Mar 04, 2025 Board of Directors Meeting

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WHEN YOU MEET HER. OKAY. WELL, GOOD MORNING AND WELCOME TO THIS SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE EAST BAY REGIONAL PARK DISTRICT ON MARCH 4TH,

[ROLL CALL]

GOOD MORNING. WE HAVE A DIRECTOR APPEARING ON ZOOM.

DIRECTOR ECHOLS, CAN YOU PLEASE CAN YOU PLEASE CAN YOU PLEASE CONFIRM THAT NO OTHER INDIVIDUALS 18 YEARS OR OLDER WILL BE PRESENT IN THE ROOM WITH YOU AT YOUR REMOTE LOCATION? YES, I CONFIRM THAT. OKAY. THANK YOU. AND JUST A REMINDER THAT YOU SHOULD PLEASE LEAVE YOUR VIDEO ON WHILE THE BOARD IS IN SESSION.

THANK YOU. I WILL NOW TAKE THE ROLL. DIRECTOR COFFEY.

HERE. DIRECTOR ECHOLS. PRESENT. DIRECTOR SANWONG.

HERE. DIRECTOR DESCHAMBAULT. HERE. DIRECTOR ESPAÑA.

HERE. DIRECTOR WAESPI. HERE. PRESIDENT MERCURIO.

HERE. GENERAL MANAGER LANDRETH. HERE. AND GENERAL MANAGER BOURGAULT.

HERE. ALL RIGHT. THANK YOU. SO OUR NEXT ITEM IS THE ACTUAL BUSINESS BEFORE THE BOARD TODAY WHICH IS FIDUCIARY TRAINING FOR GOVERNMENTAL DEFINED CONTRIBUTION PLAN ADMINISTRATORS.

AND I JUST WANTED AND I JUST WANTED TO SAY THERE ARE NO PUBLIC COMMENTS.

OKAY. SHOULD THERE BE PUBLIC COMMENTS? MEMBERS OF THE PUBLIC WISHING TO MAKE A PUBLIC COMMENT CAN DO SO.

IF ATTENDING BY ZOOM, THEY MAY RAISE THEIR HAND THEIR NAME WILL BE CALLED WHEN IT IS THEIR TURN TO SPEAK, OR IF ATTENDING IN PERSON, THEY MAY SUBMIT A SPEAKER'S CARD TO THE CLERK'S STAFF OR OTHERWISE INDICATE THEY WISH TO MAKE A PUBLIC COMMENT ON THE NON-AGENDA ITEM.

ALL WRITTEN COMMENTS RECEIVED PRIOR TO THE DEADLINE OF 3 P.M.

ON MONDAY, MARCH THE 3RD, HAVE BEEN DISTRIBUTED TO THE BOARD OF DIRECTORS AND WILL BE POSTED ONLINE AND THERE ARE NO PUBLIC COMMENTS.

OKAY. THANK YOU. SO NOW WE COME TO OUR PRESENTATION TODAY.

[BUSINESS BEFORE THE BOARD]

THANKS FOR HAVING ME HERE TODAY. MY NAME IS ED BERNARD, AND FOR THOSE OF YOU WHO DON'T KNOW ME YET, I'M THE OUTSIDE BENEFITS COUNSEL FOR THE DISTRICT.

AND I'M WITH HANSON BRIDGETT. AND I'M HERE TO TALK TO YOU ABOUT A SCINTILLATING TOPIC, WHAT A GOVERNMENTAL DEFINED CONTRIBUTION PLAN FIDUCIARY IS AND WHAT IT MEANS TO BE ONE.

SO HERE'S OUR AGENDA FOR TODAY. WITHOUT FURTHER ADO, LET'S GET STARTED.

ALL RIGHT. SO I'M GOING TO START OFF WITH A BROAD OVERVIEW.

IN THIS OVERVIEW, I'M GOING TO TALK ABOUT THE KEY QUESTIONS YOU SHOULD ASK WHEN SOMEONE SAYS YOU'RE A FIDUCIARY.

AND I'VE DIVIDED THESE QUESTIONS UP INTO FOUR BROAD CATEGORIES.

FIRST WHO'S THE FIDUCIARY. DOES THIS EVEN APPLY TO ME? SECOND, WHERE CAN I FIND THE FIDUCIARY STANDARDS.

THIRD, WHAT ARE THE FIDUCIARY STANDARDS. AND FOURTH, WHEN DO THE FIDUCIARY STANDARDS APPLY? AND LAST BUT NOT LEAST, WHY SHOULD I CARE. WHICH IS VERY IMPORTANT.

SO WHO IS A FIDUCIARY. TO START OUT WITH ARTICLE 16, SECTION 17 OF THE CALIFORNIA CONSTITUTION DEFINES THE RELATIONSHIP OF A RETIREMENT BOARD TO THE RETIREMENT SYSTEM MEMBERS AND SUBDIVISION H OF THAT SECTION DEFINES RETIREMENT BOARD VERY BROADLY, INCLUDES BOARD OF ADMINISTRATION TRUSTEES, DIRECTORS, OR OTHER GOVERNING BODY OF A PUBLIC EMPLOYEES PENSION OR RETIREMENT SYSTEM.

PLAN DOCUMENTS ALSO DEFINE WHO'S A FIDUCIARY.

FOR EXAMPLE, THE 457 PLAN DEFINES THE PLAN ADMINISTRATOR AS THE EMPLOYER, IN THIS CASE THE DISTRICT RESPONSIBLE FOR PLAN ADMINISTRATION, UNLESS THE EMPLOYER DELEGATES THAT RESPONSIBILITY TO SOMEONE ELSE.

AND THE INVESTMENT POLICY STATEMENT ALSO NAMES THE BOARD AS THE FIDUCIARY RESPONSIBLE FOR ADMINISTERING THE 457 PLAN AND THE 401 A PLAN, AND INVESTING THEIR ASSETS.

IT'S ALSO IMPORTANT TO NOTE THAT THE CONSTITUTION DESCRIBES THE DUTIES OF THOSE WHO GOVERN A RETIREMENT SYSTEM,

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SO WHO IS THE FIDUCIARY? AND LET'S SEE IF YOU'RE REALLY A FIDUCIARY.

AND ONE OF THE FIRST ERISA PROVISIONS DEFINED FIDUCIARY BASED ON THE GENERAL COMMON LAW DEFINITIONS.

FIRST, ANYONE WHO EXERCISES ANY DISCRETIONARY AUTHORITY OR CONTROL OVER THE MANAGEMENT OF THE PLAN.

SECOND, AND YOU'LL NOTICE THAT YOU DON'T EVEN NEED DISCRETION FOR THIS IF YOU EXERCISE ANY AUTHORITY OR CONTROL OVER PLAN ASSETS.

THIRD, ANYONE WHO EXERCISES ANY DISCRETIONARY, AUTHORITY, CONTROL OR RESPONSIBILITY IN ADMINISTERING THE PLAN.

AND FINALLY, YOU'RE A FIDUCIARY IF YOU GIVE INVESTMENT ADVICE AND RECEIVE A FEE FOR THAT.

SO AGAIN, IT'S IMPORTANT TO REEMPHASIZE THAT THIS TEST IS AGAIN BASED ON WHAT YOU ACTUALLY DO.

SO DO YOU ACTUALLY PERFORM ANY OF THESE FUNCTIONS RATHER THAN WHAT YOUR TITLE IS OR WHAT THE CONTRACTS OR OTHER DOCUMENTS SAY.

AND I SHOULD ALSO TALK ABOUT WHY WE'RE TALKING ABOUT ERISA AT ALL, SINCE IT DOESN'T APPLY TO PUBLIC SECTOR PLANS.

AND THE REASON IS THAT ERISA AND STATE LAW FIDUCIARY RULES ARE SUBSTANTIALLY SIMILAR.

AND SO THE COURTS SOMETIMES LOOK TO ERISA. SO IT'S A BEST PRACTICE IN SOME AREAS.

SO NEXT WE'LL TALK ABOUT WHAT ARE SOME ACTIVITIES THAT MIGHT MAKE YOU A FIDUCIARY? MOST INVOLVE DISCRETION. SO FOR EXAMPLE, IF YOU APPOINT OTHER PLANNED FIDUCIARIES, SELECT OR MONITOR PLAN INVESTMENTS OR SERVICE PROVIDERS, DECIDE AMBIGUOUS TERMS AND HOW TO APPLY THEM.

AND IF YOU DECIDE BENEFIT CLAIMS AND APPEALS.

SOME PLANS PERMIT FIDUCIARIES AND MOST DO TO DELEGATE DUTIES TO THIRD PARTIES, FOR EXAMPLE, THE IPS. THE INVESTMENT POLICY STATEMENT PERMITS THE BOARD TO APPOINT INVESTMENT ADVISORS OR MANAGERS TO ASSIST IT WITH PERFORMING ITS INVESTMENTS OR MAKING ITS INVESTMENT DECISIONS.

SO THE IMPORTANT THING TO REMEMBER IS THAT DELEGATION IS ITSELF A FIDUCIARY ACT.

SO BASED ON THE IPS, IT LOOKS LIKE YOU'RE A FIDUCIARY FOR SOME PURPOSES, SUCH AS INVESTMENTS AT LEAST, BUT MAYBE NOT IN DECIDING CLAIMS AND APPEALS.

OR YOU HAVEN'T BEEN ASKED TO INTERPRET PLAN PROVISIONS.

SO WHO'S DOING THOSE THINGS? AND THAT'S REALLY IMPORTANT.

YOU WANT TO KNOW WHY? BECAUSE UNDER THE COMMON LAW OF TRUSTS AND ERISA, A FIDUCIARY HAS A DUTY OF REASONABLE CARE TO PREVENT A CO FIDUCIARY FROM BREACHING HIS OR HER FIDUCIARY DUTY, BREACHES HIS OR HER FIDUCIARY DUTY BY PERMITTING A CO FIDUCIARY BREACH, AND HAS A DUTY TO TAKE REASONABLE STEPS TO GET THE CO FIDUCIARY TO CURE THE BREACH.

SO WHERE DO YOU LOOK TO FIND THE FIDUCIARY STANDARDS? WELL, WE'VE ALREADY TALKED ABOUT ARTICLE 16 SECTION 17 OF THE CONSTITUTION, SO THAT'S A GOOD PLACE TO START.

IN ADDITION, THE GOVERNMENT CODE PROVIDES THAT A LOCAL AGENCY DEFERRED COMPENSATION PLANS ARE IN FACT PUBLIC RETIREMENT SYSTEMS FOR THOSE PURPOSES. AND IT'S ALSO WORTH NOTING THAT THE GOVERNMENT CODE PROVIDES THAT LOCAL AGENCY PENSION PLAN OR PLANS ARE PUBLIC PENSION SYSTEMS FOR THEIR PURPOSE AS WELL. AND ALTHOUGH NEW HIRES PARTICIPATE IN CALPERS AND THAT'S BEEN TRUE, I THINK SINCE LIKE 2012 THE DISTRICT STILL MAINTAINS TWO LEGACY PENSION PLANS THE GENERAL EMPLOYEES PLAN AND THE SWORN SAFETY EMPLOYEES RETIREMENT PLANS. AND BOTH PROVIDE THAT THE EMPLOYER IS THE PLAN ADMINISTRATOR WITH THE AUTHORITY TO ADMINISTER THE PLAN UNLESS IT APPOINTS SOMEONE ELSE TO SERVE AS ADMINISTRATOR.

AND THE IMPORTANT THING TO REMEMBER IN ALL OF THIS IS THAT IF YOU'RE GOVERNING A PLAN THAT PROVIDES RETIREMENT BENEFITS TO PUBLIC EMPLOYEES, THESE RULES APPLY TO YOU.

SO AGAIN, WE'RE NOW WE'RE ON TO WHAT ARE THE FIDUCIARY STANDARDS.

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THIS MEANS THAT A BODY HAS THREE SPECIFIC DUTIES, THREE SPECIFIC RESPONSIBILITIES, AND THREE SPECIFIC DUTIES.

AND JUST TO DEFINE THAT TERM, IT'S NOT A FREQUENTLY USED TERM, BUT PLENARY MEANS LEGAL AUTHORITY, BUT STILL SUBJECT TO REVIEW BY THE COURTS. SO THE WHAT YOU'RE SUPPOSED TO DO IS, NUMBER ONE, TAKE CARE OF PLAN ASSETS.

DO YOU MIND IF WE DO QUESTIONS AS WE GO ALONG? SURE. I THINK IT MIGHT BE HELPFUL TO US. YEAH, YEAH. YEAH. PLEASE. DIRECTOR SANWONG.

GO AHEAD. THAT'S GREAT. YEAH. JUST THE PREVIOUS SLIDE WHERE YOU TALKED ABOUT THE JUDICIAL REVIEW AND THE COURTS.

WHAT'S AN EXAMPLE OF THAT? HOW MIGHT THAT HAPPEN? WELL SO THAT MIGHT HAPPEN. SO SAY, FOR EXAMPLE, RETIREMENT SYSTEM BOARD YOU KNOW, MAKES A DECISION ABOUT INVESTMENTS AND MEMBERS OF THE RETIREMENT SYSTEM, YOU KNOW, CHALLENGE THAT IN COURT. THEN THE COURT COULD REVIEW THE, THE BOARD, THE FIDUCIARY'S DECISIONS, BASICALLY FOR, YOU KNOW, COMPLIANCE WITH THE FIDUCIARY STANDARDS, BASICALLY.

SO THAT'S HOW THAT COULD COME ABOUT. ARE THERE EXAMPLES WHERE THERE ISN'T? CAN YOU JUST MAYBE GO TO THE PREVIOUS SLIDE BECAUSE SURE, SURE.

YOU USE THE TERM PLENARY. PLENARY. PLENARY. YEAH.

ARE THERE EXAMPLES WHERE THERE MIGHT BE SOME TYPE OF RETIREMENT PLAN THAT'S SET UP THAT DOES NOT HAVE THAT AUTHORITY? THE LEGAL AUTHORITY, BUT SUBJECT TO JUDICIAL REVIEW? IS THERE IS THERE ANOTHER ALTERNATIVE OPTION? I'M JUST CURIOUS. YEAH. I THINK THIS IS FINE, AND I ACTUALLY SUPPORT THIS, BUT I'M JUST CURIOUS. YEAH. NO, NO, IT'S A GREAT QUESTION.

YEAH. SO BASICALLY THE SO YOU HAVE THESE RULES SO THAT APPLY.

SO UNDER ERISA, IF YOU WERE PUBLIC SECTOR, BUT UNDER STATE LAW, YOU HAVE THESE CONSTITUTIONAL PROVISIONS AND GOVERNMENT CODE PROVISIONS THAT HAVE THESE FIDUCIARY RULES. AND SO ANY BASICALLY ANY RETIREMENT SYSTEM BOARD OR THAT MEETS THAT BROAD DEFINITION.

RETIREMENT BOARD IS SUBJECT TO THOSE RULES. RIGHT? SO THEY'RE SUBJECT TO THESE FIDUCIARY DUTIES.

AND THEN WHEN THEY MAKE THOSE, YOU KNOW, WHEN THEY MAKE DECISIONS THOSE DECISIONS, IF SOMEBODY CHALLENGED THEM WOULD BE SUBJECT TO JUDICIAL REVIEW. SO THERE'S I DON'T KNOW OF ANY WAY THAT YOU CAN HAVE A, YOU KNOW, A RETIREMENT BOARD THAT ISN'T SUBJECT TO THESE RULES BECAUSE IT'S, YOU KNOW, IN THE CONSTITUTION AND THE GOVERNMENT CODE.

SURE. YOU'RE WELCOME.

SO IN ADDITION TO ADMINISTERING THE PLANS AND TO EFFECT.

WELL, NUMBER TWO IS ADMINISTERING THE PLANS TO EFFECTIVELY AND EFFICIENTLY TO PAY PLAN BENEFITS AND PROVIDE RELATED SERVICES TO PARTICIPANTS AND THEIR BENEFICIARIES, AND TO HOLD PLAN ASSETS FOR THE EXCLUSIVE BENEFIT OF PROVIDING BENEFITS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES AND PAYING REASONABLE PLAN EXPENSES. AND WITHIN THIS FRAMEWORK, THERE'S THE THREE KEY FIDUCIARY DUTIES THE DUTY OF LOYALTY, THE DUTY OF PRUDENCE, AND THE DUTY OF DIVERSIFICATION.

SO LET'S TALK A LITTLE BIT ABOUT THOSE. SO THE DUTY OF LOYALTY MEANS THAT PLAN FIDUCIARY MUST DISCHARGE ITS DUTIES SOLELY IN THE INTEREST OF, AND FOR THE EXCLUSIVE PURPOSE OF PROVIDING BENEFITS TO PARTICIPANTS AND BENEFICIARIES AND DEFRAYING REASONABLE PLAN EXPENSES.

AND I PUT THIS FIRST BECAUSE THIS IS THE MOST IMPORTANT OF THESE DUTIES.

THE DUTY OF LOYALTY ALSO MEANS THAT THE BOARD, THE BOARD MEMBERS MUST AVOID CONFLICTS OF INTEREST, MISREPRESENTATIONS TO MEMBERS, OR MISUSE OF PLAN ASSETS.

SO THE DUTY OF PRUDENCE REQUIRES FIDUCIARIES TO EXERCISE GOOD JUDGMENT WHEN THEY'RE MAKING DECISIONS THE SAME WAY THAT A PROFESSIONAL,

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BOARD, CAN AND SHOULD RELY ON EXPERTS. WHILE THAT DOESN'T RELIEVE IT OF ITS RESPONSIBILITY, IT SHOWS THAT IT WAS PRUDENT BY HIRING PROFESSIONAL EXPERTS TO PROVIDE ADVICE TO HELP IT FULFILL ITS DUTIES TO PLAN PARTICIPANTS. BUT WHAT'S MOST IMPORTANT IN THE DECISION MAKING PROCESS, AND YOU'LL HEAR THIS AGAIN AND AGAIN, IS FOLLOWING THAT PROCESS AND DOCUMENTING IT.

THAT'S ACTUALLY WHAT THE COURTS LOOK AT WHEN THEY'RE ANALYZING FIDUCIARY ISSUES.

IN OTHER WORDS, IT'S NOT THE OUTCOME THAT'S IMPORTANT, BUT THE PROCESS THAT'S USED TO REACH IT.

AND THAT'S WHY THINGS LIKE POLICIES, STAFF REPORTS, REPORTS FROM THE PLAN'S INVESTMENT CONSULTANT, WHICH I UNDERSTAND YOU'RE GOING TO GET LATER ON THIS MORNING.

INVESTMENT MANAGERS AND MINUTES SHOWING THE BOARD'S REVIEW AND EVALUATION OF THE INFORMATION THAT'S PROVIDED.

SO THE DUTY TO DIVERSIFY IS PRETTY STRAIGHTFORWARD.

AND THE BOARD HAS AN INVESTMENT ADVISOR TO ASSIST IT IN PERFORMING THIS.

BUT ONE OF THE PRIMARY GOALS IN SELECTING INVESTMENT OPTIONS FOR PLAN PARTICIPANTS TO CHOOSE FROM IS TO ENABLE THEM TO DIVERSIFY THE INVESTMENTS IN THEIR ACCOUNT TO AVOID THE RISK OF LARGE LOSSES.

AND IN ADDITION, ERISA AND THE COMMON LAW OF TRUSTS ADD ANOTHER DUTY TO OPERATE THE PLAN IN ACCORDANCE WITH ITS WRITTEN PLAN DOCUMENT.

I HAVE A QUESTION. YES. YEAH. CAN YOU GO BACK TO THE DUTY OF LOYALTY FOR JUST A MINUTE? SURE. SO, OKAY.

SO WHAT DOES IT MEAN BY MINIMIZING EMPLOYER CONTRIBUTIONS? BECAUSE NORMALLY THAT WOULD BE A GOOD THING. I MEAN, TO TO TO ACTUALLY PROVIDE CONTRIBUTIONS.

WHAT DOES THAT MEAN. OKAY. YEAH. NO THAT'S A REALLY GOOD QUESTION.

AND IT'S UNCLEAR WHETHER THAT REALLY APPLIES TO DEFINED CONTRIBUTION PLANS.

RIGHT. BECAUSE I THINK TYPICALLY WHERE THAT COMES INTO PLAY WOULD BE LIKE A DEFINED BENEFIT PENSION RETIREMENT SYSTEM, WHERE THE EMPLOYER IS FUNDING A DEFINED BENEFIT.

AND IN THAT RESPECT, ONE OF THE THINGS ONE OF THE GOALS IS TO, YOU KNOW, GET A GOOD INVESTMENT RETURN ON THE PENSION PLANS, ASSETS TO PAY BENEFITS AND WHEN. AND THEN THE EMPLOYER IS AND IN SOME CASES EMPLOYEES AND A CONTRIBUTORY PLAN ARE CONTRIBUTING TOWARDS THAT. SO THE GOAL IS TO GET GOOD INVESTMENT RETURNS.

AND SO THAT IS PROBABLY MORE LIKELY TO APPLY TO A DEFINED CONTRIBUTION PLAN.

BECAUSE YOU'RE RIGHT, IN THE CASE OF A DEFINED BENEFIT PLAN, IN THE CASE OF A DEFINED CONTRIBUTION PLAN, PROBABLY WHAT'S BETTER FOR PARTICIPANTS IS LARGER CONTRIBUTIONS.

SO SO THAT'S A REALLY GOOD QUESTION. BUT I THINK, YOU KNOW, THE LANGUAGE OF THE CONSTITUTION IS, YOU KNOW, WAS WRITTEN PROBABLY INITIALLY WITH A DEFINED BENEFIT TYPE RETIREMENT SYSTEMS IN MIND.

AND INTERESTINGLY, THAT'S NOT IN THE ERISA FIDUCIARY STANDARDS.

SO HOPEFULLY THAT HELPED A LITTLE BIT. BUT IT'S A REALLY GOOD QUESTION.

OKAY. SO YOU DON'T THINK THAT REALLY APPLIES HERE.

BECAUSE I WAS JUST THINKING ABOUT LIKE EMPLOYER MATCHING AND THINGS LIKE THAT, YOU WOULD WANT TO HAVE THAT RIGHT.

I MEAN, AND AGAIN, THAT'S, MORE OF LIKE AN EMPLOYER SETTLOR FUNCTION AS TO THE AMOUNT OF CONTRIBUTIONS.

SO YEAH. SO IT'S BUT IT'S A GOOD QUESTION BECAUSE IT'S NOT REALLY CLEAR LIKE HOW THIS WOULD APPLY TO A DEFINED CONTRIBUTION PLAN.

AND I THINK IT'S FAIR TO SAY THAT IT'S KIND OF I'M NOT SURE EXACTLY HOW TO APPLY IT TO A DEFINED CONTRIBUTION PLAN.

CERTAINLY APPLIES TO A DEFINED BENEFIT PLAN, THOUGH.

OKAY. THANK YOU. SURE. YOU'RE WELCOME.

BUT THERE'S BEEN SOME TIME, SO I'M GOING TO ASK IT AGAIN THIS YEAR BECAUSE DIRECTOR ECHOLS QUESTION REMINDED ME OF THIS.

SO WHAT WE'RE TALKING ABOUT HERE, IT'S S 457B DEFERRED COMPENSATION PLAN.

AND THEN THE 401 A PLAN. IS THAT CORRECT? CORRECT.

AND THESE ARE A LITTLE BIT DIFFERENT THAN A 401 K PLAN, WHICH IS WHAT I'M MOST FAMILIAR WITH.

AND SO IT JUST MIGHT BE HELPFUL TO KIND OF HEAR JUST HIGH LEVEL DIFFERENCES.

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AND FOR THAT MATTER, A 401 A PLAN, WHICH IS ACTUALLY THE TYPE OF PLAN THAT A 401 K YOU KNOW, WHEN I SAY 401 K PLAN IS A FEATURE IN A 401. 401 A IS A SECTION OF THE INTERNAL REVENUE CODE THAT HAS ALL THE PLAN, THE REQUIREMENTS FOR PLAN QUALIFICATION. AND THEN YOU ALSO HAVE 457 OF THE CODE, WHICH TALKS ABOUT DEFERRED COMPENSATION PLANS FOR GOVERNMENTAL AND TAX EXEMPT ENTITIES.

AND A 457 PLAN IS VERY SIMILAR, LOOKS VERY MUCH LIKE A 401 K PLAN.

I MEAN, IT ALLOWS PRETAX SALARY DEFERRALS FROM PAY.

SO IT'S VERY SIMILAR IN THAT RESPECT. AND THERE'S SOME WRINKLES THAT ARE DIFFERENT.

YOU KNOW, IT'S SUBJECT TO DEFERRAL LIMITS JUST LIKE A 401 K HAS DISTRIBUTION RESTRICTIONS JUST LIKE A 401 K.

SO IT'S VERY SIMILAR. YOU KNOW, IT LOOKS VERY SIMILAR.

AND I THINK OVER TIME 457 B PLANS HAVE BECOME MORE LIKE 401 K PLANS, WHICH IS PROBABLY INTENTIONAL, BUT THEY ARE GOVERNED BY DIFFERENT RULES, YOU KNOW. SO THAT'S IMPORTANT TO NOTE.

SO AS MENTIONED, THE 401 A PLAN IS A QUALIFIED RETIREMENT PLAN.

AND THAT AND AGAIN YOU COULD HAVE A 401 K FEATURE IN A QUALIFIED DEFINED CONTRIBUTION PLAN.

BUT GENERALLY PUBLIC SECTOR EMPLOYERS CAN'T SPONSOR A 401 K PLAN.

SO THAT'S WHY YOU HAVE A 457 B PLAN. THERE ARE SOME GRANDFATHERING RULES FOR FOR EMPLOYERS WHO HAD 401 K PLANS A LONG TIME AGO, LIKE 1986 OR SOMETHING LIKE THAT. SO SO THAT'S KIND OF YOUR, OPTION FOR LIKE A DEFERRED COMPENSATION, LIKE A 401 K IS THE 457 B, SO YOU'RE NEVER GOING TO SEE A 401 K IN A PUBLIC AGENCY.

YOU CAN BUT LIKE I SAY, IT'S GOING TO BE SOMEONE THAT HAD IT HAS HAD THAT 401 K FOR A LONG TIME.

AN AGENCY THAT. OH OKAY. SPONSORED ONE BACK IN I THINK IT'S IN LIKE 1986 OR SOMETHING.

BUT GENERALLY SPEAKING, IF SOMEBODY SAYS I HAVE A 401 A, IT MEANS THEY'RE A PUBLIC EMPLOYEE.

C ORRECT? YEAH. GENERALLY PEOPLE IN PUBLIC SECTOR IN CALIFORNIA, MOST OF THE CLIENTS I WORK WITH, THEY TALK ABOUT THE 401 A PLAN, RIGHT, AS MEANING THE DEFINED CONTRIBUTION PLAN.

DOES THAT HELP? HOPEFULLY, YES. VERY MUCH. THANK YOU.

GREAT. YOU'RE WELCOME. THANKS. THESE ARE GREAT QUESTIONS I APPRECIATE IT.

SO I'M GOING TO TALK ABOUT THE DUTY TO DIVERSIFY.

YEAH. SO THAT'S PRETTY STRAIGHTFORWARD. YOU HAVE AN INVESTMENT ADVISOR EMPOWER.

I THINK YOU HAVE SOMEONE FROM EMPOWER COMING TODAY TO HELP YOU IN PERFORMING THE SELECTING INVESTMENTS. AND PART OF THAT IS DIVERSIFY, SELECTING INVESTMENTS SO THAT YOU HAVE DIVERSIFIED OPTIONS.

THE PRIMARY GOALS IN SELECTING THOSE OPTIONS FOR PLAN PARTICIPANTS, AGAIN, IS TO ENABLE THEM TO DIVERSIFY THE INVESTMENTS IN THEIR ACCOUNTS.

AND WE'VE ALREADY TALKED ABOUT THIS. SORRY. OKAY.

SO WHAT ARE THE FIDUCIARY STANDARDS. AND SOME THE WHAT IS THAT FIDUCIARIES HAVE TO ACT SOLELY IN THE INTEREST OF PLAN PARTICIPANTS AND BENEFICIARIES. ABOVE ALL ELSE T HAT'S NUMBER ONE.

HOLD AND MANAGE THE ASSETS EXCLUSIVELY TO PAY PLAN BENEFITS IN REASONABLE PLAN ADMINISTRATION COSTS AND ACT PRUDENTLY WITH THE SAME SKILL OR CARE, SKILL AND DILIGENCE AND PRUDENCE THAT A PRUDENT EXPERT WOULD DIVERSIFY PLAN ASSETS UNLESS IT'S CLEARLY IMPRUDENT. FOLLOW THE PLAN'S TERMS UNLESS INCONSISTENT WITH THE LAW, AND FOCUS ON THE PROCESS AND DOCUMENTING.

THAT'S IMPORTANT.

SO THE NEXT QUESTION IS WHEN DID THE FIDUCIARY STANDARDS APPLY? THEY DON'T APPLY ALWAYS, BUT THEY USUALLY APPLY WHEN WHATEVER THE ACTIVITY INVOLVES DISCRETION.

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HOWEVER, THEY DON'T APPLY TO PURELY MINISTERIAL FUNCTIONS THOSE THAT DON'T INVOLVE DECISION MAKING.

SO WHEN SOMEONE'S ACTING FIDUCIARY CREATES POLICIES AND PROCEDURES AND SOMEONE'S FOLLOWING THOSE PROCEDURES, THEY'RE ACTING WITHIN A FRAMEWORK CREATED BY OTHERS.

THOSE WOULD BE MINISTERIAL. YOU CAN RELY ON INFORMATION PROVIDED BY INDIVIDUALS WHO PERFORM MINISTERIAL FUNCTIONS, BUT ONLY IF YOU ARE CONFIDENT YOU CAN RELY ON THEM, FOR EXAMPLE, IF YOU'VE PRUDENTLY SELECTED THEM.

SO NOW I GUESS WE'LL GET TO THE MOST IMPORTANT THING, WHICH IS WHY THIS IS ALL SO IMPORTANT.

FIRST PARTICIPANT LITIGATION. THE DAMAGES FOR FIDUCIARY BREACH ARE THE LOSS RESULTING FROM THE BREACH AND THE NUMBER OF LAWSUITS REGARDING PARTICIPANT DIRECTED DEFINED CONTRIBUTION PLANS REGARDING FEES AND INVESTMENT OPTIONS CONTINUES TO GROW. AND WHILE ERISA LIMITS PROXIMATE DAMAGES THAT PEOPLE PLAINTIFFS CAN RECOVER FOR A BREACH OF FIDUCIARY DUTY, THAT IS, THERE'S NO PUNITIVE OR PAIN AND SUFFERING DAMAGES, STATE LAW MAY NOT. SECOND, EVEN IF UNSUCCESSFUL FIDUCIARY BREACH CLAIMS ARE BAD PUBLIC AND FOR PUBLIC AND EMPLOYEE RELATIONS. THIRD, UNDER ERISA AND THE COMMON LAW, AT LEAST, PLAN FIDUCIARIES CAN BE INDIVIDUALLY LIABLE.

BUT FOLLOWING AND DOCUMENTING A PRUDENT DECISION MAKING PROCESS IS REALLY PARAMOUNT AND INCREASES YOUR ABILITY TO DEMONSTRATE COMPLIANCE AND ENSURE BEST PRACTICES. NOW LET'S TALK A LITTLE BIT ABOUT INVESTMENTS.

SO UNDER THE CONSTITUTION AND THE TERMS OF THE INVESTMENT POLICY STATEMENT, THE BOARD HAS THE SOLE AND EXCLUSIVE RESPONSIBILITY AND AUTHORITY OVER PLAN ASSETS.

AND THE FIDUCIARY STANDARDS APPLY TO THE BOARD'S DEVELOPING AND MAINTAINING THE IPS SELECTION AND MONITORING OF THE PLAN'S INVESTMENT OPTIONS, SELECTING THE PLAN'S DEFAULT INVESTMENT OPTION, AND DECIDING WHEN TO REMOVE AN INVESTMENT OPTION FROM THE PLAN LINEUP WHEN IT FAILS TO SATISFY THE ESTABLISHED CRITERIA.

AGAIN, THE PRIMARY GOAL IN SELECTING AND MONITORING PLAN INVESTMENTS SHOULD BE THE PROCESS.

AND YOU'LL SEE. WE'LL TALK ABOUT THIS IN SOME OF THE EXAMPLES OF LITIGATION CASES THAT ILLUSTRATE SOME OF THESE POINTS.

ACTIVELY OVERSEEING THE PLAN INVESTMENT OPTIONS IS THE MOST IMPORTANT THING.

AND DOCUMENT YOUR REVIEW AND YOUR DECISION MAKING PROCESS.

AND SOME OF THE BEST PRACTICES FOR SELECTING INVESTMENT OPTIONS INCLUDE THOSE LISTED HERE AND ALSO INCLUDED IN THE IPS.

