AMENDED BRIEF MINUTES

Transcription

1 DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board 1221 State Street El Centro, CA AMENDED BRIEF MINUTES REGULAR MEETING OF THE IMPERIAL COUNTY BOARD OF RETIREMENT February 19, :30 A.M. 940 W. Main Street County Administration Center, Second Floor El Centro, CA OPEN SESSION 1. The meeting was called to order by Chairman Jauregui at 8:30 a.m. A. Roll Call: MEMBERS PRESENT: VOGEL, LANG, HOLBROOK, TERRAZAS, JAUREGUI, WILLIAMS, McFETRIDGE, RHODES MEMBERS ABSENT: TABAREZ, JR. MEMBERS ARRIVING AFTER ROLL CALL: JERNIGAN ALTERNATES PRESENT: BUMGART, JERNIGAN LEGAL REPRESENTATIVES: Eric Havens, Deputy County Counsel CLERK: Kathleen L. Kubler, Retirement Specialist STAFF: David H. Prince, Retirement Administrator, Regina Rodrigues, Assistant Retirement Administrator B. Pledge of Allegiance: The Pledge of Allegiance was led by Vice Chairman, Holbrook. 2. Discussion of the Agenda: A. Items to be pulled from the Action Calendar: None B. Items to be pulled from the Discussion Calendar: None C. Items to be pulled from the Consent Agenda: None

2 February 19, 2014 AMENDED BRIEF MINUTES PAGE 2 D. Emergency Items to be added: None E. Approval of the Agenda: MOTION by Holbrook, Second by Bumgart and carried by a unanimous vote of members present, the Board approved the Agenda. F. Approval of the Consent Agenda: MOTION by Bumgart, Second by Terrazas and carried by a unanimous vote of members present, the Board approved the Consent Agenda. 3. Public comments on items that are NOT on the Action or Discussion Calendars. (Public comments on items that are on the Action or Discussion Calendars shall only be made during the Board s discussion of these items.): Mr. Prince announced that Mrs. Zelda Marzec, Managing Partner of Bradford & Marzec, Inc., would be providing a catered lunch for the board and staff after the board meeting. 4. Convene to Closed Session: MOTION by Vogel, Second by Holbrook and carried by a unanimous vote of members present, the board convened to Closed Session. CLOSED SESSION A. Conference with Legal Counsel Existing Litigation (Government Code (a).) disability retirement applications relating to the following: Pompeyo Tabarez, Jr. B. Conference with Legal Counsel Anticipated Litigation (Significant exposure to litigation pursuant to Government Code ) (1 matter) (1 attachment) BOARD MEMBER JERNIGAN ARRIVED AT 8:43 A.M. C. Government Code Public Employee Performance Evaluation: Retirement Administrator 5. Announcement of Closed Session Items: OPEN SESSION The board discussed but took no action regarding the three Closed Session items pursuant to Government Code (a), Government Code , and Government Code BREAK AT 9:25 A.M. RECONVENED AT 9:35 A.M.

3 February 19, 2014 AMENDED BRIEF MINUTES PAGE 3 ACTION CALENDAR 6. Approval of the Minutes of the January 15, 2014, adjourned regularly scheduled meeting: MOTION by Holbrook, Second by Vogel, and carried, with two abstention by Terrazas due to absence, the board approved the Minutes of the adjourned regularly scheduled meeting of January 15, Investment Managers Presentations: A. Bradford & Marzec: Zee Marzec, Managing Partner and Drew Sweeney, Senior Portfolio Manager: Mrs. Marzec discussed the personnel changes in the firm. She commented on the investment difficulties of 2013, but noted that the account maintained a positive performance and net returns, beating the market index. Mrs. Marzec also requested that board consider consulting with Mr. Whalen, to approve an adjustment to the average quality of the allocation. Mrs. Marzec also noted that the account has enjoyed positive returns since inception, 21 years ago. Mr. Sweeney reviewed the account allocation and its performance in He also discussed economic trends, market activity and inflation outlook with the board. B. PIMCO: Matt Clark, CFA, Senior Vice President: Mr. Clark gave the board a brief organization update and discussed the recently announced personnel changes in the firm. Reviewing a weary 2013 investment year, Mr. Clark remarked on the positive performance of the portfolio since inception in He also made note of the portfolio structure, current position and strategy to meet investment objectives. 8. Investment: Wurts & Associates: Scott J. Whalen, Senior Consultant: Mr. Whalen commented that the firm is celebrating its 30 th year anniversary, and noting $74 billion in assets under management, due to expanded investment services. The firm also remains 100% employee owned. A. Quarterly Investment Review: Mr. Whalen reviewed the portfolio activity and the individual performances by asset managers for the 4th quarter of 2013 with the board.

