They are blocked from buying the securities. I just wanted to highlight that there are already decisions made so that you can implement this in a very efficient manner. Finally, if you will turn to the last slide, we will just summarize the next steps in terms of confirming that it works with the planning document and we have confirmed that we have already worked with t. D. Ameritrade on setting up a process for ongoing, and it is just a look to see if participants start using it, we are at 195, currently. We will continue to monitor the fees that are charged, and we have looked at that. Again, it is very competitive and favourable. And then we will run those quarterly screens just to make sure theres nothing that pops up on that restricted list that i already outlined. That is the ongoing process. And they have set up a system that will identify any security that might go to a pink sheet or have some sort of reregistration security, which can happen in various situations. And we will receive a copy of those . Yes. From that, we will update the ips and certainly as we are going through the transition, having steady calls with both t. D. Ameritrade with credential, just to make sure everything is going to transfer in kind, and those that wont, making sure we have made arrangements properlys participants as needed. I will stop there and pause for any questions. Is there a motion on the recommendation from the committee . The committee did follow up on this. The committee is recommending it. Based on the research in the Background Information and our staff. We have a strong recommendation to adopt this. When we are considering a motion, to be addressed in the motion slide four, offering e. T. F. In the existing stock and bond . Im sorry . I think that was a decision that we had. Actually, opening it up beyond mutual funds, so the recommendation would be to approve opening this up to include mutual funds, e. T. F. , and u. S. Exchange. All of the above. That is a full recommendation. And to commissioner driscoll s point, city would also be included. Commissioners, do you have a question . No, you just answered it. Does that cause a recommendation to make a motion . I will motion it. Second. I think it should be explicit about we shall include the list of restrictions, meaning so people cannot buy it. The way it is written it is a little vague to me. Okay. Redo the motion to include that. How do we include the word exclude . By going with t. D. Ameritrade , you have no option to include the restrictions, so it is inherent. We can certainly clarify it and just say we would open it up to include the restrictions and the Restricted Securities as listed in the presentation, but that is not an option. T. D. Ameritrade does not allow you to cherry pick and say, i want to allow, you know. The platform is already restricted. But we can clarify the motion i want it spelled out here. Sure. I will spell it out in my motion. [laughter] i will move to approve this with the restrictions as stated by t. D. Ameritrade on the subject matter. Thank you. Great. Will the board be voting on the amended policy statement next month . The policy statement will be updated when we actually open up the flat form which we have targeted to the early part of next year as we are developing and he consent process. They mutual funds platform will remain the same and they will be able to access that. As far as opening up the platform to e. T. F. And individual security, that is happening towards the beginning of the following year. The beginning of next year because we need to develop it to indemnify the board and the plan and defer from participant investments. And when that happens, we will update the i. P. S. Which will occur, the board voting or this new and more open selfdirected brokerage account . I believe we would bring it to the board to approve it before we opened it up, but again, the timing will not be for next month because there will be other i. P. S. Changes as a result of our transition so timeline would be october or november at the earliest, but certainly we can shoot to get the Investment Policy Statement in advance of opening up this new feature at the beginning of next year, or expanding it. That is the point i am trying to get at. People will see this and say it is not open until we complete several other administrative steps. We will say it wont be available before the end of the year but we are getting the boards approval to move in that direction. The concerns were raised at the Committee Level of does that expand the liability of the board by allowing, you know, folks to go in and do their own trading, and so this consent form is the language that basically says that if i choose to go through here, i accept all liability for my decisions. I will not blame the retirement board or the deferred Comp Committee or anyone else. So that is the important piece before we with roll this out. Will the board have to vote on that statement . No. But the board does have to vote on the i. P. S. . Yes and it does not open it up until they amend the i. P. S. We will make sure they get in front of the board before we open it up. Good point. We will definitely do that. It will not be september. Thank you. The motion has been amended and made and seconded. Time for Public Comments. Next