AND WHILE THE DUTY OF LOYALTY MAY BE IMPLICATED GENERALLY, FIDUCIARY BREACH CLAIMS FOCUS INVOLVING DEFINED CONTRIBUTION PLANS FOCUS ON PROCEDURAL PRUDENCE MORE THAN RESULTS.

AND FORTUNATELY, THE IPS INCLUDES BOTH QUALITATIVE AND QUANTITATIVE FACTORS THAT THE BOARD SHOULD CONSIDER WHEN SELECTING AND MONITORING INVESTMENT OPTIONS FOR THE PLANS. AND THESE INCLUDE SOME OF THE FACTORS LISTED HERE ON THE SLIDE.

AND HERE ARE SOME OF THE OTHER FACTORS TO CONSIDER IN SELECTING AND MONITORING PLAN INVESTMENTS.

FOR EXAMPLE, A PARTICIPANT INVESTMENT KNOWLEDGE IS REALLY IMPORTANT.

SOME OF THE FIDUCIARY BREACH CASES HAVE INVOLVED PLANS THAT HAD OVERLY COMPLICATED INVESTMENT LINEUPS THAT WERE DIFFICULT FOR PARTICIPANTS TO UNDERSTAND, AND THEY HAD TOO MANY DUPLICATIVE OR OVERLY COSTLY FUNDS.

SO IF YOU HAVE TWO FUNDS THAT SERVE THE SAME ROLE, AND YOU HAVE ONE THAT'S MORE EXPENSIVE,

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SO THE OTHER THING TO THINK ABOUT, I BELIEVE YOUR PLANS HAVE THE 457 PLAN HAS AUTOMATIC ENROLLMENT, I THINK, FOR ONE OF YOUR BARGAINING UNITS. SO SOMETHING TO CONSIDER IN THAT CASE IS, WELL, WHAT HAPPENS IF SOMEONE DOESN'T MAKE INVESTMENT AN INVESTMENT ELECTION MONEY GOES INTO THE PLAN.

AND ONE OF THE DUTIES OF THE FIDUCIARY RESPONSIBLE FOR INVESTMENT OF PLAN ASSETS IS TO DECIDE WHAT FUND THAT GETS INVESTED INTO.

RIGHT. FORTUNATELY, THE DEPARTMENT OF LABOR ISSUED SOME GUIDANCE OVER TEN YEARS AGO, IN FACT TO PROVIDE SOME GUIDANCE ON, YOU KNOW, WHAT FACTORS TO CONSIDER IN SELECTING THAT DEFAULT INVESTMENT.

BUT IN GENERAL IT'S COMMON TO USE A TARGET DATE FUND BECAUSE AS PEOPLE MOVE TOWARDS RETIREMENT, THEY'RE DESIGNED TO THE INVESTMENTS ARE DESIGNED TO BECOME MORE CONSERVATIVE.

AND TALK A LITTLE BIT ABOUT LIABILITY RELIEF.

INTERESTINGLY, THE CALIFORNIA GOVERNMENT CODE INCLUDES A SECTION.

AND IT'S 53213.5 THAT PROVIDES RELIEF FOR DEFINED GOVERNMENTAL DEFINED CONTRIBUTION PLAN FIDUCIARIES FROM LIABILITY THAT RESULTS FROM PARTICIPANT INVESTMENT DECISIONS.

BUT THERE'S A CATCH. SO TO QUALIFY FOR THIS RELIEF, PLANS HAVE TO PROVIDE PARTICIPANTS WITH AN EFFECTIVE OPPORTUNITY TO EXERCISE CONTROL OVER THE INVESTMENT OF THEIR ACCOUNTS AND PERMIT THEM TO CHOOSE FROM A BROAD ARRAY OF INVESTMENT ALTERNATIVES, AT LEAST THREE OF WHICH HAVE DIVERSIFIED AND HAVE MATERIALLY DIFFERENT RISK AND RETURN CHARACTERISTICS.

YOU ALSO HAVE TO ALLOW INVESTMENT CHANGES, AT LEAST QUARTERLY.

THAT'S NOT AN ISSUE. MOSTLY THESE DAYS WITH WITH, YOU KNOW, DAILY RECORD KEEPING SYSTEMS AND YOU HAVE TO PROVIDE ENOUGH INFORMATION ABOUT THE INVESTMENTS SO THAT PARTICIPANTS CAN MAKE INFORMED DECISIONS.

AND THAT'S, YOU KNOW, IN THE FORM OF PROSPECTUSES AND THINGS OF THAT NATURE.

SO I THINK YOUR PLANS ALSO HAVE A SELF-DIRECTED BROKERAGE ACCOUNT FEATURE.

AND BASICALLY THAT ALLOWS PARTICIPANTS TO CHOOSE FROM A BROADER RANGE OF INVESTMENT OPTIONS OUTSIDE OF THE PLAN'S NORMAL INVESTMENT PLATFORM. AND AS A RESULT, THEY'RE NORMALLY SELF-DIRECTED.

BROKERAGE ACCOUNTS ARE NORMALLY OUTSIDE OF THE SCOPE OF THE IPS PROCESSES, BUT THE FIDUCIARY DUTY APPLIES TO SELECTING AND MONITORING THE PROVIDERS OF THE SELF-DIRECTED BROKERAGE ACCOUNTS.

SO YOU ALSO HAVE A DUTY TO MONITOR THE PLAN'S INVESTMENT OPTIONS ON AN ONGOING BASIS, NOT JUST SELECT THEM.

FOR BEST PRACTICES AGAIN, FOLLOW THE IPS, PERIODICALLY, REVIEW PERFORMANCE AGAINST BENCHMARKS, AND REVIEW AND ADJUST THEM PERIODICALLY. THE OTHER THING TO DO IS TO LOOK FOR CHANGES IN FUND MANAGEMENT OR STRATEGY OR GLOBAL MARKETS GENERALLY, AND AN INVESTMENT ADVISOR.

USUALLY THESE INVESTMENT ADVISOR WILL PRESENT ABOUT THINGS LIKE THAT, ABOUT SORT OF ECONOMIC CONDITIONS AND TRENDS AND THINGS OF THAT NATURE THAT MAY AFFECT WHETHER AN OPTION CONTINUES TO BE A GOOD INVESTMENT AND, MOST IMPORTANTLY, DOCUMENT. SO THE IPS PROVIDES THAT THE BOARD WILL MEET AT LEAST TO MONITOR INVESTMENT OPTIONS AT LEAST ANNUALLY, BASED ON THE SAME QUALITATIVE AND QUANTITATIVE FACTORS TO ENSURE THEY REMAIN APPROPRIATE. YOU MAY WANT TO MEET MORE THAN MORE FREQUENTLY, AND I THINK MAYBE YOU MAY ACTUALLY BE MEETING SEMIANNUALLY, AND SOME EVEN MEET QUARTERLY, DEPENDING ON THE CIRCUMSTANCES.

IF WITH YOUR INVESTMENT ADVISORS ASSISTANCE, YOU DETERMINE THAT A FUND NO LONGER MEETS THE ESTABLISHED CRITERIA OR MIGHT NOT IN THE

[00:35:01]

AND BASED ON THAT REVIEW, YOU MAY DECIDE THE OPTION TO DECIDE TO KEEP THE OPTION AND REMOVE IT FROM THE WATCH LIST OR TERMINATE IT.

NOW LET'S TALK A LITTLE BIT ABOUT SERVICE PROVIDERS. EXCUSE ME.

HELLO. BEFORE WE. CAN I ASK A QUESTION BEFORE YOU GO ON TO THE NEXT SECTION? SURE. PLEASE GO AHEAD. YES, I HAD A QUESTION ABOUT THIS A FEW SLIDES BACK.

THE LIMITED LIABILITY RELIEF SLIDE. CAN YOU JUST.

SURE. GO BACK THERE FOR A SECOND. YEAH. THERE YOU GO.

YEAH. OKAY, SO HERE IT SAYS THAT YOU MUST PROVIDE PARTICIPANTS OPPORTUNITY TO EXERCISE CONTROL OVER THEIR ACCOUNT ASSETS.

AND PARTICIPANTS MUST ACTUALLY EXERCISE THE CONTROL.

SO. SO WHAT IF. OKAY. SO FOR FIRST OF ALL, FOR EXAMPLE, IF THEY DON'T CHOOSE ANYTHING AND THEY GO TO THE DEFAULT OPTION THEN DOES THIS JUST NOT APPLY OR WHAT DOES WHAT DOES THIS MEAN.

THAT'S A REALLY GOOD QUESTION. SO YEAH, BECAUSE IN ESSENCE THEY'VE EXERCISED A CHOICE BY NOT MAKING A CHOICE BY DEFAULT. SO THAT'S A GOOD QUESTION. SO ONE OF THE THINGS AGAIN, AND IT GOES TO BECAUSE THEY HAVEN'T MADE A CHOICE.

SO REALLY THERE IT'S I THINK FROM A FIDUCIARIES PERSPECTIVE IT'S SELECTING THE RIGHT KIND OF DEFAULT FUND. THAT'S AN IMPORTANT PART OF THE INVESTMENT FIDUCIARIES DECISION MAKING PROCESS. RIGHT. ONE OF THE THINGS THAT YOU HAVE TO DECIDE IS WHAT'S THE RIGHT FUND, DEFAULT FUND BECAUSE THEY'RE NOT EXERCISING A CHOICE.

AND SO THAT'S WHY THAT BECOMES MORE IMPORTANT WHEN YOU SELECT THAT THE FUND THE DEFAULT FUND BASICALLY.

RIGHT. BECAUSE THAT'S THAT'S PART OF THE DECISION.

THAT'S THAT'S A FIDUCIARY DECISION. AND SO YOU KNOW, TO SELECT THAT FUND IN ACCORDANCE WITH, YOU KNOW, AGAIN, ALL THESE THESE DUTIES, MOST IMPORTANTLY THE DUTY OF PRUDENCE.

AND AGAIN, DOCUMENTING AND FOLLOWING, YOU KNOW, FOLLOWING A PROCESS AND DOCUMENTING THAT PROCESS FOR SELECTING THAT DEFAULT FUND.

BUT YOU'RE RIGHT. GO AHEAD. OH YEAH, I WAS JUST GOING TO ASK ALSO.

SO IF THEY DID EXERCISE CONTROL INITIALLY, SAY THEY SAY THEY CHOSE ONE OF THE TARGET FUNDS.

BUT THEN DIDN'T DO ANYTHING AGAIN, YOU KNOW, SO THEY WEREN'T CONTINUING TO ACTUALLY EXERCISE CONTROL.

WHAT DOES HOW DOES THAT PLAY OUT. DOES THAT STILL MEET THE REQUIREMENT.

SO IF THEY SAID, OKAY, I'M GOING TO YOU KNOW, I'M RETIRING IN, YOU KNOW, 2030 OR WHATEVER.

AND BUT THEN THEY DON'T EVER CHANGE IT. IT JUST SITS THERE AND NOTHING EVER HAPPENS.

SO HOW DO YOU KNOW THAT THEY'RE ACTUALLY EXERCISING CONTROL? YEAH. I'M JUST TRYING TO UNDERSTAND WHAT IT MEANS TO EXERCISE CONTROL OVER THEIR ASSETS.

AND THEN PARTICIPANTS MUST ACTUALLY EXERCISE CONTROL.

SO IT'S OKAY IF THEY EXERCISE CONTROL ONCE AND JUST IT JUST SITS THERE.

WELL YEAH. AGAIN. SO THE WELL A COUPLE OF THINGS.

SO YEAH. SO ONE OF THE THINGS THAT'S IMPORTANT IS, YOU KNOW, AS, AS IF YOU'RE THE INVESTMENT FIDUCIARY, THE PLAN ADMINISTRATOR, ONE OF THE THINGS THAT'S REALLY IMPORTANT IS PARTICIPANT COMMUNICATION.

SO YOU IF YOU SEE THAT YOU'VE GOT A BUNCH OF PEOPLE WHO ARE INVESTED IN THE DEFAULT FUND, THAT'S PROBABLY NOT A GOOD THING.

YOU DON'T WANT THAT. SO ONE OF THE WAYS YOU CAN TRY TO ADDRESS THAT IS THROUGH PARTICIPANT COMMUNICATIONS TO TRY TO AND YOU CAN GET ASSISTANCE FROM EMPOWER WHOEVER TO TRY TO IMPROVE YOUR PARTICIPATION RATE.

AND THAT WOULD BE A PRUDENT ACTION. I WOULD SAY, NUMBER ONE, THAT'S SORT OF A HIGH LEVEL KIND OF THING.

BUT THAT DOESN'T YOU CAN'T MAKE PEOPLE EXERCISE CONTROL OVER THEIR INVESTMENTS.

AND THAT'S NOT REALLY YOUR THE REQUIREMENT IS THAT YOU HAVE TO PROVIDE AN OPPORTUNITY FOR PARTICIPANTS TO EXERCISE CONTROL.

THAT'S THE KEY. YOU CAN'T MAKE THEM. THEY DON'T ACTUALLY HAVE TO EXERCISE CONTROL.

BUT BECAUSE YOU CAN'T CONTROL THAT, YOU CAN'T MAKE SOMEONE DO, YOU KNOW, EXERCISE CONTROL OVER THEIR INVESTMENT OF THEIR ACCOUNT.

[00:40:05]

DOES A LANGUAGE. NOW I'M CURIOUS, DOES THE LANGUAGE ACTUALLY SAY IN THE GOVERNMENT CODE THAT PARTICIPANTS MUST ACTUALLY EXERCISE CONTROL? WELL GOOD QUESTION. SO IT ACTUALLY DOESN'T SAY THAT.

AND WHAT WHAT IT SAYS IS IT SAYS THAT ONE OF THE CONDITIONS FOR THIS LIABILITY RELIEF IS THAT THE PLAN HAS TO COMPLY WITH REQUIREMENTS SIMILAR TO THOSE UNDER ERISA, SECTION 404 C. THAT'S WHAT IT LITERALLY SAYS.

AND NOBODY KNOWS WHAT WHAT I WOULD INTERPRET THAT TO MEAN I GOT TO COMPLY WITH ERISA SECTION 404 C THAT'S KIND OF YOU KNOW, IT DOESN'T YOU KNOW, IT'S SIMILAR, BUT BUT THE BOTTOM LINE, THAT'S WHAT I, THAT'S WHAT THIS IS BASED ON.

SO IT REFERS TO OKAY. BUT THE ERISA 404 C HAS THIS LANGUAGE THEN.

YES. EXACTLY. SO AGAIN SO WE'RE KIND OF LOOKING TO ERISA.

WE HAVE THIS STATE LAW. IT'S SORT OF SOMEWHAT AMBIGUOUSLY REFERS TO ERISA SOMETHING SIMILAR TO ERISA 404 C.

BUT WE KNOW WHAT THAT IS BECAUSE ERISA 404 C HAS THESE STANDARDS.

SO WE LOOK AT THOSE, WE LOOK TO THOSE FOR GUIDANCE AS TO HOW TO COMPLY WITH THIS.

IF THAT MAKES SENSE THAT'S A GOOD QUESTION. YEAH.

THE GOVERNMENT CODE DOES NOT HAVE ALL THIS IN IT.

IT CROSS-REFERENCES. OKAY. THANK YOU. YOU'RE WELCOME.

SO AS FAR AS SELECTING AND LET'S GO ON HERE, TALKED ABOUT THAT.

OKAY. LET'S SEE.

LET'S SEE HERE. OKAY. I THINK WE'VE ALREADY TALKED ABOUT THAT. LET'S SEE. SORRY ABOUT THAT.

OKAY. YEAH. WE'RE ON TO SERVICE PROVIDERS. AND THIS IS NOT SOMETHING THAT YOU PROBABLY DEAL WITH A LOT.

DOESN'T INVOLVE INVESTMENTS. I HAVE A QUESTION.

OKAY. PLEASE GO AHEAD. CAN WE GO BACK TO THE ONE SLIDE BEFORE? YEAH, SURE. SO MONITORING INVESTMENT OPTIONS, THE IPS, WHICH IS SOMETHING WE'RE GOING TO BE LOOKING AT LATER TODAY.

RIGHT. EXACTLY. YOU KNOW WE WHAT? I DON'T EVEN KNOW HOW TO ASK MY QUESTION.

LET ME THINK FOR A MINUTE. BUT WHO REVIEWS OR HELPS MAKES THE DETERMINATION THAT THE IPS IS MET.

WE HIRE THESE EXPERTS OUTSIDE TO WORK ON OUR BEHALF WE'RE A BOARD WHO OVERSEES.

WE HAVE STAFF THAT HELPS US AND THEN WE HAVEN'T RAISED IT YET.

BUT THIS DCAC. SO THERE'S S THE BOARD WILL MEET TO MONITOR INVESTMENT OPTIONS, AND WE DECIDE ON WHETHER WE PUT ANYTHING ON THE WATCH LIST OR TERMINATE. I GUESS I'M JUST NOT. WHAT'S THE PROCESS AND WHAT DO WE USE THE EXPERTS FOR OUR STAFF FOR THE DCAC. WHO'S ACTUALLY YOU SAY HERE THE BOARD IS GOING TO MAKE THAT DECISION OR WE WILL MAKE THAT DECISION TODAY LATER, RIGHT? RIGHT. YES. IT'S A REALLY GOOD QUESTION.

SO AND AGAIN THIS GOES BACK TO SO THAT THERE ARE DIFFERENT WAYS TO STRUCTURE A PLAN'S GOVERNANCE STRUCTURE.

RIGHT. BUT ULTIMATELY IT'S THE PEOPLE THAT MAKE THE DECISION, RIGHT, THAT ARE, THAT ARE ON THE HOOK.

RIGHT. THAT'S KIND OF, YOU KNOW, THAT'S WHEN YOU PAY ATTENTION.

I HAVE TO DECIDE. I HAVE THESE PEOPLE WHO HELP ME DECIDE.

BUT ULTIMATELY, THE BUCK STOPS HERE, RIGHT? AND THAT'S REALLY THE FIDUCIARY.

RIGHT? THAT'S THE AND SO, YOU KNOW, IT'S NOT ALWAYS SET UP THAT WAY SOMETIMES THE, YOU KNOW, A BOARD, A PUBLIC AGENCY BOARD MIGHT DELEGATE THIS TO A COMMITTEE THAT HAS THAT DECISION MAKING AUTHORITY.

RIGHT. AND YOU'D WANT TO PICK PEOPLE FOR THAT COMMITTEE THAT, YOU KNOW, HAVE THE HAVE SOME OF THE BACKGROUND THAT WOULD MAKE THEM GOOD CHOICES FOR THAT TYPE OF POSITION. RIGHT. SOME EXPERIENCE HR, LEGAL, S OME EXPERIENCE WITH INVESTMENTS.

[00:45:04]

YOU COULD DELEGATE THAT TO A COMMITTEE, THAT DECISION MAKING AUTHORITY.

BUT AGAIN, YOU'D WANT TO HAVE THAT. YOU'D WANT TO STRUCTURE IT AND SET IT UP SO THAT THEY UNDERSTAND THEIR ROLE AND THEY MAKE THE DECISIONS, IF THAT MAKES SENSE. DOES THAT HELP? YEAH. IT'S HELPFUL.

THANK YOU. YOU'RE WELCOME. THAT'S A GOOD QUESTION.

OKAY.

SO SELECTING AND MONITORING SERVICE PROVIDERS IS AGAIN IT'S A FIDUCIARY FUNCTION.

AND YOU KNOW THAT'S NOT SOMETHING YOU FOLKS HAVE PROBABLY BEEN DIRECTLY INVOLVED WITH.

BUT EITHER DIRECTLY OR INDIRECTLY VIA DELEGATION.

THE PLAN ADMINISTRATOR IS GENERALLY RESPONSIBLE FOR SELECTING AND MONITORING SERVICE PROVIDERS.

GENERALLY IT'S CRITICAL TO PERIODICALLY DO RFPS EVERY FIVE YEARS OR SO, SOMETHING LIKE THAT.

I MEAN, THERE'S NO HARD AND FAST RULE. AND OF COURSE, YOU JUST WENT THROUGH THIS PROCESS AND YOU CHANGED RECORD KEEPERS.

SO EMPOWER'S NOW THE PLANS NEW RECORD KEEPER.

AND I JUST WANTED TO POINT THIS OUT SOMETHING FOR THE FUTURE TO CONSIDER.

AND HERE'S SOME OF THE FACTORS HERE THAT THINGS THAT YOU WOULD LOOK AT WHEN SELECTING AND MONITORING SERVICE PROVIDERS.

AND NEXT WE'LL TALK JUST BRIEFLY ABOUT OPERATIONS.

AND FIDUCIARY DUTIES MAY EXTEND TO SOME OF THE PLAN'S OPERATIONAL FUNCTIONS.

SOME OF THOSE LISTED HERE. AND BASICALLY THAT'S THESE AREN'T ALWAYS GOING TO BE A FIDUCIARY SUBJECT TO FIDUCIARY DUTIES IN SOME CASES, BUT IT'S REALLY GOING TO BE THE CASE WHERE THEY INVOLVE EXERCISE OF DISCRETION.

AND IT'S IMPORTANT TO POINT OUT THAT EMPOWER HAS AGREED ONLY TO PERFORM THESE FUNCTIONS IN ACCORDANCE WITH THE PLANS AND YOUR DIRECTION.

SO THEY DON'T WANT TO BE A FIDUCIARY. GENERALLY, THAT'S JUST SORT OF THE SERVICE PROVIDERS DON'T WANT IT.

THEY WANT IT TO BE, YOU KNOW, DO MINISTERIAL THINGS.

HOWEVER, THERE MAY BE CIRCUMSTANCES THAT COME UP WHERE AN ISSUE WITH AN ISSUE THAT EMPOWER WILL LOOK TO YOU FOR DIRECTION THAT FALL OUTSIDE THE ESTABLISHED PROCEDURES, AND THAT THESE MIGHT REQUIRE YOU TO EXERCISE FIDUCIARY DUTIES IN DECIDING WHAT TO DO. SO DELEGATION VERY IMPORTANT. YOU CAN'T PERFORM EVERY FUNCTION REQUIRED TO OPERATE THE PLAN.

SO YOU HAVE TO DELEGATE. BUT AS NOTED, THAT ITSELF IS A FIDUCIARY DECISION.

SO YOU HAVE TO PRUDENTLY CHOOSE WHAT TO DELEGATE AND WHO TO DELEGATE IT TO.

AND YOU WANT TO PAY ATTENTION TO WHO'S PERFORMING THESE FUNCTIONS.

YOU WANT TO MONITOR THEM. AND PLAN GOVERNANCE IS IMPORTANT.

WE TALKED ABOUT GOVERNANCE STRUCTURE. CLEARLY DELINEATING WHO'S RESPONSIBLE AND WHAT THEY'RE RESPONSIBLE FOR IS REALLY IMPORTANT.

IT'S ALSO IMPORTANT BECAUSE AS I MENTIONED BEFORE, DELEGATION IS ITSELF A FIDUCIARY ACT.

LET'S TALK A LITTLE BIT ABOUT WHY THIS IS SO IMPORTANT AND FIDUCIARY LITIGATION.

SO TO ESTABLISH A CLAIM OF FOR BREACH OF FIDUCIARY DUTY, A PLAINTIFF HAS TO ESTABLISH THREE THINGS.

HE HAS TO ESTABLISH THAT THE DEFENDANT IS A FIDUCIARY T HAT THE DEFENDANT BREACHED HIS OR HER FIDUCIARY DUTY, AND THAT BREACH PROXIMATELY CAUSED THE PLAINTIFF'S DAMAGES.

AND I WANT TO TALK A LITTLE BIT ABOUT THE O'NEAL CASE.

[00:50:01]

IT INVOLVED A DEFINED BENEFIT PENSION PLAN. BUT I THINK IT'S REALLY USEFUL BECAUSE IT ILLUSTRATES HOW A CALIFORNIA COURT APPROACHED A BREACH OF FIDUCIARY DUTY CLAIM. AND THIS INVOLVED STANCERA AND THE STANCERA BOARD BACK DURING THE GREAT RECESSION APPROVED THE TRANSFER OF FUNDS FROM A NON VALUATION RESERVES TO DIRECTLY OFFSET THE EMPLOYER'S CONTRIBUTIONS FOR UNFUNDED ACTUARIAL ACCRUED LIABILITY AND TO LENGTHEN THE AMORTIZATION PERIOD FOR THAT.

IN 2009, SEVERAL RETIRED STANCERA MEMBERS SUED STANCERA CLAIMING THAT THESE BY DOING THIS, STANCERA BREACHED ITS DUTIES OF LOYALTY AND PRUDENCE TO ITS MEMBERS BY FAVORING THE COUNTY AND OTHER PARTICIPATING EMPLOYERS OVER THE SYSTEM MEMBERS. AND THE COUNTY INTERVENED, AND AFTER MORE THAN A DECADE OF LITIGATION, THREE APPEALS AND A TWO WEEK BENCH TRIAL, THE COURT OF APPEAL AFFIRMED THE TRIAL COURT'S DECISION IN FAVOR OF THE COUNTY.

AND THE COURT RULED THAT NONE OF THE CHALLENGED ACTIONS WERE PER SE ILLEGAL, SO LONG AS THEY WERE MOTIVATED BY A DESIRE TO BENEFIT THE MEMBERS RATHER THAN A THIRD PARTY.

SO THAT IS THE BOARD, PROPERLY CONSIDERED HOLISTICALLY, THAT ACTIVE MEMBERS WOULD HAVE LOST THEIR JOBS HAD THE COUNTY BEEN REQUIRED TO PAY THE OTHERWISE REQUIRED CONTRIBUTIONS. THE COURT ALSO CONCLUDED THAT DECISIONS MADE BY A PUBLIC RETIREMENT SYSTEM BOARD AREN'T ILLEGAL, BECAUSE THEY DON'T EQUALLY BENEFIT RETIREES AND ACTIVE MEMBERS.

THESE WERE DIFFICULT DECISIONS, AND THE COURT RECOGNIZED THE CIRCUMSTANCES PREVAILING NECESSARILY INFORMED THE MANNER IN WHICH THE BOARD DISCHARGED ITS DUTIES.

AND THIRD, WHILE A PUBLIC RETIREMENT BOARD HAS TO GRAPPLE WITH THE CHALLENGES OF MAINTAINING AN ACTUARIALLY SOUND PENSION SYSTEM, THE PARAMOUNT GOAL MUST BE TO ENSURE THE SECURITY OF MEMBERS PENSION BENEFITS.

MOST IMPORTANTLY HERE IN DOING SO, PUBLIC RETIREMENT SYSTEM BOARDS ENSURE MUST ENSURE THEY'RE BEING ADVISED BY COMPETENT PROFESSIONALS AND HAVE IN PLACE PROCESSES FOR ENSURING THAT THE INTERESTS OF THE RETIREMENT SYSTEM MEMBERS ARE WEIGHED AND THOUGHTFULLY CONSIDERED.

I'M SURE YOU PROBABLY HAVE ALL HEARD OVER THE PAST DECADE, REALLY, MORE THAN THE PAST DECADE, THERE'S BEEN AN EXPLOSION OF LITIGATION OVER FEES CHARGED TO DEFINE CONTRIBUTION PLAN PARTICIPANTS.

INITIALLY, THESE SUITS FOCUSED ON LARGE CORPORATE 401 ERISA COVERED 401 K PLANS, BUT THEY'VE SINCE EXPANDED TO NONPROFITS, INCLUDING UNIVERSITIES. AND WE'VE ALSO LEARNED OF JUST LAST YEAR OF A SUIT AGAINST A PUBLIC SECTOR DC PLAN SPONSOR. SO THIS IS PROBABLY ANOTHER AREA THAT THIS MAY GROW INTO.

FREQUENTLY THESE INVOLVE CLASS ACTIONS INVOLVING CLAIM OF BREACH FOR FIDUCIARY DUTY, FOR SELECTING MORE EXPENSIVE FUNDS OR CLASS SHARES WHEN LESS EXPENSIVE ONES ARE AVAILABLE. BUT THEY'VE ALSO, LIKE I SAID, EXTENDED THE CLAIMS AGAINST FOR UNIVERSITY 403 B PLANS FOR HAVING OVERLY COMPLEX LINEUPS WITH DUPLICATIVE AND OVERLY COSTLY FUNDS.

SO ONE OF THE MOST OFTEN CITED CASES IN THIS AREA IS TIBBLE VERSUS EDISON INCITED UNDER ERISA.

BUT IT'S ILLUSTRATIVE OF HOW A COURT LOOKED AT THE DECISIONS MADE BY THE PLAN SPONSOR.

SO EDISON SPONSORED A 401 K PLAN WITH A MENU OF INVESTMENT OPTIONS THAT INCLUDED MUTUAL FUNDS AND RELYING SOLELY ON THE ADVICE OF ITS INVESTMENT ADVISOR, EDISON INCLUDED THREE RETAIL CLASS MUTUAL FUNDS IN THE PLAN'S MENU IN 1999 AND 2002.

ALL THREE OF WHICH WERE AVAILABLE IN CHEAPER INSTITUTIONAL CLASS SHARES WITH THE SAME FEATURES.

THE PLAN PARTICIPANTS SUED [INAUDIBLE] AND FOR BREACH OF FIDUCIARY DUTY, CHALLENGING ITS INVESTMENT SELECTIONS AS IMPRUDENT AND ON APPEAL, THE NINTH CIRCUIT AFFIRMED THE TRIAL COURT'S RULING THAT, WITH ONE EXCEPTIONS, THE FIDUCIARIES ACTED PRUDENTLY.

[00:55:09]

IN OTHER WORDS, IT DIDN'T HAVE ANY DOCUMENTATION, WHICH IS, AGAIN, REALLY IMPORTANT.

AGAIN, SOME OF THE PROCEDURAL PROCESS AND DOCUMENTATION IS VERY IMPORTANT.

AND IT WASN'T RELIEVED OF ITS FIDUCIARY DUTY TO PRUDENTLY SELECT AND MONITOR INVESTMENTS BY ERISA SECTION 404 C BECAUSE THE LOSSES HERE WERE THE RESULT OF ITS DECISIONS, NOT THE PARTICIPANTS DECISIONS.

AND THE NINTH CIRCUIT ALSO AGREED WITH THE DISTRICT COURT THAT THE CLAIMS REGARDING THE THREE RETAIL CLASS FUNDS ADDED IN 1999 WERE TIME BARRED, CONCLUDING THAT THE INITIAL SELECTION STARTS ERISA'S SIX YEAR STATUTE OF LIMITATIONS.

BUT ON APPEAL, THE SUPREME COURT DISAGREED, CONCLUDING THAT THE STATUTE OF LIMITATIONS ON THE DUTY WAS ON THE DUTY TO MONITOR, NOT ON THE INITIAL SELECTION, AND THAT THE CLAIM WAS THEREFORE NOT WAS THEREFORE TIMELY.

IF THERE WAS A CONTINUING BREACH OF THE DUTY TO MONITOR WITHIN SIX YEARS OF THE SUIT.

SO THE LESSONS FROM THIS, THIS IS A GREAT CASE.

I MEAN, IN TERMS OF IT REALLY ILLUSTRATES THESE ISSUES VERY WELL.

THE LESSONS FROM THIS CASE ARE PRETTY CLEAR. THERE'S AN ONGOING DUTY TO PRUDENTLY MONITOR INVESTMENTS.

AND AGAIN PROCESS AND DOCUMENTATION ARE KEY.

SO THE KEY TAKEAWAYS HERE ARE TO BE PREPARED.

REVIEW AREAS TARGETED IN THESE LAWSUITS. POOR INVESTMENT CHOICES.

POORLY PERFORMING HIGH COST FUNDS WHEN BETTER PERFORMING LOWER COST ONES ARE AVAILABLE.

EXCESSIVE RECORD KEEPING FEES. FAILURE TO FOLLOW PLAN DOCUMENTS.

POOR ADMINISTRATION. INAPPROPRIATE USE OF PLAN ASSETS.

THESE ARE ALL THINGS TO REVIEW AND BE AWARE OF.

SO BRIEFLY ON THIS SLIDE MENTIONED THAT FIDUCIARY LIABILITY INSURANCE, MANY PLAN SPONSORS ATTEMPT TO MITIGATE PERSONAL LIABILITY RISK TO PLAN FIDUCIARIES BY PURCHASING FIDUCIARY LIABILITY INSURANCE.

SO SOMETHING TO CONSIDER. AND FINALLY, LET'S TALK A LITTLE BIT ABOUT THE ANNUAL REVIEW PROCESS.

SO FIRST IS THE PLAN DOCUMENT COMPLIANCE. AGAIN THIS IS PROBABLY SOMETHING TO DELEGATE PLAN DOCUMENT.

NONETHELESS PLAN DOCUMENT COMPLIANCE IS A FIDUCIARY FUNCTION.

AND YOU'VE ENGAGED IN POWER TO PROVIDE AND MAINTAIN THE PLAN DOCUMENTS FOR THE PLANS.

AND THE EMPOWER USES WHAT'S CALLED AN IRS PRE-APPROVED PLAN FOR THE 401 A PLAN, AND IT HAS TO GET APPROVAL OF THAT EVERY SIX YEARS, UPDATE IT AND GET APPROVAL.

