Will be an opportunityortunityor general publicl publ comment cos meeting afterg af closed sessiod therell be anll be anll be anlo comment on each discussion or action item policy agenda. Each comment is limited to two minutes. Please note that city policies along with federal, state and local law, prohibit discriminatory or harassing conduct against City Employees and others during Public Meetings and will not be tolerated. Moreover, Public Comment is permitted only on matters within the jurisdiction of this meeting body joining us president s of fine yes. Please call the first item. Thank you. I dont number three is closed session. Three a conference with Legal Counsel pending litigation. Right . And we will. We will need a roll call vote to invoke the Attorney Client privilege and enter into closed session for a conference with counsel. Okay, so, um. At this time, well be moving into closed session with Legal Counsel pending litigation before moving into closed session. We will take a vote to invoke Attorney Client privilege to go into closed session for the pending litigation so emotions [roll call] thank you, we have a quorum. Okay, a motion is in order to vote whether to disclose discussion held in closed session. Is there a motion . Made by commissioner thomas. Second. Seconded by commissioner heldfond. Any memberoffs the public who would like to comment on this item about closed session . Seeing none, Public Comment is closed. A motion has been made by commissioner thomas, seconded by commissioner heldfond. Can we take this motion without objection . Yes. Okay. Madam secretary, please call the next item. The record will be clear if we do all in favor, all opposed . For future votes. Is that necessary . It is adviseable. Okay. Change the script. Before we move to the next item, all those in favor . Aye. The motion passes. Next item. Item 4, general Public Comment. Okay. Any members of the public that wish to make general Public Comment . Please come forward. I have some names here. Ill read them out. You dont have to go in the order. Ty hudson. indiscernible [reading speaker names] please come forward. Please come forward and state your name for the record, if you can. indiscernible please proceed. I have been working at the indiscernible love being in the environment of hospitality. Treating guest with highest quality of service is my super power. Even if the world is stressful outside the door of my treatment room, i can hold space for the guest to help them relax and unwind. However, since covid there have been so many cuts that have really effected my work environment. For example, the position of the spa indiscernible eliminated. We always had a spadesk to help guests with anything they needed. For example, in march 2023, guest have stopped me about twice a week to either ask to check in or new robe or help find a bathroom or spa menu. These are times i was on break or going to pick up a guest or having someone waiting on the massage table. All of these duties were indiscernible the position of the night cleaner was also eliminated. I noticed stains on the floors. The floor downstairs is discolored with different shades of brown. Two of the three cabinets have sections of bear wood where the white paint is worn off and need to be replaced. Half the white sheets have black marks that look like lines and smudges. I have to take time before the appointment to flip the sheets around so the stains are not visible to the guests. I want to be honest and transparent about what is going on at the spa. All of these issues take time away from me doing my job. I wish instead of spending money on union indiscernible the hotel would use the funds to fix working conditions of the spa, operations and focus on the renovations that we have needed for many years. Thank you. Thank you. Next speaker. Just before you speak, we usually give a little extra time for translation for the record. Please go ahead. [speaking spanish. Waiting for translation] my name is indiscernible i work at a House Keeping at the indiscernible 14 years. I love my job, i like to clean, but when i started this job i thought that working conditionsed would get better, instead their got worse. [waiting for translation] around 2018 we asked for a raise, because they always gave annual raises of 20 or 25 cents. They gave a dollar more per hour but they increased the work load. Assigned to strip the beds and take out the trash. They also had clean extra room a day. Before we clean 12 rooms, now we had to clean 13 rooms a day. It was so hard and so painful. [waiting for translation] now we are organizing union they reduced the number of rooms we clean but we need the union to have a good future. I want the hotel to recognize how difficult our job is and treat us with the respect we deserve. Thank you. Hello everybody. My name is tony indiscernible for 10 years as a server and bartender. I love meeting guest all over the world. Those connections are what matter to me. I once met a guest who worked with washing machines and came back the next year and i said how is the washing machine business. She was blown away i remembered him. After covid servers and bartenders were doing a lot more. I worked around 6 events with one bartender with 75 or 80 guests. Since the fall of 2020 not seen it go much higher then one bartender for 54 guests. When i serve 75 or 80 guests alone it is a big rush. indiscernible you only have time to ask for the guests order. It is not possible to give that personal touch when you are powering through a line. I