Meeting, if it was discussing Due Diligence on a particular Investment Opportunity . I think that would not be a personal item. That would be a question of investment policy or some other open session discussion of standards and rules. Thank you. I would say thats tricky. If its about the process and information, which is some of your bullet points, the question is the information legitimate or not good. Let alone the conduct of the individual. If you get into the conduct of the individual, you get into personnel. It gets dicey. It has to be talked about one way or the other. If not, if it leads to a bad decision, we have not behaved prudently. Does it have to be a bad decision . Its process. I dont think that alleviates the Due Diligence issue. The Due Diligence issue is a prod issue. What i understood was that you disagreed with the standard that was being applied. Thats one thing. If you agree with our personnel, that falls under the administration and the executive director handles it from a personal perspective, but if its something the organization does, its up to the board whether or not they want to change that. Good and bad decisions are a result of the process. Thats why you have to protect the process and force the process and keep the processes as open as possible. If at least a problem, you have to go talk about it. How, where, and when theres rules for that too. And thats prudent process. It helps you to stay on course and helps you to make sure what were doing every single time meets the expert standard. Are we at a natural place to break . I think theres more here to talk about. Its been helpful. Would you like me to come back and finish up at some other time . Yes, of course. Youre not done. You need to come back and couple of more times. But is this a natural place to break . Why dont we call for Public Comment on this item . Are there any members of the public that would like to address this . Ive belonged for this pension for 43 years. I probably have a few hundred thousand dollars into it. I want to go on record to let you know that i dont feel you are being prudent. Theres also a lack of fiduciary responsibility of investment in hedge funds. Hedge funds, as you know, are a highrisk investment. I dont know how many of you Board Members are parents. If your Senior Citizen parents, would you invest any of their money. You would all be charged with lack of fiduciary responsibility, investing your clients in hedge funds. So one of the best Pension Funds in the country, i object investing any of my money in hedge funds. I think its lack of prudence and lack of fiduciary responsibility. Very large hedge funds, state of new jersey, new york city, and also people like charles schaub, they would all say investing in hedge funds is a bad investment. Nobody likes admitting to a bad investment. Youre going to be stuck in hedge funds for the next ten or fifteen years. Nobody likes it. I cant imagine mr. Kocher ever saying to you, Board Members, i made a mistake. You should have invested in hedge funds. I dont think you will hear those words. Thank you. Good afternoon. Happy new year, commissioners and staff. Claire savansky phonetic appearing for the residents of the city and county. We all believe very strongly in education. I think this is one of the most important items that you have had on your calendar. I want to thank you for having it during these meetings and not during a retreat where we cant hear the discussions or its harder for more people to get to. I think that mr. Brian is giving us a very important lesson. Its good for all of us to hear this. We understand some, more than others, what fiduciary responsibility is. I think there are issues when members feel that perhaps someone is more fiduciary than others, and we need to hear some of those discussions, but i would urge you to not cut these sessions short. I would urge you to continue on with these educational sessions so that we can all understand and hear what fiduciary really is. I noticed in here that attorneys were specifically singled out with regard to not being fiduciaries. In advance of your item with the tuscan Charter Amendment, its curious that supervisor peskin is looking to replace a member of the board with an attorney. It took us years, but at the Health Services board, we eliminated that seat because it was a conflict of interest and two bites of the apple. Well continue with that, but please continue on with the session. Would you like to comment on the fiduciary duty . I think so. I just want to mention something ive brought up in the past a couple of times. Your sole fiduciary responsibility is to the public, employees, retirees of sfers. Youre going to have a special meeting on the 24th fossil fuel stuff. I hope you consider that. I have never taken on your personal investing. Its too dangerous. But if you take the statement along with the risk manager, your sole fiduciary responsibility is to the employees and retirees of the city of San Francisco. I dont know if i want to keep on beating this hedge fund thing. When bill first proposed that allocation in 2014, he was trying to do all the Public Employees and retirees a big favor by derisking the portfolio. Thats what it is. Hedge funds are less risky, not more risky. Its one of the very first things i said here. Theres no sense in me continuing to beat on that. The next step because you took the big step in september. I was the first one to say go to 15 . Much to my shock and surprise, it somehow got accepted. 