year, there is probably an 80 chance that we will have a Worldwide Global recession. And in global recession, essentially Investment Capital should gravitate to low and moderate risk investments, not highrisk investments like hedge funds. Let me give you six indicators of a recession, and they are all in place right now. First one, reversal of the yield second reason, overvalued stock markets. Third reason, very low Interest Rates. Fourth reason, international instability. Fifth reason, increase in prices , sixth reason, one of my favourites, as im a big follower of warren buffett, there are 122 billion in cash. Why do they have 122 million in cash . Richard hathaway shall he only likes to have 20 billion in cash, not five times 100 on that i hope you all remember the advice that he gave our pension fund. Index funds will be a better investment than hedge funds. So please keep that advice in mind and take it. Thank you. Questions . We are not allowing alternative funds on this list. They are on the restricted list. Correct . Correct. Some people might see hedge funds as alternatives. There are no private places for that. I just wanted clarification as what we are allowing. Any Public Comment . Those in favor say aye. Aye. Opposed . Next item. Investment Performance Review of the deferred compensation program. Thank you. Commissioners, twice a year we attempt to brief the board of the performance of the investments that make up our core lineup of about 3. 6 billion in total assets. Callum will now walk you through the performance through june 30 th, 2019. We will jump right in. I have included the executive summary on the very first slide, just to recap some of the Key Highlights that i would like for you to take away anti elevator pitch version. The plan is valued at 3. 6 billion on june 30th. So everything in the report is through june. Keep in mind it represents a substantial increase of roughly 382 million since the start of the year. A lot of that came through investments. It has been a great period to be an investor pick investments in dollar terms over 361. There was a net cash inflow of 21 million for the year so far. The target date funds, you will see the performance when you look at the most conservative, out of the most aggressive. The roughly had the same return at about 3 . That is because stocks and bonds really performed very similarly with yields falling and bonds kept pace with the broad equity market. We do have two recommendations that we will be bringing to the Deferred Compensation Committee. The upcoming september meeting. Both are watchlist candidates. The first is galley art, which is a stable value manager, out roughly 1 billion or so in the plan assets. It is your most conservative manager. Earlier this year they did make some organizational changes. Theres four key leadership positions that are going to be retiring and various different trenches over the next three years or so. That wont become effective until next year, so i just did an onsite and their office is in minneapolis, minnesota. On sight a couple weeks ago and i met with the executive Management Team that will be coming online in 2020. Theres really only one new employee to galley yard, and he will be copresident , with that is something we will explore more that you might have seen in the news. The second item is Morgan Stanley. They manage two portfolios. One is a u. S. Read, the other is a global within the target date Component Fund and you will see their performance in a minute. They have underperformed in recent periods. Long story short, they really have a value discipline. They are not buying many of the overpriced or perceivably, from their perspective, overpriced real estate markets, and are really heavily invested now in malls, retail, new York City Office parks that are discounted relative to the market. That has always been their philosophy. In a nutshell they are looking for the market and the economy to evolve and change, and in this very Strong Equity market that we have been in, their style has really been out of favor. See that any minute. Lastly, the passive funds continue to perform and match performance as expected. We will look at the core offerings and a few slides. In terms of broad brush strokes for page two, clearly i think theres a lot going on in the global economy. I think the fed is noteworthy. They were great. That wasnt really expected last year towards the end of the year there was this perceived expectation that, hey, maybe they will stop raising and actually pause or lower. That came to fruition. The market is expecting additional decreases in Interest Rates. And just to keep in mind, the u. S. Rates were really out of normal with the rest of the globe. Most Interest Rates are actually lower in foreign economies. China is certainly remaining a question mark. Many are active, International Equity managers and they are taking stock of what the trade war might mean, what brexit might mean and other global politics. In terms of results, i think slides light for does a nice job in terms of slide four does a nice job in contrasting what has gone on in 2019 with a very difficult 2018. Theres a lot of colours on the chart, and that is really by design. There participants have at their disposal many tools. You will note on the left side of the page of the top youll see annual returns for 2013 going down to 20 going up to 2018, and each column shows a different asset class in the return. The bestperforming asset class in that calendar year is at the top, the worst is at the bottom. For instance, for 2018, u. S. Fixed income, which is essentially zero in emerging markets and an orange down at the bottom. Down 14 . 