
bit
of
the
background
about
why
there
ends
up
being
a
tax
change
with
the
implementation
of
this
provision
and
that
maytech
has
described
under
the
IRS
rules.
A
service-connected
disability
benefit
can
receive
non-taxable
treatment.
M
There
are
certain
rules
that
need
to
be
followed
and
over
to
get
that
non-taxable
treatment.
One
of
the
rules
is
that
the
formula
for
the
service
connected
disability
benefit
cannot
be
based
on
the
participants,
age
years
of
service
or
prior
contributions
to
the
plan.
M
The
basic
underlying
rationale
for
this
is
that
that
looks
like
a
service
retirement
benefit
instead
of
a
disability
workers,
compensation
benefit
and
regular
Service
retirement
benefits,
of
course,
are
taxable
income,
so
you
need
to
fit
within
the
IRS
rules
for
a
service-connected
disability
benefit
in
order
for
it
to
receive
the
non-taxable
treatment.
M
The
regular
San,
Jose
police
and
fire
Provisions
for
a
service
connected
disability
retirement
benefit
do
fall,
Within,
These
parameters
with
respect
to
the
50
percent
of
compensation
portion
of
the
benefit
that
that
amount
is
treated
as
non-taxable.
It's
not
based
on
the
members,
age
years
of
service
or
prior
contributions.
M
The
the
problem
that
arises
is
under
this
San
Jose
Municipal
Code
provision
is
that
who
wants
the
alternate
payee
comes
in
to
make
a
benefit
claim.
The
the
provisions
of
the
code
say
that
the
benefit
that
is
to
be
paid
on
a
going
forward
basis
to
both
individuals
is
to
be
recalculated
based
on
the
service
retirement
formula
and,
of
course,
the
service
retirement
formula
is
going
to
be
based
on
the
members,
Age
and
and
length
of
service.
So
unfortunately,
it's
just
purely
the
the
language
that
requires
that
benefit.
M
C
And
thank
you,
and
so
you
know
the
tax.
We
issued
a
number
of
corrected,
1099
R's
that
took
into
account
the
the
municipal
code
and
we
issued
them
for
the
open
years
that
are
available
for
correction,
which
are
the
last
three
reportable
income
tax
years,
and
so
the
reason
why
we
were
we
had
to
do
that
is
that
now
that
it
has
come
to
our
attention
that
this
code
provision
should
have
been
applied
to
maintain
the
tax
qualified
status
of
the
plan.
The
plan
was
obligated
to
issue
those
Corrections
and
issue.
C
B
Okay,
we'll
nothing
else
from
Council
unless
they're
answering
the
question
we'll
take
a
we'll
take
questions.
I
think
we
already
have
someone
with
the
hand
raised
Stuart,
McGee.
J
N
Have
a
question:
this
is
Omar
Prieto
retiree,
batch
3371.
N
Thank
you
for
addressing
that
very
clearly
and
I'm
I'm,
one
of
those
that
has
been
affected
by
this
retirement
thing.
That's
going
on
one
of
the
things
I
had
this
thing
written
out,
but
I
mean
clearly
I.
N
Think
everybody
understands
what's
happening
and
one
of
the
things
is
there's
two
there's
two
things
that
I
that
I
disagree
with
the
first
one
is
that
the
participant
won't
be
paid
more
than
the
plan
intended
to
pay
the
participant
alone,
and
when
my
I'm
under
I'm,
under
one
of
those
where
the
my
ex-wife
took
a
separate
account
approach,
they
took
16
of
my
retirement.
It
even
showed
on
the
website
that
I
was
at
32
and
I
only
had
16
accrued
after
the
divorce.
She
had
a
separate
account.
N
They
actually
moved
money
from
my
fund,
it
from
my
account
and
put
it
into
her
account
as
if
so
though
she
was
one
employee
of
the
city
of
San.
Jose
I
worked
a
couple
of
more
years
like
five
more
years
after
that
that
and
I
bumped
myself
back
up
to
like
30
percent
and
she
had
16
separate
and
then
I
retired
on
disability
and
they
bumped
mine
up
to
50
percent
and
now
that
I'm
retired
I'm
being
also
being
told
that
yeah
you're
at
50
and
I
was
told.
N
That
would
not
be
touched
because
I
earned
that
after
the
divorce
on
my
own
and
she
had
a
separate
account
already
with
money
in
her
own
account
now
I'm
being
told.
Not
only
is
this
other
thing
happening
that
Maytag
said,
but
also
they're
gonna
take
her
16
for
my
50
percent,
which
it's
supposed
to
be
untouched,
I
was
told,
and
and
and
that
that's
also,
in
other
words,
that
that
3.36.3600,
section
A
says
that
it
will
not
pay
the
amount
will
not
paid
more
to
the
participant
that
it
was
meant
to
pay.
N
N
And
then,
of
course,
the
second
part
is
and-
and
that's
even
even
worse
is
the
part
that
may
tax
says.
So.
Basically,
if
you
have
a
police
officer
and
I'm
just
going
to
throw
numbers
out
there
that
works
for
four
years
and
a
cruise
10
percent
gets
divorced,
he
gets
five
percent.
Ex-Wife
gets
five
percent
next
week.
He
steps
out
of
his
car
and
gets
shot.
N
G
C
Thank
you,
Mr
Pizza.
We
will
take
into
account
the
the
question
that
you've
raised
with
subdivision
a
with
the
city
and
the
bargaining
units.
We
again
the
board
does
sympathize
with
all
those
affectionators
on
this
and
we
will
work
with
the
unions
and
all
stakeholders,
including
the
retiree
Association
and
hopefully
the
city,
to
address
this
issue.
B
Okay,
Ray
I
see
her
and
go
ahead.
I
I
First
off
I
want
to
I
want
to
say
that
we
all
in
this
group
we've
all
been
talking,
and
we
understand
it's,
not
the
fault
of
the
Retirement
Board
and
we
particularly
appreciate
dick
Santos
and
Andrew
Garnier
for
getting
involved
in
the
hopes
of
finding
a
resolution
to
this
issue
and
I
also
want
to
recognize
Ray
for
his
his
work
with
the
and
the
retiree
Association
for
their
efforts
in
trying
to
help
with
us
help
us
resolve
this
issue.
I've
got
a
couple
of
points
I'd
like
to
bring
to
the
board's
attention.
I
First
off.
This
matter
is
very
time.
Sensitive,
April
15th
is
six
weeks
away.
I
heard
I
heard
you
talk
about
an
ad
hoc
committee,
but
you
have
to
have
a
separate
committee
meeting
to
develop
an
ad
hoc
committee,
while
some
of
us
in
California
have
been
given
time
extensions
for
our
taxes,
there's
folks
in
this
group
that
are
outside
the
state
and
they
have
an
April
15th
hard
date
to
address
this
in
terms
of
their
tax
obligations.
I
The
application
of
this
particular
section
of
the
municode
section
or
3.36.360
is
discriminatory
in
that
it
treats
one
group
of
retirees
differently
than
another
group
of
retirees
that
didn't
that
didn't
create
separate
accounts.
So
that's
disparate
treatment
and
I'm,
not
sure
that
the
the
City
attorney
was
aware
of
that.
When
this
was
created,
the
city
advised
me
that
that
had
I
had
my
retirement
funds
had
they
remained
in
a
single
account
with
a
monthly
deduction
from
my
former
spouse
that
my
disability
retirement
would
would
have
remained
intact.
I
So
I
I
need
you
to
understand.
This
has
devastating
Financial
impacts
to
the
people
that
are
identified
here.
It's
the
potential
cost
of
applying
this
section.
The
way
that
it's
been
done
by
the
city
has
the
it
it's
got
the
potential
of
costing
members
up
to
a
hundred
to
two
hundred
thousand
dollars
in
additional
taxes,
interest
and
penalties,
and
these
are
we're
not
just
numbers.
There's
retirees
in
here
up
to
the
age
of
78
that
they're
not
going
to
be
able
to
recover
from
this
financial
impact
and
I.
I
Think
it's
important
to
know
the
group
of
retirees
that
are
that
have
been
identified
and
had
their
their
finances
adjusted
by
the
city
did
nothing
wrong
and
we
all
move
forward
with
our
lives
based
on
a
contractual
agreement
that
we
had
with
the
city
regarding
our
disability,
retirements,
the
cities
it.
This
is
the
city's
error.
It's
not
it's
not
the
member's
error,
we've
all
based
our
tax
withholdings
and
our
lives
and
our
finances.
I
Based
on
that
factual
agreement
that
we
had
with
the
city
and
when
I
asked
the
city
couldn't
tell
me
what
the
intent
of
the
municode
section
was
or
when
it
was
even
created,
and
I
also
had
that
memo
that
that
was
shown
here
that
was
created
in
1999
and
it
requests
the
ability
to
create
a
separate
account
option.
So
a
former
spouse
could
begin
drawing
funds
while
a
member's
still
working.
That
makes
sense
and
I
understand
it.
But
it
appears
from
this
memo.
I
So
finally,
the
only
other
thing
I
want
to
say
is
the
members
that
are
affected
in
this
group
and
and
this
group
is
going
to
grow,
it's
already
grown
again
from
the
initial
group
of
11.,
but
but
we
were
not
able
to
make
an
informed
decision
when
separate
funds
were
created,
because
the
city
didn't
advise
anyone
of
the
potential
consequences
of
a
Quadro
versus
asadro,
so
I
again,
without
being
able
to
make
an
informed
decision.
I
I
think
the
city
needs
to
take
that
into
into
consideration,
plus
the
the
devastating
Financial
consequences
of
this
plus.
The
fact
that,
based
on
that
memo,
it
doesn't
look
like
that's
what
that's
what
the
intent
of
this
was.
This
may
be
a
misinterpretation
of
the
that
municode
section
I'm,
not
sure,
but
it's
it's
definitely
discriminating
against
one
group
of
retirees
versus
another
group
just
because
they
have
a
a
separate
fund
versus
having
a
deduction
off
of
One
Fund.
I
B
Thank
you,
Stuart
and
I
I.
Don't
think!
There's
anyone
up
here
that
doesn't
agree
that
this
is
punitive
for
people
that
have
a
divorce
and
a
disability
retirement.
That's
why
we're
as
Maytag
mentioned,
the
bargaining
units
will
all
get
together
in
in
a
meet
and
confer
and
figure
out
how
to
solve
this
problem.
G
G
G
Also,
it's
only
police
and
fire.
So
far,
that's
been
affected
and
I
find
that
hard
to
believe
that
there
are
isn't
other
divorced
members
in
the
Federated
unions
and
whatnot.
That
would
have
this
problem.
I.
Just
don't
quite
capture
that
I
would
urge
you
to
have
this
separate
meeting
to
get
the
ad
hoc
committee
going
ASAP.
G
We
need
to
jump
on
this
fast,
but
the
people
that
we're
talking
about
are
very
upset
I'm
worried
about
their
Mental
Health.
G
If
you
thought
of
this
yourself,
any
of
you
up
there
on
the
board
that
have
been
retired
or
aren't
also
be
hit
with
this
20
30
years
later,
not
expecting
it.
How
would
you
feel,
and
what
would
that
do
to
your
finances?
I've
been
Fielding
calls
from
these
people.
B
B
Sorry,
this
technology
is
a
little
different
than
mine
at
home.
Do
I
have
anyone
else.
What
I
just
hit
anyone
else
in
person
or
on
the
phone
that
would
like
to
speak.
O
Yes,
Mr,
chair,
Richard,
Santos,
yeah
I
want
to
thank
Stu,
McGehee
and
Ray
storms,
of
course,
and
while
Bunya
for
all
participating
in
an
orderly
manner
and
giving
the
board
an
opportunity
to
try
to
address
these
issues.
Of
course,
I
appreciate
our
legal
advice
and
with
our
chair
to
form
this
ad
hoc
committee
I'm,
assuming
that
we
talked
that
the
that
time
will
be
dealt
with
immediately
at
the
same
time,
it
helped
me
recall:
will
the
IRS
give
those
individuals
the
time
that
would
be
needed
without
any
further
penalties.
C
For
tax
Council
on
the
tax
attorney,
so
I
would
defer
to
Miss
Harrison
and
Mr
Goss.
H
It's
this
is
Rob
Goss
from
Ice
Miller,
the
likely
implication
of
receiving
a
corrected
1099-r,
and
it's
it's
my
understanding
that
there
have
been
about
10
members
that
have
already
received
corrected
1099rs
for
several
years
past
years,
which
we
refer
to
as
the
open
years
that,
once
that
corrected
1099r
is
submitted
to
the
IRS
that
will
trigger
the
IRS
to
issue
a
recalculation
of
the
members
tax
filing
for
the
applicable
year.
