►
Description
City of San José, California
Police & Fire Department Retirement Plan Board of March 4, 2021
This public meeting will be conducted via Zoom Webinar. For information on public participation via Zoom, please refer to the linked meeting agenda below.
Agenda https://sjrs.legistar.com/View.ashx?M=A&ID=843742&GUID=C364915E-A3FF-40D2-B493-8103AB2407D8
A
A
A
A
B
B
Let's
go
ahead
and
call
this
meeting
of
the
police
fire
trust
to
order.
I'm
gonna
do
roll
call
andrew
here
here
anita.
B
I
see
her
thanks,
howard,
I'm
here
great
thanks,
ashfar,
I'm
here
thanks
nick
here.
A
B
Nick
dick,
yes
good
morning,
you
can
see
dick
vince
here
I'll
note
that
franco
has
stepped
off
the
board
and
we're
hoping
still,
I'm
I'm
sure
that
he
will
rejoin
us
as
the
police
retiree.
So
we've
got
a
vacancy
right,
hey
right,
roberto!
We
haven't
got
the
new
guy
in
yet
right.
B
That's
great
yeah
new
guy
I've
got
to
start
learning
his
name,
my
bad
and
andrew
lanza,
the
chair,
and
I'm
here
so
orders
of
the
day.
Thanks
for
sending
this
out
michelle,
so
a
reminder
before
the
orders
of
the
day
that
we
will
do
things
in
a
very
ordered
way
because
we're
on
zoom
because
of
the
pandemic.
B
But
you
know,
if
you
have
a
temporal
question,
just
jump
in
and
and
any
of
you
not
just
trustees,
but
youtube
roberto,
harvey
anyone
else.
Go
ahead,
go
ahead,
barbara
jump
in
and
interrupt
the
speaker.
If
you
have
a
temporal
question,
that's
worked
out
very
well
for
this
board.
It
hasn't
been
a
problem.
B
I'm
going
to
be
looking
for
a
motion
to
wave
sunshine
on
the
approval
to
renew
the
following
board:
contracts:
item
2g,
ablenozer,
clarityfx,
bloomberg,
index,
dynamo,
evastment
alliance
and
pitchbook
and
item
4c
discussion.
Action
on
the
office
of
retirement
services
proposed
administrative
budget
for
fy,
21
and
22.
Thanks
roberto
for
getting
us
the
most
up-to-date
copy
in
the
last
couple
days.
That's
helpful!
Is
there
a
motion
to
wave
sunshine
on
those
two.
D
A
B
Hi
and
I'm
drew
lanza,
the
chairman
I
vote.
I
does
anybody
want
to
pull
anything
off
the
consent.
Calendar.
D
B
Oh
okay,
why
don't
we
go
ahead
and
continue
with
this?
Well,
how
does
this
work
hey
harvey?
So
we
should
just
deal
with
1.6
d
now
and
suspend
the
motion
right.
E
No,
why
don't
you
go
ahead
and
vote
on
the
remaining
consent
calendar
and
then
we
can
take
up
1.6
d
separately.
B
I
got
a
second
by
howard,
andrew
how
do
you
vote
hi,
sunita,
hi,
howard,.
A
C
Thank
you,
mr
cheering.
Oh,
I
just
wanted
to
make
sure
that
we,
it
was
known
publicly
the
communication
by
the
city
that
they
will
be
making
the
contribution
beyond
the
cap
for
the
health
care.
I
know
all
of
you
had
a
chance
to
read
it,
but
I
just
wanted
to
to
orally
make
it
a
public
statement.
That's
the
case.
So,
even
though
the
cap
was
exceeded
by
a
small,
a
fraction,
the
the
city
is
going
to
be
paying
the
full
amount.
C
B
B
Motion
by
santos,
second,
by
gardener,
you
approve
of
1.6
d
going
around
the
room
andrew.
How
do
you
vote
hi.
B
Yes,
vince
hi,
it's
as
chairman
drew
lanez.
I
voted
hey
thanks
for
keeping
me
on
the
servie.
How
are
you
beer
over
to
you
bro.
H
Thank
you,
mr
chairman,
before
we
move
on
to
performance
and
makita,
I'd
like
to
share
a
few
numbers,
as
always
with
the
board
so
last
month
the
pension
plan
returned
88
basis,
points,
0.88
and
the
healthcare
trust
returned
six
five
percent
fiscal
year
today
through
march
second,
was
seventeen
point,
eight
four
percent
for
the
pension
plan
and
eighteen
point:
three:
seven
percent
for
the
health
care
trust.
H
Of
course
we
have
we're
having
some
choppy
markets
now
and
that
may
continue
for
a
while,
but
barring
a
significant
market
correction
which
could
happen.
One
never
knows.
H
Hopefully,
if
the
markets
hold
up,
we
will
do
better
than
our
assumed
rate
of
return
for
this
fiscal
year,
and
just
you
know
out
of
interest,
I
you
know
trailing
one
year
number.
This
shows
how
important
the
starting
end
dates
are.
When
we
look
at
performance,
the
trailing
one-year
number
for
the
pension
plan
is
29.13
and
healthcare.
Trust
is
31.97.
H
H
Just
wanted
the
board
to
know
that
we
had
a
really
good
investment
committee
meeting
last
month,
where
we
discussed,
among
other
things,
strategic
asset
allocation
and
the
ic
had
great
feedback
for
makita
and
the
investment
team,
and
we
would
actually
have
a
hold
a
special
meeting
next
week
to
talk
about
some
additional
input
from
the
ic
and
some
additional
options,
and
it
is
my
hope
that
the
ic
will
then
recommend
a
few
mixes
for
the
full
boards
consideration
next
month.
B
I
Sure
so
I
would
probably
I'd
like
to
report
this
out
at
the
council
meeting
on
tuesday
the
the
numbers,
so
the
pension
plan
is
returning
29.,
29
percent
from
when
to
win
from
mark.
H
Council
member
fully
that's
just
the
trailing
one-year
number.
That's
right!
That's
yeah!
I
mean,
I
think,
that's
less
relevant,
but
I
just
wanted
to
share
that
with
the
with
the
board.
I
think
the
most
the
more
relevant
number
would
would
be
the
fiscal
year-to-date
performance
right.
I
I
Well,
I
know
the
market
is
shifting
and,
and
what
happened
last
year
is
really
exciting.
I
have
my
own
pension
plan
that
my
husband
tells
me
about
on
a
daily
basis,
our
little
mortgage
company
and
it's
quite
exciting,
what's
happened
so
it's
exciting
to
see
that
we
benefited
from
really
quick
changes
that
the
that
you
all
made
on
the
pension
board
last
year.
I
H
You
thank
you.
Thank
you,
mr
chairman,
I'd
like
to
turn
this
over
to
newburgh
berman,
to
discuss
item
2b.
J
Okay,
hi
everyone,
I'm
casey
boyer
from
neuberger
berman,
happy
to
be
with
you
all
again.
This
quarter
thoroughly
enjoy
getting
to
join
you
on
on
zoom.
J
So
thank
you
for
having
me,
I
think,
having
updates
and
be
able
being
able
to
present
to
you
quarterly
is
very
helpful,
so
we
can
kind
of
see
the
growth
that's
developing
private
equity
does
take
time
to
develop
and
time
to
invest
through
vintage
years,
and
so
I
think
now
we're
we're
definitely
in
the
process
of
starting
to
see
some
of
those
return
generations
coming
coming
to
fruition
within
the
portfolio.
J
So
again,
thanks
for
having
me
so
we
are
actually
reporting
on
q3.
We
obviously
are
are
already
well
into
2021.
J
Our
year-end
q4
numbers
are
in
the
works
now,
although
it
does
take
a
little
bit
longer
to
report
giving
year-end
audit
requirements,
so
we
typically
expect
to
report
q4
returns
and
performance
at
the
end
of
april.
J
However,
we
have
started
to
receive
some
information
already
I'll
touch
on
this
first
page
here,
page
two,
which
is
q3
and
then
I'll
also
give
a
little
bit
of
background
on
what
we
have
started
to
see
for
q4,
because
I'm
sure
that's
a
question
as
well.
So
here
for
q3
overall,
we
were
very
pleased
with
where
q3
turned
out
with
q2
q1
and
q2
of
2020
were
obviously
the
most
impacted
quarters
from
covid.
J
And
surprisingly,
we
saw
a
very
quick
bounce
back
in
q3.
So
when
you
look
at
the
performance
overall
for
your
portfolio,
q3
returns
and
performance
was
up
about
10
overall,
so
a
very
good
return
to
performance
there.
Overall
we've
committed
approximately
230
million
within
the
portfolio.
We
started
investing
our
strategic
partnership
program
in
2017,
so
we
now
have
three
to
four
years
of
vintage
year
exposure
within
this
portfolio.
J
J
J
So
that
is
your
total
value
compared
to
the
invested
capital
amount.
So
the
contributed
capital
amount
with
a
net
irr
of
12
percent.
J
J
So
for
each
line
item
you'll
see
what
the
gross
performance
is
for
each
one
of
those
investments
and
then
on
the
far
right,
you'll
see
how
that
actually
compares
to
the
market,
so
whether
that's
first
quartile,
second
quartile
third
quartile
et
cetera
the
legacy
investments
which
are
on
pages
three
and
four
those
investments
are
really
most
of
them
are
quite
old
at
this
point,
so
you
won't
see
a
lot
of
performance
changes
so
I'll
I'll.
Take
you
to
page
five,
which
starts
the
newberger
strategic
partnership.
J
Benchmarking
analysis
you'll
see
all
of
the
underlying
fund
investments
here,
along
with
the
relevant
quartiles
again,
the
second,
the
first
quartile
second
quartiles.
Those
quartiles
are
benchmarked
on
the
irr,
as
well
as
the
multiple
of
invested
capital.
J
You'll
see
some
here
that
are
under
a
one
times,
which
you
know
is
not
ideal,
the
second
one
on
page
five,
isn't
it
is
a
fund
investment
into
a
what
we
would
call
a
special
situation
fund.
This
fund
really
is
still
in
the
j
curve.
They've
made
one
investment.
J
J
So
that's
what
you're,
seeing
here,
you're,
seeing
the
fact
that
they
have
one
investment
that
is
held
right
under
one
times
and
then,
unfortunately,
the
j
curve
effects
there
and
that
that
goes
that
same
comment
on
page
six
you'll
see
a
lot
of
the
more
recent
investments
vintage
years,
2019
and
2018.
J
J
So
co-investments
in
secondaries,
the
capital
when
we
commit
to
one
of
those
investments,
really
goes
into
the
ground
immediately
because
it's
in
a
co-investment
scenario,
it's
into
a
direct
portfolio
company,
so
we're
deploying
that
capital
immediately,
whereas
a
primary
fund
we
commit,
let's
say
10
million,
and
they
will
call
that
10
million
from
us
over
time.
So
here
you're,
seeing
the
difference
between
what
has
actually
been
committed
and
what
has
been
invested
and
where
your
capital
is
invested
to
date.
We
also
have
shown
it
on
a
strategic
partnership
and
legacy
combined
basis.
J
One
thing
that
this
will
help
within
your
overall
portfolio,
including
the
legacy,
is
really
to
diversify
more
globally.
Historically,
there
was
quite
a
bit
of
north
america,
so
our
goal
is
always
to
get
that
more
into
a
more
diversified
pie
chart
so
north
america,
anywhere
between
kind
of
the
70
and
80
percent
range
of
the
entire.
J
Portfolio
if
we
turn
to
page
eight,
this
is
a
performance
analysis,
so,
on
the
top
you'll
see
the
performance
among
the
different
investment
types
for
q3
each
one
of
those
investment
types.
The
performance
went
up
so
in
q2.
J
The
performance
for
the
primary
the
gross
tvpi
was
actually
1.08
in
q3.
Here
you
see
it
went
up,
you
see
that
it
went
up
to
1.2.
J
Secondaries
was
at
1.5
and
now
is
at
1.56,
and
then
the
co-investments
was
at
1.19
and
that
has
jumped
up
to
1.24.
So
overall,
each
investment
type
has
been
doing
very
well.
We
saw
a
really
nice
uptick
in
the
primaries,
which
is
a
very
positive
development,
given
typically
those
take
a
little
bit
longer
to
develop.
So
it
was
nice
to
see
that
that
uptick
there.
J
J
This
is
your
portfolio,
the
strategic
partnership
with
newberger
overall
you'll
see
we
have
there,
both
the
q3
and
the
q2
performance
of
your
portfolio,
q3
being
a
1.23
times
and
q2
1.14
times
on
the
bottom,
you'll
see
the
benchmarking
labe,
the
benchmarking
quartiles
there
and
you'll
see
that
currently
on
an
irr
basis.
J
So
that's
what
you're,
seeing
there
page
nine
and
ten
really
just
provide
a
very
detailed
overview
of
each
underlying
investment.
How
much
we've
committed
to
each
investment?
How
much
capital
has
actually
been
called
and
then
over
to
the
right,
the
gross
performance
for
each
investment
overall,
the
the
performance
has
been
great
for
q3.
J
I
mentioned
I'll
I'll
talk
a
little
bit
about
q4
to
wrap
up.
We
are
still
waiting
on
quite
a
bit
of
information
on
q4,
so
this
is
very
early
stages.
Overall,
we've
received
about
40
of
the
financial
statements
that
we
will
receive
for
q4.
J
So
taking
that
into
context
of
what
I'm
saying
this
is
about
40.
So
I'm
giving
you
a
little
bit
of
insight.
J
This
could
very
well
change,
but
overall
those
those
40
of
information
that
we
have
received
the
funds
tend
to
be
up
about
14,
so
we're
seeing
a
range
of
anywhere
from
an
eight
percent
increase
to
a
19
increase
of
underlying
investments
within
kind
of
our
total
newberger
portfolio.
J
That
means
that
overall
for
2020
portfolios
will
be
up
around
25.
So
you
know
when
we
were
sitting
here
a
year
ago.
That
would
not
have
been
our
guess.
We
would
not
have
thought
that
we
would
be
in
this
scenario
at
the
beginning
of
2021,
but
private
equity
has
fared
pretty
well
during
this
most
recent
volatility.
So
with
that
I
will,
I
will
just
open
it
up
to
questions
happy
to
answer
anything
that
you
may
have
on
the
market
or
the
presentation.
F
Hi
casey,
this
is
howard.
I
I
had
a
question
yes
on
on
slide
this
actually
on
this
slide
it.
It
shows
a
great.
F
Great
improvement
that
net
ir
from
q2
to
q3
from
almost
12
almost
12
to
17.-
I
assume
that
was
driven
by
mostly
primaries
in
north
america.
F
J
Yeah,
so
I
would
say
it
was,
it
would
be
a
lot
of
the
primary
investments
I
mentioned.
If
you
look
at
the
top
chart
there,
showing
each
individual
investment
type,
the
biggest
gain
was
the
primaries.
It
went
from
a
1.08
times
to
here,
which
is
a
1.2
times,
so
the
the
q3
jump
in
primaries
was
the
largest
out
of
these
three,
and
it's
also
where
we
have
invested
most
of
your
capital.
So
when
you're
seeing
that
jump,
you
know
we
we
are
doing
about.
J
If
you
look
on
the
actual
the
page
before
it
page,
seven
you'll
see
primaries
on
the
invested
capital
chart
account
for
about
50
percent
of
how
much
capital
you
have
in
the
ground.
So
seeing
that
uptick
there
that's
likely
where
most
of
the
the
value
driving
was
coming
from.
F
Okay,
yeah,
I
just
wasn't
sure
if
it
was
just
coming
from
one
or
two
spots
within
the
portfolio
or
yeah.
I
knew
it
was
primaries,
but
I
thought
there
might
have
been
some
someone
outperformed
in
one
of
the
I
I
I
can
dig
into
it.
Thank
you.
J
Yeah
there's
there
was
quite
a
bit
of.
If
you
go
to
page
six
there,
there
were
a
couple
funds
that
did
really
well.
There
is
one
venture
fund,
in
particular
investment
40
that
had
had
a
really
great
quarter
and
and
was
written
up
quite
a
bit.