2019, we show the monthly returns, but we turn your attention to the yeartodate which is the last column. You will see a very different story from 2018. I will bounce back years is what they often call it with large markets. This is just like the Morgan Stanley fund, which we will take a look at. A very robust market. Fixed income, you will note in the second to the bottom, this is the u. S. Fixed income. Up sixpoint one . A very strong return. Again, it was somewhat of a risk period after a really 2018 really mapped how bad the Fourth Quarter was. It was up there september of last year that the markets were going gangbusters as well. I will turn your attention to slide nine. I think this is an important point, and it is something that mr. Coker had mentioned earlier in terms of the cycle that we have been in. It has been somewhat lopsided when we look at value versus growth. I am on page nine. This is the top chart. You can see it is a long period, but and it is a bit challenging to read, but if you stay with me , you will see when growth outperforms, the lines go down. Since Global Financial crisis, which is the red line, and that is kind of the point of the story here, it has been a very long period. It is almost 12 years of growth outperforming value versus years like post tech bubble to the Global Financial crisis, or the 1980s when the value outperforms growth. What we are trying to say here is we are kind of in an extreme period relative to a very long history. It is important to think diversification, value versus growth when we look at your plan lineup and evaluate the Investment ManagersMorgan Stanley. You will see on a very long term basis on slide nine, value over a long period of time actually compounds much better than growth. You will see the green bar is accumulative return of the russell 1,000 value index, and you can see it over this time period since the late nineties. Value has actually outperformed growth even though the last 11 years has really been a growth market. I will skip over slide ten. It really kind of makes the same it is just a different way to look at similar information his with another noteworthy point. Slide 11 captures the market values. Participants really kind of have a very conservative view, many of them with 28 and stable value , and largecap is certainly an equity asset class. Individual market values can be found on the next slide, slide 12. As i already noted, the plans have 3. 6 billion as of june. You will see the change and this is just the change for the one quarter, and so the net new investments just captures the net flows either going in or out of each fund and each asset class. The total plant had a net infill of 15. 2 million. Investment results over the last quarter improved by almost 90 million at the very bottom of the page. The way i would some it up here is investment returns have been fantastic and your plan is cash flow positive, which i guess our to hook two good trends. Moving into returns, page 13, just a note, these are the target date benchmarks. You will see the last quarter, as i mentioned, 3. 1 return. It did not matter if you were older or younger, you roughly had the same return, what you will see that when you go out since the inception period. The more risks you took so the 26551 had the highest return at 8. 8 per year. This is since the Third Quarter of 2012. Again, good absolute results, the relative results relative to the benchmark. We did add that two new funds, the 2060 and 2065 funds. They will show up performance next quarter. They started in april. Looking at the core lineup on slide 14, this is what we call our stoplight sheet and you will see, just in terms of definitions here, the legends down at the bottom righthand side, the green means it is in the top half relative to peers, yellow is in the third quartile, red is in the fourth quartile, and this is a very favourable report. One is the absolute returns have been very strong, next to each return is the actual ranking. For instance, the social equity fund ranks as the top performer in that category. You will note that there is some read in the active equity. So it is three quarters the way down and third from the bottom. This is really a valley oriented discipline valueoriented discipline manager managed by fidelity. A low stock fund. They are finding value overseas right now. It is up to 40 in international securities. That obviously has been a headwind given the u. S. Has been stronger than the international markets, but they use the p. M. As an example. They really have strong conviction that the market is getting pretty crappy. I have to go out the u. S. To find good value. I could go into much more detail i was going to hit the watchlist item on the next slide, but dont let me skip over your favourite slides. [laughter] you will see the real estate fund. This is the Morgan Stanley. It certainly gets called out by the red colour, which