AND THE 457 PLAN IS A DOESN'T HAVE THE SAME PROCESS.

BUT AGAIN THEY'RE MAINTAINING IT FOR YOU. THEY'VE AGREED TO MAINTAIN THAT PLAN FOR YOU, PLAN DOCUMENT FOR YOU.

AND I BELIEVE THE TRANSITION FROM MISSION SQUARES PLAN DOCUMENTS ONTO EMPOWERS PLAN DOCUMENTS HAS BEEN COMPLETED.

SO GOING FORWARD, BEST PRACTICES ARE FAMILIAR, SO FAMILIARIZE YOURSELF WITH THE PLAN TERMS. DOCUMENT ANY DECISIONS YOU MAKE REGARDING PLAN INTERPRETATION IN REGULATIONS, POLICIES, PROCEDURES.

CORRECT ANY PLAN ERRORS UNDER THE IRS CORRECTION PROCEDURES, AND MAKE SURE THE PLAN IS UPDATED ON A REGULARLY SCHEDULED BASIS BY. IN THE CASE OF THE 401 A PLAN, YOU GOT TO ADOPT IT EVERY TIME THEY THE PROVIDER GETS IRS APPROVAL, THEN PLAN SPONSORS ADOPTING EMPLOYERS HAVE TO ADOPT IT.

[01:00:06]

THEY MADE A LOT OF CHANGES TO THE RULES GOVERNING THESE TYPES OF PLANS, AND SOME OF THOSE CHANGES ARE ALREADY EFFECTIVE, BUT THE PLANS DON'T NEED TO BE AMENDED UNTIL THE END OF, I THINK THE DEADLINE IS THE END OF 2029 FOR GOVERNMENTAL PLANS.

SO AS PART OF THE ANNUAL REVIEW PROCESS, IT'S IMPORTANT TO REVIEW BEST PRACTICES, ADOPT THOSE REASONABLE AND APPROPRIATE FOR THE PLAN, REVIEW VENDOR PERFORMANCE, REVIEW COMPLIANCE WITH STATE AND FEDERAL LAW.

REVIEW PARTICIPANT COMMUNICATIONS TO ENSURE THEY'RE REASONABLE AND APPROPRIATE, AND REVIEW WITH COUNCIL ANY AREAS OF RISK, LITIGATION OR LITIGATION EXPOSURE TO BE ADDRESSED.

AND SOME OVERALL CONSIDERATIONS. WE HAVE A QUESTION.

OH, PLEASE GO AHEAD. YEAH. YEAH. ON THE PREVIOUS SLIDE, THE REVIEW WITH COUNSEL IN TERMS OF RISK I THINK IT WAS THE FINAL ONE ON THE PREVIOUS SLIDE. IS THAT PART OF TODAY'S REVIEW OR WOULD THAT BE ON A SEPARATE AGENDA? THAT IS NOT PART OF TODAY'S REVIEW. THAT WOULD BE PART OF AN ANNUAL REVIEW.

AND WHEN MIGHT WE ANTICIPATE HAVING THAT ANNUAL REVIEW THIS YEAR? I THINK WE DON'T HAVE A DATE FOR DO WE HAVE A DATE FOR DOING THAT IN NOVEMBER? WHEN YOU TALK TOO, I CAN'T HEAR YOU. OKAY. I THINK NOVEMBER I DON'T HAVE AN EXACT DATE PICKED YET, BUT I THINK THAT'S WHEN WE WOULD. THAT'S OKAY. SO SO FALL I THINK IS FINE.

FALL. PERFECT. THANK YOU. I GUESS TO FOLLOW ON THAT.

SO IS TODAY. I THOUGHT TODAY WAS ANNUAL. HOW OFTEN WILL WE HAVE WE DECIDED TO REVIEW IF THERE'S AN ANNUAL IN NOVEMBER AND WE'RE REVIEWING SOMETHING TODAY? SO CAN YOU JUST TELL ME THE DIFFERENCE BETWEEN.

YEAH. MY UNDERSTANDING. CAN YOU HEAR ME? MY UNDERSTANDING OF WHAT YOU'RE DOING TODAY IS REVIEWING THE PLAN INVESTMENT LINEUP WITH EMPOWER.

CORRECT. AND THEN WHAT MR. BERNARD IS PRESENTING IS REALLY FIDUCIARY TRAINING.

JUST SO THAT THE BOARD UNDERSTANDS THAT AS OF NOW, SINCE YOU HAVEN'T DELEGATED THIS FIDUCIARY RESPONSIBILITY TO STAFF THAT THAT YOU KNOW, YOU UNDERSTAND EXACTLY WHAT YOUR OBLIGATIONS ARE.

SO WE DO AN ANNUAL IN NOVEMBER. AND THEN HOW OFTEN DO WE DO WHAT WE'RE DOING LATER TODAY INVESTMENT REVIEW.

SO THE INVESTMENT REVIEW IS GOING TO HAPPEN TWICE A YEAR.

THANK YOU. YEP. AWESOME. I THINK THESE SLIDES ARE GREAT.

AND THEY'D BE REALLY HELPFUL FOR WHEN WE DO THE ANNUAL REVIEW IN THE FALL.

SO IT MIGHT BE GOOD FOR US TO JUST MAKE SURE THAT WE HAVE ACCESS TO THESE SLIDES PRIOR TO THAT REVIEW.

THE SLIDES ARE CURRENTLY BEING PRINTED. YOU SHOULD HAVE THEM. THAT'S GREAT TOO. BUT ALSO MAYBE JUST REMIND US ABOUT THESE SLIDES IN THE FALL WOULD BE HELPFUL.

THANK YOU. AND WHILE WE'RE ASKING QUESTIONS I KIND OF HAVE ONE TOO.

GOING BACK. I'M NOT ASKING YOU TO CHANGE SLIDES, BUT YOU MENTIONED.

THANK YOU. FIDUCIARY LIABILITY INSURANCE.

AND MY EARS PERKED UP, BUT I DON'T KNOW IF WE HAVE THAT OR NOT.

MY UNDERSTANDING, AND I DON'T WANT TO SPEAK FOR THE RISK DEPARTMENT, BUT MY UNDERSTANDING IS WE DO NOT CURRENTLY HAVE THAT THAT WE ARE SELF-INSURED FOR THIS.

SO IT'S SOMETHING THAT RISK CAN LOOK INTO. OKAY.

SOMETHING TO THINK ABOUT. ALL RIGHT. THANK YOU. [INAUDIBLE] GREAT QUESTIONS.

THANK YOU. ON THE LIABILITY INSURANCE IF EAST BAY REGIONAL PARK DISTRICT WERE TO BE SUED OVER THE PLAN CAN WE ALSO BE SUED AS INDIVIDUALS? REALLY? GOOD QUESTION.

SO, YES, IT'S POSSIBLE UNDER YOU KNOW, UNDER ERISA AND THE COMMON LAW RULES. SO CERTAINLY INDIVIDUAL LIABILITY FIDUCIARY LIABILITY IS A POSSIBILITY

[01:05:04]

SO DO WE HAVE SOME TYPE OF DIRECTORS LIABILITY INSURANCE? DIRECTOR ECHOLS. I'M NOT EXACTLY SURE. WE ARE PART OF A RISK POOL, AND WE HAVE VARIOUS TYPES OF ALSO INSURANCE, AND I DON'T HAVE THAT PLAN INFORMATION IN FRONT OF ME.

I DO THINK THAT ON THIS TOPIC OF DIRECTORS HAVING THIS PARTICULAR ROLE IN THE DISTRICT, I THINK IT WOULD BE GOOD FOR MAYBE, MR. BERNARD TO EXPLAIN WHAT YOUR OPTIONS ARE, BECAUSE IT ISN'T A REQUIREMENT THAT THE BOARD OF DIRECTORS TAKE ON THIS FUNCTION.

I THINK IT WOULD BE IMPORTANT FOR STAFF TO COME UP WITH SOME RECOMMENDATIONS TO THE EXTENT THAT THIS IS A SIGNIFICANT INVESTMENT OF TIME, I DON'T KNOW THAT YOU WANT TO SPEND THE AMOUNT OF TIME THAT IT TAKES TO BE THE PLAN FIDUCIARY.

IF YOU'RE DOING THIS RIGHT, IT'S A SIGNIFICANT INVESTMENT OF TIME.

IT'S ALSO SOMETHING THAT YOU CAN DELEGATE. AND AS MR. BERNARD SAID, YOU HAVE A FIDUCIARY RESPONSIBILITY TO DELEGATE PRUDENTLY AND APPROPRIATELY.

BUT WE CERTAINLY HAVE STAFF HERE AT THE DISTRICT THAT MEET ALL OF THE DIFFERENT REQUIREMENTS.

SO COULD YOU TALK A LITTLE BIT MORE ABOUT WHAT THOSE OPTIONS MIGHT BE? SURE, SURE. YEAH. AND THAT'S, YOU KNOW, FREQUENTLY.

YEAH. THERE'S NO REQUIREMENT THAT THE, YOU KNOW, ALTHOUGH THE BOARD ULTIMATELY MAY BE DELEGATING AND MAY, YOU KNOW, ULTIMATELY BE RESPONSIBLE. YOU CAN DELEGATE.

IT CAN DELEGATE THE RESPONSIBILITIES FOR PLAN ADMINISTRATION, MANAGEMENT OF THE PLAN'S ASSETS, ETC. TO, FOR EXAMPLE, A COMMITTEE. AND YEAH, AGAIN, IN SELECTING THE MEMBERSHIP OF THE COMMITTEE AND DECIDING WHO SHOULD BE ON THAT COMMITTEE IT'S IMPORTANT TO CONSIDER THINGS LIKE EXPERIENCE BACKGROUND THAT THOSE PEOPLE HAVE IN INVESTMENTS OR LAW OR HR. AND SO TYPICALLY THERE'S A MIX OF PEOPLE ON THESE TYPES OF COMMITTEES THAT, BRING TO THE TABLE THOSE TYPES OF EXPERIENCE.

BUT, YOU KNOW, ULTIMATELY BOARDS HAVE A LOT YOU HAVE A LOT OF IMPORTANT BUSINESS TO ATTEND TO AND DECIDE THINGS, ISSUES THAT ARE IMPORTANT TO THE PARKS AND THE COMMUNITY AND THINGS LIKE THAT.

SO SOMETIMES IT'S A MATTER OF BANDWIDTH. IT IS A BIG RESPONSIBILITY TO, YOU KNOW, BE A PLAN FIDUCIARY. AND SO THAT TAKES TIME. SO, YOU KNOW, THAT'S CERTAINLY SOMETHING TO CONSIDER.

YOU KNOW, AND IF I MIGHT JUST JUMP IN THERE, I'LL JUST AND I THINK I'VE THIS HAS BEEN A COUPLE OF YEARS, I THINK SINCE WE'VE TALKED ABOUT THIS. AND OBVIOUSLY WE'VE GOT SOME NEW BOARD MEMBERS ON HERE.

BUT I THINK EVERY OTHER PLACE THAT ALL OF US HAVE WORKED.

THE ELECTED BODY HAS DELEGATED THAT TO A COMMITTEE.

SO IF THAT'S OF INTEREST TO THE BOARD, WE'RE HAPPY TO TALK TO YOU OFFLINE ABOUT THAT AND SOMETHING THAT, YOU KNOW, WE CAN WORK ON BRINGING A PROPOSAL FORWARD IN THE FUTURE.

BUT I JUST WANTED TO JUST KIND OF REINFORCE THAT, THAT IT'S PRETTY COMMON PRACTICE.

THANK YOU. JUST. YEAH. I WAS WONDERING, YOU HAD MENTIONED A COUPLE OF TIMES THAT A FIDUCIARY COULD, IN FACT, GET INTO A SITUATION OF A CONFLICT OF INTEREST.

CAN YOU GIVE ME AN EXAMPLE OR TWO OF HOW WE AS BOARD MEMBERS COULD IN FACT, DO THAT? YEAH I CAN. I COULD. I CAN GIVE YOU AN EXAMPLE.

SO LET'S JUST SAY THERE'S AN INVESTMENT OPTION AND THE FIDUCIARY IS CAN FINANCIALLY BENEFIT FROM INVESTMENTS IN THAT OPTION IN THAT, SAY, A MUTUAL FUND OR SOMETHING WHERE THE FIDUCIARY HAS A FINANCIAL STAKE WOULD PROBABLY BE THE BEST EXAMPLE.

WHEREAS THEY SO IN OTHER WORDS, IF I SELECT A SERVICE PROVIDER WHO IS, YOU KNOW, WHO I OWN OR A RELATIVE OF MINE OWNS AN INTEREST IN, IT'S LIKE ANY OTHER CONFLICT OF INTEREST.

IF I DIRECT OR INVOLVED IN DECIDING TO USE THAT SERVICE PROVIDER OR INVEST IN THAT INVESTMENT, THAT WOULD BE A GOOD EXAMPLE OF A CONFLICT. THANK YOU.

[01:10:02]

JUST TO SEE HOW THIS IS DONE, BECAUSE I'M NOT AS FAMILIAR WITH THIS.

SO I WOULD APPRECIATE BEING ABLE TO SEE SOME OF THOSE EXAMPLES, AS YOU MENTIONED, THAT, YOU KNOW, OTHER AGENCIES YOU'VE WORKED FOR DON'T HAVE THIS SITUATION.

SO I THINK THAT WOULD BE HELPFUL. AND THEN IN TERMS OF CONFLICT, YOU KNOW, I NOTICED GOING THROUGH THE INVESTMENTS PROVIDED BY EMPOWER, IT DOES MENTION, YOU KNOW, THE TOP TEN HOLDINGS AND SOME OF THE INVESTMENTS.

COULD A POTENTIAL CONFLICT BE, YOU KNOW, SAY YOU KNOW, ONE OF US DOES DIRECT WORK FOR SOME OF THE COMPANIES LISTED HERE IN TERMS OF EMPLOYMENT AND OR WITH A COMPETITOR THAT'S LISTED HERE.

COULD THAT BE A POTENTIAL CONFLICT? IT COULD, I THINK.

AND TO BE MORE CLEAR, THE NATURE OF THE WORK IS PRETTY HIGH LEVEL STRATEGIC WORK THAT ENDS UP BEING, YOU KNOW, RECOMMENDATIONS TO THE CEO AND EXECUTIVE TEAM.

REALLY GOOD QUESTION. SO YEAH, MUTUAL FUNDS ARE KIND OF THEY'RE UNIQUE IN THAT, YOU KNOW, THEY HAVE A BUNCH OF HOLDINGS, YOU KNOW, THEY HOLD, YOU KNOW DEPENDING UPON IF IT'S LIKE A LARGE CAP OR SMALL CAP FUND, SOMETHING LIKE THEY'RE GOING TO HAVE INVESTMENTS IN COMPANIES. AND THERE MAY BE YOU KNOW, SOMEBODY WORKS FOR ONE OF THE COMPANIES.

BUT THAT WOULD BE VERY INDIRECT, RIGHT? LIKE, IN OTHER WORDS, THE DECISION TO INVEST IN A PARTICULAR MUTUAL FUND. DOESN'T NECESSARILY. WELL, IT CAN IT CAN TAKE INTO ACCOUNT THE UNDERLYING INVESTMENTS.

BUT GENERALLY SPEAKING YOU AS THE RETIREMENT PLAN DOESN'T REALLY HAVE ANY SOMETIMES IT CAN TRY TO INFLUENCE, BUT IT DOESN'T REALLY HAVE ANY CONTROL OVER THE UNDERLYING INVESTMENTS OF THE FUND.

THAT MAKES SENSE. YEAH, I THINK IT DOES. THANK YOU.

YOU'RE WELCOME. I JUST WANT TO ADD SOME CONTEXT, SINCE THE ISSUE CAME UP OF ALTERNATIVES, WHEN THIS WAS PRESENTED TO US A 2 OR 3 YEARS AGO, THERE WAS A PROPOSAL TO CREATE A FIDUCIARY COMMITTEE.

NOT THE COMMITTEE THAT WE ALREADY HAVE. IT WOULD BE A NEWLY CONSTITUTED COMMITTEE.

THE PROPOSAL CAME, AND I'M SORRY, LYNNE, I DON'T REMEMBER IF IT WAS IN-HOUSE OR FROM HANSON BRIDGETT, BUT WE GOT A LAWYER GENERATED PROPOSAL TO CREATE A FIDUCIARY COMMITTEE.

THE BOTTOM LINE WAS THE MEMBERSHIP OF IT DESCRIBED WAS TOP HEAVY WITH EXISTING MANAGEMENT AND ON ON THE THEORY THAT AS EDWARD DESCRIBED, YOU WANT FOLKS TO HAVE SOME BASIC QUALIFICATIONS TO ACT AS FIDUCIARIES. AND CERTAINLY UPPER MANAGEMENT IN THIS ORGANIZATION ALL HAVE THOSE QUALIFICATIONS.

OUR UNION, 2428 OBJECTED TO THAT. THEY OBJECTED TO A TOP HEAVY MANAGEMENT REPRESENTATION ON THIS NEWLY CREATED FIDUCIARY COMMITTEE.

I AGREED WITH 2428 ON THAT. I THOUGHT IT WAS CERTAINLY POSSIBLE FOR US TO DEVELOP A MEMBERSHIP THAT HAD PEOPLE THAT HAD THE REQUISITE QUALIFICATIONS OR EXPERIENCE TO SERVE AS FIDUCIARIES THAT WEREN'T NECESSARILY JUST OUT OF OUR TOP MANAGEMENT INCLUDING SOME OF THE RETIREES THEMSELVES, OF COURSE, THAT HAVE THOSE QUALIFICATIONS AND FIDUCIARIES.

SO AT THE TIME I SUPPORTED CREATING A THIS ALTERNATIVE FIDUCIARY COMMITTEE.

INSTEAD OF US DOING ALL THIS, THOUGH, I'VE NEVER HAD ANY RESERVATIONS ABOUT US DOING IT EITHER.

I JUST THOUGHT IT WAS A BETTER WAY, MORE FOCUSED WAY TO HANDLE THE ISSUE AS EDWARD HAS DESCRIBED, FOR INSTANCE, IN HAVING THAT KIND OF FIDUCIARY COMMITTEE TAKE IT OVER.

SO IT WAS PRESENTED. IT WAS CERTAINLY POSSIBLE.

I THINK IT JUST GOT DROPPED BECAUSE OF THE 24 28 OBJECTIONS TO THE MANAGEMENT ORIENTATION THAT IT HAD AT THE TIME.

I WOULD ENJOY REVISITING THAT ISSUE AND HAVING THE POSSIBILITY OF US FINDING QUALIFIED PEOPLE WHO WEREN'T NECESSARILY JUST RIGHT OUT OF OUR TOP MANAGEMENT SO WE WOULDN'T GET OUR, OWN EMPLOYEES NERVOUS ABOUT IT.

SO THAT'S THE CONTEXT I'D LIKE TO LEAVE IT IN.

AND IF I CAN ADD. THANK YOU SO MUCH DIRECTOR COFFEY.

I DON'T KNOW THAT I WAS HERE FOR ALL OF THAT.

IT WAS RIGHT AROUND THE TIME THAT I STARTED WITH THE DISTRICT. HOWEVER I DO THINK THAT THE OTHER THING THAT THE GENERAL MANAGER AND LEGAL CAN WORK ALONGSIDE WITH THEM TO BRING YOU IS SOME KIND OF A STRUCTURE THAT KEEPS THE CURRENT ADVISORY COMMITTEE.

[01:15:07]

KIND OF THE REASON I THINK THAT YOU HAVE A RETIREE AND THAT YOU HAVE YOUR LABOR PARTNERS ON THAT COMMITTEE, IS BECAUSE THEY ARE CONSIDERED TO HAVE EXPERTISE IN DOING OUTREACH TO THEIR MEMBERS TO EXPLAIN THE BENEFITS, POTENTIALLY, OF BEING INVOLVED IN THE PLAN. BUT THEY I KNOW AND I THINK DEBORAH SPAULDING WAS ON THE COMMITTEE WHEN THEY EXPLORED THE IDEA OF DO THEY WANT TO BE A FIDUCIARY? AND THEY CAME OUT VERY ADAMANTLY AGAINST WANTING TO TAKE ON ANY OF THAT KIND OF RESPONSIBILITY.

BUT THEY, I THINK, ARE VERY MUCH INTERESTED IN GROWING THE PLAN AND GETTING THEIR MEMBERS TO UNDERSTAND, YOU KNOW, WHAT THE BENEFITS OF IT ARE. SO THERE'S A WAY TO KIND OF DICE THIS UP THAT KEEPS EVERYBODY HAPPY HOPEFULLY.

YEAH. THAT'S ALL CORRECT. THAT WAS PART OF THE CONTEXT.

THANK YOU. AWESOME.

I'LL JUST ADD YEAH I AGREE IT WOULD BE GOOD TO GET THAT GOING AGAIN AND GET A RECOMMENDATION FROM STAFF ON HOW TO MANAGE IT IN A WAY THAT AFSCME'S NEEDS ARE SATISFIED IN TERMS OF, YOU KNOW, BEING I THINK THEY'RE CURRENTLY AN ADVISOR, BUT, YOU KNOW, BEING ABLE TO DO THAT OUTREACH WORK WITH THEIR MEMBERS AND AT THE SAME TIME, YOU KNOW, HAVE THE EXPERTS WE NEED SO THAT THE BOARD CAN PRUDENTLY DELEGATE THIS WORK TO, TO AN APPROPRIATE COMMITTEE.

YEAH. SO SO I WOULD DEFINITELY SUPPORT MOVING IN THAT DIRECTION.

ELIZABETH, YOU HELPED INSPIRE MY NEXT QUESTION.

SO THINKING ABOUT, YOU KNOW AFSCME 2428 AND THIS IDEA OF THE FIDUCIARY COMMITTEE, IS IT POSSIBLE FOR IT TO BE STRUCTURED IN SUCH A WAY WHERE AFSCME 2428 COULD ALSO HIRE THEIR OWN OUTSIDE? I GUESS EXPERT OR AGENCY TO BE A PART OF THE FIDUCIARY COMMITTEE AND THAT THAT OUTSIDE PERSON COULD ACT ON BEHALF AND WITH GUIDANCE FROM AFSCME 2428. IS THAT A POSSIBILITY IN TERMS OF THIS TYPE OF ORGANIZATIONAL STRUCTURE SO THAT THEY CAN FEEL LIKE THEY HAVE REPRESENTATION, BUT THAT THEY HAVE ALSO HIRED SOMEONE WITH SOME BACKGROUND AND EXPERTISE ON THESE ON THIS TYPE OF PLAN AND THESE TYPES OF RECOMMENDATIONS.

GOOD QUESTION. IT'S OKAY IF YOU WANT TO GET BACK TO US ON THAT QUESTION.

NO, NO, NO, I CAN ANSWER THAT. WELL, OKAY. SO YEAH.

SO INTERESTING. I MEAN, BUT IT'S A REALLY GOOD QUESTION BECAUSE IT KIND OF FOCUSES ON THE PURPOSE OF A FIDUCIARY COMMITTEE.

LIKE IT'S LIKE A RETIREMENT COMMITTEE, LIKE THE PURPOSE AND, THEIR ROLE.

RIGHT. SO YOU HAVE PEOPLE WHO ARE LIKE THERE.

YOU MIGHT HAVE A JOINT LIKE MANAGEMENT YOU KNOW, LABOR TYPE OF COMPOSITION AND A COMMITTEE LIKE THIS.

AND SO IN SOME CASES, STATUTES, THERE ARE STATUTES FOR VARIOUS UNDER WHICH VARIOUS ORGANIZATIONS AGENCIES ARE ESTABLISHED THAT MAY CREATE SOMETHING LIKE THAT, RIGHT? BUT IN THAT ROLE, THEY'RE NOT THEY'RE SUPPOSED TO BE REPRESENTING THE PLAN PARTICIPANTS.

THAT'S THE RIGHT. THEY'RE NOT REPRESENTING THE UNIONS.

THEY'RE REPRESENTING THE PLAN. THERE'S NOTHING WRONG WITH THE. IN FACT TO TAKE IT TO ITS LOGICAL EXTREME, LIKE LET'S SAY, FOR EXAMPLE PUBLIC, YOU KNOW, LIKE PERS OR A COUNTY RETIREMENT SYSTEM.

THOSE RETIREMENT BOARD S HAVE THEIR OWN COUNCIL.

THEY HAVE THEIR OWN FIDUCIARY COUNCIL, ACTUALLY.

SO, YOU KNOW, THEY, YOU KNOW, THEY CAN, BUT THEY WOULD BE RETAINING SOMEBODY LIKE, LIKE YOU'RE DESCRIBING SOME ADVISOR OR SOMETHING LIKE THAT WOULD BE RETAINING THEM AS THE COMMITTEE WOULD BE RETAINING THEM.

RIGHT. THEY DON'T REPRESENT ALTHOUGH THEY ARE SELECTED FOR MEMBERSHIP BASED ON THEIR MEMBERSHIP.

AND SOMETIMES WHERE YOU HAVE LIKE A WHERE THE MEMBERSHIP IS BASED ON, YOU KNOW BEING A MEMBER, YOU KNOW, SOMEONE YOU HAVE A MEMBER FROM EACH BARGAINING UNIT OR SOMETHING LIKE THAT.

RIGHT? THAT WOULD BE THEY DON'T REPRESENT THE UNIONS IN THAT CONTEXT.

[01:20:06]

RIGHT? SO IT'S BUT I THINK IT WOULD BE THE COMMITTEE THAT WOULD RETAIN SOMEBODY LIKE THAT, I GUESS IS WHAT I'M GETTING AT. IT WOULDN'T BE THE UNION WOULD RETAIN SOMEBODY.

IT WOULD BE THE COMMITTEE WOULD RETAIN SOMEBODY TO ADVISE THEM, IF THAT MAKES SENSE.

I HAVE ANOTHER FOLLOW UP TO THAT REAL QUICK WITH PLAN PARTICIPANTS THAT THE PLAN PARTICIPANTS AREN'T ALWAYS CURRENT EMPLOYEES OF THE PARK DISTRICT .

IT COULD BE AN EMPLOYEE WHO WAS WITH THE PARK DISTRICT AND THEN MOVED ON TO A DIFFERENT ORGANIZATION.

IT COULD ALSO BE A RETIREE FROM THE PARK DISTRICT .

SO PLAN PARTICIPANTS AREN'T ALWAYS CURRENT EMPLOYEES.

CORRECT? CORRECT. AND SOMETIMES ON THESE COMMITTEES, YOU KNOW, YOU HAVE A REP, YOU KNOW, A RETIREE REPRESENTATIVE.

I THINK IF WE DON'T HAVE ANY MORE QUESTIONS ABOUT THIS PARTICULAR ISSUE, ALTHOUGH I JUST WANT TO INSERT HERE MY OWN OPINION THAT I INTUITIVELY FEEL LIKE 2428 WOULD HAVE MEMBERS THAT WOULD BE WELL QUALIFIED TO BE ON THIS.

I JUST KIND OF HAVE THAT FEELING, SO I DON'T WORRY ABOUT THAT.

SO DIRECTOR ESPAÑA, IS THIS ABOUT THIS WHOLE ISSUE OR YOU HAVE ANOTHER.

YES. OKAY. ALL RIGHT. WELL, I GUESS WE CAN TAKE ONE MORE.

AND THEN I WANT TO GIVE YOU AN OPPORTUNITY TO FINISH UP, TOO.

YEAH. WELL, YEAH. ACTUALLY, I THINK WE'RE AT THE QUESTION.

WE'RE ON THE QUESTION SLIDE. SO THIS IS GREAT.

OH OKAY. EXCELLENT. SO THIS IS A COMMENT I FEEL LIKE WE SHOULD HAVE HAD THESE SLIDES PRIOR TO YOUR PRESENTATION.

THERE'S A LOT OF INFORMATION HERE TO DIGEST. AND THEN THERE SEEMS TO BE TWO CONVERSATIONS HAPPENING RIGHT NOW.

JUST AS FAR AS YOUR PRESENTATION BUT THEN THE ACTUAL STRUCTURE OF HOW IT'S SET UP HERE AT THE PARK DISTRICT IN RELATIONSHIP TO WHAT YOU'RE SHARING. SO AS FAR AS IT WOULD HAVE BEEN NICE TO HAVE HAD SOME TYPE OF HISTORY OF HOW OUR STRUCTURE IS HERE AT THE PARK, BUT THEN ALSO TO HAVE THIS CONVERSATION TO ON THE SAME DAY WHEN WE'RE BEING ASKED TO ACCEPT A DEFERRED COMPENSATION PLAN INVESTMENT REPORT.

THE TIMING IS JUST OFF, BECAUSE I FEEL LIKE THERE'S SOME DEFINITELY REALLY RICH CONVERSATIONS AND SOME OPTIONS THAT EVEN OUR DIFFERENT DIRECTORS ARE PUTTING FORTH. SO THAT WAS JUST MY COMMENT ABOUT THE PRESENTATION.

JUST FELT I WAS TAKING IN A LOT OF INFORMATION WHERE I WOULD HAVE PREFERRED TO HAVE READ IT, REACHED OUT TO STAFF AND HAD SOME MORE TAILORED QUESTIONS.

BUT THEN ALSO TO HAVE HAD THAT UNDERSTANDING AND WHAT OUR OPTIONS ARE HERE MOVING FORWARD.

SO THAT WAS JUST MY COMMENT. THANK YOU. APPRECIATE IT.

ANY OTHER QUESTIONS OR ARE WE. THIS IS AWESOME.

THANK YOU VERY MUCH. AND THANK YOU VERY MUCH AS WELL ALSO.

YEAH. THANKS. ALL RIGHT. IS THERE ANYBODY. IS THERE ANYONE ELSE PRESENTING TODAY OR WILL THIS FULFILL OUR TRAINING? THERE ARE NO MORE PRESENTERS, ARE THERE? ARE THERE ANY PUBLIC COMMENTS? NO. PRESIDENT MERCURIO PUBLIC COMMENTS AND I ALREADY GAVE IN ADVANCE THE DESCRIPTION OF HOW TO GIVE A PUBLIC COMMENT.

SO OKAY, SO IF THERE ARE NO PUBLIC COMMENTS, THERE ARE NO ADDITIONAL PRESENTERS AND THERE ARE NO ADDITIONAL QUESTIONS.

I JUST SAY THANK YOU TO STAFF FOR PUTTING THIS TOGETHER.

LYNNE AND OTHERS TO COVER THIS ISSUE. THIS PROTECTS US.

THIS CREATES THE RECORD THAT WE'VE CONSIDERED AND STUDIED THESE ISSUES.

SO THE FACT THAT WE HAVE THIS MEETING AND HAVE LISTENED TO MR. BERNARD CREATES A GOOD RECORD THAT WE'RE DOING OUR JOB.

AND SO I WANT TO THANK STAFF FOR GETTING THAT DONE FOR US.

ALL RIGHT. VERY GOOD. WELL, THEN THIS SPECIAL MEETING IS ADJOURNED AT 12:29.

THANK YOU. WITH OPEN SESSION TO BEGIN SOMEWHERE AROUND 1:00.

IT WAS GREAT. SOMEWHERE AROUND. WELL, GOOD AFTERNOON AND WELCOME TO THIS REGULAR BOARD MEETING OF THE BOARD OF DIRECTORS

[ROLL CALL]

[01:25:09]

YES, AND I KNOW SHE'S THERE. HOPEFULLY SHE'LL GET ON IN JUST A MINUTE BECAUSE I'M GOING TO NEED TO ASK HER A QUESTION.

DIRECTOR ECHOLS. LEGAL COUNSEL DO YOU WANT TO JUST SKIP THIS PART OR GO BACK? I'M NOT SURE. I THINK WHEN SHE COMES ON, YOU CAN.

I CAN ASK HER THAT QUESTION. THANK YOU. SO YOU CAN MOVE TO TAKE THE ROLL.

DIRECTOR COFFEY. HERE. DIRECTOR DESCHAMBAULT.

HERE. DIRECTOR ECHOLS. DIRECTOR. WELL, THAT WASN'T DIRECTOR ESPAÑA.

HERE. DIRECTOR SANWONG. HERE. DIRECTOR WAESPI.

HERE. PRESIDENT MERCURIO. HERE. GENERAL MANAGER LANDRETH.

HERE. AND GENERAL COUNSEL BOURGAULT. HERE. OKAY.

AND THERE SHE IS. DIRECTOR ECHOLS. PRESENT. PRESENT.

THANK YOU. GREAT. I'M GOING TO ASK YOU THE STANDARD QUESTION.

DIRECTOR ECHOLS CAN YOU PLEASE CONFIRM THAT NO OTHER INDIVIDUAL 18 YEARS OLD OR OLDER WILL BE PRESENT IN THE ROOM WITH YOU AT YOUR REMOTE LOCATION? I CAN CONFIRM THAT. THANK YOU.

AND JUST A REMINDER THAT YOU SHOULD LEAVE YOUR VIDEO ON AT ALL TIMES DURING THIS MEETING.

THANK YOU. ALL RIGHT. THANK YOU. AND DIRECTOR DESCHAMBAULT WILL RECITE THE PLEDGE OF ALLEGIANCE.

PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.

ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

AND DIRECTOR COFFEY WILL READ THE LAND ACKNOWLEDGMENT .

[LAND ACKNOWLEDGEMENT]

AS WE GATHER HERE TODAY, WE, THE BOARD OF DIRECTORS , WANT TO ACKNOWLEDGE THAT ALL OF THE LANDS WITHIN THE EAST BAY REGIONAL PARK DISTRICT ARE THE ANCESTRAL LANDS OF THE EAST BAY OHLONE, BAY MIWOK AND THE NORTHERN VALLEY YAKUT, WHO ARE POLITICALLY ORGANIZED AND REPRESENTED BY A NUMBER OF THE TRIBES TODAY WE MAKE THIS RECOGNITION AS A WAY TO RESPECT AND HONOR THE INDIGENOUS PEOPLES WHO FIRST CULTIVATED AND INHABITED THIS LAND.

THE PARK DISTRICT IS COMMITTED TO IDENTIFYING WAYS TO WORK AND CONSULT WITH EAST BAY TRIBES, AS WE RECOGNIZE THAT THESE TRIBAL CITIZENS REMAIN CONNECTED TO THEIR LAND THEIR CULTURE.

THANK YOU. ALL RIGHT. THANK YOU. AND WE'LL NOW CONSIDER THE AGENDA.

[MODIFICATION OF AGENDA]

OKAY. SO I GUESS WE HAVE A SO YOU'RE GOING TO MAKE A MOTION TO WELL I'M ASKING TO HAVE TO PULL THE ITEM, THAT ITEM D, I GUESS IT IS. OKAY. SO THAT'S A MOTION.

DO WE HAVE A SECOND? OKAY. I'LL CONSIDER A SECONDING IF THAT HAPPENS, THOUGH, THEN WE HAVE PUBLIC COMMENT, AND FOLKS WHO MIGHT BE HERE FOR THAT ITEM WOULD BE WELCOME TO PROVIDE PUBLIC COMMENT.

THEN DURING THE PUBLIC COMMENT PERIOD. WE WANT IT ON THE AGENDA SO THERE CAN BE A DISCUSSION.

OKAY. WE OKAY I DON'T HEAR A I DON'T HEAR A DEFINITE SECOND TO THAT MOTION.

SO I'VE SEEN THIS HAPPEN AT OTHER PUBLIC AGENCIES. IF I SECOND THIS THEN IT'S NO LONGER ON THE AGENDA.

WHICH MEANS THAT FOLKS WHO WANT TO COMMENT, MAKE PUBLIC COMMENT COULD THEN POTENTIALLY MAKE PUBLIC COMMENT ON THIS ITEM.

IS THAT CORRECT? WELL, THERE'S STILL A PUBLIC COMMENT ON ITEMS, NOT ON THE AGENDA.

THAT'S WHAT I'M ASKING ABOUT. YEAH I UNDERSTAND.

OKAY. THAT WOULD NOT INVOLVE OUR OWN STAFF'S COMMENTS THOUGH.

I VERY MUCH WANT OUR OWN STAFF'S COMMENTS. I WOULD TEND TO AGREE WITH THAT.

IF I'M GOING TO VOTE ON THIS ONE WAY OR ANOTHER, I WANT TO KNOW IF OR WHY WE DIDN'T HAVE A MEET AND CONFER.

WHEN WILL WE SCHEDULE ONE AND ARE WE, IS THIS A DETRIMENT TO THE CIVICORP DOING THE GOOD WORK THEY DO?

[01:30:01]

I THINK THERE'S SPRING'S COMING. THERE'S LOTS OF TRAILS THAT NEED FIXING.

IT DOESN'T PRECLUDE A VOTE ON WHETHER OR NOT TO IF WE LEAVE IT ON THE AGENDA.

WE STILL GET TO VOTE ON IT, AND IF WE WANT IT OR NOT.

HEAR, HEAR. I'LL SECOND ELIZABETH'S MOTION, AND THEN WE CAN VOTE ON IT.

OKAY. ALL RIGHT, SO IS THIS A ROLL CALL VOTE, THEN? YES. OKAY. ROLL CALL. VOTE. YEAH. DIRECTOR COFFEY.

NO. DIRECTOR ECHOLS. YES. DIRECTOR WAESPI. NO.

DIRECTOR SANWONG. YES. DIRECTOR ESPAÑA. NO. DIRECTOR DESCHAMBAULT.

NO. AND PRESIDENT MERCURIO. NO. SO IT IS 1, 2, 03, 4, 5 AYES, 2 NO'S.

SO THE OTHER WAY AROUND. IT REMAINS ON THE AGENDA.

IT REMAINS ON THE AGENDA. ALL RIGHT. IT WAS FIVE NO'S.

NO, IT'S 2 NO'S. I MEAN YEAH, TWO YESES AND FIVE NO'S.

THANK YOU. EXACTLY. YES. THANK YOU. [LAUGHTER] ALL RIGHT.

WERE THERE? WERE THERE ANY OTHER REQUESTS TO MODIFY THE AGENDA? OKAY. SO WE CAN MOVE ON TO SPECIAL PRESENTATIONS.

WE DON'T HAVE ANY OF THOSE TODAY. NONE. PUBLIC COMMENTS ON ITEMS, NOT ON THE AGENDA.

[PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA]

OKAY. DO WE HAVE ANY ANNOUNCEMENTS? OH, HOLD ON JUST ONE SECOND.

THERE IS SOMEBODY IN THE ZOOM ROOM. THANK YOU. OKAY.

LET ME SEE. OKAY.

HELLO, SIR. I'M GOING TO PROMOTE YOU TO PANELIST SO THAT YOU CAN MAKE A PUBLIC COMMENT ON AN ITEM THAT IS NOT ON THE AGENDA, AND YOU ARE NOW HERE. MR. DYSON. IS THIS AN ITEM NOT ON THE AGENDA? CAN YOU HEAR ME? YES, SIR. IS THIS AN ITEM NOT ON THE AGENDA? I'M SORRY. IS THIS AN ITEM THAT IS NOT ON THE AGENDA? IT'S BEEN ON THE AGENDA BEFORE. OKAY, BUT YOU'RE COMMENTING ON AN ITEM THAT IS NOT ON THIS CURRENT AGENDA.

I JUST WANT TO MAKE SURE. YEAH. I DIDN'T BOTHER EMAILING YOU IN ADVANCE.

OKAY, GREAT. CAN YOU SEE MY FACE, SIR? NO, I CAN SEE THE PICTURE OF THE BOARD.

OKAY, I'M GOING TO I WAS HOPING YOU COULD SEE ME.

I'M GOING TO SET THE TIMER FOR THREE MINUTES, AND I'M GOING TO GO OFF CAMERA.

AND THEN WHEN I COME BACK ON, IT'LL BE 30 SECONDS.

OKAY. OKAY. THERE YOU GO. YOU HAVE TIME. ALL RIGHT.

THANK YOU. THANK YOU FOR HAVING ME. I JUST WANTED TO COMMENT AGAIN REGARDING THE INCIDENT, WHICH I'M SURE I'M SURE YOU'RE ALL FAMILIAR WITH.

WHEN THE STAFF WENT INTO MY CAMPSITE, TOOK MY TENT, THREW IT IN A TRUCK, DROVE IT AWAY, DID WHATEVER THEY DID, CAME BACK, LITERALLY CHUCKED IT BACK INTO MY CAMPSITE AND DROVE AWAY.

AND I ARRIVED BACK TO MY BASICALLY DESTROYED CAMPSITE, BROKEN TENT, ETC.

AND SO ANYWAYS, THE PROGRESS THAT WE'VE MADE SO FAR IS YOU HAVE AGREED TO PURCHASE A REPLACEMENT TENT FOR THE DESTROYED TENT.

BUT YOU PUT THE CONTINGENCY ON IT THAT IF I ACCEPT IT I AM SIGNING YOUR RELEASE. AND BY DOING THAT, YOU'VE INVOKED WHAT'S CALLED ECONOMIC DISTRESS, IN THAT YOU'RE ESSENTIALLY HOLDING MY REIMBURSEMENT HOSTAGE FACING ON RELEASE OF LIABILITIES ON YOUR BEHALF. USUALLY WHEN YOU WANT A RELEASE OF LIABILITIES, THERE'S SOME COMPENSATION ASSOCIATED FOR THE RELEASE OF LIABILITIES.

YOU REFUSE TO ADDRESS THAT. SO WHAT I'VE ASKED FOR, AT LEAST, IS A REISSUE OF A CHECK WITH NO CONTINGENCIES, THEREBY REMOVING THE ECONOMIC DISTRESS.

I ASKED FOR THAT AT THE LAST TIME I SPOKE WITH YOU ALL.

I HAVEN'T HEARD ANYTHING. I'M ASKING IT AGAIN.

I THINK IT'S FAIR. I DON'T THINK YOUR CONTINGENCIES WITH NO COMPENSATION IS FAIR.

SO PLEASE DO THE RIGHT THING. BEHAVE IN A FAIR MANNER.

YOU HAVE A CHOICE. THANK YOU. THANK YOU SIR. ALL RIGHT.

[01:35:06]

NO ANNOUNCEMENTS. AND CONSENT CALENDAR. ARE THERE ANY QUESTIONS FROM BOARD MEMBERS

[CONSENT CALENDAR]

DIRECTOR ECHOLS. AYE. DIRECTOR WAESPI. AYE. DIRECTOR SANWONG.

YES. DIRECTOR ESPAÑA. AYE. DIRECTOR DESCHAMBAULT.

AYE. AND PRESIDENT MERCURIO. AYE. YES. UNANIMOUSLY APPROVED.

OKAY, GREAT. THANK YOU SO MUCH. AND NOW WE'RE ON TO ITEMS FOR CONSIDERATION HERE.

[ACQUISITION, STEWARDSHIP AND DEVELOPMENT DIVISION]

SO WE HAVE A PRESENTATION HERE TODAY. ALL RIGHT.

GOOD AFTERNOON. I'M NOT SURE IF I'M VISIBLE, I BELIEVE I AM.

ONE MOMENT. BEAR WITH ME WHILE I SHARE MY SCREEN.

THANK YOU. I DON'T KNOW WHAT YOU'RE TRYING TO DIRECT ME TO DO. APOLOGIES.

AND CAN YOU DO ME A FAVOR AND MAYBE PULL THE MIC IN A LITTLE CLOSER, JUST TO BE SURE? ABSOLUTELY. THAT'S GREAT. THANK YOU. THANKS FOR BEARING WITH ME.

GOOD AFTERNOON. I'M RACHEL LAMB, REAL ESTATE MANAGER IN THE LAND ACQUISITION DEPARTMENT. TODAY, WE ARE SEEKING AUTHORIZATION TO ENTER INTO A 25 YEAR LICENSE WITH THE CITY OF RICHMOND TO CONSTRUCT AND OPERATE A SEGMENT OF THE SAN FRANCISCO BAY TRAIL NEAR RICHMOND'S POINT MOLATE BEACH PARK . LET'S SEE. TO ORIENT US, THIS IS THE POINT SAN PABLO PENINSULA.

THE LICENSING QUESTION IS THIS VERY SHORT LITTLE SEGMENT HERE IN YELLOW.

IT'S ABOUT 600FT. THE PROPERTY TO THE SOUTH, IS OWNED BY CHEVRON, AND THE PARK DISTRICT ALREADY HAS A TRAIL EASEMENT IN PLACE HERE.

SO THE LICENSE HERE JUST CONNECTS EXISTING RIGHT OF WAY TO THE BEACH PARK FOR THIS PLANNED SEGMENT OF TRAIL.

THE CITY OF RICHMOND PLANS TO OPERATE THIS FUTURE SEGMENT OF THE BAY TRAIL.

SO THAT'S WHY THE LICENSE IS REALLY ONLY FOR THIS SEGMENT HERE.

AND THEN BACK UP TO THE NORTH. WE HAVE CHEVRON'S PROPERTY PICKING UP AGAIN, AND WE'RE UNDERWAY NEGOTIATING AN EASEMENT ON THAT SECTION AS WELL.

SO ALL OF US ARE WORKING VERY HARD TO KIND OF GET THIS WHOLE SEGMENT OF TRAIL IN PLACE IN THIS SECTION.

BUT RIGHT TODAY WE'RE JUST LOOKING AT THIS LITTLE TINY YELLOW PIECE.

JUST TO ZOOM IN A LITTLE BIT, YOU CAN SEE POINT MOLATE BEACH PARK PARKING LOT UP HERE.

AND THE TRAIL REALLY LICENSE THAT WE'RE LOOKING AT TODAY JUST PICKS UP FROM THE PROPERTY LINE UP TO THE BEACH PARK .

IN THIS LOCATION, THE PLANNED BAY TRAIL WILL CONNECT FOR ALL THE WAY FROM THE RICHMOND SAN RAFAEL BRIDGE TOLL PLAZA TO THE BEACH PARK .

THE LICENSE INCLUDES THE RIGHT TO STAGE CONSTRUCTION MATERIALS ON THE ADJACENT BEACH PARK PARKING LOT, WHILE THE TRAIL IS UNDER CONSTRUCTION.

THE BRIDGE AND BAY, AND IT WILL MAKE THIS UNDERUTILIZED SHORELINE MORE ACCESSIBLE FOR RESIDENTS OF RICHMOND AND THE GREATER BAY AREA.

SO ALL OF THE LONG TERM PLANS ARE EXCITING. BUT TO FOCUS BACK ON THE ACTION BEFORE YOU TODAY, THIS LICENSE IS FOR THIS VERY SHORT DISTANCE.

ABOUT 600FT CLOSES THE GAP IN A PLANNED SEGMENT OF THE BAY TRAIL.

IT'S FOR 25 YEARS. INCLUDES CONSTRUCTION, STAGING AND REALLY WHAT MY DEPARTMENT AND LAND IS DOING TODAY IS JUST GETTING THE RIGHT OF WAY IN PLACE TO HAND THIS PROJECT BACK OVER TO TRAILS, WHO WILL BE DOING THE CONSTRUCTION AND AUTHORIZATION FOR THOSE PIECES LATER DOWN THE LINE.

THEIR PLAN IS TO BEGIN CONSTRUCTION IN SUMMER OF THIS YEAR.

IT'S A VERY SHORT TRAIL SEGMENT. SO THIS PRESENTATION IS SHORT.

[01:40:04]

WE CAN DO COMMENTS AFTER THE PUBLIC COMMENT PERIOD.

BUT FOR NOW WE'RE LOOKING FOR QUESTIONS. SURE. GO AHEAD.

I HAVE A QUESTION. SO CITY OF RICHMOND OWNS, OPERATES AND MAINTAINS THE EXISTING TRAIL THAT THIS WOULD CONNECT TO? THE HERE JUST ONE MOMENT. LET ME BRING THIS UP.

SO THE CITY OF RICHMOND OWNS THE UNDERLYING PROPERTY.

YEP. THE BAY TRAIL HAS NOT BEEN CONSTRUCTED HERE YET.

THE BEACH PARK IS IN OPERATION AND USE BY THE CITY OF RICHMOND, AND WILL REMAIN OWNED BY THE CITY OF RICHMOND.

BUT THE TRAIL SEGMENT HERE HAS NOT YET BEEN CONSTRUCTED.

OKAY. I THINK AT THE BEACH PARK THERE IS A LITTLE BIT OF A WHAT APPEARS TO BE A TRAIL, BUT MAYBE IT'S JUST AN OLD LIKE A PATHWAY AND WASN'T.

IT'S NOT THE SAN FRANCISCO BAY TRAIL, IS THAT CORRECT? YES, I BELIEVE SO. OKAY. AND SO THEN WITH THE SAN FRANCISCO BAY TRAIL.

SO THE REMAINING, I GUESS, DASHED LINE NORTH OF THE YELLOW SECTION THAT WE'RE LOOKING AT.

SO ALSO ON THE CITY OF RICHMOND PROPERTY, WHO WILL BE CONSTRUCTING THAT PORTION OF THE SAN FRANCISCO BAY TRAIL.

IS THAT GOING TO BE RICHMOND, CITY OF RICHMOND'S RESPONSIBILITY, OR MAY THAT BE SOMETHING THAT WE MIGHT DO? I'M GOING TO INVITE OUR TRAIL STAFF UP TO ANSWER THAT QUESTION.

THANK YOU. GOOD AFTERNOON. SUZANNE WILSON, SENIOR PLANNER AND THE TRAILS PROGRAM.

THANKS FOR YOUR QUESTION, DIRECTOR SANWONG. SO THE TRAIL WILL BE OPERATED BY THE PARK DISTRICT FROM THE RICHMOND SAN RAFAEL BRIDGE TO THE POINT MOLATE BEACH PARK . SO TO THE NORTHERN END OF THIS YELLOW SEGMENT, ANY TRAIL BEYOND THAT WILL BE OPERATED BY THE CITY OF RICHMOND.

AS FOR CONSTRUCTION WE ARE ACTUALLY, I'M ACTUALLY HAPPY TO ANNOUNCE THAT WE'RE GOING TO BE PUTTING THAT SEGMENT A FROM THE RICHMOND SAN RAFAEL BRIDGE TO THE BEACH PARK OUT TO BID THIS MONTH. SO THAT'S 1.25 MILE SEGMENT THAT WILL BE FULLY FUNDED AND OPERATED BY THE PARK DISTRICT .

AND YOU MAY RECALL THAT THE FULL DESIGN SCOPE INCLUDES THE 1.25 MILES GOING NORTH TO THE NORTHERN BOUNDARY OF THE HISTORIC WINEHAVEN DISTRICT THAT'S SHOWN HERE AS THE HIGHLIGHTED PARCEL, BUT WE ARE GOING TO DELAY ON CONSTRUCTING THAT RIGHT NOW.

THAT'S GOING TO BE CONSTRUCTED AT A LATER DATE FOR A COUPLE REASONS, PRIMARILY BECAUSE THE CITY OF RICHMOND HAS A SEPARATE SHORELINE EROSION PROJECT TO ADDRESS SOME SEVERE EROSION IMMEDIATELY NORTH OF THE BEACH PARK , AND THAT ACTUALLY CLOSES A 200 FOOT GAP THAT EXISTS BETWEEN OUR PROJECTS.

THIS HAS BEEN PART OF THE PROJECT PICTURE ALL ALONG THAT THEIR SHORELINE REVETMENT PROJECT WOULD HELP CLOSE THAT GAP.

UNFORTUNATELY, THEY NO LONGER HAVE FUNDING AVAILABLE FOR THEIR PROJECT, AND SO THEY'RE NOT REALLY ABLE TO ADDRESS SOME OF THE DESIGN AND PERMITTING CHALLENGES THAT THEY'RE FACING AROUND THAT PROJECT. SO WE ARE UP AGAINST GRANT DEADLINES.

NAMELY, WE HAVE A GRANT IN THE AMOUNT OF 1.2 MILLION THAT WILL LIQUIDATE IN MARCH OF 2027.

THAT'S THE PROP 68 TRAILS AND GREENWAYS FUND ADMINISTERED BY THE CALIFORNIA NATURAL RESOURCES AGENCY.

SO WE DO NEED TO BEGIN CONSTRUCTION ON SOMETHING OUT HERE.

AND SO WHAT WE CAN DO IS WE CAN MOVE FORWARD WITH CONSTRUCTION OF SEGMENT A FROM THE BRIDGE TO THE BEACH PARK .

AND IF I COULD JUST ADD ON TO THAT. THANK YOU SUZANNE.

THIS IS IF MOST OF YOU WILL RECALL, WE DID BRING THE ITEM FORWARD TOWARDS THE END OF LAST YEAR.

I CAN'T REMEMBER WHAT MONTH. SEPTEMBER. SEPTEMBER.

NOT QUITE THE END IN THE FALL. WHICH WAS TO REJECT THE BIDS ON THE FULL CONSTRUCTION CONTRACT WITH THE COMMITMENT THAT WE WHICH BECAUSE LOTS OF OTHER COMPLICATIONS THAT WERE HAPPENING WITH THAT, THE COMMITMENT WE WOULD BE BACK HERE WITHIN THE FIRST QUARTER THIS YEAR. SO WE AS SUZANNE MENTIONED, WE ARE MAKING THAT HEARING YOU LOUD AND CLEAR THAT THE PRIORITY IS TO AS SOON AS POSSIBLE TO TRY TO GET SOME PUBLIC ACCESS OUT THERE.

SO I THINK THE PROPOSED PHASING OF AT LEAST GETTING THAT PHASE ONE CONTRACT OUT TO BID THIS MONTH AND GET GOING ON THE CONSTRUCTION OF THIS, I THINK, IS IN EVERYBODY'S BEST INTEREST HERE.

SO DEFINITELY HEARD THE BOARD LAST YEAR AND THIS IS OUR CREATIVE SOLUTION TO THAT.

OKAY. THANK YOU. ANY OTHER QUESTIONS OF STAFF.

I'M JUST WONDERING WHATEVER RICHMOND BUILDS, ARE THEY GOING TO BE FOLLOWING OUR STANDARDS IN THEIR CONSTRUCTION? WOULDN'T IT BE NICE IF THEY DID? SO THEY WILL BE FOLLOWING OUR STANDARDS BECAUSE WE'VE ACTUALLY ALREADY DESIGNED IT FOR THEM.

SO ESSENTIALLY WE'RE GOING TO BE GIVING THEM A BID PACKAGE FOR THEM TO BE ABLE TO PUT THAT OUT TO BID WHEN THEY RESOLVE THE SHORELINE EROSION

[01:45:03]

IT WILL BE DESIGNED, PERMITTED. WE'VE DONE CEQA ON IT ALREADY, AND IT IS ALL TO OUR STANDARD.

AND A RE WE EXPECTING THEM TO BUILD AND OPERATE ALL THE WAY AROUND THE POINT TO THE MARINA THERE, OR DOES IT BECOME OURS AGAIN AROUND THE POINT.

IT DOES BECOME OURS AGAIN. SO AT THE WHERE IT GOES BACK INTO CHEVRON'S PROPERTY.

HOW DID YOU MAKE THE CONTROL RIGHT HERE. THIS THIS WILL END THEIR SEGMENT.

OKAY. THIS PIECE WILL BE OURS TO OPERATE IN AN EASEMENT OVER CHEVRON'S PROPERTY.

AND THEN THIS IS ALSO WITHIN CITY OF RICHMOND'S PROPERTY.

THIS SEGMENT. SO WE'RE JUST TAKING IT ONE SEGMENT AT A TIME.

YEAH. OKAY. ALL RIGHT. THOSE ARE ALL. THAT'S ALL GREAT.

THANK YOU. I HAD A QUESTION TOO JOHN. SURE. GO AHEAD.

YEAH, YEAH. SO I WAS JUST CURIOUS. I FULLY SUPPORT GOING FORWARD IN PHASES.

I THINK IT'S REALLY IMPORTANT TO KEEP MOVING ON THIS.

MY QUESTION IS, WHERE ARE WE IN TERMS OF THE MONEY TO DO THE FULL AMOUNT THAT WE HAD ORIGINALLY PLANNED TO DO? DO WE KNOW HOW IS THAT GOING AND WHAT THE TIMELINE ESTIMATED TIMELINE FOR THAT IS? YEAH. SO WHEN WE DID PUT THE PROJECT OUT TO BID, WE WERE SHORT SOME CONSTRUCTION FUNDING.

SO WE DID SOME VALUE ENGINEERING TO TRY AND BRING DOWN THAT COST OF CONSTRUCTION.

SO THAT'S ONE THING WE'VE DONE. WE ALSO APPLIED FOR RM3 FUNDS AND MEASURE AA SAN FRANCISCO BAY RESTORATION AUTHORITY FUNDS.

UNFORTUNATELY, WE WERE NOT SUCCESSFUL IN THE AWARD OF EITHER OF THOSE GRANTS.

SO RIGHT NOW WE'RE PRETTY BUSY TALKING WITH STAFF TO DETERMINE WHAT POTENTIAL SOURCES ARE OUT THERE THAT WE COULD CLOSE ANY GAP THAT WE MAY SEE IN FUNDING. WE'RE STILL WORKING OUT A COST ESTIMATE FOR SEGMENT A ALONE, BECAUSE WHEN WE BID THE PROJECT THE FIRST TIME, IT WAS THAT FULL TWO AND A HALF MILE SCOPE. SO THE ESTIMATE WAS QUITE DIFFERENT.

AND NOW THAT WE'VE MADE SOME OF THAT VALUE ENGINEERING CHANGES, WE'RE STILL WORKING ON GETTING AN ESTIMATE FOR OUR SEGMENT ALONE.

BUT THERE'S A CHANCE WE COULD WE COULD BE SHORT ON FUNDING.

AND SO WE'RE WORKING WITH STAFF TO, TO IDENTIFY WHAT SOURCES WE COULD POTENTIALLY GO AFTER.

GREAT. THANK YOU. ALL RIGHT. THANK YOU. SURE.

I REMEMBER WHEN WE LOOKED AT THIS BEFORE, WE HAD ALLOCATED FUNDING FROM OUR TRAILS LLC FUND THAT CAN BE USED IN GENERAL ACROSS THE PARK DISTRICT , EXCEPT FOR MURRAY TOWNSHIP. AND WITH THOSE FUNDS, I GUESS THEY'RE STILL ALLOCATED TO THIS PROJECT.

IS THAT CORRECT? OUR INTERNAL LLC FUNDS. THIS MAY BE A DUMB QUESTION, SO YOU MAY HAVE TO.

WE MAY NEED TO GET A MICROPHONE OVER TO OUR CFO.

ALL RIGHT. THANK YOU. DEB SPAULDING AGM OF FINANCE AND MANAGEMENT SERVICES . SO YES.

SO OUR LIGHTING AND LANDSCAPING ASSESSMENT DISTRICT LLD FUNDS ARE STILL ALLOCATED TO THE PROJECT.

AND SO THAT DOESN'T CHANGE. THAT DOES NOT CHANGE.

YEAH. THANK YOU. ALL RIGHT. THANK YOU. MADAM CLERK, DO WE HAVE ANY PUBLIC COMMENTS ON THIS ITEM? NO, WE DO NOT, PRESIDENT MERCURIO. DO WE HAVE ANY MEMBER COMMENTS? BOARD MEMBER COMMENTS ON THIS? JUST A FOLLOW UP QUESTION.

THANK YOU FOR YOUR PRESENTATION, YOU GUYS. SO I WAS WONDERING AT WHAT POINT I LOOKED AT THESE BEAUTIFUL SLIDES. AND I LOOK FORWARD TO THIS IT'S GOING TO BE BEAUTIFUL. IT'S ONE OF THE MOST BEAUTIFUL HIKES IN THE WORLD. BUT I NOTICED ONE OF THE SLIDES WAS FILLED WITH PAMPAS GRASS.

WHERE IN THE SCOPE OF DOING THIS? I MEAN, IT WOULD SEEM SO EASY.

BUILD US A TRAIL AND GET RID OF ALL THIS PAMPAS GRASS. IS IT AT THAT LEVEL OR IS IT IPM LONG AFTER THE TRAIL IS MADE? OR WHEN DO WE ADDRESS INVASIVE SPECIES LIKE THAT? IT'S A LITTLE BIT OF BOTH. SO WE ARE ABLE TO ADDRESS SOME OF THAT THAT'S WITHIN THE TRAIL CORRIDOR IN THE CONSTRUCTION PROCESS.

AND THERE SOME OF THAT IS ACTUALLY OUTSIDE OF OUR RIGHT OF WAY.

THAT WOULD BE, YOU KNOW, YOU'D HAVE TO ADDRESS BY THE LANDOWNER, WHETHER THAT'S CHEVRON OR THE CITY OF RICHMOND IN, YOU KNOW, IN A PARTNERSHIP. OKAY. THANK YOU. THAT'S A 20 FOOT RIGHT OF WAY THAT WE'VE GOT TO WORK WITH THERE.

THE LICENSE IN THE WITHIN THE CITY OF RICHMOND IS 20 FOOT, I BELIEVE.

RIGH? OKAY. BUT OUR EASEMENT WITHIN CHEVRON'S PROPERTY IS ACTUALLY FROM THE INBOARD SIDE OF THE TRAIL OUT TO THE SHORELINE.

SO WE'RE ABLE TO ADDRESS A LOT OF THAT THAT'S WITHIN THAT AREA.

YEAH. OKAY. ALL RIGHT. THANK YOU VERY MUCH. AND I HAD A COMMENT.

OH, YES. OKAY. WELL, I JUST REALLY WANTED TO THANK STAFF FOR THINKING CREATIVELY ABOUT THIS PROJECT AND FIGURING OUT A WAY TO DO THIS IN PHASES, BECAUSE IT IS A PRIORITY TO TO KEEP THIS MOVING AND REALLY APPRECIATE YOU ALL.

[01:50:07]

AND SO THANK YOU. THANK YOU FOR ALL YOUR CONTINUED WORK ON THIS PROJECT.

ALL RIGHT. THANK YOU. AT THIS POINT I'M LOOKING FOR A MOTION TO APPROVE THIS ITEM.

SO MOVED. MOVED BY ECHOLS. SECOND. SECOND. SECOND.

BY DESCHAMBAULT. ALL IN FAVOR? AYE. NO. WE'RE DOING A ROLL CALL.

WE'RE GOING TO HAVE TO DO A ROLL CALL. OH, SORRY.

DIRECTOR COFFEY. AYE. DIRECTOR ECHOLS. AYE . DIRECTOR WAESPI.

AYE. DIRECTOR SANWONG. YES. DIRECTOR ESPAÑA. AYE.

DIRECTOR DESCHAMBAULT. AYE. PRESIDENT MERCURIO .

AYE. UNANIMOUSLY APPROVED. ALL RIGHT. THANK YOU.

THANK YOU SO MUCH FOR THAT. LOOKING FORWARD TO SOME MORE MILEAGE BEING ADDED TO OUR TRAIL WORLD.

[FINANCE AND MANAGEMENT SERVICES DIVISION]

GOOD AFTERNOON. I'M DEB SPAULDING, AGM OF FINANCE AND MANAGEMENT SERVICES .

I AM SHORTLY GOING TO TURN THIS OVER TO BILL THORNTON WHO'S HERE FROM EMPOWER.

THEY ARE OUR PLAN ADVISOR AND HE'S OUR INVESTMENT DIRECTOR FROM EMPOWER.

HE WAS LAST YEAR, I BELIEVE, IN THE FALL, MAYBE NOVEMBER.

AND HE'S GOING TO PROVIDE AN OVERVIEW OF THE 457 AND 401 PLAN INVESTMENTS, HOW PERFORMANCE HAS BEEN IN THE PAST QUARTER, AND THE ACTION TODAY IS JUST TO ACCEPT THE REPORT.

AND I'LL BE HERE FOR QUESTIONS AS WELL. HELLO.

GOOD TO SEE EVERYONE. HEAR ME? OKAY. I NEED TO ADJUST THIS OR ANYTHING.

AS DEB SAID, I'M BILL THORNTON. VERY GOOD TO SEE EVERYBODY.

I WILL GO THROUGH. I'LL GO THROUGH THE REPORT.

I CERTAINLY WILL NOT GO PAGE BY PAGE THROUGH THE REPORT.

THE FIRST SECTION IS JUST KIND OF A CAPITAL MARKETS REVIEW.

I'M HAPPY TO ANSWER ANY QUESTIONS. IT'S BEEN AN INTERESTING TIME, I WILL SAY THE PAST MONTH OR TWO IN THE CAPITAL MARKETS, ESPECIALLY THE PAST PAST COUPLE OF WEEKS. SO I'M HAPPY TO ANSWER ANY QUESTIONS.

BUT IN TERMS OF THE REPORT, I WAS GOING TO JUMP AHEAD TO JUST REALLY THE MARKET.

SO JUST A REMINDER, THIS THE REPORT IS AS OF THE END OF THE YEAR.

AND THIS IS DATA AS OF 12/31 OF 2024. EXCUSE ME.

WE HAVE A QUESTION FROM A DIRECTOR. YES. SO KEEPING IN MIND THAT THIS REPORTS FOR FOURTH QUARTER OF 2024, JUST IN TERMS OF THE SLIDES THAT WE SKIPPED THE MACROECONOMIC AND MARKET SUMMARIES, COULD YOU JUST MAYBE DO A QUICK, QUICK OVERVIEW OF WHERE YOU SAW THINGS AT THE ON DECEMBER 31, 2024? ABSOLUTELY. SO REALLY A CONTINUATION OF A LOT OF THE THEMES THAT WE HAD TALKED ABOUT FOR THE PAST COUPLE OF YEARS.

RIGHT. IT WAS THIS KIND OF VERY DATA DRIVEN ENVIRONMENT ON INFLATION.

THAT'S BEEN THE BIG DATA POINT. I WON'T SAY THAT WE'RE PAST THAT, BUT TO A LARGE EXTENT, WE'VE SEEN INFLATION MITIGATE.

AND ACTUALLY I'LL BACK UP A FEW SLIDES HERE. SLIDE FIVE IS THE ON THE RIGHT SIDE IS THE CONSUMER PRICE INDEX.