30 seconds. Which i never expected, to be honest with you. That was thanks to brians leadership of that meeting, in my opinion, nothing that i had to do with it. But in any event, i really think that theres far too much complacency. You dont see the risks coming because most of the risks are in china, japan, and europe. You just dont see them. Unlike the tech bubble and the real estate risks, which was in the United States. Are there any other members of the public that would like to address the commission . Seeing none, well close Public Comment. Mr. Bryant, thank you. Next item, item 13. Action item. Pension adjustment with donald kosewic. Im happy to take that as submitted. I will make a motion. Is there a second . I guess we dont. Its a routine adjustment based on a workers comp board decision from a 50 to a 65 permanent disability. [off mic] we have a motion and a couple of seconds. [laughter] we open this to the members excuse me. Why dont we open it to Public Comment. Seeing none, is there any discussion on this item . We take this without objection . Great. Item 13 passes. Tie them 14, the executive directors report. Ive provided you two pieces of information. Theres two things i would like to aunderstand no announce. Were going to have a special Board Meeting here in this board room at 1 00 p. M. It will be a closed session to consider a very specific investment. I just wanted to let the public know as well as remind the board that we would appreciate you making the effort to be here. We anticipate it will be a short meeting. The second announcement is we are now prepared to issue you ipads, and we would encourage you to come and make an appointment through darlene to receive your ipad and your training. This will allow you to download board materials electronically. I will send out an email reminder, but we are now prepared and have the ipads ready to actually assign to each of you. So with that, i would be happy to answer any questions. Its nice to put all these educational sessions, but this packet is getting to be 50 and 60 pages long. We have a rule in my department about not wasting paper. Is there some way of or must it be put in because its board request requested. We can only provide it to you as they reissue. This one is for a threemonth period, i believe january through march. So this will be the last time you need to see the long report until april. [off mic] exactly. Its Available Online if you need to search it. Once you have an ipad, you will be able to keep it there and do your own research. Okay. Thank you. Public comment . Good afternoon again. Is it possible to have any more information with regard to the peskin Charter Amendment . What do we know about this amendment and what is the likelihood of it Going Forward . Any deadlines or something we need to know about . Its been referred to the department for an analysis of the impact, and we just received that, so well be turning that around within the next week. I believe its under a 30day hold, which means 30 days from when it was submitted before it can be heard. Its been referred to the rules committee. So automatically it will be heard in the rules committee soon after the 30 days, and from the rules committee, it can be referred to the full board. As to answering your other questions, i have not had a direct discussion with supervisor peskin but not in relation to this. Okay. Any other members of the public present that would like to address the commission . Seeing none, well close Public Comment. Questions, comments, discussions on this item . Seeing none, mr. Secretary, next item. Item 15, discussion item, retirement board member good of the order. Thank you, mr. President. I would like to, for the good of the order, request a couple of things on the calendar. Not only because going through the process in the public equity markets, i would like to see an evaluation for us to look at, a process for hiring managers as well as firing managers. I know about 18 months ago, we had discussion about the rfp process and approval process, but i would like us to review it in light of what were going through now. I think theres some disconnect in that process. You just want a discussion of how we hire and fire managers . From the public. Okay. Anything else . Thats it. Okay. Anything else from anyone else on the board . Relates to that whole issue i brought up at the retreat about when the governance issues are sort of settled down and improving governance continues, the decisionmaking process, how we fire, hire, retain one manager, it goes to issue of consultants and issues where were trying to develop new relations for the prudence of investing this fund for the contribution rates and making sure all issues are maintained. Its called decision making. How to improve our decisionmaking process, if we think we need to improve. Thats why i say call for the review. Thank you. Thank you. Call for Public Comment. Are there any members of the public that would like to address this item . Seeing none, were close Public Comment. Next item, please. Item 16, discussion item, retirement board member reports and comments. No reports were submitted. Would anyone like to okay. Why dont we call for Public Comment. Are there any members of the public that would like to address this item. Seeing none, well close Public Comment. Is there a motion to adjourn . Ill make a motion to adjourn. Thank you, motion adjourned. Thank you very much. Bayview. A lot discussion how residents in San Francisco are displaced how businesses are displaced and theres not as much