is fourth quartile. You will see over the last year it was up 3 , right in the 97 th percentile. The index was up over 11 . Again, a lot of this is just a discipline of looking. What they do is they take every property and value it and compare it to the nad. For instance, by their research, they have shown new York City Office properties are 35 undervalued or discounted relative to the n. A. D. That is attractive. That is an overweight for them. Those two areas have really been out of favor, especially over the last year or so. That is an example of something we are digging into in a lot more detail based on their conviction and philosophy. But really, nothing has changed in the organization. So we will take that up with the Deferred Compensation Committee in much more detail. The next slide just looks at the Component Funds. These are the specialized funds that are components within the target date funds that russell utilizes. You will see again, a very good story. Green across the board. These tend to be much more volatile. They go from red to green very quickly. That is just the nature of many of these markets. They are very narrow and specialized. But third from the bottom, again , that is Morgan Stanley, and you can see it stands out. This is the global fund. Again, it is roughly 53 in the u. S. And has some of the same issues that i already commented on before. Dfa world tends to be more valueoriented price to book sensitive type fund and it makes sense that growth really has been in favor for a very long and pronounced period in recent times. We expect them to underperform in that type of period. The question is, if value comes back in favor, we expect d. F. A. To really bounce back as an example. I will pause there and see if theres any questions, but that concludes my highlevel report. Board questions . I will start with one. Morgan stanley, compared to their peers in that value silo, how are they . This is a broad regroup. Value to value, how did they do . We do not get out value for those following the discounted method they do. A lot of data in this long report. I wish we could make it more readable for the members were trying to understand their quarterly statement versus what is here. Maybe with the committee we can work on an introductory statement about members get unit pricing on their statements, which does not match up with this. By the way, it is the same manager, the performance return numbers are the same, but if you follow the unit pricing, you might get confused. There is a lot of data about the weights and the different target date funds. A lot of information and you are trying to make it more readable and usable for our members because some members will read this report in detail. Other board questions . [please stand by] 2015, and now, its about 28 today, so thats a 5 reduction. Stable Value Holdings are a sign of plan health where higher allocations to stable value indicate less diversefication. As you know, our stable value provider is currently galliard. We will talk a little bit more about the watch list and what the search process would be considering our contract with galliard will be expiring in june 2020. Moving on to page 6, loans continue to be very popular, with about 40 million in outstanding loans. On day one, participants will be able to repay their own via a. C. H. , and they would be able to benefit from a direct deposit of loan proceeds. So if there are no questions on the quarterly report, id like to give you a brief update on the transition . I have some questions, actually more of informational question thats have been posed to questions that have been posed to me by some of the members, and id like to see if we can do some information gathering. Is there or is there not any legislation at the National Level to regarding the mandatory withdrawals at 70. 5 . I believe as part of the secure act, is that what youre referring, to 72 . Thats potentially i believe its hung up in the senate right now. Okay. Its in the senate. Maybe you could track that for us and have answers for the members when they give us a call. Regarding those who are on mandatory withdrawal, currently, there is no avenue for them to remain in the system, correct . So anybody thats retired cannot remain in the deferred comp system, cannot reinvest in the deferred comp system. Thats actually not true. Beiokay. Thats what i want to get to. Thats actually a good point that you brought up because i think thats a common misconception that when you retire, you have to roll your money out of the plan, and thats not the case. Weve actually done a lot of work over the past couple of years by helping people understand thats not the case. The one thing that is restricted for retirees is no new money can come in because theyre income restricted. They cannot put more money in the plan, however, they can continue to manage the plan and change their investments as they see fit. Okay. So the mandatory so those that are being hit with the mandatory withdrawal, i know theres interest theres interest about how to take those mandatory withdrawals and invest them in other other lack of a better word other investments, so i think thats something we may want to talk about. Maybe mr. Collins is in the audience, and maybe we should talk about a couple of the unions that are interested in that, in passing other information. So its something we should be thinking about because i know there is a lot of concern about it, and before we get a lot of questions and the mandatory withdrawal is the age 70. 