The
commitment
amount
for
that
one
is
somewhat.
You
know
lower
than
some
of
your
other
commitment
amounts,
but
overall
what
we
have
seen
across
investments,
a
majority
of
them
are
all
being
written
up.
J
B
Anybody
have
any
more
questions
for
casey.
K
Yeah
sunita,
I
have
a
question
on
page
seven:
how
does
this
compare
with
the
the
allocation
that's
been
made
because,
obviously
there's
a
big
difference
between
is
the
committed
capital
roughly
in
the
proportion
of
what
the
ic
has
approved
for
allocations.
G
Okay,
I'll
go
ahead
and
take
that
okay,
so
so
the
ic
and
the
board
have
approved
an
asset
allocation
that
is
to
buy
out
as
a
whole.
When
we
launched
this
program
in
2017,
we
we
did
kind
of
discuss
with
the
ic
and
what
this
program
would
look
like,
and
this
is
in
line
with
that
expectation.
G
It's
something
that
we
discuss
on
an
ongoing
basis
with
newberger
berman,
but
they
don't
the
board
and
the
ic
don't
explicitly
express
an
allocation
to
these
particular
sectors
or
geographies.
K
J
K
And
one
more
question:
641
million
today
is:
what
percentage
are
we
fully
allocated
to
private
equity
or.
G
Yeah,
so
let
me
I
assume,
you're
talking
about
this.
The
number
on
this
page
right
here.
K
G
So
because
the
commitment
number
never
decreases
over
time,
that
number
will
always
increase
it's,
not
the
best
measure
of
our
current
allocation.
G
I,
while
I'm
sharing
my
screen,
don't
think
I
can
pull
up
the
the
actual
data,
but
we're
very
close.
We
might
even
be
a
little
bit
over
six
percent
target.
K
J
K
J
Yeah,
if
you,
if
you
are
comparing
the
net
performance
to
gross
the
net
overall
net
performance
for
your
portfolio,
the
net
tvpi
is
1.23
times
and
on
page
10,
you'll
see
the
gross
moic
is
1.24,
so
actually
a
very,
very
tight
band
of
difference
in
performance.
H
Thank
you,
mr
chairman.
With
your
permission,
I
would
like
to
invite
nikita
laura
and
jared
to
present
items
to
c
d
and
e
with
the
sufficient
time
for
questions
after
each
item
and
at
the
end
as
well.
L
L
I
have
your
private
equity
report
first
today
and
then
we'll
move
on
to
jared
talking
about
pension
and
healthcare
performance.
As
you
know,
this
is
the
public
version
of
the
report.
We
provide
some
additional
detail
to
your
staff
and
as
casey
from
newberger
berman
noted.
This
is,
as
of
third
quarter,
so
ended
september,
30th
2020,
given
the
lag
in
private
markets
reporting.
L
So
taking
a
look
at
the
next
page,
you
can
see
all
of
the
individual
programs
in
your
private
markets
allocation
and
you
can
see
the
legacy
private
equity,
the
newberger,
vermin
fund
of
one
and
then
the
private
debt,
real
estate
and
real
assets,
programs
and
then
something
new
that
you'll
see
in
this
report
is
the
venture
capital
program
as
well,
which
now
has
two
funds
in
it.
L
If
you
had
invested
in
public
markets
instead
of
private,
is
the
private
debt
program,
which
has
some
legacy,
investments
that
did
not
have
strong
returns
I'll
skip
ahead.
The
private
debt
program
is
first
starting
on
page
three,
it's
a
mature
program
that
is
currently
overweight
relative
to
its
target,
with
an
allocation
of
almost
five
percent
relative
to
three
percent
policy
target.
You
can
see
that
much
of
that
is
from
a
large
commitment
back
in
2013
and
that
we're
trying
to
achieve
integer
diversification.
L
More
recently,
566
million
has
been
committed.
538
million
of
that
has
been
contributed.
So,
as
I
mentioned,
it's
quite
a
mature
program.
L
Taking
a
look
at
the
next
slide,
you
can
see
the
largest
contributions
and
distributions
for
this
quarter
and
then
I
will
move
on
to
slide
six
page
six,
where
I
can
see
the
individual
funds
in
the
program
and
their
returns
on
how
much
has
been
committed,
contributed
and
distributed
and
whatnot.
L
You
can
see
the
internal
rates
of
return
on
the
far
right
relative
to
peer
irrs,
and
I
point
out
you
know
specifically
some
of
the
the
funds
that
were
committed
by
your
current
staff,
like
arrow
mark
in
2017
and
arbor
lane
2
2018
have
had
you
know
very
very
strong
returns,
also
point
out
octagon
clo2
slightly
above
that.
L
If
you
take
a
look
at
page
seven,
you
know
one
thing
we're
going
for
and
your
staff
is
going
for
in
private
markets.
Programs
is
vintage,
your
diversification,
since
these
funds
are
committed-
and
you
never
know
exactly
when
they're
going
to
be
called,
and
we
want
to
not
market
time
too
much,
and
so
you
can
see
on
the
upper
right
here.
That
has
been
achieved
pretty
well
in
this
private
debt
program.
L
L
Private
real
assets
has
been
an
asset
class
that
has
had
a
lot
of
volatility
and
been
hit
up
pretty
hard
by
oil
prices,
occasionally
going
negative
over
the
past
couple
of
years,
and
so
having
a
positive
return
at
all
for
institutional
investors
and
private
real
assets
has
been
a
challenge.
So
this
is
a
strong
return
relative
to
outperforming
the
peer
universe,
page
nine.
You
can
see
the
quarterly
cash
flows.
L
This
is
a
program
that
currently
is
only
at
one
point
two
percent
of
your
total
fund
relative
to
a
three
percent
target.
So
it's
a
pro
program.
That's
still
ramping
up
still
in
sort
of
its
infancy,
and
I
will
skip
ahead
to
look
at
the
individual
funds
on
page
11..
L
These
are
both
infrastructure
funds,
and
so
the
totality
of
those
funds
has
an
irr
six
percent,
which
is
outperforming
the
peer
internal
rate
of
return,
I'll
skip
to
real
estate
on
page
13,
and
the
real
estate
program
is
right
around
its
target,
with
an
allocation
of
3.3
percent
of
the
fund
relative
to
a
three
percent
policy
target,
and
you
can
see
here
that
commitments
historically
were
made.
You
know
generally
every
couple
of
years,
and
and
and
this
is
a
program
that
you
know
is-
is
ramping
up
as
well.
L
Page
14
shows
contributions
and
distributions.
You
can
see
the
contributions
have
outweighed
distributions
as
we
built
up
this
program
and
on
page
16
you
can
see
individual
fund
performance
I'll
highlight
a
couple
of
funds
are
negative.
Those
are
relatively
new
funds
and
2017
funds,
so
only
a
few
years
of
performance
there
and
those
are
still
coming
out
of
the
j
curve.
L
If
you
look
at
episode,
which
is
european
property
investors
and
and
rock
point-
and
I'm
sorry
dra,
you
see
quite
strong
returns
and
the
total
irr
for
your
real
estate
program
is
10.2,
which
is
pretty
much
right
in
line
with
that
10.4
peer,
irr
and
nice
to
be
in
the
double
digits
on
an
absolute
basis,
I'll
highlight
the
news
section
here,
which
is
venture
capital
on
page
18..
L
You
see
a
slightly
less
busy
chart
here,
because
you've
just
got
the
two
funds
and
ramped
up
from
zero
to
0.03
of
the
fund,
so
you
know
obviously
a
program,
definitely
in
its
infancy.
That
takes
some
time
to
ramp
up
here,
but
20
million
has
been
committed
and
1.1
million
of
that
has
been
contributed.
Thus
far,
if
you
take
a
look
at
page
19,
you
can
see
the
two
funds
in
the
program
top
tier
and
north
gate,
and
then
you
can
see
the
not
yet
meaningful
performance
on
page
20..
L
The
rest
of
this
report
has
some
information
on
the
market
environment
for
each
of
these
sectors
of
the
private
markets,
which
you
know
as
as
casey
discussed
as
well.
Is
you
know,
as
of
september
30th
and
I'm
happy
to
answer
any
questions
on
that,
but
in
the
interest
of
your
time,
I'll
wrap
up
my
comments
and
take
any
questions.
M
M
M
H
Thank
you
vince
for
that
question,
I'm
going
to
ask
brian
to
jump
in
and
and
laura
to
also
add
any
comments.
G
Sure
so
I
I
mean
I'd
love
to
say
you
know
we're
just
really
good
at
what
we
do,
but
it's
it's
it's
not
that,
frankly,
you
know
when
we
started
becoming
significantly
more
disciplined
in
building
a
private
markets
program
really
across
all
of
our
asset
classes.
G
B
L
I
I
think
mr
star
is
being
modest
in
saying
that
it
has
nothing
to
do
with
with
staff
expertise.
L
I
think
a
private
debt
is
a
strength
of
your
staff,
and
you
know
the
the
three
funds
2010
funds
that
make
up
such
a
large
weight
in
private
debt
were
designed
for
an
opportunistic
asset
allocation
that
was
taking
advantage
of
the
environment
for
middle
market
lending
back
following
the
global
financial
crisis
and
that
a
prior
staff
had
had
conviction
in
and-
and
you
know
to
to
brian's
comments-
you
know,
there's
a
much
more
disciplined
process
now.
There's
you
know
back
when
those
investments
were
made.
L
M
Great,
I
appreciate
the
response
and
I
do
have
confidence
in
what
you're
doing
with
the
program.
Now.
I
really
appreciate
that
what
what
I'm
curious
also
is
in
this
low
interest
rate
environment
and
some
of
the
dislocations
in
certain
sectors
of
the
economy,
are
you
seeing
opportunities
that
may
be
greater
today
on
the
private
debt
side
versus
the
public,
fixed
income
markets.
G
Gosh,
I
have
so
many
opinions
how
to
filter
that.
So
the
the
quick
answer
is
today.
I
actually
don't
see
a
lot
of
fantastic
opportunities.
The
private
markets,
similar
to
the
public
markets,
have
rebounded
into
valuations
that
are
frequently
difficult
to
justify.
F
Yeah
hi
hi,
laura
and
brian.
I
have
a
question
going
back
to
real
estate.
Laura
you
mentioned
that
it
seems
to
be
tracking
and
given
the
way
2020
is
occurring
and-
and
I
guess
is
their
point
of
view-
how
real
estate
will
continue
to
perform
for
the
balance
of
the
year.
G
Dinesh,
if
you're
on
the
line,
that
would
be
a
great
question
for
you
yeah.
This
is
dinesh
just
to
jump
in.
I
think
it's
still
early
to
see
how
it's
gonna
play
out,
but
so
far
this
pullback
has
been
different
than
some
in
the
past,
because
there
haven't
been
as
many
bad
credit
arrangements,
so
real
estate
owners
aren't
as
distressed
as
they
have
been
in
prior
cycles.
So
the
the
stress
has
been
more
directly
within
the
retail
and
hospitality
sectors
and
the
other
sectors
that
have
some
uncertainty
like
office.
G
But
then,
as
some
more
news
about
the
vaccine
started
coming
out,
a
lot
of
the
sellers
that
were
looking
to
liquidate
some
of
their
properties
are
starting
to
hold
on
so
there's
still
less
price
discovery
on
where
properties
will
sell
at
and
where
evaluations
will
eventually
end
up
at
so
just
to
share
some
color
on
where
we're
looking
at
opportunities
for
2021
is
groups
that
have
ability
to
turn
over
different
rocks
and
find
good
opportunities,
both
on
an
off-market
basis
or
really
custom
special
situations
where
there
might
be
an
owner,
that's
under
capitalized
or
non-institutional
owners
that
have
real
estate,
that
they'd
like
to
unload
or
partner,
with
someone
else
that
can
help
them
improve
the
operations.
G
So
we're
looking
at
those
groups
that
have
experience
in
these
kind
of
situations
to
take
advantage
of
this,
and
perhaps
in
2021
22.
There
might
be
more
distress,
although
it'll
be
less
than
past
cycles
because
of
the
improved
lending
standards
that
have
been
in
place
over
the
last
five
to
ten
years.
L
N
Thanks,
laura
and
hello
everybody
good
morning
so
just
start
here
with
a
couple
of
economic
highlights
and
market
updates
for
the
quarter
before
adding
some
details
on
your
excellent
performance
for
the
past
year,
so
for
the
fourth
quarter,
really
an
extension
of
the
third
quarter
in
terms
of
being
a
risk-on
environment
and
actually
more
so,
when
you
look
at
just
the
absolute
level
of
returns,
you
see
here,
double-digit
returns
in
several
equity
asset
class
markets
as
well
as
commodities.
N
Note
on
the
bottom.
You
see
the
barclays
ag
barely
in
positive
territory.
It
was
also
the
lowest
on
this
chart
in
the
third
quarter,
with
a
similar
return
and
year-to-date
2021,
it's
actually
been
negative,
so
I
think
it's
interesting
when
you
think
about
it
from
the
plans
fiscal
year
start
from
july
1st,
until
tuesday
of
this
week,
the
market
has
offered
more
than
30
returns
in
something
like
the
russell
3000
versus.
N
Basically,
a
zero
percent
return
in
the
barclays
act,
so
a
huge
spread
there,
certainly
back
to
the
fourth
quarter
here,
you
know
a
lot
of
this
positive
momentum
that
equity
markets
saw.
There
was
some
election
clarity
and
then
also
positive
vaccine
news
and
its
implications
on
economies
opening
back
up
page
five.
I
think
there's
a
couple
of
interesting
dynamics
that
have
played
out
here
in
the
past
year
in
particular.
N
Something
we've
talked
about
before
is
growth
versus
value,
so
just
to
look
at
the
fourth
and
fifth
lines
down
and
also
1
000
growth
in
value.
If
you
look
at
the
one
year,
column
you'll
see
a
35
difference
between
the
two,
which
is
about
as
high
as
we've
seen.
Something
else
interesting,
that's
happened.
N
If
you
look
in
the
foreign
equity
box
down
at
the
bottom
of
that
box,
you
see
emerging
markets
in
local
currency,
up
about
20
percent
and
then
the
line
right
above
it
is
us
dollar
returns
at
18.3,
so
pretty
similar
strong
returns.
If
you
go
up
a
couple,
rows,
you'll
see
the
ifa
and
local
currency,
so
developed
markets
in
their
own
currency
were
basically
flat,
so
trailing
emerging
markets
quite
a
bit,
but
their
currencies
did
well
against
the
dollar.
N
So
you
see
that
eight
percent
return
for
the
fifa
and
dollars
was
basically
just
the
currency
returns.
I
think
is
is
interesting
over
the
past
year
and
finally,
on
the
10-year
column,
if
you
look
on
the
far
right,
you'll
see
the
russell
3000
up
13.8
versus
the
barclays
aggregate
down
here
at
3.8,
so
for
the
past
10
years,
you've
seen
a
thousand
basis
points
per
year
on
average
outperformance
of
basically
the
u.s
market
over
u.s
bonds.
N
So
if
I
skip
ahead
to
page
27,
we
can
talk
about
the
plan
in
particular,
so
you
see
4.4
billion
in
assets
at
quarter
end,
that
is
up
600
million
from
the
end
of
2019
and
most
of
that,
obviously
from
investment
gains.
N
N
Nine
percent
return
in
the
single
quarter
just
slightly
trailing
some
of
these
benchmarks
over
for
the
fiscal
year-to-date
period
of
16
in
the
six
months
that
that
period
covers
and
ahead
of
the
policy
benchmark
and
then
for
the
for
the
one-year
period
of
13.7
well
ahead
of
the
of
the
top
three
benchmarks:
we're
showing
here:
14th
percentile
for
the
calendar
year,
2020
return
and
that's
out
of
about
80
peers
in
the
universe
of
pension
plans,
public
public
plans
over
a
billion
in
assets,
so
I'll
touch
on
a
couple
of
individual
funds
here
quickly.