RIGHT. AND YOU SEE THAT BIG PEAK THAT WE HIT A LITTLE OVER 9% BACK IN JULY OF 2022.

AND WE'VE SEEN A NICE DECREASE EVER SINCE THEN.

I THINK WE'VE TALKED ABOUT AT LEAST IN THE AT THE COMMITTEE LEVEL, THE FED'S TARGET IS 2% ON INFLATION.

WE THOUGHT THAT LAST HALF A PERCENT WOULD PROBABLY BE A LITTLE TOUGH TO GET TO.

AND THAT'S WHAT WE'VE SEEN. WE'VE GOTTEN INTO THE FED'S ACTUAL PREFERRED MEASURE OF INFLATION IS WHAT'S CALLED PCE PERSONAL CONSUMPTION EXPENDITURES. THAT HAS BEEN IN THAT TWO AND A HALF KIND OF RANGE, PLUS OR MINUS A 10TH OF A PERCENT FOR PROBABLY ABOUT 4 OR 5 MONTHS.

WE JUST GOT THE JANUARY NUMBER. IT WAS RIGHT AT TWO AND A HALF.

SO TO A LARGE EXTENT WE HAVE NOT WHIPPED INFLATION BY ANY MEANS.

BUT THAT'S NOT THE LEAD DATA POINT AT THIS POINT.

THE LEAD DATA POINT REALLY HAS, HAS KIND OF BECOME FISCAL POLICY.

AND THAT'S WHERE A LOT OF I THINK THE SOURCE OF THE VOLATILITY HAS COME SO FAR FOR THIS YEAR.

BUT AT THE END OF THE YEAR, YOU KNOW WHEN WE KIND OF LOOK BACK INFLATION LOOKS GOOD HAS COME DOWN NICELY.

EMPLOYMENT CONTINUED TO BE VERY STRONG CONTINUES TO BE STRONG.

AT THIS POINT GDP WAS 3% FOR THE THIRD QUARTER.

[01:55:01]

SO STILL EXPANSIONARY. A LOT OF VERY SOLID GOOD NEWS ON THE MACRO SIDE AS OF THE END OF THE YEAR.

AND KIND OF FAST FORWARDING TO THIS POINT, MOST OF THAT IS STILL IN PLACE.

THE I'LL SAY THE ISSUE, ESPECIALLY WITH MARKET VOLATILITY THE PAST MONTH OR SO HAS BEEN UNCERTAINTY.

AND GIVEN THE CURRENT ADMINISTRATION'S EMPHASIS ON TARIFFS, THE LAYOFFS THAT WE'VE SEEN FROM THE DOGE AGENCY. IT'S JUST CREATED A LOT OF UNCERTAINTY AS TO HOW THAT'S GOING TO PLAY OUT IN THE NEAR AND MID-TERM KIND OF FUTURE. THE MARKET TYPICALLY DOESN'T LIKE UNCERTAINTY.

WE'VE SEEN THAT THE PAST COUPLE OF WEEKS. AS OF THIS MORNING, THE S&P WAS DOWN ABOUT 0.3% FOR THE YEAR.

GOT OFF TO A REALLY GOOD START. WE'VE GIVEN ALL OF THAT BACK OVER THE PAST FEW WEEKS.

WAS DOWN ANOTHER PERCENT A LITTLE OVER TODAY.

I JUST CHECKED BEFORE WE STARTED. SO WE'VE SEEN A LOT OF VOLATILITY.

WE WILL PROBABLY CONTINUE TO SEE VOLATILITY. BUT AS OF NOW A LOT OF THE I'LL SAY THE BUILDING BLOCKS OF THE ECONOMY CONTINUE TO BE PRETTY SOLID THAT WAS THE LONG WINDED ANSWER TO IT.

THAT WAS GREAT. THANK YOU. SO IN TERMS OF HOW AS OF THE FOURTH QUARTER, MARKETS WERE AND I'LL JUMP BACK TO SLIDE TEN.

IT WAS A FANTASTIC YEAR, RIGHT? THIS IS THE SECOND CONSECUTIVE YEAR OF 20% PLUS ON THE S&P 500.

IT'S RARE THAT WE HAVE BACK TO BACK YEARS, BUT IT'S BEEN IT'S BEEN A FANTASTIC EQUITY MARKET.

AND IF YOU LOOK ON KIND OF THE THIRD COLUMN THERE, THE SECOND OR THIRD COLUMN, YOU COME DOWN THE LINE.

IT'S DOUBLE DIGIT ADVANCES, YOU KNOW, ACROSS THE BOARD, YOU KNOW, REGARDLESS OF CAPITALIZATION, WHICH IS THE SIZE OF STOCKS, WHETHER IT'S GROWTH OR VALUE.

IT WAS A REALLY GOOD 2024. AS I MENTIONED. WE'VE SEEN SOME VOLATILITY THIS YEAR.

SO EVERYTHING IS ESSENTIALLY FLAT A LITTLE BIT DOWN AFTER YESTERDAY AND TODAY REALLY WITH THE EXCEPTION OF AND I'LL JUMP AHEAD A COUPLE OF SLIDES HERE.

FIXED INCOME. WE'VE HAD KIND OF A FLIGHT TO SAFETY OVER THE PAST COUPLE OF WEEKS BECAUSE OF THAT UNCERTAINTY THAT I MENTIONED IN KIND OF WHERE THINGS ARE GOING. A LOT OF INVESTORS HAVE SAID, FINE, I'M GOING TO TAKE SOME MONEY AND MAYBE I DON'T SAY PUT IT ON THE SIDELINES, BUT LOOK FOR SOMETHING A LITTLE SAFER, WHICH HAS BEEN US TREASURIES.

AND WE'VE SEEN THE TREASURY YIELD, THE YIELD CURVE COME DOWN FAIRLY SUBSTANTIALLY.

SO THE DARK LINE, THE DARK SOLID LINE IS WHERE WE WERE AT THE END OF THE YEAR.

THE SOLID LIGHT BLUE LINE IS WHERE WE WERE AT THE END OF 2023.

SO WE ACTUALLY SAW RATES TICK UP A LITTLE BIT LAST YEAR.

ALL OF THAT DURING REALLY THE FOURTH QUARTER AS WE CAME TO GRIPS WITH THE FED, PROBABLY NOT STEPPING IN TO REDUCE RATES AS AGGRESSIVELY AS WE THOUGHT BECAUSE THE ECONOMY HAS BEEN SO GOOD. IF I LOOK AT THAT CURVE NOW, YOU CAN TAKE THAT DARK, SOLID BLUE LINE AND DROP IT ABOUT 3/10 OF A PERCENT, ABOUT 30 BASIS POINTS. AND AGAIN, THAT'S THAT FLIGHT TO SAFETY AS INVESTORS ARE SAYING I DON'T LIKE THE UNCERTAINTY.

I'M GOING TO I NEED TO BE INVESTED, BUT I'M GOING TO I'M GOING TO TAKE A LITTLE BIT OF RISK OFF THE TABLE AND LOOK AT THE FIXED INCOME MARKETS.

IN TERMS OF PERFORMANCE. IT WAS A FAIRLY FLAT YEAR LAST YEAR IN BONDS.

ALL OF THE PERFORMANCE CAME IN THE THIRD QUARTER.

AND THEN WE GAVE ALMOST ALL OF IT BACK IN THE FOURTH QUARTER.

BUT POSITIVE BY A LITTLE OVER A PERCENT LAST YEAR.

SO FAR THIS YEAR WITH THAT DROP IN YIELDS, THE RALLY ON THE BOND SIDE, THE AGGREGATE BOND INDEX, THE BLOOMBERG AG INDEX WAS UP ABOUT 3%. STARTING TODAY UP A LITTLE BIT MORE TODAY.

SO WE'RE PROBABLY IN THAT 3.23 AND A QUARTER KIND OF RANGE ON FIXED INCOME.

SO IN TERMS OF THE PLAN ITSELF AND I'LL JUMP AHEAD A LITTLE BIT.

I WILL I'LL SUMMARIZE BY SAYING THE LINEUP LOOKS REALLY GOOD IF YOU DON'T TAKE ANYTHING ELSE OUT FROM THIS TODAY.

THE FUNDS IN THE LINEUP ARE PERFORMING VERY WELL, BOTH FROM AN ABSOLUTE AND A RELATIVE STANDPOINT.

SLIDES 21 THROUGH 24. JUST THE ACTUAL MARKET VALUES IN EACH OF THE FUNDS.

SO I WON'T GO THROUGH THOSE, CERTAINLY, 25 IS JUST A LITTLE BIT OF A VISUAL REPRESENTATION OF WHERE THE FUNDS ARE AS FAR AS CATEGORIES.

AND THEN THE FOLLOWING, PROBABLY 6 OR 7 SLIDES IS THAT SAME KIND OF THING.

BUT LOOKING AT STYLE ANALYSIS. SO WE'RE LOOKING AT HOW WELL THE FUNDS PERFORMANCE CORRELATES TO DIFFERENT BENCHMARKS.

THE THING THAT I WOULD TAKE FROM THIS IS WE'RE TRYING TO GIVE PARTICIPANTS EXPOSURE TO ALL OF THE MAJOR CATEGORIES, RIGHT. SO THEY CAN BUILD PORTFOLIOS ANYWHERE THEY WANT ON THE RISK RETURN SPECTRUM.

[02:00:05]

28 IS THE US THE DOMESTIC FUNDS. SO THAT TOP LEFT GRAPH IDEALLY WE KIND OF HAVE EVERYTHING IN EVERY CORNER, EVERY SECTION OF THAT. AND I THINK WE ABSOLUTELY DO.

THE FUND THAT IS ON THE INVESCO DISCOVERY IS IT MIGHT LOOK A LITTLE BIT OUT OF PLACE.

IT DOES HAVE A DECENT AMOUNT OF MID-CAP GROWTH EXPOSURE, MID-CAP EXPOSURE.

WE KEPT THAT FROM THE FORMER LINEUP. THE FUND'S DONE REALLY WELL.

THEY DON'T TRADE A LOT. SO THEIR EMPHASIS IS THEY'RE GOING TO PICK STOCKS THAT ARE SMALL CAP THAT THEY THINK ARE GOING TO DO REALLY WELL.

HOPEFULLY THOSE STOCKS DO WELL AND THEY'RE GOING TO KEEP THEM IN THE PORTFOLIO.

THAT'S WHAT WE'VE SEEN. SO A LOT OF THOSE STOCKS HAVE KIND OF GROWN INTO THE MID-CAP AREA.

AND THEN THEIR NEW IDEAS THEY BRING IN ON THE SMALL CAPS.

SO AGAIN WHAT WE NORMALLY WOULD SEE FROM THEM NOT A SURPRISE BY ANY MEANS.

SAME THING ON THE WE HAD ONE ONE FUND WE COULDN'T GET ON THE OTHER PAGE THE VANGUARD TOTAL STOCK INDEX THE TARGET DATE FUNDS NO CHANGE THERE.

ABSOLUTELY WHAT WE WOULD EXPECT TO SEE THE AMERICAN FUNDS TARGET DATES ARE FANTASTIC TARGET DATE FUND FAMILY AND THEN THE FIXED INCOME FUNDS ON SLIDE 32.

33 THROUGH THE NEXT COUPLE OF PAGES HERE TO ME IS THE MOST IMPORTANT.

SO THIS IS WHAT WE CALL OUR FUND MONITORING REPORT.

WE'RE LOOKING AT NOT ACTUAL PERFORMANCE BUT RELATIVE PERFORMANCE VERSUS THE FUND'S BENCHMARK.

THE FIRST 5 OR 6 COLUMNS THERE AND THEN VERSUS THEIR PEERS UNDER WHERE IT SAYS PEER RETURN RANK.

AND THIS IS THE PAGES. YOU CAN KIND OF COME DOWN THE LINE VERSUS THEIR PEERS.

THE ACTIVELY MANAGED FUNDS LOOK VERY GOOD. YOU'LL SEE SOME, YOU KNOW, SOME FUNDS LAG A LITTLE BIT OVER THE PAST YEAR.

THAT'S TYPICALLY A LITTLE BIT OF YOU KNOW, THE INVESTMENT PROCESS IS A LITTLE BIT OUT OF STEP WITH THE MARKET, OR THE FUND MANAGER IS MAYBE A LITTLE EARLY OR A LITTLE BIT LATE WITH CALLS ON STOCKS.

SO DEFINITELY LOOK AT THE, YOU KNOW, THE THREE AND FIVE AND TEN YEAR NUMBERS.

LIKE I SAID THE FUNDS LOOK REALLY GOOD. A COUPLE THAT I WANTED TO POINT OUT KIND OF TOWARDS THE MIDDLE OF THE PAGE THAT PUTNAM LARGE-CAP VALUE FUND IS TOP DECILE VERSUS THEIR PEERS VERSUS THEIR PEERS ACROSS ALL TIME PERIODS THAT'S BEEN A FANTASTIC FUND.

BUT WHEN YOU KIND OF COME DOWN THE PAGE, YOU KNOW, YOU LOOK DOWN THAT THREE AND FIVE YEAR COLUMN, IT'S A LOT OF A LOT OF FUNDS IN THE TOP THIRD, TOP QUARTILE, EVEN TOP DECILE OF THEIR PEERS.

THE OTHER THE FUND THAT I WAS GOING TO HIT PROBABLY MOST SPECIFICALLY IS ON SLIDE 36.

ACTUALLY, I'M SORRY, IT'S THE FIRST, FIRST SLIDE.

SLIDE 33. THE FIRST FUND, THE T ROWE PRICE OVERSEAS STOCK.

THAT'S THE FUND THAT IS A LITTLE BIT OUT OF STEP.

I'LL SAY SO OVER THE PAST YEAR. UNLIKE US, STOCKS ON THE FOREIGN STOCKS SIDE, VALUE HAS OUTPERFORMED A LITTLE BIT.

VALUE VERSUS GROWTH. THAT T ROWE FUND TENDS TO BE A LITTLE MORE VALUE ORIENTED.

SO I WOULD HAVE EXPECTED THAT TO DO A LITTLE BIT BETTER OVER THE PAST YEAR.

AND, YOU KNOW, OVER A ONE YEAR TIME FRAME, NOT A BIG DEAL, BUT KIND OF THE OTHER CHARACTERISTIC OF THAT.

THEY RECENTLY HAD A FUND MANAGER RETIRE. THEIR FUND MANAGER HAS BEEN THE MANAGER SINCE INCEPTION, SINCE 2006. HE RETIRED AT THE END OF 2024. THEY BROUGHT IN ANOTHER FUND MANAGER ABOUT A YEAR AGO.

SHE'S BEEN WORKING WITH HIM VERY CLOSELY. BUT ANY TIME THERE'S A FUND MANAGER CHANGE, THIS IS SOMETHING THAT WE KEEP A LITTLE CLOSER EYE ON.

SO WE'LL DO THAT WITH T ROWE. THE NICE THING WITH EMPOWERS, YOU KNOW, EMPOWER SIZE.

WE TALK TO T ROWE CONSTANTLY SO WE HAVE ACCESS TO WHATEVER WE NEED WITH T ROWE IF WE WANT, WHEN WE WANT TO TALK TO THE FUND MANAGER OR ANYTHING. BUT THAT'S THE ONE FUND THAT I'LL SAY WE'VE GOT A LITTLE BIT.

WE'RE KEEPING A LITTLE CLOSER EYE ON THAN NORMAL.

SO THIS KIND OF COMMENTARY, HOW MIGHT THAT BE SHARED WITH OUR PLAN PARTICIPANTS.

DO WE HAVE LIKE A NEWSLETTER THAT GOES OUT THAT MIGHT SHARE AN UPDATE SUCH AS THIS? FOR THOSE WHO MIGHT BE INVESTED OR THINKING ABOUT INVESTING IN THE T ROWE PRICE FUND, FOR EXAMPLE.

SO I'LL SAY WE CAN DO WHATEVER YOU WOULD LIKE.

CURRENTLY I DON'T THINK WE'RE NOTIFYING PARTICIPANTS OF A FUND MANAGER CHANGE THAT'S TYPICALLY AT THIS LEVEL AND THE COMMITTEE LEVEL.

BUT IF IT'S SOMETHING THAT WE WANT TO DO A NOTE ON THE WEBSITE WHEN YOU FIRST LOG IN.

CERTAINLY WE CAN DO THAT. I WILL SAY I DON'T HAVE ANY OTHER PLANS THAT ARE DOING THAT TO THAT LEVEL OF DETAIL.

I THINK MOST, PLAN SPONSORS THINK OF THAT AS THAT'S THE DUTY OF EMPOWER INVESTMENTS AND THE INVESTMENT COMMITTEE AND THAT KIND OF THING.

[02:05:07]

YEAH. THANK YOU. SURE. SO LIKE I SAID, FUNDS LOOK, FUNDS LOOK REALLY GOOD.

WE DID INCLUDE ON SLIDE 37 JUST A BENCHMARK BASED LOOK AT THE TARGET DATES VERSUS JUST A WEIGHTED AVERAGE, USING DIFFERENT BENCHMARKS OF THEIR PORTFOLIO THAT'S ACTUALLY OUTLINED IN THE IPS FROM THAT STANDPOINT ALSO FUNDS LOOK LOOK REALLY GOOD.

I WON'T GO THROUGH EVERYTHING ELSE. THE LAST THING I'LL MENTION IS THE SCORECARD REPORT.

WE DO INCLUDE THIS. THIS IS IT'S A, YOU KNOW, KIND OF A GRAPHICAL REPRESENTATION OF DIFFERENT CRITERIA THAT WE LOOK AT VERSUS THE FUNDS AND WHETHER THAT FUND HAS PASSED THAT CRITERIA OR HAS TRAILED.

SO IN THE CASE OF THE T ROWE PRICE OVERSEAS STOCK, YOU KNOW, THE MANAGER TENURE I MENTIONED, HEY, THERE'S A NEW MANAGER. THAT MANAGER HAS BEEN ON THE FUND FOR A LITTLE LESS THAN A YEAR.

THAT'S UNDER THE THREE YEAR KIND OF CRITERIA THAT WE LOOK FOR.

I WILL SAY NONE OF THE FUNDS ARE ON A WATCH BY ANY MEANS.

AS YOU GO THROUGH THESE SLIDES, YOU'LL SEE SOME OF THE FUNDS HAVE ONE CRITERIA OR A COUPLE OF CRITERIA THAT HAVEN'T PASSED FOR THIS PERIOD.

IT'S NOT REALLY UNTIL WE SAW, YOU KNOW, FOUR AND FIVE OF THESE CRITERIA THAT THAT ARE NOT PASSING OVER TIME THAT WE WOULD REALLY SAY, HEY, IT'S LET'S TAKE A LOOK AT AT PUTTING IT ON WATCH AND THEN ULTIMATELY POSSIBLY REPLACING IT.

AND I THINK THAT'S PROBABLY IT. I HAVE A QUESTION.

SO THAT WAS ONE OF THE THINGS I SAW ON PAGE 39 OF THE T ROWE.

I WONDERED WHAT YOU JUST SAID. USUALLY 4 OR 5.

I NOTICED THERE WERE FOUR. AND YET STAFF WAS SAYING WE DIDN'T RECOMMEND ANY ON THE WATCH LIST, SO THAT ONE'S NOT ON THE CUSP YET OR? I DON'T THINK SO.

AND THE CRITERIA THAT THEY'RE THAT THEY'RE NOT PASSING.

SO ON PAGE 39, IT'S THE SHORT TERM LIKE IT'S THREE YEAR PERFORMANCE.

IT'S THREE YEAR SHARPE RATIO. THINGS ALONG THAT LINE.

SO ABSOLUTELY IT'S ONE THAT WE'RE KEEPING AN EYE ON.

BUT IT'S AN EYE ON BUT NOT WATCH LIST. BUT NOT WATCH LIST QUITE YET.

YES YES. THANK YOU. THANKS FOR THAT QUESTION.

I DID MEAN TO SAY, BEFORE I TURN IT OVER TO BILL, THAT THE DEFERRED COMP ADVISORY COMMITTEE IS GOING TO BE RECEIVING THE SAME REPORT IN A COUPLE OF WEEKS, AND THEY'LL BE LOOKING AT THESE INVESTMENTS IN ALIGNMENT WITH THE INVESTMENT POLICY STATEMENT.

AND THEN I TALKED ABOUT US COMING BACK IN THE FALL, MAYBE NOVEMBER.

AND AT THAT TIME, PERHAPS WE WOULD MAKE SOME RECOMMENDATIONS TO CHANGE, AND THEN WE'D HAVE MORE INFORMATION ABOUT HOW THESE FUNDS ARE PERFORMING.

WOULD TYPICALLY THE DCAC HAVE REVIEWED THAT BEFORE YOU COME TO US TODAY? WELL, SO I THIS IS ALL VERY NEW. SO WE SWITCHED TO EMPOWER LAST FEBRUARY, SO WE HAVEN'T EVEN HAD LIKE A FULL YEAR WITH EMPOWER. SO WE ARE SETTING UP THE STRUCTURE AND TRYING TO FIGURE OUT THE TIMING.

AND SO TODAY WE DECIDED TO BRING BILL KNOWING THAT THERE WAS GOING TO BE THE FIDUCIARY TRAINING.

WE THOUGHT, OH, THIS WILL BE GOOD TIMING, YOU'LL HAVE FIDUCIARY TRAINING, AND THEN WE CAN HAVE YOU REVIEW THE FUNDS.

AND IT HAPPENED TO BE A LITTLE BIT BEFORE THE DEFERRED COMP ADVISORY COMMITTEE HAD DONE THEIR REVIEW.

I DO THINK TYPICALLY WE MAYBE WOULD HAVE BUT WE MIGHT HAVE IT SECOND.

BUT I CAN'T REALLY SAY THAT THERE'S A STRUCTURE SET YET SINCE THIS IS ALL THE FIRST YEAR THAT WE'VE BEEN WITH EMPOWER AND THE FIRST YEAR THAT WE'RE DOING THIS REVIEW, LIKE THIS WASN'T SOMETHING THAT WE DID WITH MISSION SQUARE AND ICMA. SO I GUESS TO THAT END, OUR ACTION ITEM TODAY IS JUST TO ACCEPT THE REPORT.

WE'RE NOT. CORRECT BECAUSE THE COMMITTEE WILL.

I THINK I KEEP GETTING THE ACRONYM WRONG. DCAC WILL STILL BE REVIEWING THAT.

CORRECT? YES. SO JUST RECEIVING THE INFORMATION, ACCEPTING THE REPORT AND KNOWING THAT WE ARE STILL LOOKING AT THIS AND THERE WILL BE TWICE A YEAR WE'LL BE BRINGING THE INVESTMENT REPORTS TO THE BOARD.

ALL RIGHT, ALL RIGHT. YES. GO AHEAD. IT LOOKS LIKE THIS MAY NOT HAVE ALSO BEEN BROUGHT TO THE FINANCE COMMITTEE.

IS THAT CORRECT? I THINK THAT THERE WAS SOMETHING ON DEFERRED COMPENSATION, BUT IT WASN'T IN REGARDS TO THIS INVESTMENT REPORT.

CORRECT. SO AS WE DISCUSSED HOW TO BRING THESE THINGS FORWARD AND HOW MANY TIMES THEY SHOULD BE HEARD, WE DECIDED, LET'S BRING THIS STRAIGHT TO THE BOARD.

WE'VE GOT THE DCAC AND THEN WE'VE GOT THE BOARD.

[02:10:01]

YEAH. AND THAT FROM MY PERSPECTIVE THAT'S FINE.

I JUST WANTED TO MAKE SURE THAT I AM LOOKING AT THE FINANCE COMMITTEE CORRECTLY.

THANK YOU. YEAH, I THINK THAT WAS A GOOD APPROACH TO.

YEAH. THANK YOU. I JUST CAN I BUILD ON THAT ONE MORE TIME? EXCUSE ME. CAN I JUST BUILD ON THAT QUESTION OR MY EARLIER QUESTION? WHILE WE'RE IN IT? YEAH. GO AHEAD. SINCE WE'RE IN IT, THEN WAESPI AFTER THAT.

I GUESS. WHAT IF THERE WAS SOMETHING BIG? I GUESS MY CONCERN IS IF DCAC HASN'T LOOKED AT IT FINANCIAL, HASN'T LOOKED AT IT. IF WE DON'T SEE IT UNTIL NOVEMBER, WILL THERE BE SOME OTHER PROCESS? IF I MEAN FOR FIDUCIARY RESPONSIBILITY, IT JUST FEELS A LITTLE.

I APPRECIATE THE TIMING WITH THE TRAINING IS PERFECT BECAUSE NOW IT'S IN MY HEAD.

BUT HOW WILL THAT WORK? OR DO WE JUST OR WILL WE BE STUCK TO WAITING TILL NOVEMBER? YOU SO STAFF IS DEFINITELY PAYING ATTENTION TO WHAT'S GOING ON WITH OUR PLANS AND WORKING WITH EMPOWER, WE HAVE MONTHLY MEETINGS WITH EMPOWER TO REVIEW WHAT'S GOING ON, ANYTHING THAT WE NEED TO BE TAKING ACTION ON.

IF ANYTHING WERE TO COME UP WHERE WE FELT LIKE WE NEED TO COME BACK TO THE BOARD, WE DEFINITELY WOULD. WE WOULDN'T WAIT TILL NOVEMBER. DOES THAT ANSWER YOUR QUESTION? OKAY. THANK YOU. DIRECTOR WAESPI. YEAH. I WAS WONDERING, HOW MANY PARTICIPANTS DOES THE REGIONAL PARK DISTRICT HAVE IN THE 457 B PLAN? LET ME GET THAT INFORMATION, AND I CAN SEND THAT TO YOU AS A FOLLOW UP.

I DON'T HAVE THAT WRITTEN DOWN WITH ME. SORRY.

OKAY. I MIGHT BE ABLE TO GET IT IN THE NEXT COUPLE OF MINUTES.

IF I GO TO MY. THAT'D BE GREAT. AND IT'D BE REALLY NICE TO. I'D BE INTERESTED IN KNOWING A COUPLE OF THINGS.

HOW MANY CURRENT EMPLOYEES AND THEN RETIREES THAT STAYED WITH IT.

AND ALSO THEN IN THE 401 A PLAN. AND THEN, YOU KNOW, THERE WAS TALK SIX MONTHS AGO ABOUT SOME PEOPLE OPTING OUT OF THIS PLAN BECAUSE THEY DIDN'T LIKE THE WELL, THEY DIDN'T LIKE IT.

SO I WAS WONDERING, HAS THERE BEEN A LOSS OF PARTICIPANTS? YES, THERE HAS BEEN A LOSS OF PARTICIPANTS. LET ME GET YOU THE EXACT NUMBERS.

ALL RIGHT. THANK YOU. ALL RIGHT. ARE THERE ANY OTHER QUESTIONS FROM THE BOARD? YEAH, I HAVE A QUESTION. SURE. AND THIS. THEY'LL PROBABLY HAVE TO GET BACK TO US ON THIS, BUT I AM JUST INTERESTED IN KNOWING.

SO HOW MANY PARTICIPANTS ARE NOT OPTING FOR ANYTHING THAT ARE JUST GETTING DEFAULTED TO THAT OPTION TO THE DEFAULT OPTION. HOW MANY.

DIRECTOR ECHOLS, WE ARE GOING TO, I GUESS, GET BACK TO YOU ON THAT.

I DON'T KNOW IF WE HAVE THAT RIGHT NOW, BUT. SURE.

ALL RIGHT. DO WE HAVE ANY PUBLIC COMMENTS ON THIS ITEM? NO, WE DO NOT PRESIDENT MERCURIO. OKAY. DO WE HAVE ANY BOARD COMMENTS ON THIS ITEM? DO WE HAVE A MOTION FROM THE BOARD TO APPROVE THIS ITEM? SO MOVED. ALL RIGHT. DO I HAVE A SECOND? DO YOU WANT TO PAUSE THAT WHILE DEB IS UP THERE. LET'S DO THAT. LET'S JUST PAUSE FOR A MOMENT AND GIVE YOU A CHANCE TO RESPOND BEFORE WE FINISH IT OFF.

I HAVE SOME OF WHAT YOU HAD ASKED. SO TOTAL PLAN PARTICIPANTS 1,096.

725 ARE ACTIVE EMPLOYEES, 321 ARE SEPARATED FROM EMPLOYMENT.

SO IT COULD BE RETIRED, OR THEY COULD HAVE JUST SEPARATED AND MOVED ON TO ANOTHER ORGANIZATION.

WE HAVE A 67% OVERALL PARTICIPATION RATE OF OUR EMPLOYEES.

AND THEN WE CAN GET DIRECTOR ECHOLS QUESTION ABOUT HOW MANY ARE JUST GOING INTO THE TARGET DATE FUNDS BECAUSE THEY'RE NOT MAKING A SELECTION OF INVESTMENTS.

WE CAN FIND THAT OUT, BUT THAT'S NOT SOMETHING WE HAVE SUPER EASILY AVAILABLE.

BUT WE CAN LOOK INTO THAT. ALL RIGHT. DEBORAH, DO YOU MIND JUST EMAILING US THAT INFORMATION? BECAUSE I COULDN'T WRITE IT DOWN FAST ENOUGH, BUT IT IS INFORMATION THAT YOU JUST STATED.

WE'LL DO. YEAH, THAT WOULD BE HELPFUL FOR ALL OF US, I'M SURE.

THANK YOU. GOOD, GOOD. GOOD SUGGESTION. ALL RIGHT, SO WE HAVE A MOTION ON THE FLOOR BY WAESPI.

DO I HAVE A SECOND? I CAN SECOND. THIS IS SECOND FROM.

DID YOU SAY THAT? YEAH. OKAY. SECOND. SECOND FROM SANWONG.

TAKE THE ROLL. DIRECTOR COFFEY. AYE. DIRECTOR ECHOLS.

AYE. DIRECTOR WAESPI. AYE. DIRECTOR SANWONG. YES.

DIRECTOR ESPAÑA. AYE. DIRECTOR DESCHAMBAULT. AYE.

[02:15:04]

THANKS. OKAY, SO THAT CARRIES. ALL RIGHT. OUR NEXT ITEM IS

[OPERATIONS DIVISION]

AND WE HAVE A PRESENTATION ON THAT AS WELL. ALL RIGHT.

WELL GOOD AFTERNOON. I'M LISA GOORJIAN I'M THE ASSISTANT GENERAL MANAGER OF OPERATIONS.

SO THANK YOU BOARD PRESIDENT, BOARD GENERAL MANAGER .

I JUST WANTED TO BEGIN AND CORRECT FOR THE RECORD, SOME LANGUAGE THAT'S IN THE STAFF REPORT FOR THIS ITEM.

SO IN THE ANALYSIS SECTION, THE REPORT INCORRECTLY STATES THAT CIVICORP WORK INDEPENDENTLY ON TRAIL MAINTENANCE.

THAT'S INCORRECT. CIVICORP DO NOT WORK INDEPENDENTLY FROM PARK DISTRICT STAFF.

AND FURTHERMORE, I WANT TO TAKE THIS OPPORTUNITY TO STATE FOR THE RECORD THAT CIVICORPS DOES NOT SUPPLANT OR PERFORM THE WORK OF REPRESENTED PARK DISTRICT EMPLOYEES, AS THE GOAL WITH ALL WORKFORCE DEVELOPMENT IS TO FOCUS ON BENEFITING THE PARTICIPANTS.

SO I JUST WANTED TO CLARIFY AND THANK YOU FOR THIS OPPORTUNITY, AND I APOLOGIZE FOR CONFUSION.

AND, YOU KNOW, I'M ALWAYS HAPPY TO TALK ABOUT THIS.

AND SO I JUST APPRECIATE THE OPPORTUNITY. SO I'M REALLY EXCITED NOW TO TURN IT OVER TO ROBERT KENNEDY, OUR DIVISION LEAD OF OPERATIONS. AND HE HAS GUESTS FROM CIVICORPS AS WELL.

SO THANK YOU SO MUCH.

ALL RIGHTY. WELL, THANK YOU. BOARD OF DIRECTORS , PRESIDENT MERCURIO.

ROBERT KENNEDY, DIVISION LEAD FOR PARK OPERATIONS.

AND I WANTED TO THANK YOU FOR THIS OPPORTUNITY TO SPEAK AND BRING CLARITY TO THE SUBJECT OF YOUTH WORKFORCE DEVELOPMENT.

THE LAST YEAR, IN THE PAST YEAR, I SPOKE ABOUT BUILDING COMMUNITY THROUGH STRONG PARTNERSHIPS, CULTIVATING SKILLS AND FOSTERING CAREER OPPORTUNITIES.

AND LIKE LISA STATED, THIS CONTRACT IS ABOUT YOUTH WORKFORCE DEVELOPMENT AND OUR SHARED COMMITMENT WITH CIVICORPS.

OUR STRONG 42 YEAR HISTORY WITH CIVICORPS HAS EVOLVED OVER THE PAST THREE YEARS, AND WE'VE TAKEN IT TO THE NEXT LEVEL, FOCUSING ON PROVIDING SPECIALIZED JOB TRAINING, A HANDS ON EXPERIENCE AND SERVICE DELIVERY.