5 restriction. Its r. M. D. , required mandatory distribution. But its not retirement, and you have to start withdrawing at 70. 5. Yeah, we can look at something about that. Im throwing it out here in Public Session because its a concern. Its on several minds, and first, i want to make sure were getting the best Accurate Information at the moment that we have, and then possibly some food for thought that we can do something that people will feel comfortable with for the future. And i think with the rollout of the professional Management Services thats being offered, that will be a really Great Service for a retiree to talk about drawdown strategies, so that would be a Good Opportunity to talk about r. M. D. And where they can put that. So im hoping with this information, retirees will have some more information and better information on how they can drawdown, and i believe well offer that. And well continue to keep really good record of the legislation. We know the legislation is in the senate and can identify it by its bill number so people can look at the senate and people can pick it out. Its just legislation that may or may not get passed. We certainly can track t it, but yeah, we can track it. How much is going to the senate nowadays, theyre on vacation. Two things. Be careful. When they do these types of amendments, they leave out the 457s. Two, i think what youre driving at, commissioner, when its a major withdrawal, when its a roll, or when its a loan. Theres different tack sheets if its a deferred comp or if its your 457 or roth 457. Its not allornothing. Some people want to roll it to an i. R. A. So they can avoid taxes as well as use the money. So i think its one of the things thats listed for the deferred Comp Committee to work on. As for anticipating what the federal governments going to do, please dont ask us to do that, but well make amendments once they change the law. But the r. I. A. Adjustment, theyve been working on that for four or five years and it has not occurred that. The reason i ask and its really important is because rumors begin to fester. The rumor mill leads people to make bad decisions or decisions, but its on record now. Everything is on schedule, we are still targeting september 3 as the golive date. Until then, every participant, even those with an international address were mailed a copy of the transition guide, which is attached for you in your material. This guide is a great reference document, and sorry. The computers not working. The guide is a great reference document for participants to learn about the file. Participants without internet were also mailed an internet copy, and can be found on sfdcp. Org. Attendance at the meetings were good . People have been happy to share the news on the internet and their news letters . In fact weve been partnered to be featured in the sfers state mailing. I would love to have you take a look at that. The sfers annual mailing is a sixmonth process and goes to around 36,000 employees . It includes a cover letter from executive director huish and personalized pension information. So while the sfdcb insert was requested later in the process, we are very pleased to deliver on this. This may well be the first direct mail to roughly 20,000 eligible about the sfdcb. So we look forward to tracking progress on this and well report out on trends as they surface. That concludes my report. More questions . I have one question. Your statement about the Stable Value Fund had dropped to 28. 2 of the total, correct . Thats right. On one sense, its a verifiable piece of information, but if were trying to make an assessment about how the members are investing their money, okay . No further questions. Is there Public Comment . That concludes item 11. Thank you. The collection item, approval of that is because the incredible amount of work that the governance [inaudible] for him to really continue to educate the new Governance Committee on what to do before i asked him to step on or give up that seat so i can put another Committee Member on. So to clarify, you have yourself as the chair of the Governance Committee, but thats pending winding down so youll be acting chair until we wind no, no, hes just on the committee. Oh, okay. On the committee. Its written. Im just sharing that. Motion has been made and seconded. If theres no further questions, ill call for Public Comment. No Public Comment. All in favor . That was made by casciato and seconded by stansbury. That takes us to item 13. Item 13, travel expense report for the Quarter Ended june 30, 2019. This report is for the end of the fiscal year or budget aend year, and we finished the year with a total breakout. We dont have a yeartodate breakout, but we have budgets we still have about 370,000 that will stay in the trust for an expended fiscal year 2018 and 2019. We can answer any questions related to the travel expense report. Any further questions . This is a discussion item only. Correct. Any questions or comments from the public . That concludes item 13. Item 14, executive directors report. Next