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tv   Retirement Board  SFGTV  August 6, 2022 4:00pm-5:31pm PDT

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welcome to the meeting of july 14, 2022 >> i would like to remind all individuals that the virtual meeting protocols will be adhered to at all times.
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>> madam secretary, please call the roll. >> [roll call] >> we have a quorum.
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>> public comment call-in: 415-655-0001 access code: 2496 884 4887 providing public comment ? public comment will be available on each item on this agenda. each speaker will be allowed 2 minutes to speak. comments or opportunities to speak during the public comment period are available via phone call by calling (415) 655-0001, access code [2496 884 4887], then '#' and then '#' again. ? when connected you will hear the meeting discussions, but you will be muted and in listening mode only. when your item of interest comes up, dial *3 to be added to the
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speaker line. best practices are to call from a quiet location, speak clearly and slowly, and turn down your television, radio or computer. >> thank you for joining us. >> we'll take public comment. >> thank you. >> we have no public speakers at this time. >> there are no callers on the line. >> thank you. >> i would like to formally welcome allison romano.
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again i look forward to working with you and share all the staff, the commissioners and the constituents -- so -- >> thank you. >> madam secretary, do you want to call the item. >> 3. 071422-03 action item review and approval of july 2022 board resolution to continue to meet in-person with some members possibly attending remotely for at least 30 days pursuant to california government code section 54953(e) documents provided to the retirement board prior to the current meeting: staff memorandum, retirement board resolution 2022.07.14.
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>> i move to approve. >> we'll take in person public comment first. >> i'm sorry, who seconded the motion? >> i seconded. >> thank you. >> we have no in person public at this time. a reminder to the callers, please press star 3. are there any callers? >> madam secretary, there are no callers. >> thank you. public comment is now closed. >> we have a motion and second. >> commissioner did you second
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that? >> yes. >> >> roll call, please. >>clerk: [roll call] >> >> thank you. we have 5 ayes. motion passes. >> we will go into closed session. what do you think the time will be? >> what was the question? >> we are going to move into closed session. how long do you think it will take? >> depends on the item. we have two closed session items. >> all right. we'll go with
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we are now in open session. please call the roll. >> >>clerk: [roll call] >> leona bridges, present. joseph driscoll? present. shruti gandhi? present. scott heldfond? here. aj thomas? >> here. >> thank you. >> we have a quorum.
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>> scott heldfond? >> the motion is to whether we discuss closed session? >> is there a motion? >> so moved. >> second. >> the motion is made by commissioner driscoll and
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seconded by commissioner thomas. >> roll call, please. can we get a clarification that that was a motion not to disclose? >> i motion not to disclose what was discussed in closed session. >> thank you. >> we have no in person public at this time. a reminder to any callers to press star 3 to be added to the queue. >> moderator, are there any callers? >> madam secretary, we have no callers on the line. thank you. >> public comment is now closed. >> >> roll call, please. >>clerk: [roll call]
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>> we have 5 ayes. motion passes. >> >> item 5. 5. 071422-05 general public comment - not earlier than 1:30 pm there is no in person public comment at this time. reminders to callers to be added in the queue. >> moderator, are there any callers? >> madam secretary, we have one caller on the line.
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>> >> caller, please go ahead. >> my name is john. i'm not an expert on what i'm going to talk about, but the issue is real. you should look at the article bona fide expert over weight private equity again. as i noticed last month the difference between your public performance and public and private equity is far too large to get realistic and it's getting larger. this month, according to the cio, the gap actually increased 2.6 further to further 9.2 points with public equities down and private equity up 14.1%. the private equity liquidity
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premium is supposed to be 3-5 points, not 39. both your ceo this month incurred last month evaluations. she puts it mark down across pe landscape. with 27% of total, 9.7% above target. your peak year performance is more than reported and i'm also skeptical of your very positive return points for private credit and maybe even real assets. all of these three assets will be discussed at your next meeting. your large oversight and -- over weight performance has shown this and how to deal with this is the subject of the july
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article called assets are over weight private equity again by a private investor. thanks and congratulations to your new ceo/cio. thank you for the public comment. >> thank you. >> are there any other callers? >> madam secretary, there are no other callers. >> thank you, we have one public comment received by email. would you like to read it? >> yes, thank you. >> this is the email received from john stenson. at your may first board meeting, you received a lecture from the city attorney informing you about fiduciary responsibility. in my opinion investing in high risk low liquidity investments like hedge funds is beyond your responsibility and also welcoming the chief officer and
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executive offer position is a big mistake. a cio should focus on investments and not administrative duties. when it comes to investing, you should sell all of your investments and invest 3,000 of those in cash and spend on a san francisco office building. >> thank you, public comment is now closed.
