DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) BRIEF MINUTES

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1 DAVID H. PRINCE Tel. (760) Retirement Administrator Fax (760) KATHLEEN L. KUBLER Clerk of the Board 1221 State Street El Centro, CA BRIEF MINUTES REGULAR MEETING OF THE IMPERIAL COUNTY BOARD OF RETIREMENT November 20, :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 Secretary, Board Member Geoffrey P. Holbrook at 8:30 a.m. A. Roll Call: MEMBERS PRESENT: VOGEL, LANG, HOLBROOK, WILLIAMS, TABAREZ, JR., McFETRIDGE, RHODES MEMBERS ABSENT: TERRAZAS, JAUREGUI MEMBERS ARRIVING AFTER ROLL CALL: JERNIGAN ALTERNATES PRESENT: BUMGART, JERNIGAN LEGAL REPRESENTATIVES: Rosario Gonzalez, Deputy County Counsel, Kendra Martinez, Deputy County Counsel, Eric Havens, Deputy County Counsel CLERK: Kathleen L. Kubler, Retirement Specialist STAFF: David H. Prince, Retirement Administrator, Kayleen Smith, Retirement Specialist B. Pledge of Allegiance: The Pledge of Allegiance was led by Secretary to the Board, Geoffrey P. 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

2 November 20, 2013 BRIEF MINUTES PAGE 2 C. Items to be pulled from the Consent Agenda: None D. Emergency Items to be added: None E. Approval of the Agenda: MOTION by Williams, Second by Lang and carried by the unanimous vote of members present, the Board approved the Agenda. F. Approval of the Consent Agenda: MOTION by Vogel, Second by Bumgart and carried by the 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.): ACTION CALENDAR 4. Approval of the Minutes of October 16, 2013, of the adjourned regularly scheduled meeting: MOTION by Bumgart, Second by Williams, the board approved the Minutes of the adjourned regularly scheduled meeting of October 16, 2013: 5. Approval of the Minutes of November 6, 2013, of the adjourned special meeting: MOTION by Lang, Second by Williams, the board approved the Minutes of the adjourned special meeting of November 6, ALTERNATE RETIREE BOARD MEMBER JERNIGAN ARRIVED AT 8:45 A.M. 6. Annual Investment Manager Performance Presentation: Dimensional Fund Advisors: Ted Simpson, CFA, Vice President, and Ted Randall, Portfolio Manager and Vice President: A. Performance Presentation Report as of September 30, 2013: Mr. Simpson briefed the board with a review of the firm s global investment experience and philosophy, and its structured exposure worldwide. Mr. Randall discussed the account s investment returns, performance and portfolio characteristics. B. Dimensional Fund Advisors: Account Summary for Quarter Ending September 30, The report was reviewed by the board.

3 November 20, 2013 BRIEF MINUTES PAGE 3 CHAIRMAN TABAREZ, JR. ARRIVED 9:00 A.M. 7. Investment Consultant Manager Quarterly Review: Ed Hoffman, CFA, Senior Investment Consultant, Wurts Associates: A. Manager Quarterly Review: Mr. Hoffman discussed the manager performance report, and the market environment s effects on the system portfolio. Mr. Hoffman also suggested that the retirement system consider approving a search by Wurts Associates, for the addition of an international growth manager to the portfolio. Mr. Hoffman was given direction by the board to present a written proposal for the search at the next quarterly meeting. Mr. Hoffman discussed The Clifton Group account and was given direction by the board to contact The Clifton Group to discuss reducing their fees. B. Quarterly Asset Allocation Review: Mr. Hoffman discussed the current asset mix with the board who directed him to present a 10 year market outlook for the portfolio at the next scheduled presentation. BREAK AT 10:00 A.M. RECONVENED AT 10:10 A.M. 8. Action/Discussion: Changes to Government Code Section (a): Rounding of Public Employees Pension Reform Act (PEPRA) Tier 3 members contribution rates Mr. Prince discussed the options and recommendation of the system Actuary, The Segal Group. MOTION by Mr. Holbrook, Second by McFetridge and carries by a unanimous vote of members present, the board voted to adopt the government code section that divides the normal cost of the contribution rate equally between the employer and the employee. DISCUSSION CALENDAR 9. Reports/Correspondence/Announcements: A. Retirement Administrator: 1. Market Value Graph of the Retirement System s Assets for October 2013: Mr. Prince reviewed the assets activity for the month with the board.