That
would
also
include
interest
in
penalty
assessment.
P
Ahead
mind
if
I
ask
a
couple
of
questions,
so
this
is.
This
is
really
confusing.
So
this
just
to
understand
the
issue.
P
The
this
affects
employees
who
were
receiving
disability
income
who
have
overwrand
disability
and
who
are
divorced
and
the
divorce.
The
ex-spouse
is
receiving
Separate,
Checks
or
separate
accounts
payments.
I'm
curious
one
of
the
members
who
called
Omar
said
that
this
doesn't
affect
individual
if
there's
a
one
payment,
but
if
there's
two
it
does.
Why
is
that
so.
B
E
You're
correct,
so
we
that's
correct,
yeah
I
apologize,
a
concept
member.
Why
don't
you
make
that
decision
and
you're
divorced?
You
have
two
options.
You
can
create
a
separate
account
or
you
can
do
make
a
payment
on
your
own
account.
Usually
you
create
a
safe
harbor
account
if
you're
an
active
member
and
you're
going
to
continue
working,
but
you
want
the
ex-spouse
to
start
receiving
their
benefit.
If
you
go,
the
route
of
the
Just
One
account
that
member
that
alternate
payee
cannot
receive
a
benefit
until
the
members
actually
retires.
E
B
P
C
Correct
so
the
the
alternative
payees
benefit,
it's
always
taxable,
because
that
that
benefit
is
not
being
paid
out
in
the
nature
of
workers
comp,
but
the
members
benefit
up
until
the
point.
The
alternative
payee
comes
into
the
picture
for
those
with
a
service-connected
disability
are
tax
exempt.
However,
once
the
alternative
B
becomes
eligible
and
applies
so
it's
only
when
the
alternative
payee
comes
for
their
portion
of
the
benefit
to
get
in
Pay
status.
Does
the
statute
require
a
recalculation
using
a
service
retirement
formula?
C
So
up
until
that
point,
the
member
gets
a
tax
status
for
fifty
percent
of
their
final
average
salary.
Up
to
that
amount
and
anything,
the
paid
in
excess
would
be
taxable
once
the
alternative
payee
comes
into
the
picture,
then
the
benefit
gets
recalculated
with
the
service
retirement
formula
pursued
to
subdivision
B2,
and
because
of
that
then
loses
a
taxable
treatment
of
the
benefit.
At
that
point
forward,.
P
Okay,
so
I'm
I'm
actually
trying
to
understand
the
scope
of
the
financial
obligation
to
the
individual
receiving
the
additional
tax
bill.
P
Can
you
give
me
an
idea
of
first
I've
heard
the
number
11
there's
11
employees
that
this
affects
so
far
and
I
understand
that
that's
could
be
a
growing
number
I
do
two
to
raise
Storm's
Point
curious
about
Federated,
because
there
are
employees
there
who
also
were
on
disability
and
might
have
the
same
consequences
so
I'm
just
trying
to
understand
so
the
IRS.
Can
we
go
back?
Can
the
1099?
P
P
E
Council
member,
you
will
be
hard
for
us
to
speculate
about
that
issue,
because
individual
tax
issues
vary
by
individual
right.
So
we
have
no
concept
of
what
can
possibly
be
the
tax
implications
other
than
to
say
they.
E
Okay,
they're,
large
and
also
I
wanted
to
let
you
know
I
know
you
have
some
questions
and
we'll
try
to
answer
them,
but
I
just
want
you
to
know.
Staff
and
myself
are
also
available
when
you
and
you
always
have
time
so
we
can
expand
and
provide
more
data
and
detail
information
so
that
next
time
we
have
this
discussion,
you'll
be
better
prepared,
I
apologize
the
front.
E
This
really
has
been
a
obviously
a
very
challenging
and
for
the
last
few
days-
and
we
didn't
get
a
chance-
you
know
to
reach
out
to
you
to
give
you
some
of
the
background.
So
that's
that's
on
me
and
I
apologize
for.
P
P
It's
a
policy
issue
and
it's
a
tax
issue
and
and
I'm
on
the
city
ordinance
policy
side,
but
the
tax
consequence
is
complicated,
I'm
just
trying
to
get
a
handle
and
understand
that
and
I
understand
that
that
will
change
depending
on
the
employee,
but
the
fact
that
they're
going
to
get
the
big
tax
bill,
I'm
I'm
concerned
about
that,
and
maybe
we
can
talk
about
what
sort
of
a
fix
we
can
do.
We
can
create
from
a
policy
level
going
forward.
P
That's
that's
my
role
here
is,
as
the
council
representative,
so
I
guess
that
answers
my
question.
I
was
kind
I
didn't
understand
how
big
of
a
scope
it
was.
It
could
be
big
depending
on
as
people
start
reporting
that
they're
as
they
start
getting
their
tax
bills
from
the
IRS
and
I,
don't
mean
to
make
light
of
it
like
that.
The
taxes
and
the
interest
and
penalties
could
be
huge,
so
I
think
we
need
to
figure
out
how
we
can
go
forward
on
this
yeah.
E
Yeah,
thank
you.
I
do
wanted
to
also
mention
there
are
originally
in
11,
members
were
impacted,
but
they
are
really
20.
Members
impacted
and
someone
asked
the
question:
I
think
it
was
Rey
and
we
have
also
looked
at
the
federal
side
and
at
this
point
we
have
looked
at
the
data
just
like
we
are
fairly
confident
that
the
population
for
the
police
and
fire
is
the
right
number.
E
We're
still
doing
some
more
work
with
the
data
to
confirm
that
we
have
done
the
same
work
with
the
Federated
and
we
just
haven't
found
anyone
to
be
impacted
at
this
point.
There
are
different
situations
in
terms
of
of
the
disability,
approval
and
everything
else,
and
the
numbers
of
service
connected
on
the
federal
side.
So
that
may
be
a
huge
part
of
it.
But
at
this
point
we
haven't
find
any
Federated
member
impacted
by
this
situation,
so
I
just
wanted
to
make
that
comment.
Thank.
L
I
got
a
cool
question
for
staff,
so
out
of
the
20
people
that
we
have
identified
so
far.
L
L
Does
not
is
that
something
you
guys
are
working
on
now
trying
to
identify.
Q
K
L
And
in
regards
to
every
single
month,
you
know,
disability
committees,
hearing
new
new
cases,
what
what
are
we
doing
for
at
Retirement
services
in
regards
to
communicating
to
soon
to
be
retirees
or
soon,
people
that
are
going
to
be
filing
are
in
the
process
or
in
the
queue?
Let's
say
of
the
disability,
to
communicate
these
new,
these
Newfound
Provisions,
the
muni
code.
Q
Yeah
we're
a
documentation
so
as
it's
part
of
their
packet
when
they
do
either
a
disability
application
or
on
the
other
side,
if
they're,
applying
for
a
domestic
relation
order.
L
Is
there
a
way
for
us
to
put
out
some
type
of
communications
you
know
in
which
you
guys
could
distribute
and
POA
local
230s
could
distribute
just
bringing
everybody's
attention
to
this
because
there
might
be
a
you
know:
a
set
of
population
populated
people
that
are
either
a
going
through
a
divorce
now
and
they
might
want
to
take
that
into
consideration
and
and
two
or
might
be.
You
know
on
the
verge
of
going
out
on
disability,
so
they
know
this
ahead
of
time.
Q
Yes,
yes,
there
is,
and
I
could
also
put
some
information
in
our
newsletter.
That's
due
to
White
in
April.
L
I
think
yeah.
Your
newsletter
will
be
great
if
that's
quarterly
I
think
if
we
could
communicate
in
as
many
different
forms
as
possible.
I
think
that
would
be
great,
so
utilize.
You
know
the
unions
to
disseminate
this
information
along
with
the
newsletter
and
just
so
we
could
try
and
Target
as
many
people
as
possible
with
this
information.
R
E
Good
question,
in
fact,
and
I
will
I'll
ask
Maytag
to
comment.
There
have
been
some
issues
that
have
been
brought
forward
over
the
past
year
or
two
to
the
board,
where
we,
as
as
the
boar,
has
actually
directed
staff
to
reach
to
the
city
to
let
them
know
about
inconsistencies,
so
we
have
done
so
in
those
situations
and
we
haven't
done
an
exhaustive
review
to
see
what
else
is
inconsistent.
E
As
issue
comes
up,
we
certainly
reach
out
to
the
city
and
let
them
know
so
it's
a
long
way
of
telling
you
borderline.
Is
we
don't
plan
to
to
continue
looking
at
the
city
code
and
let
the
city
know
where
there
might
be
inconsistencies,
but
that
issues
come
up.
We
do
work
with
them
to
let
them
know,
and
all
we
can
do-
is
to
provide
the
city
the
comments
by
our
members
and
this
and
the
board.
Then
the
city
is
left
to
decide
how
they
like
to
proceed
at
this
point.
E
I
think
have
been
maybe
two
or
three
occasions
and
different
issues
and
I'm
not
sure
that
anything
has
changed
at
this
point,
not
to
say
that
the
city
is
not
working
on
it.
I
can't
really
speak
to
that
because
I
don't
know,
but
when
issues
come
up
we'll
do
we
do
inform
the
city
of
inconsistency,
Maytag,
I,
don't
know
if
you
haven't.
C
There
are
a
number
Provisions
in
the
Munich
code
that
we
have
raised
with
the
city
regarding
either
amendments
or
changes
that
the
board
believes
are
necessary
for
our
Administration,
one
of
them
being
the
Medicare
mandate
issue.
As
you
may
recall,
felony
forfeiture
issues
and
you
know
last
meeting
we
had
an
issue
about
post
retirement,
spousal
elections
for
optional
settlements,
so
we
had
a
very
hard
and
fast
deadline
of
30
days,
which
you
know.
C
If
you
take
an
extended
honeymoon,
you
might
miss
that
deadline,
and
so
we've
written
to
the
city
on
numerous
occasions
for
a
requests
for
changes
on
those
code
proportions,
and
you
know
at
at
the
end
of
the
day
where
the
rubber
really
hits
the
road
is
a
lot
of
these
mini
code.
Provisions
are
subject
to
collective
bargaining.
We
are
only
the
plan
administrator,
so
we
can
only
recommend
changes
but
to
really
get
a
change
across.
C
We
need
the
stakeholders,
the
unions
in
particular
to
help
help
drive
us
with
on
those
changes
because
they
they
will
affect
their
membership
from
a
collective
bargaining
perspective,
and
so
so
you
know,
while
we
can
make
recommendations
to
the
city,
we
really
need
to
get
all
stakeholders
involved
to
really
make
those
changes
that
happen.
B
Anyone
else
from
the
board,
Ray
I,
don't
know
if
you
just
left
your
hand
up
or
if
you
have
another
comment.
G
Yeah
I
do
have
another
comment:
I
was
reading
through
the
frequently
asked
questions,
and
they
said
this
was
discovered
just
prior
to
the
31st
of
this
past
year.
It
was
my
understanding
that
this
actually
happened
in
the
summertime
and,
if
that's
the
case,
why
it
takes
so
long
to
notify
these
members
about
this,
and
why
was
the
decision
made
at
that
juncture
where
these
members
that
are
being
affected
good
and
some
knowledge
and
take
some
actions?
You
know
that
not
being
rushed
like
you
are
right
now,
I'd
like
that
question
answered,
please.
C
C
We
weren't
really
fully
advised
of
the
tax
consequences
of
that
recalculation,
because
initially
we
just
thought
it
was
a
recalculation
issue,
but
once
we
got
tax
Council
involved,
we
realized
it
was
attacked
with
you
and
then
there
from
there
we
had
to
go
through
the
the
data
which
is
extensive
to
figure
out
who
the
effective
members
were
and
issue
our
corrected
1099r.
C
So
you
know
it's
a
long
way
of
saying
it
took
a
long
time
for
us
to
get
through
the
process
and
we
were
moving
as
quickly
as
we
could
so
that
that's
the
the
answer
to
that
question.
G
G
C
I,
don't
understand
right
now,
because
I
don't
understand
that
payback
or
option
that
you're
mentioning.
But
this
is
an
issue
that
we
will
take
note
of
and
we
can
address
further
at
the
ad
hoc
committee,
because
this
code
provision
also
will
interplay
with
the
number
of
other
code
Provisions,
for
example,
survivorship
benefits
and
whatnot.