N
If
I
skip
ahead
to
page
32.,
so
value
actually
did
well
relative
to
growth
in
the
fourth
quarter
in
particular,
and
if
you
look
at
the
bottom,
artisan
global
value
took
advantage
of
that.
I
think
value
did
better,
just
as
as
more
cyclical
companies
in
there
with
the
with
the
news
of
vaccines
and
economies,
opening
back
up
started
to
turn
around.
So
you
see
the
artisan
global
value
fund
here,
returning
22
in
a
single
quarter,
good
for
a
top
quintile
return
among
its
peers.
N
N
N
I'll
point
out
on
the
far
left
column.
You
see
that
the
14th
percentile
return.
This
is
for
the
one
year
period.
This
whole
page
I'd
also
point
out,
though,
in
the
second
column,
that's
risk
or
standard
deviation,
and
if
you
look,
the
plan's
percentile
rank
is
also
done
well
here.
So
the
higher
you
are
up
on
this
bar
the
better,
so
a
top
quartile
showing
in
standard
deviation,
and
so
you
put
those
two
together.
You
get
the
third
column,
which
is
sharp
ratio
or
risk
adjusted
return.
N
And
you
see
the
plans
rank
among
peers
is
in
the
fifth
percentile,
so
excellent
results
here
for
the
one
year
and
then
I'll
wrap
up
comments
here
on
page
61.,
just
to
show
trailing
returns
versus
peers
and
mainly
highlight
that
the
three-year
number
there
you
see,
the
39th
percentile
for
the
fun.
So
the
the
plan
now
on
a
three-year
basis
is
besting
more
than
60
percent
of
peers,
so
that
just
kind
of
wrapped
up
my
formal
comments
on
the
plan
and
happy
to
have
laura.
A
Hi
drew
if
I
may
jump
in
that's
fish.
A
And
I
know
we've
discussed
the
private
debt
and
the
legacy
problem.
A
L
I
think
there's
there's
two
issues
here,
one
being
that
this
is
a
time
weighted
return,
which
is
not
necessarily
the
best
way
to
measure
private
markets
performance,
since
these
managers
should
be
measured
by
how
they
call
capital
and
distribute
it,
which
this
does
not
take
into
account
and
that's
why
we
really
try
to
focus
on
the
internal
rate
of
return
or
the
dollar
weighted
return
on
the
private
markets
reports
so
shorter
term
time.
Weighted
performance
is
really
always
sort
of
jumps
around
quite
a
bit
for
private
markets,
and
you
know
to
your
point.
L
L
L
You
know
if
you're
going
to
lock
up
your
capital
and
invest
in
something
illiquid
you
want
to
do
better
than
what
you
could
have
done
in
public
markets,
but
in
the
short
term
you
know
this
benchmark
is
never
going
to
be
negative,
no
matter
how
decimated
the
or
it's
very
rarely
going
to
be
negative,
because
the
benchmark
has
to
be
down
more
than
two
percent
in
debt,
which
is
is
pretty
rare.
So
I
think
it's
it's
a
it's
an
issue
of
the
time
weight
of
return
and
the
issue
that
you
know.
A
So
the
the
fund
performance
16-
that's
great-
the
investment
benchmark
16.6
this
fiscal
year
to
date,
what?
How
is
the
investment
benchmark
performance
calculated.
L
We
have
a
slide
towards
the
end
of
the
of
the
book
that
that
goes
into
the
it
might
be
like
the
very
last
page,
or
here
we
are
so
there's.
So
if
you
recall,
when
cortex
did
their
big
governance
project,
they
put
in
place
several
different
benchmarks,
so
so
they're
all
weighted
in
different
ways
and
use
different
underlying
benchmarks
that
are
designed
to.
So
the
policy
is
what
you
know.
L
You
hope
to
beat
based
on
your
allocations
and
then
the
low-cost,
passive
and
the
investable
are
both
ones
that
are
using
benchmarks
that
you
or
I
could
go
out
and
actually
invest
in,
whereas,
for
example,
some
people
use
like
a
pure
universe
in
their
policy
event.
So
you
can
see
here
on
slide
67
the
low-cost
password
portfolio.
L
It
is
a
blend
of
of
benchmarks
that
that
anyone
could
go
out
and
and
buy
and
there's
gonna
be.
There's
always
you
know
back
to
the
benchmarking
question.
You
know
it's
pretty
difficult
to
sort
of
design,
a
benchmark
that
is
really
showing
you
all
the
ways
that
you're
either
out
or
underperforming
and
helping
us
all
be
intellectually
honest
and
that's
one
reason.
We
have
three
benchmarks
here,
which
is
a
bit
unique.
L
A
Okay,
and
does
the
fact
that
the
private
investments
are
kind
of
lagged
a
quarter,
does
it
affect
how
these
measurements
are
made
and
how
the
comparison
looks.
L
That's
an
excellent
point.
Yes,
it
does
when,
when
we
use
a
pure
universe
for
private
markets,
then
that
is
going
to
be
lagged
just
like
your
performance,
but
when
we're
using
something
like
the
russell
3000
like
we
do
in
these
low-cost
passive
portfolios
or
the
investable
benchmark,
then
that's
exactly
right.
You
haven't
yet
captured
the
returns
from
the
fourth
quarter
for
private
markets
in.
B
Thanks
for
anything
else,
for
jared
or
laura.
M
I've
got
a
couple
questions
here,
actually
one
if
we
can
get
an
update
on
venture
capital
and
this
might
be
more
for
prabhu.
Actually,
we
are
making
progress,
but
it's
slow
progress
and
I'm
just
curious.
Do
you
feel
like
it's
realistic
that
we
will
get
to
our
targeted
allocation
over
the
next
three
to
five
years?.
H
Great,
it's
an
excellent
excellent
question:
vince
not
just
for
venture
but
for
overall
private
markets
and
our
approach
to
asset
allocation
and
managing
the
portfolio.
H
So
I'm
gonna
actually
ask
I'm
gonna
respond
at
a
high
level
in
terms
of
our
approach
and
philosophy,
I
think
that'll
be
useful
for
the
board
to
know
as
well,
and
then
I'm
going
to
ask
brian
to
jump
in
and
give
some
specifics
on.
Are
we
on
pace
with
our
pacing
plan?
H
So
as
as
most
board
members
knew
know,
venture
is
a
relatively
new
asset
class
for
us.
The
boards
first
approved
an
allocation
to
venture
towards
the
end
of
2018,
and
we
really
started
investing
only
last
year
towards
the
end
of
2019
and
last
year,
and
so
deployment
and
venture
is
really
a
function
of
two
things.
One
is
time
and
the
other
is
resources
and
in
terms
of
time,
just
to
give
you
an
example.
H
I
was
talking
to
the
cio
of
the
university
of
minnesota
yesterday,
very,
very
well,
put
together
venture
capital
program
and
really
trying
to
exchange
notes
and
learn
from
him
and
minnesota
has
a
32
percent
allocation
to
venture
significant.
But
that's
more
in
line
with
you
know,
generally
endowments
have
very
high
exposure
to
venture
because
of
access
and
resources
and
so
on,
but
in
minnesota's
case
the
venture
program
actually
started
in
2002,
and
so
they
they
also
had
these
initial.
You
know
this.
H
So
in
our
case
you
know
what
we're
really
trying
is
to
establish
relationships
in
the
business
to
be
good
citizens
to
be
considered
a
good
lp,
and
I
think
the
world
is
getting
out
that
san
jose
is
can
be
a
reliable,
long-term,
limited
partner,
and
I
would
call
what
will
happen
really
is
there
will
be
a
multiplier
effect,
so
initially
the
going
will
be
slow.
We
reach
out,
and
we
make
some.
H
You
know,
contacts
in
the
business
and
and
over
time
it
will
have
a
multiplier
effect
and
we
will
get
more
and
more
inbound
inquiries
more
than
we
can
handle
really.
So
that's
that's
sort
of
the
function
that
time
plays
in
deployment.
The
second
is
resources,
and
you
know
this.
H
The
board
has
been
very,
very
supportive
of
all
the
resources
that
we've
asked
for
the
tools
that
we
use,
for
example,
last
year
in
venture
we
do
need
an
additional
body,
and
last
year
we
put
in
for
an
additional
analyst
in
venture
and
it
both
boards
actually
approved
that,
but
unfortunately,
because
of
kovid
there
was
a
freeze
on
all
new
positions
at
the
city,
and
so
this
year
we
are
actually
going
to
go
back
to
the
city
and
ask
for
that
additional
body
and
and
the
reason
this
is
important.
H
H
In
fact,
when
we
discussed
asset
allocation
at
the
ic
last
week,
you
know
one
of
the
mixes
that
the
sc
commented
on
and
wanted
us
to
do.
Further
work
actually
increases
illiquid
assets
from
the
current
25
to
28,
so
private
assets.
H
When
you
manage
private
assets,
it
requires
it's
more
resource
intensive,
so
it
does
require
more
resources
in
terms
of
people
and
tools,
and
I'm
thankful
that
the
board's
been
very
supportive
of
our
approach
and
has
given
us
all
the
tools
that
we
need
and
I'm
hoping
that
we
will
get
that
additional
body
this
year
and
I've
also
sort
of
leaned
on
the
board
and
certainly
trustee
lanza
has
been
extremely
generous
with
his
time
and
he's
been
a
source
of
great
education
for
us
and
despite
the
risk
of
stepping
out
of
the
house
during
covert
times,
I've
actually
pulled
him
out
and
had
a
couple
of
meetings
with
him
along
with
a
bunch
of
people.
H
So
thanks
trustee
lanza
for
that.
But
to
answer
your
question
very
specifically:
vince
I'm
going
to
ask
brian
to
actually
give
us
to
talk
about
facing
plan
and
rv.
Are
we
behind
the
pacing
plan?
Are
we
in
line
and
so
on?
Brian
over
to
you.
L
G
You
run
the
risk
of
if
you
deploy
too
much
soon
greatly
overshooting
your
target
asset
value
because
of
that
duration.
What
we're
targeting
is
hitting
our
target
net
asset
value
somewhere
between
years,
seven
and
nine
of
the
program
to
minimize
any
risk
of
a
substantial
overshoot,
because
I
do
have
a
very
high
degree
of
confidence
that
will
be
successful
in
this
asset
class,
and
that
means
that
our
performance
should
meet
or
exceed
the
median,
which
is
the
expectation
that
we
build
into
our
pacing
plan
objectives.
M
I
appreciate
the
thorough
responses
on
that.
That's
very
helpful.
Second
question
related
to
market
neutral
strategies.
When
you
go
deeper
into
the
report
in
page
43
in
particular,
you
do
list
the
underlying
investments
and
I
know
in
the
absolute
return
space
we
do
have
various
hedge
funds,
but
for
the
market
neutral
strategies,
maybe
I'm
okay.
Actually
I
just
realized
my
own
mistake.
It
is
listed
under
relative
value,
so
scratch
that
question.
M
Let
me
move
to
the
next
question.
On
page
51
and
52,
we
show
attribution
analysis
and
it
looks
like
there's
been
a
drag
on
our
short
term
investment
grade
bonds,
but
I
can't
determine
where
that
drag
is
actually
coming
from.
H
O
Yeah
thanks
really
good
question
and
the
answer
is
very
complicated.
So
the
last
time
we
had
an
explicit
short-term
investment
grade.
Bonds
allocation
was
back
in
april
2020.
So
that's
that
short-term
ig
bonds
line
after
the
plan
re-risked
that
that's
the
last
major
asset
allocation
change.
We
had
a
short
duration
was
folded
into
the
larger
ig
bonds
bucket,
which
would
be
that
investment
grade
bonds
line
near
the
bottom
of
the
page.
O
It
would
be
easier
to
see
if
there
was
a
direct
offset
from
short
duration
to
ig
bonds,
but
it's
difficult
in
this
report
looking
at
the
one
year
back,
because
it's
not
comparable
time
periods
between
the
short
short
term
and
just
normal
ig
bonds.
Even
though
it's
a
one
year
back
period,
that's
because
ig
bonds
has
been
a
live
allocation
that
entire
one
year
time
short
term
was
only
even
if
you
look
back
one
year.
O
If,
if
you
get
a
chance
to
look
back
to
the
june
2020
quarterly
report,
it's
a
little
clearer
in
that
report,
you'll
see
a
negative
allocation
effect
for
short
duration,
offset
by
a
similar
positive
allocation
effect
to
ig
bonds.
O
So
this
is,
I
think
this
is
an
artifact
basically
of
the
implementation
of
that
asset
allocation
change.
We
did.
M
M
So
this
jared
was
looking
at
the
one
year
previously,
but
if
we
look
at
the
five
year
very
interesting
things
jump
out
to
me-
and
it's
very
similar
also
for
the
10-year-
we
in
that
second
column
in
terms
of
our
standard
deviation,
have
consistently
de-risked
the
plan.
We've
had
low
standard
deviation,
but
to
the
point
that
we
had
de-risk
too
far
and
our
performance
ranking
was
consistently
following
and
the
bottom
decile
of
our
peer
group
were
lower,
even
though
our
risk
adjusted
returns.
Weren't
that
bad.
M
M
We
still
have
great
risk,
adjusted
returns,
but
it's,
I
think,
the
structure
that
prabhu
has
brought
to
the
portfolio
the
enhanced
value
of
the
investment
selection.
The
team
has
done
in
in
manager
selection
that
we're
now
seeing
not
only
a
plan
that
has
low
risk,
but
we
are
no
longer
at
the
bottom
of
the
barrel
in
terms
of
investment
results
versus
our
peers.
M
Clearly,
the
one-year
results.
If
you
know,
statistics
has
a
significant
impact
on
the
three-year
result,
but
in
general
we're
moving
in
the
right
direction,
and
I
just
want
to
point
that
out.
I
think
it's
an
important
balancing
act
that
we've
constantly
struggled
with
in
terms
of
considering
the
profile
of
the
members
of
the
plan,
the
maturity
of
the
plan
and
and
the
leverage
that
our
plan
brings
to
our
planned
sponsor.
M
Having
a
lower
risk
plan
makes
sense.
But
clearly
we
had
gone
too
far
for
a
while
and
and
prabhu's
brought
it
back
in
the
right
direction.
So
kudos
there.
H
Vince,
thank
you
for
pointing
that
out
and,
if
I
may
add
something
just
to
clarify
my
earlier
just
to
add
to
my
earlier
comments
on
asset
allocation,
it's
important
for
our
stakeholders
to
understand,
and
we
point
at
this
time
and
again
we
run
a
sophisticated
program
and
it's
not
because
we
want
to
run
a
sophisticated
program.
We
it's
not
like.
We
want
to
invest
in
private
equity
and
venture
capital,
and
we
we
realize
that
these
managers
command
higher
fees.
So
it's
not
like.
H
So
it's
really
a
function
of
you
know
our
expected
rate
of
return,
our
liability
stream
that
we've
actually
designed
this
asset
mix,
and
while
we
continue
to
reduce
costs
wherever
possible,
the
fact
remains
that
we
do
have
a
quarter
of
the
portfolio
in
private
and
illiquid
assets,
and
I
just
wanted
to
point
that
out
for
the
benefit
of
all
our
stakeholders.
B
Well,
let
me
you
know
vince
you're
generous
with
the
compliments,
so
let
me
turn
one
your
way.
I
just
looked
on
the
calendar.
It's
going
to
be
three
nine
years
in
three
days.
That
would
be
that
rainy
day,
offside
days,
mansion
and
vince.
H
N
Sounds
good!
Yes,
you
see
219
million
here
at
the
end
of
the
year,
compared
to
1231
of
2019,
it's
a
50
million
difference
about
50
50
from
cash
flows
and
investments
everything
their
target
here
as
far
as
performance,
some
strong
results
here
you
look
at
top
quintile
results
for
the
quarter
for
fiscal
year
today
and
for
the
one
year
period,
so
strong
across
the
board.
There
there's
mostly
passive
investments
here,
but
a
couple
that
aren't
I'll
highlight
on
page
26
toward
the
bottom.
You
see
black
rock
and
clarion
lion
in
the
core
real.
F
N
Space
have
both
done
better
than
the
benchmark
over
the
past
year.