THESE ARE ALL WHAT WE BELIEVE TO BE CORE TENETS OF A SUCCESSFUL PROGRAM THAT TRULY ENHANCES THE LIVES OF PARTICIPANTS.

WE PROVIDE A SPACE WHERE WE CAN SET GOALS. THE PARTICIPANTS CAN BECOME PILLARS OF THEIR COMMUNITIES AND THEY CAN BLAZE A TRAIL FOR THOSE LOOKING TO FOLLOW IN THEIR FOOTSTEPS.

THE YOUTH WORKFORCE DEVELOPMENT PROGRAM IS ABOUT OUR INVESTMENT IN THE COMMUNITIES IN WHICH WE SERVE, AND CREATING A PIPELINE FOR EMPLOYMENT WITH THE DISTRICT.

AND JUST TO CLARIFY, WE EXPANDED OUR ENGAGEMENT WITH WAS CIVICORP BECAUSE THEY HAVE THE ABILITY TO REACH AND IMPACT FAR MORE YOUTH PARTICIPANTS IN THE GREATER BAY AREA AND PROVIDE THE SERVICES THAT THEY NEED AND THAT WE CANNOT PROVIDE.

AND THESE ARE PARTICIPANTS, NAMELY FROM HAYWARD, OAKLAND, SAN LEANDRO, BERKELEY AND RICHMOND.

FROM THE BEGINNING, ERIC BOWMAN, PATRICK DEMMONS, ROSS MITCHELL AND LAST LANCE HOSTETLER HAVE BEEN EXTREMELY INTENTIONAL WITH PROVIDING SPECIFIC TRAININGS TO STRENGTHEN PARTICIPANTS QUALIFICATIONS.

AND AS YOU CAN IMAGINE, WITH THE POTENTIAL FOR THERE TO BE INCLEMENT WEATHER.

OUR STAFF TAKE THIS OPPORTUNITY TO BE ABLE TO WORK WITH THE PARTICIPANTS ON TOOLS, PREP AND MAINTENANCE EQUIPMENT OPERATIONS, NAVIGATING THE NEOGOV WEBSITE. WE ALL KNOW WE NEED HELP WITH THAT.

IT'S NOT THE EASIEST TO NAVIGATE. CREATING TARGETED RESUMES, WORKING ON INTERVIEW SKILLS, AND THE JOB APPLICATION PROCESS TO PREPARE THEM FOR JOB OPPORTUNITIES, EITHER HERE WITH THE DISTRICT OR BEYOND.

AND WE'VE GOT SOME FOLKS FROM CIVICORP TO HELP US OUT WITH THIS.

AND THAT'S JUST A TASTE OF WHAT WE DO FOR PARTICIPANTS AND WORKING ALONGSIDE OF CIVICORP .

[02:20:04]

UNDERSTANDING WHAT THE NATURAL RESOURCES HAVE TO PROVIDE, AS FAR AS, YOU KNOW, WHAT WE DO AND WHY WE DO IT.

AND SO I JUST WANT TO TALK ABOUT HOW THIS IS IMPORTANT TO ME AS AN INDIVIDUAL, BECAUSE IT REALLY DOES EMPOWER AND UPLIFT COMMUNITIES TO TAKE THE NEXT STEP, TO BE A PART OF THE COMMUNITY AND THE ENVIRONMENT THAT WE ARE RESPONSIBLE FOR PROTECTING.

AND THE RESOURCES THAT WE CAN'T PROVIDE ARE PROVIDED BY EAST BAY CIVICORP .

AND SO I WANT TO BE ABLE TO PRESENT BOTH TESSA NICHOLAS AND STEPHEN ALLISON, SO THEY THINK THEY CAN GO INTO DETAIL ABOUT THOSE RESOURCES THAT THEY PROVIDE PARTICIPANTS THAT WE AREN'T ABLE TO FULFILL.

AND SO WITH THAT, I'D LIKE TO BRING THEM UP TO THE STAGE.

US OFF. GOOD AFTERNOON BOARD. THANK YOU SO MUCH FOR THE TIME ALLOWED TODAY FOR US TO SHARE ABOUT THE CIVICORP EAST BAY PARKS RELATIONSHIP AND THE VALUABLE IMPACT IT HAS ON CIVICORP MEMBERS.

I'M TESSA NICHOLAS, I'M EXECUTIVE DIRECTOR. I'VE BEEN WITH CIVICORP SINCE IT WAS EAST BAY CONSERVATION CORPS.

JUST CELEBRATED 25 YEARS WITH THE AGENCY. MY FIRST JOB WAS CIVICORP WAS AS A CREW SUPERVISOR IN THE CONSERVATION PROGRAM, WHERE I GOT TO SEE FIRSTHAND THE REALLY POWERFUL IMPACT OF CREW BASED CONSERVATION WORK AND THE POWER OF YOUTH DEVELOPMENT, COMBINED WITH EDUCATION AND JOB TRAINING. THIS CREWS BASED JOB TRAINING WOULD NOT BE POSSIBLE WITHOUT PARTNERS LIKE EAST BAY PARKS.

OUR 42 YEAR PARTNERSHIP HAS BEEN A CORNERSTONE FOR CIVICORPS AND HAS CREATED MANY OPPORTUNITIES FOR CORPS MEMBERS AND STAFF ALIKE, AS THEY'VE MOVED INTO EXCELLENT CAREERS WITHIN THE PARKS DISTRICT AND WITH OTHER LAND MANAGEMENT AGENCIES.

AS A QUICK OVERVIEW AND REMINDER, CIVICORPS SERVES 18 TO 26 YEAR OLDS FROM ALAMEDA AND CONTRA COSTA COUNTIES, MAJORITY OF WHOM RESIDE IN OAKLAND. PARTICIPANTS ARE RECRUITED BY WORD OF MOUTH, BY FRIENDS AND FAMILY, AND BY OUR RECRUITER. OUR PROGRAM IS FULL TIME AND LONG TERM, WITH HOURLY PAY BEGINNING AT $17 AN HOUR.

WE SERVE APPROXIMATELY 200 YOUNG PEOPLE EACH YEAR AND 100 ACTIVE PARTICIPANTS AT ANY GIVEN TIME.

WE ALWAYS HOPE A YOUNG PERSON STAYS WITH US FOR AT LEAST ONE YEAR TO GAIN OUR BASELINE CERTIFICATIONS AND EDUCATION.

SOME STAY WITH US LONGER AS THEY ENTER INTO LEADERSHIP POSITIONS AND CONTINUE PURSUING THEIR EDUCATIONAL GOALS.

ABOUT FIVE YEARS AGO, CIVICORP MADE A DECISION TO COMMIT MORE TIME, ENERGY AND RESOURCES TO GROW OUR CAREER PATHWAYS AND PLACEMENTS PROGRAM, AND WE CLOSED OUR CHARTER SCHOOL AND PARTNERED NOW PARTNER NOW WITH ALAMEDA COUNTY, SO THAT WE COULD REALLY FOCUS THE RESOURCES ON THE YOUNG PEOPLE THAT WERE JOINING US WITH A TRUE INTEREST IN THIS LINE OF WORK.

AND WE EVEN EXPANDED BY OPENING A SATELLITE CAMPUS IN PITTSBURGH TO SERVE EAST COUNTY YOUTH.

WITH THE SUPPORT OF PARTNERS LIKE EAST BAY PARKS, WE'VE BEEN ABLE TO BUILD OUT A COHESIVE TRAINING PROGRAM THAT INVOLVES ALL THE SOFT SKILLS, THE CAREER READINESS REQUIREMENTS AND THE TECHNICAL SKILLS AROUND SEVERAL PATHWAYS.

AND I DID BRING A COUPLE EXAMPLES IF YOU WANT, IF THOSE ARE OF INTEREST SPECIFIC TO EAST BAY PARKS, WE'VE BEEN ABLE TO MOVE YOUNG PEOPLE INTO SUCH POSITIONS AS RANGER ONE, FUELS CREW MEMBER AND SEASONAL STUDENT LABORER ALL HAVE PROVED REWARDING ENTRY POINTS, AND WE CONTINUE TO REFINE OUR PROCESS FOR SUPPORTING YOUNG PEOPLE AND MOVING THEM INTO EXCELLENT LAND MANAGEMENT CAREERS.

I'M NOW GOING TO TURN IT OVER TO OUR CONSERVATION PROGRAM MANAGER, STEVEN ADDISON, TO TALK MORE ABOUT OUR PROGRAM AND OUR PARTNERSHIPS.

GOOD AFTERNOON, BOARD MEMBERS. I'M ACTUALLY REALLY EXCITED TO BE HERE. THANK YOU FOR ALLOWING ME TO BRAG ABOUT OUR WONDERFUL YOUTH DEVELOPMENT PROGRAM THAT IS CIVICORPS.

AS I SAID, I'M STEVEN ALLISON, I REPRESENT THE CONSERVATION DEPARTMENT.

I'VE ACTUALLY BEEN DOING THIS WORK SINCE I WAS 18, AND I PUT ON MY FIRST PAIR OF [INAUDIBLE] BOOTS AND WENT OUT INTO THE WOODS.

CIVICORP OPERATES TWO SOCIAL ENTERPRISES ARE RECYCLING AND OUR CONSERVATION PROGRAM.

WE ALSO HAVE SEVERAL OUTSIDE INTERNSHIPS. WASTE MANAGEMENT CITY OF OAKLAND COASTAL CONSERVANCY CALIFORNIA STATE PARKS AND TECH EXCHANGE.

[02:25:02]

I'M MOST PROUD OF OUR YOUTH AND WORKFORCE DEVELOPMENT ASPECT OF OUR PROGRAM.

NOT ONLY DO WE PROVIDE JOB TRAINING, BUT WE PROVIDE A WIDE RANGE OF WRAPAROUND SERVICES FOR OUR YOUTH.

CIVICORP IS THE ONLY LOCAL CONSERVATION CORPS WITHIN CALIFORNIA THAT HAS MSW MASTERS OF SOCIAL WORK ON STAFF.

CURRENTLY WE HAVE TWO AND A HALF. WE HAVE TWO FULL TIME AND ONE PART TIME MSWS, AND NOT ONLY DO THEY PROVIDE PROVIDE SOCIAL EMOTIONAL SUPPORT, BUT THEY ALSO ASSIST WITH REMOVING OBSTACLES THAT MANY OF OUR YOUNG ADULTS FACE.

SOME OF THESE OBSTACLES HAVE MAY KEEP THEM FROM FULLY REACHING THEIR POTENTIAL WITH CIVICORP AND BEYOND.

OUR MSWS WORK ON YOUTH WITH HOUSING ISSUES, GETTING HEALTH CARE RELATED SERVICES, LEGAL ASSISTANCE.

THEY HELP PREPARE THEIR TAXES. THEY HELP WITH CHILDCARE, PARENTING SUPPORT AND A WHOLE HOST OF OTHER THINGS.

OUR STAFF ALSO PROVIDES DAILY NEEDS. WE SERVE A CONTINENTAL STYLE BREAKFAST EVERY MORNING, AND EACH CREW HAS A LUNCH COOLER TO TAKE OUT WITH THEM EVERY DAY, INCLUDING OUR TRAILS CREW .

WE HAVE TRANSPORTATION ASSISTANCE PROGRAMS FOR YOUNG ADULTS SO THEY CAN MAKE IT TO WORK MONDAY TO THURSDAY.

IT ALSO ALLOWS THEM TO ATTEND OUR TRAININGS ON FRIDAYS, WHERE THEY'RE INSTRUCTED ON A WIDE RANGE OF THINGS, INCLUDING THEIR DRIVER'S LICENSE TRAINING PROGRAM WHICH, AS YOU ALL KNOW, WITHOUT A DRIVER'S LICENSE IS ALMOST IMPOSSIBLE TO GET A JOB IN CONSERVATION WORK. IN THE LAST FEW YEARS, WE'VE HAD 67 YOUNG ADULTS GET THEIR CLASS C DRIVING PERMITS, 37 GOT THEIR CLASS C DRIVER'S LICENSE, THEIR RECYCLING PROGRAM, TEN CORPS MEMBERS GOT THEIR EARNED, I SHOULD SAY, THEIR COMMERCIAL DRIVER'S LICENSE AND 15 EARNED THEIR COMMERCIAL DRIVER'S LICENSE PERMIT.

SO WE DO A LOT. OUR CORP MEMBERS WITHOUT HIGH SCHOOL DIPLOMAS ARE ASSIGNED TO ATTEND SCHOOL WITH OUR PARTNERS TO TALK ABOUT ALAMEDA COUNTY EDUCATION.

OFFICE OF EDUCATION. CORP MEMBERS ATTEND CLASSES TWO DAYS A WEEK AFTER WORK AND ON FRIDAYS.

OUR CAMPUS IS IN HOUSE, WHICH PROVIDES A LOT OF SUPPORT FOR OUR STUDENTS.

SINCE PARTNERING WITH ALAMEDA COUNTY, WE HAVE HAD 66 YOUNG ADULTS EARN THEIR HIGH SCHOOL DIPLOMAS.

WE HAVE A LOT TO BRAG ABOUT. CIVICORP ALSO HAS AN OUTDOOR ADVENTURE PROGRAM.

WE WANT TO MAKE SURE OUR YOUTH GET TIME TO ALSO PLAY IN NATURE, NOT JUST WORK.

OUR VENTURES RANGE FROM WHITEWATER RAFTING, WEEKEND CAMPING TRIPS, DAY TRIPS TO RUSSIAN RIVER AND MUIR WOODS.

WE ALSO DO SOME SKI TRIPS WE HAVEN'T DONE IN A WHILE, BUT WE'RE GOING TO GET THAT BACK ON. WE ALSO HAVE MANY SOCIAL CLUBS LIKE A COOKING CLUB, AN ANIME CLUB, AN ARTS AND INVESTMENT CLUBS THAT CORP MEMBERS CAN PARTICIPATE IN ON FRIDAYS.

AND I'M GOING TO STOP THERE. UNDER TESSA'S LEADERSHIP AND THE DEDICATED STAFF TO THE CORE CIVICORP IS LIVING UP TO ITS MISSION OF REENGAGING OUR YOUNG ADULTS.

AND WITH THAT SAID, I WOULD LIKE TO HAVE TWO OF OUR CURRENT CREW MEMBERS SPEAK ABOUT THEIR EXPERIENCE.

THANK YOU.

GREETINGS. MY NAME IS [INAUDIBLE] O'PARKER. I'VE BEEN A MOSTLY QUIET MEMBER OF CIVICORPS FOR TEN MONTHS NOW, BUT FOR THE PAST NINE MONTHS, I'VE BEEN A PART OF AMAZING TEAM BETTER KNOWN AS C-5 OR THE CIVICORP TRAIL CREW.

DURING THIS TIME, I'VE WORKED ON PROJECTS THAT STRENGTHEN MY SKILLS AND ALLOWED ME TO GIVE BACK TO PUBLIC LANDS.

ONE OF MY PROUDEST ACCOMPLISHMENTS IS BUILDING THE PACIFIC PEAK TRAIL FROM SCRATCH, FEATURING MY TRAILS CREW AND THE EAST BAY REGIONAL PARKS TRAIL CREW. I'VE ALSO HAD THE PLEASURE OF CONTRIBUTING TO FOUR BRIDGE PROJECTS, INCLUDING TWO IN THE TILDEN NATURE AREA, ONE ON THE TRES SENDAS TRAIL AND RAILROAD REGIONAL PARK, AND THE MOST RECENT ONE, A 24 FOOT PUNGENT BRIDGE AND DON CASTRO THROUGH CIVICORP . I'VE EARNED MULTIPLE CERTIFICATIONS, AND A SHORT TIME I EARNED MY CHAINSAW ONE, MY PULSAR CERTIFICATION, BRUSH CUTTING CERTIFICATION, OSHA TEN CERTIFICATION, PLANT IDENTIFICATION, AND E-WASTE CERTIFICATES.

I WAS ALSO ABLE TO COMPLETE A WILDLAND FIRE TRAINING AND WATERSHED MANAGEMENT COURSE WHERE I RECEIVED MY S100, 200, 700, AND 800. THE INCIDENT COMMAND SYSTEMS AND PASSED THE CAL FIRE PAC TEST PROVING MY READINESS FOR WILDLAND FIREFIGHTING.

BEYOND WORK, I'VE ALSO HAD A CHANCE TO GO ON CAMPING TRIPS TO HUMBOLDT AND CALAVERAS.

[02:30:02]

THE OAKLAND MUSEUM. AND I'VE ALSO JOINED THE ART CLUB.

AND ON THE SIDE, I'VE BEEN QUIETLY BUILDING A MUSIC CLUB WITH THE BRYANS.

BUT MOST IMPORTANTLY, I'VE BEEN ABLE TO ACCOMPLISH ALL THIS WHILE WORKING TOWARDS MY HIGH SCHOOL DIPLOMA, EARNING DUAL CREDITS FOR BOTH HIGH SCHOOL AND COLLEGE.

LOOKING BACK, I SEE HOW MUCH I'VE GROWN NOT JUST IN SKILLS, BUT IN CONFIDENCE.

CIVICORP HAS GIVEN ME THE TOOLS TO BUILD MY FUTURE AND I'M EXCITED TO KEEP GROWING.

THANK YOU.

GOOD AFTERNOON EVERYONE. I'M ONE OF THE BRYAN'S THAT [INAUDIBLE] MENTIONED.

I'M BRYAN [INAUDIBLE]. I'VE BEEN WITH CIVICORP FOR ROUGHLY TEN MONTHS, NINE OF THEM BEING ALONGSIDE A TRAILS CREW WITH THE EAST BAY REGIONAL PARKS TRAILS GROUP.

I JOINED CIVICORP BECAUSE THEY OFFERED THE S212 CERTIFICATION.

BUT ONCE JOINING CIVICORP , I REALIZED THAT WHAT THEY OFFER IS MUCH MORE THAN JUST A CHAINSAW CERTIFICATION.

THEY OFFER A VARIETY OF CAREER PATHS, AND ONE JUST HAPPENED TO ALIGN WITH THE DIRECTION THAT I WAS ATTEMPTING TO GO.

TRAILS CREW HAS LED ME TO BECOME A BETTER VERSION OF MYSELF BY PROVIDING KNOWLEDGE AND HANDS ON TRAINING, PHYSICAL TRAINING, AND THE CAMARADERIE THAT IS NEEDED TO PERFORM THE TASKS THAT ARE GIVEN TO US BY FURNISHING ME WITH ALL THESE AMAZING TRAITS.

CIVICORPS AND THE TRAILS CREW PREPARED ME FOR MY FIRST SEASON OF WILDLAND FIREFIGHTING, AND IS NOW HELPING ME PREPARE FOR MY SECOND.

CIVICORPS HAS ENABLED ME TO GROW AS AN INDIVIDUAL BY HELPING ME SET GOALS AND LEADING ME IN THE DIRECTION TO COMPLETING THEM.

THEY HAVE HELPED ME REALIZE HOW MUCH I ENJOY WORKING OUTDOORS, WHILE ALSO GIVING BACK TO THE COMMUNITIES THAT I GREW UP IN.

BEING ON THE EAST BAY REGIONAL PARK DISTRICT TRAILS CREW HAS SHOWN ME THAT SOMEONE LIKE MYSELF CAN BE PART OF THE PARK DISTRICT , AND HONESTLY, THAT GAVE ME THE FUEL THAT I NEEDED.

SINCE MY START WITH TRAILS CREW IT HAS BEEN MY GOAL TO JOIN EAST BAY REGIONAL PARK DISTRICT, EITHER AS A MEMBER OF THE FUELS CREW OR AS A PARK RANGER.

I'M THANKFUL FOR ALL THE PARK STAFF BEHIND THE SCENES FOR THE TIME AND EFFORT THEY PUT INTO MAKING TRAILS CREW HAPPEN, AND ALLOWING C5 TO GET OUT IN THE FIELD ALONGSIDE EAST BAY REGIONAL PARK DISTRICT TRAIL CREW.

I'M ALSO THANKFUL TO HAVE BEEN GIVEN THE OPPORTUNITY TO WORK ALONGSIDE PARK STAFF SUCH AS ROSS, PATRICK, LANCE, SAL, ERICH, MICHAEL, RYAN, COLIN AND THE MANY OTHERS THAT ALLOW US TO PICK THEIR BRAINS DAY IN AND DAY OUT, PROVIDING US WITH THE KNOWLEDGE AND EXPERIENCE THAT ENABLE US TO HONE OUR SKILLS AND PUT OUR CERTIFICATES TO USE.

WITH THAT BEING SAID, I'M GLAD I JOINED THE TRAILS CREW AND I RECOMMEND IT TO ALL CORPS MEMBERS.

THANK YOU ALL FOR YOUR TIME. WE'RE HAPPY TO ANSWER ANY QUESTIONS OR YEAH. ARE THERE ANY QUESTIONS FROM THE BOARD? YEAH. GO AHEAD. YEAH. I'M CURIOUS ABOUT PARTICIPANTS, YOU KNOW, YOUNG ADULTS WHO DON'T LIVE IN HAYWARD, OAKLAND, SAN LEANDRO, BERKELEY, RICHMOND. YOU KNOW, WHAT TYPE OF OUTREACH MIGHT THERE BE TO THOSE COMMUNITIES OUTSIDE THOSE CITIES THAT ARE WITHIN OUR EAST BAY REGIONAL PARK DISTRICT SERVICE AREA OF ALAMEDA AND CONTRA COSTA COUNTIES? AND THEN I CAN ALSO SHARE MORE SPECIFICALLY, YOU KNOW, I REPRESENT A PART OF THE DISTRICT THAT INCLUDES A LOT OF RANCHES.

YOU KNOW, IN THE SOUTH LIVERMORE VALLEY, WE HAVE 3500 ACRES OF AGRICULTURE.

RIGHT NOW, THERE'S A BIG CONVERSATION HAPPENING ABOUT THE 5000 RESIDENTS WHO LIVE AT THE ALAMEDA COUNTY FAIRGROUNDS WHO SUPPORT THE HORSE RACING INDUSTRY THAT WAS THERE OVER THE PAST YEAR AND MIGHT NOW BE MOVING, AND THESE RESIDENTS MAY BE LOSING THEIR HOUSING.

AND SOMETIMES, YOU KNOW, THERE'S CHILDREN IN THESE FAMILIES AND THEY MAY OR MAY NOT BE ENROLLED IN OUR LOCAL SCHOOLS.

AND I FIND THAT A LOT OF PROGRAMS FORGET THAT THERE ARE YOUNG PEOPLE, YOU KNOW, LIVING ON SOME OF THESE FARMS, LIVING ON SOME OF THESE RANCHES, LIVING AT THE ALAMEDA COUNTY FAIRGROUNDS THAT COULD ALSO BENEFIT FROM SERVICES SUCH AS CIVICORP .

I'M JUST CURIOUS ABOUT YOUR OUTREACH. YEAH. THANK YOU.

I THINK THAT'S A FANTASTIC QUESTION. WE HAVE A RECRUITER WHO'S REALLY NETWORKED IN WITH ALL THE SOCIAL SERVICE ORGANIZATIONS AND THE ALTERNATIVE

[02:35:05]

BUT TO BE HONEST, I'M NOT SURE WE HAVE CONNECTED WITH THOSE, SPECIFIC COMMUNITIES.

AND SO I GUESS I WOULD JUST LOVE TO SAY THAT LET'S MAKE THAT HAPPEN.

I THINK THERE'S NO REASON WHY NOT. WE STARTED OUR PITTSBURGH SATELLITE BASED ON THE OBSERVATION THAT WE WERE HAVING A LOT OF YOUNG PEOPLE COME FROM EAST COUNTY INTO OAKLAND, AND RETENTION OF THOSE YOUNG PEOPLE WAS HARD BECAUSE THAT'S A LONG WAY TO TRAVEL FIVE DAYS A WEEK.

AND SO ULTIMATELY OPENED UP OUR SATELLITE TO BETTER SERVE THOSE YOUNG PEOPLE.

SO WE'RE ALWAYS LOOKING AT AND MAKING SURE THAT WE ARE ACCESSIBLE AND DOING THE OUTREACH WE NEED TO TRY TO ENGAGE ALL THE YOUNG PEOPLE FROM ALAMEDA AND CONTRA COSTA COUNTIES. THANK YOU. YEAH. ALL RIGHT.

ANY OTHER QUESTIONS? LET'S CHECK WITH DIRECTOR ECHOLS.

DO YOU HAVE ANY QUESTIONS? NO. OKAY. DIRECTOR WAESPI.

YEAH. I JUST WANTED TO THANK YOU FOR ALL YOUR GREAT WORK. AND I GUESS THE QUESTION I WOULD ASK IS WHAT LIMITATIONS DO YOU FACE? I MEAN, DO YOU FACE IS IT LACK OF STUDENTS? IS IT LACK OF WORK PROVIDING WORK FOR FOR YOUR FOLKS.

THE SPACE IN YOUR FACILITIES. I SEE YOU HAVE SATELLITE OFFICES NOW.

YOU SEEM TO BE EXPANDING TO ME, AND IT'S SUCH A GREAT PROGRAM.

I'M WONDERING IF YOU FACE ANY DIFFICULTIES THAT YOU'D BE WILLING TO TALK ABOUT.

YEAH. THANK YOU. I THINK OUR DIFFICULTIES THAT STEVEN WOULD PROBABLY SAY IS WE NEED MORE YARD SPACE BECAUSE OUR FLEET IS LIKE A JENGA PUZZLE, AS WHEN THEY COME IN THE EVENINGS. BUT REALLY, WHAT LIMITS US IS FEE FOR SERVICE CONTRACTS.

SO WE CAN ONLY BRING IN AS MANY YOUNG PEOPLE AS WE HAVE PAID CONTRACTS TO PUT THEM OUT ON.

SO WE DON'T BRING IN MORE YOUNG PEOPLE THAN WE HAVE WORK FOR.

SO THAT'S WHY THIS CONTRACT WAS FABULOUS IN SO MANY WAYS.

IT REALLY INCREASED THE TECHNICAL SKILL BUILDING THAT OUR YOUNG PEOPLE COULD DO, WHICH REALLY BRIDGED A GAP THAT WE HAD SEEN BETWEEN THE FUELS MANAGEMENT AND NOW HAVING MORE SUCCESS GETTING YOUNG PEOPLE INTO JOBS BECAUSE OF BRIDGING THAT TECHNICAL GAP.

SO I THINK WE'RE ALWAYS LOOKING AT HOW WE CAN ELEVATE.

WE JUST STARTED A CONTRACT WITH CONTRA COSTA COUNTY FIRE PROTECTION DISTRICT OUT IN PITTSBURGH, WHICH IS FABULOUS, AND WE'RE WORKING ON A CONTRACT WITH CONTRA COSTA COUNTY FLOOD CONTROL TO ALSO JUST BUILD CREW CAPACITY, PROVIDE SERVICE TO THE COMMUNITY AND IN AND REALLY GROW THE PATHWAYS THAT WE HAVE FOR OUR YOUNG PEOPLE TO MOVE INTO THESE GREAT CAREERS.

REALLY, I WANT EVERYBODY TO FIND A CAREER THAT THEY LOVE.

YOU KNOW, I FIND THAT I LOVE MY JOB, AND OUR GOAL IS FOR CORPS MEMBERS TO MOVE ON INTO JOBS THAT THEY LOVE SHOWING UP FOR.

THANK YOU. ANY OTHER QUESTIONS? I HAVE A QUESTION.

IT'S ALMOST RANDOM, BUT NOT QUITE. DO YOU EVER DO WORK IN CREEKS TO ELIMINATE INVASIVE SPECIES.

DOES ANYBODY TAKE. LOTS OF WORK. YOU GUYS? YEAH.

WELL, THERE IS LOTS OF WORK. I'M JUST WONDERING IF IT'S IF YOU HAVE THE OPPORTUNITY TO DO THAT.

YOU DO. YOU WANT TO SPEAK TO ANY OF THOSE? YES.

SURE. WELL. YES. WE PARTNER WITH ALAMEDA COUNTY FLOOD CONTROL, AND WE DO A LOT OF WORK IN THEIR CREEKS FOR INVASIVE SPECIES REMOVAL.

WE PARTNERED WITH THE CITY OF WALNUT CREEK AND GOT TO WORK AT CIVIC PARK, AND WE DID.

OH, GOODNESS. I FORGET HOW MANY DUMPSTER LOADS OF INVASIVE SPECIES REMOVAL THERE ALSO.

SO IT'S KIND OF A MAINSTAY. WE HAVE YOU KNOW, WE HAVE KNEE HIGH WADERS, WE HAVE FULL ON WADERS.

WE GET IN THERE AND MAKE IT HAPPEN. SO LIKE YEAH WE WORK IN MOST CREEKS IN THE EAST BAY.

SO WELL I'M HAPPY TO HEAR THAT. I KNOW THERE'S A ROBUST VOLUNTEER EFFORT GOING ON IN CONTRA COSTA COUNTY.

AND THEY'VE MADE GREAT PROGRESS. BUT I DON'T BELIEVE IT CAN BE REALLY, REALLY ACCOMPLISHED WITHOUT A GROUP LIKE YOURS.

SO THAT'S GREAT. THANKS. GREEN ONLY WORKS WHERE THERE'S GREEN, RIGHT.

YOU GOT TO PAY FOR THE WORK AND THE LABOR, AND IT'S NOT FREE OR CHEAP. SO.

YEAH. SO NO, IT IS IT'S ONE OF THE THINGS AND WE ACTUALLY DO VOLUNTEER EVENTS IN CONTRA COSTA.

WE DID ONE IN THE CREEK NOT THAT LONG AGO. AND SO WE TRIED TO GET BACK IN THE COMMUNITY THAT WAY ALSO. OKAY. GREAT. THANK YOU. DO WE HAVE ANY PUBLIC COMMENTS ON THIS? YES. PRESIDENT MERCURIO. WILLIAM HOWE, YOU HAVE THREE MINUTES, SIR.

OKAY. THANK YOU. OH, OKAY. SORRY ABOUT THAT. STILL LEARNING HOW THE MICROPHONE WORKS.

HI. GOOD AFTERNOON. BOARD OF DIRECTORS , GENERAL MANAGER , GENERAL COUNSEL.

MY NAME IS WILLIAM HUFF, PRESIDENT OF AFSCME LOCAL 2428.

AND I WOULD LIKE TO COME OUT OF THE GATE SAYING THAT AFSCME 2428 IS SUPPORTIVE OF WORKFORCE DEVELOPMENT AND YOUTH DEVELOPMENT.

I MYSELF CAME UP THROUGH THE CORPS WORLD. IF I HADN'T JOINED THE CONSERVATION CORPS WHEN I WAS 21,

[02:40:04]

AND I'D LIKE TO THINK IT HAS MADE THE LIVES OF OTHERS BETTER BECAUSE OF MY JOB NOW.

SO OPENING WITH THAT, I WE FEEL LIKE THE SCOPE OF WORK AS DESCRIBED IN THE CONTRACT FOR SERVICES AND THE STAFF REPORT FOR THE MARCH 4TH BOARD MEETING, WHICH IS THIS ONE, BOTH READ TO US AS CONTRACTING OUT BARGAINING UNIT WORK AND ARE NOT IN LINE WITH THE WORKFORCE DEVELOPMENT. NOW, I SAY THIS EVEN THOUGH EARLIER WE WERE TOLD THAT THEY DO NOT WORK INDEPENDENTLY, NOR DOES IT SUPPLANT STAFF WORK. BUT READING THROUGH IT, DESCRIBING THEM AS A FORCE MULTIPLIER AND SPEAKING ABOUT HOW THEIR WORK WILL TAKE PLACE IN AREAS THAT DO NOT GET ROUTINE MAINTENANCE BY PARK DISTRICT STAFF DUE TO BEING REMOTE AND LIMITED ACCESS.

IT DOES READ IN A CERTAIN WAY, LIKE THERE'S MORE OF A FOCUS ON THE WORK THAN ON THE DEVELOPMENT OF THE YOUTH.

AND I'VE SEEN CIVICORP WORKING. THEY DO AWESOME WORK.

THE BRIDGES THAT YOU WERE REFERENCING EARLIER, KILLER.

SO I'M NOT BESMIRCHING THEM FOR THEIR WORK OR ANYTHING.

WE MET AND CONFERRED OVER THIS IN JANUARY. WE HAD NOT COMPLETED THE DISCUSSION.

WE WERE UNDER THE IMPRESSION THAT WE WERE GOING TO GET A CHANCE TO TALK TO SOMEONE FROM OPERATIONS IN FEBRUARY. IT FELL OFF OF THE AGENDA FOR MEET AND CONFER.

AND SO WE ARE ASKING FOR A LITTLE BIT LONGER TO DISCUSS AND WORK THROUGH THIS.

WE FEEL LIKE THE LANGUAGE CAN BE CHANGED IN SUCH A MANNER THAT WE CAN MOVE FORWARD, AND EVERYONE WILL BE HAPPY.

IT IS NOT MY PERSONAL GOAL NOR OUR GOAL TO OBSTRUCT OR KEEP THIS FROM HAPPENING.