work with the Purchase Department to order supplies for each event. They have gone from 5 employees down to 2. Eliminating the Beverage Court position. Once or twice per week i had to go to the store room myself and transport huge banquet carts with wine and beer. Onenight august 2021 while lifting 25 cases of drinks, i hurt my back. It was so painful it took my breath away. The doctor determined it was a acute muscle pull with small tear. 5 months i couldnt lift or stand prolonged periods of time and the injury still bothers me today. I take pride in my job and want to give guests my best but i need time to do that. I shouldnt have to rush and risk my body or work in pain. Thank you. Good afternoon president safai and members of the board. Im ty hudson unit here local 2, thank you for the opportunity to speak this afternoon about what workers are experiencing at the Fairmont Hotel owned by brookfield Strategic Real Estate partner 4. What you heard now is just a taste of it. Workers in multiple departments reported staffing reductions which lead to guests having to wait longer for services, difficulty maintaining cleanliness stan ards work compleelted by people not trained for the jobs and the personal impacts you heard about. House keeper jz dish washers in sonoma make over 7 a hour less then people doing the same work at the two Fairmont Hotels in San Francisco. When workers come together to make the workplace better they are met with intearidationigation, surveillance and threats. All this is injustice for the workers of course but also an investor issue. Hospitality is fundamentally provided by people. Sharply wuting labor cost may lead to short term margin growth, it may lead to guest dissatisfaction. We are not coming to you because indiscernible responsible for the situation in sonoma. You are not invested in brookfield Strategic Real Estate partner fund 4 and i understand you are no longer invested in fund one but brookfield is a asset manager for real estate portfolio in the recent past so think it is important for you to know what they are doing less then 50 miles away. It has been reported brookfield started raising money for the 5 Real Estate Fund and making future Investment Decisions we hope you will give serious consideration from risk from poor Human Capital management practice at the fairmont in sonoma. Thank you. Thank you. The last name i have is alyssa indiscernible is that right . Yes, thank you. Good afternoon board. Thank you for the opportunity to speak. My name is alyssa. I am with the private equity stakeholder praijt. Im here to speak on a different issue but i want to thank the Hotel Workers for being courageous enough to speak today. I am here to speak on a different issue related to the private equity portfolio. We are Non Profit Organization that works as a watch dog on a private Equity Industry and in support of african communities together. They have been organizing with tenants around serious issues in the southern towers apartment complex in alexandria virginia. The 5 building apartment complex is a long time home to thousands of hard working blue collar families. However, once the cim group you invest acquired the building things began to change. Tenants reported mass eviction filings, unaddressed repair anderant increase. Filed complaint with the federal Housing Finance agency indiscernible run contrary to purpose of providing and preserving affordable workforce housing. Cim eviction practice violate indiscernible provide tenants 30 days notice to vacate. They have given tenants 5 days notice. Conduct a full investigation into cim practices and if the agency finds cim violated federal law, act asked payable and refuse to fund cim projects. We know you have significant investments, hundreds of millions of dollars with cim and ask you to conduct a investigation and speak directly with impacted communities as well as halting future investment with cim until they address the issues and please ask cim to stop these practices of evictions and taking advantage of vulnerable communities. Thank you. Thank you. Any other members of the public wish to comment for general Public Comment . Seeing none, Public Comment is closed. Madam secretary, please call the next item. Item 5, action item approval of minutes of march 16, 2023 retirement Board Meeting. Move to approve. Second. Moved by commissioner heldfond and seconded by commissioner thomas. Are there any members of the public that wish to comment on this item . Seeing none, Public Comment on this item is closed. Motion is made by commissioner heldfond, seconded by commissioner thomas. All those in favor of this motion . Aye. Any opposed . Alright. Passes. Please call the next item. Item 6, action item. Consent calendar. Move to approve. Moved by commissioner heldfond and seconded by indiscernible Public Comment is closed. Motion is made by commissioner heldfond, seconded by commissioner bridges. All those in favor . Aye. All opposed . Madam secretary the item passes. Please call the next item. Item 7, discussion. Part 1 of sfers 2023 asset and liability study. I will briefly set the stage for this conversation and then turn it over to anna and nepc. By policy we are to conduct asset liability study every 3 years. We are taking the opportunity this go round to enhance our approach to this process, so this means well be looking at establishing a process to include liquidity and needs into the study to think about our approach to Capital Market assumptions and to think about our approach to risk and expectations