It's
also
good
to
see
commodities
on
the
bottom.
There
were
some
strong
returns
on
an
absolute
and
relative
basis,
since
they've
had
an
otherwise
rough
ride
for
a
while
and
then
finally
I'll
just
wrap
it
up
on
page
34,
just
to
show
again
a
graphical
representation
of
the
percentile
ranks.
I
mean
strong
for
three
and
five
years
as
well,
so
with
that
I'm
happy
to
take
any
questions.
H
Back
to
you,
bro,
thank
you,
mr
chairman,
and
just
on
healthcare
trust
just
for
the
benefit
of
the
full
board.
While
we
do
our
strategic
asset
allocation
exercise
for
the
pension
plan,
we're
also
looking
at
healthcare
trust,
and
we
will
come
back
with
the
recommendations
at
the
next
board
meeting
with
that.
Mr
chairman,
I'd
like
to
go
to
item
2f
discussion
and
action
on
the
city's
pre-funding
option
for
fiscal
year
2021-22,
and
this
was
actually
discussed
at
the
ic
last
month,
and
the
ic
did
make
a
recommendation.
O
Hi
thanks
for
that,
let
me
take
a
little
bit
of
a
step
back
and
start
with
a
little
bit
of
context
for
the
trustees
that
weren't
able
to
be
there
at
the
investment
committee
so
and
every
year.
The
plan
sponsor
that
is
the
city,
has
the
option
to
determine
the
frequency
of
their
contribution
payments
to
the
plan
within
some
reasonable
parameters.
O
So
the
default
assumption
used
to
calculate
the
the
dollar
amount
of
the
contribution
of
the
city's
contribution
is:
is
bi-weekly
along
alongside
the
payroll
calendar
so
effectively.
The
city
ends
up
paying
alongside
the
employees
contribution,
but
the
city
does
have
the
option
to
change
that
schedule,
change
that
frequency
and,
in
the
past,
they've
pre-funded
their
contribution
to
the
plan
in
a
lump
sum
at
the
beginning
of
the
fiscal
year.
O
So
they
do
this
in
no
small
part
because
they
get
a
discount
for
paying
upfront,
which
is
just
right,
basic
time
value
of
money,
as
it
turns
out,
the
the
size
of
the
discount
is
determined
by
the
board
so
and
with
the
requirement
that
it
actuarially
equivalent
to
the
default
method
of
payment.
O
O
So
a
few
years
back
staff
recommended
a
policy
to
vary
the
discount,
based
on
based
on
economic
and
financial
conditions.
This
this
policy
was
introduced
in
2014,
the
you
know,
if
you
think,
back
a
few
years,
the
economy
had
been
in
a
long
expansion
since
the
financial
crisis,
everyone
was
worried
about
overpriced
markets.
O
So
the
concern
was
that
well,
when
the
city
prefunds
their
contribution,
the
plan
ends
up
bearing
the
risk
that
the
return
on
those
pre-funded
amounts
through
the
year
doesn't
meet
the
discount
rate
and
in
an
expensive
market
that
risk
could
be
elevated
right.
So
the
recommended
recommended
policy
tried
to
remedy
this
by
adjusting
the
size
of
the
pre-funding
discount
based
on
economic
and
financial
conditions.
O
So
in
our
current
situation,
with
the
kobe
crest
is
just
you
know,
maybe
a
little
less
than
a
year
ago-
we're
not
really
at
the
point
yet
where
the
discounts
weren't
intended
to
start
phasing
in
and
that's
the
basis
for
the
recommendation
to
give
the
city
the
full
discount.
O
There
are
three
attachments
to
the
item.
So
one
was
the
original
staff
memo
from
2014
that
outlines
this
methodology.
O
There's
a
second
attachment
from
fiduciary
council
explaining
from
the
the
city's
municipal
code,
basically
who
does
what
to
whom
in
this
in
this
process
and
then
the
final
memo
is
just
the
current
recommendation
to
follow
the
existing
methodology.
K
Let
me
jump
in
trust,
your
answer,
so
jay
I'm
a
little
confused
so
who
bears
the
risk
of
the
if
it's
pre-funded,
who
bears
the
risk
of
the
the
difference
between
the
discount
rate
and
is
it
the
plan
or
the
city.
O
Right,
that's
essential.
Well,
that's
essentially
the
the
plan
in
the
sense
that
we
receive
those
funds
at
the
beginning,
beginning
of
the
fiscal
year,
it's
discounted,
let's
say:
there's
no
discount,
then
our
the
hurdle
for
that
is
basically
the
assumed
rate
of
return
for
the
year.
If
we
receive
those
funds
at
the
beginning
of
the
fiscal
year
and
the
market
bottoms,
our
market
market
falls,
then
you
know
it's
not
as
though
the
city
is
going
to
send
some
kind
of
makeup
amount
for
that
we
received
the
funds
we've
been
given
them.
O
The
or
they've
paid
us
the
actuarial,
equivalent
of
their
annual
contribution
that
they
would
have
normally
paid
on
a
bi-weekly
basis.
At
the
end
of
the
day,
though,
if
it
creates
a
you
know,
additional
ual,
then
the
you
know
the
sponsor's
on
the
hook
for
that,
depending
on
which
tier
for
some
portion
of
that.
O
No
so
remember,
this
city
has
the
option
to
pre-fund,
so
they
get
to
choose
whether
they
do
the
the
the
default
method
of
contribution
payment
which
is
bi-weekly
or
they
you
know
right.
They
may
choose
to
pay
up
front
the
board.
You
all
decide
how
much
of
a
discount
to
give
them
for
paying
upfront
and
the
the
recommendation
is
to
continue
with
the
existing
policy
in
this
case,
to
give
them
the
full
discount.
B
Okay,
yeah,
it's
a
little
confusing
to
you.
It
took
me
a
while
to
anything
else
for
jay
on
this.
M
I'll
make
a
motion
that
we
accept
the
recommendation
and
grant
the
city
the
full
discount.
B
Motion
by
cesar
is
second
by
santos.
Let
me
scroll
down
the
list
andrew.
How
do
you
vote
hi
sunita?
How
do
you
vote
hi
howard?
How
do
you
vote
yes,
ashvar.
B
B
Vince
and
then
this
is
chairland's
eyebrow.
That
motion
carries
yeah
a
good
point
back
to
your
peru
for
that
last
item.
Thanks
for
bailing
me
out
guys.
H
Thank
you,
mr
chairman.
So
the
next
item
is
reads:
approval
to
renew
the
following
board
contracts
and
there's.
Actually,
the
language
is
slightly
incorrect
and
I
take
full
responsibility
for
that
and
it's
not
the
fault
of
our
excellent
admin
staff.
By
the
time
I
caught
my
own
error,
it
was
too
late
to
change
the
language,
so
it
should
really
read
approval
to
renew
the
following
board:
contracts,
able
noser
clarity,
fx
and
dynamo
software.
H
The
other
three
items
mentioned
on
that
list
do
not
need
board
approval
at
this
point.
So
for
those
items,
three
items
able
nozzle
clarity,
fx
and
dynamo
software.
I'm
going
to
turn
this
over
to
our
operations
manager.
Mr
ron
kumar.
P
Good
morning,
and
thank
you
so
as
probably
mentioned,
that
the
three
contracts
that
we're
asking
for
renewal
are
able
notion
and
clarity
fx,
which
are
trading,
cost
analysis
service
that
they
provide
for
our
boards.
We
request,
we
are
requesting
three
are
contract
extensions
and
these
contracts
have
30-day
cancellation
notice
on
on
there
and
dynamo
research
system
is
a
software
program
that
we
use
for
tracking
manager,
contacts,
storing
documents
and
retaining
records
and
requesting
two-year
extension
on
this
contract,
and
with
that
I'll,
take
any
questions
that
you
may
have.
H
Just
just
one
thing
to
add
to
what
ron
just
mentioned,
you
may
ask
the
question:
why
are
we
renewing
this
for
two
two
and
three
years
and
not
on
an
annual
basis,
so
there
are
some
cost
savings
associated
with
actually
being
able
to
renew
them
longer
term
and
ron
actually
has
the
actual
dollar
amounts.
If
you
need
them,
so
that's
why
we
decided
that,
instead
of
renewing
it
on
an
annual
basis,
we
would
do
it
for
a
slightly
longer
period
of
time
in
order
to
get
those
cost
savings.
P
Yes,
so
if,
if
we
were
renewing
this
for
a
year,
the
cost
would
be
about
10
to
15
percent
higher
than
renewing
it
for
three
years
we
do
have
the
30
day
clause
germination
clause.
So
if
we
decide
to
terminate
the
right
the
contract,
we
are
able
to
do
that.
F
Ron
or
prabhu,
this
is
howard.
Just
a
quick
question.
I
assume
you're
very
happy
with
services.
Have
you
ever
in
the
past
switched
you
know,
terminated
one
and
switched
to
someone
else.
H
Yeah
no
great
question
trustee
lee:
you
know,
since
I've
been
here,
I've
been
very
happy
with
services
of
abel
noser
and
clarity
fx
and
they
actually
report
to
to
the
ic
every
year
and
they
did
report
out
to
the
ic
last
fall
and
they'll
do
so
again.
This
fall.
B
Any
any
other
questions,
if
not
I'll
make
the
motion,
as
peru
noted,
there's
a
slight
glitch
here.
So
I'm
going
to
move
that.
Let
me
make
the
note
that
the
memo
is
correct.
The
agenda
is
slightly
misleading,
so
the
motion
is
to
approve
the
contracts,
are
able
now
clarity,
fx
and
bloomberg
in
your
index
services,
and
let
me
note
that
we
don't
need
to
approve
dynamo,
I.e,
vestment
alliance
or
pitch
book.
That's
my
motion
to
have
a
sec.
H
There's
a
slight
correction
in
what
you
said.
I
think
you
you
said
we
need
approval
for
bloomberg.
Actually,
we
need
approval
for
dynamo.
B
Oh,
I'm
sorry,
I'm
sorry!
Thank
you.
Peru
is
correct
and
the
motion
is
to
prove
able
clarity
and
dynamo
dick.
Do
you
accept
that
amendment
secondary
motion,
dick
santos,
approves
that
let's
go
down
andrew?
How
do
you
vote
hi.
B
H
Thank
you,
mr
chairman.
That's
all
we
look
forward
to
continuing
our
saa
discussions
at
the
ic
next
week
and
to
bring
it
to
the
full
board
next
month.
B
C
C
So
this
is
march,
I
I
will
hope
at
the
earliest
that
we
can
have
one
or
both
of
those
positions
at
the
board
for
the
june
meeting.
But,
politically
speaking,
I
would
expect
it
to
be
for
your
agus
meeting
since
in
july
there
are
no
meeting
schedules
so
just
wanted
to
let
you
know
we
will
keep
you
posted.
C
C
C
C
As
always,
I
want
to
give
kudos
to
the
staff
next
week
is
going
to
be
almost
a
four
years
since
we
started
working
remotely
staff
in
general,
amazingly
engaged
and
performing
the
court
duties,
they
have
done
an
excellent
work
and
it's
a
job,
and
I
just
want
to
like
I
do
from
time
to
time
thank
the
staff
for
the
hard
work
publicly
on
behalf
of
the
boards
and
the
members.
So
with
that.
That
concludes
my
our
of
the
mr
chair,
I'm
happy
to
answer
any
questions.
B
Thank
you
richard,
let
me
and
let
me
compliment
you
and
your
staff
and
you
and
barbara
too.
You
know
you've
also
spent
this
year
roberto
with
some
joy
and
there's
been
some
laughter
and
that's
been
a
much
needed
pass.
So
thank
you
and
your
and
your
staff
for
the
excellent
leadership
and
you
know
making
sure
that
our
retirees
were
taken
care
of
and
our
board
was
taken
care
of
and
our
staff
was
happy
and
healthy.
Councilman
foley
over
to
you.
I
Thank
you
before
I
go
into
my
report.
I
have
a
question
about
the
pre-funded
discount
rate.
What
is
that
rate.
O
Sorry
so
it's
going
to
be
effectively
the
assumed
rate
of
return
for
the
plan,
the
if
yeah,
which
is
six
and
five
eight
okay,.
I
O
A
O
So
sorry,
just
one
addendum
there:
it's
because
the
payments
are
made
throughout
the
year
there's
a
little
bit
of
kind
of
almost
bond
math
involved
where
that
kind
of
the
weighted
average.
You
know
time
of
that
payment
is
kind
of
the
middle
of
the
year.
So
the
way
the
actuary
calculates,
the
the
dollar
amount
of
the
discount
is
effectively.
He
takes
half
of
the
discount
rate.
O
So
it's
not
as
though
you
take
the
contribution
amount
in
this
case,
it'd
be
the
tier
one
contribution
amount
and
discount
it
by
six
and
five
eighths.
It's
effectively
that
tier
one
contribution
amount
discounted
by
whatever
that's
three
and
oh
gosh,
three
and
change.
I
No
thank
you
so
not
as
simple
as
just
applying
a
discount
rate
of
6.5
6.6
and
5
8,
but
I
got
it.
Thank
you,
jay
that
helps
at
the
city
council
level
we
just
approved
on
tuesday
to
acquire
or
actually
trade
land
with
vta
to
build
a
new
fire
station
with
measure
t
funds.
We
are
relocating
some
fire
stations
and
building
new
fire
stations
throughout
the
city
to
create
efficiencies.
That's
all
a
result
from
the
measure
t
fund.
I
I
I
We
haven't
completed
our
priority
settings
session.
It's
a
little
bit
different
this
year.
We
finished
round
one
second
round,
I
think,
is
march
15th
and
maybe
next
meeting
I'll
be
able
to
report
back
what
some
of
the
priorities
new
priorities
are,
that
the
council
has
brought
forward,
but
so
far
much
of
what
we're
doing
is
continuing
our
current
efforts
on
vision,
zero
climate,
smart,
making
sure
that
we're
providing
core
services
beautify
san
jose
trash
pickup
throughout
the
the
city,
just
really
trying
to
focus
on
our
core
services.
I
We're
also
heading
into
budget
session,
where
we
are
at
a
shortfall.
But
we
really
don't
know
yet
how
that's
going
to
impact
our
our
budget
at
this
point,
but
we
should
still
be
starting
to
get
memos
from
the
city
manager
and
the
budget
office
soon
as
to
where
what
they're
looking
at
as
far
as
a
budget
and
then
the
mayor's
message
will
come
out
soon
as
well.
So
that's
it
for
me.
Thank
you.
C
Mr
chair,
I
I
don't
have
any
questions,
but
I
wanted
to
let
councilmember
foley
and
the
rest
of
you
board,
which
I
failed
to
indicate
in
auto
report
that
I'm
scheduled
to
present
in
form
of
the
city
council
and
you
march
23rd
meeting
the
actuary
evaluation
results.
C
So
we
are
going
to
be
providing
a
memo
to
the
city
council
and,
of
course,
the
powerpoint,
and
so
I
will
make
sure
I
trust
the
council
member
foley
to
share
with
you
the
powerpoint
presentation
in
anticipation
in
case
you
have
any
specific
questions
in
anticipation
of
the
presentation
to
the
city
council.
Any
comments.
Okay,
so
I
just.
C
C
There
are
three
documents
available
to
you,
I'm
strictly
keeping
my
comments
to
my
presentation
of
the
powerpoint,
but
please
feel
free
to.
Let
me
know
if
you
have
any
questions
about
the
other
two
documents
that
we
provided,
which
is
the
memo
sort
of
summarizing
the
the
budget
proposal
and
then
some
further
spreadsheets
that
we
need
to
provide
this
new
approach
is
not
as
new
anymore
on
the
budget,
presentation
and
proposal.
C
K
C
C
It's
a
condensed
version
of
it,
but
other
than
that
they
receive
all
this
information
that
is
here
before
you
and
before
I
start
I
also
want
to
thank
the
staff,
senior
staff
and
everyone
at
the
office
and
the
accounting
group
on
working
diligently
and
making
sure
that
we're
able
to
finalize
the
budget
and
and
be
here
before
you
this
morning.