C
So
we
want
to
make
sure
whatever
changes
we
make
to
the
code
AS
recommendations
with
all
stakeholders,
so
we
all
and
tax
Council
and
the
city
council
as
well
that
we
or
city
liaison
to
really
make
sure
we
understand
what
what
the
ripple
effect
of
any
changes
would
be
because
we
don't
want
to
be
here
five
years
later
to
realize
what
changes
we
recommended
had
other
implications
that
were
unintended.
B
Maytag,
this
is
Franco,
just
I
think
clarify
what
he
was
explaining
is
if
you
take
a
service,
if
you
take
a
service
retirement
with
a
pending
application
for
disability,
you'll
get
a
full-time
or
you'll,
get
a
full
sick
time
payout,
but
there's
a
provision
in
our
it's
in
our
Moa.
That
says
you
can
only
get
to
a
certain
amount,
and
then
you
would
owe
that
money
back
if
you're
approved
on
a
disability
application,
but
that's
in
our
Moa.
C
Okay,
we,
we
can
certainly
look
at
that
as
a
part
of
our
ad
hoc
committee.
B
I
wish
I
didn't
put
it
in
blue
at
this
time.
Members
of
the
public
make
comment
on
items
not
included
on
the
agenda,
provided
that
the
matter
is
within
the
subject
matter:
jurisdiction
of
the
board
members
of
the
public
who
wish
to
provide
comment
at
this
time
may
do
so
by
raising
your
hand
in
the
Zoom
app
or,
if
joining
by
telephone,
by
pressing
nine
on
your
telephone
keypad
when
addressing
the
board
press
six
to
unmute.
Please
res,
please
state
your
name
for
the
record
prior
to
providing
your
comments.
B
C
Actually
sure
about
I'm
sorry
I
forgot
to
mention
coming
out
of
closed
session
that
there
is
no
reportable
action.
B
Yeah
I
think
I
did
mention
that,
but
we
were
muted
over
on
this
side.
But
yes,.
A
E
S
Popped
up
no
worries.
Lj
is
fully
capable
of
actually
answering
all
questions,
so
nothing
against
him
and
he
will
get
a
chance
to
speak
today
as
well.
So
thank
you
Mr
chairman,
so
we
do
have
a
fairly
full
investment
agenda
and
starting
with
performance.
Fourth
quarter
performance
overview,
we'll
start
with
Casey
Boyer
on
the
private
markets
and
then
turn
it
over
to
Laura
and
Jared
for
the
pension
plan.
And
then
we
will
also
talk
about
refunding.
S
We
will
defer
the
asset
allocation
discussion
to
April
at
the
request
of
the
investment
committee
and
that
meeting
just
happened
a
couple
of
days
ago,
and
so
we
didn't
have
time.
We
don't
have
time
to
incorporate
feedback
from
the
IEC.
So
we
will
take
that
up.
That's
item
two
F
I
believe
we
will
take
that
up
in
April
with
that
brief
intro.
Actually,
I
do
have
some
preliminary
performance
information
as
of
228
23.
S
The
pension
plan
returned
three,
has
done
three
percent
fiscal
year
to
date
and
Healthcare
trust
is
at
about
3.9,
and
these
are
numbers
provided
by
Makita
with
that
I'm
happy
to
take
any
questions
and
if
there
are
no
questions,
I'll
turn
it
over
to
Casey
Boyer
of
newburger
woman.
T
So
today,
I'm
going
to
present
the
Q3
portfolio,
update
for
your
private
Equity
portfolio
and
I'll
I'll,
mainly
stay
on
page
two
here,
just
to
give
a
a
really
good
summary
of
more
high-level
information
but
happy
to
go
into
details.
If
anybody
would
like
on
on
more
of
the
portfolio
underlying
Investments.
T
So
as
a
reminder,
we
we
have
been
investing
out
of
this
program.
Now
the
Strategic
partnership
with
zuberger
Berman
for
almost
six
years
in
May,
it
will
be
the
full
six
years.
The
police
and
fire
have
a
little
over
400
million
that
has
been
committed
over
that
time
period,
and
so
we
are
continually
along
with
staff
making
and
looking
annually
at
what
commitments
need
to
be
in
trying
to
maintain
a
very
consistent
pattern
to
make
sure
you're
sure
we
are
reaching
Target
nav
in
in
this
portfolio.
T
So
at
this
point,
if
you're,
if
we're
looking
here
at
page
two
as
a
reminder,
we
are
investing
into
three
types
of
Investments
primary
fund,
Investments
secondary
Investments
and
co-investments
co-investments
being
Investments
directly
into
companies
alongside
alongside
our
GPS,
and
so
we
do
that
pretty
consistently
with
allocations
each
year.
T
T
T
Are
continuing
to
come
back,
which
we
are
of
course,
then,
returning
to
to
your
team
to
date
that
has
been
44.2
million,
as
I
mentioned,
we
are
continuing
to
commit
and
if
you
kind
of
think
about
how
that
works
in
terms
of
the
performance
for
Q3,
the
performance
did
go
down
slightly.
Some
of
that
was
overall
market
conditions
and
just
the
fact
that
public
markets
and
private
markets
were
down
slightly.
T
So
overall,
as
I
said,
net
multiple
of
1.8
times
in
a
net
irr
of
25.8
percent
for
Q3
Q4,
we
have
got
have
gotten
some
early
reads:
it's
still
very
early.
As
you
know,
Q4
is
the
quarter
that
takes
a
little
bit
longer
because
it's
all
audited,
and
so
it
comes
through
a
little
bit
slower
than
than
previous
quarters,
but
for
Q4
as
a
newberger
platform,
not
for
San
Jose
portfolio
specifically,
but
from
our
platform
we've
seen
about
20
percent
of
our
valuations
come
in.
T
T
U
U
P
T
The
only
other
page,
some
of
the
pages
in
between
kind
of
touch
on
some
of
the
underlying
Investments
I'm,
going
to
go
quickly
to
this
summary
and
just
kind
of
go
through
a
little
bit
more
of
the
performance.
So
at
the
top
we
have
primaries
and
secondaries
broken
out,
as
you
can
see
the
gross
performance
of
each
and
then
at
the
bottom.
We
have
the
net
performance
and
the
benchmarking
of
the
of
the
total
portfolio
against
a
peer
comparison
for
Q3.
We
were
second
quartile
for
irr
and
tvpi.
R
Hi
Casey
this
is
this
is
Howard.
Thank
you
for
the
the
update
and
presentation.
It
would
help
me
and
maybe
it
would
help
other
people
you
mentioned.
You
know.
Q3
was
down
slightly
prior
to
the
prior
quarter.
Is
there
a
way
you
can
include
that
comparison
in
the
data
either
on
slide
two
or
on
that
summary
slide?
At
the
end,
the
the
comparison
quarter
on
quarter,
because
sometimes
it's
hard
for
me
to
tell
you
know
how
things
are
going,
because
we
just
see
this
snapshot
without
any
perspective.
D
Ask
a
question:
Franco
good
schwar,
so
so
Casio
page
five,
the
first
investment
I'm
trying
to
see
why
the
the
irr
is
first
quartile
and
the
moic's
vote
I
mean
what
would
explain
that.
T
Yeah,
so
there
could
be
many
different
things
that
explain
that
this
investment,
specifically
we
invested
in
the
fund
after
it,
had
already
made
a
few
Investments
and
had
already
kind
of
been
generating
some
some
performance
and
so
I
think
what
you're
seeing
here
a
little
bit
is
somewhat
due
to
timing,
so
your
irr
is
going
to
be
a
little
bit
higher,
simply
because
the
length
of
the
investment
period
is
shorter,
but
I
think
also
it's
very.
T
You
know
when
we're
benchmarking,
we
don't
really
have
a
clear
idea
of
what
is
in
The
Benchmark
and
all
the
underlying
data
that
goes
into
that
Benchmark.
So
some
of
it
is
we're
trying
to
pick
the
absolute
best
Benchmark
for
each
investment,
while
not
knowing
exactly
what's
underlying,
but
I
do
agree
with
you.
That
is
not
typical
and
we
double
checked
that
many
times
just
to
ensure
our
numbers
were
correct,
and
that
was
in
fact
correct.
T
So
I
can't
give
you
a
super
clear
answer,
other
than
a
little
bit
of
unknown
from
The
Benchmark
and
a
dark
timing
of
investment
is
affecting
the
irr
a
little
bit.
D
S
U
U
With
three
reports
today,
I'll
begin
with
the
private
markets,
which
is
not
playing
nice
with
my
zoom
in
terms
of
opening.
Here
we
go
okay,
so
in
terms
of
your
overall
private
markets
program,
you
can
see
the
individual
asset
classes
in
private
markets
on
page
one
here.
Did
everyone
see
the
screen?
Okay,
we
have
the
Legacy
private
equity
which,
as
you
know,
was
started
a
long
time
ago
and
wasn't
always
committed
consistently,
but
it's
still
on
the
far
right.
U
If
you
take
a
look
at
the
internal
rates
of
return
and
the
second
column
from
the
right,
that's
your
fund's
performance
for
each
individual
private
markets,
asset
class
and
then
on
the
far
right
is
a
public
markets
equivalent.
So
if
you
had
put
the
same
amounts
of
money
into
a
sort
of
commensurate
public
markets
index
and
taken
out
the
same
amounts
of
money,
when
you
receive
distributions
from
public
markets,
you
would
have
had
the
return
in
the
far
right.
You
did
have
the
return
in
the
column.
U
If
we
take
a
look
at
the
private
debt
program,
you
can
see
it
has
an
internal
rate
of
return
of
6.4
percent
and
an
overall
allocation.
Within
your
total
plan
of
4.3
percent.
There
were
two
new
commitments
during
the
quarter
that
we're
looking
at
Eagle
Point,
two
and
HPS
opportunities.
There
were
each
21
million
dollars
and
you
can
see
contributions
and
distributions
from
the
program
at
the
bottom.
U
U
We
have
all
the
individual
funds
in
the
private
debt
program
on
page
five
and
again,
you
can
see
an
internal
rate
of
return
in
the
second
column,
from
the
right
that
is,
your
internal
rate
of
return
and,
in
the
far
right
column,
appear
pure
Universe
internal
rate
of
return.
For
points
of
comparison,
you
can
see
that
in
particular,
the
funds
that
have
been
committed
under
your
current
staff
since
about
2017
have
performed
quite
well
relative
to
peers.
U
You
can
see
the
Vintage
year
of
each
fund
on
the
left
next
to
the
fund
name
and
more
here,
and
when
you
see
an
NM
that
means
that
the
performance
is
not
yet
meaningful
because
you
commit
for
a
period
of
time
and
your
capital
is
locked
up
for
several
years
if
it's
a
fund
that
was
just
committed
to
last
year
or
the
year
before
that
they
don't
yet
have
a
meaningful
return
for
private
markets.
U
We
also
have
diversification
information
in
this
report.
You
can
see
here
percentage
of
the
fair
market
value
the
percentage
of
the
total
exposure
by
vintage
year
and
Geographic
Focus.
So
in
private
markets
you
want
to
continually
commit
each
vintage
year
to
build
your
program
because
you
never
know
in
advance
exactly
what
the
next
vintage
year
is
going
to
bring
in
terms
of
performance
so
vintage
year.
Diversification
is
very
important
and
your
staff
has
achieved
that.
U
The
next
program
here
is
the
real
assets
program.
So
this
is
natural
resources
and
infrastructure
funds.
You
can
see
that
the
internal
rate
of
return
for
your
program
is
13
and
a
half
percent,
and
that
the
the
current
allocation
is
about
half
of
the
policy
Target,
so
you
all
are
still
committing
to
get
up
to
the
policy
Target
here
using
that
concept
of
vintage
your
diversification.
U
There
was
one
new
commitment
during
the
quarter
that
we're
looking
at
Cambridge
energy
fund,
six
with
16
million
dollars,
and
if
we
take
a
look
at
the
individual
funds
here,
you
can
see
it's
still.
You
know,
being
at
half
your
total
allocation,
a
relatively
immature
program.
U
You
know
first
commitments
made
in
2016
ramping
up
more
in
the
last
few
years,
but
if
you
take
a
look,
you
know
in
particular,
we've
had
some
outsize
returns
from
Cambridge
energy,
5
of
41.1
percent
internal
rate
of
return
relative
to
less
than
15
for
the
peer
group
and
again,
that's
the
fund
that
you
just
made
a
new
commitment
to
their
most
recent
vintage
year.