item, executive directors report. We have attached the june 2019 dashboard. Again, we continue to welcome any comments or requests for Additional Information to be included on this operations dashboard. Ive also attached a copy of the Cost Effective report. Last meeting, i mentioned that there has been an ordinance introduced that would amend the heart trouble and pneumonia presumption for safety members applying for disability benefits or death and lineofduty benefits. As required by the charter, weve basically asked chiron to assess the impact. What we do is go back and look for impact to potential applications that were listed at heart conditions or pneumonia conditions that were denied. As we report, the cost impact its been transferred from the government audit and oversight committee. Theyve been on recess for the month of august. Representatives from the committee will be there when we consider that as well as considered by the full board. Well be notified by the full board when its passed. Just for consideration, i wanted to present that to you. Update on the commendation letter. Were in the process of writing it. There are issues related to having it put in the employees personnel file, but certainly we want to finalize something the retirement board can sign or initially pass or commend the staff for achievements over the past few years, so well have that hopefully at the september Board Meeting. I want to thank everybody who participated i think i want to thank everybody who participated in the executive director performance evaluation as well as the Actuarial Service coordinator. My report was everyone who is here has returned their survey, so thank you very much for that. Just wanted to inform you that the Governance Party indicated they would do a very abbreviated survey to the Board Members. The draft that i saw had four questions on it, and its really searching for priorities of the Board Members of what they would like to look on. I believe that will be distributed within the next week or so, so i would encourage you to take time and return that important input. Well go to the Governance Committee, and certainly president driscoll and i have discussed the potential of having a retreat before the end of the year, and certainly, any kind of priorities that you would like to see the board address, those could be considered as part of an agenda potentially for a retreat. So again, thank you for your participation and we look forward to your continued participation in this annual surveying process. With that, i dont have anything else. I would update you on the per charge, which is the local 261 grievance or charge before the p. R. B. Board. Karen did represent the board at the governance, and there is a settlement that will be proposed at the next september Board Meeting in a closedsession briefing related to that. Ive not seen the draft of the settlement. I have an understanding of at least kwha the attemwhat the a i just wanted to give you a heads up that that will be calendared at the september session Board Meeting. With that, ill be happy to answer any questions. Any questions . Just emphasize one point basically that executive director huish just asked about. If youre asked to make your calendar date available for a possible retreat, which would be an allday affair, please respond because the possibility of getting it scheduled is very difficult. Unless we respond, and we can plan accordingly, we dont know when we can all get together. Yeah. I think the format you mentioned would be two sessions, like a friday afternoon or a saturday morning. We could break it over a tuesday or a wednesday. Its tough to go eight hours straight, but certainly, thats a possibility. We can do that. Location wise, we want to generally get away from this building, but were restricted to holding it in San Francisco. Weve had them in the past at treasure island, weve had them at the port, we had them at an Italian Restaurant one year down at the waterfront. Were a small group. Weve had them at the art museum. How many generally, its the board, guest speaker, and facilitators, under 20. Generally, well attended by members of the board but not members of the public. One or two people. What do you need for presentations . Pretty basic. Just an overhead projector my idea is my office. Any Public Comment . That concludes item 14. I believe. Oh, i should say good of the order. Is there anything that anyone else wants to say . I myself would like to congratulate the old san franciscan staff for the excellent returns being announced today, and lets do it again. Motion to adjourn is in order. So moved. Public comment . Meeting adjourned. Thank you. My name is alan schumer. I am a fourth generation san franciscan. In december, this building will be 103 years of age. It is an incredibly rich, rich history. [ ] my core responsibility as city hall historian is to keep the history of this building alive. I am also the tour program manager, and i chair the city advisory commission. I have two ways of looking at my life. I want it to be i wanted to be a Fashion Designer for the movies, and the other one, a political figure because i had some force from family members, so it was a constant battle between both. I ended up, for many years, doing the fashion, not for the