4 November 20, 2013 BRIEF MINUTES PAGE 4 2. Book vs. Market Graph compares the Market Value of the system s assets to the Book Value of Assets for October 2013: Mr. Prince discussed the activity and the value of system assets with the board. 3. Pension Administration Computer System (PAS) Status Report: Mr. Prince discussed a new format for the status report, which will emphasize pending steps to completion, rather than up to date status. 4. Public Pension Consultants: 2013 Legislation: Mr. Prince discussed the chaptered legislation. 5. Annual Report on Manager Fees, Consultant Fees, and Income: Mr. Prince discussed the report with the board. 6. State Association of County Retirement Systems (SACRS) Fall Conference, November 12-15, 2013, Indian Wells, CA: B. Board Members: Mr. Prince commented on the topics discussed at the conference and reported that the venue was well-suited for the conference. State Association of County Retirement Systems (SACRS) Fall Conference, November 12-15, 2013, Indian Wells, CA: Board Members Williams, Lange, Tabarez, Jr., Vogel, Rhodes, and Bumgart spoke individually about their positive experience participating in the conference sessions and networking with other attendees. C. County Counsel: 1. Opinion Regarding Potential future Conflict with Firm Chosen for Actuarial Audit: Mrs. Gonzalez reported that there would be no official conflict if the qualified firm that is selected for the actuarial audit chooses to apply and possibly obtain the contract for actuarial services to the retirement system.

5 November 20, 2013 BRIEF MINUTES PAGE 5 2. Opinion Regarding Donation to Organization from ICERS Pension Fund: Mrs. Gonzalez reported that the provision of the state s retirement law Section , which governs the retirement system with regards to pension funds obtained through member contributions and investment earnings, specifically limits expenditures to designated administrative costs, investments, and pension benefits to active and retired members of the system. Therefore, donations to organizations, such as the Imperial County Association of Retired Employees (ICARE), are not advised. Mr. Manuel Quintero, retiree of Imperial County and ICARE member, voiced his disagreement with the opinion. 3. State Association of County Retirement Systems (SACRS) Fall Conference, November 12-15, 2013, Indian Wells, CA: 10. Convene to Closed Session: Mr. Havens expressed his appreciation for the opportunity to attend the conference, and stated that he looks forward to more involvement with retirement issues in the future. Mr. Havens also highlighted legal issues and proposed legislation, which were discussed at the conference such as disability retirement benefits, government reporting standards, and pension forfeiture. CLOSED SESSION Conference with Legal Counsel Existing Litigation (Government Code (a).) disability retirement applications relating to the following: (1 attachment) Linda Bruce OPEN SESSION 11. Announcement of Closed Session Action: Kayleen Smith, Disability Specialist, announced the following: The board discussed, but took no action regarding the Service-connected Disability Application of Linda Bruce.

6 November 20, 2013 BRIEF MINUTES PAGE BUDGET: CONSENT AGENDA Approval of the following Budget claims for the fiscal years, to include Board Members in attendance at the 11/20/13 meeting, an Administrative Budget Expense Summary, and a Treasurer s Cash Account Summary per Govt. Code & 31521: A. Administrative Budget (1 attachment) B. Treasurer s Cash (1 attachment) 13. Administrative Agenda: A. Enrollment of New Members to ICERS (15): B. Terminations (7): C. Service Retirement: 1. Sandra Moreno Safety Member Department: Sheriff Effective Date: 12/27/ Rosa Pitones General Member Department: Social Services Effective Date: 09/20/2013 D. Final Payment of Survivor Service Connected Disability Retirement Allowance Per Govt. Code Section : 14. Manager Reports: Lee Nichols General Member Deceased: 10/29/2013 TimesSquare Capital Management, LLC: Third Quarter Performance Report. OTHER ITEMS 15. Previously Approved Seminars/Conferences (list available in Retirement office). ADJOURNMENT: Meeting was adjourned at 11:00 a.m. to December 18, 2013 at 8:30 a.m.