This
quarter
that
we're
looking
at
program
starts
on
page
13..
U
There
were
two
new
commitments
during
the
quarter
that
we're
looking
at
One
Fund
at
14
million
and
one
at
17.,
and
you
can
take
a
look
at
the
individual
Returns
on
pages
16
and
17.
again,
especially
in
recent
years,
with
the
current
staff
that
you
have
now.
If
we
look
at
about
2017
forward,
I
think
every
fund,
except
for
one,
is
outperforming
it's
peer
median
handily,
a
pieceo5
is
a
European
fund,
so
there's
been
some
negative
currency
effects
for
that
fund.
U
It
does
have
a
good
internal
rate
of
return
so
far
of
9.3
percent
there's
a
target
of
four
percent
in
your
total
plan,
but
there's
only
less
than
a
percent
of
assets
allocated
so
far,
because
this
is
a
new
program.
As
you
know,
there
were
three
new
commitments
made
during
the
quarter,
we're
looking
at
in
the
amounts
of
five
ten
and
three
million
dollars,
and
you
can
see
the
individual
vintage
year
and
individual
fund
performance
on
here
on
page
22..
U
We
don't
have
meaningful
data
for
most
of
these
funds,
given
how
new
they
are
that
they've
been
committed
within
the
last
few
years,
but
the
couple
that
we
do
are
in
the
double
digits.
So
far
we
have
a
lot
of
other
information
in
this
report
about
half
of
it
is
Market
information
on
private
Equity,
Global,
fundraising
and
other
information,
but
I
will
leave
you
to
read
that
at
your
leisure.
Should
you
choose
and
I'm
happy
to
take
any
questions
on
private
markets
before
I
move
into
the
total
fund.
S
Makita
and
for
item
2D
plan
performance
of
fourth
quarter.
U
Okay,
so
for
the
total
fund
report,
I
will
start
with
a
really
brief
backdrop
on
the
market
environment
since
it's
been
a
little
while
since
December
31st.
So
if
we
look
at
how
the
market
as
a
whole
performed
in
the
fourth
quarter
of
2022,
you
can
see
the
index
returns
for
the
fourth
quarter
on
the
left
and
the
full
2022
calendar
year
on
the
right.
2022
was
not
a
good
year
in
the
markets,
as
I
think
we
all
know.
U
We
saw
the
S
P
500
down
over
18
percent
for
the
year
we
saw
non-us
stocks
down
as
well,
and
the
big
story,
I
think,
was
that
investment
grade
bonds
didn't
provide
a
place
to
hide.
You
know,
historically,
I
think
a
lot
of
people
have
thought
that
they
might
have
a
diversified
portfolio
when
they
have
equity
and
bonds.
Bonds
were
down
13.
U
They
had
the
worst
year
that
they've
had
since
the
index
was
created,
so
the
funds
that
we
work
with
that
haven't
had
diversification
in
terms
of
private
markets
and
hedge
funds
and
cash
really
had
a
very
rough
time.
Luckily,
your
fund
is
very
Diversified,
so
you'll
see
that
it
looks,
looks
relatively
strong
for
the
calendar
year.
If
we
look
at
the
fourth
quarter,
things
did
tend
to
reverse,
and
so,
if
you
take
a
look
on
the
on
the
left
side,
non-us
stocks
are
that
top
orange
bar
up
17
for
the
fourth
quarter.
U
A
big
story
was
that
China
did
not
do
well
in
the
first
nine
months
of
the
year.
China
did
better
once
they
reopened
in
the
fourth
quarter,
and
you
can
see
that
emerging
markets
were
up
almost
10
percent.
China
is
a
big
portion
of
that
Emerging
Markets
index
return.
U
So
what's
interesting
to
me,
though,
is
that,
even
though
we
had
those
really
strong
Returns
on
the
left,
those
are
baked
in
on
the
right,
so
the
Returns
on
the
right
would
have
been
even
worse
if
we
hadn't
had
the
fourth
quarter
recovery
there,
as
with
private
markets,
we
have
a
lot
of
other
information
on
the
market
environment
which,
in
the
interest
of
time,
I
won't
go
through
right
now,
but
I'll
skip
to.
As
you
know,
you
have
a
watch
list
which
we
include
here
every
quarter.
U
It's
on
page
24,
and
we
note,
if
there's
any
team
changes,
organizational
changes
performance
concerns
on
this
slide,
and
you
know
if,
if
anything
ever
Rises
to
the
level
of
we
think
you
should
terminate
a
strategy
because
of
the
watch
list.
You
will
definitely
hear
about
it
from
us.
U
If
we
take
a
look
at
overall
asset
allocation
on
page
29,
you
can
see
the
total
fund
asset
allocation,
the
current
allocations.
Then
you
have
an
overlay
that
gets
you
closer
to
the
current
allocations
when
you're,
not
quite
there,
in
the
policy
allocations
on
the
far
right.
So
the
total
fund
market
value
is
4.5
billion
as
of
the
end
of
December,
and
we
estimate
that
it's
up
further
I
know
that
your
CIO
mentioned
the
returns
this
year.
U
Thus
far
so
far
in
2023
a
60
40
Global,
Equity,
Global
Bond
portfolio
would
have
returned
about
2.3
percent.
We
estimate
that
your
fund
is
returned
closer
to
three
thus
far
this
year
and
so
that
fiscal
year
return
is
now
higher
than
what
we're
looking
at
on
this
slide.
But
you
saw
a
quite
strong
fourth
quarter
relative
to
the
year
as
a
whole,
with
the
total
fund
up
4.4
percent.
U
You
can
see
that
that
was
not
super
strong
for
the
quarter
in
terms
of
the
peer
group,
but
if
we
do
look
at
the
one-year
return
quite
close
to
a
top
quartile
peer
Group
return,
the
fund
was
down
nine
percent,
as
I
just
mentioned,
equities
were
down,
18.
Bonds
were
down
13..
So
in
order
to
be
down
nine,
you
had
to
have
a
lot
of
asset
classes
that
did
better
than
Global
equities
and
investment
grade
bonds,
which
you
did
so.
U
If
we
take
a
look
at
growth
for
2022
as
a
whole
was
down
13.3
percent
that
includes
public
Equity,
International
and
emerging
and
also
private
markets.
So
you
can
see
private
markets
about
halfway
down
page
31.
Private
markets
were
down
negative
1.7
percent,
so
protected
quite
a
bit
relative
to
public
equities
and
to
bonds.
There
probably
is
a
little
bit
further
to
go
in
terms
of
private
markets
falling
a
bit
more
because
their
valuations
are
lagged.
So
we
will
see
what
happens
long
term,
but
we
don't
expect
it
to
be
as
negative
as
public
markets.
U
Even
once
some
additional
evaluations
come
in
growth.
Real
estate
was
a
really
bright
spot
for
the
year.
You
can
see
private
debt
as
well
towards
the
bottom
of
the
page.
Private
debt
was
up
almost
six
percent
growth,
real
estate
up
17.7
percent
and
private
real
assets
up
13.66.
So
again
in
a
market
environment
where
you
had
such
negative
returns
for
all
public
markets,
asset
classes,
private
markets
were
quite
protective.
U
You
also
had
some
diversification
within
public
markets.
In
particular,
Emerging
Markets
debt
was
up
1.1
percent,
so
these
are
bonds
issued
by
emerging
economies.
You
have
an
Emerging
Markets
debt
fund,
that
is
long
short,
so
they
can
short
or
bet
on
markets
going
down
which
ended
up
being
quite
a
good
thing
during
2022
and
then
low
beta
was
really
a
bright
spot
as
well
up
up
3.3
percent
and
outperforming
its
Benchmark
for
the
one-year
period
Market
neutral
strategies
here
is
hedge
funds.
U
U
relative
value
as
well
here
up
23.6
percent.
These
are
hedge
funds
for
the
one
year
period
and
you
can
see
that
we're.
Finally,
getting
some
returns
from
cash
cash
for
the
year
was
up.
1.4
percent
and
again
core
real
estate
did
quite
well.
We
have
all
the
individual
manager
returns
as
well,
but
in
the
interest
of
time
I'm
going
to
focus
just
on
the
asset
classes
and
some
overall
metrics.
U
U
We
have
attribution
for
different
time
periods.
If
we
look
at
performance
attribution
for
three
years,
you
can
see
that
almost
all
of
these
bars
are
on
the
right
side
of
the
line,
which
is
what
you
want,
which
means
that
your
plan
added
value
relative
to
their
overall
Benchmark,
both
from
the
way
that
the
assets
were
allocated
into
different
buckets
and
also
in
terms
of
individual
managers
that
were
hired
and
how
they
outperformed.
U
I
will
look
at
page
59
here
so
for
the
one
year
period.
What
this
shows
me
on
the
left
is
that
your
your
return
for
the
one
year
was
Top
to
close
to
top
quartile
of
the
peer
group.
Your
standard
deviation
in
the
second
column,
which
is
a
measure
of
volatility
or
risk,
was
below
the
peer
group.
So
your
your
volatility
was
10.6.
U
The
pure
medium
was
10.9
and
that
leads
to
a
risk-adjusted
return
and
the
third
column
that
was
top
quartile,
so
you've
out
earned
the
the
peer
group
and
then
you've
under
you're
under
the
risk
of
the
peer
group,
and
so
the
risk.
Adjusted
return
looks
quite
good
and
you
see
that
same
story
now
for
three
years
as
well,
with
a
top
quartile
risk.
Adjusted
return.
K
Yeah
just
a
question:
first,
thanks
thanks
a
lot
Laura
that
was
a
good
presentation.
I
just
want
to
understand
the
market
neutral
strategy
a
little
bit
more.
It
seems
like
that's
a
standout
on
a
lot
of
the
charts.
I
didn't
get
a
chance
to
really
dive
into
the
nitty-gritty
detail
as
to
what's
driving
it.
Maybe
you
can
Enlighten
us
as
to
what's
driving
that
performance
and
what
you
think
about
the
consistency
of
the
performance
going
forward
for
that
bucket
great.
U
Yes,
so
on
page
45
you
can
see
the
individual
funds
that
are
in
the
relative
value
market
neutral
strategies
allocations,
so
you
can
see
Pine,
River,
D.E,
Shaw,
Hudson,
Bay
and
crabl,
and
their
individual
returns.
So
Crable
in
particular,
is
a
CTA
manager.
Ctas
did
incredibly
well
during
the
year
we
at
Makita
call
these
type
of
hedge
funds
risk
mitigating
strategies.
So
a
lot
of
the
funds
we
work
with,
like
California
State
teachers
or
the
Orange
County
Employees
Retirement
System.
U
Have
they
call
this
bucket
risk
mitigating
strategies,
and
this
is
really
designed
to
diversify
when
Market
go
down.
So
there's
there's
funds
that
capitalize
on
higher
volatility
they
fall
on.
These
type
of
buckets
de
Shaw
is
another
sort
of
global
macro
hedge
fund
that
can
go
anywhere
and
and
also
had
some
protective
assets,
but
also
your
investment
officer
who,
who
focuses
on
these
strategies,
is
here
as
well.
If
you
wanted
to
add
any
commentary.
L
L
Yes,
60.
I
just
want
to
just
point
out
and
recognize
about
five
years
ago,
around
2017
2018.
All
these
numbers
were
in
the
95th
percentile,
okay.
So
over
the
last
five
years
there
has
been
a
dramatic
shift
in
in
the
performance
of
the
plan
and
we
have
to
recognize
you
know
Prabhu
and
his
team
for
all
the
hard
work
that
they've
been
doing
and,
as
you
can
see
at
the
three
year,
we're
looking
you
know
top
quartile
in
in
every
single
category.
L
U
Okay,
so
your
health
care
trust
has
the
same
Market
information,
so
I'll
skip
right
to
the
fund
on
page
27,
so
the
healthcare
Trust
balance
is
much
smaller
than
the
pension
at
275.8
million.
As
of
the
end
of
December,
with
a
current
allocation
quite
close
to
policy,
and
as
you
know,
the
goal
of
this
fund
is
to
stay
quite
liquid,
so
you
don't
have
all
the
private
markets,
asset
classes
and
hedge
funds
in
this
portfolio.
U
The
closest
you
get
to
some
illiquidity
is
core
real
estate,
which
is
about
quarterly
or
six
months
that
you
could
get
your
money
back.