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>> i move adoption of the minutes as written. >> second. >> it's been moved and seconded. >> do you have that, madam secretary? >> yes. >> are there any callers on the line? >> there are no callers on the line. >> thank you, public comment is now closed. >> >> roll call, please. >>clerk: [roll call]
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>> >> we have 5 ayes. motion passes. >> call the next item. >> consent calendar. >> i move adoption of the consent calendar as presented. >> second. >> >> just a reminder to please turn on your camera.
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>> >> i can second that. >> okay. moved and seconded. madam secretary. >>
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>> >> i would like to welcome and glad to have you on board. >> item 8. >> 8. 071422-08 discussion item chief investment officer report documents provided to the retirement board prior to the current meeting: cio report action: this is a discussion only item. >> good afternoon, again, i want to highlight in the cio report and this is followed by a very in depth report that you are used to seeing from the team as well as logistics along liquidity and flows. i want to provide a real snapshot of what's going on in the environment and there is a challenging environment and i want to provide some context for the fiscal year 2022 performance
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and highlight what those challenges are today and really summarize of what those means for our various asset classes. with that, to the extent that you have the materials in front of you, i'm going to start with the investment review slide 2. in some respects on this graph what i'm trying to do is capture what many people already know but it's really helpful to put it down on paper and say we are coming along a very tough period in the over all market and for the gross part of that market is up 25%. remember we have a lot of u.s. exposure in particular knowing that we like technology and
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areas of health care, there is a lot of growth exposure. even with blumberg, it was 5.34%. those are very strong runs. while it's disappointing to see the markets turn as they d it's a very strong period and you can see what was driving the market in the gross segment. what we also saw over this last year was the proof of statement concept if you will with the diversification. we saw that the global markets were down 15.5%, and a 60/40 portfolio fixed income given that fixed income was down, that did start to affect the
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portfolio and once you give the mix and the loss is less and i would like to emphasize the preliminary numbers, but by the addition of private market assets, that diversification helps manage the down side that a peer public portfolio would have over the last year. preliminary numbers and there is some lag in some of the those private numbers but the diversification benefit is real. when we break that down to individual asset classes, what i will say here too is that performance has been generally consistent with what we would expect. again, don't like to see a down equity market but that is the reality of investing and is down markets in other classes, but having the exposure to real assets with a 27% return was certainly a positive. absolute return did not fall as much as
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the equity book and in doing so helps protect somewhat on the down side with private credit and private equity. so what does that mean? >> so where are we now? some of the key things and these are the things that are hitting every headline. the possibilities of inflation have decreased and they have raised rates and they can cause a recession, if they don't raise rates enough, we end up in a continual spiral of inflation. there are some issues related to covid and hopefully we'll know more from china but that is the question. the war in ukraine, a huge
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tragedy for sure that is also impacting the market and ramifications for inflation. what does the macro mean for investing in markets. certainly market volatility is back and commodity and commodity related areas did provide an inflation hedge and we have seen spikes in inflation. there are some areas like oil that are starting to pull back slightly. we have also seen a lot of volatility in the bond market and we have seen some of the widest spreads in volatility between the bond market and equity market which is more than we have seen in the last ten years so there is some concern about the state of the economy. i think the real question is going to be in part what do we start to see out of the earning season and we have already seen some banks reporting. we know there is going to be
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market compression given inflation and wage cost. how much is that going to be into earnings and buybacks for earnings growth. so what are the financials and some of it is a mixed bag and potential weakness in the market. we'll get a better picture in the next few weeks in the equity side of the economy. turning this to what this means particularly for our asset classes, in public equities there has been a big pull back in tech and biotech and certainly an opportunity for those markets looking for an attractive sector given the growth behind them. policy credit, it is an