4 February 19, 2014 AMENDED BRIEF MINUTES PAGE 4 B. Update on Fixed Income Managers personnel changes: 1. PIMCO: Mr. Whalen discussed the personnel changes of the firm and the uncertain, but unlikely impact to the portfolio. The firm will be put on a Watch List to consider any affects to the quality of the firm. 2. Bradford & Marzec: Mr. Whalen discussed the personnel departures of the firm and acknowledged the tremendous experience of the new hires. The firm will also be put on a Watch List as a precaution. C. Discussion/Action: International Equity Growth Manager Review: Mr. Whalen discussed the Franklin Templeton asset class with the board and presented an overview of it performance history and investment options. D. Discussion/Action: Update on Capital Market Assumptions: Mr. Whalen presented the annual ten year projection analysis of each asset class and discussed with the board the methodology used to arrive at its conclusion. E. Discussion/Action: Asset Allocation Review: Mr. Whalen reviewed the present allocation of assets and discussed alternative mixes. Under board direction, Mr. Whalen will present a study on emerging growth at his next scheduled presentation in May. 9. Action/Discussion: Salary and benefits for ICERS appointed employee, Retirement Administrator: BOARD MEMBER LANG RECUSED HERSELF FROM THIS ITEM Volunteer board members, Vogel, Bumgart Terrazas, were appointed as a committee to consider the salary and benefits of the position, and to report back to the board in two months. 10. Adoption of 2014 Retiree Cost of Living Adjustment (COLA): MOTION by McFetridge, Second by Williams and carried by the unanimous vote of members present, the board adopted a 2%, 2014 Retiree COLA for members who retired prior to April 1, 2012, and 1.5%, 2014 Retiree COLA for those members who retired on or after April 1, Discussion/Action: Board Committee recommendation for an actuarial audit firm:

5 February 19, 2014 AMENDED BRIEF MINUTES PAGE 5 MOTION by Vogel, Second by Bumgart and carried by the unanimous vote of members present, the board approved the Retirement Board Committee s recommendation to hire Cheiron to perform the 2013 Actuarial Audit. 12. Discussion/Action: Regarding Legal Representation for ICERS: BOARD MEMBER HOLBROOK RECUSED HIMSELF FROM THIS ITEM The board agreed to appoint board member volunteers Williams, Jauregui, Lang and Vogel as a committee to consider the need for contracting outside legal services and to return with an update at the next regularly scheduled meeting, March 19, DISCUSSION CALENDAR 13. Reports/Correspondence/Announcements: A. Retirement Administrator: 1. Market Value Graph of the Retirement System s Assets for January 2014: Mr. Prince briefly reviewed the investment activity with the board. 2. Book vs. Market Graph compares the Market Value of the system s assets to the Book Value of Assets for January 2014: Mr. Prince reviewed the value of assets for the quarter with the board. 3. Pension Administration Computer System (PAS) Status Report: Mrs. Rodrigues reported on the computer system s progress to the board. 4. ICERS 1221 State Street El Centro Corporation: Board of Directors Meeting, January 16, 2014: Mr. Prince stated that an annual dividend to ICERS, in the amount of $35,000, was approved by the ICERS Corp, Board of Directors at its meeting, January 16, State Association of County Retirement Systems (SACRS) 2014 Spring Conference, May 13-16, 2014: Mr. Prince reviewed the announcement received for the upcoming conference. 6. SACRS Board of Directors Elections Memorandum: Mr. Prince reviewed the SACRS memorandum with the board. 7. Ethics Training per Government Code Section 53235:

6 February 19, 2014 AMENDED BRIEF MINUTES PAGE 6 B. Board Members: C. County Counsel: 14. BUDGET: Mr. Prince reminded the board members of their two year certification requirement. Mr. Prince also stated that he would provide the board with a report reflecting individual training hours completed at the regularly scheduled meeting in March. CONSENT AGENDA Approval of the following Budget claims for the fiscal years, to include Board Members in attendance at the 02/19/2014 meeting, an Administrative Budget Expense Summary, and a Treasurer s Cash Account Summary per Govt. Code & 31521: A. Administrative Budget B. Treasurer s Cash 15. Administrative Agenda: A. Enrollment of New Members to ICERS (21): B. Terminations (6): C. Service Retirement: 1. Rebecca Escobar Effective Date: 12/27/ Betty Washington Effective Date: 12/27/ Aurora Castillo Social Services Effective Date: 12/27/ Gloria Rivera

7 February 19, 2014 AMENDED BRIEF MINUTES PAGE 7 Social Services Effective Date: 12/27/ Ernesto Cazares Ag. Commissioner Effective Date: 12/13/ Juan Velarde Effective Date: 01/10/ David Hauser Public Works Effective Date: 12/21/ Isabel Ortega Social Services Effective Date: 12/06/2013 D. Final Payment of Survivor Service Retirement Allowance per Govt. Code Section : Blanche Stewart Deceased: 12/30/2013 E. Final Payment of Non-Service Connected Disability Retirement Allowance Per Govt. Code Section & Death Benefit: Donald Templeton Deceased: 01/17/2014 F. Deferred: Yvonne Esperanza Effective Date; 11/05/2013 G. Deferred/Intersystem: 1. Pamela Kennedy Public Health Effective Date: 09/20/ Hilda Duran Effective Date: 08/09/2013 H. Medical Leave Buyback:

8 February 19, 2014 AMENDED BRIEF MINUTES PAGE 8 Jessell Fenley County Executive Office I. Re-Deposit Buyback: Sandra Perez Social Services 16. Manager Report: A. Bradford & Marzec: Fixed Income Statement, December 31, 2013 B. Dimensional Fund Advisors: Account Summary, Quarter Ending December 31, 2013 C. TimesSquare Capital Management, LLC: Period Ending 12/31/2013 OTHER ITEMS 17. Previously Approved Seminars/Conferences (list available in Retirement office). ADJOURNMENT: Meeting was adjourned at 11:50 a.m. to March 19, 2014 at 8:30 a.m. NORMA K. JAUREGUI, Chairman ROBERT W. WILLIAMS, Secretary