So
this
this
portfolio
doesn't
invest
in
some
of
the
you
know,
long
walk-up
types
of
funds
and
as
we've
discussed
in
the
past,
this
Healthcare
trust
is
a
bit
riskier
than
some
of
the
peers.
In
this,
this
Health
and
Welfare
250
million
to
a
billion
dollar
peer
group.
A
lot
of
Health
and
Welfare
funds
have
a
much
lower
expected
return
relative
to
their
sort
of
sister
pension
fund.
U
This
Fund
in
the
past
had
sort
of
a
same
Actuarial
Target
return
as
the
pension
that
has
decoupled
a
little
bit
and
now
we
target
something
slightly
lower,
but
what
that
means
is
in
really
up
Market
environments.
This
fund
looks
phenomenal
relative
to
its
peers,
and
you
can
see
that
in
the
fourth
quarter
that
it
was
in
the
top
decile
tops
beat
up,
beat
out
93
percent
of
other
Health
and
Welfare
funds.
U
We
do
see
the
opposite
in
down
Market
environments,
because
you
have
more
I
would
say
Equity
than
a
lot
of
the
peer
group
funds
here,
just
given
what
we're
targeting
for
the
Actuarial
assumed
rate
of
return.
So
you
can
see
that
the
one-year
return
was
down
10.7
percent
and
right
in
line
with
the
peer
group.
This
fund
is
mostly
passively
managed
in
low-cost
index
funds.
So
you
can
see
that
in
U.S,
Equity
International
Equity,
Emerging
Markets.
You
have
index
funds
in
all
of
those
areas,
so
the
performance
as
we
would
expect
just
about
matches.
U
The
Benchmark.
You
have
Northern
Trust
core
Bonds
in
this
fund
and
then,
as
I
mentioned,
core
real
estate
is
really
the
main.
Diversifying
asset
class,
as
well
as
Commodities,
which
are
at
the
bottom
Commodities,
have
been
strong
lately
when
we've
had
strong
inflation
and
high
prices
for
oil
and
glass,
oil
and
gas
and
other
Commodities.
So
a
strong
quarter
for
the
health
care
Trust.
S
B
S
Require
referral
of
this
to
April?
We
had
our
IC
meeting
just
two
days
ago
on
Tuesday
and
the
AC
has
asked
for
additional
information.
So
we
will
bring
this
item
back
to
the
board
in
April.
S
Thank
you
and
I'm
going
to
invite
senior
investment
officer,
Jay
Kwon,
to
address
this
agenda
item.
V
So
those
of
you
who've
served
for
a
while
might
remember
that
this
is
the
time
of
year
where
the
city
chooses
their
payment
schedule
in
terms
of
sponsor
contributions
and
it's
a
little
bit
of
convoluted
process.
But
the
municipal
code
gives
the
city
the
option
to
decide
whether
to
pre-fund
their
annual
or
pre-fund
their
sponsor
contribution.
V
You
know
at
the
beginning
of
the
year
versus
paying
throughout
the
year
in
line
with
payroll,
and
so
the
city
has
the
has
that
choice.
But
you
as
a
board,
have
the
choice
to
decide,
are
able
to
determine
the
discount
rate.
You
give
the
city
for
paying
up
front
versus
making
those
payments
throughout
the
year,
and
so
the
municipal
code
states
that
you're
you're,
the
choice
of
discount
rate
just
needs
to
be
actuarially
equivalent
to
the
the
the
the
discount
rate
for
the
assumed
rate
for
the
plan.
V
V
The
second
was
the
market
returns
since
the
last
Market
Equity
Market
trough
and
third,
the
the
trigger
we
adopted
last
year
was
some
valuation
metric
for
the
market
and
so
just
a
half
a
step
back.
The
overall
concern
was
that,
if
you
just
kind
of
rubber
stamped
giving
the
city
the
full
discount
rate
every
year,
the
city
might
be
in
a
position
to
kind
of
Arbitrage
market
conditions.
At
that
point
and
say:
hey
we'll
we'll
take
that
6
and
5
8
when
market
returns
are
vastly
different,
and
so
these
can.
V
These
triggers
were
adopted
to
kind
of
adjust
the
discount
offered
to
the
city
for
market
conditions
at
the
time,
so
we're
in
a
position
this
year,
where
none
of
the
triggers
are
are
activated,
and
so
the
the
methodology
recommends
that
we
give
the
city
the
full
standard
discount
and,
just
to
let
you
know,
the
the
finance
department
did
notify
us
that
they
would
like
to
pre-fund
tier
one
and
opeb
at
the
beginning
of
the
year
for
police
and
fire.
So
this
is.
V
This
is
a
practice
that
they've
taken
up
in
the
past
few
years,
actually
pretty
consistently
I.
Think
that's
it
in
terms
of
prepared
comments,
you
have
any
questions.
V
D
C
Yes
can
I
ask
if,
if
we
could
please
State
what
the
full
disc
ound
rate
is
currently
just
for
the
record.
V
Sure
it's
six
and
five
eighths
and
the
actual
discount
would
be
given.
It
comes
out
roughly
to
about
half
of
that.
It's
a
financial,
math
calculation,
getting
my
hands
in
the
air.
E
Right
that
six,
six
and
five
a
is
actually
the
discount
rate
and
what
the
maximal
savings.
So
this
kind
of
we
provide
the
the
city
recommended
by
staff.
It
comes
out
to
about
half
of
that
just
about
it's
a
mathematical
equation
that
J
having
in
his
head,
but
will
be
hard
to
share
through
a
presentation
right
now,
but.
V
B
Opposed
okay
motion
passes
all
right
moving
on,
we
don't
have
any
old
business
so
we'll
go
to
new
business,
so
4A
or
a
date
from
Roberto.
E
Thank
you,
Mr
chair,
so
just
a
couple
of
things
you
bear
with
me
the
first
one
is
going
to
be.
No
one
is
happier
in
this
meeting
this
morning
than
Linda
Alexander
Linda.
E
Unbeknown
to
you
has
been
feeling
really
really
sad
that
she
wasn't
gonna
get
a
chance
to
say
goodbye
to
all
of
you
in
person
and
I
said:
don't
worry
about
it.
I
can
change
that,
and
so
here
we
are
this
morning.
Linda
is
actually
retiring
at
the
end
of
this
month,
but
she
is
so
happy
or
is
that
she
told
us
she's
willing
to
work
30
days
and
come
back
and
do
some
work
for
us
as
a
retiree.
E
If
we
need
to
so
we'll,
probably
take
her
on
that
offer
and
I
just
want
you
all
to
know
that
Linda
will
be
retiring
on
March
30th,
assuming
the
federal
board
does
approve
her
retirement
application
request
at
the
next
meeting,
and
so
I
just
wanted
to
take
time
and
allow
you
to
make
comments.
If
you
want
to,
and
thank
Linda
Linda
came
to
the
office
about
a
month
and
a
half
before
I
did
we
spent
10
years
working
together?
E
Huge
support
and
loyal
and
I
will
miss
you
dearly
and
I
will
wish
you
the
best
and
a
very
long
and
healthy
retirement
Linda.
So
thank
you
so
much
for
10
wonderful
years,
much
appreciated.
So
if
anyone
has
any
comments
from
staff
or
Bohr
just
this
is
the
time
I.
B
Would
like
to
I'll
start
by
saying
thank
you
for
your
service
and
the
wonderful
job
you've
done
in
retirement.
It's
not
horrible.
I
also
really
appreciate.
It.
I
really
appreciate
your
willingness
to
come
back
and
help
help
out
with
the
transition
anybody
else.
O
Yeah,
thank
you.
Linda
I
know
Linda
and
her
husband
Tony
from
another
part
of
a
work
and
labor
supporters.
We
sure
appreciate
all
those
volunteer
times
if
you've
done
all
the
good
things
for
labor
of
Santa
Clara
County
in
our
nation.
But
again
the
best
of
you
and
I
hope
your
health
is
fine
and
everything
works
out
and
thank
you
for
your
service.
E
E
U
J
J
A
Q
We're
actually
losing
our
editor
or
our
newsletter.
She
has
been.
She
works
really
diligently
on
each
Edition,
but
her
successor
is
right
here.
Michelle,
San,
Miguel,
so
she'll
be
working
with
the
newsletter
going
forward
and
probably
Zella
too,
but
yeah
then
they'll
be
very
missed.
L
Linda
I
want
to
say
thank
you
for
for
your
time.
You
were
always
on
the
other
end
of
my
some
a
lot
of
my
emails,
and
you
helped
me
out
tremendously
over
the
over
the
years
and
I
appreciate
it.
I
also
know
that
Roberto
will
be
able
to
function
properly
without
you.
So
so
thank
you
for
your
time
and
enjoy
your
retirement.
D
Yeah
and
I'd
like
to
Echo
the
words
Linda
you've
been
absolutely
very
helpful
in
terms
of
everything
you
do.
You
respond
to
all
our
emails,
and
it
just
makes
you
know
our
job
as
trustees
in
a
much
much
easier.
Thank
you.
A
E
E
We
have
people
out
on
the
unfortunate
Family
Matters,
and
also
you
probably
remember
that
one
of
the
instead
of
Specialists
that
work
in
that
group
also
retire
in
October
Maori
sarote.
So
it's
been
a
difficult
journey
and
I
just
want
to
publicly
also
thank
Michelle,
San
Miguel
for
for
really
stepping
up
and
being
very
helpful
and
and
helping
Linda
lead.
E
That
group
he's
been
a
struggle
and
it's
been
a
challenge,
and
so
I
want
to
publicly
thank
again
Michelle
for
the
work
that
she
has
done
these
past
few
months,
when
we
have
been
done
a
couple
of
times
to
just
one
or
two
individuals
in
that
area,
giving
a
support
for
the
committee
meetings
and
the
board
meetings,
whether
they
are
remotely
in
person.
So,
thank
you.
Michelle
much
appreciated
I
also
want
to
as
Linda
is
leaving
us.
I
want
to
introduce
to
you.
E
E
She
come
to
us
with
a
lengthy
experience
at
the
at
the
city,
level
and
I
have
to
tell
you
outstanding
recommendations
for
the
people
that
I
spoke
to
in
her
prior
experience,
working
with
all
the
directors
and
her
last
boss
was
a
former
mayor
Ricardo
and
if
she
can
work
familiar
Ricardo,
certainly
I'm
sure
that
we
can
work
together.
So
Isela
welcome
to
the
office
of
Retirement
Services,
look
forward
to
working
with
you
and-
and
this
is
the
police
and
fire
board.
They
are
actually
a
lot
nicer.
E
Just
you
have
to
give
them
time.
This
is
just
the
first
meeting
back
in
person,
but
no
no
kidding
aside,
congratulations,
I'm,
excited
I'm
working
with
you,
so
I,
don't
know.
If
you
have
any
comments
that
you
want
to
share
or
any
kind
of
I
don't
know
if
you
want.
E
Great
lastly,
I
just
wanted
to
let
you
know
that
eligible
police
and
fire
retirees
will
receive
the
annual
Medicare
B
Part
B
reimbursement
letter.
The
information
is
due
to
IRS
by
April
1st,
all
that
information
is
due
to
us
by
April
first,
so
that
the
staff
can
actually
cut
a
check
and
provide
the
I
call
it
a
refund
a
rebate.
Whatever
the
information
is,
is
a
dollar
figure
that
goes
back
to
the
police
and
fire
members.
So
the
information
did
it
go
out
already
or
is
it
going
now.
E
Out
how's
going
out,
thank
you
and
lastly,
we
are
going
to
be
observing
since
every
day,
Travis
day,
Friday,
March
31st,
so
the
office
will
be
closed
and
I
want
to
remind
you.
The
joint
meeting
with
the
city
council
is
hasn't
been
officially
scheduled
yet
because,
again,
I
think
it
goes
to
the
cruise
committee.
It's
going
to
go
on.
March,
8th
I
believe,
but
is
scheduled
for
March
30th
March
30th
is
is
in
person.
It's
a
Thursday
from
1
30
to
4.
E
30
is
actually
going
to
be
at
the
Rune
that
usually
this
board
meets,
which
is
room.
The
wing
rooms
roommate
118
to
120.
Again
it's
a
joint
meeting
of
you
police,
a
fireball
with
your
Federated
board
and
the
city
council.
Again:
Thursday
March
30th
from
1
30
to
4
30..
The
agenda
is
being
developed
as
we
speak.
E
I
know
we
have
two
items,
many
of
you
know
and
if
you
don't
know,
we
have
a
huge
turnover
at
the
city
council
level
and
we
have
about
six
new
six
or
seven
new
council
members.