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opportunity for fundamental credit pickers to do their work. on the credit side, there was some with private and with it being tested with the down turn in 2020 and we'll see as other covenants play out and i know we are very focused with looking at strong asset underwriting to fix some of those issues. absolute return quan is back and macro, but they are coming back and taking advantage of the market volatility that is there. on real estate, we are seeing some slowdown, and some price discovery but this is an
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opportunity for inflation hedges and certainly in areas that have short-term leases that can provide that hedge. then on the private equity side, mark downs are expected. that is the nature of the way that private equity works, the lag between public and private markets. sometimes they are slowlier on the way up than they would be slower on the way down. that said in talking to our private equity managers across the industry, there is an increased focus on the strengths of what they are investing in and categories and cash flows. so given where we are today to continue to generate return. there is a lot of volatility on the market and risk on the down side but we are focused on the long-term, not on the short-term and putting together a portfolio
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that will take advantage of these opportunities in totality and within each class. >> unless there are any questions on the market overview, i can go into the total asset value and the deals we have approved in closed session that have since closed. >> any questions? comments? >> i have one question, but it goes to the performance numbers and the current balances and the different classes. the large change in the public markets in the last 12 months. therefore it looks like our public equity is under target and private equity is over
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target. those are two big numbers. maybe this is what's coming up in the investment committee meeting next week, but there is the denominator effect with those huge movements, not that we are going to reverse it but if it were not that minus 25 in the last year, with the wage to the various assets classic be that much closer to target? >> there is, i think is a combination of the denominator effect of public equities, and the fact that the private equity remains strong with the lag so there is a denominator effect. >> yes, they don't change as much in the equity market. for those paying attention to this and trying to interpret these numbers, i want to be sure
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they are not combining apples and oranges as delicious as they might be. >> thank you. >> i should note for the record that the total value as of june 2022, on the preliminary numbers is $33.1 billion. now to provide an update on deals that were approved in closed session that have subsequently closed. >> first searchlight opportunity fund 2, may 12, 2022, the board approved in closed session up to $60 million investment. the $60 million investment closed june 30, 2022. second, headline u.s. 7, may 12, 2022, closed up to $40 million investment close june 30, 2022 in the area of venture capital.
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june 9, 2022, the board approved in closed session an investment of up to $125 million. first commitment of 115 million closed to june 30, 2022. this is in the area of real estate. finally, i want to bring to everyone's attention that we have a meeting scheduled july 20th at 1:00 p.m. >> this presentation is worth a thousand words. i appreciate it. >> sure. >> any other questions? >> thank you.
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>> >> public comment. >> we have no in person public at this time. a reminder to any callers to press star 3 to be added to the queue. >> moderator, do we have any callers on the line? >> madam secretary, we have one caller on the line. >> caller, please state your name. >> my name is john again. two comments. the fiscal year to date, as i said earlier it just not real. that 39% gap as the ceo addressed is not real. i also between public and private equity, but your performance is much much worse than what is being shown here. back in december and january, i'm going to switch now. back in december and january, i said that i thought valuations were
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much too high and fortunately they have come down and now she said earnings may come down. we'll see what happens. i asked then and would still like to know what do you think the valuation are of your assets? i never ever ever see that. these are simple metrics and i would suggest to smooth out the technicality. but to give some sense of what you think cyclically what the valuations are. i think they are high and you need to give some sense but you never show it. anything else here? no, i guess that's it for now. i know diversification works.
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i'm all for diversification. >> you have a few seconds remaining. >> i would suggest you read it. it's private equity again, july 10th, institutional investor. i hope you read it before your next meeting. it discusses many ways to get into it and hopefully your valuation will grow and close that gap. but that's not the only way to deal with it. july 8th, institutional investment. thank you. >> thank you for your call. are there any other callers? moderator: there are no other callers. >> thank you. >> deferred compensation plan calendar
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9. 071422-09 discussion item deferred compensation committee report >> commissioner bridges? >> thank you, the compensation report is in your packet and we are forwarded to the board for approval and that will be discussed and i will pass it over to the director and we'll walk through it and submitting this item to the board for full approval.