C
You
recommend
this
proposal.
I
apologize
that
we
had
to
change
some
changes
yesterday.
You
may
recall
that
at
the
last
meeting
you
board
approve
the
contract.
One
of
the
contracts
that
you
approved
was
the
audit
actuarial
contract
with
seagull
at
about
100
000,
and
we
apologize.
We,
we
actually
did
not
include
that
that
figure
in
the
budget.
C
So,
as
I
was
doing
finance
revisions
yesterday,
I
realized
we
missed
it,
so
we
had
to
change
the
numbers.
So
that's
why
you
received
an
updated
version
late
afternoon
yesterday,
so
with
that
I'm
going
to
jump
into
the
the
presentation,
the
budget
of
the
glass.
Obviously
I
just
mentioned:
we
have
an
expense,
a
breakdown
as
part
of
the
requirement
by
the
city.
We
have
to
provide
the
sources
of
funds
that
uses
funds.
C
So
as
the
sources
of
phones,
we
use
the
assumption
of
return.
Obviously
ultima.
We
don't
know
what
the
returns
are
going
to
be
for
the
new
fiscal
year,
but
for
budget
purposes.
That's
what
the
number
is
and
then
what
we
have
before.
I
use
the
proposed
ammunitive
budget,
which
is
divided
in
four
main
buckets.
It
has
a
personnel
services,
a
non-personnel
equipment
analysis,
a
professional
services.
C
Then
we
we
close
it
out
with
the
medical
services
analysis
for
the
disabilities
and
then
we
include
some
analysis
and
comparisons
to
other
california.
Plans
based
on
comprehensive
financial
report
number,
as
I
explained
before,
the
proposed
budget
is
broken
down
in
two
sections:
the
sources
of
funds
which
includes
the
city
contributions,
the
participant
income,
which
is
the
participant
contribution,
and
then
I
just
explained
the
investment
income
and
that
we
just
basically
assume
that
we're
going
to
return
the
assumption
of
return
in
terms
of
the
uses
of
funds.
Really
the
big.
C
The
big
number
is
the
benefits
and
health
insurance
patient
payments,
which
you
know
they
are
in
excess
of
about
250
million
dollars
a
year
and
then,
of
course,
the
administrative
expense
which
is
really
the
the
section
of
the
budget
that
we
are
asking
you
presenting
you
this
morning.
I
don't
know
I'm
initially
a
budget
and
asking
you
to
approve.
C
C
So
it's
a
50
of
the
office
retirement
services,
direct
staff,
labor
cost,
which
includes
salary
and
benefits,
except,
as
you
may
recall,
some
years
back,
we
agreed
that
for
the
investment
staff,
we
split
that,
based
on
sort
of
generally
speaking,
the
market
value
about
funds
which
is
really
a
split
about
60
40..
So
all
the
other
president
expenses
are
50
50,
but
the
investment
staff
is
based
on
the
asset
side
for
both
plans,
which
is
60
40..
I
do
want
to
mention
two
things.
C
C
We
have
been
sort
of
stripping,
then
out
of
the
budget
over
the
last
few
years,
the
last
of
which,
which
was
included
in
last
year
budget,
was
the
investment
analytics.
C
We,
that
was
the
last
year
that
that
was
included
this
year.
Budget
does
not
include
that
call.
So
this
is
the
first
budget
that
is
before
you
that
does
not
that,
aside
from
the
investment
staff,
personnel
does
not
include
any
other
investment
related
costs,
and
then
professional
services,
legal,
actuary
and
otherwise,
and,
as
I
explained,
the
medical
services,
which
is
the
work
by
independent
medical
examiners
and
the
medical
advisors
with
disabilities,
and
that's
it.
C
So
again,
sources
of
funds.
We
can
skip
that
one
I
speak
to
it.
We
have
different
and
the
uses
as
funds
we
had
the
last
five
years.
So
if
we
go
directly
to
the
to
the
budget,
the
total
amount
that
we
are
proposing
is
in
the.
In
the
fourth
column
they
proposed
for
20
21
22
budget
year
is
5.9
million
dollars.
C
These
are
just
estimate,
numbers
estimated
numbers
because,
based
on
what
we
have
spent
so
far
throughout
the
year,
and
the
total
request
is
5.9
million
dollars,
which
is
about
5.21
percent
increase
from
last
year,
adopted
budget
and
and
the
main
reason
for
that
and
you're
gonna
see.
This
is
twofold
and
you're
gonna
see
this
on
the
personal
services
and
I
also
have
the
orchard.
C
We
have
added
one
and
a
quarter
positions
to
the
budget
and-
and
that
is
number
one-
you
may
recall
that
late
last
2020
calendar
year
we
have
promoted
investment
staff,
one
of
the
staff
from
this
analyst
investment
officer
and
again
investment
officer
to
a
senior
investment
officer
at
the
time
for
the
budget
that
is
currently
ongoing
that
ends
on
june
30th.
We
use
that
extra.
C
C
So
by
going
to
that
process,
we
added
a
senior
investment
officer
position
to
the
investment
organization,
which
is
the
one
position
that
we
added
the
the
quarter
of
the
position
that
I'm
referring
to
is
we
have
a
staff
at
the
office
that
for
many
years
he
was
a
permanent
full-time,
100
percent
employee
and
then
we
needed
to
provide
some
accommodations
which
required
that
he
could
not
work
hundred
percent
of
the
time.
He
only
worked
three
quarters
or
75
of
the
time.
C
That's
why,
for
years,
when
we
presented
the
budget
to
you,
it
indicated
that
we
have
38
and
three
quarters
positions
or
something
like
that.
Well,
the
member
has
indicated
to
us
that
he
is
planning
on
retiring
at
the
end
of
this
fiscal
year,
and
that
is
a
permanent
position
that
we
have
at
the
office.
C
So
we
are
moving
towards
the
new
fiscal
year
with
that
position
at
a
full
equivalency
100,
so
that
that's
what
really
explained
the
increase
of
one
and
a
quarter
on
on
the
positions
and
and
basically
the
main
reason
for
the
increase
on
the
proposed
budget
versus
the
adopter.
C
C
So,
as
I
explained
before
each
one
of
the
main
buckets,
we
actually
have
very
specific
details,
slides
explaining
where
they're
coming
from,
and
so
as
I
explained,
we
used
to
have
38
and
three
quarters
in
the
office
now
with
a
one
and
quite
an
increase,
is
a
proposal
of
40
which
full-time
equivalency
per
plan
is
is
20.,
as
I
explained
before,
the
proposal
include
the
additional
senior
investment
officer
and
converting
the
75
staff
position
to
a
full-time,
100
staff
specialist.
C
If
you
can
go
to
the
next
slide
and
by
the
way,
the
the
number
on
the
personal
cost
is
specifically
related
to
the
salaries
of
the
staff
today
and
those
that
are
at
the
top
of
their
of
their
salary,
then
we're
not
envisioning
any
increases.
C
Of
course
we
don't
know
if
they're
going
to
be
cpi
increases
by
by
the
city
at
this
point,
but
those
that
are
not
at
the
top.
We
do
then
estimate
some
increases
on
the
annual
review
process,
so
just
wanted
to
explain
that
the
rest
of
the
cost,
which
is
benefit
rate,
is
whatever
the
cost
is
associated
with
which
we
get
from
the
city
as
it
relates
to
health
care
and
pension
benefits.
C
So
this
is
the
orchard,
as
you
know
very
well.
We
have
the
city,
council
and
and
the
data
line
to
both
of
the
boards.
Obviously,
and
so
the
main
issue
here
is
twofold:
we
wanted
to
show
you
sort
of
they
can
light
gray,
the
two
positions
that
are
added,
the
the
investment
scene,
investment
officer
position
and
the
staff
specially
that
is
converting
from
the
75
percentile
to
100.
C
C
If
you
can
go
to
the
next
slide
michelle,
so
the
next
main
bucket
is
non-personnel
equipment,
analysis,
and
so
again
I
wanted
to
make
the
point
here.
C
The
decrease
is
somewhat
misleading
of
38.61
from
the
proposed
to
the
adopted
last
year,
because
again,
that
number
from
last
year
does
include
the
investment
analytics
and
research
budget
of
435
000
that
was
removed
and
again
the
reason
it
was
removed,
as
I
explained
before,
we
have
been
slowly
but
surely
over
the
years
stripping
out
investment
related
expenses
to
make
sure
that
we
have
a
more
apples
to
apples
comparison
with
our
peers
across
the
state.
C
This
was
the
last
item
that
needed
to
be
deleted,
and
I
believe
I
mentioned
that
at
last,
your
budget
that
my
intention
was
for
this
year,
but
not
to
include
the
investment
analytics
and
research
project.
We
also
have
a
reduction
in
postage
and
supplies
and
travel,
and
we
do
have
an
increase
in
clinical
insurance
you're
going
to
see
that
increase
when
we
have
an
item
later
here
this
morning,
where
those
that
cost
is
increasing
on
the
annual
basis.
C
And
the
next
slide
just
provides
you
a
detail
of
what
is
included
in
the
non-precedent
equipment
total
amount
that
we
are
proposing.
726
000,
the
largest
of
those
expenses,
is
the
rent
which
we
actually
agreed
to
just
in
time
for
the
pandemic
to
begin
and
start
working
remotely
and
then
the
other
big
item
is
the
insurance
finisher
in
commercial
liability,
insurance
and
again
you're
going
to
see
that
item
coming
up
later
in
the
meeting
and
the
other
ones.
C
C
So
it
is
about
seven
percent
increase
from
the
adopted
from
last
year
and
so
professional
services
again
increase
because
of
the
additional
of
the
acura
audit.
C
Just
a
note
here,
we
always
want
to
remind
you
that
the
costs
associated
with
the
new
patient
administration
system
they're
not
included
as
budget
as
those
codes.
Those
costs
are
actually
being
capitalized
as
part
of
the
assets
of
the
plan.
The
next
slide
actually
presents
the
detail
of
the
request
for
867
000.
C
The
the
you
also
are
you
meeting
last
month
approve
a
3d
extension
for
actual
services.
So
that's
what
you
see
here.
We
expect
about
270
thousand
dollars
on
actual
work
for
the
next
fiscal
year,
legal,
which
is
led
by
general
counsel,
but
it
also
includes
all
the
types
of
legal
services
which
is
investment
and
disability
and
tax.
C
We
are
proposing
260
000
and
that's
actually
based
on
looking
at
prior
years
expenses,
again
the
the
actual
audit
that
I
mentioned
of
hundred
thousand
dollars
the
audit,
which
also
you're
going
to
be
approving
that
later,
hopefully
later
this
this
morning
in
the
meeting.
That's
the
financial
audit
to
be
produced
by
grand
total
of
80
and
so
on
and
so
forth.
C
We
do
have
10
agencies,
and
that
is
because
we
have
the
ability
to,
as,
as
you
saw,
we
have
some
vacancies
actually
at
this
point,
four
within
the
office
and
so
from
time
to
time.
We
do
use
temp
agencies
to
fill
positions
for
help
and
that's
what
that's
about,
and
then
the
pension
administration
system
for
web
changes
you
and
disaster
recovery
and
everything
else,
sixteen
thousand
dollars
a
year.
C
So
that's
what
comprised
the
total
867
000
for
the
fiscal
year,
21
22.,
if
you
can
go
to
the
next
slide,
michelle
so
medical
services.
This
is
the
last
big
bucket
again.
This
one
is
in
terms
of
the
work
associated
with
the
medical
board
advisor
and
also
the
work
by
the
independent
medical
examiners.
C
There
is
a
decrease
that
is
considerable
about
50
and
and
the
main
reason
for
that.
Obviously
you
can
see
the
adopted
last
year
was
two
hundred
eighteen
thousand.
We
were
very
aggressive
on
our
expectations.
C
As
you
know,
when
I
mentioned
we're
going
to
be
issuing
an
ifp
for
medical
advisor,
we're
not
really
sure
how
that's
going
to
turn
out.
So
there's
always
a
chance
that,
depending
on
what
we
find
in
the
rfp,
there
may
be
some
implications
to
to
this
number.
But
after
much
discussion
among
staff
and
our
experience
over
the
last
couple
of
years
and
speaking
to
the
medical
advisor,
we
felt
112
000
was
a
reasonable
proposal.
C
If
we
can
go
to
the
next
slide,
so
the
last,
the
last
few
slides
have
to
do
as
we
have
done
many
years
trying
to
give
you
bore
and
the
stakeholders
sort
of
a
sense.
How
do
we
compare
in
terms
of
the
expenses
for
the
budget
with
our
peers
across
the
state,
and,
as
I
mentioned
before,
it
is?
C
It
is
difficult,
sometimes
because
we
want
to
make
sure
that
we
compare
apples
to
apples
and-
and
these
numbers
are
based
on
actual
figures
that
we
have
gathered
from
offers
from
all
the
all
the
systems
for
2018
19
fiscal
year
and
the
2019-20
year
that
ended
last
june
30th
2020
and
if
you
look
at
police
on
fire.
Obviously
the
police
and
fire
has
a
larger
base
of
of
of
assets
than
federated.
C
That's
where
you
see
the
night
basis
point
compared
to
federally
about
13
and
12
business
points,
so
police
and
fire
is
in
the
zero
to
five
billions.
So
it
is
right
in
line
with
the
other
systems
across
the
state
of
90
basis.
Points
right,
but
I
I
do
want
to
say
two
things
about
this
here,
which
I
think
is
important
to
know
is
number
one,
as
I
mentioned
before,
our
peer
plants
across
the
state
do
not
include
some
of
them.
Don't
have
investment
staff,
but
those
that
do
for
the
most
part.
C
They
do
not
include
the
investment
staff,
personal
costs
and
we
do
the
numbers
that
we
are
providing
here.
Our
numbers
do
include
the
personnel
staff
for
investment,
so
if
we
strip
those
out,
then
those
basis
points
will
be
lower.
C
C
It's
not
sort
of
much
of
a
fair
comparison,
because
the
cost
associated
with
personnel
is
considerably
lower
in
those
areas,
as
it
relates
to
at
least
two
salaries.
So
again.
Keeping
that
in
mind,
I
still
think
is
the
whole
goal
here
is
to
show
you
that
we
don't
feel
that
we
are
asking
your
board
to
approve
any
costs
that
are
meaningfully
higher
than
our
peers,
so
we
are
certainly
in
line
with
what
they're
expecting
if
we
can
go
to
the
next
slide.
C
Next
slide
is
the
same
information,
personal
services,
but
instead
of
basis
points
is
dollars
and
again
here,
your
dollars
are
higher
than
the
0
to
5
billions.
But
again,
part
of
that
is
because
of
what
I
just
mentioned.
Salaries
are
high
in
the
bay
area
and
we
do
include
the
investment
staff
versus
other
systems
that
they
do
not
and
then,
lastly,
the
same
comparison,
but
instead
of
just
personnel,
the
full
administrative
cause
and,
as
you
can
see
here,.
C
Even
though
police
of
fire
is
considered
lower
than
federated,
I
think
the
right
approach
and
I'm
going
to
share
that
with
you,
and
I
will
share
that
with
the
fed
board
when
I
meet
with
them
later
this
month
is
to
look
at
the
combined
san
jose
plans
again,
because
you
only
have
one
office
and
and
and
to
be
quite
honest,
all
the
plans
that
are
included
here.
They
just
have
one
office
and
one
board.
C
This
is
including
the
personal
cost
for
investment
staff.
Again.
The
main
goal
here
is
to
show
you
that
we
are
sort
of
in
line
with
the
cause
with
our
peers
across
the
state.
So
I
I
think
the
whole
point
here
is
to
show
that
what
we
are
proposing
and
asking
you
to
approve,
I
think,
is
reasonable
compared
to
our
pre-secretive
state.
K
A
C
K
C
The
521.2
yes,
but
I
what
I'm
trying
to
say
is
when
we
do
bring
contracts
in
front
of
the
board
for
approval
we
and
we
asking
them
for
a
particular
amount.
When
we
presented,
we
actually
keep
track
of
the
original
amount
plus
the
new
amount.