So
we
feel
it
was
pertinent
to
provide
some
basic
and
introductory
information
to
the
group.
Some
of
this
information
has
already
been
received
by
council
members
that
have
some
experience.
E
Obviously
like
customer
member
Foley,
but
right
now
we
are
considering
providing
some
information
sort
of
introduction
to
the
asset
allocation
for
the
plans,
and
the
other
introduction
is
what
we
call
actoria
101,
which
is
about
the
work
that
they
actually
does:
the
evaluation,
the
assumptions
and
how
contributions
are
determined.
So
that
concludes
my
comments.
Mr,
chair,
I'm,
happy
to
answer
any
question.
Thank
you.
P
Good
afternoon
is
it
afternoon
yet
or
tomorrow
morning
still
morning,
first
I
want
to
congratulate
Linda
on
her
retirement
and
wish
you
well.
In
the
next
chapter
of
your
life,
my
husband
started
his
retirement.
Yesterday
he
announced
to
me
that
he
did
nothing
all
day
and
he
was
very
happy
about
that.
So
I
hope
you
take
time
to
enjoy
yourself
and
take
care
of
yourself
and
and
congratulations
on
being
able
to
do
that.
P
I'm.
Looking
forward
to
the
Joint
meeting
and
I'm
glad
to
hear
we
have
a
date
or
we
will
be
when
it
comes
to
rules
next
week,
I
sit
on
rules
so
I'm
sure
we
won't
have
problems
with
the
date.
I
know
it's
difficult
to
get
both
boards
on
the
same
page
and
schedule
that
many
people
for
one
meeting
and
it's
true.
P
We
have
six
new
council
members
that
are
not
as
familiar
with
the
retirement
funds
and
what
the
retirement
boards
do
so
having
a
joint
meaning
will
be
really
invaluable
to
them,
particularly
since
we're
heading
into
budget
session.
That's
shortly
after
the
budget
or
the
mayor,
re
releases
his
budget
message,
and
it
will
be
important
for
the
council
to
understand
the
impact
of
unfunded
liabilities
on
the
general
fund.
So
they
can
understand
what
kind
of
flexibility
we
actually
have
in
the
the
general
fund
dollars
we
have
to
spend.
P
You
all
know
we're
back
in
person
today,
although
I
went
to
the
old
Wing
room
and
much
bigger
route
meeting
over
there
than
here.
So
this
is
this
is
where
we
have
our
council
meeting.
Obviously
it
it's
an
adjustment
for
everyone
to
be
back
in
person,
because
you
have
to
Dr
plan
that
travel
time
that
you're
not
used
to
planning,
especially
when
you
have
to
hit
rush
hour
when
you're
really
not
used
to
that.
We
are
heading
into
budget
session.
As
I
said,
we
just
finished
priorities.
P
The
mayor
created
Five
new
transition
teams,
this
year,
of
which
I
check,
co-chaired
the
homeless
task
force
and
they've.
Actually,
all
of
those
items
what
was
heard
last
Tuesday.
Any
recommendations
will
go
forward
to
the
mayor
and
the
mayor
will
consider
what
he
wants
to
include
at
his
budget
message.
But
that's
just
the
beginning:
the
mayor
makes
his
budget
message.
Then
we
debate
and
discuss
city
manager
makes
her
message
and
we
come
out
with
hopefully
a
unanimous
approval
on
a
budget
at
the
end,
but
that
won't
happen
until
June
with
that
I'm
I.
P
B
We
have
it
any
questions:
okay,
hearing,
none
I,
just
wanna,
we've
already
discussed
item
4C,
but
just
as
a
reminder
they
need
to
still
maybe
on
that.
There
is
a
frequently
Asked
question
document
associated
with
that
item
and
we're
at
11
18.
Why
don't
we
go
ahead
and
take
a
break
until
11
25.
B
A
A
A
A
A
B
E
E
I'm
only
saying
that,
because
last
this
year
or
last
fiscal
year
when
we
presented
the
proposed
budget
for
the
current
fiscal
year,
which
is
the
one
dealing
with
iron
d,
what
we
usually
do
is
we
look
at
the
the
experience
of
the
last
so
many
years
in
different
areas.
Personnel
is
pretty
straightforward.
E
We
know
the
position
so
how
many
are
going
to
be
approved
and
we
have
information
from
the
city,
but
in
terms
of
Consultants
we
just
look
at
private
experience
and
based
on
that,
we
average
out
we
reach
out
to
Consultants,
find
out
what
are
the
projects
for
the
year
and
we
provide
a
number.
Well,
as
it
turns
out,
there
were
a
couple
of
issues
that
impact
these
requests
for
an
additional
200
000
and
they
are
mostly
related
to
Legal.
E
Hopefully,
you
had
a
chance
to
go
in
and
see
the
actual
attachments
and
in
terms
of
the
legal
council
there
are
a
couple
I
can
think
of,
but
the
most
critical
one
was.
We
did
not
ambition
having
to
deal
with
felony
for
features,
and
you
remember
felony
for
features
that
those
discussions
that
have
been
happening.
In
fact,
you
have
the
second
one
discussion.
Are
you
meeting
next
month
so
that
actually
increased
the
cost
associated
with
the
legal
services
considerably?
E
And
we
have
have
all
the
issues
to
name
the
few,
like
the
Medicare
issue,
that
we
didn't
anticipate
and,
of
course,
the
current
issue
that
you're
dealing
with.
So
we
are
our
request
to
adjust
the
current
year
budget
by
200.
000
is
probably
a
little
more
than
we
think
the
total
invoice
is
going
to
come
down
to,
but
I
asked
staff
to
leave
some
flexibility
so
that
we
don't
have
to
come
to
you
board
to
request
for
further
funds
in
the
event
that
invoices
come
a
little
higher
than
anticipated.
E
That
does
not
mean
if
the
invoices
come
lower
than
anticipated.
We
won't
use
the
funds,
but
I
don't
want
to
have
any
situation
to
have
to
come
back
to
you
born
in
May
or
June,
because
we
missed
it
by
2500
again,
the
main
issue
is
Liga
Liga
issues
this
also
because
we
have
been
working
on
many
projects
there's
also.
We
ended
up
spending
more
funds
on
temporary
services
positions.
E
That's
a
combination
of
a
lot
of
projects
that
I've
been
working
on
and
also
the
situation
that
we
had
not
been
able
to
fill
the
positions
that
have
been
vacant.
So
when
that
happens,
we
rely
on
temporary
services,
but
those
are
the
two
main
reasons
for
the
regressive
increase.
That
actually
concludes
my
explanation.
I
would
recommend
approval.
So
the
next
item
that
will
be
presented
to
you
does
assume
that
this
request
is
approved
and
I'm
obviously
happy
to
answer
any
questions.
Thank
you.
Mr
chair.
B
Second,
gardener:
any
discussion:
okay,
hearing,
none
call
for
the
vote
for
those
in
favor.
R
D
E
Thank
you
Mr
chair,
so
I
don't
know
if
Benji
is
joining
us
through
Zoom
I
guess
she
is
or
someone
is
someone
is
driving.
This
is
that
you
Benji
no.
E
All
right
all
right,
and
so
thank
you.
Thank
you.
So
if
you
look
at
the
agenda,
there
are
three
items
you
may
recall,
and
this
is
more
for
those
of
you
trustees
fairly
new
to
the
board
the
last
year
or
two.
E
There
was
an
audit
by
the
city
auditor
of
our
operations,
and
one
of
the
findings
had
to
do
with
the
budget
process,
and
the
bottom
line
was
that
there
was
a
discrepancy
between
the
amount
of
data
that
was
provided
to
your
boards
for
the
budget,
presentation
and
approval
and
the
one
that
actually
made
it
to
the
city
council,
and
so
they
requested
that
our
office
produced
a
document
that
was
consistent
among
both
meaning
both
boards
and
the
city
council.
E
So
I'm
only
saying
that,
because
when
you
look
at
this
agenda
item,
there
are
three
documents
and
those
three
documents
that
come
to
you
more
are
the
stack
documents
that
we
send
to
the
city
budget
office
and
the
exact
documents
that
actually
go
to
the
city
council.
So
I
just
wanted
to
get
that
out
of
the
way.
So
that's
understood.
E
The
second
one
is
that,
as
part
of
that
audit,
the
city
auditor-
and
this
is
an
actual
audit
recommendation
that
is
still
outstanding
from
from
their
Audi-
requested-
that
I
want
administrative
budget
included
the
costs
associated
with
investment
expenses.
E
We
we,
as
in
the
office
staff
and
both
of
you
boards,
based
on
your
general
counsel,
legal
analysis,
foreign-
were
not
able
to
meet
that
particular
audit
recommendation,
for
many
reasons,
two
of
which
I
can
think
of
quickly
is
number
one.
E
Is
the
state
retirement
laws
usually
indicates
that
investment
earnings
are
the
one
that
I
use
to
pay
for
investment
expenses
they're,
not
really
part
of
a
particular
budget.
In
my
experiences,
I've
been
working
in
other
offices,
investment
expenses
have
never
been
part
of
the
administrative
budget
and
when
I
say
investment
expenses
I'm
mostly
referring
to
manager
fees.
E
The
second
one
is
clearly
we
do
not.
We
do
not
know
what
the
market
is
going
to
be
in
the
upcoming
fiscal
year,
so
there
is
no
way.
I
can
actually
estimate
how
much
in
manager
fees
we're
going
to
request
you
more
to
pay
money,
managers
right
and
the
best
example
I
can
give.
You
is
if
you
go
back
and
you
look
at
the
return
of
police
and
fire
for
the
fiscal
year,
21
versus
22.
E
21
was
close
to
30
percent.
Positive
and
22
was
a
5
negative
I.
Don't
have
to
tell
you
that
the
difference
in
manager's
fees
is
going
to
be
considerable
on
those
returns,
and
so
with
that
we
were
never
able
to
agree
that
manager
fees
are
included
as
part
of
the
budget.
However,
we
understood
the
basic
premise
of
the
recommendation.
E
Was
transparency
and
I
do
want
to
say
that
I'm,
proud
to
say
of
two
things
as
part
of
this
budget
document
staff
takes
the
time
to
provide
an
estimate
of
what
those
manager
fees
may
be
in
the
coming
year,
assuming
that
the
asset
allocation
Returns
the
assumed
real
return.
So
first
we
have
to
look
at
the
actual
asset
allocation
and
then
assume
that
we're
going
to
return
6
and
5
8
and
based
on
that
and
return
caveats,
we
provide
some
estimates.
E
In
addition
to
that,
every
September,
every
agos
investment
staff
produces
a
comprehensive
investment
fee
report
that
is
calendar
year
basis.
They
come
before
your
boards
in
August
for
presentation,
and
then
they
see
CIO
goes
in
front
of
the
city
council
in
September
and
makes
that
presentation
as
well.
My
only
Point
here
is
that
we
wholeheartedly
agree
with
the
city,
auditor
and
the
city
on
on
transparency
on
these
issues
and
have
taken
steps
to
remedy
that
audit
recommendation
by
providing
first
day
estimates
in
the
budget
process
and
the
actual
comprehensive
reports
every
September.
E
So
with
that
I
don't
have
it
Benji
I
do
okay.
So
let
me
just
go
back
to
my
full
screen.
Okay,
so
at
a
glance
again,
I
just
went
over
this
information
about
the
development
of
the
budget.
The
military
expenses
breakdown.
Those
documents
include
sources
of
fonts
and
uses
of
fonts.
The
sources
of
the
fonts,
obviously,
are
you
City
contributions
and
investment
income
and
obviously
the
participant
contributions
as
well.
Those
are
the
sources
that
comes
with
the
fund
and
we
use
those
funds
to
do.
E
Two
things
mostly
to
pay
benefits
and
health
insurance,
which
is
actually
a
sizeable
amount
and
then
also
to
pay
their
military
administrative
expense
of
the
office.
If
you
go
to
the
next
slide,
Benji,
just
a
reminder,
the
the
presentation
of
the
budget
is
actually
divided
in
four
main
buckets.
Those
buckets
are
personal
services,
which
are
by
far
the
largest
number
of
your
administrative
budget,
and
then
we
do
have
a
bucket
of
non-personnel
equipment,
Professional
Services,
which
is
the
one
that
you
approve
for
the
current
fiscal
year
budget
increase
and
then,
lastly,
the
medical
services.