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>> >> yes, item 12 will be presented to the board as an action item. >> i'm sorry, item 10. >> >> this is the item we are reporting to the board item 10 that you can discuss at this point. >> i'm sorry? >> >> this is the item we are discussing right now. i don't know where you are? >> yes, to answer your question, we are going to discuss the item and i believe it's calendared item 10 and will be discussed next. i'm prepared to present on that item. would you like me to present that now? >> no. we'll go to item no. 9,
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committee report. >> mr. chair, that is the item that i am presenting. it will be presented by the director for full approval by the board. >> okay, we are done with this discussion item, right? >> yes. >> and we'll go down to 10. >> public comment before we move on, please. we have no in person public comment at this time. a reminder to any callers -- moderator, do we have any callers on the line? >> madam secretary, there are no callers on the line. >> thank you. the public comment period is now closed. >> 10. 071422-10 action item
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approve the first amendment of the sfdcp plan document >> thank you for your time. item 10 is to propose an amendment to the plan document as indicated in the memo. they are privy to an exclusive catch up provision only to government employees called special catch up. this allows participants to contribute up to twice the annual limit based on any utilized amount. we have been very busy the last six weeks processing and screening the nearly 100 lump sum pay outs as they have chosen to retire. the age also known as nra
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currently designed in the plan where they have a right to receive reduced benefits no later than the age of 70 1/2. and this means it's a different age factor. while this is consistent with state regulations, it douglas not identify nra safety which is a special rule to special and qualified state employees to a rate of safety and was presented to the compensation committee june 22, 2022. the committee has forwarded this amendment to the retirement board for recommendation for approval and that is what we are
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seeking. the amendments in the plan docs are before you and i'm happy to answer any questions from the board. >> commissioners, any questions? >> >> i urge my colleagues to support this change. i want to thank diane and her team for doing a lot of service work the last several weeks of how this went into effect and the deadline involved. three, to alert the board, i think the committee will discuss this further at subsequent committee meetings and there were other items that we were not able to discuss. and this will help our members and eligible participants to save more money. the way this is right now, this is a good temporary fix. thank you. >> i understand the motion would be to approve what we have in
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front of us with the need to make tweaks, yes? >> yes. >> okay. >> second. >> commissioner driscoll second. >> madam secretary, do you want to call for public comment. >> thank you. we have no in person public at this time. callers press 3 to be added to the queue. >> modest -- moderator, do we have any callers? moderator: we have no callers. >> please call the roll.
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>> [roll call] >> 5 ayes. the item passes. >> item 11. >> item 9? did we discuss item 9? >> it was the committee report. >> thank you. >> are we moving forward to the next item? >> yes. sorry. >> okay, thank you.
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>> commissioners, as indicated earlier, we have a very busy several months. there are a few updates for you today and more will be provided next month. this is where all participants are notified of a decrease in administration fees as a result of prudent spending and planned growth. you can get a copy of this mailer. and there is new material. this includes the raised that most employees will get in july along with a 1% decrease in management deferral. we are excited to track the response and activity and will provide a 30 day metric when they come. as a reminder, they are directly
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related. and that will be for one year period and reevaluated when needed. i'm pleased to announce the replacement of new hire and his biois on sf and now we are in a nice jump since the bond increased over the quarter to 2.25%. a big factor in the jump in yield is raising the rates to 50 points in may. also the targeted funds rfp is in motion. the responses are due
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by end of week and to remind the board that we are still in a blackout period. finally, attached is the monthly report. it includes the cash flows, demographics and loan information. i'm happy to address any questio
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>> >> it's been moved and seconded. >> we have no public comment at this time. >> i will remind the callers to press star 3 to the added to the queue. >> moderator, do we have any callers? >> madam secretary. we have no callers at this time. >> thank you. public comment is now closed. >> >> roll call, please. >> >> roll call, please. >> [roll call] >>
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>> thank you. we have 4 ayes. motion passes. >> 16. 071422-16 discussion item amended schedule of 2022 retirement board meetings >> >> do you have your committee assignments at the same time? they go hand in hand. >> >> yes, do we want to table it? >> table it please. >> move to table one month. >> second. >> do i need to amend the motion to also call for a special meeting in august? yeah, i will move to table this item and call for a special meeting on thursday august 11th
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at 12:30 p.m. >> >> i second this motion. >> are we good on the motion and second? >> please call for public comment. >> thank you. we have no in person public at this time. moderator, do we have any callers? moderator: madam secretary, we have no callers on the line. >> thank you. public comment is now closed. >> >> roll call, please. >>clerk: [roll call]
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>> >> thank you. >> we have four ayes. motion passes. >> 17. 071422-17 action item request to amend the actuarial funding methods policy to amortize the impact of proposed charter amendment - file no. 220640 retiree supplemental cost of living adjustment - over a ten-year period, should it be approved by the voters. >> okay. i have spoken a lot to -- on this item and a lot of work went in to actuate.