WE JUST WANT TO MAKE SURE THAT WHEN IT DOES HAPPEN, WE ARE NOT DOING A DISSERVICE TO THE YOUTH WHO WE ARE SPEAKING ABOUT. TRYING TO HELP BY MAKING SURE THE LANGUAGE HERE IS CLEAR FOR ALL PARTIES.

AND I BELIEVE I'D ALSO LIKE TO SAY THAT THE BLAZE A TRAIL FOR THOSE LOOKING TO FOLLOW IN THEIR FOOTSTEPS, WAS AWESOME. THAT WAS A GREAT LINE. I BUT YEAH, THANK YOU VERY MUCH FOR LISTENING.

ALL RIGHT. THANK YOU. SO I'D LIKE TO ASK A QUESTION OF THE GENERAL MANAGER , I GUESS.

IF WE WERE TO APPROVE THIS, WOULD THERE NOT STILL BE OPPORTUNITIES TO DISCUSS DETAILS OF HOW THIS IS HOW THIS IS IMPLEMENTED? YEAH. I'M GOING TO LET MAYBE BETWEEN OUR DGMS AND OUR AGM, I THINK THAT THEY'VE BEEN IN DEEP CONVERSATION ABOUT THIS.

SO I'LL LET THEM THUMB WRESTLE OVER WHO WANTS TO RESPOND TO THAT.

[LAUGHTER] IT JUST SOUNDS LIKE IT'S A MATTER OF WORKING OUT SOME DETAILS THAT THAT THERE'S NOT AGREEMENT ON, BUT THAT IT MIGHT BE ACHIEVABLE. YEAH. GOOD AFTERNOON, PRESIDENT MERCURIO.

OH, I'M SORRY TO ADD TO HIS QUESTION. WHEN YOU'RE EXPLAINING, COULD YOU BRING UP SOME OF THE LANGUAGE ISSUES OR WITHIN THE CONTRACT THAT WE MIGHT BE ABLE TO FIX. SURE. I'LL TRY AND ADDRESS IT.

AND A PARTICULAR CONCERN. I MEAN, WHY NOT GET THIS OUT HERE? IF I DON'T REMEMBER EVERYTHING, LET ME KNOW. ANOTHER BIG ONE THAT I WANT TO TEE UP FOR YOU IS.

I FEEL WILLIAM WASN'T HERE, BUT WE SPENT WEEKS NEGOTIATING WITH 2428.

THE SCOPE OF PROJECT, THE IMPLICATIONS OF OUTSOURCING.

WE ENDED UP WITH A NEGOTIATED ARRANGEMENT THAT FULFILLED THE 2428S NEEDS AND ASSURANCES I WAS HERE. IT WAS IMPORTANT TO ME.

I KNOW DENNIS WAS HERE AND WE PUSHED MANAGEMENT, JIM O'CONNOR AT THE TIME TO SAY, HEY, GET THIS WORKED OUT.

AND IT ENDED UP WITH A PROGRAM THAT WHERE THESE FOLKS WERE AIDED, OVERSEEN, SUPERVISED BY BRAND NEW FTE PARK RANGERS AND NEW PARK RANGERS SUPERVISORS, WHICH WERE REALLY IMPORTANT TO CREATE AS THERE'S A BOTTLENECK OF SUPERVISORIAL OPPORTUNITIES THAT DIRECTOR WAESPI, HAS TALKED TO ME A LOT ABOUT.

SO THIS WAS ALL LITIGATED IN THE SENSE OF A NEGOTIATION, AND IT WAS SUCCESSFUL, AND THERE WERE ISSUES THAT WERE STILL ON THE TABLE.

AND WE TOLD JIM, YOU KNOW, WORK THOSE OUT, TOO.

WE WANTED TO MOVE FORWARD WITH THE PROGRAM. WE'RE ALL SUPER EXCITED AND PROUD OF THIS PROGRAM.

AND I JUST I JUST WANT TO KNOW THAT THAT'S NOT JUST SOME RANDOM MEMORY THAT I HAVE.

SO I'M TEEING THAT UP. SURE, I'LL TRY AND ANSWER EVERY QUESTION, BUT IF I OH, THERE'S ANOTHER HAND MINE MIGHT ACTUALLY BE HOPEFULLY THE ONE THAT [INAUDIBLE]. I JUST NOTICED ON THE RESOLUTION WE USE THE DATE FEBRUARY 4TH TWICE IN THE 1,

[02:45:01]

SO ANYWAY, THAT MAY REQUIRE A CLARIFICATION, BUT MAYBE I DON'T HAVE IT IN FRONT OF ME.

BUT PRESIDENT MERCURIO. ALLYSON COOK, ASSISTANT GENERAL MANAGER OF HUMAN RESOURCES TEMPORARILY, AS WELL AS DEPUTY GENERAL MANAGER . SO I'M GOING TO TRY AND ADDRESS EACH QUESTION BEFORE DOING SO.

I DO WANT TO ACKNOWLEDGE AFSCME LOCAL 2428 AND WILLIAM HUFF'S COMMENTS.

WE DO UNDERSTAND THE UNION'S CONCERN ABOUT BARGAINING UNIT WORK AND PRESERVING UNION JOBS, BUT THIS IS ABOUT WORKFORCE DEVELOPMENT AND ABOUT TRAINING THE PARTICIPANTS AND THE BENEFITS TO THE PARTICIPANTS.

SO I JUST WANT TO SAY THAT OUT OF THE GATE THAT FROM AN HR PERSPECTIVE, WE DO NOT BELIEVE THIS IS TRADITIONAL CONTRACTING OUT, THOUGH WE UNDERSTAND THE UNION HAS A DIFFERENT PERSPECTIVE.

WITH RESPECT TO MEET AND CONFER WITH THE UNION THIS ITEM WAS ORIGINALLY SCHEDULED TO GO IN EARLY JANUARY OF 2025, AFSCME RAISED CONCERNS THAT IT HADN'T BEEN NOTICED TO THEM.

THERE IS A CURRENT DISPUTE BETWEEN HUMAN RESOURCES AND AFSCME AS TO WHETHER THIS CONTRACT NEEDS TO BE NOTICED, AND THIS GOES TO DIRECTOR ESPAÑA'S QUESTION ABOUT THE CURRENT MOU WITH AFSCME, WHICH INVOLVES ARTICLE 19, WHICH HAS SOME VERY ANTIQUATED LANGUAGE THAT NO LONGER APPLIES TO MANY OF THE WORKFORCE DEVELOPMENT PROGRAMS THAT WE HAVE WITH THE TWO COUNTIES.

THAT BEING SAID, WE UNDERSTOOD THAT THERE IS AN ISSUE WITH THIS CONTRACT EVERY TIME IT COMES TO THE BOARD.

AND SO WE WANT TO WORK WITH THE UNION IN REVISING ARTICLE 19 SO THAT WE RESOLVE THESE ISSUES BEFORE THEY COME TO THE BOARD.

AND SO RIGHT NOW, THE PARTIES ARE ENGAGED IN SETTLEMENT NEGOTIATIONS OVER ARTICLE 19.

AND I'M VERY HOPEFUL THAT WE CAN REACH AGREEMENT SO THAT WE MEET TO HAVE THESE CONVERSATIONS BEFORE THIS ITEM COMES TO THE BOARD.

SO I AM COMMITTED TO TRY TO REACH A RESOLUTION USING BEST EFFORTS WITH AFSCME, AND THOSE CONVERSATIONS OCCURRED AS EARLY AS TODAY OVER ARTICLE 19. SO WE ARE HOPEFUL THAT THIS WILL RESOLVE THIS ISSUE.

WITH RESPECT TO DIRECTOR COFFEY'S COMMENTS. THIS ALSO PREDATES ME, NOT JUST WILLIAM, BUT MY UNDERSTANDING IS THAT BACK IN 2020, DIRECTOR COFFEY, YOU ARE ACCURATE. JIM O'CONNOR, THE FORMER AGM OF OPERATIONS, PUT FORWARD A PROPOSAL THROUGH THE 2021 BUDGET TO ADD FUNDING FOR STUDENT CONSERVATION CREW, A SECOND CREW.

AND WHEN THAT BUDGET PROPOSAL CAME BEFORE THE BOARD AFSCME AT THAT TIME, OBJECTED TO IT, AT WHICH POINT THE BOARD STILL APPROVED THE BUDGET AND THE SECOND STUDENT CONSERVATION CREW.

HOWEVER, THERE WAS A DIRECTION TO HUMAN RESOURCES, MY PREDECESSOR AND AFSCME TO SIT DOWN AND TRY AND NEGOTIATE SOME TYPE OF AGREEMENT SO THAT WE WOULD RESOLVE THIS ISSUE. SO AGAIN, PRIOR TO MY ARRIVAL IN ABOUT FEBRUARY OF 2021, THE PARTIES SAT DOWN TO TRY AND NEGOTIATE AND ULTIMATELY REACHED AGREEMENT ON A SIX MONTH PILOT THAT ADDED POSITIONS. THREE POSITIONS, I BELIEVE THAT ULTIMATELY BECAME THE FOUNDATION OF THE SMALL TRAILS CREW THAT OPERATES, I BELIEVE, OUT OF LAS TRAMPAS. THEREAFTER, WE HAVE RECLASSIFIED SOME OF THOSE ADDITIONAL POSITIONS.

IT'S NOW A SMALL TRAILS CREW SUPERVISOR. WE'VE ADDED A SMALL TRAILS CREW LEADER, AS WELL AS DOUBLING THE SIZE OF THE CREW SINCE 2021 UNDER THE GENERAL MANAGER 'S DIRECTION. SO WE HAVE ADDED TO THE SMALL TRAILS CREW .

WE HAVEN'T ELIMINATED ANY BARGAINING UNIT POSITIONS IN ORDER TO ENGAGE IN THIS PARTNERSHIP WITH CIVICORPS, SO I THINK THAT ADDRESSES EVERYTHING EXCEPT PERHAPS THE RESOLUTION ISSUE.

AND I THINK MAX WANTS TO ADD SOMETHING. HE IS ALSO A DEPUTY GENERAL MANAGER .

THANKS. AND YES, THERE ARE TWO INCORRECT DATES THAT SAY FEBRUARY 4TH IN THE RESOLUTION, SO WE WILL ADJUST THAT.

OKAY. HOPEFULLY THAT ANSWERS EVERYONE'S QUESTION.

OKAY I STILL HAVE A QUESTION, ALLYSON. SURE. YEAH.

GO AHEAD. YEAH. SO FIRST OF ALL, I ALSO WANT TO SAY THAT I FULLY AND COMPLETELY SUPPORT CIVICORP .

I THINK YOU ALL DO WONDERFUL WORK, AND IT'S GREAT TO SEE YOU HERE TODAY.

AND I ALSO USED TO WORK IN WORKFORCE DEVELOPMENT MYSELF.

SO THIS IS ALSO WHERE MY HEART IS. I GUESS MY ONLY QUESTION IS I DON'T I DON'T UNDERSTAND IF THERE'S JUST IF THERE'S SOME SMALL WORD CHANGES THAT CAN BE MADE, WHY WOULDN'T WE MAKE THOSE CHANGES IF IT'S NOT GOING TO IMPACT THE WORK WITH CIVICORP.

M AYBE, ALLYSON, MAYBE YOU CAN SAY WHY YOU WOULDN'T HAVE THOSE CONVERSATIONS TO TO COMPLETE THE CHANGES THAT WERE REFERRED

[02:50:08]

I THINK EVEN AFSCME WOULD ADMIT THAT I'M ALWAYS WILLING TO MEET WITH THEM AND TALK.

I WILL SAY THE ISSUE WITH THE STAFF REPORT WAS RAISED TO ME LAST THURSDAY.

WE HAD TO HAVE THE PACKET READY BY FRIDAY. THEY HAD REQUESTED SOME REVISIONS TO THE STAFF REPORT, WHICH WE AGREED WERE CONFUSING. AND THAT'S WHY AGM GOORJIAN MADE THE CLARIFICATIONS AT THE OUTSET OF HER PRESENTATION, BECAUSE WE DIDN'T WANT TO MAKE IT SEEM LIKE THEY WORK INDEPENDENTLY, OR THAT THIS WAS TRADITIONAL CONTRACTING OUT.

SO WE DID THAT. WE DID NOT LEARN OF THE CONTRACTING ISSUE UNTIL LATE LAST NIGHT.

AFSCME HAD NOT RAISED IT UNTIL THAT TIME, SO WE DIDN'T HAVE AN OPPORTUNITY TO MEET.

AND THIS IS A VERY IMPORTANT CONTRACT THAT WE BELIEVE SHOULD MOVE FORWARD AT THIS TIME.

THAT DOESN'T PRECLUDE DISCUSSIONS ON HOW WE DO THIS GOING FORWARD.

I THINK EVERYONE HERE FROM OPERATIONS AND THE GENERAL MANAGER 'S OFFICE AND HUMAN RESOURCES AGREES.

WE NEED TO REFRAME THE CONVERSATION ON THE PARTNERSHIP WITH CIVICORP.

YOU KNOW, WE HAVE CHARACTERIZED IT AS TRAIL MAINTENANCE AND TRAIL WORK.

IT IS SO MUCH MORE THAN THAT, AND WE ARE COMMITTED TO MAKING SURE THAT WE ACCURATELY DESCRIBE THAT PARTNERSHIP GOING FORWARD.

JUST TO ADD THE I THINK THE LANGUAGE THAT'S BEING REQUESTED IS IN THE ANALYSIS PORTION OF THE STAFF REPORT, NOT IN THE RESOLUTION. SO IT DOESN'T AFFECT WHAT YOUR BOARD WOULD VOTE ON.

YOUR BOARD'S VOTING ON THE RESOLUTION. ALL RIGHT.

ANY OTHER . YES WE HAVE CONTINUED QUESTIONING.

SO TWO QUESTIONS. ONE IN THE ANALYSIS IT MENTIONS THE 12 MONTH PERIOD DURING 2025.

IS THAT A ROLLING 12 MONTHS? SO IF THIS WERE TO BE APPROVED TODAY, WOULD IT BE FROM TODAY THROUGH 12 MONTHS FROM NOW, OR WOULD IT BACKDATE TO JANUARY 1ST AND BE JUST FOR CALENDAR YEAR 25, 2025? THIS WILL BE FOR THE CALENDAR YEAR OF 2025. AND THIS IS WHAT'S SO INSTRUMENTAL ABOUT THIS CONTRACT.

THIS NOW GIVES US A YEAR ROUND PROGRAM TO FOCUS ON THIS TRAINING FOR STAFF, AND IT ALSO PUTS US IN A READINESS POSITION SHOULD ANY EVENTS HAPPEN WITHIN THAT YEAR'S TIME. AND SO THAT'S WHY WE REALLY LIKE EXTENDING THIS CONTRACT AND MAKING IT A YEAR ROUND PROGRAM, BECAUSE PARKS DON'T CLOSE. OUR WEATHER IS CHANGING.

AND SO WE HAVE TO ADAPT TO WHAT'S HAPPENING, AND WE SEE A POSITION AND A SPOT FOR CIVICORPS TO BE ACTIVELY WORKING IN OUR PARKS FOR A 12 MONTH PERIOD. SO JUST TO CLARIFY. SO THIS WOULD END DECEMBER 31ST, 2025.

AND THEN WE WOULD BE LOOKING AT ANOTHER ONE FOR 2026, ANOTHER CONTRACT.

CORRECT. AND THEN WHAT HAS HAPPENED OVER THE PAST I MEAN WE'RE NOW IN MARCH.

AND I BELIEVE THE PREVIOUS SIX MONTH CONTRACT ENDED DECEMBER 31ST, 2024.

IS THAT CORRECT? SO WHAT HAS HAPPENED THEN SINCE JANUARY 1ST, 2025 TO TODAY? WHAT DO YOU MEAN WHAT HAS HAPPENED? LIKE, HAVE WE STOPPED WORK AND THEY'RE NOT IN OUR PARKS? YES. SO THEY'VE KIND OF BEEN IN A HOLDING PATTERN UNTIL WE'VE COME TO THE BOARD TO BE ABLE TO GET APPROVAL FOR THIS.

AND THEN MY NEXT QUESTION, BECAUSE THIS SEEMS TO BE COMING UP.

SO I DO SEE THAT SOME OF THE LANGUAGE IN THE STAFF REPORT THAT.

THANK YOU FOR CLARIFYING THAT AT THE BEGINNING OF THE PRESENTATION.

IT DOESN'T IMPACT THE RESOLUTION FROM WHAT I CAN SEE.

SO I'M CURIOUS. IT SEEMS LIKE THERE'S A LITTLE BIT OF A DISCONNECT THOUGH, BECAUSE WE HAVE THIS RESOLUTION, AND THEN IT SOUNDS LIKE THERE WILL BE A CONTRACT BETWEEN EAST BAY REGIONAL PARK DISTRICT AND CIVICORP .

YOU KNOW, AND I GUESS, YOU KNOW, WE AS A BOARD OF DIRECTORS , WE DON'T REVIEW THAT SPECIFIC CONTRACT.

BUT WHEN THERE IS THIS DISCONNECT WITH YOU KNOW, OUR EMPLOYEES WITH AFSCME 2428, YOU KNOW, HOW CAN WE HELP? YOU KNOW, FIND THAT COMMON GROUND RESOLUTION WITH OUR EMPLOYEES? SURE. DIRECTOR SANWONG. SO AGAIN, I THINK THE PRESENTATION TODAY HAS SHOWN WHAT THE WORK ACTUALLY IS.

THE CONTRACT MAY HAVE NOT FULLY EXPLAINED IT, CERTAINLY NOT AS WELL AS THE PARTICIPANTS THAT CAME HERE TODAY AS WELL AS TESSA.

SO I THINK, AGAIN, THIS IS OUR COMMITMENT TO GOING FORWARD, THAT IN FUTURE CONTRACTS, WE WILL MAKE SURE THAT WE ACCURATELY DESCRIBE WHAT IT IS BECAUSE IT IS NOT CONTRACTING OUT BARGAINING UNIT WORK.

SO WE REALLY NEED TO FULLY EXPLAIN IT. AND YEAH, AND I WOULD ALSO JUST ADD I THINK AND ROBERT, YOU CAN CORRECT ME IF I'M WRONG, BUT I DO BELIEVE WE'VE ALSO DONE A COUPLE OF INFORMATIONAL PRESENTATIONS TO THE OPERATIONS COMMITTEE.

[02:55:04]

SO I THINK IT'S SOMETHING WE WOULD LOVE TO CONTINUE TO DO.

SO THAT KIND OF TO YOUR POINT ABOUT KIND OF HOW DO WE KNOW WHAT'S GOING ON AND HOW THIS IS WORKING VERSUS JUST LIKE ONCE A YEAR WHEN IT COMES TO YOU FOR APPROVAL? SO I DON'T KNOW IF IT'S ALREADY ON CALENDAR FOR 2025, BUT IT'S SOMETHING FOR SURE THAT WE CAN WORK INTO A PRESENTATION TO THE OPERATIONS COMMITTEE AND THEN CERTAINLY BRING IT TO THE FULL BOARD HERE, IF THAT'S OF DESIRE.

THAT'S A GREAT POINT. WE CAN ALWAYS COME BACK AND PROVIDE ADDITIONAL INFORMATION BASED ON OUR PROGRESS AND WORK COMPLETED IN A GIVEN YEAR, JUST TO KEEP YOU ALL ABREAST OF WHAT THIS FANTASTIC CREW IS DOING.

GREAT. DIRECTOR ECHOLS. YEAH. SO IT SOUNDS LIKE THERE IS A MEETING OF THE MINDS IN TERMS OF WHAT IS INTENDED HERE AND THE WORKFORCE DEVELOPMENT ASPECT OF IT. AND SO MY QUESTION IS, WOULD IT BE POSSIBLE FOR A STAFF TO JUST MAKE THAT CHANGE TO THE STAFF REPORT SO THAT THE WRITTEN ANALYSIS THAT GOES FORWARD WITH THE RESOLUTION NOW FULLY UNDERSTANDING THAT WE'RE NOT VOTING ON THE STAFF REPORT, BUT PERHAPS THAT COULD BRING SOME CLARITY TO WHAT IS REALLY INTENDED HERE.

YEAH, I THINK IT'S LOOKING AT THE CLERK. SHE CAN CONFIRM, BUT WE CAN WE I THINK WE CAN MAKE THAT CHANGE OR AT LEAST POST AN ADDENDUM INTO THE PACKET. BUT I'LL LET YOLANDA CONFIRM. YEAH, WE CAN MAKE THE CHANGE TO THE STAFF REPORT. AND I'D LIKE LISA JUST TO GIVE ME THAT LANGUAGE.

YES. I'LL JUST MAKE IT PART OF THE MINUTES BECAUSE IT'S EX POST FACTO.

SO IF IT'S PART OF THE MINUTES, WE WILL BE APPROVING IT NEXT TIME.

YES, CERTAINLY. THANK YOU. ALL RIGHT. WE'RE INTO COMMENTS NOW.

YEAH. NO, I STILL HAVE ONE QUESTION. SO. OKAY.

QUESTIONS. SO LET'S SAY WE APPROVE THE RESOLUTION TODAY.

SO THEN KIND OF WHAT'S THE TIMELINE FOR WORKING WITH THE UNION TO GET SOME TYPE OF LANGUAGE THAT'S IN PLACE BEFORE ANOTHER CONTRACT COMES UP.

SO AS FAR AS THAT WE HAVE DEFINITIONS THAT WOULD BE APPLICABLE FOR GROUP LIKE CIVICORP IS WORKFORCE DEVELOPMENT. AND THEN EVEN A STATEMENT ABOUT KIND OF WHAT THOSE ADDITIONAL SKILLS ARE THAT HAVE BEEN EXPRESSED BY THE DIFFERENT STUDENTS. SO I HAVE PERSONALLY WORKED WITH IN THE PAST ON SOME VOLUNTEER PROJECTS.

SO KIND OF WHAT'S THE TIMELINE FOR WORKING SOMETHING ELSE WITH OUT WITH THE UNION? SO WE'RE IN A PLACE WHERE WE'RE OF UNDERSTANDING, AND THEN ALSO JUST AS FAR AS SO THAT THEY HAVE THE APPROPRIATE NOTIFICATIONS WHEN SOMETHING LIKE THIS IS HAPPENING, SO THAT AS FAR AS THEY'RE ABLE TO COME TO SOME TYPE OF UNDERSTANDING.

SURE. SO SETTLEMENT DISCUSSIONS WITH AFSCME ARE ONGOING.

THE PARK DISTRICT SUBMITTED ITS REVISIONS TO THE PROPOSED SETTLEMENT AGREEMENT LAST WEEK.

IT'S MY UNDERSTANDING THAT AFSCME RESPONDED TODAY.

SO WE'RE GETTING VERY CLOSE TO REACHING AN AGREEMENT.

MY EXPECTATION WE WOULD REACH AGREEMENT, I'M BEING OPTIMISTIC BY THE END OF MARCH, WHICH WOULD THEN SET FORTH OUR OBLIGATIONS UNDER THE MOU TO NOTICE THE UNION ON WORKFORCE DEVELOPMENT PROGRAMS. SO ONCE WE REACH THAT AGREEMENT, WE WOULD HAVE THAT DONE.

AND I'M HOPING WE HAVE IT WITHIN THE MONTH. IF WE CAN'T REACH AGREEMENT, WHICH I DON'T THINK WILL HAPPEN, THIS SETTLEMENT IS COMING ABOUT BECAUSE OF A GRIEVANCE AND AN ARBITRATION.

SO EITHER WE REACH A SETTLEMENT AND WE HAVE REVISED LANGUAGE, OR WE GO TO ARBITRATION, AND AN ARBITRATOR CLARIFIES THE LANGUAGE FOR US.

SO THE NEXT TIME THIS CONTRACT COMES BEFORE THE BOARD IN 2026, WE SHOULD EITHER HAVE REVISED LANGUAGE THAT CLEARLY PUTS OUR OBLIGATIONS IN THE MOU, OR WE HAVE AN ARBITRATOR'S DECISION WHICH SETS FORTH OUR OBLIGATIONS GOING FORWARD UNDER THE MOU.

AND WE CAN. I KNOW THIS PROBABLY GOES WITHOUT SAYING, BUT WE AS YOU KNOW, THIS PROGRESSES WE CAN KEEP THE BODY APPRIZED OF KIND OF WHERE THOSE DISCUSSIONS ARE THROUGH CONFIDENTIAL MEMO. YEAH.

ALL RIGHT. DIRECTOR WAESPI. SURE. WELL, I COME AWAY FROM ALL THIS WITH YOUR QUOTE, ALLYSON.

THAT SAID, THIS IS A VERY IMPORTANT CONTRACT, AND WE NEED TO MOVE FORWARD. I THINK WE NEED TO DO THIS.

WITHOUT GETTING INTO TOO MUCH HISTORY, I KNOW THERE'S LOTS OF DISCUSSION.

I UNDERSTAND THE UNION'S POSITION. I UNDERSTAND OUR POSITION, AND I UNDERSTAND THE GREAT WORK THAT CIVICORP DOES.

WE'VE GOT TO MAKE IT WORK, I THINK, IN MY OPINION.

I WOULD LIKE TO MOVE FORWARD WITH IT RIGHT NOW.

W E CAN DISCUSS EVERYTHING. I WOULD GUESS THAT IN THE RESOLUTION, WE SAY WE'RE GOING TO SPEND $400,000 FOR CIVICORP TO DO WORK FOR US SPECIFIC WORK IN NATURAL SURFACE TRAIL MAINTENANCE AND FUELS MANAGEMENT WORK.

[03:00:04]

IS THAT CLOSE? I MEAN, WE'RE IT DOESN'T MATTER.

MY POINT IS, I WOULD BET SOMEBODY PLANNED THIS, RIGHT? YOU WERE GOING TO WORK IN ANTHONY CHABOT PARK ON THE [INAUDIBLE] TRAIL, OR YOU'RE GOING TO DO THIS? AND EVERY ONE OF THOSE. I MEAN, IF THERE'S A LIST OF 20 PROJECTS AND ONE OF THEM IS YOU KNOW, WHEN I TRY TO THINK OF EVERYBODY'S POINT OF VIEW, IF FROM WHAT I'VE TOLD HER, MY CONSTITUENTS HAVE TOLD ME THE LAKE CHABOT ROAD DUMP, WHICH IS ALL IT IS, IS ON OLD LAKE CHABOT ROAD.

AND I GUESS THERE WAS A FINDING THAT IT WAS THE COUNTY'S PROBLEM.

THE COUNTY HIRED CIVICORP PEOPLE TO DO THE WORK.

EVERYBODY, I THINK, WAS IT. NO, I'M NOT TOTALLY SURE.

OKAY. IT DOESN'T MATTER. BUT I THINK CIVICORP WAS HIRED.

THAT'S WHAT MY CONSTITUENTS TOLD ME. I WASN'T THERE, BUT. SO EVERYBODY LOVED IT.

EVERYBODY WAS HAPPY. THAT'S NOT RECURRING WORK THAT A UNION MEMBER DOES.

ON THE OTHER HAND, IF THERE'S A LIST OF PROJECTS AND WE SEE THEM ALL AND ONE OF THE PROJECTS IS TO BUILD A RESTROOM OR SOMETHING LIKE THAT, WHICH IS OBVIOUSLY A UNION CARPENTER WORK, WE COULD EASILY DEBATE INDIVIDUAL STUFF, NOT THIS OVERHAUL PROJECT, BECAUSE I THINK THE OVERALL PROJECT IS INCREDIBLE AND GOING TO DO NOTHING BUT GOOD THINGS FOR UNION MEMBERS, FOR CIVICORP MEMBERS AND THE COMMUNITY THAT WILL BENEFIT FROM ALL THIS.

SO I HOPE WE CAN MOVE FORWARD WITH IT. AND FIGURE OUT THE DETAILS.

ANY OTHER COMMENTS FROM THE BOARD? COMMENTS? SURE.

JUST BECAUSE I FEEL REALLY STRONGLY ALL THE ACCOLADES ARE OUT THERE AND I DON'T WANT TO REPEAT THEM ALL.

THIS PROGRAM IS OFF THE CHARTS, GOOD. I , YOU KNOW, I JUST DON'T WATCH THE NATIONAL NEWS ANYMORE.

BUT THE FEDERAL GOVERNMENT IS DECIMATING, JUST ABSOLUTELY DECIMATING LOCAL GOVERNMENT EFFORTS THROUGHOUT THE COUNTRY TO PURSUE SOCIAL JUSTICE, ENVIRONMENTAL JUSTICE AND DEI. AND WE ALL ARE LOOKING FOR WAYS IN OUR OWN LIVES THAT WE CAN DO SOMETHING.

YOU KNOW, IN CALIFORNIA, LOOK AT ALL THE LAND MANAGEMENT, FEDERAL AGENCIES THAT ARE LAYING OFF THOUSANDS OF PEOPLE THAT WOULD OTHERWISE BE AVAILABLE TO FIGHT FIRES. WE HAVE TWO YOUNG MEN HERE WHO ARE, BECAUSE OF OUR PROGRAM, GOING TO BE AVAILABLE TO FIGHT FIRES AND DO FUELS MANAGEMENT. SO, YOU KNOW, THIS PROGRAM IS AMONG YOU KNOW, WE DO A LOT OF EDUCATIONAL EFFORTS TOO, BUT IT'S JUST SOMETHING PALATABLE THAT WE CAN POINT TO AS A ONE LITTLE LOCAL GOVERNMENTS RESPONSE TO THE DECIMATION OF DEI EFFORTS AROUND THIS COUNTRY. THIS IS OURS. THIS IS A CORE PROGRAM FOR US, AND I'M AWFULLY PROUD OF IT.

AND JUST THINK OF IT IN THE CONTEXT OF THE BIGGER BATTLES WE'RE ALL FIGHTING OUT THERE.

ALL RIGHT. THANK YOU. SO BACK IN SEPTEMBER, I GOT UP AT 5:30 AND I WENT TO OAKLAND TO YOUR YARD THAT'S HOW EARLY I HAD TO GET UP TO STAY AHEAD OF THESE FOLKS HERE AND WATCH THEM ALL GATHER AND BE DISPATCHED OUT TO ALL THE PLACES THEY WERE GOING AND ALL THEIR TRUCKS AND YOUR COMMENT ABOUT THE JENGA THING, I WATCHED THAT THE TRUCKS BACKING UP AND GOING AROUND, IT'S KIND OF CRAMPED.

BUT ANYWAY, IT WAS VERY, VERY ENLIGHTENING FOR ME.

AND ILLUMINATING. THAT'S THE SAME THING THAT TO SEE THAT BECAUSE I ONLY HAD A VAGUE NOTION OF WHAT THIS WAS ALL ABOUT.

BUT I WAS SHOWN YOUR FACILITY. I WAS IT WAS EXPLAINED TO ME ALL THE DIFFERENT PROGRAMS. YOU FOLKS HERE TOLD US WHAT YOU'RE INVOLVED IN, AND SO YOU DID BETTER THAN ANYBODY ELSE COULD HAVE DONE TO TO TELL US WHAT IT IS.

AND I LEARNED ABOUT ALL THE WRAPAROUND SERVICES THAT ARE THERE.

AND IT'S JUST, YOU KNOW, IT'S YOU KNOW, I KNOW IT'S TAKEN MANY, MANY YEARS TO GET TO THIS POINT.

YOU KNOW, YOU'VE BEEN WITH IT FOR YOU SAID 25 YEARS.

I THINK IT'S JUST IT'S SO GREAT THAT IT HAS TO BE SUPPORTED AND I'M PROUD TO SUPPORT IT.

AND IF I THOUGHT THAT IT WAS REALLY TAKING WORK AWAY FROM OUR FOLKS, I'D HAVE A DIFFICULT TIME WITH IT.

BUT I REALLY DON'T THINK THAT THAT'S GOING TO BE THE CASE. I THINK WE'RE GOING TO BE ABLE TO WORK OUT THE DETAILS OF WHAT EXACTLY IS BEING DONE BY WHO? AND, YOU KNOW, WE REALLY NEED TO DO THIS AGAIN, EMPHASIZING ITS YOUTH TRAINING AND CAREER DEVELOPMENT. THAT'S THE MAIN GOAL OF IT.

AND THE WAY YOU DO THAT IS YOU GET FOLKS IN THE FIELD AND THEY DO THE ACTUAL WORK, AND THEY FIND OUT THEY LOVE IT, AND THEN THEY CONTINUE AND THEY DEVELOP THEIR CAREERS. SO I'M CERTAINLY IN FAVOR OF THIS GOING FORWARD WITH THIS RIGHT NOW.

SO DO WE HAVE A MOTION TO APPROVE THIS ITEM? PUBLIC COMMENTS.

[03:05:06]

THERE'S A LOT TO TALK ABOUT HERE. SO DO I HAVE A MOTION FROM THE BOARD TO APPROVE THIS ITEM? I THINK DIRECTOR ECHOLS. WELL, I JUST HAD A QUESTION AND I .