discussion how many nonprofits are displaced i think a general concern in the Arts Community is the testimony loss of performance spaces and venues no renderings for establishes when our lease is up you have to deal with what the market bears in terms of of rent. Nonprofits cant afford to operate here. My name is bill henry the executive director of aids passage l lp provides services for people with hispanics and aids and 9 advertising that fight for the clients in Housing Insurance and migration in the last two years we negotiated a lease that saw 0 rent more than doubled. My name is ross the executive directors of current pulls for the last 10 years at 9 and mission we were known for the projection of sfwrath with taking art and moving both a experiment art our lease expired our rent went from 5 thousand dollars to 10,000 a most. And chad of the arts project pursue. The evolution of the orientation the focus on Art Education between children and Patrol Officer artist we offer a full range of rhythms and dance and theatre music theatre about in the last few years it is more and more difficult to find space for the program that we run. Im the nonprofit manager for the Mayors Office of Economic Workforce Development one of the reasons why the mayor has invested in nonprofit displacement is because of the challenge and because nonprofits often commute Technical Assistance to understand the negotiate for a commercial lease. Snooechlz is rob the executive director and cofounder of at the crossroads we want to reach the disconnected young people not streets of San Francisco for young adults are kicked out of the services our building was sold no 2015 they let us know theyll not renew our lease the last years the city with the nonprofit displacement Litigation Program held over 75 nonprofits financial sanction and Technical Assistance. Fortunate the city hesitate set aside funds for businesses facing increased rent we believable to get some relief in the form of a grant that helped us to cover the increase in rent our rent had been around 40,000 a year now 87,000 taylors dollars a year we got a grant that covered 22 thousands of that but and came to the minnesota Street Project in two people that development in the better streets plan project they saved us space for a Nonprofit OrganizationNational Anthem and turned out the Northern California fund they accepted us into the Real Estate Program to see if we could withstand the stress and after the program was in full swinging skinning they brought up the Litigation Fund and the grants were made we applied for that we received a one thousand dollars granted and that grant allowed us to move in to the space to finish the space as we needed it to furniture is for classes the building opened on schedule on march 18, 2016 and by july we were teaching classed here. Which we found out we were going to have to leave it was overwhelm didnt know anything about commercial real estate we suggested to a bunch of people to look at the nonprofits Displacement Mitigation Program you have access to commercial real estate either city owned or city leased and a city lease space become available there is a 946,000 grant that is provided through the Mayors Office of Economic Workforce Development and thats going to go towards boulder the space covers a little bit less than half the cost it is critical. The purpose of the Organization Trust to stabilize the arts in San Francisco working with local agency i go like the Northern California platoon fund that helped to establish documents of our long track record of stvent and working to find the right partner with the organization of our size and budget the opportunity with the purchase of property were sitting in the former disposal house theatre that expired 5 to 10 years ago we get to operate under the old lease and not receive a rent increase for the next 5 to 7 years well renting 10,000 square feet for the next 5 to seven years we pay off the balance of the purpose of this and the cost of the renovation. The loophole will that is unfortunate fortunate we have buy out a reserve our organization not reduce the services found a way to send some of the reserves to be able to continue the serves we know our clients need them we were able to get relief when was needed the most as we were fortunate to arrive that he location at the time, we did in that regard the city has been weve had tremendous support from the Mayors Office of Economic Workforce Development and apg and helped to roommate the facade of the building and complete the renovation inside of the building without the sport support. Our lease is for 5 years with a 5 year onyx by the city has an 86 year lease that made that clear as long as were doing the work weve been we should be able to stay there for decades and decades. The single most important thing we know that is that meaningful. It has been here 5 months and even better than that we could image. With the Economic Development have announced an initiative if ours is a nonprofit or know of a nonprofit looking for more resources they can go to the office of Economic Workforce Development oewd. Com slashing nonprofit and found out about the mayors nonprofit Mitigation Program and the Sustainability Initiative and find their information through Technical Assistance as much as how to get started with more fundraising or the real estate assistance and they can find my contact and reach out to me through the circles of the city through thit. Shop dine in the 49 promotes local businesses and challenges