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>> so let me turn it over. allison, are you presenting this? >> sure. i can. >> i'm assuming that everybody has read the deal was basically in a nutshell to this that was agreed to and came up to 5.9
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instead of the 6. i will open up to my fellow commissioners to ask any questions of ms. romano, or i will try to answer them. i will open it up for discussion. >> i have two questions. >> i will do the technical one first. this vote recommends the change to do an amortization over ten years instead of five. is that always the best and in this case it's an actuarial related task. is ten years still considered a best practice for this type of benefit and how it affects our liability count?
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>> >> i believe we have janette on the line to address that actuarial perspective. >> yes, various guidance has been issued from the public plans committee and from the california actuary advisory panel for different categories for the different parts of their funding policy. the five parts would be five categories would be a model practice which i think that you are thinking of as the best practice, perhaps. they don't label it that way. second would be an acceptable practice, third would be acceptable with conditions, fourth would be a not recommended practice and fifth would be an acceptable practice. in my professional opinion that amortizing this for the 6
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retirees over ten years in this category would be an acceptable practice. >> thanks for that very good clear answer, janette, as usual. you know the answers to all of these very difficult questions. >> the second question then, commissioner heldfond, based on the way you introduced this item. is it just a coincidence that commissioner was involved in this because you wouldn't use the phrase negotiation. i assume the retirement personnel were not doing any negotiation over this benefit increase. >> i am going to say that i cannot answer that, but i would prefer that president answer
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that. >> okay. we also wear different hats because of different responsibilities, but we have policies on what the board should do and not do and one of them is not make any changes to the benefit. we pay benefits, we don't award benefits. that's driving at that issue because of the way the term negotiation was used. >> maybe i used the wrong words. i used that word. the parties that were involved hammered out the details. i'm comfortable with this and in the spirit of the letter and process.
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i don't know about the vote, but i will pass this on to commissioner safai. >> chair heldfond, given the status of this practice, it would be good to have an explanation and discussion and i understand that president safai was the prime person in discussion of this. would it be good to table this to give president safai an opportunity to discuss this. >> is this critical?
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>> so the charter, it's not yet on the ballot. so what you would be approving today is that we will change the policy to the ten year period. from that perspective, you have time to approve it because the actual approval won't happen until the amendment is voted on by shareholders. >> we can put this off for one month? >> the only thing is i'm not sure the board can issue it when the board is to put it on the ballot and if the board is to consider this next week. >> the question to staff do we
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have it confirmed that the board of supervisors need this board to way in on this item before the final reading? my understand is that it is already out of committee there, but if it's not the case, i need to know. >> i believe it is already considered in committee. if they don't need additional information of the board, it won't be time sensitive. i agree with director romano. >> one of the issues with a charter like this, is the comptroller stated about the cost. if it's a 10 year amortization, to a five year, that would need to know. in terms of timing, i don't know how those deadlines are
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submitted and maybe to be conscious of the board and maybe to account for this at the next meeting as opposed to the august meeting which may help those who were involved in trying to establish this change. >> are you saying we can do it at the investment committee? >> i think we can do it. we'll have a meeting next week. >> >> i think as a matter of procedure we have to calendar it as a special board meeting. it can be at the same time but it's two different meetings. >> a committee as the whole. whatever works for next thursday or wednesday. >> the question, i don't want to
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run afoul of our notice. >> if there is notice for the meeting for next wednesday if that is the decision today. >> it if it's shorter, it can appear in a special meeting. >> >> i raise that on the assumption that august 4th meeting might be too late. if someone is able to talk to the comptroller to talk about the
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assessment. at the next regular board meeting, we can do it then. we are not trying to obstruct this. >> we are obstructing this. >> it is going to the board of supervisors i believe next tuesday. if we are trying to get it in before it goes to the full board, it might be too late on wednesday. >> it goes in next wednesday to the board? >> next tuesday, the 19th. >> my understanding was that commissioner driscoll was attempting to address the timeliness of getting something posted to the ballot with regarding the cost, not in time to make it to the board. my understanding also is that the board does not require us to act on that act otherwise we need to deal with this right now. if the board requires us to weigh in and the discussion and
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questions about best practices and all that. otherwise if there is still time, we can go to the special meeting next wednesday to hit the ballot argument statement that commissioner driscoll mentioned or push this to the next meeting in august. >> let me just confirm that. >> we can take a brief recess. >> madam secretary, i suggest we take a brief break while we are making a confirmation. >> motion to take a ten minute recess. >> you are muted, scott. >> commissioner bridges?