SURE. I ALSO SUPPORT THIS WORK VERY, VERY DEEPLY.

BUT I ALSO BELIEVE I ALSO, I SHOULD SAY NOT. I SHOULD SAY AND NOT, BUT I AND I FEEL LIKE WORDS REALLY MATTER.

SO IT IS IMPORTANT TO GET THE WORDS RIGHT, TO BE CLEAR THAT THIS IS WORKFORCE DEVELOPMENT AND NOT LABORERS WORK OR NOT AFSCME'S WORK.

SO I HOPE THAT THERE'S A WAY. I KNOW WE JUST SAID, OKAY, IT'S GOING TO BE IN THE MINUTES.

WE'RE GOING TO SAY, OKAY, HERE'S THE STAFF REPORT HERE ARE THE CHANGES THAT WERE ANNOUNCED TO THE STAFF REPORT.

AND JUST BE CLEAR ABOUT THAT. BUT I ALSO WANT TO BE CLEAR THAT GOING FORWARD, WE, YOU KNOW, WE NEED TO BE CAREFUL TO CHOOSE THE RIGHT WORDS AND TO WORK TOGETHER WITH OUR LABOR PARTNERS, BECAUSE ULTIMATELY, AT THE END OF THE DAY, WE ALL ARE ON THE SAME PAGE.

WE ALL SUPPORT THIS WORK. WE WANT THIS WORK. WE, YOU KNOW, WE WANT TO ENCOURAGE THESE WONDERFUL YOUNG PEOPLE TO COME UP AND TO GET UNION JOBS HERE AT THE DISTRICT. RIGHT. I MEAN, THAT'S THE WHOLE POINT.

SO LET'S JUST MAKE THIS WORK IN A WAY THAT THAT WORKS FOR EVERYBODY.

ALL RIGHT. THANK YOU VERY MUCH. SO DO I HAVE A MOTION TO APPROVE THIS? SO MOVED. MOVED BY WAESPI. SECOND. SECOND. SECOND BY ESPAÑA.

ROLL CALL. YES, DIRECTOR COFFEY. AYE. DIRECTOR ECHOLS.

AYE. DIRECTOR WAESPI. AYE. DIRECTOR SANWONG. YES.

DIRECTOR ESPAÑA. YES. DIRECTOR DESCHAMBAULT. YES.

PRESIDENT MERCURIO. AYE. UNANIMOUSLY APPROVED.

ALL RIGHT. WELL, THANK YOU VERY MUCH. AND THANK YOU TO YOU FOR TO YOU FOLKS, FOR COMING AND EXPLAINING EXACTLY WHAT YOU KNOW.

NOT ALL OF US KNOW. AND I WOULD ENCOURAGE ANY OF THE DIRECTORS WHO HAVEN'T BEEN DOWN THERE TO VISIT THAT TO GO DO THAT.

IT'S REALLY, REALLY GREAT. ALL RIGHT. SO MOVING ALONG WE

[GENERAL MANAGER'S COMMENTS]

YEAH. THANK YOU PRESIDENT MERCURIO. JUST A COUPLE QUICK THINGS.

I JUST WANT TO GIVE YOU A QUICK UPDATE ON THE DISTRICT PLAN.

I KNOW YOU ALL HAVE BEEN OUT DOING YOUR LOCAL GOVERNMENT MEETINGS ON THIS, AND WE HAVE A WE'VE ALREADY KICKED OFF OUR INTERNAL ENGAGEMENT WITH OUR STAFF.

SO WE HAVE A LOT OF FACILITATED MEETINGS. AND WHEN I SAY A LOT, I MEAN DOZENS WITH OUR INTERNAL STAFF THAT ARE UNDERWAY.

BUT NEXT FOR YOU IS YOU'RE GOING TO BE GETTING AN UPDATE AT YOUR MARCH EXECUTIVE COMMITTEE.

AND IT'S ALSO GOING. WE'RE GOING TO BE BRINGING AN UPDATE TO THE PAC THIS MONTH ALL WITH THE TARGETED GOAL OF EARTH DAY, APRIL 22ND. NO LATER THAN THAT. YOU'RE GOING TO BE ARMED WITH YOUR FULL TOOLKIT THAT WE HAVE BEEN TEASING FOR IN ADVANCE OF THAT. SO WE ARE WORKING AWAY IN CASE I KNOW THERE'S BEEN SOME QUESTIONS ABOUT THAT, BUT THAT'S THE TARGETED DATE. BUT YOU'LL GET A FULL UPDATE AT THE EXECUTIVE COMMITTEE.

ALSO RECEIVED A COUPLE OF QUESTIONS ABOUT THE GOVERNOR'S EXECUTIVE ORDER THAT HE RELEASED.

I BELIEVE IT WAS ON SATURDAY. IF I'M NOT MISTAKEN, THIS IS AROUND SUSPENSION OF SOME OF THE STATE REGULATIONS RELATED TO FUELS WORK. AND THIS WAS CERTAINLY AROUND IN RESPONSE TO SOME OF THE LA WILDFIRES.

BUT REALLY IT WOULD BE THESE WOULD BE STATEWIDE SUSPENSIONS OR ARE STATEWIDE SUSPENSIONS.

SO WE ARE IN THE PROCESS RIGHT NOW OF REALLY ANALYZING THAT EXECUTIVE ORDER.

AND WE'LL BE GETTING A MEMO OUT TO YOU AS SOON AS WE HAVE MORE INFORMATION.

BUT WE BELIEVE THAT THIS IS GOOD NEWS. AND WE'LL CONTINUE TO ACCELERATE THE WORK THAT WE ALREADY HAVE OUT THERE.

AND WE ARE WORKING WITH THE STATE AND THE GOVERNOR'S OFFICE ALREADY TO HIGHLIGHT SOME PROJECTS THAT WE CAN TRY TO MOVE FORWARD IN LIGHT OF THOSE CHANGES.

LASTLY, CONTINUE TO GET A LOT OF QUESTIONS ABOUT OUR FEDERAL GOVERNMENT AND BE ABLE TO MAKE A WHOLE LOT OF OTHER CAREER CHOICES. IF I COULD ACTUALLY ACCURATELY PREDICT AND ANSWER THESE QUESTIONS THAT I'M GETTING, I'M IN THE SAME BOAT AS EVERYBODY ELSE. BUT I WILL JUST AGAIN GIVE YOU ASSURANCES BOTH TO YOU AND THE PUBLIC AND TO OUR STAFF.

WE CONTINUE TO WATCH THIS MONITOR KIND OF, YOU KNOW, REALLY CHANGES THAT ARE HAPPENING WITH OUR FEDERAL AGENCIES AND HOW THAT AFFECTS US HERE ON THE GROUND, WHETHER THAT'S WITH OUR GRANTS FEMA PROCESSING, WHICH I THINK IS ALSO OF SOME REAL ON THE GROUND CONCERN.

[03:10:07]

GREAT EXAMPLE. I WILL GIVE YOU SOME ASSURANCES.

THE BUILDING ACROSS THE STREET, WE ALREADY PRE-PURCHASED ALL OF THOSE.

SO THAT'S GOOD NEWS. SO WE'RE NOT LOOKING AT ESCALATORS RELATED TO THAT.

BUT CERTAINLY I THINK THERE'S A LOT OF QUESTIONS ON PROJECTS THAT ARE KIND OF COMING DOWN THE PIPE IN THE NEXT 12 MONTHS, 18 MONTHS. SO WE'LL KEEP YOU POSTED AS WE KNOW MORE KIND OF LEARNING IT AS YOU GO.

AND I ACTUALLY THE LAST THING ON THAT RELATED TO THAT IS I'M GETTING QUESTIONS ANECDOTALLY ABOUT WHETHER OR NOT WE'RE SEEING AN INCREASED NUMBER OF FORMER FEDERAL EMPLOYEES THAT ARE APPLYING FOR POSITIONS HERE.

AND I WILL TELL YOU ANECDOTALLY, WE ABSOLUTELY ARE.

AND WE ARE SEEING THEM FROM REALLY ALL OVER, NOT JUST LOCAL RESIDENTS, BUT ALSO PEOPLE FROM ALL OVER THE COUNTRY.

SO CONTINUING TO ACTIVELY MARKET AND BE ON RECORD THAT WE OUR DOORS ARE OPEN.

WE ARE WE HAVE LOTS OF VACANT POSITIONS THAT WE ARE CURRENTLY HIRING.

AND SO CONTINUE TO PUT THE WORD OUT THERE. BUT WE ARE SEEING AN INCREASED NUMBER OF FORMER FEDERAL EMPLOYEES, UNFORTUNATELY OR FORTUNATELY. YEAH, THAT'S ALL I HAVE.

YEAH. NO THAT'S GREAT. NO, APPRECIATE THOSE UPDATES. THANK YOU VERY MUCH.

SO MOVING ALONG, WE DO NOT WE DID NOT HAVE A CLOSED SESSION.

SO WE CAN SKIP THAT ONE. AND DO WE HAVE ANY PROPOSED FUTURE AGENDA ITEMS TO PROPOSE.

[PROPOSED FUTURE AGENDA ITEMS]

I WANT TO ADDRESS SOMETHING THAT LYNDA AND I HAVE BEEN DISCUSSING IN REGARDS, OR THAT WE HAD A DISCUSSION OF AT THE NATURAL AND CULTURAL RESOURCES COMMITTEE MEETING LAST WEEK ON TUESDAY, FEBRUARY 25TH.

AT THAT COMMITTEE MEETING, WE DID HAVE A DISCUSSION ABOUT HOW THERE'S TWO PARTS.

SO ONE PART IS HOW WE INTEGRATE THE WORK THAT'S DONE AT OUR COMMITTEE MEETINGS, AT ALL THE COMMITTEE MEETINGS, AS WELL AS THE PAC INTO OUR BOARD REPORTS THAT WE RECEIVE FROM STAFF FOR BOARD MEETINGS, AS WELL AS HOW WE REPORT OUT TO EACH OTHER IN REGARDS TO THE BOARD COMMITTEES AND ALSO HOW WE RECEIVE REPORTS FROM OUR PAC COMMITTEE. AND I DO KNOW I GUESS THIS IS GOOD TIMING.

WE JUST GOT THE UPDATE OF OUR BOARD OPERATING GUIDELINES, AND I'LL MENTION, YOU KNOW, ON PAGE 34 IN THIS UPDATE, SECTION 4.2.1, THERE IS AN OUTLINE OF OUR BOARD MEETINGS AND HOW THE BOARD MEETINGS ARE GOING TO BE OUTLINED. AND IT DOES HAVE A SECTION I, ON BOARD COMMITTEE REPORTS WHERE IT DOES TALK ABOUT.

I'LL PARAPHRASE A LITTLE BIT, BUT HOW THE CHAIRPERSON OF THE COMMITTEE WOULD ACTUALLY PRESENT WHAT HAD HAPPENED AT THAT COMMITTEE, AND THAT THAT'S SOMETHING THAT IS IN THE BOARD OPERATING GUIDELINES AND COULD BE INCORPORATED INTO OUR REPORTS.

AND I SHARED AT THE NATURAL RESOURCES AND CULTURAL COMMITTEE, I HAPPENED TO WATCH A BART BOARD OF DIRECTORS MEETING, WHERE THEY FOLLOW A SIMILAR PROCESS TO WHAT'S MENTIONED IN OUR BOARD OPERATING GUIDELINES, WHERE THE CHAIRPERSON OF THE COMMITTEE DOES PRESENT, YOU KNOW, IF THE COMMITTEE HAD MET BETWEEN THE TWO BOARD MEETINGS AT BART BOARD, AND YOU KNOW, WHAT THE AGENDA ITEMS ARE, WHAT WERE DISCUSSED.

AND THEN ALSO, IF THE ITEM SUCH AS EARLIER TODAY, WE HAD ON OUR CONSENT CALENDAR AN ITEM THAT HAD BEEN REVIEWED BY OUR BOARD OPERATIONS COMMITTEE AT THEIR JANUARY 2025 MEETING. AND YOU KNOW THAT THAT WOULD BE AN EXAMPLE WHERE WE COULD HEAR ABOUT THE COMMITTEE MEETING. AND, YOU KNOW, HOW IT RELATES TO THE BOARD OF DIRECTORS ACTUALLY MAKING THE DECISION, BECAUSE AT THE COMMITTEE LEVEL, YOU KNOW, THE COMMITTEE WILL VOTE AND MAKE RECOMMENDATIONS TO THE BOARD, BUT WE ULTIMATELY MAKE THE DECISION HERE AT THE BOARD MEETING.

AND SO IN TERMS OF PROPOSAL FOR FUTURE AGENDA ITEMS AND I DON'T KNOW IF THIS COMES FORWARD AS A PROPOSAL FOR FUTURE AGENDA ITEMS, BUT WHAT I WOULD LIKE TO PROPOSE IS MAYBE WE CONSIDER HAVING BOARD COMMITTEE REPORTS AS A PART OF OUR AGENDA AND INCORPORATE IT INTO OUR MEETINGS SO THAT WE CAN START TO THINK ABOUT HOW WE YOU KNOW, INTEGRATE THIS TYPE OF COMMUNICATION AND THIS TYPE OF COORDINATION BECAUSE I THINK EACH OF US DOES A LOT OF WORK WHEN WE GO TO THESE COMMITTEE MEETINGS. AND I THINK SOME OF THAT DOES GET LOST.

[03:15:01]

SO THAT'S PART ONE, LENGTHY, PART ONE. PART TWO ABOUT NATURAL AND RESOURCES COMMITTEE IN GENERAL.

I MEAN, WE HAD SUCH AN INCREDIBLE MEETING LAST WEEK WITH REALLY IMPORTANT TOPICS THAT INCLUDED, I HAVE THE AGENDA IN FRONT OF ME RIGHT NOW, AND SO I WILL REPORT TO YOU. WE HAD THE CULTURAL RESOURCES UNIT OVERVIEW.

WE TALKED ABOUT YOU KNOW, THE FAIRY SHRIMP IN THE BRUSHY PEAK VASCO CAVES AREA OF THE DISTRICT.

WE HAD OUR ORAL HISTORIES UPDATE, AND THEN WE ALSO TALKED ABOUT THE EAST BAY REGIONAL PARKS, GRASSLANDS, AND ONE OF THE OTHER COMMENTS THAT I'LL SHARE THAT CAME UP DURING THIS COMMITTEE MEETING FROM, YOU KNOW, MY COLLEAGUE LYNDA HERE WAS HOW DOES THIS INFORMATION, YOU KNOW, THIS IS REALLY GREAT.

THESE ARE ALL INFORMATIONAL ITEMS. THERE WAS NOTHING TO RECOMMEND IN TERMS OF ACTION ITEMS FOR THE BOARD TO MAKE A DECISION ON.

BUT EACH ONE OF THESE FOUR WAS SO INCREDIBLY DENSE AND INFORMATIVE AND IMPORTANT TO THE WORK WE DO HERE AT EAST BAY REGIONAL PARK DISTRICT .

SO HOW DOES SOME OF THIS GET INTEGRATED INTO OUR STAFF REPORTS? AND YOU KNOW, I JUST GLANCED YOU KNOW, WE HAVE A TEMPLATE IN PLACE WHERE WE YOU KNOW, I'M JUST LOOKING AT ONE EXAMPLE FROM TODAY'S MEETING WHERE, YOU KNOW, WE GET A RECOMMENDATION FROM STAFF. WE HAVE A BACKGROUND ON THE TOPIC, WE HAVE THE ANALYSIS SECTION AND THE FISCAL IMPACT.

AND I'M NOTICING THAT WE DON'T HAVE THE ENVIRONMENTAL AND CULTURAL IMPACT FOR EACH OF THE DECISIONS WE'RE MAKING.

SO THAT MIGHT BE SOMETHING FOR US TO CONSIDER AS A RECOMMENDATION OUT OF THIS INITIATIVE THAT I'D LIKE TO PROPOSE THAT MAYBE WE COULD POTENTIALLY UPDATE OUR STAFF REPORT TEMPLATE TO ALSO INCLUDE CULTURAL AND ENVIRONMENTAL IMPACTS.

SO THOSE ARE TWO ITEMS, AND I DON'T KNOW IF THAT'S SOMETHING WE WANT TO BRING FORWARD TO THE BOARD. IF YOU WANT US TO CONTINUE TALKING ABOUT THIS ON THE NATURAL AND CULTURAL RESOURCES COMMITTEE, THE ONE THING ABOUT OUR COMMITTEE IS THAT WE DON'T MEET AGAIN UNTIL MAY.

YEAH. HAPPY TO CONTINUE TO TALK ABOUT THAT. GREAT POINTS THAT YOU'VE RAISED.

CERTAINLY EXAMPLES FROM OTHER JURISDICTIONS THAT INCLUDE THAT INFORMATION.

SO WHATEVER IS OF INTEREST TO THE BOARD, WE'RE MORE THAN HAPPY TO ADAPT TO THAT.

SO PERHAPS MAYBE WE COULD LOOK AT AGENDIZING THIS FOR THE EXECUTIVE COMMITTEE.

IT SEEMS LIKE THAT MIGHT BE THE APPROPRIATE JURISDICTION.

SO AND MAYBE ONE IDEA. YEAH, WE CAN TALK ABOUT THEN AND ONE IDEA IS MAYBE WE, WE PILOT SOME OPTIONS THIS YEAR AND THEN WE CAN MAKE DECISION FOR NEXT YEAR TO DO THINGS DIFFERENTLY POTENTIALLY. YEAH. YEAH I'D BE INTERESTED IN EXPLORING THAT THAT'S WORTH CONSIDERING.

ABSOLUTELY. EXCUSE ME. SO AT THIS POINT WE'RE OPEN FOR BOARD REPORTS ON MEETINGS. I HAVE MEETINGS ATTENDED. CAN WE STILL VISIT THE FUTURE AGENDA FOR A MINUTE? I JUST WANT TO CLARIFY THE PROCESS WE DISCUSSED EARLIER, LIKE, WELL, I'D LIKE TO SEE A FUTURE AGENDA ITEM BE AN OPPORTUNITY TO DISCUSS THE DELEGATION OF A FIDUCIARY COMMITTEE. CAN WE ACTUALLY GET THAT ON? I KNOW WE TALKED ABOUT IT, BUT FORMALLY REQUESTING THAT AS A FUTURE AGENDA ITEM BEFORE NOVEMBER.

YEAH FOR SURE. THAT'S GREAT TO HEAR THAT THERE'S SOME INTEREST FROM THE BOARD TO AND WE'LL WORK ON SOMETHING.

SOUNDS GREAT. YEAH. WHEN PEOPLE RUN, I CAN SAFELY SAY WHEN PEOPLE RUN FOR THIS BOARD, IT'S NOT BECAUSE THEY WANT TO FIND A WAY TO BE A FIDUCIARY, YOU KNOW? WHAT'S THAT? YEAH. FOR SURE. YEAH. RIGHT. EXACTLY.

[BOARD REPORTS ON MEETINGS ATTENDED]

YEAH, I'M STILL GOING TO LIST A BUNCH THAT MAY NOT BE, QUOTE, COMPENSABLE, BUT I'VE BEEN BUSY.

I JUST FIGURE I'LL SHARE WITH YOU. I'VE MET A COUPLE TIMES IN LAFAYETTE WITH THE LEY CREEK, AND MAX AND REN AND OTHERS WERE TRYING TO FIGURE OUT WHAT'S GOING ON THERE TO MOVE THAT FORWARD.

I HAVE WALKED THREE TIMES IN THE LAST COUPLE OF WEEKS AT THE JOHN SUTTER REGIONAL PARK, ONCE WITH DEE ROSARIO, ONCE WITH A COLLEAGUE AND ANOTHER WITH A WOMAN IN A WHEELCHAIR.

I'M VERY EXCITED TO KEEP LOOKING AT THAT AND MAYBE PUT THAT ON THE AGENDA FOR MY WARD TWO TOUR AS A LOT OF OPPORTUNITY THERE.

I'VE BEEN VERY BUSY LOOKING AT MY PAC MEMBERS I HAD 14 PEOPLE REACH OUT THAT WERE INTERESTED.

I'VE MET WITH THE CURRENT BOB REID AND SIX OTHER PEOPLE BY PHONE AND IN PERSON.

GLAD TO SEE THERE'S A LOT OF PEOPLE AND I HOPE THAT NO MATTER WHO I PICK, THEY KEEP COMING TO THE SECOND CENTURY PLAN.

AND I'D LOVE TO SEE THAT WEBSITE GET UP AND RUNNING.

I WENT TO MARK DESAULNIERS PRESENTATION AT SAINT MARY'S ON FEBRUARY 20TH.

ON FEBRUARY 22ND, I ATTENDED AND I GOT TO RIDE ON THE FLOAT AT OAKLAND CHINATOWN'S PARADE ON THE 23RD.

I MET WITH THE MORAGA HISTORICAL SOCIETY, WHO'S VERY INTERESTED IN THE HISTORY OF OPEN SPACE.

[03:20:03]

AND I ALSO HAD A ZOOM MEETING ON THE 27TH WITH THE FOLKS FROM THE EAST BAY BICYCLE COALITION, AND ON THE 28TH, RECENTLY, I WENT TO BRIONES AND GOT A LOT OF INFORMATION FROM A CURRENT VOLUNTEER TRAIL SAFETY PERSON TO FIND OUT HOW THAT WORKS.

AND I GOT TO HIKE IN BRIONES ON ONE OF THE TEST PILOT TRAILS CALLED PB7.

IT'S A BEAUTIFUL TRAIL AND IT'S FOR BIKES AND HIKERS, SO I'VE BEEN VERY BUSY AND ENJOYING GETTING OUTSIDE AS WELL.

ALL RIGHT. THANK YOU. DIRECTOR SANWONG. NO COMMENT.

OKAY. DIRECTOR WAESPI. THANK YOU. WELL, I HAVEN'T BEEN DOING MUCH, BUT I DID HAVE THE OPPORTUNITY TO GO TO DOUG SIDEN'S MEMORIAL SERVICE LAST SATURDAY.

IT WAS AN INSPIRATIONAL TIME. DOUG WAS A WONDERFUL, WONDERFUL PERSON AND A GREAT PARK ADVOCATE.

BUT I DIDN'T DO ANYTHING ELSE. BUT I WOULD LIKE TO BRING TO PEOPLE'S ATTENTION BOARD MEMBERS ESPECIALLY.

AND ANYONE ELSE ON MARCH 13TH. GOD, THAT'S COMING UP.

COMING UP. THE ALAMEDA COUNTY SPECIAL DISTRICTS ASSOCIATION IS HAVING THEIR ANNUAL DINNER.

IT'S A GREAT EVENT. IT'S AT REDWOOD CANYON GOLF COURSE, OUR FACILITY.

GREAT EVENT. I WOULD INVITE EVERYONE TO COME.

IT'S JUST A NICE DINNER WITH A LOT OF NICE PEOPLE AND SOME GOOD DISCUSSIONS.

AND ON APRIL 22ND THROUGH THE 25TH, THE TRAILS AND GREENWAYS CONFERENCE IS IN POMONA, CALIFORNIA.

IT'S A GREAT CONFERENCE, REALLY GOOD HANDS ON, A LOT OF TECHNICIANS, A LOT OF GREAT IDEAS.

AND YOU'LL GET TO SEE YOUR REGIONAL PARK DISTRICT STAFF IN ACTION BECAUSE THEY ARE ALWAYS PARTICIPATING, ALWAYS WAY AHEAD OF THE CURVE. WE'RE KIND OF THE GO TO PEOPLE IN TRAILS AND STUFF LIKE THAT.

SO IT'S A SOURCE OF PRIDE AND A GREAT, GREAT EVENT.

AND ALSO ON MAY 21ST THROUGH THE 24TH IS THE CALIFORNIA ASSOCIATION OF RECREATION AND PARK DISTRICT S CONFERENCE.

AND I WOULD INVITE YOU ALL TO ATTEND. AND WE ARE A LEADING SPONSOR NOW OF THE.

YES, WE ARE. YEAH, OF THE TRAILS AND GREENWAYS CONFERENCE.

DIRECTOR ESPAÑA, ARE YOU READY? OR YOU WANT TO? SURE. SO THE LAST FEW WEEKENDS, I HAD AN OPPORTUNITY TO INTERACT WITH OUR DIFFERENT STAFF AND JUST EXPLORE SOME OF THE GREAT PROGRAMS THEY'RE PUTTING ON. SO ON 2-22, I WENT TO LAKE CHABOT PARK FOR A GET TO KNOW YOUR BLACK CONSERVATIONIST, AND I HAVE TO JUST GIVE PROPS TO MAERON YESHIWAS.

AND SHE DID A GREAT PROGRAM WHERE THEY HAD EVERYTHING FROM DISSECTING CRAWDADS TO AN AREA WITH DIFFERENT BOOKS FOR PEOPLE COULD HAVE READ ALONGS. AND THEN ALSO THE FISH WERE THERE, SO THERE WAS AN OPPORTUNITY TO BE A SCIENTIST AND LEARN ABOUT FISH AND SCALES AND FEEDING AND THEN DIFFERENT AFRICAN AMERICAN ENVIRONMENTALISTS, BIOLOGISTS.

AND SO IT WAS A REALLY GREAT SPACE THAT WAS ACTIVATED WHEN YOU FIRST WENT INTO THE PARK, AND EACH PERSON COULD CHOOSE THEIR OWN EXPERIENCE.

ON 2-23, I MET AT THE TIDEWATER CENTER WITH PATRICIA LAMBOURNE AND A MOTIVATED GROUP OF VOLUNTEERS WHO COME TO THAT AREA, AND THEY VOLUNTEER ON THEIR OWN TO PICK UP TRASH.

BUT THEY ALSO CONNECT WITH OUR, PROGRAMING AT THAT CENTER.

AND THEN THEY'RE ALSO REALLY INTERESTED IN EXPLORING UPSTREAM OPTIONS TO REDUCE TRASH WITH THE CITY OF OAKLAND.

SO THEY GAVE ME A NICE TOUR OF THAT AREA AND THEN POINTED OUT SOME OF THE SPOTS.

ON 3-21. I ALSO ATTENDED THE DOUG SIDEN MEMORIAL, HAD AN OPPORTUNITY TO MEET HIS FAMILY AND LEARN MORE ABOUT HIS GREAT WORK, WHICH EXTENDED FROM WALKING WITH MARTIN LUTHER KING AND ALSO AS FAR AS ESTABLISHING THE MLK FREEDOM CENTER AND ALL THE GREAT WORK THAT HAS DONE.

SO ON THREE TWO, I WAS SURPRISED AND I RAN INTO A FELLOW DIRECTOR AND WE WERE I'M GOING TO GIVE YOU THE CORRECT NAME OF THIS EVENT BECAUSE IT'S CALLED NORCAL RUCK.

AND WHAT THE NORCAL RUCK IS, IT'S AS FAR AS IT'S A LONG DISTANCE HIKING ASSOCIATION.

SO WE WERE THERE BOTH AS FAR AS TO LEARN MORE, A LITTLE BIT ABOUT LONG DISTANCE HIKING, BUT ALSO TO SHARE ABOUT DIFFERENT LONG DISTANCE TRAILS. AND SOME OF THOSE LONG DISTANCE TRAILS COME THROUGH THE EAST BAY REGIONAL PARK.

[03:25:04]

THAT HELPED ME SET UP A WHOLE SESSION FOR A BOY SCOUT TROOP FROM ALAMEDA.

AND THEY HAD A FISH FEEDING. AND THEN ALSO THERE WAS A PRESENTATION BECAUSE THIS TROOP WANTED TO KNOW ABOUT ELECTIONS AND ELECTEDS AND WHAT THAT PROCESS IS FOR GETTING ENGAGED IN THEIR COMMUNITIES.

SO I SHARED INFORMATION ABOUT THE PARK, THE ENTIRE WARD.

WHAT DID THE KIND OF WHAT OUR BOARD OF DIRECTORS DOES AND RESPONSIBILITIES.

AND THEN ABOUT MY OWN JOURNEY TO GET HERE. SO THOSE WERE MY TWO WEEKS.

ALL RIGHT. THANK YOU. ALL RIGHT. SO ON FEBRUARY 18TH, I WAS AT THE BOARD MEETING HERE ON THE 21ST. [INAUDIBLE] OH MY GOSH, JUST KEEP GOING.

AND DIRECTOR ECHOLS. RIGHT, RIGHT. OKAY. LET'S GO.

LET'S GO WITH DIRECTOR ECHOLS. I'M GOING TO PASS SO YOU GUYS CAN GO AHEAD.

OKAY. I'LL GO, I'LL GO. OKAY. DOES THAT MAKE IT EASY? YES. YOU JUST SOUNDED SO EAGER. LET HIM GO. ON THE 24TH, I ATTENDED THE PAC MEETING AS A REPRESENTATIVE OF THE BOARD OF DIRECTORS IN LIEU OF OUR WOUNDED DIRECTOR WAESPI.

SO I'M SURE YOU'LL FIND A MAKE UP DATE. IT WAS A VERY GOOD MEETING OF THE PAC ON THE 25TH, I ATTENDED NATURAL AND CULTURAL RESOURCES, WHICH DIRECTOR SANWONG SPOKE AT LENGTH ABOUT.

THANKFULLY, AND ON THE 26TH I ATTENDED MY NEW ADVENTURE AS A MEMBER OF THE DELTA PROTECTION COMMISSION'S NATIONAL HERITAGE AREA ADVISORY COMMITTEE.

THEY MET ON THE 26TH IN ISLETON, AND ON THE 27TH, I ATTENDED A FIELD TRIP WITH THE FLEDGLING MARSH CREEK WATERSHED COUNCIL STILL IN DEVELOPMENT, AND THEY HAD AN OUTING AT BIG BREAK TO LEARN ABOUT BIG BREAK, AND IT WAS LED BY OUR SUPERVISING NATURALIST, WYATT MOORE.

AND I GOT TO VISIT BRIONES IN THE LAST WEEK AND MADE AN EFFORT OVER THE PAST WEEK OR SO DOING EVERY SEGMENT OF THE BAY TRAIL FROM CROCKETT TO WHAT'S TO BECOME THE TRAIL TO CROCKETT TO POINT WILSON, WHERE IT DEAD ENDS.

JUST ALWAYS A VERY LOVELY OUTING ALONG SAN PABLO BAY.

THOSE WERE MY OUTINGS FOR THE LAST COUPLE OF WEEKS.

ALL RIGHT. THANK YOU FOR THAT. AND SO, CONTINUING WHERE I LEFT OFF I ATTENDED THE EAST BAY LEADERSHIP COUNCIL'S BOARD MEETING.

I SIT ON THAT BOARD, AND ONE OF THE THINGS I WANTED TO PASS ALONG HERE WAS THEY HAVE A PROGRAM CALLED BUILD THE BENCH, AND IT'S FOR BASICALLY TRAINING FOLKS TO RUN FOR OFFICE.

SO I PASSED ALONG THE INFORMATION TO OUR STAFF AT WHICH PERHAPS COULD BE IN TURN DISTRIBUTED TO OUR PARK ADVISORY COMMITTEE AND WHOEVER ELSE WANTS TO SEE IT. ON THE 24TH, I MET WITH OUR POLICE CHIEF ROBERTO FILICE. WE HAD A GREAT TALK AND WE TALKED ABOUT THE IRON HORSE TRAIL AND SOME OPPORTUNITIES WE MIGHT HAVE THERE TO DEAL WITH THE BEHAVIOR OR MISBEHAVIOR OF USERS OUT THERE.

THERE'S SOME SPEEDING GOING ON THERE. ON THE 25TH, I MET WITH DGM MAX KORTEN TO KIND OF CHECK IN ABOUT THE TRAIL STUDY THAT'S COMING UP HERE IN ON FRIDAY.

AND THEN I ALSO WENT TO THE EXECUTIVE COMMITTEE MEETING ON THE 28TH.

I HAD A MEETING WITH ALLYSON COOK TO TALK ABOUT THE GENERAL MANAGER EVALUATION PROCESS.

SO STARTING TO KIND OF THINK ABOUT THAT WITH THE GOAL OF DOING IT IN SEPTEMBER.

AND THEN ALSO ON THAT DAY WAS THE PRE BOARD MEETING.

AND I ALSO ATTENDED THE RUCK WITH DIRECTOR ESPAÑA IN EL CERRITO.

THE BACKPACKING THING, VERY INTERESTING. LOTS OF CHARACTERS THERE, LOTS OF PEOPLE WITH INTERESTING TRAIL NAMES THAT ALWAYS BEG TO BE EXPLAINED,

[03:30:03]

AND THEN I ALSO WAS AT THE DOUG SIDEN SERVICE, WHICH WAS WONDERFUL TO, LEARN MORE ABOUT HIS, HIS LIFE AND CAREER AND TO MEET SOME OF THE FOLKS THAT WERE HIS FAMILY A LITTLE BIT TOO.

SO IT WAS A PLEASURE TO DO THAT. SO I THINK THAT'S IT FOR TODAY.

SO AT THIS POINT, WE'RE READY FOR ADJOURNMENT AT 3:11.

THANK YOU VERY MUCH.

* This transcript was compiled from uncorrected Closed Captioning.