around risk and appetite for risk. So, the conversation today is truly step one in a longer term asis etliability study process. The goal is to introduce today the concept of liquidity and what we will show is that we have an opportunity given where the markets are at to increase liquidity over time without having a Significant Impact on the risk return profile, and no decisions are made today. This is discussion item. With that, ill turn it over to anna. indiscernible Asset Allocation and Risk Management team and sfers, kevin. Kevin joins us as a Investment Officer from Duke University endowment. We are delighted to have him here and produce analysis for this item. As allison mentioned, this is a very important part of a some say a key consideration for the board to set the investment longterm strategic investment objective for the fund. We review annually the changes in Capital Market assumptions with our consultant, general Investment Consultant and every 3 year conduct a large study, and this study as allison mentioned is multistep because it involves different types of analysis. To make sure we look at the strategic Asset Allocation and liabilities and longterm objective. Here for example, in previous asset liability studies, the board over multiple sessions reviewed new asset indiscernible absolute return and introduced into Asset Allocation mix. In 2022, the board conducted with staff and general Investment Consultant, conducted lost asset and liability study. At that time we introduced plan level leverage. Board education over multiple discussion and considered an overlay for the portfolio of global tactical Asset Allocation strategy. Today, we present you part 2 of the 2023 asset and liability study that introduces liquidity analysis into the asset and liability study. I would say thats an invasion i havent seen the full integration of liquidity measures into a asset and liability study that incorporate the same assumptions Capital Market assumptions and the same pension model and liability structure into the liquidity. I would say that it is very important step towards improving the quality of Decision Making around selecting Asset Allocations. You will see that apc will present three core summaries for each Asset Allocation along liquidity dimensions ill cover, in addition to the risk and return as well as liabilities funded status and different dimensions. So, thats the invasion that we incorporate today. We also as allison mentioned project these are longterm settings and we are working with our private market Consultant Team to make sure that we have a glide path to implement those changes in liquidity we are discussing, and we will present in march the updates to the pacing models that go with there liquidity framework. So, we would like to start on page 4 of staff presentation. That explains really why. Why do we need to think about liquidity and incorporate it into sfers asset and liability study. This is from our liquidity Risk Management framework. It is also considered by the board 3 years ago during the asset and liability study, and what it highlights staff actually worked with black Rock Investment institute here to define Liquidity Risk, and we define Liquidity Risk as the likelihood of failing to need a fund capital call or another cash obligation. Thats a serious consequence and therefore we are trying to assess across multiple simulations across multiple scenarios, is there a path that will leave us in such Liquidity Risk. On this page, what we have done, we have two major parameters that drive total Fund Liquidity health. On the x axis, we have whats called annual spending, or the net outflows of cash as percent of total fund, and on the y axis, you have the maximum allocation to private assets, private equity, private credit and real assets combined and see the impact of that. We run multiple simulations and here more then 2,000 simulations and eachif there is any one of the simulations result in Liquidity Risk and find we ran out of cash, if there is none then youre in green zone. If there is at least one but less then 5 percent, you are in light blue zone, we call caution zone, and if it is more then 5 percent probability that we will run out of cash, that it is in danger zone. By our liquidity management framework we outlined and reviewed with board annually, we indiscernible staying in the green zone. What does it mean . You will see that present the sfers liability increase foster and even 7. 6 expected return for assets, so we are becoming a maturing plan. Liability increase faster then assets and that percent of total fund net outflow is currently 2 percent and expected to go to 3. 5 percent in 10 years and close to 4 percent in 20 years. So, thats what we are solving for and thats the why, because we need to make those adjustments and strategic Asset Allocations today, because as we will see in may, this have implications for a 10 year implementation plan. For example, in 2020, sfers board approved retirement system change its strategic Asset Allocation to real assets from 17 to 10. We are now between 15 and 16 percent and have a long way it go there. Similar to this, we will be talking about a similar glide path for reducing total allocation to private and increasing liquidity. I like to quickly go to page 3. What does increase liquidity mean . Staff worked very closely with napc to introduce liquidity measures, different liquidity measures into the asset liability study. We introduced two measures. One is the probability of breaching out indiscernible if