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>> are you okay to stay? >> commissioner gandhi is coming back on. >> okay, that's fine. >> we are back in open session. >> we have a motion on the table and we've had some discussion. i will ask the commissioners whether you have any comments? >> we have to deal with this today. >> before it goes to the board of supervisors. >> my question is to chief romano, given your familiarity with this item and ballot
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measure, are you comfortable with the tier for this specific item? >> thank you, for this specific item related to the amendment, i am comfortable with the move to the ten years. >> in light of those comments, i would like to make a motion to adopt the action in the agenda under item 17. >> i second that. to do an amortization of the change to the liability group only. >> it's been moved and seconded. any public comment? >> a reminder that there are no public persons at this time. do we have a caller on the line? >> we have a caller on the line. >> thank you. >> you have two minutes to speak.
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>> speaking on the benefits, i would like to know, i mean actually, yes you should vote on it today because it was unanimously passed by the board of supervisors on tuesday. they have been down to $167,000 as opposed -- and to the board of supervisors on a ten year basis. and very concerned about the cost and anybody who has a pension of over $50,000 that is capped will be getting an increase of only $200. there is no retro activity and great job on working with everybody to make an exception for the
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general fund for the retirement system. i applaud his efforts and i thank you for acting on it today, and i look forward to meeting the new ceo/cio allison. i have heard nothing but good things about you and you have a wonderful retirement system. thank you. >> thank you for your call. moderator, are there any further callers? moderator: madam secretary, there are no other callers. >> there are no other callers. >> i will close public comment. >> >> roll call, please. >>clerk: [roll call] >> joseph driscoll: i hear you. this board did not participate
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in any of those negotiations. we are just changing the amortization period. i vote aye. >> mr. gandhi? >> i guess i'm not sure what's going on. is there something that should be there, some comments made? >> i'm asking a question. i'm not sure what's going on. is there a comment i should be aware of? >> commissioner, i would just say that we are extending, we have proposed the board to extend the amortization period. normally our policy says that in our amendment that it would be a five year period and we have asked for ten years which is
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acceptable and meets all the requirements and that's the comments that were made. >> okay, i'm okay with that, yes. >> thank you. >> scott heldfond.. aye. >> commissioner thomas? >> aye. >> thank you. we have four ayes and the motion passes. >> thank you. >> with covid and the way we are doing this online, but i think we all did the right thing here. thank you, everybody, for putting up with two breaks. >> let's move on to item 18, i think it is. >> yes, item 18. >> 18. 071422-18 discussion item chief executive officer's report documents provided to the
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these are updates on the amendment. for the forfeiture of pension benefits. since last week, there were changes made to this charter amendment. to summarize to limit the forfeiture period, and secondly there were changes that also define what acts are subject to forfeiture under the administrative hearing process. on the supplemental koala, that will be before the board of supervisors on the 19, and a reminder that it includes a provision to authorize the board to enter into individual contracts with individual directors. >> with that, i wanted to say if you had any questions on the charter amendments specifically, cecilia is available to address those.
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>> if there are no questions? >> i have a question. my understanding is that the meet and confer is still on going. >> that's correct. >> the date is next week? >> it was continued in order to continue meet and confer until next week. >> yes, thank you. >> >> any other questions? >> two other quick items. >> rfp and blackout, we already
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heard from diane and there is a proposal on blackout period and the final rfp. and then i want to remind the board of the list of conferences available to the extent that you are interested. >> i think you are on mute. >> i can hear you. >> scott, can you hear me? >> can you hear me? >> i can hear you, commissioner
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heldfond. >> can you not hear me? >> scott, can you hear any of us? >> commissioner heldfond, do you want to try calling in. >> i think i have got a problem here. >> yes, scott, we can hear you, but you can't. >> okay, let me just carry on doing that. have you finished the report? just nod. >> are there any questions, comments from commissioners?