So
it's
a
total
figure.
Is
that
correct?
That's
how
we
should
we
usually
do
it?
I'm
only.
C
Sunita
is
mentioning
the
500
000,
but
I
think
that
500
000
have
to
do
with
her
torah
contract
from
the
beginning,
not
just
the
fiscal
year.
In
fact,
her
contract
actually
ends
on
june
30th
2021..
K
And
the
other
question
I
had
was
when
you
say
personal
expenses
are
not
include
other
plans.
What
I
mean,
how
do
they
play
pay
people.
C
You
know
yes,
so
what
happened?
Is
that
many
of
the
plans,
whether
it
is
on
their
calpers
or
the
37
eggplants,
from
which
I
have
experience
from
like
the
fresno
county
and
san
mateo
county
up
north
or
contra
costa
county
they're?
C
A
C
And
also
under
that
law,
they
have
a
limit
in
terms
of
how
much
they
can
request
on
the
ammo
basis.
This
is
a
good
point
to
make
which
I
usually
make,
but
I
forgot
to
make
it
this
year.
They
have
a
limit,
how
much
they
can
request
for
their
material
budget
based
on
basis
points
compared
to
total
assets.
C
However,
correctly,
if
I'm
mistaken,
I
think
it
used
to
be
21
basis
coin.
I
don't
know
if
that
number
has
increased,
so
it's
nowhere
higher.
Now
it's.
E
21
basis
points
based
on
the
actuarial
liability,
not
on
assets,
used
to
be
used
to
be
18
basis,
points
on
assets-
you
are
correct,
so
but
yeah,
the
their
governing
law
and
the
county
systems
all
provide
that
the
all
investment
expenses,
staff,
council
and
other
expenses
are
direct
deductions
from
investment
assets
and
not
part
of
the
administrative
budget.
C
M
I'd
like
to
follow
up
that
question
with
a
couple
other
questions,
one
is
had
you
thought
about
making
an
adjustment
in
the
budget
that
you
present
to
create
an
apples
and
apples
comparison
by
showing
what
our
expenses
would
be
in
basis
points
in
by
deducting
our
staff
cost
our
investment
staff
cost.
C
So
this
is
something
that
we
want
to
do
going
forward.
I
I
have
made
the
decision
that
I
will
continue,
including
the
the
personal
cause
for
investments,
mostly
transition
survey,
because
when
I
go
to
the
city
council,
they
concentrate
on
personal
cause,
and
I
just
it
would
just
be
very.
C
It
will
present
to
me
more
challenges
to
have
to
go
to
the
city
council
and
explain
the
difference
than
when
I
come
to
dubai
and
present
you,
the
budget,
but
that's
not
to
say
that
going
forward
for
the
basis
point
comparison,
and
I
actually
believe
that
I
asked
yes,
I'm
sorry
I
have
it
here.
I
did
ask
that
question
of
benji
and
she
provided
to
me.
So
I
apologize
so
going
forward.
C
We're
going
to
do
is
is
possibly
provide
you
with
the
basis
point
comparison
both
ways,
including
the
personal
cost
for
investments
and
excluding
it.
So
I'm
glad
that
you
raised
that
issue,
because
I
asked
that
question
of
staff
and
they
gave
it
to
me
so,
if
not
on
the
personal
on
the
internet
cost.
If
we
strip
out
the
investment
staff
cost,
that
number
will
go
if
you
can
go
to
the
slide
before
michelle
this
one,
the
17.
C
K
Roberto,
I'm
sorry
to
correct
you,
but
that's
if
you
strip
it
of
the
investment
data
analytics
cost,
not
investment
personnel
costs.
I
did
not
take
out
the
investment
personnel
cost,
because
some
cappers
do
include
investment,
personal
costs
in
the
chapter,
some
don't
okay,.
K
Really
hard
to
make
apples
to
apple
comparison.
C
C
It
will
be
hard
sometimes
because
we
don't
know
which
systems
actually
include
some
others
do
may
include
others
may
not
in
the
coffer,
but
in
their
administrative
budget
they
definitely
do
not
include
the
the
personal
cost.
So
I
I
apologize.
I
stand
corrected.
The
numbers
that
I've
received,
having
to
do
with
investment
analytics
know
the
personal
cost.
M
M
C
M
You
know
I
don't
obviously
want
to
create
that
dilemma
for
us,
but
I
just
think
it's
important
if
you're
going
to
make
a
statement
about
the
differences
and
how
we're
reporting
you
might
want
to
also
know
that
other
information,
the
the
second
thing
that
this
brings
up
for
me,
is
going
to
our
investment
reporting.
H
Vince,
I
don't
believe
that
includes
investment
costs.
So
when
we,
I
think
the
standard
for
pension
plans
is
to
report
net
a
fee,
so
what
we
pay
investment
manager
fees.
But
when
we
go
to
the
city
council
in
the
fall-
and
we
present
our-
you
know
our
fee
report-
the
annual
fee
report
in
that
report.
We
show
not
just
manager
fees,
but
we
also
show
investment,
personnel
costs
and
all
investment
related
expenses,
including
consultants,
custodian
and
the
tool
and
the
tools
that
we
use.
M
Yeah,
no,
I
know
you
guys
do
an
excellent
job
on
providing
complete
transparency
around
our
fees.
I
guess
I
was
just
wondering:
are
we
do
we
have
the
same
gap
on
the
investment
reporting
side
and
it
sounds
like
that's
not
happening
that
everybody's?
Basically
just
simply
looking
at
neta
fees
on
the
investment
itself,
so
you
can
answer
my
question
all
right.
Thanks.
B
Expense
anything
anybody
else
have
anything
for
roberto.
F
Yeah
this
is
this
is
howard,
just
two
quick
questions:
roberto
on
the
on
the
hiring.
What
are
the
most
pressing
needs?
I
know
you
had
two
or
three
openings:
are
they
all
equally
urgent.
C
So
the
most
urgent
ones
are
the
ones
that
we
are
actually
looking
at
to
feel
now,
which
is
in
the
benefit
staff.
The
senior
benefit
analysts
and
the
benefit
analysts-
and
I
didn't
mention
this
at
the
budget-
obviously,
but
we
have
been
running
for
the
last
four
months-
also
sure
of
a
benefits
manager,
because
the
benefits
manager
is
on
leave
right
now,
so
the
cost
is
still
part
of
the
budget.
C
But
because
of
all
those
reasons,
those
two
positions
are
the
the
most
needed.
So
you
know
we
possibly-
and
I
have
to
discuss
this
further
with
prabhu
we're
going
to
be
possibly
looking
to
bring
an
investment
analyst
later
for
the
upcoming
fiscal
year.
But
one
of
the
challenges
have
been
the
the
the
the
city
instituted,
a
a
freeze
and
whenever
we
have
to,
we
would
like
to
fill
positions.
F
Yeah,
okay,
it
sounds
pretty
urgent,
okay,
great
well!
Thank
you
and
then
the
other
question
is
maybe
this
is
obvious:
the
the
delta
on
the
bps
comparison
between
city
or
federated
and
police
fire
is
that
simply
because
of
the
larger
denominator,
just
larger
greater
amount
of
assets.
C
I
I
would
say
that's
the
main
reason
for
it.
Yes,
absolutely.
K
If
nobody
else
wants
to
go-
oh
god,
I
guess
I
wanted
to
echo
what
howard
said
that
excellent
presentation
very
transparent.
I
mean
honestly
following
up
on
vincent
vince's
comments.
If
you
look
at
the
personal
expenses
percentage
of
assets,
it's
pretty
small,
so
it
might
be
a
good
story
to
tell
I'm
guessing
just
looking
at
the
numbers
at
the
you
know
fairly
high
level.
K
I
think
the
one
suggestion
I
had
a
while
ago
as
we
renew
these
contracts,
it
gets
a
little
confusing
to
compare
with
the
budget,
and
you
know
this.
The
cycle
is
different.
I
understand
be
helpful.
To
have
the
the
budget
numbers
either
coincide:
the
contract
renewal,
discussion
with
the
budget
numbers
or
have
the
budget
numbers
while
we're
renewing
the
contracts,
whichever
is
easier,
but
it
was
a
suggestion
I
might
have
for
euro
better.
C
Sorry
I
was
so
mute
we'll
take
in
consideration,
certainly
trusty,
so
we'll
see
what
comes
up
with
next
next
year
projects.
Thank
you.
B
C
Yes,
please
I
mean,
if
you
have,
I
think
as
as
proposed.
Yes,
we
would
prefer
that
you
approved
this
month,
we'll
be
presenting
the
same
with
some
variation,
the
same
budget
to
the
federator
board
in
march,
and
then
we
need
to
make
sure
that
both
boards
are
proven.
So
we
can
then
forward
to
the
city
budget
office.
B
Great,
then,
the
floor
is
open
to
accept
a
motion
to
approve
the
budget
item.
D
B
B
B
D
B
Vince
hi,
I'm
john
lanza.
I
approve
as
well
that
passes
clock
on
the
wall
says
10
42
we've
been
at
this
little
over
two
hours.
Why
don't?
We
take
a
five
minute,
bio
break?
Everybody
come
back
at
10,
48.
B
B
B
B
A
B
There
where's
roberto
and
it's
1048..
We
are
now
back
in
session.
My
friend
nick
muir
brought
the
fact
that
he
voted
on
that
nick
right
reaffirm.
You
voted
on
that
last
motion
for
c.
I.
A
B
Yes,
thanks
yep
zoom
mic
trouble
4d
over
to
you,
roberto.
C
Thank
you,
mr
chair.
So
the
next
item
before
you
is
the
discussion
and
action
on
exercising
the
first
of
two
one
year:
options
for
fiscal
year,
ending
june
30
2021
with
grant
thornton
our
current
financial
auditor
for
audit
services
I'll
turn
it
over
to
benji
for
the
presentation
and
discussion.
Benji.
K
So
grant
thornton
has
performed
the
external
financial
audit
for
the
last
five
years
for
their
contract.
The
contract
also
includes
two
one-year
options
that
we
would
like
the
board
to
exercise.
We.
K
With
their
service
and
the
staff
that
they've
used
for
the
audit
services,
the
terms
of
the
options
are
stated
in
the
contract,
including
the
amendment
for
the
fiscal
year.
21
audit
the
cost
would
be
approximately
82
000,
which
is
the
amount
that
was
included
in
this
year's
budget
and
for
the
following
year.
It
would
be
approximately
84
000..
In
addition
to
exercising
the
options,
we
will
need
to
amend
the
contract,
to
add
30
000
to
cover
the
rest
of
the
call.
C
Benji,
can
you
can
you?
I
know
it's
in
the
memo.
Can
you
comment
on
when
the
when
grant
thornton
lost
the
the
city
audit,
how
we
agreed
to
increase
their
their
contract
for
services,
and
I'm
assuming
because
of
that
now
these
these
options
are
also
increasing
or.
Q
K
City
decided
that
they
were
no
longer
going
to
use,
grant
thornton
the
board
had
a
discussion
about
it
and
they
decided
to
keep
grant
thornton
in
order
to
maintain
independence
from
the
city.
But
in
addition,
grant
horton
was
getting
her
additional
costs
because
their
auditors,
that
would
have
performed
the
city
audit
they
weren't
able
to
rely
on
them.
So
they
were
going
to
incur
additional
costs.
So
the
board
decided
to
add
13
800
per
plan
to
the
audit
costs,
and
so
the
83
000
and
84
000.
That
I
mentioned
includes
additional
costs.
E
Thank
you.
I
I
believe
in
the
audit
world
that
it's
appropriate
practice
for
audit
firms
to
rotate
the
audit
partner
in
charge
of
an
assignment,
at
least
after
five
years.
Do
you
know
if
that
benji?
If
that's
in
in
the
works
on
this,
I
don't
know
how
I
think
it's
been
at
least
four
years
with
the
same
audit
partner.
K
F
Yeah
hi
benji.
This
is
howard,
one
quick
question.
I
I
you
mentioned,
there's
a
like
a
13
800
increase
per
year,
but
then
I
also
saw
on
the
memo
that
it's,
a
30
000
increase,
total
for
grant
thornton
to
530.
Is
that?
Because
it's
what
13.8
times,
two
and
rounded
up.
K
So
it's
so
the
original
amount
that
was
in
the
contract
was
65
000.
Then
we
added
an
additional
3
400
for
the
new
auditing
standards
that
that
came
out,
and
then
the
additional
13
000
was
the
thirty
thousand
is
because
the
maximum
contract
amount
is
five
hundred
thousand
dollars,
and
that's
you
know
that's
what
we
contracted
with
them.
The
thirty
thousand
dollars
is
so
that
we
can
increase
the
maximum
above.
K
So
if
you
add
up
all
the
fees
for
all
the
years,
then
it
would
be
525
672,
as
as
shown
in
the
memo.
H
B
Great
talking
about
howard
lee
going
around
the
room
andrew
hi,
sunita.
D
B
And
vince.
B
As
well,
that
makes
it
unanimous
back
to
you
roberto.
C
C
As
I
explained
during
my
budget
presentation,
those
insurances
are
increasing
not
just
to
us,
but
also
across
the
whole
gamut
of
pension
plans,
and
you
know
I'm
sure
that
the
internet
council
may
have
some
comments
on
that,
but
that
said
I'll
turn
it
over
to
again
benji
who
actually
has
been
working
with
the
brokers
and
he's
ready
to
address
this
item.
Benji.
K
So
the
fiduciary
insurance
coverages
will
be
expiring
at
the
end
of
this
month.
The
coverages
include
general
fiduciary,
excess
liability
inside
a
coverage
we
are
here
to
have.
The
board
approve
the
renewal,
because
the
premium
will
be
increasing
more
than
five
percent.
The
ceo
only
has
authority
to
approve
five
percent
or
less
increase
in
premium.
The
letter
states
17.1,
but
I
just
received
an
updated
proposal
this
morning,
which
lowered
the
increase
to
16.6.
K
We
also
have
representatives
from
risk
management,
our
insurance
brokers,
in
the
meeting.
If
you
have
any
questions
for
them
as
to
how
you
know
the
process
of
obtaining
the
coverages,
also,
the
trustee
waiver
of
recourse
will
be
a
total
of
75,
which
is
25
per
policy,
and
these
should
be
made
out
of
your
personal
checking
account
and
if
you
could
send
it
to
our
office
by
may
31st,
that
would
be
greatly
appreciated.
B
Okay
benji,
would
you
send
us
all
an
email,
just
saying
that
so
yeah
we
go.
That's
almost
like
a
ping.
Any
questions
for
benji.
E
I
can
offer
one
comment:
if
I
may
yeah,
if
you
notice
the
willis
towers
watson
piece,
that's
attached
as
an
exhibit
to
the
backup
attachment
it
describes.
Why
why
the
cost
of
fiduciary
insurance
is
increasing.
You'll
know,
and
it's
true,
that
the
increase
is
mostly
because
of
litigation.
E
But
you
can't
get
the
attention
of
the
underwriters
for
the
for
the
major
insurance
companies
to
actually
pay
attention
to
the
difference
between
government
db
plans
and
private
corporate
dc
plans,
where
those
fees
are
triggering
a
lot
of
costly
litigation.
E
B
B
Yeah
any
any
questions
for
the
brokers
or
for
benji.
B
If
not
the
floor,
will
entertain
a
motion
to
accept.
D
B
Hi
it's
chair,
lanza,
I
vote
I
as
well.
Let's
see
final,
oh
final,
things
over
roberto
any
closing
comments
before
we
go
to
harvey.
C
No,
I
mean
other
than
again
excellent
work
by
by
staff
on
on
the
budget
and
and
the
rest
of
the
items.
Obviously
I
mean
you
especially
you.
Obviously,
the
chair,
lancer
you're,
very
nice,
about
your
comments
on
the
office,
but
I
want
to
make
it
clear
that
is
the
staff,
the
one
that
keeps
us
running
and
it's
their
engagement
and
commitment
and
the
excellent
work
that
the
you
know
that
keep
us
at
this
level.