E
As
a
reminder
for
the
Personnel
Services,
we
basically
use
a
50
split
for
the
office
Retirement
services
in
terms
of
the
budget
office
labor
reports,
except
that
for
the
investment
staff.
Specifically,
we
split
that
on
basically
the
market
value
among
both
plans,
which
is
actually
deals
somewhere
between
60
for
police
and
fire
and
40
for
Federated.
So
for
the
rest
of
the
office,
is
a
50
50
split
for
personal
costs,
but
the
personal
costs
associated
with
investment
staff
go
60
to
the
police
and
fire
forty
percent
to
Federate
it.
E
The
non-personal
equipment
is
just
the
administrative
overhead
costs
that
includes
rain
supplies,
equipment
and
exclude
Professional
Services,
because
Professional
Services
has
actually
included
as
its
own
bucket
and
that's
basically,
you
know
legal
Actuarial,
I.T
and
accounting
and
other
services
as
needed.
And,
lastly,
the
medical
services
associated
with
the
work
regarding
disability
process.
We
can
go
to
the
next
Slide
by
the
way
as
I
go
through
this
presentation.
If
you
have
any
questions,
feel
free
to
stop
me.
E
This
is
just
a
graph
to
show
you
actual
and
forecasts
and
propose
sources
of
funds
over
the
last
four
years,
and
this,
as
you
can
see,
for
the
proposed
2023-24
again
that
investment
income,
please
do
not
take
that.
We
are
going
to
be
making
close
to
270
million
dollars
in
income
that
just
assumed
based
on
the
current
asset
allocation
and
they
assume
rare,
retainers,
6
and
5
8,
based
on
the
asset
allocation.
E
If
we
do
retain
6
and
5
8,
we
will
produce
about
269
million
dollars
in
investment
income
and
the
budget
also
based
on
the
actual
evaluations
that
you
approve
from
Chiron
for
the
2023
year.
We
expect
about
45.64
million
dollars
in
participant
contributions
and
about
230
30
million
dollars
in
contribution
by
the
city
same
for
the
uses
of
funds.
We
have
the
last
four
years,
actual
numbers
forecast
for
the
year
ending
on
June
30th
and
they
propose
for
the
coming
year.
E
E
Oh
that's
good!
So
the
next
item
Benji,
is
actually
the
proposed
budget.
So
in
a
nutshell
you
saw
I
mentioned.
The
proposed
budget
is
about
6.8
million
dollars
and
that
is
comprised
about
4.8
million
dollars
of
Personnel
Services
and
859
000
or
non-personal
equipment.
Nine
hundred
and
three
thousand
for
Professional
Services
and
270
000
for
medical
services.
E
The.
If
you
look
at
the
Torah,
requested
a
6.8
million
dollars
that
is
about
8.6
percent
increase
from
the
forecast
of
the
current
year.
We
are
forecasting
the
current
year
budget,
ending
on
June
30th
to
be
about
6.36
million
dollars.
E
So
the
next
slides
are
actually
a
detailed
information
on
these
numbers
in
terms
of
Personnel
Services.
Right
now
we
have
a
forecast
of
43
positions.
These
personnel
number
assumes
a
proposed
45
positions.
We
are
requesting
an
additional
two
positions
for
the
benefit
benefit
section
I
did
have
a
conversation
with
the
Major's
office.
As
you
know,
the
mayor
office
just
took
over
a
few
months
ago,
so
we
are
sort
of
working
through
the
process.
I
need
to
go
back
to
confirm
with
the
Major's
office
that
they
are
in
support
of
this
request.
E
I
had
not
done
that
today,
I,
don't
foreseen
any
problems
as
I
haven't
heard
from
them,
but
we
are
proposing
to
you
this
morning
an
amount
that
assumes
that
those
two
positions
will
be
authorized.
It
will
increase
our
positions
from
43
to
45
positions
for
the
office
and
again
because
we
split
this
half
and
half
we,
both
Federated
and
police
and
fire
comes
out
to
about
20,
20,
half
full-time
employee
allocated
to
each
plan.
E
If
we
can
go
to
the
next
slide
Benji,
this
is
just
showing
you
the
proposed
Orchard
for
the
coming
fiscal
year,
23,
24
and
I'm
just
kind
of
looking
here
Sandra.
If
you
can
help
me
under
the
benefits
section,
the
two.
If
you
look
on
the
left
hand,
side's
investments
in
the
middle
is
the
benefits
division.
Thank
you
and,
on
the
right
hand,
side
is
accounting
division.
E
So,
if
you
look
under
the
benefits
division
towards
the
middle,
the
the
the
larger
column
or
the
longer
column,
those
are
the
two
proposed
positions
there.
I
can
one
is
a
office
specialist
and
at
the
it's
hard
for
me,
to
read
the
descriptions
of
the
positions
here.
One
is
a
senior
officer
specialist
and
the
other
one
is
a
regular
office
specialist.
Is
that
I
get
that
right?
Sandra.
F
E
E
They
have
to
deal
with
all
our
members
on
both
sides,
not
just
active
police
and
fire,
but
active
Federated
and
retirees
I.
Think-
and
this
is
kudos
to
Sandra
when
she
joined
us,
obviously
to
look
at
the
operations
we
press
Ice
and
what
was
on
the
studio
that
we
were
on
the
staff.
So
last
year
we
added
three
new
positions
and
we're
asking
for
two
more
for
this
current
year.
Any
question
about
so
far
about
the
personnel.
E
All
right,
if
we
can
go
to
the
next
slide,
this
is
actually
the
explanation
for
the
non-personal
equipment
you
adopted
last
year,
795
000
we're
asking
for
a
little
more
this
year
of
859
000,
that's
about
one
eight
percent
increase
and
that
increase
is
mostly
an
increase
in
I.T
budget
for
new
financial
reporting
system.
For
ten
thousand,
as
you
saw
in
the
Personnel
we're
asking
for
two
new
positions,
we
require
that
we
reconfigure
the
cubicles
in
the
office
to
accommodate
for
the
desk
for
new
staff
and
that's
15
000..
E
E
Thank
you
so
Beijing
for
those
of
you
that
don't
remember
Benji
is
our
accounting
manager.
She
works
diligently
on
producing
the
the
budget
documents
based
on
discussions
within
your
staff
and
obviously
the
rest
of
the
different
divisions
in
the
office,
and
so
this
is
actually
the
detail
of
what
makes
the
known
personal
equipment.
The
largest
of
that
which
you
heard
about
it
this
morning,
is
the
video
and
Commercial
liability
insurance
and
the
rent.
That's
the
rent
for
the
location
that
we
have
at
our
offices,
the
sixth
and
the
fifth
floor.
E
It
Hardware
hardware
and
software
is
130,
000
and
so
on
and
so
forth.
They
add
up
to
850
nine
thousand
dollars.
This
is
pretty
straightforward
from
every
year.
This
is
the
same
minor
budget
categories
that
we
have
included.
We
do
have
some
training
and
travel
of
30,
000.
I,
don't
know
if
that
number
I
know
we
have
kept
it
about
thirty
thousand
for
the
last
couple
of
years,
and
obviously
because
of
coffee,
we
have
had
much
less
travel,
but
I
expect
that
we
will
get
closer
to
that
number
this
year.
E
Now
that
staff
and
trustees
are
traveling
anymore
to
various
conferences
and
Roundtable.
So
if
you
can
go
to
the
next.
R
Roberto
sorry,
one
question
just
to
clarify
the
there
is
a
19
change
on
the
non-personnel.
That
is
that,
because
the.
O
E
So
the
I
usually
refer
to
the
the
increase
or
decrease,
and
the
change
to
the
adoptable
you
are
correct.
They
close
to
20
percent
difference
is
our
forecast
for
the
requester,
for
the
coming
year
is
about
718
000.
So
when
you
compare
the
proposed
to
the
forecast,
that's
what
leads
to
the
twenty
thousand
dollar.
Excuse
me
to
a
20
difference
because
of
the
explanation
that
we're
just
providing
included
the
CPI
contracts.
We
are
sticking
with
the
859
000
number
I'm,
not
sure
if
bendy
have
any
other
further
explanations.
W
It's
you
know
our
forecast
is
how
expense
for
the
six
months,
so
it's
you
and
we
usually
just
double
that
amount.
So
if
there's
something
else
that
you
know,
we
have
planned
that
we
have
not
received
the
invoice,
for
it
might
not
be
included
in
that.
So
that
could
account
for
the
difference.
So
you
know
there's
some
projects
that
we
had
accounted
for.
I
believe
part
of
the
I
think
the
phone
I'm
not
sure.
W
If
it's
the
there
was
some
there
were
some
projects
in
I.T
I
think
that
we
had
included
in
the
last
year's
budget
that
we
have
not
been
either
invoiced
for
or
have
not
completed.
Just
like
the
phone
project
phone
upgrade
project.
E
Benji,
can
we
go
to
the
next
slide?
Please
and
the
next
slide
there
you
go
so
the
next
one
is
Professional
Services.
This
is
actually
the
bucket
that
you
actually
modify
this
year.
That's
when
you
see
the
adopted
798
000
and
the
that's
the
adopt
10
and
the
modify
is
998
000,
that's
a
200
difference.
E
E
But
you
can
see
how,
when
we
compare
the
proposed
903
000
to
the
to
the
doctor
modify
is
when
we
compare
it
to
the
adopted
it's
about
a
13
increase
when
we
compare
it
to
the
modifies
about
almost
10
decrease
and,
of
course,
when
we
compare
to
the
forecast,
that
is
about
a
six
percent
decrease
from
the
current
year.
Again.
E
E
If
we
can
go
to
the
the
next
slide
that
actually
provides
you
the
detail
of
what
makes
the
nine
hundred
thousand
dollars
in
Professional
Services.
The
bulk
of
that
number
is
legal
and
when
I
said,
Liga
is
mostly
you
General,
slash,
fiduciary
Council
for
Rich
meat,
but
it
also
includes
ice
Miller,
which
is
your
tax
Council
and
Saltzman,
and
Johnson
is
actually
your
fetish,
disability,
disability,
Council
and
that
accounts
for
three
hundred
and
twelve
thousand
dollars.
E
You're
actually
and
that's
Chiron,
which
is
you
have
four
and
evaluations
a
year,
actually,
two
for
police
and
fire
and
two
for
Federated.
This
is
only
the
police
and
fire
amount
and
they
do
further
work
on
benefit
calculations,
415
limit
matters
and
other
issues
that
comes
to
290
000..
E
You
audit,
which
is
the
audio
Financial
audit
agreement
about
85
000,
and
we
actually
are
going
to
be
coming
before
you
probably
at
the
next
month.
You
may
recall
that
the
last
Financial
audit,
completed
by
our
financial
auditor
was
the
last
one
they
have
in
their
contract,
Grant
Thornton,
which
means
that
we
have
to
go
out
for
audit
services,
and
we
should
be
completing
that
that
audit
that
request
for
proposal.
E
Surely
so
we
can
send
it
out
share
with
you
and
hopefully
come
before
you
board,
with
a
recommendation
for
an
auditor
before
the
fiscal
year
is
over,
so
that
it
can
actually
be
in
place
to
perform
the
annual
Financial
audit.
So
the
85
000
I
is
probably
closer
to
what
we
have
paid
in
the
past,
and
so
that's
what
the
number
is
coming
from.
E
There
are
other
Professional
Services
that
we
work
with
I
can
think
the
the
one
that
I
can
think
the
most
are
two
of
them
government
services,
that's
cortex
and
obviously
the
communications
consultant.
That's
about
sixty
thousand
dollars
temporary
agencies.
This
is
when
we
have
temporary
staff
either
to
it
has
been
mostly
to
feel
vacant
positions,
but
we
also
use
them
with
the
health,
open,
enrollment,
and
so
that's
132
000
and
the
pension
Administration
goal
system.
E
Pensions
go
for
the
web
changes
24
000
that
adds
up
to
about
980
000
dollars
and
lastly,
the
four
main
bucket
is
Medical
Services
that
actually
remain
flat
compared
to
per
year,
and
this
is
the
the
cost
associated
with
the
medical
services
provider
for
the
disability
applications.
You
may
recall
that
we
are
no
longer
using
the
biomedical
advisor
and
we
are
going
to
be
contracting
directly
with
in
the
panda
medical
advisors
for
the
disability
applications
and
that
number
again
remains
flat
from
the
fryer
year
of
270
000.