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>> this is an information item. >> madam chair, do you want to call for public comment? >> we have no in person public comment at this time. >> moderator, do we have any callers? >> madam chair, we have no callers on the line. >> thank you. hearing none, public comment is now closed. >> next item. >> 19. 071422-19 discussion item retirement board member good of the order >> i just made the observation looking on the consent calendar the number of people who were retiring, a special issue earlier. that staff needed to
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perform -- the analyst though running shorthanded, were still able to help all of those coming to retirement july 1st. thank you for your help. >> thank you. >> >> if there is nothing else, motion to adjourn. >> we have public comment. we have no in person public at this time. >> do we have any callers? >> madam secretary, there are no callers at this time. >> thank you. public comment is closed. >> last item is adjournment. >> move to adjournment. >> you don't need a motion. just
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adjourn. >> okay. >> we are at item 20, adjournment. >> [ laughter ] i thank everybody. i guess we need a motion to adjourn. >> second. >> thank you very much, allison, and thank you for being the chief operator. and sorry for some of the glitches. we are done. thank you, everybody. >> >> >>
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[ end of realtime captioning ] >> >> >> after my fire in my apartment and losing everything, the red cross gave us a list of agencies in the city to reach out to and i signed up for the below-market rate program. i got my certificate and started applying and won the housing lottery. [♪♪♪]
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>> the current lottery program began in 2016. but there have been lot rows that have happened for affordable housing in the city for much longer than that. it was -- there was no standard practice. for non-profit organizations that were providing affordable housing with low in the city, they all did their lotteries on their own. private developers that include in their buildings affordable units, those are the city we've been monitoring for some time since 1992. we did it with something like this. where people were given circus tickets. we game into 291st century in 2016 and started doing electronic lotteries. at the same time, we started electronic applications systems.
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called dalia. the lottery is completely free. you can apply two ways. you can submit a paper application, which you can download from the listing itself. if you apply online, it will take five minutes. you can make it easier creating an account. to get to dalia, you log on to >> i have lived in san francisco for almost 42 years. i was born here in the hayes valley. >> i applied for the san francisco affordable housing lottery three times. >> since 2016, we've had about 265 electronic lotteries and almost 2,000 people have got their home through the lottery system. if you go into the listing, you
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can actually just press lottery results and you put in your lottery number and it will tell you exactly how you ranked. >> for some people, signing up for it was going to be a challenge. there is a digital divide here and especially when you are trying to help low and very low income people. so we began providing digital assistance for folks to go in and get help. >> along with the income and the residency requirements, we also required someone who is trying to buy the home to be a first time home buyer and there's also an educational component that consists of an orientation that they need to attend, a first-time home buyer workshop and a one-on-one counseling session with the housing councilor. >> sometimes we have to go through 10 applicants before
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they shouldn't be discouraged if they have a low lottery number. they still might get a value for an available, affordable housing unit. >> we have a variety of lottery programs. the four that you will most often see are what we call c.o.p., the certificate of preference program, the dthp which is the displaced penance housing preference program. the neighborhood resident housing program and the live worth preference. >> i moved in my new home february 25th and 2019. the neighborhood preference program really helped me achieve that goal and that dream was with eventually wind up staying in san francisco. >> the next steps, after finding out how well you did in the lottery and especially if you ranked really well you will be contacted by the leasing agent.
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you have to submit those document and income and asset qualify and you have to pass the credit and rental screening and the background and when you qualify for the unit, you can chose the unit and hopefully sign that lease. all city sponsored affordable housing comes through the system and has an electronic lottery. every week there's a listing on dalia. something that people can apply for. >> it's a bit hard to predict how long it will take for someone to be able to move into a unit. let's say the lottery has happened. several factors go into that and mainly how many units are in the project, right. and how well you ranked and what preference bucket you were in. >> this particular building was brand new and really this is the one that i wanted out of everything i applied for. in my mind, i was like how am i
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going to win this? i did and when you get that notice that you won, it's like at first, it's surreal and you don't believe it and it sinks in, yeah, it happened. >> some of our buildings are pretty spectacular. they have key less entry now. they have a court yard where they play movies during the weekends, they have another master kitchen and space where people can throw parties. >> mayor breed has a plan for over 10,000 new units between now and 2025. we will start construction on about 2,000 new units just in 2020. >> we also have a very big portfolio like over 25,000 units across the city. and life happens to people. people move. so we have a very large number of rerentals and resales of
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units every year. >> best thing about working for the affordable housing program is that we know that we're making a difference and we actually see that difference on a day-to-day basis. >> being back in the neighborhood i grew up in, it's a wonderful experience. >> it's a long process to get through. well worth it when you get to the other side. i could not be happier. [♪♪♪]
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>> you know, i remember when i was a teenager, they did i think it was on the grammys, boss scags narrated the san francisco scene and they did a spot on it and how it's evolved and convergence of multi culture and the emergence of gay community, lgbtq, it was not even called that then.