C
So
I
have
to
defer
any
attention
and
any
kudos
that
your
board
will
give
us
to
the
staff
and
the
excellent
work.
So
with
that
you
know
I
I
don't
have
any
of
the
comments.
Thinking
well.
B
Professionalism
starts
at
the
top
roberto
and
I
echo
your
comments.
Staff
is
top
notch
all
the
way,
all
the
way
up
to
the
head
guy,
so
good
job
rorto
over
to
you
harvey
tell
us
what
we
don't
know.
E
Well,
it's
I'm
gonna,
give
you
the
pleasure
of
the
presentation
being
made
by
my
good
partner
and
colleague,
jenny
kringle,
who
you
all
know
and
I'll
just
turn
it
right
over
to
jenny,
to
take
us
through
this
educational
piece
and
I'm
sure
jenny
will
ask
for
any
questions
etc.
So
kenny
over
to
you,
then.
C
A
C
C
You
may
recall
boar
that
when
we
had
our
annual
joint
meeting
with
the
city,
council,
diversity
and
inclusion
was
an
issue
that
was
raised
by
the
vice
mayor
jones
and
we
did
provide
some
information
to
the
city
council
and
you
know
they
vice
mayor
jones
made
the
point
that
this
was
an
important
issue
to
him
and
he
was
helping
the
rest
of
the
city.
C
The
city
I
can
tell
you,
is
taking
the
steps
to
they
actually
open
a
diversity
office
and
they
they
are
taking
steps
to
implement
diversity
and
inclusion
under
the
process,
and
so
I
think
this
is
an
important
topic
that
we
should
consider
and
so
number
one
that's
why
this
is
here
this
morning
before
you
on
number
two
jenny
did
made
this
presentation
which,
by
the
way,
was
excellent
to
the
fed
board
meeting
last
month,
so
now
she's
making
the
percentage
to
you.
C
Q
Great,
thank
you,
roberto
and
good
afternoon.
Everybody,
it's
great
to
be
with
you
again.
Thank
you
for
having
me.
So
what
we're
talking
about
today
is
the
use
of
diversity
and
inclusion
data
in
the
contracting
process,
and,
as
roberto
mentioned
you
know,
questions
have
come
up
about
a
public
retirement
board's
ability
to
collect
and
to
use
diversity
data
as
part
of
that
process
of
engaging
outside
service
providers
and
vendors,
especially
with
respect
to
investment
managers.
Q
So
what
I'm
going
to
cover
today
is
first
the
legal
principles
that
come
into
play,
and
this
includes
fiduciary
principles
as
well
as
requirements
under
the
california
constitution
that
were
enacted
by
prop
209
in
1996
and
then
I'll
talk
about
some
guard
rails
and
best
practices
that
a
public
retirement
board
should
think
about
before
making
any
decisions
about
collecting
diversity
related
data
next
slide,
please.
Q
Q
So
with
that
fiduciary
background,
let's
talk
about
prop
209,
so
prop
209
was
enacted
in
1996
to
eliminate
certain
affirmative
action
programs.
It
had
55
of
the
vote
at
the
time.
It
was
immediately
challenged
in
the
courts.
It
survived
that
challenge
and
it's
survived
challenges
since
including
efforts
to
repeal
prop
209.
As
recently
as
last
year,
there
was
a
measure
on
the
ballot
which,
if
passed,
would
have
repealed
prop
209,
but
it
did
not.
Q
So
what
does
prop
209
do?
Well,
it
prohibits
public
entities
from
discriminating
against
or
granting
preferential
treatment
to
any
individual
or
group
on
the
basis
of
race,
sex,
color,
ethnicity
and
national
origin,
and
it
does
this
in
three
contexts:
it
does
it
in
the
context
of
operation
of
public
employment,
public
education
and
what
we're
talking
about
here
today,
public
contracting.
Q
Q
So
here
what
what
the
law
means
by
discriminate
in
this
context
is
to
make
distinctions
in
treatment,
whether
you're
granting
preference
showing
partiality
to
something
or
prejudiced
against
one
group
or
one
person
over
another
and
then
the
second
phrase.
I
want
to
bring
your
attention
to
that
concept
of
preferential
treatment,
and
that
really
means
to
give
a
priority
or
an
advantage
to
one
group
or
to
one
person
over
another.
Q
So
there
have
been
a
number
of
prop
209
cases
and
the
decisions
in
those
cases
give
us
several
examples
of
programs
that
are
impermissible
and
several
examples
of
programs
that
are
permissible
and
that's
not
to
say
that
the
application
of
prop
209
is
always
clear.
There's,
certainly
this
gray
area
in
between,
but
but
the
case
examples
give
us
some
good
guard
rails
and
some
good
examples
that
are
useful,
then,
in
evaluating
decisions
that
your
board
might
make.
So
we'll
start
with
examples
of
impermissible
programs.
Q
First,
it's
not
permissible
to
have
specific
diversity,
goals,
quotas
or
timetables,
and
there
are
handfuls
cases
that
confirm
this
point
now.
This
shouldn't
be
confused
with
good
faith,
outreach
efforts
which
I'll
talk
about
in
a
moment
what
we're
really
getting
at
here.
What
the
courts
we're
getting
at
here
are
programs
that
have
specific
requirements
like
a
diversity
head
count
or
a
certain
percentage
of
bidders.
Excuse
me
that
need
to
be
from
women-owned
firms.
Q
For
example,
courts
have
also
struck
down
programs
that
involved
selective
dissemination
of
information,
so
the
information
about
the
rfp
was
only
going
to
say
minority-owned
firms
and
then
the
last
one.
To
note,
for
our
examples
is
that
the
courts
have
struck
down
programs
where
a
public
body
categorically
treated
firms
as
being
socially
and
economically
disadvantaged,
based
solely
on
diverse
ownership
and
nothing
else.
Q
Okay,
next
slide,
please.
So,
let's
talk
about
what
is
permissible.
Well,
first,
aspirational
programs
that
promote
diversity
in
ways
that
don't
result
in
preferential
treatment
are
absolutely
okay,
and
so
what
this
means
is
that
that
inclusive
outreach
is
all
right
as
long
as
it's
not
predicated
on
impermissible
classifications.
Q
Second-
and
this
is
really
the
the
type
of
program
that
will
come
up
most
frequently
in
the
rfp
process,
second-
is
that
public
entities
can
collect
data
on
race
and
gender
if
it
serves
a
compelling
interest.
So,
for
example,
a
public
entity
might
want
to
collect
diversity
related
data
so
that
it
can
identify
unintended
bias
or
eliminate
past
discrimination.
Q
So
third,
preferential
policies
that
are
based
on
other
criteria,
not
prohibited
classifications
are
okay,
so
you
could
have
a
preferential
policy,
that's
based
on
economic
disadvantage
or
geography,
and
as
long
as
that's
not
a
proxy
for
something
like
race
and
gender.
Those
sorts
of
programs
are
allowed
to
put
this
into
context
for
retirement
systems.
You
know
often
they'll
be
a
preference
for
emerging
managers,
who've
split
off
from
from
major
banking
houses
and
that's
okay
again
as
long
as
it's
not
a
proxy
for
race
and
gender.
Q
Next
slide,
please,
okay!
So
with
that
legal
background,
let's
talk
about
some
of
the
best
practices
and
some
of
the
guard
rails.
That
a
board
would
want
to
consider
before
asking
for
diversity
related
data
in
the
rfp
process,
and
the
first
thing
is
to
determine
what
data
might
be
sought
and
I'm
going
to
give
you
a
handful
of
examples
of
of
what's
possible.
So
you
get
an
idea
of
sort
of
what
could
be
thought
if
we
wanted
to
do
that.
Q
Many
retirement
systems
will
solicit
the
firm's
policies
on
diversity
and
inclusion.
What
their
policies
are
on
discrimination
and
harassment,
how
they
oversee
those
policies?
What
sort
of
compliance
efforts
do
they
have
and
then
what's
their
track
record
like
what's
their
claims,
history
and
their
settlements?
Q
They
might
also
ask
what's
the
firm's
aspirations
and
goals
around
diversity.
A
couple
examples
that
may
be
relevant
here:
the
institutional,
limited
partners
association-
has
a
template,
diversity
questionnaire.
That
asks
for
a
number
of
the
things
I
just
mentioned.
It
also
asks
about
hiring
practices,
promotions,
family
leave,
mentoring
and
then
in
looking
at
what
the
questionnaires
that
calpers,
lasers
and
lacera
asked
for
a
few
additional
examples
that
we
see
from
those
are
compensation,
disparities
that
are
related
to
race
and
gender.
Q
Q
So
you
know
it's
really
key
to
make
sure
that
the
the
data
is
not
being
used
to
make
decisions
in
the
rfp
process
and
I'll
talk
a
little
bit
more
about
that
in
a
moment.
But
in
order
to
make
sure
it's
not
being
used
the
timing
on
when
the
data
is
solicited,
it
matters
can
be
relevant.
So
so
some
of
the
the
questions
the
board
might
ask
itself.
Is
the
data
going
to
be
solicited
before
the
rfp
process
begins?
Is
it
going
to
be
during
the
rfp
process
if
it's
during?
Q
How
is
it
going
to
relate
to
scoring?
Will
it
be
solicited
in
confidence
or
public
session
will
be
solicited
after
the
rfp
process
and
then
with
respect
to
parties
that
you
engage?
Is
it
going
to
then
be
periodically
solicited
again
in
the
future?
Q
Q
So,
for
example,
you
might
sometimes
an
rfp
will
ask
for
diversity
related
data,
but
it's
submitted
separate
from
the
proposal
and
then
it's
evaluated
separately.
You
know,
maybe
by
separate
staff
or
staff
at
a
later
date
than
the
actual
proposal
itself.
That's
just
one
example
of
one
type
of
prudent
process
that
can
be
used
to
ensure
that
that
diversity-related
information
is
not
being
used
to
select
a
vendor
or
service
provider.
Q
Okay,
next
slide,
please
and
then.
Lastly,
a
board
should
try
to
clearly
define
and
document
the
goals
and
outcomes
that
that
it
has
with
respect
to
the
diversity
related
data,
and
so
here
the
primary
thing
is
to
identify
those
compelling
interests
that
are
being
served
and
identify
the
benefit
to
members
and
beneficiaries.
Q
Some
systems
will
do
this
as
part
of
their
investment
beliefs
and
I'll.
Just
give
you
a
couple
examples.
So
calstrs
has
an
investment
belief
around
esg
factors
that
can
feed
into
diversity
related
data
calpers
has
investment
beliefs
about
engaging
managers
based
on
their
governance
and
sustainability
strategies,
including
human
capital
practices,
which
also
can
feed
into
diversity
issues.
So
so
those
are
some
of
the
ways
that
a
retirement
board
can
articulate
the
compelling
interests
that
are
being
served
by
collecting
the
data
by
including
it
in
investment
beliefs
and
then
related
to
that.
Q
It's
also
a
good
practice
where
possible,
to
support
that
with
research
and
findings
and
and
of
course,
there's.
You
know
an
enormous
amount
of
empirical
data
available
that
that
speaks
to
these
principles,
and
so
that
just
goes
further
to
sort
of
bolster
that
compelling
interest.
Reason
that
the
retirement
board
has
for
seeking
the
data
and
then
lastly,
you
want
to
be
sure
that
these
goals
and
outcomes
are
consistent
with
kind
of
all
of
our
other
documents.
Investment
policies,
diversity,
statements,
anything
else
that
would
apply
so
that
it
all
works
together.
B
Thanks
jenny,
it's
actually
really
helpful
floors
open
any
comments.
Questions
from
anybody.
B
Q
That's
a
great
question
and
I
and
I
think
that
question
probably
involves
more
analysis
and
more
options
for
you.
I
will
say
that
you
know
a
number
of
retirement
systems
do
focus
in
on
data
as
a
in
california
as
a
way
to
achieve
some
diversity,
related
goals
or
other
goals
that
that
have
diversity
related
implications,
and
so
certainly
that's
that's
something
that
if
you
go
down
this
path
that
you
should
consider-
and
we
could
also
kind
of
come
back
to
you
and
bring
you
the
whole
array
of
possibilities.
Q
If
that
is
something
that
your
board
is
interested
in,
you
know
when
harvey-
and
I
looked
recently
at
what
retirement
systems
across
the
country
are
doing,
many
of
which
are
not
constrained
by
a
rule
like
prop
209.
It
was
interesting
to
find
that
there's
a
lot
but
they're
doing
a
lot
of
the
same
things.
So
we
didn't,
we
didn't
necessarily
find
at
least
kind
of
in
the
official.
You
know
statements
that
we
were
able
to
look
at
you
know.
Q
We
didn't
necessarily
find
this
major
constraint,
keeping
california
retirement
systems
from
doing
what
maybe
their
peers
in
other
states
are
doing,
and
that's
not
to
say
that
you
know
in
reality
everything
all
things
are
equal,
but
I
think
we
thought
that
was
interesting
and
we'd
be
happy
to
come
back
and
bring
you
kind
of
more
details
around
what's
possible.
If
that's
something
the
board
wants
to
consider.
B
You
know
I
have
no
dog
in
this
fight
and
I
see
both
sides
of
this
equation,
but
we
have
got
a
vice
mayor
inquiring
and
that's
worth
taking
up
floors
open
any
comments,
any
questions
from
anyone.
Mr.
D
Yeah,
we've
always
have
seen
this
for
years,
and
so
on
and-
and
you
know,
209
is
a
number
reality
is
reality.
I
remember
a
former
fire
chief
who
said
we
got
to
make
sure
that
the
population
is
a
reflection
of
the
working
force
that
we
provide,
and
so
that's
how
I
see
life.
E
E
Telling
you
so
prop
209
really
creates
a
a
tension
for
fiduciaries,
like
our
board
members
running
a
public
pension
fund,
because
you
also
have
a
fiduciary
responsibility
to
prudently
invest
the
assets
in
a
way
that
will
assure
the
long-term
funding
of
the
system.
E
E
Now,
if
you
subscribe
to
that
investment
belief
that
you
believe
that
a
diverse
and
inclusive
entity
will
produce
long-term
results
that
are
better
than
a
non-diverse
or
non-inclusive
company,
then
you
have
a
prudent
obligation
to
invest
in
to
to
make
decisions
based
upon
you
know
the
diversity
and
inclusiveness.
E
E
Which
we
can't
so
it's
a
real
balancing
act
as
to
what
you
can
do
and
most
of
our
california
colleagues
and
peers
have
walked
that
tightrope
by
attempting
to
use
their
bully
pulpit,
if
you
will,
as
public
funds
to
encourage
behaviors
with
their
investment
managers
and
corporations
and
vendors
and
service
providers
to
encourage
these
behaviors,
but
not
to
make
them
the
decision
point
in
granting
or
not
granting
a
contract.
So
it's
it's
a
real
tight
rope
to
walk
and
and-
and
california
itself
has
has
been
a
bit
inconsistent
on
this.
E
You
know
two
years
ago
the
the
the
law
was
passed
to
require
women
on
corporate
boards
for
corporations,
who
were
headquartered
here
in
california,
and
so
there
is
in
in
a
legislative
act.
What
might
on
its
face?
Look
like
a
complete
violation
of
prop
209,
and
yet
there
it
is
so
it's
a
it's
as
you
want
to.
As
this
board
wants
to
move
forward,
you
can
ask
yourself:
is
there
an
investment
belief
that
we
subscribe
to,
which
is,
we
believe,
diverse
and
inclusive?
E
Businesses
will
thrive
in
the
future
and
if
so,
can
we
encourage
that
kind
of
behavior
with
those
we
do
business
with
and
through,
but
we
can
only
go
so
far
without
stepping
into
the
deep
waters.
D
D
We
had
four
money
managers
and
no
minorities
were
ever
hired
in
this
san
jose
police
and
fire
retirement
system,
and
we
were
the
first
ones
and
later
on,
we
spanned
to
16
and
people
of
color
got
opportunity,
and
when
I
came
back
to
the
board,
I
want
to
say
people
like
yourself,
vince
and
yourself.