E
So,
in
addition
to
the
actual
budget
request
that
we
put
forward,
this
is
something
that
we
instituted
early
on
when
I
joined
you
board
about
10
years
ago,
and
and
the
the
goal
in
here
is.
E
Is
you
know
it's
all
running
good
that
we
see
here
are
introduced
and
put
forward
requests
for
a
budget,
but
we
want
to
make
sure
that
you
have
some
data
that
allows
you
to
compare
our
requests
with
our
peer
plans
across
the
state,
and
this
is
what
we
use
this
data
for
and
so,
for
example,
this
particular
one
is
strictly
personal
services
right,
so
I'm,
gonna,
I'm
gonna,
say
this-
that
I
say
every
year
when
we
provide
this
information.
E
E
For
example,
when
you
go
to
LA
City,
they
have
about
two
or
three
different
plans,
but
each
planet
have
their
own
board
and
each
plant
have
their
own
office
staff
and,
in
my
private
experience,
when
I
work
in
other
plans,
there
was
one
plan
for
both
General
members
and
safety
members
and
one
office.
E
San
Jose
is
completely
different
than
anybody
else
in
that
there
are
two
plans.
There
are
two
boards,
but
it
share
the
same,
the
same
office
staff,
and
that
is
actually
that
actually
impacts
some
of
the
costs
associated
with
this.
E
Now
this
one
in
particular,
the
reason
we
provide
the
combined
number
is
sort
of
to
take
away
a
little
bit
from
the
difference
between
Federated
and
police
and
fire
because,
as
you
can
imagine,
a
safer
investment
staff
on
personal
services,
which
is
split
on
60
40,
based
on
the
asset
base,
every
cost
on
both
plants,
we
split
50
50.
E
and
it
does
have
the
service
to
Federate
it
and
a
service
to
police
and
fire,
because
police
and
fire
has
a
higher
asset
base
and
federally
has
a
lower
asset
base.
So
when
you
look
at
the
combined,
you
can
see
the
actual
for
2122
was
10
basis
point
and
the
action
for
2021
was
a
basis
points,
and
that
is
more
in
line
with
the
public
pension
plans,
assets
between
five
and
ten
billion
dollars.
E
So
eight
and
eight
you
actually
as
a
policeman
fighter
alone,
you
are
within
that,
but
the
federator
is
is
is
not
now.
I
will
also
argue
that,
given
our
size,
personal
expenses
is
impacted
by
two
main
reasons:
number
one
we
are
in
in
the
Bay
Area.
E
So
we
are
going
to
look
higher
than
most
of
our
peers
in
other
areas
of
this
of
the
state
because
of
the
costs
associated
with
the
bay
area,
but
number
two
and
I
think
trustee
good
denier
mentioned
before
I'm,
very
proud
of
the
work
by
the
investment
staff.
They
do
outstanding
work,
but
you
should
know
that
all
the
systems
at
this
level
have
a
much
smaller
or
even
just
a
one
or
two
staff,
and
they
make
a
decision
to
rely
heavily
on
the
investment
consultant.
E
That
was
a
strategic
decision
that
was
made
by
these
boards
before
I
joined
and
after
I
joined
that
they
wanted
to
build
from
within
and
build
investment
staff,
and
so
that's
what
they
have
done.
I'm
only
saying
that,
because
obviously
that
is
is-
is
also
impacted
at
these
numbers,
because
we
do
have
an
investment
staff
that
is
larger
than
most
of
our
peers.
E
On
the
other
hand,
to
the
extent
that
that
investment
staff
actually
is
doing
their
work
and
it's
impacted
the
returns
that
more
the
makeup
for
the
associated
costs
with
having
a
larger
investment
staff.
If
we
can
go
to
the
next
slide,
this
is
just
for
personal
services.
The
next
line
is
personal
services,
but
instead
of
basis
points,
actual
dollar
figures,
I
won't
go
through
the
same
explanation
other
than
to
show.
This
is
again
dollar
figures
and
again
this
number
they
seem
a
little
higher
again,
but
I
think
I
I
actually
provided
the
explanation.
E
We
do
have
a
larger
investment
staff,
then
some
of
our
peers
at
our
level
size
and
also
is
impacted
by
the
fact
that
we
are
in
the
Bay
Area.
For
example,
my
experience
having
to
come
in
here
before
I
came
here:
I
was
in
the
in
the
Central
Valley
and
I
can
tell
you
categorially
that
the
salaries
and
benefits
that
we
pay
in
the
Bay
Area
are
considerably
higher
than
what
I
pay
at
the
Central
Valley.
So
that's
also
impacted
with
these
numbers.
E
We
have
the
same
information
in
the
next
two
slides,
but
not
just
for
the
personal
expense,
but
the
administrative
cost
comparison
same
concept.
We
provide
one
for
Federated
police
and
the
combined
and
compared
to
the
the
Prius
across
the
state
and
so
I'm
just
going
to
concentrate
on
the
21
22
years,
which
is
the
last
one
that
we
have
for
actuals
15
basis
points
for
Combined.
Someone
said
plans
versus
13
basis,
points
for
asset
side.
E
Interesting
here
you
can
see
that
at
the
asset
sites
go
higher,
they
know
the
basis
points
go
lower
and
that's
because
first
of
all,
economies
are
scarce,
but
also
you
asset
base
gets
higher
and
you
still
have
the
same
costs
associated
with
the
plan.
So
that's
why,
as
you
have
a
larger
as
a
base,
the
basis
points
be
considered
and
lower,
but
hopefully
what
you
get
out
of
this
concept
here.
This
is
the
same
information.
E
So
no
that
reasoning
behind
it
and
the
whole
goal
here
is
just
to
give
you
a
sense
that
the
numbers
in
general
are
actually
in
line
with
the
ones
with
our
peers
across
the
state,
except
for
perhaps
this
last
screen,
which
actually
you
know
I,
can
see
the
close
to
12
million
dollars
for
the
combined
Samsung
plans
for
2122
is
about
you
know
some
40
or
33
percent
higher
than
the
the
public
pension
plans.
E
Dollar
figures
for
asset
base
between
five
and
and
10
billion,
but
again
part
of
that
is
associated
with
doing
business
in
the
Bay
Area,
and
these
plans
are
all
over
the
state
sure
it
does
includes
our
our
plans
in
peers
in
the
Bay
Area,
but
it
also
includes
in
other
parts
of
the
state
that
Mr
chair
concludes
my
presentation
of
the
budget
myself
and
staff
are
here
this
morning
to
address
any
questions
that
you
may
have
on
the
budget
with
that,
I
would
recommend
you
board
to
approve
the
budget
as
requested.
E
Chair
before
we
go
to
the
next
item,
I
I
know
I,
don't
know.
If
trustee
Menon
received
the
email
from
Council
chin
on.
A
E
D
A
minute
if
I
could
chair
Bardo,
so
I
guess
as
part
of
the
ab2449
procedure,
I'd
like
to
verify
that
no
one
over
the
age
of
18
is
in
the
room.
For
me,
the
room
with
me
with
for
this
meeting.
B
A
B
B
But
we'll
read
these
off
and
then
have
a
moment
of
silence:
notification
of
the
death
of
Dennis
G
Anderson
fire,
captain
retired
December
16
1985
died,
January,
25th,
2023,
Survivor,
apprenticeship
benefits
to
Helen
Anderson
spouse,
another
notification
of
the
death
of
James
Christian
Christensen
fire,
captain
retired
August,
5th
2000
by
December
10
2022,
no
survivorship
benefits
notification
of
the
death
of
John
W
Earnest
fire
engineer,
retired
May,
21st
1996
died,
February,
8,
2023,
Survivor,
finished
survivorship
benefits
to
Janus,
F,
Ernest,
spouse,
notification
of
the
death
of
Michael
Gilligan
Gilligan,
okay,
fire
fighter,
retired
janitor,
7th
1993
died,
January,
24th,
2023
did
I,
say
2023
in
full
time.
O
O
B
B
Moving
on
see,
we
have
item
number
seven
minutes
reports
and
recommendations,
so
investment
committee
right.
D
Thank
you
Franco.
So
if
you
did
have
a
meeting
a
few
days
ago,
I've
discussed
strategic
asset
allocation
and,
as
Prabhu
mentioned,
did
it
ask
a
staff
to
go
in
and
get
us
some
more
information.
So
no
decision
was
made
and
we
have
to
accept
I
guess
the
the
minutes
of
the
special
meeting
from
January
5th.
B
Let's
see
on
your
next
meetings:
April
25th,
2023.,
okay,
update
from
the
chair
of
them
well,
I'm,
sorry,
and
why,
which
one
am
I
on
investment?
Oh.
E
Audit
Mr
chair,
so
you
audit
chair,
is
trustee
and
a
Paddy
and
obviously.
A
E
Is
absent
today,
but
I
can
share
with
you
board
that
you
see
all
the
items
in
there.
He
was
a
lively
discussion
whenever
we
have
an
audit
committee
after
the
federal
board,
they
always
lasts
about
90
minutes
and
that's
because
of
two
things
both.
E
E
Suffice
to
say
that
we
actually
went
over
all
these
items
at
the
the
audit
and
risk
committee
meeting
I
have
asked
human
to
be
available
because
he
did
obviously
he
spoke
about
some
other
recommendations
in
particular
audit
and
then
also
provided
some
detail.
Information
to
the
committee
on
the
2022
internal
staff
survey
and
now
that
we
have
to
repeat
that
here
this
afternoon,
but
I
wanted
to
make
sure
that
humor
was
available
in
the
event
that
you
bore
had
any
specific
questions.
E
R
I,
am
you
still
there?
Okay,
yeah
I
I,
I
I,
it
was,
it
was
a
lively
meeting.
Humon
was
seen
in
the
internal
auditor.
I
think
does
a
very
a
very
good
job,
very
thorough
and
and
as
Roberto
mentioned,
he
discussed
both
the
survey
as
well
as
his
recommendations
and
observations
on
on
the
implementation
of
the
past
recommendations.
E
So
that
concludes
my
comments.
Mr
chair
again,
staff
human
is
not
he's
still
not
at
the
zoom
EC.
Now.
E
B
O
Yes,
Mr
chair
the
minister
there
at
the
B
and
C.
Also
a
chair,
Lonzo
is
going
to
be
on
vacation
and
the
trustee
Howard
Lee
was
graciously
enough
to
step
in.
We
sure
appreciate
that
and
be
March
13th,
because
we
have.
One
of
our
applicants
needs
some
financial
help
and
we
want
to
get
involved
with
that
and
it'll
be
at
12
o'clock
in
numbers.
It's
going
to
be
Roberto
back
at
our
building
on
First
Street,
correct.
E
Have
fifth
floor:
what's
their
room
number
and
it's
at
10
o'clock
right
in.
B
Okay,
we'll
receive
and
follow
the
minutes.
Lastly,
we
got
I
think
Andrew
for
the
personnel.
D
D
So
so
we
did,
we
are
meeting
monthly
and
we
did
have
a
meeting
last
month
and
they
have
another
meeting
coming
up
later
this
month.
Just
going
over.
You
know
the
salary
and
the
plan
to
set
up
an
incentive
compensation
and
we
do
have
the
minutes
from
a
special
meeting
on
January
12th
Jerusalem.
B
Okay,
Stephen
file,
the
minutes
any
proposed
agenda
items.
O
Oh
Mr,
chair
just
a
comment
good
through
the
chair.
You
know
this
last
couple
years
or
what
maybe
it's
been
three
we
haven't
met
and
it
was
really
nice
to
see
everybody
today.
I
want
to
take
the
time
to
thank
all
our
staff.
It
was
a
difficult
time
difficult
for
the
staff
difficult
all
of
us
and
all
of
you
folks
up
here
who
made
adjustments
and
whatever
have
you
remind
the
board
also
that
when
we
had
the
flsa
issue
over
payment
underpayment,
now
we
have
this.
This
board
has
always
been
sensitive.
O
E
Mr,
chair
I,
think
Christy
Santos
reminded
me
of
something
and
I
I
apologize
for
not
saying
this
earlier,
but
I
do
want
to
publicly
thank
the
staff
for
their
work
on
switching
from
what
was
supposed
to
be
a
remote
meeting
to
an
in-person
meeting.
I
know
it
took
a
lot
of
work
for
another
view:
a
lot
of
meetings
coordinated
with
the
city.
E
I
know
it
wasn't
easy
at
the
last
minute
and
so
I
I
do
want
to
publicly
thank
the
staff
for
your
hard
work
and
your
air
force
on
getting
these
accomplished.
So
thank
you
very
much.