movies, but for for san franciscan his and then in turn, big changes, and now i am here. The work that i do at city hall makes my life a broader, a richer, more fulfilling than if i was doing something in the Garment Industry. I had the opportunity to develop relationships with my docents. It is almost like an extended family. I have formed incredible relationships with them, and also some of the people that come to take a tour. She was a dressmaker of the first order. I would go visit her, and it was a special treat. I was a tiny little girl. I would go with my wool coat on and my special little dress because at that period in time, girls did not wear pants. The Garment Industry had the at the time that i was in it and i was a retailer, as well as the designer, was not particularly favourable to women. You will see the predominant designers, owners of huge complexes are huge stores were all male. Women were sort of relegated to a lesser position, so that, you reached a point where it was a difficult to survive and survive financially. There was a woman by the name of diana. She was editor of the bazaar, and evoke, and went on and she was a miraculous individual, but she had something that was a very unique. She classified it as a third i. Will lewis brown junior, who was mayor of San Francisco, and was the champion of reopening this building on january 5th of 1999. I believe he has not a third eye , but some kind of antenna attached to his head because he had the ability to go through this building almost on a daily basis during the restoration and corrects everything so that it would appear as it was when it opened in december of 1915. The board of supervisors approved that, i signed it into law. Jeffrey heller, the city and county of San Francisco oh, and and your band of architects a great thing, just a great thing. To impart to the history of this building is remarkable. To see a person who comes in with a gloomy look on their face , and all of a sudden you Start Talking about this building, the gloomy look disappears and a smile registers across their face. With children, and i do mainly all of the childrens tours, that is a totally different feeling because you are imparting knowledge that they have no idea where it came from, how it was developed, and you can Start Talking about how things were before we had computer screens, cell phones, lake in 1915, the mayor of San Francisco used to answer the telephone and he would say, good morning, this is the mayor. At times, my clothes make me feel powerful. Powerful in a different sense. I am not the biggest person in the world, so therefore, i have to have something that would draw your eye to me. Usually i do that through color, or just the simplicity of the look, or sometimes the complication of the look. I have had people say, do those shoes really match that outfit . Retirement to me is a very strange words. I dont really ever want to retire because i would like to be able to impart the knowledge that i have, the knowledge that i have learned and the ongoing honor of working in the peoples palace. You want a longterm career, and you truly want to give something to do whatever you do, so long as you know that you are giving to someone or something youre then yourself. Follow your passion and learn how to enrich the feelings along the way. It is nice we can do this outside. It is so nice out. It is 110 degrees in sacramento. We have this weather ten days a year, maybe, but now with global warming, it is 30 days. We are here to talk about affordability. It has got to be one of the number one issues for you. Housing, homelessness, cost of living, it certainly is for the state of california. Thank you for hosting us, thank you for allowing us this opportunity to dialogue with some people who have beneficiaries of your leadership and the work that has been done at the local level to address the issue of affordability. Not just as it relates to the issues of rent, but also for homeowners, which all of us aspire to be. I am still aspiring. [laughter] can you take advantage of your own Home Loan Program . I wish. [laughter]. By the way, you do. And then after taxes, its like, student loans, rent, and this is crazy. So lets talk about that. You guys feel the same way, i imagine. You are a firefighter, you just came here for a very short period of time, eight years later, youre still here from illinois and chicago. Still here. And you spent 22 years as a deputy sheriff,. I cant believe you retired. Early. [laughter] and you have nothing in common on this topic with them, but you want to have something in common, and you want to be a beneficiary of the program you have all been able to take advantage of. Why dont we talk about that program and mayor, maybe you can set the table on what that loan program is all about. What is so great about the programs that we have in San Francisco is it is not only the first time down payment assistant program, which we know can help people to get a significant amount of money to put as a down payment on a home, and not necessarily have to pay that loan back right away. Theres also the teacher nextdoor program. Sometimes there is just an additional amount of money that you need to put you over the hump because the cost of living here and the cost of purchasing a home is really