Mr
chair
has
kept
that
going
and
I
really
believe
we
opened
the
doors
of
all
kinds
of
opportunity,
we're
very
progressive
and
I'm
really
proud
to
serve
today.
But
I
just
wanted
to
say
everybody
here
back
in
1992
and
87.
D
B
All
right,
I
agreed
anybody
else,
wanna
question.
L
Great
thanks,
so
I
just
wanted
to
mention
that
makita
has
a
major
focus
on
diverse
firms
and
emerging
firms
and
that
we
research
those
firms
on
your
behalf
and
on
behalf
of
all
of
our
clients.
So
we
do
work
with
many
large
pension
funds
in
other
states
that
are
able
to
set
specific
criteria
and
have
programs
for
diverse
and
emerging
managers.
L
We
also
work
with
endowments
and
foundations
that
can
be
very
explicit
about
their
goals
in
that
area,
and
so
we
are
continually
looking
at
firms
for
those
mandates
and
when
we
find
good
ones,
we
include
them,
often
in
discussions
with
your
staff
when
they're
looking
for
managers,
and
so
we
have
our
series
of
diverse
and
emerging
manager
days
to
try
to
to
find
new
groups
that
might
be
appropriate
for
our
clients
and
the
next
one
is
coming
up
at
the
end
of
april,
and
so,
if
there
are
any
firms
that
you
want
to
refer
our
way,
we
have
our
research
team
meet
with
the
firms
and,
if
they're
ready
for
more
due
diligence,
we'll
move
forward
with
them.
L
B
Do
you
guys
ever
put
together
like
a
little
deck
like
this
or
four
or
five
slides,
lauren
sort
of
push
out
what
you're,
finding
and
learning.
B
A
F
Have
a
question
I
don't
know
if
it's
to
the
group
or
to
heartbeat
just
to
follow
what
dick
dicks
or
trustee
santos
said.
I
I
agree
completely
with
the
the
merits
of
diversity,
with
respect
to
governance.
Does
this?
Does
this
have
to
be
included
in
any
way
in
terms
of
following
the
rules
on
permissible
programs
or
collection
of
data?
Is
that
something
that
needs
to
be
addressed,
or
maybe
it
has?
I
don't
know.
E
Well,
I
would
say
it's:
it's
not
good,
it's
not
it's
not
mandated,
but
you
know
it's
up
to
the
board
to
decide
whether
it
wishes
to
gather
data
or
do
any
of
those
other
things
that
jenny
mentioned.
F
Q
Well,
I
think
you
want
to
make
sure
that
you
know
when
you're
operating
in
california
under
209,
if
you're
making
a
decision
related
to
diversity-related
data,
it's
going
to
be
better
to
have
that
reflected
in
something
written,
whether
it's
you
know
a
governance
policy
or
an
investment
policy
or
something
else,
and
make
sure
that
it's
consistent
with
your
other
governance
documents
just
so
that
there's
not
an
inference.
It's
not
that
it's
necessarily
legally
required
that
you
do
that.
But
what
you
don't
want
to
have
is
a
situation
kind
of
here's.
Q
Your
worst
case
rate
that
you
you
go
out
and
you
can
collect
a
bunch
of
data,
but
you
haven't
really
articulated
well,
why
you're
doing
it
and
then
you
don't
really
know
what
you're
going
to
do
with
it,
and
so
then
it
then
there
it
is,
and
you
and
you
have
it
and
you
know
it
and
that
can
just
create
inferences
of
okay.
Well,
why
did
we
collect
it?
How
did
we
use
it?
And
so,
if
we're
very
clear
about
those
things,
then
we
can
avoid
an
inference
that
say
we
we
used
it
to.
Q
You
know
select
a
a
provider
based
solely
on
on
these
impermissible
classifications.
So
that's
why
the
documentation,
as
well
as
the
kind
of
the
backup
data
that
we
were
talking
about,
is
helpful.
E
But
it's
up
to
the
board
as
to
whether
or
not
you
you
want
to
go
down
the
route,
at
least
in
terms
of
encouraging
people
with
whom
you
do
business,
to
consider
diversity
and
inclusion
in
their
management
structures
and
gather
data.
If
we
want
to
do
that,
that's
a
board
decision,
and
then
you
know
we
can.
We
can
frame
some
governance
terms
around.
A
That
the
way
jenny
describes
so
that
it
it
it
is
fully
contextualized
within
the
prop
209
boundaries.
B
Anything
else
for
jenny,
I'll
just
know,
jenny
was
right.
I
looked
up
jenny
just
to
see
what
the
delta
in
the
vote
was
danny
said
about
55
percent
voted
25
years
ago
for
prop
209
a
little
little
under
that
that
54.55
and
interestingly
prop
16
to
repeal
it
actually
passed
by
a
slightly
broader
margin,
so
that
would
indicate
over
a
quarter
of
a
century,
at
least
that
the
will
the
california
people
has
held
pretty
constant
in
this
regard,
you're
just
looking
for
trends
and
there's
no
trend
there
and
jenny.
B
That
was
great
thanks.
A
lot
we'll
move
on
now
we're
going
to
and
look
for
votes
on,
the
service,
retirement
of
joaquin,
barreto
police,
sergeant
police
department,
effective
jan
31
2021,
with
25.08
years
of
service
and
deferred
vested
for
david
santos,
police,
captain
police
department,
effective
march
15
2021
with
25.3
years
of
service.
So
I
have
a
motion
to
approve
these.
Oh.
B
What
should
you
approve
by
santos?
Do
I
have
a
second
second
by
muyo,
thanks
nick
go
around
the
table,
andrew
hi.
A
B
B
Dick
says
I
vince
hi
and
chair
lanza
says
I
anybody
make
any
comments
about
sergeant,
bereto
or
captain
santos.
A
B
Amen,
great
I'll
I'll,
announce
those
who
are
retired
members
that
have
passed
away
recently
in
the
moment
of
silence.
B
The
notification
of
the
death
of
george
de
la
rocha,
police
officer,
retired
feb
6
died
january
20
2021,
leaving
behind
no
survivorship
benefits
the
notification
of
the
death
of
philip
j
hadda
police
sergeant
retired
september
6
1989
died
january
24,
2021
survivorship
benefits
to
kerry,
hada
his
spouse,
a
notification
of
the
death
of
ronald,
shannon
firefighter
retired
july
7
1981
died
november
23
2020,
leaving
behind
no
survivorship
benefits
I'll
I'll
point
out
that
that
that
god
bless
masters
hannah
and
shannon
they're,
both
within
spinning
distance
of
90..
So
good
good.
For
you,
guys.
B
Notification
of
the
death
of
joe
vasta
police
officer,
retired
march
6
1997
died
january,
22nd,
2021,
survivorship
benefits
to
penny,
vasta
spouse
and
the
notification
of
the
death
of
raymond
wendling
police
officer,
retired
feb,
19
1995
died
january
2021
with
survivorship
benefits
to
bonito
wendling.
His
spouse
will
take
a
moment
of.
B
D
A
Thanks
thanks
dick
yeah
we're
seeing
more
and
more
of
these
and
starting
to
hit
a
little
closer
to
home,
as
you
realize
that
you
work
with
a
lot
of
these
guys
knew
some
of
them
didn't
know
everybody.
I
will
say.
I
know
that
ray
ray's
son,
I
believe
jay
is,
is
still
with
the
pd,
we're
friends,
rode
motorcycles
together
and
very
sad
to
to
see
that
all
of
these
folks
believe
in
us
so
condole
to
their
family
and
friends,
and
they
will
be
missed.
B
Great
thanks,
dick
and
nick
now
we'll
go
through
the
committees
investment
committee
over
to
you,
ashvar,
for
an
oral
report.
A
Yeah,
so
we
had
a
meeting
last
month
and
the
things
that
we
discussed.
What
is
the
strategic
strategic
asset
allocation
meeting
and
we're
going
to
have
a
vlog
on
16th
of
march?
We
also
discussed
the
city's
pre-funding
which,
before
the
board
today
and
we
discussed
the
meeting
scheduled
for
2021.
B
Anybody
have
any
questions
for
ashvar,
if
not
for
the
record,
let
me
note
that
we
are
receiving
and
filing
the
minutes
from
december
22nd,
for
both
our
police
and
fire
investment
committee
and
the
joint
investment
committee
we
have
with
federated
howard,
did
a
great
job
chairing
his
first
audit
committee
meeting,
which
I
had
the
great
pleasure
of
sitting,
I
missed
the
audit
committee.
I
had
a
lot
of
fun
doing
that
oral
update
for
about
that
meeting.
Howard.
F
Thank
you
trustee
for
chairman
lanza
yeah.
The
overall
update
is
we
had
a
meeting.
Last
month
we
had
an
update
on
the
city
auditor's
recommendations
of
which
roberto
had
explained
earlier
about
the
investment
expenses
being
moved
out
of
the
ors
budget.
The
internal
auditor
juamon
bosina
presented
the
ors
internal
survey,
the
assessment
of
the
internal
audit
division,
as
well
as
the
status
of
the
audit
recommendations,
and
there
was
a
conclusion
to
work
on
some
recommendations
concerning
potential
independence
of
the
internal
auditor.
With
respect
to
ors.
B
Any
questions
for
howard,
let
me
go
through
the
deck,
then
4b
notice
we're
receiving
filing
minutes
from
the
october
15
2020
joint
audit
committee
item
7.2
c
we're
receiving
and
filing
the
quarterly
travel
and
attendance
analysis.
B
Would
you
guys
want
to
cover
update
on
the
city
auditor's
recommendations,
or
do
you
want
to
just
no?
Yes,.
C
On
the
attachment
pay
page,
I
think,
is
one
out
of
nine,
which
is
recommendation
number
zero
five.
Oddly
enough,
it
deals
with
the
annual
administrative
budget
process
and
what
is
it
to
be
included
in
the
budget
process?
C
And
I
just
wanted
to
know
that
the
version
that
you
have
before
you
on
a
target
day
it
is
it
is-
he
reads
to
be
determined.
Over
the
weekend.
I
receive
an
email
from
the
city
auditor
who
is
presenting
his
update
on
the
recommendations
of
the
city
council,
and
I
agree
with
him
to
allow
him
to
indicate
the
new
target
date
to
be
june.
30Th
2021.
C
We
also
agree-
or
I
mentioned
to
him-
that
we
should
get
together
to
discuss
further.
I
just
wanted
to
let
you
know
that
basic
difference.
I
remind
you
that
this
is
a
topic
where
I'm
very
clear
what
the
board
post
positions
is
considering
the
legal
analysis
by
your
general
counsel.
This
is
the
position
by
the
city.
C
So,
although
I
did
agree
with
the
target
date
of
june
30th
2091
because
he's
concerned
that
he
always
wanted
to
make
sure
that
he
had
a
target
day
and
he's
not
up
and
ended,
I
will
keep
you
posted
on
my
discussion
with
the
city
auditor
and
see
where
what
is
the
next
steps
to
be
taken
other
than
that,
mr
chair.
They
know
there
are
no
other
updates
or
changes
to
the
document
as
presented
great.
B
Thanks
roberto
that
now
we've
got
two
items
from
our
senior
internal
auditor,
so
let
me
turn
over
you
for
those
in
you're.
Gonna
want
to
vote
on
that.
Second,
one
is
that
right,
robert
you're,
looking
for
an
approval.
C
Yeah,
so
a
couple
of
things.
First
of
all,
I
just
wanted
to
human,
our
senior
internal
auditor.
It
is
at
the
meeting
this
morning,
so
I
wanted
to
introduce
him
to
the
full
board.
He
had
a
chance
to
meet
the
members
of
the
other
committee
a
couple
of
weeks
ago,
so
he
is
available.
C
If
anyone
have
any
specific
questions.
These
three
items-
e,
f
and
g-
were
discussed
in
detail
at
the
audit
committee
and
as
a
committee
chair
indicated,
there
are
some
issues
that
we
agree
will
be
discussed
further
in
terms
of
dealing
with
a
potential
conflict
of
interest
for
the
senior
auditor's
division
and
his
position.
C
So
we
certainly
have
further
work
to
do
again.
We're
happy
to
answer
any
questions.
I
think
they
hided
that
that
we
will
be
looking
for
your
board
to
approve
a
recommendation
by
the
investment.
I'm
sorry
by
the
audit
committee
is
item
f
and
the
action
on
the
assessment
of
the
internal
audit
division
by
the
office
retirement
services.
C
I
think,
if
I
remember
correctly,
I
don't
recall
what
the
emotion
was,
but
I
think
that
the
committee
was
generally
in
favor
of
the
assessment
provided
by
the
senior
auditor
that
will
ask
the
board
to
again
make
a
motion
probing
that
action
and
again
well
happy
to
answer
any
questions
and
human
is
available
in
case.
You
need
some
more
specific
discussion
on
any
of
those
three
items.
Thank
you,
mr
chair.
B
F
I'm
sorry,
I
would
say
that
it
was
very
helpful
to
know
that
roberto
had
been
in
human
shoes
and
can
understand
the
the
perceived
potential
conflict
of
interest
and
the
the
need
for
some
level
of
independence.
And
I
think
that
was
the.
The
action
item
was
for
council
and
staff
to
come
up
with
a
recommendation
to
the
committee
to
go
forward
on
how
to
address
that.
E
I
think
what
we're
not
sure
this
is
an
action
item,
but
I
at
the
on
page
six
of
the
back
up
to
this
item.
The
assessment
there's
a
recommended
corrective
action
plan,
and
so
I
believe
that
if
there
is
a
request
for
action
other
than
to
receive
and
file,
this
report,
that
that
is
the
request
for
the
board.
B
To
consider
the
items
listed,
there
numbers
one
through
five.
That's
that's
my
recollection
too,
from
the
meeting,
so
the
the
chair,
the
floor
will
entertain.
Chair
will
entertain
motion.
B
To
approve
item
4.7.2
f:
do
I
have
a
motion
to
approve.
B
Yes,
vince
hi,
and
this
is
chair
lanza,
I
vote
I,
you
know
I
think
you're
doing
this
anyway.
Are
you
doing
the
survivor
words
that
really
high
function
boards
are
so
transparent?
You
can't
keep
up
and
I
think
it's
great
revert
to
what
you
you
know
what
you've
done
with
prabhu
about
hey,
here's
all
of
our
fees,
there's
all
the
money's
going.
You
know
now.
We've
got
jenny
and
and
harvey
talking
about
hey
here's,
what
we're
doing
the
edi.
B
I
think
this
is
spot
on
rupert.
Let's
just
keep
putting
it
all
out
there,
it's
all
transparent
as
hell
I
and
then
we're
just
racing
ahead
of
that,
and
I
think
that's
that's
super
smart,
my
hat's
off
to
you.
I
know
you
come
from
the
audit
world
so
near
and
dear
to
your
heart
governance
committee.
Anything
to
report
nick
on
governance.
B
Great
and
then
disability
committee,
dick,
I
know
we're
not
meeting
this
monday.
Your
report.
B
Great
thanks,
let
me
note
for
the
record:
7.4
b
we've
got
the
minutes
from
the
december
7
pearl
harbor
day,
meeting
december
7th
2020
and
we've
got
those
in
hand
vince
anything
on
the
joint
personnel
committee.
M
We
will
have
some
action
coming
soon
in
terms
of
scheduling.
A
meeting
we've
got
a
couple
items
to
resolve.
One
is
addressing
the
ceo
benefits.
Analysis
survey
and
study
that
we're
hoping
that
coffin
associates
will
complete
for
us
I'll,
be
working
with
our
ceo
on
that
and,
secondly,
the
joint
personnel
ad
hoc
committee
has
been
working
on
updating
and
refining
the
cio
compensation
evaluation
format.
M
B
C
Dick
is,
is
it's
me,
I'm
sorry
she
he
likes
to
make
noise.
I
apologize.
I
tried
to
be
beauty
most
of
the
time.
B
The
element
cage
yeah
yeah,
any
member
of
the
public-
want
to
weigh
in
on
everything,
if
not
great,
we're
done
time
for
lunch.
I
want
to
thank
all
the
members
and
we'll
see
you
again
next
month.